1.This Act may be cited as 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. 1100. Federal
Reserve Board authority that of agent acting on behalf of Council.
Sec. 1101. Council
and Board authority to obtain information.
Sec. 1102. Council
prudential regulation recommendations to Federal financial regulatory agencies;
agency authority.
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. Additional
related amendments.
Sec. 1111. Corporation may receive warrants when paying or
risking taxpayer funds.
Sec. 1112. Examinations and enforcement actions for insurance
and resolutions purposes.
Sec. 1113. Study of
the effects of size and complexity of financial institutions on capital market
efficiency and economic growth.
Sec. 1114. Exercise
of Federal Reserve authority.
Sec. 1115. Stress
tests.
Sec. 1116. Contingent
Capital.
Sec. 1117. Restriction on proprietary trading by designated
financial holding companies.
Sec. 1118. Rule of
construction.
Sec. 1119. Antitrust
savings clause.
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.
Sec. 1257. Effective
date.
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.
Sec. 1316. Mutual
national banks and Federal mutual bank holding companies
authorized.
Sec. 1317.
Nationwide Deposit Cap for Interstate Acquisitions.
Sec. 1318. De novo
branching into states.
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; Purpose.
Sec. 1602. Definitions.
Sec. 1603. Systemic
risk determination.
Sec. 1604. Dissolution; 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
Dissolution.
Sec. 1612. Miscellaneous provisions.
Sec. 1613. Amendment
to Federal Deposit Insurance Act.
Sec. 1614. Application of executive compensation
limitations.
Sec. 1615. Study on
the effect of safe harbor provisions in insolvency cases.
Sec. 1616. Treasury
study.
Sec. 1617. Priority
of claims in federal deposit insurance act.
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.
Sec. 1802. Federal
Housing Finance Agency advisory role in FIEC.
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.
Sec. 1952. Reducing
TARP funds to offset costs.
Subtitle
L—Securities holding companies
Sec. 1961. Securities
holding companies.
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—Derivative
Markets Transparency and Accountability Act
Sec. 3001. Short
title.
Sec. 3002. Review of
regulatory authority.
Sec. 3003. International harmonization.
Sec. 3004. Prohibition against government
assistance.
Sec. 3005. Studies.
Sec. 3006. Recommendations for changes to insolvency
laws.
Sec. 3007. Abusive
swaps.
Sec. 3008. Authority
to prohibit participation in swap activities.
Sec. 3009. Memorandum.
Subtitle
A—Regulation of Swap Markets
Sec. 3101. Definitions.
Sec. 3102. Jurisdiction.
Sec. 3103. Clearing
and execution transparency.
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. Conflicts
of interest.
Sec. 3109. Swap
execution facilities.
Sec. 3110. Derivatives transaction execution facilities and
exempt boards of trade.
Sec. 3111. Designated
contract markets.
Sec. 3112. Margin.
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. FDICIA
amendments.
Sec. 3118. Enforcement authority.
Sec. 3119. Enforcement.
Sec. 3120. Retail
commodity transactions.
Sec. 3121. Large swap
trader reporting.
Sec. 3122. Segregation of assets held as collateral in swap
transactions.
Sec. 3123. Other
authority.
Sec. 3124. Antitrust.
Sec. 3125. Review of
prior actions.
Sec. 3126. Expedited
process.
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. Reporting
and recordkeeping.
Sec. 3206. State
gaming and bucket shop laws.
Sec. 3207. Amendments
to the Securities Act of 1933; treatment of security-based swaps.
Sec. 3208. Other
authority.
Sec. 3209. Jurisdiction.
Sec. 3210. Effective
date.
Subtitle C—Improved
financial and commodity markets oversight and accountability
Sec. 3301. Elevation
of certain Inspectors General to appointment pursuant to section 3 of the
Inspector General Act of 1978.
Sec. 3302. Continuation of provisions relating to
personnel.
Sec. 3303. Corrective
responses by heads of certain establishments to deficiencies identified by
Inspectors General.
Sec. 3304. Effective
date; transition rule.
Sec. 3305. Authority
of the Commodity Futures Trading Commission to define commercial
risk
, operating risk
, and balance sheet
risk
.
Sec. 3306. Conflicts
of interest in clearing organizations.
Sec. 3307. Definitions of major swap participant and major
security-based swap participant.
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. Establishment and composition of the
commission.
Sec. 4104. Consumer
Financial Protection Oversight Board.
Sec. 4105. Executive
and administrative powers.
Sec. 4106. Administration.
Sec. 4107. Consumer
Advisory Board.
Sec. 4108. Coordination.
Sec. 4109. Reports to
the Congress.
Sec. 4110. GAO small
business studies.
Sec. 4111. Funding;
fees and assessments; penalties and fines.
Sec. 4112. Amendments
relating to other administrative provisions.
Sec. 4113. Oversight
by GAO.
Sec. 4114. 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.
Sec. 4313. Overdraft
protection notice requirements.
Sec. 4314. Review,
report, and program with respect to exchange facilitators.
Sec. 4315. Regulation
of person-to-person lending.
Sec. 4316. Treatment
of reverse mortgages.
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. No private
right of action.
Sec. 4509. 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.
Sec. 4704. Reporting
of mortgage data by State.
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 Abuse and Prevention Act.
Sec. 4816. Membership
in Financial Literacy and Education Commission.
Sec. 4817. Effective
date.
Sec. 4818. Amendments
to Truth in Lending Act.
Subtitle
I—Improvements to the Federal Trade Commission Act
Sec. 4901. Amendments
to the Federal Trade Commission Act.
Subtitle
J—Miscellaneous
Sec. 4951. Requirements for State-licensed loan
originators.
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 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 and rulemaking 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 adviser 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 information.
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.
Sec. 7421. Notice to
missing security holders.
Sec. 7422. Short sale
reforms.
Sec. 7423. Streamlining of SEC filing procedures.
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.
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 misled 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.
Sec. 8005. Sense of
Congress regarding simplified mortgage contract summaries.
Title VII—Mortgage
Reform and Anti-Predatory Lending Act
Sec. 9000. Short
title; designation as enumerated consumer law.
Subtitle
A—Residential Mortgage Loan Origination Standards
Sec. 9001. Definitions.
Sec. 9002. Residential mortgage loan origination.
Sec. 9003. Prohibition on steering incentives.
Sec. 9004. Liability.
Sec. 9005. Regulations.
Sec. 9006. Study of
shared appreciation mortgages.
Subtitle B—Minimum
Standards For Mortgages
Sec. 9101. Ability to
repay.
Sec. 9102. Net
tangible benefit for refinancing of residential mortgage loans.
Sec. 9103. Safe
harbor and rebuttable presumption.
Sec. 9104. Liability.
Sec. 9105. Defense to
foreclosure.
Sec. 9106. Additional
standards and requirements.
Sec. 9107. Rule of
construction.
Sec. 9108. Effect on
State laws.
Sec. 9109. Regulations.
Sec. 9110. Amendments
to civil liability provisions.
Sec. 9111. Lender
rights in the context of borrower deception.
Sec. 9112. Six-month
notice required before reset of hybrid adjustable rate mortgages.
Sec. 9113. Required
disclosures.
Sec. 9114. Disclosures required in monthly statements for
residential mortgage loans.
Sec. 9115. Legal
assistance for foreclosure-related issues.
Sec. 9116. Effective
date.
Sec. 9117. Report by
the GAO.
Sec. 9118. State
Attorney General enforcement authority.
Subtitle C—High-Cost
Mortgages
Sec. 9201. Definitions relating to high-cost
mortgages.
Sec. 9202. Amendments
to existing requirements for certain mortgages.
Sec. 9203. Additional
requirements for certain mortgages.
Sec. 9204. Regulations.
Sec. 9205. Effective
date.
Subtitle D—Office of
Housing Counseling
Sec. 9301. Short
title.
Sec. 9302. Establishment of Office of Housing
Counseling.
Sec. 9303. Counseling
procedures.
Sec. 9304. Grants for
housing counseling assistance.
Sec. 9305. Requirements to use HUD-certified counselors under
HUD programs.
Sec. 9306. Study of
defaults and foreclosures.
Sec. 9307. Default
and foreclosure database.
Sec. 9308. Definitions for counseling-related
programs.
Sec. 9309. Accountability and transparency for grant
recipients.
Sec. 9310. Updating
and simplification of mortgage information booklet.
Sec. 9311. Home
inspection counseling.
Sec. 9312. Warnings
to homeowners of foreclosure rescue scams.
Subtitle E—Mortgage
Servicing
Sec. 9401. Escrow and
impound accounts relating to certain consumer credit transactions.
Sec. 9402. Disclosure
notice required for consumers who waive escrow services.
Sec. 9403. Real
Estate Settlement Procedures Act of 1974 amendments.
Sec. 9404. Truth in
Lending Act amendments.
Sec. 9405. Escrows
included in repayment analysis.
Subtitle F—Appraisal
Activities
Sec. 9501. Property
appraisal requirements.
Sec. 9502. Unfair and
deceptive practices and acts relating to certain consumer credit
transactions.
Sec. 9503. Amendments
relating to Appraisal Subcommittee of FIEC, Appraiser Independence Monitoring,
Approved Appraiser Education, Appraisal Management Companies, Appraiser
Complaint Hotline, Automated Valuation Models, and Broker Price
Opinions.
Sec. 9504. Study
required on improvements in appraisal process and compliance
programs.
Sec. 9505. Equal
Credit Opportunity Act amendment.
Sec. 9506. Real
Estate Settlement Procedures Act of 1974 amendment relating to certain
appraisal fees.
Subtitle G—Sense of
Congress regarding the importance of government sponsored enterprises
reform
Sec. 9601. Sense of
Congress regarding the importance of Government-sponsored enterprises reform to
enhance the protection, limitation, and regulation of the terms of residential
mortgage credit.
Subtitle H—Reports
and Data Collection
Sec. 9701. GAO study
report on government efforts to combat mortgage foreclosure rescue scams and
loan modification fraud.
Sec. 9702. Reporting
of mortgage data by State.
Subtitle
I—Multifamily mortgage resolution
Sec. 9801. Multifamily mortgage resolution program.
Subtitle J—Study of
effect of drywall presence on foreclosures
Sec. 9901. Study of
effect of drywall presence on foreclosures.
Subtitle K—Home
Affordable Modification Program
Sec. 9911. Home
Affordable Modification Program guidelines.
Subtitle L—Making
Home Affordable Program
Sec. 9921. Public
availability of information.
Title VIII—Foreclosure
Avoidance and Affordable Housing
Sec. 10001. Emergency
mortgage relief.
Sec. 10002. Additional assistance for Neighborhood
Stabilization Program.
Title IX—Nonadmitted
and Reinsurance Reform Act
Sec. 10051. Short
title.
Sec. 10052. Effective
date.
Subtitle
A—Nonadmitted Insurance
Sec. 10101. Reporting, payment, and allocation of premium
taxes.
Sec. 10102. Regulation of nonadmitted insurance by insured’s
home state.
Sec. 10103. Participation in national producer
database.
Sec. 10104. Uniform
standards for surplus lines eligibility.
Sec. 10105. Streamlined application for commercial
purchasers.
Sec. 10106. GAO study
of nonadmitted insurance market.
Sec. 10107. Definitions.
Subtitle
B—Reinsurance
Sec. 10201. Regulation of credit for reinsurance and
reinsurance agreements.
Sec. 10202. Regulation of reinsurer solvency.
Sec. 10203. Definitions.
Subtitle C—Rule of
Construction
Sec. 10301. Rule of
construction.
Sec. 10302. Severability.
Title
X—Interest-bearing transaction accounts authorized
Sec. 11001. Interest-bearing transaction accounts
authorized.
<enum>I</enum><header display-inline="yes-display-inline">Financial stability improvement
Act</header>
<section commented="no" display-inline="no-display-inline" id="H0644F4EE2A5944FDB0C5C37F955773DA" section-type="subsequent-section"><enum>1000.</enum><header display-inline="yes-display-inline">Short title; definitions</header>
<subsection commented="no" display-inline="no-display-inline" id="HBEE11188F7F74312ACF21A1CA3F5F00B"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H555FBAB234D440D78FFBB71F57DA4697"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this title, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD540B156BDF64B03BA27C7D6C3D41A4F"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>Board</quote> means the
Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H5E627798C3B04C40805A2A3AD274C669"><enum>(A)</enum><text display-inline="yes-display-inline">that is—</text>
<clause commented="no" display-inline="no-display-inline" id="HC6FE2EBFAA3D4698A417F09C78C15408"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" 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 (hereafter in this title referred to as a <quote>foreign
financial parent</quote>) after through—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7211F468732549229BFD32F896C91F2B"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6BDF91EB5B35496A8B5199FBC3E0BB18"><enum>(II)</enum><text display-inline="yes-display-inline">a United States affiliate or other United
States operating entity;</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA8F7079BBAA34776926F6A090E9E615A"><enum>(B)</enum><text display-inline="yes-display-inline">that is, in whole or in part, directly or
indirectly, engaged in financial activities; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0A7F64CB11C24613B2C18142491DB2AE"><enum>(C)</enum><text display-inline="yes-display-inline">that is not a Farm Credit System
institution chartered under and subject to the provisions of the Farm Credit
Act of 1971, as amended (12 U.S.C. 2001 et seq.).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEEA9D3C9822A48448884291AFDC6607D"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFBFAD15863FD4FD3991C3D433B3180F4"><enum>(A)</enum><text display-inline="yes-display-inline">a financial company that has been subjected
to stricter prudential standards under subtitle B; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDE9209410205437AB5F3FE1ACE0ADC55"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H03E477ABCD074689894D0E154CF09973"><enum>(6)</enum><text display-inline="yes-display-inline">The term <quote>primary financial
regulatory agency</quote> means the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB8DA0DB3203449C3AE80936EDB4EC074"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC685D3A01E71408DAC2904435C77BA1B"><enum>(B)</enum><text display-inline="yes-display-inline">The Board, with respect to—</text>
<clause commented="no" display-inline="no-display-inline" id="HBD33AB1913844807AD63C6DAC2B83DD8"><enum>(i)</enum><text display-inline="yes-display-inline">any State member bank;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H383C8EE20A0645A88E205E2DA9B2B7BB"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBF046733968248B9923D99E5E47214A4"><enum>(iv)</enum><text display-inline="yes-display-inline">after the date on which the functions of
the Office of Thrift Supervision are transferred under subtitle C, any savings
and loan holding company (as defined in section 10(a)(1)(D) of the Home Owners’
Loan Act) and any subsidiary (as such term is defined in the Bank Holding
Company Act of 1956) 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 commented="no" display-inline="no-display-inline" id="HD8C4BE7F83454AFD83D71448E4999672"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE5B1D0362584C78AE5298D745E328AD"><enum>(vi)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67C6A0356257479E925F910C14E16C6F"><enum>(C)</enum><text display-inline="yes-display-inline">The Federal Deposit Insurance Corporation,
with respect to any 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 commented="no" display-inline="no-display-inline" id="H2EFB378603704680955053A2D320D020"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B36CF966DBA419DA7B6EC6A51913D4E"><enum>(E)</enum><text display-inline="yes-display-inline">The Securities and Exchange Commission,
with respect to—</text>
<clause commented="no" display-inline="no-display-inline" id="H767C6E7D47844246BC9C03F56123FBB8"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA6D131D687FA45C88E1F6A1B86D1F30B"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA191FCC0899A4EE8B493B52DBD5CF192"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD7A2C2C2A29C45938AF3D6A3741A4150"><enum>(v)</enum><text display-inline="yes-display-inline">a securities-based swap execution facility
that is registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA0E9F6988E8A4868B898096FB3F78997"><enum>(vi)</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 commented="no" display-inline="no-display-inline" id="H197671DEC64D44AA8BA19CBDE52481C1"><enum>(vii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDCA3E671F13949EC867C699C1444B711"><enum>(viii)</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 commented="no" display-inline="no-display-inline" id="H1F028E77FA674EA3A9AEE522EBDE1CC5"><enum>(ix)</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 commented="no" display-inline="no-display-inline" id="H6955D9B7280C4875A7662D8630DDB24B"><enum>(F)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission,
with respect to—</text>
<clause commented="no" display-inline="no-display-inline" id="HAB88CA6C6C264792BF594DB0EFB959D0"><enum>(i)</enum><text display-inline="yes-display-inline">any futures commission merchant, any
commodity trading adviser, any retail foreign exchange dealer, 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 commented="no" display-inline="no-display-inline" id="HFA0BAB0AFC7D4CCF8278A4B514F4CDF8"><enum>(ii)</enum><text display-inline="yes-display-inline">any derivatives clearing organization,
designated contract market, or swap execution facility (as defined in the
Commodity Exchange Act).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1940E6B2F33B4292AD80C4443F25000F"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3D31D415E023499880FFFB91415885CD"><enum>(H)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA1F15306F594E2893FA34206834FA69"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66974C80321A45D39D999AAC25D9966A"><enum>(7)</enum><header display-inline="yes-display-inline">Terms defined in other laws</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H94AFEAEA81B5493FAFAFB1C2642779EC"><enum>(A)</enum><header display-inline="yes-display-inline">Affiliate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H154125F252B34BDD94081EAE92F8D2B0"><enum>(B)</enum><header display-inline="yes-display-inline">State member bank, state nonmember
bank</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6DFA1B9F51044314B74291B39C9A8C72" section-type="subsequent-section"><enum>1000A.</enum><header display-inline="yes-display-inline">Restrictions on the Federal Reserve System
pending audit report</header>
<subsection commented="no" display-inline="no-display-inline" id="H9215014F24F14D1888C61C37ADE8E6F7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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, but no later than 2 years,
after the date of the enactment of the Financial Stability Improvement Act of
2009.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAF462B911DAD44B2B56083F0AF45F1F4"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB1D58BE59FBA4014A8C5FDDCBF0C0835"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6300A8E335854563ADFE679769EDDDB1"><enum>(2)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">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 commented="no" id="HC8376F7C280C4C47AAAE83FB03670017" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">The Financial Services Oversight
Council</header>
<section commented="no" display-inline="no-display-inline" id="H48F0A67802C34493BAED8F18F8614893" section-type="subsequent-section"><enum>1001.</enum><header display-inline="yes-display-inline">Financial Services Oversight Council
established</header>
<subsection commented="no" display-inline="no-display-inline" id="H4A986D7618D64C86B6E9F6F2F90F18D8"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Immediately upon enactment of this title,
there is established a Financial Services Oversight Council.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD739D0EB800A451EBD80CB5E742F1B21"><enum>(b)</enum><header display-inline="yes-display-inline">Membership</header><text display-inline="yes-display-inline">The Council shall consist of the
following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6CE61E067BBD46458ED96A2098ADE785"><enum>(1)</enum><header display-inline="yes-display-inline">Voting
members</header><text display-inline="yes-display-inline">Voting members, who
shall each have one vote on the Council, as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA04956B74AA4B61ADBC6FEB8A2E75F1"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary of the Treasury, who shall
serve as the Chairman of the Council.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9DA5A6D9A18948FA976720480D27B003"><enum>(B)</enum><text display-inline="yes-display-inline">The Chairman of the Board of Governors of
the Federal Reserve System.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC520C81D5FFD4579A03E829219D1B4A9"><enum>(C)</enum><text display-inline="yes-display-inline">The Comptroller of the Currency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD360D4A37174A54B6DF04B237C506F2"><enum>(D)</enum><text display-inline="yes-display-inline">The Director of the Office of Thrift
Supervision, until the functions of the Director of the Office of Thrift
Supervision are transferred pursuant to subtitle C.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0165C85B87FB4E8783623730A52AFED5"><enum>(E)</enum><text display-inline="yes-display-inline">The Chairman of the Securities and Exchange
Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0ECAE39F13004AA79285F397C0BBD129"><enum>(F)</enum><text display-inline="yes-display-inline">The Chairman of the Commodity Futures
Trading Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3C8853BF49DD41C893513C593E187168"><enum>(G)</enum><text display-inline="yes-display-inline">The Chairperson of the Federal Deposit
Insurance Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H019BAF68DC854FB5810B139AC55A5694"><enum>(H)</enum><text display-inline="yes-display-inline">The Director of the Federal Housing Finance
Agency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1FD6EE1DAF564F2194DC64187382259F"><enum>(I)</enum><text display-inline="yes-display-inline">The Chairman of the National Credit Union
Administration.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA2AD0487036843159AF1D47DD85D3390"><enum>(J)</enum><text display-inline="yes-display-inline">The head of the Consumer Financial
Protection Agency.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H89D62D20FDFC412DBB56CA6491CAB8D4"><enum>(2)</enum><header display-inline="yes-display-inline">Nonvoting members</header><text display-inline="yes-display-inline">Nonvoting members, who shall serve in an
advisory capacity and shall not be excluded from any of the Council’s
proceedings, meetings, discussions, and deliberations:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3F10B6FA47FD40C2B04B7AC4B7F85236"><enum>(A)</enum><text display-inline="yes-display-inline">The Director of the Federal Insurance
Office.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3F340799852D4698ACED439713DD631A"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H07BD54D6AE984A75AF758CAA1DDC9848"><enum>(C)</enum><text display-inline="yes-display-inline">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><subparagraph commented="no" display-inline="no-display-inline" id="H7892A72CF0EC4FCAB141E39581BF4110"><enum>(D)</enum><text display-inline="yes-display-inline">A State securities commissioner (or an
officer performing like functions), to be designated by a selection process
determined by such State securities commissioners, provided that the term for
which a State securities commissioner may serve shall last no more than the
2-year period beginning on the date that the commissioner is selected.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2A279A5266D846BA9B4410376383AD0B"><enum>(c)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The Council shall have the following
duties:</text>
<paragraph commented="no" display-inline="no-display-inline" 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, competitiveness, and stability of the United States
financial markets.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H429A2737F72E44F59019EA59FC3A8B2E"><enum>(2)</enum><text display-inline="yes-display-inline">To monitor the financial services
marketplace to identify potential threats to the stability of the United States
financial system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE2848AB280C546488169785CBDC289AF"><enum>(4)</enum><text display-inline="yes-display-inline">To develop strategies (and conduct
exercises in furtherance of those strategies) to prepare for potential threats
identified under paragraphs (2) and (3). In doing so, the Council shall
collaborate with participants in the financial sector, financial sector
coordinating councils, and any other parties the Council determines to be
appropriate.</text>
</paragraph><paragraph commented="no" 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 commented="no" display-inline="no-display-inline" id="HB4C55B43CC2E4EB4A3646D8CB11B6EBE"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H0558834EB35C4415BB861B2CA3039E92"><enum>(8)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H001FC5A57FC4429281F326566CF3D239"><enum>(9)</enum><text display-inline="yes-display-inline">To provide a forum for discussion and
analysis of emerging market developments and financial regulatory issues among
its members.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2BD7B6C79C364160A3DE8DC822092B91"><enum>(10)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0615C20DA93446CDB74646243CE4ECFF" section-type="subsequent-section"><enum>1002.</enum><header display-inline="yes-display-inline">Resolution of disputes among Federal
financial regulatory agencies</header>
<subsection commented="no" display-inline="no-display-inline" id="H40F4E8AA49A3430B9F7151358147FB08"><enum>(a)</enum><header display-inline="yes-display-inline">Request for dispute
resolution</header><text display-inline="yes-display-inline">The Council shall
resolve a dispute among 2 or more Federal financial regulatory agencies
if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB876F8F0837C47C78E48C7C8B4D8108E"><enum>(1)</enum><text display-inline="yes-display-inline">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 a dispute mechanism
specifically has been provided under section 4204 or title III);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7CDCEF1BC00544269CAF1A5D30A65295"><enum>(2)</enum><text display-inline="yes-display-inline">the disputing agencies cannot, after a
demonstrated good faith effort, resolve the dispute among themselves;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8482C8DE656146E4BCB86BB4ED745D3E"><enum>(3)</enum><text display-inline="yes-display-inline">any of the Federal financial regulatory
agencies involved in the dispute—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H21C66ED038EB43D9BD4E781DBC93A37A"><enum>(A)</enum><text display-inline="yes-display-inline">provides all other disputants prior notice
of its intent to request dispute resolution by the Council; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCCEF9C4E1AB844C2961C8FF395D0F935"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF7E3137E37C4ED1B9714F4C546BAEF9"><enum>(b)</enum><header display-inline="yes-display-inline">Council decision</header><text display-inline="yes-display-inline">The Council shall decide the
dispute—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HACEF9414D788468081B3FD2723F3BFDB"><enum>(1)</enum><text display-inline="yes-display-inline">within a reasonable time after receiving
the dispute resolution request;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1EC03B4E89694F18B36622909C62F9C6"><enum>(2)</enum><text display-inline="yes-display-inline">after consideration of relevant information
provided by each party to the dispute; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD295BF727F7449EC96B8AA1F9CA65DB1"><enum>(3)</enum><text display-inline="yes-display-inline">by agreeing with 1 of the disputants
regarding the entirety of the matter or by determining a compromise
position.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H066DEB21D49D416F92448566712C56E2"><enum>(c)</enum><header display-inline="yes-display-inline">Form and binding effect</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFFB59082D96E47E5836D8F47AEDF3975" section-type="subsequent-section"><enum>1003.</enum><header display-inline="yes-display-inline">Technical and professional advisory
committees</header><text display-inline="no-display-inline">The Council is
authorized to appoint—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA5A059D170C24B03BE18CF4E9F4D316C"><enum>(1)</enum><text display-inline="yes-display-inline">subsidiary working groups composed of
Council members and their staff, Council staff, or a combination; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC2706603C07A46A6991174602CBF17ED"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50F764C00DE74CB2989A985734900D61" section-type="subsequent-section"><enum>1004.</enum><header display-inline="yes-display-inline">Financial Services Oversight Council
meetings and council governance</header>
<subsection commented="no" display-inline="no-display-inline" id="H3414CF8D5A7A4CBE8DB6D0C151F976D2"><enum>(a)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">The Council shall meet as frequently as the
Chairman deems necessary, but not less than quarterly.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H68690532830241B69FED99026B0E3E58"><enum>(b)</enum><header display-inline="yes-display-inline">Voting</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDA35BD5021C24C83A6446A837EB94E0F" section-type="subsequent-section"><enum>1005.</enum><header display-inline="yes-display-inline">Council staff and funding</header>
<subsection commented="no" display-inline="no-display-inline" id="H73C626C28DDF4446BEB58C613368383C"><enum>(a)</enum><header display-inline="yes-display-inline">Voting members of the Council</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall and all
other voting members of the Council may, with the approval of the
Council—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H25C51B8B29824AA29216D2C093BE9DCF"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE1DCE5C9C394D52867AD2B4AD304BE2"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC119752183E4C60944F4AA452FC53C8"><enum>(b)</enum><header display-inline="yes-display-inline">Other departments and
agencies</header><text display-inline="yes-display-inline">In addition to the
assistance prescribed in subsection (a), departments and agencies of the United
States may, with the approval of the Council—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2B728FD1973C469F8BF579A8B638D84F"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1F70BA9869784FA58C20A73E29918FCF"><enum>(2)</enum><text display-inline="yes-display-inline">provide such services, and facilities as
the other departments or agencies may determine advisable.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H93B81A521E254170B3B44FC773A55369"><enum>(c)</enum><header display-inline="yes-display-inline">Staff status; council funding</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4E426B8294764CB0B58F02D61327BBCB"><enum>(1)</enum><header display-inline="yes-display-inline">Status</header><text display-inline="yes-display-inline">Staff detailed to the Council by the
Secretary of the Treasury and other United States departments or agencies
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H060540A1D04548518D7D16E14606E0AD"><enum>(A)</enum><text display-inline="yes-display-inline">report to and be subject to oversight by
the Council during their assignment to the Council; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C2038E1D5DE4D7FBEC7D87AE1F64E6D"><enum>(B)</enum><text display-inline="yes-display-inline">be compensated by the department of agency
from which the staff was detailed.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA1EB8A54364F4E939E982CFE00BFAF5E"><enum>(2)</enum><header display-inline="yes-display-inline">Funding</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H58C2D5A8F2584888831E5C02E86D30BE" section-type="subsequent-section"><enum>1006.</enum><header display-inline="yes-display-inline">Reports to the Congress</header>
<subsection commented="no" display-inline="no-display-inline" id="H084C134EBEC042FE9DAF9321783908DD"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Semiannually the Council shall submit a
report to the Committee on Ways and Means, the Committee on Agriculture, and
the Committee on Financial Services of the House of Representatives and the
Committee on Finance, the Committee on Agriculture, and the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the Comptroller General
of the United States that—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE49C6BBC1F084CC4A6715DDCCDDCC4A3"><enum>(2)</enum><text display-inline="yes-display-inline">recommends actions that will improve
financial stability;</text>
</paragraph><paragraph commented="no" 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 commented="no" display-inline="no-display-inline" id="HEA9B1547CF904714981A53F81426AF77"><enum>(4)</enum><text display-inline="yes-display-inline">describes strategies 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
strategies;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43B330C902D84240BE281DBDB02A9EB4"><enum>(5)</enum><text display-inline="yes-display-inline">describes the nature and scope of any
company or activities identified under subtitle B and steps taken to address
them; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB5F7CFD30A244E8993C0E5E1B5999EF"><enum>(6)</enum><text display-inline="yes-display-inline">describes any dispute resolutions
undertaken under section 1002 and the result of such resolutions.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDD63EB5341334AE08F9562E4F6167DA1"><enum>(b)</enum><header display-inline="yes-display-inline">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 Ways and Means, the Committee on Agriculture, and the Committee on Financial
Services of the House of Representatives and the Committee on Finance, the
Committee on Agriculture, and the Committee on Banking, Housing, and Urban
Affairs of the Senate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBEE28DEAFECB4D2C8F98F06161759F33"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 Ways and
Means, the Committee on Agriculture, and the Committee on Financial Services of
the House of Representatives and the Committee on Finance, the Committee on
Agriculture, and the Committee on Banking, Housing, and Urban Affairs of the
Senate stating such belief; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 Ways and Means, the Committee on Agriculture, and
the Committee on Financial Services of the House of Representatives and the
Committee on Finance, the Committee on Agriculture, 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 commented="no" display-inline="no-display-inline" id="HBDA37BA8D70140D49BE8EE8D12C9C47A"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2610D7CB56DD480C9D1AC587E38AF628"><enum>(2)</enum><text display-inline="yes-display-inline">to discuss and answer questions concerning
such report.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6BE5823B20AD45028437C0AB13A66502"><enum>(e)</enum><header display-inline="yes-display-inline">Study of effects Consumer Financial
Protection Agency regulations and standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC91BEA7893324B0CAC5D480370A28379"><enum>(1)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">The Council shall
conduct a study of the effects that regulations and standards of the Consumer
Financial Protection Agency will have on all covered persons (as such term is
defined in section 4002(9)), including nondepository institution covered
persons. The Director of the Consumer Financial Protection Agency shall take
the findings of the study into account when issuing regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2009431A376F45D8B6D7B93A97756F19"><enum>(2)</enum><header display-inline="yes-display-inline">Value of nonbank products</header><text display-inline="yes-display-inline">The study shall include an evaluation and
assessment of the appropriateness of using <quote>APR</quote> as a true measure
of the value of all nonbank products.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA849E1B3D21C4FA1B5B0CC3DC6DA809B"><enum>(3)</enum><header display-inline="yes-display-inline">Submission</header><text display-inline="yes-display-inline">Not later than 240 days after the date of
the enactment of this Act, the Director of the Consumer Financial Protection
Agency shall submit the study to Congress and include any recommendations the
Director may have for changes in law and regulations to improve consumer
protections and maintain access to credit.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HCB2ED9C21282456297608687CD311517" section-type="subsequent-section"><enum>1007.</enum><header display-inline="yes-display-inline">Applicability of certain Federal
laws</header>
<subsection commented="no" display-inline="no-display-inline" id="H75416BF1E5E44DA0A99A411F030288DF"><enum>(a)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE444A5022CB048569CCD8CE1E8D86331"><enum>(b)</enum><text display-inline="yes-display-inline">The Council shall not be deemed an
<quote>agency</quote> for purposes of any State or Federal law.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2364311E5A9A430A9F6C37E55A305AA8" section-type="subsequent-section"><enum>1008.</enum><header display-inline="yes-display-inline">Oversight by GAO</header>
<subsection commented="no" display-inline="no-display-inline" id="H89B6FC9B23134F2780E386717A4A7EDE"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9531F31DD3234E2EA7038C9FF38E8BC1"><enum>(1)</enum><text display-inline="yes-display-inline">the Council; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC24C4D963BE64F429349CC5C20DEE6D3"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H396FA4382CFA4EE29CC1FEB7922916C1"><enum>(b)</enum><header display-inline="yes-display-inline">Access to information</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5C030B1724F74B3FBE3C85863C4926EE"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6D2049DDE4746A09C91295AFF3DFB33"><enum>(A)</enum><text display-inline="yes-display-inline">any records or other information under the
control of or used by the Council;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H59BDF8E965CD48DE98C879FE793DE08C"><enum>(B)</enum><text display-inline="yes-display-inline">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); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCEC671EAD4A742E4A41A9A525886FB62"><enum>(C)</enum><text display-inline="yes-display-inline">the officers, directors, employees,
financial advisors, staff, working groups, and agents and representatives of
the Council (as related to the agent’s or representative’s activities on behalf
of the Council) at such reasonable times as the Comptroller General may
request.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAFE4EFBC0D414A2F99867AEEFB318794"><enum>(2)</enum><header display-inline="yes-display-inline">Certain information specified</header><text display-inline="yes-display-inline">Access under paragraph (1) includes access
to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2337B37DC9B94CAAB2198B972D10DD35"><enum>(A)</enum><text display-inline="yes-display-inline">information provided to the Council by its
voting and nonvoting members under section 1101; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE72F0299D6EE455A9FDF03B22FA72762"><enum>(B)</enum><text display-inline="yes-display-inline">the identity of each financial holding
company subject to stricter standards.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE463079BD53A480693B49D686B6F2364"><enum>(3)</enum><header display-inline="yes-display-inline">Copies</header><text display-inline="yes-display-inline">Comptroller General may make and retain
copies of such books, accounts, and other records access to which is granted
under this provision as the Comptroller General considers appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H10C1CBAA42B7471B88B5A270BA3D7FAA"><enum>(c)</enum><header display-inline="yes-display-inline">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></section></subtitle><subtitle commented="no" id="HE187E1ECF2A84D3C8F0C085CF0834916" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Prudential regulation of companies and
activities for financial stability purposes </header>
<section commented="no" display-inline="no-display-inline" id="H09877B945E2E4F5BA9DDE3A716AC33A4" section-type="subsequent-section"><enum>1100.</enum><header display-inline="yes-display-inline">Federal Reserve Board authority that of
agent acting on behalf of Council</header><text display-inline="no-display-inline">For purposes of this subtitle, the Board of
Governors of the Federal Reserve System shall act in the capacity of agent for
the Council, acting on behalf of the Council.</text>
</section><section commented="no" display-inline="no-display-inline" id="H527B493B08E0497FB858DD44AA4B9EF8" section-type="subsequent-section"><enum>1101.</enum><header display-inline="yes-display-inline">Council and Board authority to obtain
information</header>
<subsection commented="no" display-inline="no-display-inline" id="HAF1A4728F2EC407D96CE101955ED6600"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1C25E263FBD542FD8126F42D356414FF"><enum>(1)</enum><text display-inline="yes-display-inline">to monitor the financial services
marketplace to identify potential threats to the stability of the United States
financial system;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2C9AB44D030431C98305B6DBEA3A1E8"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEEAAE27EF10D494281BD279969A812B2"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H21B43B682A0949058945BCF4C8792491"><enum>(b)</enum><header display-inline="yes-display-inline">Submission by council members</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC6EBAF5B5F15487F966FEBF06378E702"><enum>(c)</enum><header display-inline="yes-display-inline">Financial company data collection</header>
<paragraph commented="no" display-inline="no-display-inline" id="H843FDD9830EE40B5ADA34613890DD321"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF023575B52C8406CAF97D76DD9223DA4"><enum>(2)</enum><header display-inline="yes-display-inline">Mitigation of report burden</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HEC58502B14134F4F834AA06ACFCE35B4"><enum>(3)</enum><header display-inline="yes-display-inline">Mitigation requirements in case of foreign
financial parents</header><text display-inline="yes-display-inline">Before
requiring the submission of reports from a company that is a foreign financial
parent, the Council or the Board shall, to the extent appropriate, coordinate
with any appropriate foreign regulator of such company and any appropriate
multilateral organization and, whenever possible, rely on information already
being collected by such foreign regulator or multilateral organizational with
English translation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4896120E83D149B994C6462D25BDDA5E"><enum>(d)</enum><header display-inline="yes-display-inline">Consultation with agencies and
entities</header><text display-inline="yes-display-inline">The Council or the
Board, as appropriate, may consult with Federal and State agencies and other
entities (including the Federal Insurance Office) to carry out any of the
provisions of this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC632164C2BF452EBC589C3D1251075F"><enum>(e)</enum><header display-inline="yes-display-inline">Additional provisions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA6458B1E83FE4FF3A661759E5A97D230"><enum>(1)</enum><header display-inline="yes-display-inline">Data and Information Sharing</header><text display-inline="yes-display-inline">The Chairman of the Council, in
consultation with the other members of the Council, may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H00379B6F4EB142D8B2B32CDFB2452E29"><enum>(A)</enum><text display-inline="yes-display-inline">establish procedures to share data and
information collected by the Council under this section with the members of the
Council;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8C9D065D1ACB4651AB25E8A15773C4E0"><enum>(B)</enum><text display-inline="yes-display-inline">develop an electronic process for sharing
all information collected by the Council with the Chairman of the Board on a
real-time basis;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H15B3CE36D6974F50A61B083F81943353"><enum>(C)</enum><text display-inline="yes-display-inline">issue any regulations necessary to carry
out this subsection; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BCE16CD140C453CA57B161671DC0624"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H78AB7FC3A7644342AB650406D860D29E"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable Privileges Not
Waived</header><text display-inline="yes-display-inline">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 compelled to waive and 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 commented="no" display-inline="no-display-inline" id="HCEA8EB5E371F4439AD42D4D31BA6BBF2"><enum>(A)</enum><text display-inline="yes-display-inline">the Council;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FB0212E760A4109AA749B5666CAF368"><enum>(B)</enum><text display-inline="yes-display-inline">any Federal financial regulator or State
financial regulator, in any capacity; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H383F7E975A03497E9A3E8366CCB76A18"><enum>(C)</enum><text display-inline="yes-display-inline">any other agency of the Federal Government
(as defined in section 6 of title 18, United States Code).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27AF5DAE05D14410809F98BB0A78340F"><enum>(3)</enum><header display-inline="yes-display-inline">Disclosure Exemption</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41C6C1A5590A4FCF999E6D185E95EE75"><enum>(4)</enum><header display-inline="yes-display-inline">Consultation With Foreign
Governments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6A5ED4382E2F468898E8BB6ED067BE31"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H770169668AC442A5AE012FC3BDF8A88C" section-type="subsequent-section"><enum>1102.</enum><header display-inline="yes-display-inline">Council prudential regulation
recommendations to Federal financial regulatory agencies; agency
authority</header>
<subsection commented="no" display-inline="no-display-inline" id="H8EB659A4673243D7BEB376807013E202"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF2AAF4E3800F4A968432E497B648741E"><enum>(b)</enum><header display-inline="yes-display-inline">Agency authority to implement
standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H49BF490338834447B6043D50BB89BA1E"><enum>(1)</enum><text display-inline="yes-display-inline">A Federal financial regulatory agency
specifically may, in response to a Council recommendation under this section or
otherwise, 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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4FC74805EC59410194D2AD242967F2A7"><enum>(2)</enum><header display-inline="yes-display-inline">Applying standards to foreign financial
parents</header><text display-inline="yes-display-inline">In applying standards
under paragraph (1) to any foreign financial parent, or to any branch of,
subsidiary of, or other operating entity related to such foreign financial
parent that operates within the United States, the Federal financial regulatory
agency shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5B4AE9A8088D44A99616A79A7DC858D0"><enum>(A)</enum><text display-inline="yes-display-inline">give due regard to the principles of
national treatment and equality of competitive opportunity; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC32DC02686CE4B95AEE0E3E3325EA66C"><enum>(B)</enum><text display-inline="yes-display-inline">take into account the extent to which the
foreign financial parent is subject to comparable standards on a consolidated
basis in the home country of such foreign financial parent that are
administered by a comparable foreign supervisory authority.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5FBBE20A24E54719A8B541CB4A862759"><enum>(c)</enum><header display-inline="yes-display-inline">Agency notice to council</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D96F32CB789471790046CB1C2637911"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB28601A7A4804FBD88830A64EA8919FE"><enum>(2)</enum><text display-inline="yes-display-inline">the reason the Federal financial regulatory
agency has failed to respond to the Council’s request.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HE8F3DEA00F0E4592923CD3A30B2F25E6" section-type="subsequent-section"><enum>1103.</enum><header display-inline="yes-display-inline">Subjecting financial companies to stricter
prudential standards for financial stability purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="H642C972A6F344846B16341C3CD4D3347"><enum>(a)</enum><header display-inline="yes-display-inline">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, and, in the case of a
financial holding company subject to stricter standards that is an insurance
company, the Federal Insurance Office, subject a financial company to stricter
prudential standards under this subtitle if the Council determines that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8F7910066B5D4B9C8403064868425F1B"><enum>(1)</enum><text display-inline="yes-display-inline">material financial distress at the company
could pose a threat to financial stability or the economy; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H48FA1C25D5E34FBFB34A23EC4051129B"><enum>(b)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">In making a determination under subsection
(a), the Council shall consider the following criteria:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE5DFF52F264240EDAF7FFADA2D0AABB5"><enum>(1)</enum><text display-inline="yes-display-inline">The extent of the company’s
leverage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA17DBBE6785F4B3E878D25A82E1FB369"><enum>(2)</enum><text display-inline="yes-display-inline">The extent and nature of the company’s
off-balance sheet exposures.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3D91C2540C9B4C5D950676BD97FF695C"><enum>(3)</enum><text display-inline="yes-display-inline">The extent and nature of the company’s
transactions and relationships with other financial companies.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8878A6FA9FCB474A9FCF7ECFDF5A6CFD"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE35F55738B6543EAA6F066B9149F08A2"><enum>(5)</enum><text display-inline="yes-display-inline">The company’s importance as a source of
credit for low-income, minority, or underserved communities and the impact the
failure of such company would have on the availability of credit in such
communities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB39ED699663E4ABEA30705FD40EE7722"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3C28FD941004FA3AA646D68C8F7F7CA"><enum>(7)</enum><text display-inline="yes-display-inline">The nature, scope, and mix of the company’s
activities.</text>
</paragraph><paragraph commented="no" 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 or, in the case
of a foreign financial parent, the extent to which such foreign parent is
subject to prudential standards on a consolidated basis in the home country of
such financial parent that are administered and enforced by a comparable
foreign supervisory authority.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD4C20FF697494AE8ABDC9E24BFA13348"><enum>(9)</enum><text display-inline="yes-display-inline">The amount and nature of the company’s
financial assets.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2A04775EC478490CB9F3B7F5C18848B4"><enum>(10)</enum><text display-inline="yes-display-inline">The amount and nature of the company’s
liabilities, including the degree of reliance on short-term funding.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF3F3FAB5E434F479B37DCBCAAB97D92"><enum>(11)</enum><text display-inline="yes-display-inline">Any other factors that the Council deems
appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC14F82F215B84A1F921D5F33935A7F98"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41070A23C70742EF9D0D4426F04FAE31"><enum>(d)</enum><header display-inline="yes-display-inline">Periodic review and rescission of
findings</header>
<paragraph commented="no" display-inline="no-display-inline" id="H950FF051EE0947D79C4634AE700692CE"><enum>(1)</enum><header display-inline="yes-display-inline">Submission of assessment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC2DE746503C6473CA7A58DF992DBB5F9"><enum>(2)</enum><header display-inline="yes-display-inline">Review and rescission</header><text display-inline="yes-display-inline">The Council shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8DDC086D6F134931A6238D6697313EAD"><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 holding company subject to stricter
standards continues to merit stricter prudential standards; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF24063A2099E4D189EFFBE97847D9BD3"><enum>(e)</enum><header display-inline="yes-display-inline">Appeal</header>
<paragraph commented="no" display-inline="no-display-inline" id="H65016CAB65EE410EAD920405DDAFE88A"><enum>(1)</enum><header display-inline="yes-display-inline">Administrative</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDEE1306BC60F43398E75D5D20BE0D5CB"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1CB21028B5894E9C9F7F7125AE1477ED"><enum>(f)</enum><header display-inline="yes-display-inline">Effect of council decision</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6298342482A24233B3CA9A96B8B50648"><enum>(1)</enum><header display-inline="yes-display-inline">Application of federal laws</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H57B47282DECD4265A66AA9A2F368A12B"><enum>(A)</enum><header display-inline="yes-display-inline">Application of bank holding company act and
federal deposit insurance act</header><text display-inline="yes-display-inline">A financial company subject to stricter
standards that does not own a bank (as defined in section 2 of the Bank Holding
Company Act of 1956) and that is not a foreign bank or company that is treated
as a bank holding company under section 8 of the International Banking Act of
1978 shall be subject to section 4, subsections (b), (c), (d), (e), (f), and
(g) of section 5, and section 8 of the Bank Holding Company Act of 1956, and
section 8 of the Federal Deposit Insurance Act in the same manner and to the
same extent as if such financial holding company subject to stricter standards
were a bank holding company that has elected to be a financial holding company
(as such terms are defined in the Bank Holding Company Act of 1956), its
subsidiaries were subsidiaries of a bank holding company, and the Board was its
appropriate Federal banking agency (as such term is defined under the Federal
Deposit Insurance Act).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H92574FC4F51D483388FE8416BC37BB2D"><enum>(B)</enum><header display-inline="yes-display-inline">Board authority</header><text display-inline="yes-display-inline">For purposes of administering and enforcing
the provisions of this title, the Board may take any action with respect to a
financial holding company subject to stricter standards described in
subparagraph (A) or its subsidiaries under the authorities described in
subparagraph (A) as if such financial holding company subject to stricter
standards were a bank holding company that has elected to be a financial
holding company (as such terms are defined in the Bank Holding Company Act of
1956), its subsidiaries were subsidiaries of a bank holding company, and the
Board was its appropriate Federal banking agency (as such term is defined under
the Federal Deposit Insurance Act).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBC09B2DBB0B44D5687A9FCD1B1288442"><enum>(2)</enum><header display-inline="yes-display-inline">Application of activity restrictions and
section 6 holding company requirements</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5E9093E48F1B452ABCFA511EEAFF5612"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraphs (B) and
(C)—</text>
<clause commented="no" display-inline="no-display-inline" id="H3DCE2693306F4A819075CC1D5F41159E"><enum>(i)</enum><text display-inline="yes-display-inline">a financial holding company subject to
stricter standards that conducts activities that do not comply with section 4
of the Bank Holding Company Act shall be required to establish or designate a
section 6 holding company in accordance with section 6 of the Bank Holding
Company Act of 1956 through which it conducts activities of the company that
are determined to be financial in nature or incidental thereto under section
4(k) of the such Act; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4629CE3A27E94431AC473B55428E1104"><enum>(ii)</enum><text display-inline="yes-display-inline">such section 6 holding company shall be the
financial holding company subject to stricter standards for purposes of this
title.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFE22D8EE23944D18A80DA16AF3E11A7A"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions from section 6 holding company
requirements</header><text display-inline="yes-display-inline"></text>
<clause commented="no" display-inline="no-display-inline" id="H608AD0CFC5F6477187449A6E74733DE8"><enum>(i)</enum><header display-inline="yes-display-inline">General requirement for board to consider
exceptions</header><text display-inline="yes-display-inline">Before such time
as a financial holding company subject to stricter standards is required to
establish or designate a section 6 holding company under section 6 of the Bank
Holding Company Act, and in consultation with the financial holding company
subject to stricter standards and any appropriate Federal or State financial
regulators (and, in the case of a financial holding company subject to stricter
standards that is an insurance company, the Federal Insurance Office)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H0C81213C94824CD085D610F11C6A8F77"><enum>(I)</enum><text display-inline="yes-display-inline">the Board shall consider whether to grant
any of the exemptions from the requirements applicable to section 6 holding
companies under section 6(a)(6)(A) of the Bank Holding Company Act of 1956, in
accordance with that provision; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9F252CCC381545FFB90EEAB83CFC0074"><enum>(II)</enum><text display-inline="yes-display-inline">the Board, at the request of a financial
holding company subject to stricter standards that is predominantly engaged in
activities that are determined to be financial in nature or incidental thereto
under section 4(k) of the Bank Holding Company Act, shall consider whether to
exempt the financial holding company subject to stricter standards from the
requirement to establish a section 6 holding company, taking into consideration
paragraph (2)(D), and the extent to which the exemption would: facilitate the
extension of credit to individuals, households and businesses; improve
efficiency or customer service or result in other public benefits; potentially
threaten the safety and soundness of the financial holding company or any of
its subsidiaries; potentially increase systemic risk or threaten the stability
of the overall financial system; potentially result in unfair competition; and
potentially have anticompetitive effects that would not be outweighed by public
benefits.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE4872DC365E54DC288E0CD3EED8C3BAD"><enum>(ii)</enum><header display-inline="yes-display-inline">Board determination not to exempt</header>
<subclause commented="no" display-inline="no-display-inline" id="H793350E1E9374012B4F62761DF076BE9"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the Board determines not to exempt the
financial holding company subject to stricter standards from the requirement to
establish a section 6 holding company, the financial holding company subject to
stricter standards shall establish a section 6 holding company within 90 days
after the Board’s determination.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H187E5718257E47EA9ABEE8A8F3ADCB51"><enum>(II)</enum><header display-inline="yes-display-inline">Extension of period</header><text display-inline="yes-display-inline">The Board may extend the time by which the
financial holding company subject to stricter standards is required to
establish a section 6 holding company for an additional reasonable period of
time, not to exceed 180 days.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H778FEEE7780541F9B462E15C86D7D936"><enum>(iii)</enum><header display-inline="yes-display-inline">Board determination to exempt</header>
<subclause commented="no" display-inline="no-display-inline" id="H36262F9BF01540009BAC75EAD8E6F639"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the Board grants the requested exemption
from the requirement to establish a section 6 holding company, the financial
holding company subject to stricter standards shall at all times remain
predominantly engaged in activities that are determined to be financial in
nature or incidental thereto under section 4(k) of the Bank Holding Company Act
of 1956, and shall be the financial holding company subject to stricter
standards for purposes of this title.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H93FEB9592AC84ACBB55950B079021D4C"><enum>(II)</enum><header display-inline="yes-display-inline">Subsequent loss of exemption</header><text display-inline="yes-display-inline">Upon a determination by the Board, in
consultation with any relevant Federal or State regulators of the financial
holding company subject to stricter standards, and, in the case of a financial
holding company subject to stricter standards that is an insurance company, the
Federal Insurance Office, that the financial holding company subject to
stricter standards fails to comply with this subsection, the financial holding
company subject to stricter standards shall lose the exemption from the section
6 holding company requirement and shall establish a section 6 holding company
within the time periods described in clause (ii)(I).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H109AA3A397E1464AA05A9CD60A0E502E"><enum>(C)</enum><header display-inline="yes-display-inline">Activities conducted abroad</header><text display-inline="yes-display-inline">Section 4 of the Bank Holding Company Act
of 1956 shall not apply to any activities that a foreign financial holding
company subject to stricter standards conducts solely outside the United States
if such activities are conducted solely by a company or other entity that is
located outside the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB82AEA48E2A543C29B799011D2082EEA"><enum>(D)</enum><header display-inline="yes-display-inline">Flexible application</header><text display-inline="yes-display-inline">In applying the activity restrictions and
ownership limitations of section 4 of the Bank Holding Company Act of 1956 to
financial holding companies subject to stricter standards described in
paragraph (1)(A), the Board shall flexibly adapt such requirements taking into
account the usual and customary practices in the business sector of the
financial company subject to stricter standards so as to avoid unnecessary
burden and expense.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC751A79499314C1588E814731D0FF91B"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2312269A4DFB415C9E9FA16502074FD5" section-type="subsequent-section"><enum>1104.</enum><header display-inline="yes-display-inline">Stricter prudential standards for certain
financial holding companies for financial stability purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="H158B6D40A1A347F7A4B1EFAD09311FBD"><enum>(a)</enum><header display-inline="yes-display-inline">Stricter prudential standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H51E9876D0DB641A8AF254CBDC4116118"><enum>(1)</enum><header display-inline="yes-display-inline">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, as
agent of the Council, 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 commented="no" display-inline="no-display-inline" id="HA8D71AFC4FEA4225B599732066C57655"><enum>(2)</enum><header display-inline="yes-display-inline">Standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7BB0786C73F148C5951D020EBDC9BB80"><enum>(A)</enum><header display-inline="yes-display-inline">Required standards</header><text display-inline="yes-display-inline">The stricter standards imposed by the Board
under this section shall include—</text>
<clause commented="no" display-inline="no-display-inline" id="H604F1C68606540098EFDCC4566416EC3"><enum>(i)</enum><text display-inline="yes-display-inline">risk-based capital requirements and
leverage limits, unless the Board determines that such requirements are not
appropriate for a financial holding company subject to stricter standards
because of such company’s activities (such as investment company activities or
assets under management) or structure, in which case the Board shall apply
other standards that result in appropriately stringent controls.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2735301EF90C4947A048795A2230B833"><enum>(ii)</enum><text display-inline="yes-display-inline">liquidity requirements;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDEF4B59C48C44DD8A76D619483F971D1"><enum>(iii)</enum><text display-inline="yes-display-inline">concentration requirements (as specified in
subsection (c));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8F7AA6280415459D878C2AF4FCC175F2"><enum>(iv)</enum><text display-inline="yes-display-inline">prompt corrective action requirements (as
specified in subsection (e));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3486ADBA2CD8458DB6171BCCA75A85F0"><enum>(v)</enum><text display-inline="yes-display-inline">resolution plan requirements (as specified
in subsection (f)); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4A246843774143179ABDDC912A5EC7CB"><enum>(vi)</enum><text display-inline="yes-display-inline">overall risk management
requirements.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1E3CE7B22D594332B7C272594EA69E75"><enum>(B)</enum><header display-inline="yes-display-inline">Additional standards</header><text display-inline="yes-display-inline">The heightened standards imposed by the
Board under this section also may include short-term debt limits prescribed in
accordance with subsection (d) and any other prudential standards that the
Board deems advisable, including taking actions to mitigate systemic
risk.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H721F51D5C3E841C9BF56929AF4A0AF58"><enum>(C)</enum><header display-inline="yes-display-inline">Consultation with Federal financial
regulatory agencies and the Federal Insurance Office</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. With respect to a
financial holding company subject to stricter standards that is an insurance
company or any insurance company subsidiary of such a financial holding company
subject to stricter standards, the Board shall also consult with the Federal
Insurance Office.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7531E65FAE6D4CD18605E582C2C56044"><enum>(3)</enum><header display-inline="yes-display-inline">Application of required
standards</header><text display-inline="yes-display-inline">In imposing
prudential standards under this section, the Board—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7B1A89C56ACB4B7DA2CF6900229F474B"><enum>(A)</enum><text display-inline="yes-display-inline">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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA2180882019C4FD1B3F8A185F4B0F277"><enum>(B)</enum><text display-inline="yes-display-inline">shall take into consideration whether and
to what extent a financial holding company subject to stricter standards that
is not a bank holding company or treated as a bank holding company owns or
controls a depository institution and shall adapt the prudential standards
applied to such company as appropriate in light of any predominant line of
business of such company, including assets under management or other activities
for which capital requirements are not appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD74B70EE387547C89B62D6394200CF5B"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC3F4C491B8ED4DCFB59504077B682BCF"><enum>(5)</enum><header display-inline="yes-display-inline">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 a foreign financial parent and to a Federal or State branch,
subsidiary, or operating entity that is owned or controlled by a foreign
financial parent, giving due regard to principles of national treatment and
equality of competitive opportunity and taking into account the extent to which
the foreign financial parent is subject on a consolidated basis to home country
standards comparable to those applied to financial holding companies in the
United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF0DF8A1E3733480FAB257BD6017D4729"><enum>(6)</enum><header display-inline="yes-display-inline">Inclusion of off balance sheet activities
in computing capital requirements</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1EDD9646983F4891BF12C011D701CA13"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEA3103498D64FA798D9CF138C23219B"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H313E0A94543543C4BEE4CE6D4E605B45"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC02128F97F70425081223A86D647DED9"><enum>(i)</enum><text display-inline="yes-display-inline">Direct credit substitutes in which a bank
substitutes its own credit for a third party, including standby letters of
credit.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HECE74AFD08E341E38F266A216528665A"><enum>(ii)</enum><text display-inline="yes-display-inline">Irrevocable letters of credit that
guarantee repayment of commercial paper or tax-exempt securities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H54952965EFDD415AA7F7C85BB08212CC"><enum>(iii)</enum><text display-inline="yes-display-inline">Risk participation in bankers’
acceptances.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAA32427B0007450EA53510E128FCC48F"><enum>(iv)</enum><text display-inline="yes-display-inline">Sale and repurchase agreements.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD91E8B90B803435396D8E47F56D5F39C"><enum>(v)</enum><text display-inline="yes-display-inline">Asset sales with recourse against the
seller.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA5414250787445CAADBE8A7BD663DA28"><enum>(vi)</enum><text display-inline="yes-display-inline">Interest rate swaps.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3E1F8BDA232641129FB77B9D1657E3A0"><enum>(vii)</enum><text display-inline="yes-display-inline">Credit swaps.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD526E46AF5DB4A3EA311C2D9154E0746"><enum>(viii)</enum><text display-inline="yes-display-inline">Commodity contracts.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H712537E2099E46EA8E0E444FE1042F27"><enum>(ix)</enum><text display-inline="yes-display-inline">Forward contracts.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA6872B280682407AB6EDA81AF770BAA4"><enum>(x)</enum><text display-inline="yes-display-inline">Securities contracts.</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HCD4B62CF678C4B7BAC6BC08E4C8F1A26"><enum>(b)</enum><header display-inline="yes-display-inline">Prudential standards at functionally
regulated subsidiaries and subsidiary depository institutions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H07E95985C02647AFBAFF901612C7B0F0"><enum>(1)</enum><header display-inline="yes-display-inline">Board authority to recommend
standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA21198C8FB94D4BAECCEAF796868F2A"><enum>(2)</enum><header display-inline="yes-display-inline">Agency authority to implement heightened
standards and safeguards</header><text display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="H28744792A6F843839228AF743F15D052"><enum>(3)</enum><header display-inline="yes-display-inline">Imposition of standards</header><text display-inline="yes-display-inline">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 and, with respect to an insurance company, the
Federal Insurance Office.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2F8C39C2BA934A9482B9FDC7AF5B09AA"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H18065570B10B4A24BC2F365E6606010D"><enum>(c)</enum><header display-inline="yes-display-inline">Concentration limits for financial holding
companies subject to stricter standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5CCF27D393504933BAA6E596C74A8F14"><enum>(1)</enum><header display-inline="yes-display-inline">Standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF9909C2AEF5E4CAB871077897F7F0BD7"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H830241C07D134A6D816A004075A87E11"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA40AA28A5E044AEB9387C4AFB0E297C3"><enum>(A)</enum><text display-inline="yes-display-inline">all extensions of credit to the company,
including loans, deposits, and lines of credit;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD5A48B5E6C0049BDA4E9A6E9FC5711C7"><enum>(B)</enum><text display-inline="yes-display-inline">all repurchase agreements and reverse
repurchase agreement with the company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H09C26D7AF58443A587056BB008839C62"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F6F66A41A0A43619E266D8E18C3AAD3"><enum>(D)</enum><text display-inline="yes-display-inline">all guarantees, acceptances, or letters of
credit (including endorsement or standby letters of credit) issued on behalf of
the company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5C8A4DAB1FBB4A90AAE1C2CDC623DA98"><enum>(E)</enum><text display-inline="yes-display-inline">all purchases of or investment in
securities issued by the company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB242B7A96D3249ADAE1122485F68DD46"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F7FD4CEA0134D2EAFC38D02CCE25B12"><enum>(G)</enum><text display-inline="yes-display-inline">any other similar transactions that the
Board by regulation determines to be a credit exposure for purposes of this
section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF739B0D859C4365B6891199199DF896"><enum>(4)</enum><header display-inline="yes-display-inline">Attribution rule</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H96154BB6BFF440A0ACC762BA06E2BFB9"><enum>(5)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4154A1A166D416BBDD4B7556AF4F743"><enum>(6)</enum><header display-inline="yes-display-inline">Exemptions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD11109B64EC34CEA8C1D2354D7075C27"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header>
<clause commented="no" display-inline="no-display-inline" id="H37719A5310C3460D9BB27AC75EC5BAF1"><enum>(i)</enum><header display-inline="yes-display-inline">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 except as specifically provided in this
title.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6E0B2AB6C53841CE8B05D587E5CB37C7"><enum>(ii)</enum><header display-inline="yes-display-inline">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 except as specifically provided in this
title.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H908E4C69D44D4DE69F41C437BFB38A5C"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC8F05E1C61244757B5A9F9C26B966C4A"><enum>(7)</enum><header display-inline="yes-display-inline">Transition period</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6D21C432044043F4BD36B0B48AA7D226"><enum>(d)</enum><header display-inline="yes-display-inline">Short-term debt limits for certain
financial holding companies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H13873CA47A9E4DFBA6A1D27EC2327092"><enum>(1)</enum><header display-inline="yes-display-inline">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 may 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 commented="no" display-inline="no-display-inline" id="HD6D74EE057664D1398D10BC042850DDE"><enum>(2)</enum><header display-inline="yes-display-inline">Basis
of limit</header><text display-inline="yes-display-inline">Any 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 commented="no" display-inline="no-display-inline" id="H0516DD19ACE547C6A6399CADB3A2076D"><enum>(3)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HFF1F52718B554CB2AE342916A6AA397D"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H65D91C5BD8994FCB9F573310B1280A4A"><enum>(5)</enum><header display-inline="yes-display-inline">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></subsection><subsection commented="no" display-inline="no-display-inline" id="H41642520BBB745F49E4A5D4A52EE1BE0"><enum>(e)</enum><header display-inline="yes-display-inline">Prompt corrective action for financial
holding companies subject to stricter standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4DFB88B2CB3B45019D8648F5894D163D"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1ECDBC3DE05948D8B54C08F128F84654"><enum>(2)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H63E11EDD4D9847789E57E8DA6E33812E"><enum>(A)</enum><header display-inline="yes-display-inline">Capital categories</header>
<clause commented="no" display-inline="no-display-inline" id="H6E6ED558846A4FF883EC3AEC4A33425C"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC85C1D05102B4E99971AD17005EF114A"><enum>(ii)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92835A4C4331471D9BD3CC2DA5453CBC"><enum>(iii)</enum><header display-inline="yes-display-inline">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. The Board shall define by rule or
regulation the term <quote>significantly undercapitalized</quote> at a
threshold the Board determines to be prudent for the effective monitoring,
management and oversight of the financial system.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAD860FC87614465898D2ED062ACB5BF9"><enum>(iv)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B0B378ADE494313AE6138FDE9D6A830"><enum>(3)</enum><header display-inline="yes-display-inline">Other definitions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7BD21B4DE09941BAB433080686BBAE4C"><enum>(A)</enum><header display-inline="yes-display-inline">Average</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F3D561DFCD140DAB15A34A02A7CE3C0"><enum>(B)</enum><header display-inline="yes-display-inline">Capital distribution</header><text display-inline="yes-display-inline">The term <term>capital distribution</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="HDF2A99CD84EF47F48EA02F8EDDB1917B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE463D3CE39364C9A9C8FC9DD9B653434"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H915BC4233A094B88AA6BD01D38173536"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6ED2505E3C2349B390CDE80C7F87F724"><enum>(C)</enum><header display-inline="yes-display-inline">Capital restoration plan</header><text display-inline="yes-display-inline">The term <term>capital restoration
plan</term> means a plan submitted under paragraph (6)(B).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1F6C4CBDAEE947A79360133F7ED20B76"><enum>(D)</enum><header display-inline="yes-display-inline">Compensation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DD7F6C228D14AFB8EE5716AEA5978C0"><enum>(E)</enum><header display-inline="yes-display-inline">Relevant capital measure</header><text display-inline="yes-display-inline">The term <term>relevant capital
measure</term> means the measures described in paragraph (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFFBC60E23B234C81A278E8A19312EA48"><enum>(F)</enum><header display-inline="yes-display-inline">Required minimum level</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H449333F3AD6C43128E9388124B061A9C"><enum>(G)</enum><header display-inline="yes-display-inline">Senior executive officer</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E63D90A365642B29A6E1C206CEB7030"><enum>(4)</enum><header display-inline="yes-display-inline">Capital standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7A3783EB8D20476FA0D61E681DAF8A37"><enum>(A)</enum><header display-inline="yes-display-inline">Relevant capital measures</header>
<clause commented="no" display-inline="no-display-inline" id="H3AB5EBFEA74A47AD81C49B9CF46448DE"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii)(II), the
capital standards prescribed by the Board under section 1104(a)(2) shall
include—</text>
<subclause commented="no" display-inline="no-display-inline" id="H8CF189B3FDCE479FB4C2091B18B1D042"><enum>(I)</enum><text display-inline="yes-display-inline">a leverage limit; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5F58B1A598D44553BB49A1366E4BF4C4"><enum>(II)</enum><text display-inline="yes-display-inline">a risk-based capital requirement.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HB4E6EFC78EDD4AFDA69F3A65B5ADB91E"><enum>(ii)</enum><header display-inline="yes-display-inline">Other capital measures</header><text display-inline="yes-display-inline">The Board may by regulation—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2710BCE8D9C6498B944AE2FDC4905B19"><enum>(I)</enum><text display-inline="yes-display-inline">establish any additional relevant capital
measures to carry out this section; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HABF533DDAA7F4B7DAF43A4CCB8179C15"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H62D989BEC02944ADA5F540AE9AA66143"><enum>(B)</enum><header display-inline="yes-display-inline">Capital categories generally</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H69A3D22F0BEC435E9FE1C0617E224E54"><enum>(C)</enum><header display-inline="yes-display-inline">Critical capital</header>
<clause commented="no" display-inline="no-display-inline" id="HC26D0F815DE5448EBA31196A13A4F7B9"><enum>(i)</enum><header display-inline="yes-display-inline">Board to specify level</header>
<subclause commented="no" display-inline="no-display-inline" id="HC70D19BDDEEB4D68A061FAA5233A537B"><enum>(I)</enum><header display-inline="yes-display-inline">Leverage
limit</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39C5A81023E84B9B833E9A663D2CA323"><enum>(II)</enum><header display-inline="yes-display-inline">Other relevant capital
measures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H89C819F856F9410BA8FE9C23EC4D4832"><enum>(ii)</enum><header display-inline="yes-display-inline">Leverage limit range</header><text display-inline="yes-display-inline">The level specified under clause (i)(I)
shall require tangible equity in an amount—</text>
<subclause commented="no" display-inline="no-display-inline" id="H86FC09685AB9485291388D8E1AA13965"><enum>(I)</enum><text display-inline="yes-display-inline">not less than 2 percent of total assets;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H46019263B0044D37B4F981BDB4CEB9A4"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8E66B50AC1BE44C4A1846E829BA73BBE"><enum>(5)</enum><header display-inline="yes-display-inline">Capital distributions restricted</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F7FAA56D2734FD5A6977979BFC8724E"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4849ECD91E36431081B41D9350BFD512"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H01C763FF04D04E3A88A4AADCB87D0BE5"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA5BD23E8CAB54B5B82B9E3DF43480A8A"><enum>(6)</enum><header display-inline="yes-display-inline">Provisions applicable to undercapitalized
financial holding company subject to stricter standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4C8D673B9CB94D14A20589A0D26528D1"><enum>(A)</enum><header display-inline="yes-display-inline">Monitoring required</header><text display-inline="yes-display-inline">The Board shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H816BE421103A4F2388760E9684522E2A"><enum>(B)</enum><header display-inline="yes-display-inline">Capital restoration plan required</header>
<clause commented="no" display-inline="no-display-inline" id="HB2B2F804C07F46FE87D86DAC7D730B53"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2FCDFE0E89664C8381A8C8C11491FB7D"><enum>(ii)</enum><header display-inline="yes-display-inline">Contents of plan</header><text display-inline="yes-display-inline">The capital restoration plan shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="H15C32E4EE6334FC1A8B8269F83AF4A80"><enum>(I)</enum><text display-inline="yes-display-inline">specify—</text>
<item commented="no" display-inline="no-display-inline" id="H14D7D25A46F94E71A8A871D91A957396"><enum>(aa)</enum><text display-inline="yes-display-inline">the steps the financial holding company
subject to stricter standards will take to become well capitalized;</text>
</item><item commented="no" display-inline="no-display-inline" id="H05E28968517544C0A8795F250E176DF7"><enum>(bb)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE283DFE6CB0C405F991AB7B511704861"><enum>(cc)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF5007D5443D14EE7BF902EC0465E2A69"><enum>(dd)</enum><text display-inline="yes-display-inline">the types and levels of activities in which
the financial holding company subject to stricter standards will engage;
and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="H6FF6647066014FED93E9EDEA92CCD2BD"><enum>(II)</enum><text display-inline="yes-display-inline">contain such other information that the
Board may require.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HD35B298774464F94BFAE58D10E44C84E"><enum>(iii)</enum><header display-inline="yes-display-inline">Criteria for accepting plan</header><text display-inline="yes-display-inline">The Board shall not accept a capital
restoration plan unless it determines that the plan—</text>
<subclause commented="no" display-inline="no-display-inline" id="H31A529521A8B4E239A8FF55B1B787127"><enum>(I)</enum><text display-inline="yes-display-inline">complies with clause (ii);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HAFA291872DCF4E5F88A64417EB18A974"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H62D013FF820E490A894FA9A6E429761E"><enum>(iv)</enum><header display-inline="yes-display-inline">Deadlines for submission and review of
plans</header><text display-inline="yes-display-inline">The Board shall, by
regulation, establish deadlines that—</text>
<subclause commented="no" display-inline="no-display-inline" id="H0862EA6AD26246E9818DB239526C67DA"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2F6D04CE495642928106E051F77620E8"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8283FF5EB9F54E43A6E3905016C55BE7"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBF03634B1C0A4D59A63F5C3792549890"><enum>(ii)</enum><text display-inline="yes-display-inline">any increase in total assets is consistent
with the plan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE31C82C04017431F893EA0A5768AC49C"><enum>(D)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HEBEE09DE21304C9C83F86A79A3EE2D40"><enum>(ii)</enum><text display-inline="yes-display-inline">the Board determines that the specific
proposed action is appropriate; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8578D7034F824B9D9726855C0A2BEA6A"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9613E814A7E47D4BEB3B6D0F8088D09"><enum>(E)</enum><header display-inline="yes-display-inline">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. The Board, in determining whether to impose
any requirement under this subparagraph that is likely to have a significant
effect on a functionally regulated subsidiary, subsidiary depository
institution, or insurance company subsidiary of a financial holding company
subject to stricter standards, shall consult with the primary financial
regulatory agency for such subsidiary. In the case of an insurance company
subsidiary of a financial holding company subject to stricter standards, the
Board shall consult with the Federal Insurance Office.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A0AA7672D794899AA4046359C511E3C"><enum>(7)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2FBC6E7A6B364092A6E03334347904D6"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCED8F721DA4043C295999294CE29F0D8"><enum>(i)</enum><text display-inline="yes-display-inline">is significantly undercapitalized;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H70B2983995AA48B7BA640264553F85E3"><enum>(ii)</enum><text display-inline="yes-display-inline">is undercapitalized and—</text>
<subclause commented="no" display-inline="no-display-inline" id="HBEAE686BDBD54B64AE624B937B784D45"><enum>(I)</enum><text display-inline="yes-display-inline">fails to submit an acceptable capital
restoration plan within the time allowed by the Board under paragraph
(6)(B)(iv); or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6DF453318B254572BC7C49E6B05407C5"><enum>(II)</enum><text display-inline="yes-display-inline">fails in any material respect to implement
a capital restoration plan accepted by the Board.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0EAB84769AEA40CA9EA836660E668C28"><enum>(B)</enum><header display-inline="yes-display-inline">Specific actions authorized</header><text display-inline="yes-display-inline">The Board shall carry out this paragraph by
taking 1 or more of the following actions—</text>
<clause commented="no" display-inline="no-display-inline" id="H77BED62C51B54263B414EEE17661C1FB"><enum>(i)</enum><header display-inline="yes-display-inline">Requiring recapitalization</header><text display-inline="yes-display-inline">Doing one or more of the following:</text>
<subclause commented="no" display-inline="no-display-inline" id="HBF0B4408E0764130B8AC470888351CEC"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC6BB1A3A6A4F48E08DF3AA7F862AF014"><enum>(II)</enum><text display-inline="yes-display-inline">Further requiring that instruments sold
under subclause (I) be voting shares.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA8C08D9FDFD84E8E9F518638AE0173AA"><enum>(III)</enum><text display-inline="yes-display-inline">Requiring the financial holding company
subject to stricter standards to be acquired by or combine with another
company.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE9F2BF463FBA44D5A5C9483E3AE6F873"><enum>(ii)</enum><header display-inline="yes-display-inline">Restricting transactions with
affiliates</header>
<subclause commented="no" display-inline="no-display-inline" id="H0BB9C939492E465CB3CB1363D8ED535D"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H6850211061FD4D90ADED4EDAC42D817E"><enum>(iii)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H465CA60229654CBFB0DD3C3F4E8D8203"><enum>(iv)</enum><header display-inline="yes-display-inline">Restricting activities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H049662910D5A4EE987898F44C20A1508"><enum>(v)</enum><header display-inline="yes-display-inline">Improving management</header><text display-inline="yes-display-inline">Doing one or more of the following:</text>
<subclause commented="no" display-inline="no-display-inline" id="HC248EAC9DAD742149EF14C5D0846CCCC"><enum>(I)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17349FA1C0E24102BFDB841F031A9F6D"><enum>(II)</enum><header display-inline="yes-display-inline">Dismissing directors or senior executive
officers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B00AFE9B5BB43C6998F886BDEE9F3AF"><enum>(III)</enum><header display-inline="yes-display-inline">Employing qualified senior executive
officers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF46448C00FB46A2A9A9BDE8CB0607FA"><enum>(vi)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A0545D6010E4F319C6DB9C7D929615F"><enum>(vii)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F6519478D15416982D155E8056C7660"><enum>(C)</enum><header display-inline="yes-display-inline">Presumption in favor of certain
actions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1744483755214A2EBC1D23E621D41BA0"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H12F2B6F18E7545F1A2D72ECBA13678AA"><enum>(ii)</enum><text display-inline="yes-display-inline">The action described in subparagraph
(B)(ii) (relating to restricting transactions with affiliates).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75D704CA247447798F570091BF9DD93B"><enum>(D)</enum><header display-inline="yes-display-inline">Senior executive officers’ compensation
restricted</header>
<clause commented="no" display-inline="no-display-inline" id="H76954D5AD4C44C3FA4C5F69A95C03674"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9597B2149CE845C6B5A01198FD217367"><enum>(I)</enum><text display-inline="yes-display-inline">Pay any bonus to any senior executive
officer.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4A7778EA7B8B4D0DBE18E957174BE090"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF6DE64A09ED2450B943E0029FE59F59B"><enum>(ii)</enum><header display-inline="yes-display-inline">Failing to submit plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD5474EFF8B1242B6AE03E2CC3E43B0D7"><enum>(E)</enum><header display-inline="yes-display-inline">Consultation with other
regulators</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE38B77D43EE34A0BBC7203F48776D863"><enum>(8)</enum><header display-inline="yes-display-inline">More stringent treatment based on other
supervisory criteria</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F827C53B4E84285998E672AA68BCF16"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H960E2A876ADB41E380AA8A8EF2FFB57A"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2AA6E35C9AE0405099836AA7E4B49841"><enum>(ii)</enum><text display-inline="yes-display-inline">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, after consultation with the
primary financial regulatory agency for any functionally regulated subsidiary,
subsidiary depository institution, or insurance company subsidiary that is
likely to be significantly affected by such actions. In the case of an
insurance company subsidiary of a financial holding company subject to stricter
standards, the Board shall consult with the Federal Insurance Office.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A4A8DF14A2B49CFB22DA5DA95E0823D"><enum>(B)</enum><header display-inline="yes-display-inline">Contents of plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H38EE18C760FA41D2B0DB401493970942"><enum>(9)</enum><header display-inline="yes-display-inline">Implementation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD358F84B12B64593946A5D098B21FDEC"><enum>(10)</enum><header display-inline="yes-display-inline">Other authority not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D9E784424CB4B2599B7A2006DF593ED"><enum>(11)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H05F4C7FF6CEC41DC99B36A2E6BB7F687"><enum>(12)</enum><header display-inline="yes-display-inline">Administrative review of dismissal
orders</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2BB0948AA0C14B76A142DAE6D5A2C19F"><enum>(A)</enum><header display-inline="yes-display-inline">Timely petition required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA4D7E103C47245F7ADF198D5918341DB"><enum>(B)</enum><header display-inline="yes-display-inline">Procedure</header>
<clause commented="no" display-inline="no-display-inline" id="H6DD18BE55693416EBEAFDE937590BEA7"><enum>(i)</enum><header display-inline="yes-display-inline">Hearing required</header><text display-inline="yes-display-inline">The Board shall give the petitioner an
opportunity to—</text>
<subclause commented="no" display-inline="no-display-inline" id="HFEBCB1DB5FF4494E975A40878B2464EA"><enum>(I)</enum><text display-inline="yes-display-inline">submit written materials in support of the
petition; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H469D75BADF4D49D49ACB6083F98B8AD1"><enum>(II)</enum><text display-inline="yes-display-inline">appear, personally or through counsel,
before 1 or more members of the Board or designated employees of the
Board.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H9FCA146A0D8341F9B6B4E212E14BCFF2"><enum>(ii)</enum><header display-inline="yes-display-inline">Deadline for hearing</header><text display-inline="yes-display-inline">The Board shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2E51655B415844AD9606FC1392DBB4F3"><enum>(I)</enum><text display-inline="yes-display-inline">schedule the hearing referred to in clause
(i)(II) promptly after the petition is filed; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1E66FBC69F2742FFB52968DF2BD6D44D"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F419C2C58E742E88A59C7053D75DC8C"><enum>(iii)</enum><header display-inline="yes-display-inline">Deadline for decision</header><text display-inline="yes-display-inline">Not later than 60 days after the date of
the hearing, the Board shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD07A9BB474074248AED459B40646E0C0"><enum>(I)</enum><text display-inline="yes-display-inline">by order, grant or deny the
petition;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H66F504F140F04CE582D5D921B71BA3E8"><enum>(II)</enum><text display-inline="yes-display-inline">if the order is adverse to the petitioner,
set forth the basis for the order; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB852FEE42EFC4EF0B7D04C62818054CD"><enum>(III)</enum><text display-inline="yes-display-inline">notify the petitioner of the order.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H18CC88A863E94B0FB52C95DF6C72EF0D"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H62DD67B26ABF4F9FB773FEEEBBF69A6D"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC0EF95FAB1904F108269B3A90F6C6A5E"><enum>(13)</enum><header display-inline="yes-display-inline">Enforcement authority for foreign financial
holding company subject to stricter standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC15BC647D7DC4D4294AD82321EB7406B"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7853EB1ABB2A48E7813E590B4A7B9DED"><enum>(B)</enum><header display-inline="yes-display-inline">Discretion to deny hearing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FB171C5EBE649EBBEC9D04DA9DA8687"><enum>(f)</enum><header display-inline="yes-display-inline">Reports regarding rapid and orderly
resolution and credit exposure</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3E1E7C72B4B440CCB32CFD7BFB302EAB"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9894B8D0551747A99B90B70471439310"><enum>(A)</enum><text display-inline="yes-display-inline">its plan for rapid and orderly resolution
in the event of severe financial distress;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBCE6199395E84DB4BF612BF258A4E018"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDA27CA593704CD7A20B0F1CD2F2010D"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H962B38B44A9B4A61A771EA0594C7E48F"><enum>(2)</enum><header display-inline="yes-display-inline">No limiting effect</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF20B66E8B1C749C990DE6844CC7090A4"><enum>(3)</enum><header display-inline="yes-display-inline">Reporting triggered by stress test
results</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8B75A55BF0C846C2A45BF152A1329B5B"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A4F6919FFD44932860FC8BAB677DB3E"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1AE5A211B7945A5A8EA8C9A3AF86370"><enum>(C)</enum><header display-inline="yes-display-inline">Transparency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6DFF3D983C134560A0E364CDBB094F48"><enum>(g)</enum><header display-inline="yes-display-inline">Stress tests</header>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA546710A39DE4797A2C6AB5880EF82C5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CE1F5EF3D0341F389E1F51D3764DB36"><enum>(h)</enum><header display-inline="yes-display-inline">Avoiding duplication</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3B080B107388453396C71AB8E2ECDBFF"><enum>(i)</enum><header display-inline="yes-display-inline">Resolution plans required</header>
<paragraph commented="no" display-inline="no-display-inline" id="H08EA802D2826406A98522803265C26E6"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H78957A04416643A995291914B599BD71"><enum>(2)</enum><header display-inline="yes-display-inline">Standards for resolution
plans</header><text display-inline="yes-display-inline">The regulations
required by paragraph (1) shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H45D537DF4762418C9BA94469D4DDC91E"><enum>(C)</enum><text display-inline="yes-display-inline">require that each plan include information
detailing—</text>
<clause commented="no" display-inline="no-display-inline" id="HF23AD83473804A4EB420DCF372ACFB81"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H225A2D0B7A644F1DA345EDF7F6884EA0"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF2E1BF2CD1044925804CA615D7A9BEDC"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22DC826CDAEF4A2786A16D5E52E5C70B"><enum>(D)</enum><text display-inline="yes-display-inline">establish such other standards as the
Corporation and the Board may jointly deem necessary to carry out this
subsection.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE72486C051344098A6297A0CABF6F83C"><enum>(3)</enum><header display-inline="yes-display-inline">Review of plans</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H92EDF2A971644EA19C04EB10E5D1FD34"><enum>(A)</enum><header display-inline="yes-display-inline">Submission of plans</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD76EC10FBDFC417DA533F7ED9B805F55"><enum>(B)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">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 (and, if the financial holding company subject to stricter
standards is an insurance company, the Federal Insurance Office), 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 commented="no" display-inline="no-display-inline" id="H13ADEDF3DCEA42F7B8BF9C5E13AA2D5D"><enum>(4)</enum><header display-inline="yes-display-inline">Enforcement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8C647D387A6D43B1B2A0386EEB615779"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47EB87C79EBF49809773B62C8AAD1D30"><enum>(B)</enum><header display-inline="yes-display-inline">No limitation on Board
authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7C4DDB22B08A4B95B8AE44B223F88EB5"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H385DB9E9AB5842AB945302F61874EDF5"><enum>(6)</enum><header display-inline="yes-display-inline">No private right of action</header><text display-inline="yes-display-inline">No private right of action may be based on
any resolution plan submitted under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8FCFC430ABB247A1AE58FBE87A874A7B"><enum>(j)</enum><header display-inline="yes-display-inline">Rule of construction regarding consumer
protection standards</header><text display-inline="yes-display-inline">The
prudential standards imposed or recommended by the Board or the Council under
this section shall not be construed as superseding—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC0F948B73CF24690B771F5A350F138A3"><enum>(1)</enum><text display-inline="yes-display-inline">any consumer protection standards
promulgated under a State or Federal consumer protection law, including the
Consumer Financial Protection Agency Act and the Federal Trade Commission Act;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA42A826D92FC43CA95FBCFEB6B142921"><enum>(2)</enum><text display-inline="yes-display-inline">any investor protection standard that
protects consumers (including public reporting requirements) imposed under
State or Federal securities laws, including the Securities Act of 1933, the
Securities Exchange Act of 1934, the Investment Company Act of 1944, and the
Investment Advisors Act of 1944.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBE74EC650F8D495EA7833C318C936474"><enum>(k)</enum><header display-inline="yes-display-inline">Rulemaking authority</header><text display-inline="yes-display-inline">The Board may prescribe such regulations
and issue such orders as the Board, in consultation with the Council,
determines to be necessary to carry out the provisions of this subtitle.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H70C8D7BA735543798E9D0D18B5780680" section-type="subsequent-section"><enum>1105.</enum><header display-inline="yes-display-inline">Mitigation of systemic risk</header>
<subsection commented="no" display-inline="no-display-inline" id="H8D8013DD75C046B2924D56B84F2B5D14"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6B4A265ABE1B49DC85B6F63FE63F736A"><enum>(b)</enum><header display-inline="yes-display-inline">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 holding
company subject to stricter standards under this title, shall consult with the
Federal financial regulatory agency for any such subsidiary. With respect to
any requirements under this section that is likely to have a significant effect
on an insurance company, the Council shall consult with the Federal Insurance
Office.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA6B4567EB67F4E5481DACAC492CA69C5"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA2BB5750C8E428EBCDAE26AE8765EA1"><enum>(1)</enum><text display-inline="yes-display-inline">the amount and nature of the company’s
financial assets;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H13160925D36F445590D5B18DEDA914E9"><enum>(2)</enum><text display-inline="yes-display-inline">the amount and nature of the company’s
liabilities, including the degree of reliance on short-term funding;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF1AF7C274058448FA0C0B78D86645FD0"><enum>(3)</enum><text display-inline="yes-display-inline">the extent and nature of the company’s
off-balance sheet exposures;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9BCDA86AA9804C8E9A524203E576D864"><enum>(4)</enum><text display-inline="yes-display-inline">the company’s reliance on leverage;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB1F01F2D4F494B9DA3DC8C86B99C295C"><enum>(5)</enum><text display-inline="yes-display-inline">the extent and nature of the company’s
transactions, relationships, and interconnectedness with other financial and
non-financial companies;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA9B8611C6C624F1F92699C6B45B25456"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE32243A04FA649A384AC7B256558C41E"><enum>(7)</enum><text display-inline="yes-display-inline">the scope, nature, size, scale,
concentration, interconnectedness and mix of the company’s activities;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0C56C4DF03E4C1E8B4D88D60BF798B4"><enum>(8)</enum><text display-inline="yes-display-inline">the extent to which prudential regulations
mitigate the risk posed; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF2EBF84BBE34FED8A5E887912D984FF"><enum>(9)</enum><text display-inline="yes-display-inline">any other factors identified that the
Council determines appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA3042D9663C0454AA35D8116C4BC3561"><enum>(d)</enum><header display-inline="yes-display-inline">Mitigatory actions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF6C636DC49944293AF8986AB2D822F40"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Mitigatory action may include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF4DCF860156B4E649C83BF78E85F772E"><enum>(A)</enum><text display-inline="yes-display-inline">modifying the stricter prudential standards
imposed pursuant to section 1104(a);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA50886A27DF44F8BB04F1E555E4DD9BB"><enum>(B)</enum><text display-inline="yes-display-inline">terminating 1 or more activities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H282051E8E1CD46609222CA1F9B7EC2C5"><enum>(D)</enum><text display-inline="yes-display-inline">limiting the ability to merge with,
acquire, consolidate with, or otherwise become affiliated with another
company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H17DE42ECAF974FA9984A361723F00AAF"><enum>(E)</enum><text display-inline="yes-display-inline">restricting the ability to offer a
financial product or products; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8FC3E140B4424DA58C282C94AB94B197"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE40733BCF2124FE6AD73BE7D0FC21328"><enum>(2)</enum><header display-inline="yes-display-inline">International competitiveness
considerations</header><text display-inline="yes-display-inline">In making any
decision pursuant to paragraph (1), the Council shall consider—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6A99E962E6494A75A4830151A7A331FB"><enum>(A)</enum><text display-inline="yes-display-inline">the need to maintain the international
competitiveness of the United States financial services industry; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H87372A3ECB534C0DA3B196A3F9A7EF20"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A64FF05ABF94330B36470CF0809FAB9"><enum>(e)</enum><header display-inline="yes-display-inline">Due process</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6F7CC07D505D418C8E277E9876316154"><enum>(1)</enum><header display-inline="yes-display-inline">Notice and hearing</header><text display-inline="yes-display-inline">The Council shall give notice to a
financial holding company subject to stricter standards, and opportunity for
hearing if requested, that the financial holding company subject to stricter
standards 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 commented="no" display-inline="no-display-inline" id="HB51D82FCCD29418D90348A2818DBADB9"><enum>(2)</enum><header display-inline="yes-display-inline">Notice</header><text display-inline="yes-display-inline">The Council shall notify the financial
holding company subject to stricter 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 commented="no" display-inline="no-display-inline" id="H5E290D0B7DB846D991A8FF1DC95626AA"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEDA165FC3EC4456D8E2CF62540622030"><enum>(4)</enum><header display-inline="yes-display-inline">Approval or amendment of the
plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB45C7388EE5346EE80D6D1624DDC0FB0"><enum>(5)</enum><header display-inline="yes-display-inline">Effect of plan approval</header><text display-inline="yes-display-inline">The Council shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H40A422C3EF5B47A69E7769AEAE0EB93E"><enum>(f)</enum><header display-inline="yes-display-inline">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. The aforementioned amounts
shall be indexed to inflation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFDED77E9137B4E6182D10F015244B990"><enum>(g)</enum><header display-inline="yes-display-inline">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 this section 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 commented="no" display-inline="no-display-inline" id="H2AE58A4E61E749D3AAC3164B862DB30A"><enum>(h)</enum><header display-inline="yes-display-inline">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)(2), 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 pursuant to subsection
(e)(5). 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><subsection commented="no" display-inline="no-display-inline" id="H40C667D9ECC34C1393A084BCE7F78498"><enum>(i)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">Nothing in subsection (h) shall be
construed as limiting the authority of a Federal financial regulatory agency to
take action with respect to a financial company subject to the jurisdiction of
such agency pursuant to applicable law other than this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H718EA8A535654CF5BF5C121E497AE280" section-type="subsequent-section"><enum>1106.</enum><header display-inline="yes-display-inline">Subjecting activities or practices to
stricter prudential standards for financial stability purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="HEADCD16F5DFD415F870BFEB1C1A55E96"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H675F366973074DEE914D7056917A3E8B"><enum>(b)</enum><header display-inline="yes-display-inline">Periodic review of activity
identifications</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4A8523711C084541B4BB8C463C7A09F8"><enum>(1)</enum><header display-inline="yes-display-inline">Submission of assessment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF5D40EDA70A046A8876BE7DDA2D4BE91"><enum>(2)</enum><header display-inline="yes-display-inline">Review and recision</header><text display-inline="yes-display-inline">The Council shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H358881B187F5426D86F38CE8AE93B82A"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81BD43F55C6D4E11B27EC969F676F442"><enum>(c)</enum><header display-inline="yes-display-inline">Procedure for subjecting or ceasing to
subject an activity or practice to stricter prudential standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE60344C879424DF39E28A48DD7A63B83"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H792DD5F91F1647EF85997C368E21AF0D"><enum>(2)</enum><header display-inline="yes-display-inline">Notice and opportunity for consideration of
written materials</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H19BA0E7EAC9A4471A18EF4A1358F2364"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFFB068BBACA24B96B68C93BF46D802F5"><enum>(B)</enum><header display-inline="yes-display-inline">Emergency exception</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56DD460502AC4D3BBEF76D07D942DCDF"><enum>(3)</enum><header display-inline="yes-display-inline">Form of decision</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE74F4A259CD4F1CAE2E96ADAC1EB23C" section-type="subsequent-section"><enum>1107.</enum><header display-inline="yes-display-inline">Stricter regulation of activities and
practices for financial stability purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="H76300C56406E4CFEA0F143270C819E2F"><enum>(a)</enum><header display-inline="yes-display-inline">Prudential Standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB621A584AE544F4B905250F7E76E5B83"><enum>(1)</enum><header display-inline="yes-display-inline">Board authority to recommend</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE38ADEA426014959B82676237A4B3565"><enum>(A)</enum><header display-inline="yes-display-inline">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, as agent of the Council, shall recommend
prudential standards to the appropriate primary financial regulatory agencies
to apply to such identified activities and practices.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H50E7D12953DF46AD9E09AA71BFAFFFC1"><enum>(B)</enum><header display-inline="yes-display-inline">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). With respect to any standard that is likely to have a significant
effect on insurance companies, the Board also shall consult with the Federal
Insurance Office.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H62D6AC1FFC104C13A446C411E6F5C0EC"><enum>(2)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">The actions recommended under paragraph
(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0D634CD343D54596B27909CAAA0772CC"><enum>(A)</enum><text display-inline="yes-display-inline">shall be designed to maximize financial
stability, taking costs to long-term financial and economic growth into
account; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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><paragraph commented="no" display-inline="no-display-inline" id="H11CE3B485B9E4CB0AC76B45C8095BFDE"><enum>(3)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">The standards recommended by the Board and
adopted by a primary financial regulatory agency pursuant to this section shall
not apply to activities that a foreign financial parent conducts solely outside
the United States if such activities are conducted solely by a company or other
operating entity that is located outside the United States.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8D2C9CCC139A439AA2C2F62DE503C1F0"><enum>(b)</enum><header display-inline="yes-display-inline">Implementation of recommended
standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H23465C590E1041E3877DBB668737D763"><enum>(1)</enum><header display-inline="yes-display-inline">Role of primary financial regulatory
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H932DD84D8EE441B3BB8F90E2F141D9C3"><enum>(2)</enum><header display-inline="yes-display-inline">Imposition of standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE1D78731274C4E528B2E94173E72EC71"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H019573578BE04002BB66904AD41FE4B7" section-type="subsequent-section"><enum>1108.</enum><header display-inline="yes-display-inline">Effect of rescission of
identification</header>
<subsection commented="no" display-inline="no-display-inline" id="H96A0019C831041EEA53C86376A5A6766"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HABB469AADA6E40BCB94F00C8FC903D14"><enum>(b)</enum><header display-inline="yes-display-inline">Determination of primary financial
regulatory agency to continue</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFDB6AF82E3E3476B9D99D38BEAF018FB" section-type="subsequent-section"><enum>1109.</enum><header display-inline="yes-display-inline">Emergency financial stabilization</header>
<subsection commented="no" display-inline="no-display-inline" id="HA9EA500B99E84BE4A55002E42AE31B89"><enum>(a)</enum><header display-inline="yes-display-inline">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 solvent depository institution holding
companies (including any affiliates thereof), 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 commented="no" display-inline="no-display-inline" id="H7C37B2B321764C4B99952C812401E940"><enum>(b)</enum><header display-inline="yes-display-inline">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. Such terms and
conditions may include the Corporation requiring collateral as a condition of
any such guarantee.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDE57701B658B404D91D8E9FDD52003B6"><enum>(c)</enum><header display-inline="yes-display-inline">Cap for guaranteed amount</header>
<paragraph commented="no" display-inline="no-display-inline" id="H24605AF77CD845AC8D165BD1754705C2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In connection with any program established
pursuant to subsection (a) and subject to paragraph (2), the Corporation may
not have guaranteed debt outstanding at any time of more than $500,000,000,000
(as indexed to reflect growth in assets of insured depository institutions and
depository institution holding companies as determined by the
Corporation).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59817ECA79884F5C9CA22DDE4300FC04"><enum>(2)</enum><header display-inline="yes-display-inline">Additional debt guarantee
authority</header><text display-inline="yes-display-inline">If the Corporation,
with the concurrence of the Council and the Secretary (in consultation with the
President), determines that the Corporation must guarantee debt in excess of
$500,000,000,000 (as indexed pursuant to paragraph (1)) to prevent systemic
financial instability, the Corporation may transmit to the Congress a request
for authority to guarantee debt in excess of $500,000,000,000 (as indexed
pursuant to paragraph (1)). Such request shall be considered granted by
Congress upon adoption of a joint resolution approving such request. Such joint
resolution shall be considered in the Senate under expedited procedures.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB2B67044209946CEA6B9020951458723"><enum>(d)</enum><header display-inline="yes-display-inline">Funding</header>
<paragraph commented="no" display-inline="no-display-inline" id="H275BE43557D74832A9D5AEBBC8A4D617"><enum>(1)</enum><header display-inline="yes-display-inline">Administrative expenses and cost of
guarantees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE92CCA829C764CDE948D80902A8F6FDD"><enum>(2)</enum><header display-inline="yes-display-inline">Fees and other charges</header><text display-inline="yes-display-inline">The Corporation shall charge fees or other
charges to all participants in such program established pursuant to this
section to offset projected losses and administrative expenses. 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 commented="no" display-inline="no-display-inline" id="H13107E1329A14AC8940ABFC529DE854A"><enum>(3)</enum><header display-inline="yes-display-inline">Excess funds</header><text display-inline="yes-display-inline">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 Dissolution Fund established pursuant
to section 1609(n).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED05DFDBD1954D30AC3527298981B399"><enum>(4)</enum><header display-inline="yes-display-inline">Authority of corporation</header><text display-inline="yes-display-inline">For purposes of conducting a program
established pursuant to this section, the Corporation—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF963B18B03394715A28F94F71C0763D7"><enum>(A)</enum><text display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="HCF2140A13ED14353A83AFCF7D8409AFF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC542483BCFAA477EAEA8F1B09518CD03"><enum>(C)</enum><text display-inline="yes-display-inline">may not borrow funds from the Systemic
Dissolution Fund established pursuant to section 1609(n).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB109E61EBC2B45AFB3DFBED0E94BA65E"><enum>(5)</enum><header display-inline="yes-display-inline">Back-up special assessment</header><text display-inline="yes-display-inline">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 solely on participants in the program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6B7A3AEF0FDB49429D29B9523E74AF93"><enum>(e)</enum><header display-inline="yes-display-inline">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 entity 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 commented="no" display-inline="no-display-inline" id="H4A3538DAAF694D6DA496B9BA48F6E9C1"><enum>(f)</enum><header display-inline="yes-display-inline">Sunset of corporation’s
authority</header><text display-inline="yes-display-inline">The Corporation’s
authority under subsections (a) and (d) and the authority to borrow funds from
the Treasury under section 1609(o) shall expire on December 31, 2013.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H443F8FAB3CF64E70A725ED0DD9DAEB50"><enum>(g)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">For purposes of this section, a guarantee
of deposits held by insured depository institutions shall not be treated as a
debt guarantee program.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBAF6CC64F18548E2A1FA3A26AFC54B96"><enum>(h)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H39AAFEB42F794EB79D2290F24684F71D"><enum>(1)</enum><header display-inline="yes-display-inline">Corporation</header><text display-inline="yes-display-inline">The term <term>Corporation</term> means the
Federal Deposit Insurance Corporation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H545A92F1A15F4015BE14790D2AB0B551"><enum>(2)</enum><header display-inline="yes-display-inline">depository institution holding
company</header><text display-inline="yes-display-inline">The term
<quote>depository institution holding company</quote> has the meaning given the
term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD241C796CABA45D19DBC443BB81F2672"><enum>(3)</enum><header display-inline="yes-display-inline">Insured depository
institution</header><text display-inline="yes-display-inline">The term
<term>insured depository institution</term> has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC0CC2343BE6E4ADD90F9FD0CB46D96DD"><enum>(4)</enum><header display-inline="yes-display-inline">Solvent</header><text display-inline="yes-display-inline">The term <term>solvent</term> means assets
are more than the obligations to creditors.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4EF60E95332A4B2C83C3D3FD47C99322" section-type="subsequent-section"><enum>1110.</enum><header display-inline="yes-display-inline">Additional related amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="HA583DC72FF0F4B89A6046C73B3C60B2A"><enum>(a)</enum><header display-inline="yes-display-inline">Federal deposit insurance act related
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB64440A96ECE4FAB85328E0249904B90"><enum>(1)</enum><header display-inline="yes-display-inline">Suspension of parallel federal deposit
insurance act authority</header><text display-inline="yes-display-inline">Effective upon the date of the enactment of
this section through December 31, 2013, the Corporation may not exercise its
authority under section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(i)) to establish any widely-available debt guarantee
program for which section 1109 would provide authority.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4EC6C378340A4CDE82ECF9C8DAAB7DE1"><enum>(2)</enum><header display-inline="yes-display-inline">Federal deposit insurance act authority
preserved</header><text display-inline="yes-display-inline">Effective December
31, 2013, the Corporation shall have the same authority pursuant to section
13(c)(4)(G)(i) of the Federal Deposit Insurance Act as the Corporation had
prior to the date of enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H85BDAC87FA34450CB0E1FFBDF1E3C163"><enum>(b)</enum><header display-inline="yes-display-inline">Effect of default on an fdic
guarantee</header><text display-inline="yes-display-inline">If an insured
depository institution or depository institution holding company participating
in a program under section 1109 or any participant in a debt guarantee program
established pursuant to section 13(c)(4)(G)(i) of the Federal Deposit Insurance
Act defaults on any obligation guaranteed by the Corporation after the date of
enactment of this Act, the Corporation may—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB466CA49EAC44A68B9DCE56AF5E8E45A"><enum>(1)</enum><text display-inline="yes-display-inline">appoint itself as receiver for the insured
depository institution that defaults;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A56279BA2CD4B55AB7FBEED6EEEF49F"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to any other participating
company that is not an insured depository institution that defaults—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEBF5F7F67C87466E806C7BF424B3A1B5"><enum>(A)</enum><text display-inline="yes-display-inline">require consideration of whether a
determination shall be made as provided in section 1603 to resolve the company
under subtitle G; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H90EAF24275B447C59BFDFB02868BDD1A"><enum>(B)</enum><text display-inline="yes-display-inline">if the Corporation is not appointed
receiver pursuant to subtitle G within 30 days of the date of default, require
the company to file a petition for bankruptcy under section 301 of title 11,
United States Code, or file a petition for bankruptcy against the company under
section 303 of title 11, United States Code.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H453C622AB3E043F6AF9B98A342D00646"><enum>(c)</enum><header display-inline="yes-display-inline">Authority to file involuntary petition for
bankruptcy</header><text display-inline="yes-display-inline">Section 303 of
title 11, United States Code, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H8F04669DBB864262898FFE6794C826F9" style="USC">
<subsection commented="no" display-inline="no-display-inline" id="H18087831AEEF4B35A778432AAE1D1BFB"><enum>(m)</enum><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b), an
involuntary case may be commenced by the Federal Deposit Insurance Corporation
against a depository institution holding company as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813) or other company participating
in a guarantee program established by the Corporation on the ground that the
company has defaulted on a debt or obligation guaranteed by the
Corporation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC1E623C3B13946649B945039E7CB7FFB"><enum>(d)</enum><header display-inline="yes-display-inline">Bankruptcy priority for defaults on debt
guaranteed pursuant to section 1109</header><text display-inline="yes-display-inline">Section 507(a)(9) of title 11, United
States Code, is amended by inserting before the period at the end the
following: <quote>and allowed unsecured claims based upon any debt to the
Federal Deposit Insurance Corporation that arose prior to the commencement of
the case under this title, as a result of the debtor’s default on a guarantee
provided by the Corporation pursuant to section 1109 of the Financial Stability
Improvement Act of 2009 or the Federal Deposit Insurance Act, under a program
established by the Corporation after the date of enactment of the Financial
Stability Improvement Act of 2009</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC0229FB150164CFC867872954288070C" section-type="subsequent-section"><enum>1111.</enum><header display-inline="yes-display-inline">Corporation may receive warrants when
paying or risking taxpayer funds</header>
<subsection commented="no" display-inline="no-display-inline" id="HFA25DADD511B408BBCD7B055D0B7AE51"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In connection with any payment, credit
extension, or guarantee or any commitment under section 1109 or 1604, the
Corporation may obtain from the insured depository institution, depository
institution holding company (including any affiliates thereof), or covered
financial company, as the case may be—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H17F61323031F445998228152BBE34C30"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of an insured depository
institution, depository institution holding company (including any affiliates
thereof), or covered 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 commented="no" display-inline="no-display-inline" id="H73A0D4DB90FF4BC2A82E6AB609959A67"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of any insured depository
institution, depository institution holding company (including any affiliates
thereof), or covered 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 commented="no" display-inline="no-display-inline" id="H1F68046FAF494582A99193F5C90FAE1F"><enum>(b)</enum><header display-inline="yes-display-inline">Terms and conditions</header><text display-inline="yes-display-inline">The terms and conditions of any warrant or
senior debt instrument required under subsection (a) shall meet the following
requirements:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8D66431914DE4BACAFE1B9F2CEC29DB6"><enum>(1)</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="yes-display-inline">Such terms and conditions shall, at a
minimum, be designed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEFAB5A27E1D2474785ECE957E6F4EEA1"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H354D45AFC7E14618B7F22B2E16998585"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H18AC7146888C461AAE0BF9A685D7A27A"><enum>(2)</enum><header display-inline="yes-display-inline">Authority to sell, exercise, or
surrender</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD8460B64E6943609E2F5F2E48DE9879"><enum>(3)</enum><header display-inline="yes-display-inline">Conversion</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1515F926960C40B89D80BC5A11BC6367"><enum>(4)</enum><header display-inline="yes-display-inline">Protections</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CBE3D618E7C4854901625455E430517"><enum>(5)</enum><header display-inline="yes-display-inline">Exercise
price</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17487536F19041E499AB55F311180BA8"><enum>(6)</enum><header display-inline="yes-display-inline">Sufficiency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9EC184F3B997416EBD528EBA4A9746B8"><enum>(c)</enum><header display-inline="yes-display-inline">Exceptions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB44C9BD43B414522AF4AF364AB586A26"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC8297970D629494E91A788F63841B1E5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C790EF34F0F4CC6AAB52E0A201B545E" section-type="subsequent-section"><enum>1112.</enum><header display-inline="yes-display-inline">Examinations and enforcement actions for
insurance and resolutions purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="H0FB3A5F70A5048B5B6ED4321E32A2DA0"><enum>(a)</enum><header display-inline="yes-display-inline">Examinations for insurance and resolutions
purposes</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F21BC8928DF4674A06BC97A4CA32A54"><enum>(b)</enum><header display-inline="yes-display-inline">Enforcement authority</header><text display-inline="yes-display-inline">Section 8(t) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(t)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7B9221BA95C84CF18FD828189ABF9295"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC3661BC187814A868828B6F607B11F19"><enum>(A)</enum><text display-inline="yes-display-inline">at the end of subparagraph (B), by striking
<quote>or</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD34D38F0FD48438387C21CF09EB14453"><enum>(B)</enum><text display-inline="yes-display-inline">at the end of subparagraph (C), by striking
the period and inserting <quote>; or</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD8FD1658AD4548EEAD6968A9FDECA179"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HDFE7E60874004692B108DAB2671AD0B4" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H830D83DAECCD47AF9D80C6D551118BAF"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H85B02CF894014709BD5D235FDED7ACE5"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H32ABEBC721804B0DB16249E109042F2E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H561FEA0A1FEB4520B1FD376A2D8EC9DA"><enum>(6)</enum><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4D2B7CACCBE846F190B6B95B223058FA"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC9768B777E9C4BE7B72CDEC3FC6B490A"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H82D5E997D60A4BE4909AC08416B75DBF" section-type="subsequent-section"><enum>1113.</enum><header display-inline="yes-display-inline">Study of the effects of size and complexity
of financial institutions on capital market efficiency and economic
growth</header>
<subsection commented="no" display-inline="no-display-inline" id="H972CFF80EA27407E91615F8643A8B914"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCAD2452CE8E04BDBB8C9D56A57EF8A52"><enum>(1)</enum><text display-inline="yes-display-inline">explicit or implicit limits on the maximum
size of banks, bank holding companies, and other large financial
institutions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7591C002C0AE4F60B02583EAB00F3D76"><enum>(2)</enum><text display-inline="yes-display-inline">limits on the organizational complexity and
diversification of large financial institutions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H88BEE649B265468598C1B2AD2A9C7396"><enum>(3)</enum><text display-inline="yes-display-inline">requirements for operational separation
between business units of large financial institutions in order to expedite
resolution in case of failure;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEEC1DABBBD7C42FFABC126FD79F6EC2C"><enum>(4)</enum><text display-inline="yes-display-inline">limits on risk transfer between business
units of large financial institutions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDCE1EBF859A6418C9AA040225D203070"><enum>(5)</enum><text display-inline="yes-display-inline">requirements to carry contingent capital or
similar mechanisms;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA53BF7F7AF744C9FA3537DB3851894D2"><enum>(6)</enum><text display-inline="yes-display-inline">limits on commingling of commercial and
financial activities by large financial institutions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF31533BC120459EBEF7B243396B6073"><enum>(7)</enum><text display-inline="yes-display-inline">segregation requirements between
traditional financial activities and trading or other high-risk operations in
large financial institutions; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCD94B0A19BCC48139D101ACB4DF35158"><enum>(8)</enum><text display-inline="yes-display-inline">other limitations on the activities or
structure of large financial institutions that may be useful to limit systemic
risk.</text>
</paragraph><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="H2ED9CA3CC8A24E099CB6353E39426885"><enum>(b)</enum><header display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="HD9F658E9BFFE4808BACDFCA58516FAEF" section-type="subsequent-section"><enum>1114.</enum><header display-inline="yes-display-inline">Exercise of Federal Reserve
authority</header>
<subsection commented="no" display-inline="no-display-inline" id="H0BC3026B2E7B4645A4358AD1A6EB4326"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2717C873DEEA465AAB1311CF6C4E6A0C"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3075EE098D324797803B0AD3C633D6A3" section-type="subsequent-section"><enum>1115.</enum><header display-inline="yes-display-inline">Stress tests</header>
<subsection commented="no" display-inline="no-display-inline" id="H5460274947DE4F8294FB877064A19450"><enum>(a)</enum><text display-inline="yes-display-inline">A financial holding company subject to
stricter standards shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDAF1B60F15B745C4855E583C303A57B7"><enum>(1)</enum><text display-inline="yes-display-inline">conduct quarterly stress tests; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBC21299B76544FD6B898688BF661972C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD80ACC673D2240FABDB369073433DDC6"><enum>(1)</enum><text display-inline="yes-display-inline">conduct semiannual stress tests; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F58AB2A415A47E58CFF53E9C876E2F0"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C026D06DECD4709B15E7C6DD58FB492"><enum>(c)</enum><text display-inline="yes-display-inline">A stress test under this section shall
provide for testing under each of the following sets of conditions:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA6116A4CAADA439CA0E2EB0C20E73F9B"><enum>(1)</enum><text display-inline="yes-display-inline">Baseline.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB4EB6467136040FFA834B44AA871BB92"><enum>(2)</enum><text display-inline="yes-display-inline">Adverse.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3D80022A4A3647B08490EAB19CC779FC"><enum>(3)</enum><text display-inline="yes-display-inline">Severely adverse.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7DFED5AF33FD407CB477B5923FF371F3"><enum>(d)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB2392464C36D47149BE2B9E4D81FF610" section-type="subsequent-section"><enum>1116.</enum><header display-inline="yes-display-inline">Contingent Capital</header>
<subsection commented="no" display-inline="no-display-inline" id="HFAB6B5C449234DE1843C7D0534D13184"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Board, in coordination with the
appropriate primary financial regulatory agency, may, after notice and
opportunity for comment, 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 commented="no" display-inline="no-display-inline" id="HC51AB55FE74B4D219633B246BB636F91"><enum>(1)</enum><text display-inline="yes-display-inline">the Board determines that a specified
financial company fails to meet prudential standards established by the Board;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B8D4030AB514B1382D8A663BB72F30B"><enum>(2)</enum><text display-inline="yes-display-inline">the Board has determined that threats to
United States financial system stability make such a conversion
necessary.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H37AC1E16C3ED4AB0842D18A20EF2069F"><enum>(b)</enum><header display-inline="yes-display-inline">Factors to consider</header><text display-inline="yes-display-inline">In establishing regulations under this
section, the Board shall consider—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE368021E72FB4412865244ECC3E4C0B0"><enum>(1)</enum><text display-inline="yes-display-inline">an appropriate transition period for
implementation of a conversion under this section;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA5BA82E1DD84DF0967917682BEC5BA0"><enum>(2)</enum><text display-inline="yes-display-inline">capital requirements applicable to the
specified financial company and its subsidiaries; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE023F67BF16945708A2875A396058EFD"><enum>(3)</enum><text display-inline="yes-display-inline">any other factor that the Board deems
appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H25CC7138C0F0496C865A8B04941BBC5B"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE304C1E2CED34CAFA77F6B45EA1F1A04"><enum>(1)</enum><text display-inline="yes-display-inline">an evaluation of the characteristics and
amounts of convertible debt that should be required, including possible tranche
structure;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE7C779B75DEF46BCB3F419E630F3D4AE"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H00909868E36D4C45832CC7D9AAB289A6"><enum>(3)</enum><text display-inline="yes-display-inline">an estimate of the costs of carrying
contingent capital;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DEDD9655AC7430DA2DFD139CA1CF539"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC05068D78CB6412B84FD101E036A4D44"><enum>(5)</enum><text display-inline="yes-display-inline">recommendations for implementing
legislation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFA10D41587534721B0EC108323B80EDD"><enum>(d)</enum><header display-inline="yes-display-inline">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
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 commented="no" display-inline="no-display-inline" id="H84D7580CFD1E47AFB88A8C662093657D" section-type="subsequent-section"><enum>1117.</enum><header display-inline="yes-display-inline">Restriction on proprietary trading by
designated financial holding companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H18612BC7F5774D7E8B9C580E70AC56CF"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF8D1EC6B4BFB4E3BB4B32C2BE62F9481"><enum>(b)</enum><header display-inline="yes-display-inline">Exceptions permitted</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFA4522247F84CCC88E5F1F571449A8B"><enum>(1)</enum><text display-inline="yes-display-inline">making a market in securities issued by
such company;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8465CB054FD4D15ACAF8B113EC194DC"><enum>(2)</enum><text display-inline="yes-display-inline">hedging or managing risk;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB165965DAE2146A3A2DD51ACF56729F0"><enum>(3)</enum><text display-inline="yes-display-inline">determining the market value of assets of
such company; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC97B00A849A842118813A72666863906"><enum>(4)</enum><text display-inline="yes-display-inline">propriety trading for such other purposes
allowed by the Board by rule.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H04C23918BB6A4F2CAE2399EC7DDA6B8C"><enum>(c)</enum><header display-inline="yes-display-inline">Rulemaking authority</header><text display-inline="yes-display-inline">The primary financial regulatory agencies
of banks and bank holding companies shall jointly issue regulations to carry
out this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H681C75405E7C418F8E54C07EEB2B3BD8"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B69501492674EC4B7D12CF7E8B3348E"><enum>(e)</enum><header display-inline="yes-display-inline">Proprietary trading defined</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD66C84D7AEDD4B958DF33CE6A730B1F8" section-type="subsequent-section"><enum>1118.</enum><header display-inline="yes-display-inline">Rule of construction</header>
<subsection commented="no" display-inline="no-display-inline" id="HEAF34701FB7D4090B401D93D3FEAAFE9"><enum>(a)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-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>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB758E223AD7F4BD296479DFF98D59892"><enum>(b)</enum><header display-inline="yes-display-inline">Agent responsibilities</header><text display-inline="yes-display-inline">For purposes of this subtitle, the term
<quote>agent</quote> means the Board acting under section 1103(c) and
coordinating with the Council in exercising authority under sections 1104 and
1107.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3DD0738E8FE5440AA6327E2B5BE00C64" section-type="subsequent-section"><enum>1119.</enum><header display-inline="yes-display-inline">Antitrust savings clause</header><text display-inline="no-display-inline">Nothing in this subtitle shall be construed
to modify, impair, or supercede the operation of any of the antitrust laws. For
purposes of the preceding sentence, the term <quote>antitrust laws</quote> has
the 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 relates to unfair methods of
competition.</text>
</section></subtitle><subtitle commented="no" id="HB86AB7B76A01404389D5685BC1F67DD3" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Improvements to supervision and regulation
of Federal depository institutions </header>
<section commented="no" display-inline="no-display-inline" id="HDDA08482BF5041B58B23924739528709" section-type="subsequent-section"><enum>1201.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H51971E267B81404495D8EE590118A5FC"><enum>(1)</enum><header display-inline="yes-display-inline">Board of governors</header><text display-inline="yes-display-inline">The term <term>Board of Governors</term>
means the Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H186F13BF297F46868506201B5F36C4D4"><enum>(2)</enum><header display-inline="yes-display-inline">Corporation</header><text display-inline="yes-display-inline">The term <term>Corporation</term> means the
Federal Deposit Insurance Corporation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H52907609459642DD9F1D29D32F2B129E"><enum>(3)</enum><header display-inline="yes-display-inline">Office of the comptroller of the
currency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H57E3B851D3E54D67BDDDACFB719FE8FB"><enum>(4)</enum><header display-inline="yes-display-inline">Office of thrift supervision</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5481851BFB7942189F47374D07305541"><enum>(5)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of the Treasury.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9982E4A811194C108E9DBFA6AE7DA225"><enum>(6)</enum><header display-inline="yes-display-inline">Transfer date</header><text display-inline="yes-display-inline">The term <term>transfer date</term> has the
meaning provided in section 1205.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4370FA79E29F43318CF4F2B590374EDF"><enum>(7)</enum><header display-inline="yes-display-inline">Certain other terms</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1EDC9ED526D042E8BC6BFE87AA278CDC" section-type="subsequent-section"><enum>1202.</enum><header display-inline="yes-display-inline">Amendments to the Home Owners’ Loan Act
relating to transfer of functions</header>
<subsection commented="no" display-inline="no-display-inline" id="HFD77C45FFCDB41B296D9D94E9763089C"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 2</header><text display-inline="yes-display-inline">Section 2 of the Home Owners’ Loan Act (12
U.S.C. 1462) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H507CA174724D4C9297FC4F1C36D4113C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H16F39E86E04F4213BBC0DA9528671F79" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD2A5EC07E6EA415A819F592D4843D2AB"><enum>(1)</enum><header display-inline="yes-display-inline">Board of governors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H4FDD5C09DBC341CA8BAF787308233130"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 3</header><text display-inline="yes-display-inline">Section 3 of the Home Owners’ Loan Act (12
U.S.C. 1462a) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7DB8835CB71E4AB9851441B11F5BE809"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (a) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HCC48A56025E74172A502D594DA5C9E68" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6487EFA2D82E445E8A9A9DAE94F3D174"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of division of thrift
supervision</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC141B251B6E7478582BEFA4A9C6F7DA9"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE39F085567EC4A94B2AE790BD4766A30"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H72CD37027D0D41278CF08C72BCECAEE3" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEDB848583D3F4F9A93404A6F9487F1A6"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H807F580C6E3F4849924F782BBA010E2E"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote> and inserting <quote>Comptroller of the
Currency</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4000F06511354BF1BC42E2FF8827FEBA"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraphs (3) and (4);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H494F203B44F74BC591211654DDD6568E"><enum>(3)</enum><text display-inline="yes-display-inline">by striking subsections (c), (d), and (e)
and inserting the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H41715BB813F6451984E17265B67977DE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H9B50F8F4DCE64DB58BBEBF612E127BB1"><enum>(c)</enum><header display-inline="yes-display-inline">Powers of the comptroller of the
currency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H966A988752144787BBC773F5BFEC79F8"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating subsections (f) and (i) as
subsections (d) and (e), respectively;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE81033A960544DE38DFAE24007C06C20"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6E3BC86B4C184737992B5B1FA197404E"><enum>(6)</enum><text display-inline="yes-display-inline">by striking subsections (g), (h), and (j);
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H558CCE9463674F459D430FBB08B33F58"><enum>(7)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA9FB9729DF940E2A06F5EEC65D55A46"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to section 4</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H292A6A5A70B944A9A6C23335F5C826B5"><enum>(d)</enum><header display-inline="yes-display-inline">Amendments to section 5</header>
<paragraph commented="no" display-inline="no-display-inline" id="H23E5121C2DA24ACC9413936EE50AC165"><enum>(1)</enum><header display-inline="yes-display-inline">Universal</header><text display-inline="yes-display-inline">Section 5 of the Home Owners’ Loan Act (12
U.S.C. 1464) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1764BA3E0DF84A4383DE28411AC8AA87"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H515DEDD2E52348CAA30A6ED2D744C146"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Director’s</quote> each
place such term appears and inserting <quote>Comptroller of the
Currency’s</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE446D0FB249B4B1B8A7966A4D2E4CB01"><enum>(2)</enum><header display-inline="yes-display-inline">Specific provisions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCE6F1E1AD9DF4A89994F880F81C163E0"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD565F40181847DF9C58635828A03815"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBA11E349A410460AA26FF5177B75B583"><enum>(e)</enum><header display-inline="yes-display-inline">Amendments to sections 8 and
9</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD4A490CDFB4A434190AC8954EAD97FA3"><enum>(f)</enum><header display-inline="yes-display-inline">Technical and conforming
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA523D04B26A5483988C49CFF14D47C62"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A670C6A496D49538CFE830B5B657F13"><enum>(2)</enum><header display-inline="yes-display-inline">Section 5</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB63684A06E6E4890B1A454BF105ABD86"><enum>(g)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">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 bold="off" level="section">Sec. 3. Division of Thrift
Supervision.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5552589DE68247EBAF3AF40776E59031" section-type="subsequent-section"><enum>1203.</enum><header display-inline="yes-display-inline">Amendments to the revised statutes</header>
<subsection commented="no" display-inline="no-display-inline" id="HD06945F04B164BB7863AD324AD39ED40"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to section 324</header><text display-inline="yes-display-inline">Section 324 of the Revised Statutes of the
United States (12 U.S.C. 1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC202A2A3D11B4530B5CAA4AA63E0B6C8" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H0FEB2020BEAE411BB09F1E91BBA8732B" section-type="subsequent-section"><enum>324.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0D445775E69848E0AAE729BE6CF8E236"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 327</header><text display-inline="yes-display-inline">Section 327 of the Revised Statutes of the
United States (12 U.S.C. 4) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H890EEF1EDCAC45D28FEA0961D8E0C3D2" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H78E9BAD86F9641C2874502172C054311" section-type="subsequent-section"><enum>327.</enum><header display-inline="yes-display-inline">Deputy comptrollers</header>
<subsection commented="no" display-inline="no-display-inline" id="HB12058A642EF40819F5A4FB6E425A103"><enum>(a)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall appoint
no more than 5 Deputy Comptrollers of the Currency—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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, and who shall coordinate with the
Office of Thrift Supervision pursuant to section 1211.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5C65A484FE0848A88A09FEE4D9B7D504"><enum>(b)</enum><header display-inline="yes-display-inline">Pay</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE3984BEB02D44A0182399D1B9D14B096"><enum>(c)</enum><header display-inline="yes-display-inline">Oath of office; Duties</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H171E4B51F6614F7EB95C71BB970AC515"><enum>(d)</enum><header display-inline="yes-display-inline">Service as acting comptroller</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE620B6BB48FF47098B81AEED8BB8A526"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to section 329</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37B787DB0F9247F594D66B4035A8DD11"><enum>(d)</enum><header display-inline="yes-display-inline">Amendment to section 5240</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDEC82855C37345118BC3370807CA411D"><enum>(e)</enum><header display-inline="yes-display-inline">Amendment to section 5240</header><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H824E8AEA2C904CB592FF1BD7CFC3B4B9"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Subsection (b) shall
take effect on the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H6BF351D951E54EB5A9E70E5010BCD5E9" section-type="subsequent-section"><enum>1204.</enum><header display-inline="yes-display-inline">Power and duties transferred</header>
<subsection commented="no" display-inline="no-display-inline" id="H9700EA717AB94C31BF8E6206A427F073"><enum>(a)</enum><header display-inline="yes-display-inline">Director of the office of thrift
supervision</header>
<paragraph commented="no" display-inline="no-display-inline" id="H82E9AEAE58B24847BBC9A025F0CC9650"><enum>(1)</enum><header display-inline="yes-display-inline">Transfer of functions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H504B499376DA4DD3BEA8278D71CBDC36"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H60AF5FEAEFDE47449BE6AE3D3C8D0054"><enum>(3)</enum><header display-inline="yes-display-inline">Functions relating to supervision of state
savings associations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3334862AD14748058C8EEDD863779B92"><enum>(A)</enum><header display-inline="yes-display-inline">Transfer of functions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H94077F537A0C4A8E8390210C9E414D88"><enum>(B)</enum><header display-inline="yes-display-inline">Corporation’s authority</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HB57597848F6C4814B5B5F7252E7B0E48"><enum>(4)</enum><header display-inline="yes-display-inline">Functions relating to supervision of
savings and loan holding companies</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H34235B75CC49490593C61D5AE0617F52"><enum>(A)</enum><header display-inline="yes-display-inline">Transfer of functions</header><text display-inline="yes-display-inline">All functions of the Director of the Office
of Thrift Supervision relating to the supervision and regulation of Savings and
Loan Holding Companies are transferred to the Board.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D305E7E27A84980AAFC6C7DF8FEAE81"><enum>(B)</enum><header display-inline="yes-display-inline">Board authority</header><text display-inline="yes-display-inline">The Board 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 Savings and Loan Holding Companies.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEEA958C657F54D5F939168BEC727783F"><enum>(b)</enum><header display-inline="yes-display-inline">Appropriate federal banking
agency</header><text display-inline="yes-display-inline">Section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813) is amended in subsection
(q)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H07701D4B16F24DEDA7E5EE46D72AE926"><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="H9A83FDEBA48043FF8982D11F03E144CE" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H53FE6F4B997C4D96B7699CEDBEF0BE19"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8F8F2B47A144CE2899B864D34FB4D5C"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)(E), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6E102F5CDFAD4CB0B15A7B710A032F65"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (2)(F), by adding
<quote>and</quote> at the end after the semicolon;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H689B9E5D52524A5CB52DBD37C50926A6"><enum>(4)</enum><text display-inline="yes-display-inline">after paragraph (2)(F), by inserting the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HE3D496D778E44486AE94A2CF87B30F84" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H0400D6C5C7D84389A5F64AC3EC6A1EDC"><enum>(G)</enum><text display-inline="yes-display-inline">any savings and loan holding company and
any subsidiary of a savings and loan holding company (other than a savings
association);
and</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6142DFB5C501428EB6158FBF8C890E39"><enum>(5)</enum><text display-inline="yes-display-inline">by amending paragraph (3) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H765290B078A14F61837452FA79001979" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H532E50CEB5B24889908AF847CA4B9E8F"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA7369728AA340F0BBA560593DE6D813"><enum>(6)</enum><text display-inline="yes-display-inline">by striking paragraph (4).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6F23E0755EE54112BA04CEDE5A9FCF55"><enum>(c)</enum><header display-inline="yes-display-inline">Transfer of consumer financial protection
functions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9491A6D588134F939CD9E454EE0125AF"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Subsections (a) and (b)
shall become effective on the transfer date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H4544EB8C6C584DF9B22E082593B2EB2E" section-type="subsequent-section"><enum>1205.</enum><header display-inline="yes-display-inline">Transfer date</header>
<subsection commented="no" display-inline="no-display-inline" id="H5F9613242DC944E88AFC19D5E8DF9114"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H120A9D5D05764FA4B0EE23BB1BDADD0A"><enum>(b)</enum><header display-inline="yes-display-inline">Extension permitted</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFAC81F0CD4674BB290A1745709BBF4DE"><enum>(1)</enum><header display-inline="yes-display-inline">Notice required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA3C36EDC8C9D4137849CEC8624FCDB9B"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B0233245DBC43CBB8349F5776311A8A"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFCC2F80BC9D4F28AF3CD6C1D08F8E7C"><enum>(ii)</enum><text display-inline="yes-display-inline">an explanation of why an extension is
necessary for the orderly implementation of this subtitle; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H95D655CEB3144D83A023C411F90836B8"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H030ECE70EE4F4ED68C10AB41FAFC0A7D"><enum>(B)</enum><text display-inline="yes-display-inline">publishes notice of that designated later
date in the Federal Register.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC8892784E66B42D185B7DA2E284C42E9"><enum>(2)</enum><header display-inline="yes-display-inline">Extension limited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC679D8DB52274B8EA3D2D1A46FF9834F"><enum>(3)</enum><header display-inline="yes-display-inline">Effect on references to <quote>transfer
date</quote></header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4DFA5C0AF7944A1DADE2F460AC6AD9E9" section-type="subsequent-section"><enum>1206.</enum><header display-inline="yes-display-inline">Expiration of term of comptroller</header>
<subsection commented="no" display-inline="no-display-inline" id="H2FA6B00066C84E399ECD19A7546925C3"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE529D47742444D52A59A84614D6CA18A"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F0FC717B8714EEC80BA7C52EF8566A0" section-type="subsequent-section"><enum>1207.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1B9E20D43DF41FBB697D30169798E5B" section-type="subsequent-section"><enum>1208.</enum><header display-inline="yes-display-inline">Savings provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="H3A81034FDC6847ED92A19DC9B81C4783"><enum>(a)</enum><header display-inline="yes-display-inline">Office of thrift supervision</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE41C003120484BE0A4F68CC7060A1EE2"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB1533927F5E147FDB3F78F54FA58251F"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H70265EB98DC1442AAE56087F2F862F41"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF289532EEBCB43ABB2575D30B685392A"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD8F855AF61A54C95B7F689DFEF7F2C4D"><enum>(b)</enum><header display-inline="yes-display-inline">Continuation of existing OTS orders,
resolutions, determinations, agreements, regulations, etc</header><text display-inline="yes-display-inline">All orders, resolutions, determinations,
agreements, and regulations, interpretative rules, other interpretations,
guidelines, procedures, and other advisory materials, that have been issued,
made, prescribed, or allowed to become effective by the Office of Thrift
Supervision, or 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 commented="no" display-inline="no-display-inline" id="H243AE7E3561945E0B983934C18967E5A"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H78B218383A184B53850037F900DB8F47"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAFE28DEF12074103A7FF6BAEDFCAD504"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF8D701874FF247F6ABADC73B701AC248"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB60A7990803D44FEB2A2D0E1516506F5"><enum>(2)</enum><text display-inline="yes-display-inline">the action had been taken by the Board,
unless otherwise terminated or modified by the Board.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF9434ACDA1F0494589FB854EC3904675"><enum>(d)</enum><header display-inline="yes-display-inline">Identification of regulations
continued</header>
<paragraph commented="no" display-inline="no-display-inline" id="H70C7358CC4BF40F7865917693A7E7B9E"><enum>(1)</enum><header display-inline="yes-display-inline">By office of the comptroller of the
currency</header><text display-inline="yes-display-inline">Not later than the
transfer date, the Comptroller of the Currency shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2246A874A69041C595097D735F517910"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0B6B0415CA854D79A9AA5EB1071264F4"><enum>(B)</enum><text display-inline="yes-display-inline">publish a list of such regulations in the
Federal Register.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4839704C1005478B97CB04F9FC7A8ACF"><enum>(2)</enum><header display-inline="yes-display-inline">By the corporation</header><text display-inline="yes-display-inline">Not later than the transfer date, the
Corporation shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3D655DA6ACDD40D7A6565FD62B7AB564"><enum>(A)</enum><text display-inline="yes-display-inline">after consultation with the Office of the
Comptroller of the Currency, identify the regulations continued under
subsection (b) that will be enforced by the Corporation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DE66A49EFD541249D9A78154AB80371"><enum>(B)</enum><text display-inline="yes-display-inline">publish a list of such regulations in the
Federal Register.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB2C0BF7B75D3480F9238C82E7325DEFF"><enum>(e)</enum><header display-inline="yes-display-inline">Status of regulations proposed or not yet
effective</header>
<paragraph commented="no" display-inline="no-display-inline" id="H744D1EF0B9E04501A46C89935954D0CE"><enum>(1)</enum><header display-inline="yes-display-inline">Proposed regulations</header><text display-inline="yes-display-inline">Any proposed regulation of the Office of
Thrift Supervision, which 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 commented="no" display-inline="no-display-inline" id="HC726EE477B844CC3B2F0250E2C3BB522"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations not yet effective</header><text display-inline="yes-display-inline">Any interim or final regulation of the
Office of Thrift Supervision, which 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 commented="no" display-inline="no-display-inline" id="HD1828555375A43C89638263524FA041B" section-type="subsequent-section"><enum>1209.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD740C646ABDB4949A1BA75F188D29EA9" section-type="subsequent-section"><enum>1210.</enum><header display-inline="yes-display-inline">Coordination of transition
activities</header><text display-inline="no-display-inline">Before the transfer
date, the Comptroller of the Currency shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA35A5EAAA6824530BF245DF51C5CCFE6"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6EB8764925A44461A71441DF19452A05"><enum>(2)</enum><text display-inline="yes-display-inline">determine and redetermine, from time to
time—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H24B12A0C3E3A4A6199AD6A58C5E990EF"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB4987689DD74A278F8A664C12D3ACBC"><enum>(B)</enum><text display-inline="yes-display-inline">what personnel are appropriate to
facilitate the orderly transfer of functions by this title; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB4F2A1F8B6643D9B6CE66E6D3F45BEA"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1A4CEFF6835F448EADF6CE8EC85F7FCA"><enum>(3)</enum><text display-inline="yes-display-inline">take such actions as may be necessary to
provide for the orderly implementation of this title.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4E28F02D1C5D4523B8147A54521044AD" section-type="subsequent-section"><enum>1211.</enum><header display-inline="yes-display-inline">Interim responsibilities of office of the
comptroller of the currency and office of thrift supervision</header>
<subsection commented="no" display-inline="no-display-inline" id="HA5075070BD034F84BAA394AE7F036B72"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">When requested by the Comptroller of the
Currency to do so before the transfer date, the Office of Thrift Supervision
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H20CA2FFAB2534F0BBF310F1098D8BAA5"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1F81A82846414B52BE8944EF7F643A1E"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H63E30152DFD042959A7CD0887D674DE0"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H226D047C4F34469196DCE2B213284000"><enum>(b)</enum><header display-inline="yes-display-inline">Notice required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29F4269F9BE34D24BE467DDE2CC4640A" section-type="subsequent-section"><enum>1212.</enum><header display-inline="yes-display-inline">Employees transferred</header>
<subsection commented="no" display-inline="no-display-inline" id="H3BD2662BD7FF48F3B9ECE6E0B78C53C3"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB92BDCBDAA3D4F1D8FB298CBDC28232E"><enum>(1)</enum><header display-inline="yes-display-inline">OTS employees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD9D11EA29ABA488BA49AA0570EAA9D67"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C763FDF75884D8C95E5F4B65CFF941A"><enum>(B)</enum><header display-inline="yes-display-inline">Allocating employees for transfer to
receiving agencies</header><text display-inline="yes-display-inline">The
Director of the Office of Thrift Supervision, the Comptroller of the Currency,
and the Chairperson of the Corporation shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H15A2A7D2BF12480B9A9D2C1122EE791A"><enum>(i)</enum><text display-inline="yes-display-inline">jointly determine the number of employees
of the Office of Thrift Supervision necessary to perform or support—</text>
<subclause commented="no" display-inline="no-display-inline" id="H5CD5EF67AFC747C5B3DFC0E6BA5B7917"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F9D1A37EF4F493BB2127F8D17627A95"><enum>(II)</enum><text display-inline="yes-display-inline">the functions of the Office of Thrift
Supervision that are transferred to the Corporation by this title;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HED90DCF34B85499B9DB522ADAA1CFF9A"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9C07CBBFDF040DAA3CB0D77FF6BFFEA"><enum>(2)</enum><header display-inline="yes-display-inline">Transfer of employees performing consumer
financial protection functions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H523F9D9AA69A4DF6916D5F1772FAD601"><enum>(3)</enum><header display-inline="yes-display-inline">Appointment authority for excepted service
transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H92D66F4690FD4A419D641FD4E561E32B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8C9F36D157D7428FB433E55717A4A7B6"><enum>(B)</enum><header display-inline="yes-display-inline">Declining transfers allowed</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0F4999B81834A25A22E420473F3CE04"><enum>(b)</enum><header display-inline="yes-display-inline">Timing of transfers and position
assignments</header><text display-inline="yes-display-inline">Each employee to
be transferred under this section shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H546A7CB4061B4DAFAAE18CBF89C17D3C"><enum>(1)</enum><text display-inline="yes-display-inline">be transferred not later than 90 days after
the transfer date; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB49E9EACC0FF4EE0A07F7E25E195DF89"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB65C18701AED49DD8C5CF4247A0CB73F"><enum>(c)</enum><header display-inline="yes-display-inline">Transfer of function</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3525C65C87204E83B0644EA487F9CFE5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26DC35594752493B9C2AC6C2EA878184"><enum>(2)</enum><header display-inline="yes-display-inline">Priority of this subtitle</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H12948D29C7DC459F8F5FD0D0D8695446"><enum>(d)</enum><header display-inline="yes-display-inline">Employees’ status and
eligibility</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE19F84BF221C4E5E9740395564546B4A"><enum>(e)</enum><header display-inline="yes-display-inline">Equal status and tenure
positions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9D7BD1373A8447AB73EFD3B418C4F3F"><enum>(f)</enum><header display-inline="yes-display-inline">No additional certification
requirements</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3CFAC72938FE4A1BBC4880EB96D9F73E"><enum>(g)</enum><header display-inline="yes-display-inline">Personnel actions limited</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEEB6F4AF9B21443FA59B84C70C5D4EB1"><enum>(1)</enum><header display-inline="yes-display-inline">3-year protection</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H158AAD55C6B0452E8FA4D642F2CAED3F"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H59BB970BED154C009DFE70EE1053657E"><enum>(B)</enum><header display-inline="yes-display-inline">Affected employees</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<quote>affected employee</quote> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H00CF64CC7C124754B3E38FE8D7059ED9"><enum>(i)</enum><text display-inline="yes-display-inline">an employee transferred from the Office of
Thrift Supervision holding a permanent position on the day before the transfer
date; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8DCDA61570094ADBA679E1A754A2E3BC"><enum>(ii)</enum><text display-inline="yes-display-inline">an employee of the Office of the
Comptroller of the Currency holding a permanent position on the day before the
transfer date.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H778B121535D44A2B9EDD18E4759EFE61"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Paragraph (1) does not limit the right of
the Office of the Comptroller of the Currency or the Corporation to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H90D0E349FC26462389AE5A2DCC751EBA"><enum>(A)</enum><text display-inline="yes-display-inline">separate an employee for cause or for
unacceptable performance; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D1BEF06FFC946CB967CEC7BEF8DFD9B"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E8AF130D6EE44E381A119BFB81DA222"><enum>(h)</enum><header display-inline="yes-display-inline">Pay</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2544CA88D8FB492EA2A103CAB3075593"><enum>(1)</enum><header display-inline="yes-display-inline">1-year protection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3CF8DC7864EB49CA9F2D40195FA31092"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E0B288167E64BEEB8EA0608EB037D0A"><enum>(A)</enum><text display-inline="yes-display-inline">for cause;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E064203A5CB41E29194BEBB9919C505"><enum>(B)</enum><text display-inline="yes-display-inline">for unacceptable performance; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0793C68791B41B2B3C7DA3A95363401"><enum>(C)</enum><text display-inline="yes-display-inline">with the employee’s consent.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H90CA8CD2A4224CA98480AE3652FE7D5A"><enum>(3)</enum><header display-inline="yes-display-inline">Protection only while
employed</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F39754577964AE4BA0ED00EC42378C8"><enum>(4)</enum><header display-inline="yes-display-inline">Pay increases permitted</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF6AEC03A229D4E3BB152B92C544FF366"><enum>(i)</enum><header display-inline="yes-display-inline">Benefits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H408AD7EC0A08457AB0A472152F301824"><enum>(1)</enum><header display-inline="yes-display-inline">Retirement benefits for transferred
employees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAC24A93CA36248A7AF4A89F7CAD60F38"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header>
<clause commented="no" display-inline="no-display-inline" id="H26C99C70F3CE4732A70B13119A05780F"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA6B012A5F26422D859DEE28DBBFEE4B"><enum>(ii)</enum><header display-inline="yes-display-inline">Employer’s contribution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41C5681E7B5544198ABC41CFD5730204"><enum>(B)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA83AA85E81DD459D889C3ED5A0A23CD7"><enum>(2)</enum><header display-inline="yes-display-inline">Benefits other than retirement
benefits</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2C3C8DD408FB4FE68612E9EF1D0D9FA7"><enum>(A)</enum><header display-inline="yes-display-inline">During 1st year</header>
<clause commented="no" display-inline="no-display-inline" id="HD25EBF0D872746B2B79F7C0D8C761549"><enum>(i)</enum><header display-inline="yes-display-inline">Existing plans continue</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H851500F9EFD54D64AB7B76F4B9E3F962"><enum>(ii)</enum><header display-inline="yes-display-inline">Employer’s contribution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16B1858F29BC4593A38C20037AABE2EA"><enum>(B)</enum><header display-inline="yes-display-inline">Dental, vision, or life insurance after 1st
year</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6FC561C6DF3141C19DC99718292E2DF2"><enum>(i)</enum><text display-inline="yes-display-inline">the enhanced dental benefits program
established by chapter 89A of title 5, United States Code;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB61701AA74554DB99EDC956962DE1CFF"><enum>(ii)</enum><text display-inline="yes-display-inline">the enhanced vision benefits established by
chapter 89B of title 5, United States Code; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H87F7F05991804575A5CE464B1E98496B"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DCF8CB74D514AC5AEEB242E51CFD2F1"><enum>(C)</enum><header display-inline="yes-display-inline">Long term care insurance after 1st
year</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92DB912DDCB9442F9C4042C449459594"><enum>(D)</enum><header display-inline="yes-display-inline">Employee’s contribution</header>
<clause commented="no" display-inline="no-display-inline" id="HBC6A39447A824CF097E2E4073CC003B0"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF938EDEA0B574EBD9CC91A314D3CACEE"><enum>(ii)</enum><header display-inline="yes-display-inline">Cost differential</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFAE8836F373B40E09AB34AA19651D5EE"><enum>(iii)</enum><header display-inline="yes-display-inline">Funds
transfer</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23D057531E6F4D5290292CE49DBB72CA"><enum>(E)</enum><header display-inline="yes-display-inline">Special provisions to ensure continuation
of life insurance benefits</header>
<clause commented="no" display-inline="no-display-inline" id="H387AAAB50DE343E9910B946CF05B2D67"><enum>(i)</enum><header display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="HC3C6B116B5424C9B8DFBCED4DC737795"><enum>(ii)</enum><header display-inline="yes-display-inline">Employee’s contribution</header>
<subclause commented="no" display-inline="no-display-inline" id="H7346E7177A67439F991F186397AB1C7E"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF28C7F344A4E437CB7EFD5B10D05F444"><enum>(II)</enum><header display-inline="yes-display-inline">Cost differential</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6F2E0F15E3CB441F8069B07EE2D0DF7C"><enum>(III)</enum><header display-inline="yes-display-inline">Funds
transfer</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3344FF2D3E1249E9920965033AD0AF33"><enum>(IV)</enum><header display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="H2639E81C7A0B4D95860394B561755BBA"><enum>(j)</enum><header display-inline="yes-display-inline">Equitable treatment</header><text display-inline="yes-display-inline">In administering the provisions of this
section, the Office of the Comptroller of the Currency and the
Corporation—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H045B6A41C1834D6DA23B853981ACBBC1"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF0BD8C10836D4FF19AC74B8F01A5E825"><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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07A488556F284698B1C332584675C75B"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6BBDDEC8E2C457BB199A17F87B55387"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD483431D5A86427888137508A3014173" section-type="subsequent-section"><enum>1213.</enum><header display-inline="yes-display-inline">Property transferred</header>
<subsection commented="no" display-inline="no-display-inline" id="H42F2F526A96142B6AC6131E856EEB306"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H18F7BBF7DE154127BCD434FB9D2B16F9"><enum>(b)</enum><header display-inline="yes-display-inline">Contracts related to property
transferred</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66ADCFA3E5854FC9A5FBD43D538B8883"><enum>(c)</enum><header display-inline="yes-display-inline">Preservation of property</header><text display-inline="yes-display-inline">Property identified for transfer under this
section shall not be altered, destroyed, or deleted before transfer under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE38114B754ED47BDB71EE41610163523"><enum>(d)</enum><header display-inline="yes-display-inline">Property defined</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0C6B8A7546849F58EB1AF71432021C6" section-type="subsequent-section"><enum>1214.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E45429188BA46B78E953BCF3DF74403" section-type="subsequent-section"><enum>1215.</enum><header display-inline="yes-display-inline">Disposition of affairs</header>
<subsection commented="no" display-inline="no-display-inline" id="HA09E7AB1480D4DE5B64C5E5169E84012"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">During the 90-day period beginning on the
transfer date, the Director of the Office of Thrift Supervision—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H08F04D31D0D34BB0A78F40AFC1E4990D"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF35107021D49455C83498B935CC967FB"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0D9169EBCFC458690D5ECF97A31A6BB"><enum>(B)</enum><text display-inline="yes-display-inline">manage any property of the Office of Thrift
Supervision until the property is transferred under section 1213; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3BC54FA27354CC0A1B22A57E590F257"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40912BA4A25B4706B8B0F54DFB122A84"><enum>(b)</enum><header display-inline="yes-display-inline">Authority and status of director</header>
<paragraph commented="no" display-inline="no-display-inline" id="H288C57D710AA4C8E988AF502513C3F91"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E40CB6555F247A4B3AAAE3475A27DC7"><enum>(2)</enum><header display-inline="yes-display-inline">Other provisions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9CCDD6A6A67474EB01C254E61A1A99E"><enum>(A)</enum><text display-inline="yes-display-inline">treated as an officer of the United States;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1D260EF56D8541B08F80F016F5FE8F1F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3730419520A64D1A98087BFE3ABFA0B3" section-type="subsequent-section"><enum>1216.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37EA3BF123D44E6DA7452B9C8AC64D37"><enum>(1)</enum><text display-inline="yes-display-inline">continue to provide those services, subject
to reimbursement, until the transfer of those functions is complete; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H059F5B6FF98840EE9FEC127CB9577A71"><enum>(2)</enum><text display-inline="yes-display-inline">consult with any such agency to coordinate
and facilitate a prompt and orderly transition.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4E7035F8FC3345AC9BB7194B2EFCB7CE" section-type="subsequent-section"><enum>1217.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7B55623F9E04DBB998E6E445FA48E0D"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7085D8A8C2748AF821500D2F988B374"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H77072D0BD10544CA996429E3E6025F22" section-type="subsequent-section"><enum>1218.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4505E3DF139489FBD7AC786E1EEDFEF"><enum>(1)</enum><text display-inline="yes-display-inline">In subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5D5875323FC044E8A7D649936BADC98C"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF05C45C3C9B04BF6B95C26B4BB5DDA9B"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)(D), by striking clause (i)
and inserting: “(i) In general.—.</text>
<quoted-block display-inline="no-display-inline" id="HB401E893A1544F18BB95E76D32DE7E06" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H17E1C9DB3AC44A389058AE7131B1FF0F"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), the term
<quote>savings and loan holding company</quote> means any company that directly
or indirectly controls a savings association or that controls any company that
is a savings and loan holding company, and that is either—</text>
<subclause commented="no" display-inline="no-display-inline" id="H6EC726653CB54C51A2EC92F42633710E"><enum>(I)</enum><text display-inline="yes-display-inline">a fraternal beneficiary society, as defined
in section 501(c)(8) of the Internal Revenue Code of 1986; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4F8702060C5441BB8ABD541044FFAF10"><enum>(II)</enum><text display-inline="yes-display-inline">a company that is, together with all of its
affiliates on a consolidated basis, predominantly engaged in the business of
insurance.</text>
</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7FC12D7C53E44F03AF6398869177250B"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (1)(F), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H564D83F3779D4B84ADFC24417E635FF2"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting at the end
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HF60EBFECC09D480D8B0A587044AC0674" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA39686B7E6984C428E43D2B08F57BF70"><enum>(K)</enum><header display-inline="yes-display-inline">Board</header><text display-inline="yes-display-inline">The term <quote>Board</quote> means the
Board of Governors of the Federal Reserve
System.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB51D58E72C2941F1AA3D18E9AC1F9015"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (2)(D), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53418DE4467A492888FF64E91615020B"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by striking
<quote>Director</quote> and inserting <quote>Board</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFDD009F403E245BE87CE4128E1FF14CB"><enum>(G)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking
<quote>Director</quote> and inserting <quote>Board</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72959E135786471691B507618A5A7963"><enum>(2)</enum><text display-inline="yes-display-inline">In subsection (b), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56828C70E60A496D9CBB2CE63CC28E88"><enum>(3)</enum><text display-inline="yes-display-inline">In subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6E16A36F23BE4A8EB1ADE48D836AA8D4"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph, (2)(F)(i)—</text>
<clause commented="no" display-inline="no-display-inline" id="HD3813EAFEA354D579491A63ACB85F7AE"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>of Governors of the
Federal Reserve System</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2E981C6CAEBD4DB18BBDBE57E229F909"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>Director</quote> and
inserting <quote>Board</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC273914D54F6435DAF4CDE689E06974D"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)(G), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7092A9AEC9004A82A43D8FD57844DC87"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (4)(A), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB6B81646D9F34BCD9034A849798E468F"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4)(B)—</text>
<clause commented="no" display-inline="no-display-inline" id="HB3B1535601D4415AA881651B82316F93"><enum>(i)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote>director</quote> and inserting <quote>Board</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H79EFFBB65613445E98503CFBE09B29C7"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>the Director
shall</quote> and inserting <quote>the Board shall</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF41251D28C74163B0790C8795AE6419"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (4)(C)—</text>
<clause commented="no" display-inline="no-display-inline" id="H56E0F3EA99714353B467F49F779A7002"><enum>(i)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote>director</quote> and inserting <quote>Board</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H170956E1DA734B13BBCBBBB075CB5D4C"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>the Director may</quote>
and inserting <quote>the Board may</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H50D8224F007F4847914BB0E318D034E9"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACD6FF58D60845EA84D83AD2F7391CE2"><enum>(G)</enum><text display-inline="yes-display-inline">in paragraph (6)(D)—</text>
<clause commented="no" display-inline="no-display-inline" id="H158DDD7D10FC4511B4A4D28E264EC1BA"><enum>(i)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote>director</quote> and inserting <quote>Board</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1E7AC9CDF9964396805D9A0FCF3E6FD9"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>Director</quote> each
place it appears and inserting <quote>Board</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA5C7B63C7F974A52AED609D1B7459210"><enum>(H)</enum><text display-inline="yes-display-inline">in paragraph (9)(A)(ii), by inserting
<quote>, but only if the conditions for engaging in expanded financial
activities set forth in section 4(l) of the Bank Holding Company Act of 1956
have been met</quote> after <quote>1956</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H170DD95CAFBA4C108E895793F7AE01EB"><enum>(I)</enum><text display-inline="yes-display-inline">in paragraph (9)(E), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04D9D880A70E4D29BB5E17D9629439E2"><enum>(4)</enum><text display-inline="yes-display-inline">In subsection (e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F1F5CE443A7480E967D11658EB2BFA0"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H6FD97C30B0E44762A458630DC97A1581"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5F31616E99B6448B8EF87E17AF8B5BA2"><enum>(ii)</enum><text display-inline="yes-display-inline">in clause (ii), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H17564CDB92314B9DAF8F7B8587EBFD0D"><enum>(iii)</enum><text display-inline="yes-display-inline">in clause (iii), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H832AF3D9BF8A486786BA425C0B803CEA"><enum>(iv)</enum><text display-inline="yes-display-inline">in clause (iv), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H261B6259F8284E61B935618917DCDB87"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8D4FB90EA8054F0C83B5881C1A25A4BB"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H952E2BFFD1FF4413B9C0E848CE9178E3"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H759830BFB8C04ED6A332491F6C420365"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (4)(A), by striking
<quote>Director</quote> and inserting <quote>Board</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H83045FDE06204BD884ED73E6BB8978B6"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H12E4264C41DC4DC5809555E7AA4EFDF5"><enum>(5)</enum><text display-inline="yes-display-inline">In subsection (f), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3507698CE5774E1D904038F44895E232"><enum>(6)</enum><text display-inline="yes-display-inline">In subsection (g), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7850330D9B1E4856A28B6C032EBC6842"><enum>(7)</enum><text display-inline="yes-display-inline">In subsection (h)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB6C43E2C158C40618BB6780806BD9354"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote> and inserting <quote>Board</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4213DD6354F5455F9E61B1C4CC39852F"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>Director</quote> and inserting <quote>Board</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0370413FD08549AA9380419338EF4FE8"><enum>(8)</enum><text display-inline="yes-display-inline">In subsection (i)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H749827E002394312B9DFA67FC5053C61"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0B10D3DE5A54461386CF40CE0F394B65"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H93DE0044AF1B4C8CA911E3640AD82292"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2)(F), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3C48655BDAAB45B4A2826F34247AB97A"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (3)(B), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H92F36AB998CA4B23A6CEC74D863F27FF"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3)(F), by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7957C25E02E24AAC9283D1A23965D070"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking
<quote>Director</quote> and inserting <quote>Board</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA3A8449B38714B2F8270C9CD4510728D"><enum>(G)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>Director</quote> and inserting <quote>Board</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H77443C84799045599D02CBC17BE13894"><enum>(9)</enum><text display-inline="yes-display-inline">In subsection (j), by striking
<quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H449D7F89FC984709B3286A4339DA562C"><enum>(10)</enum><text display-inline="yes-display-inline">In subsection (l)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD740F2B1D7D344949109DA2CCD616E7A"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>Director</quote> and inserting <quote>Board, in consultation with the
Comptroller of the Currency,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7ACEB3A804EB4F0FBF70A05F9A2C97F9"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote> and inserting <quote>Board, in consultation with the
Comptroller of the Currency,</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7B14EE3D4861491BB128231FA0C4BC8C"><enum>(11)</enum><text display-inline="yes-display-inline">In subsection (m)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4A4A7B3CC6B64D30B3422118960F5674"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H40D66AEF45EC4A888A5FC01E62CE1711"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director may grant</quote> and inserting <quote>Comptroller of the
Currency may grant</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H185D9B3121744439812032610B803500"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>the
Director deems</quote> and inserting <quote>the Comptroller
deems</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1981D0B38D5B44B4B478FDD5C7861BF0"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD75D98FAC01748B9AEF63A22A5479BB2"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1FB19E7AAA54609BA282532B21ADF23"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (2)(B)(iii), by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" 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 commented="no" display-inline="no-display-inline" id="H2BBFD7A0937340569905FEC2043702BB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A savings association that fails to become
or remain a qualified thrift lender shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HB262F412C2744987A9221D27BB0AFE7F"><enum>(i)</enum><text display-inline="yes-display-inline">immediately be subject to the restrictions
in subparagraph (B); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H776EA21E69114B2CB409357F1E47F2FA"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H37E4E4B326FE492A8DF4C1E1180AA1FD"><enum>(III) </enum><header display-inline="yes-display-inline">Dividends</header><text display-inline="yes-display-inline">The savings association shall be prohibited
from paying dividends except for such dividends—</text>
<item commented="no" display-inline="no-display-inline" id="H58080BA6E64F44A79F9162A47D11BB65"><enum>(aa)</enum><text display-inline="yes-display-inline">as would be permissible for a national
bank;</text>
</item><item commented="no" display-inline="no-display-inline" id="HB35D36FB1EAC40B2B4E06B9E93D5C647"><enum>(bb)</enum><text display-inline="yes-display-inline">that are necessary to meet obligations of a
company that controls such savings association; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H37E9A0AA601B437FAE8A52152EE8A7ED"><enum>(cc)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4A6FDF63CC4C48D88243C6715755C2D3"><enum>(I)</enum><text display-inline="yes-display-inline">by striking clause (ii) of paragraph
(3)(B);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB62A45F81E654BD1A953F1B976CD82A9"><enum>(J)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4A188CFAC113428F90DC80E9A9554F64"><enum>(C)</enum><header display-inline="yes-display-inline">Regulatory authority</header><text display-inline="yes-display-inline">A savings association that fails to become
or remain a qualified thrift lender shall be deemed to have violated section 5
of the Home Owners’ Loan Act and subject to actions authorized by section 5(d)
of the Home Owners’ Loan Act.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0B74E5BCF824E5D9F2C9A85D0A5C535"><enum>(D)</enum><header display-inline="yes-display-inline">Requalifications</header><text display-inline="yes-display-inline"></text>
<clause commented="no" display-inline="no-display-inline" id="HD098F24A67EB4A57AAC570E2451D1EEE"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F9DC0C8267F4C7EB67F79726E7EF3DA"><enum>(ii)</enum><text display-inline="yes-display-inline">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 1-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 commented="no" display-inline="no-display-inline" id="H54CF9F7B52B344759FF528315FAE6903"><enum>(K)</enum><text display-inline="yes-display-inline">in paragraph (4)(D) by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H863E8AA0AFB94F849B73175A316A0B51"><enum>(L)</enum><text display-inline="yes-display-inline">in paragraph (4)(E) by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H65E6A4DFC67042B3B58F9E67F9E93011"><enum>(M)</enum><text display-inline="yes-display-inline">in paragraph (7)(B) by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4C5B0E447C3A4DBB963A13E31BBFF8B7"><enum>(12)</enum><text display-inline="yes-display-inline">In subsection (o)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFFDA74C12C614312826952C7692655F1"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5AB1AC5F042B44E78B4B9DFE61B88A91"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3)(A) by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H96BA3C0492F247D29714AB7BEF7C081A"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (3)(B) by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H302FCC918FB14F0FA00D569E7F55B4CB"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (3)(C) by striking
<quote>Director</quote> and inserting <quote>Board</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF4D7A90CC2274FB694EBF57C18A7C7CF"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3)(D) by striking
<quote>Director</quote> and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph commented="no" 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 commented="no" display-inline="no-display-inline" id="H33F5BB75099B40A2BE13C110D305259B"><enum>(G)</enum><text display-inline="yes-display-inline">in paragraph (7) by striking
<quote>chartered by the Director</quote> and inserting <quote>chartered by the
Comptroller</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A15ACC94A4F42EF8063C3F57C17DD32"><enum>(H)</enum><text display-inline="yes-display-inline">in paragraph (7) by striking
<quote>regulations as the Director may</quote> and inserting <quote>regulations
as the Board may</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H15D8BC0F17D54A3F97B0D36FC80B2CD8"><enum>(13)</enum><text display-inline="yes-display-inline">In subsections (p), (q), (r), and (s), by
striking <quote>Director</quote> each place it appears and inserting
<quote>Board</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H34A99480CB2349BF941069A0092B0374" section-type="subsequent-section"><enum>1219.</enum><header display-inline="yes-display-inline">Practices of certain mutual thrift holding
companies preserved</header>
<subsection commented="no" display-inline="no-display-inline" id="HD782B091DD1F428185A504F14630DF3C"><enum>(a)</enum><header display-inline="yes-display-inline">Treatment of dividends by certain mutual
holding companies</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H33407D4C3F4B4648A83D89504DE0E90A" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H54FC7087F4584F269F80EDD1921BC08D"><enum>(3)</enum><header display-inline="yes-display-inline">Declaration of dividends</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBDB727C45FB24C3E9907B735DE8DDB44"><enum>(4)</enum><header display-inline="yes-display-inline">Waiver of dividends</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAFDD5D0EE0164F6DA0DE8FB7C5B3293D"><enum>(A)</enum><text display-inline="yes-display-inline">no insider of the mutual holding company,
associate of an insider, or tax-qualified or non-tax-qualified employee stock
benefit plan of the mutual holding company holds any share of the stock in the
class of stock to which the waiver would apply; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1AFCEDEB2BDC4A79A11D957E753BC227"><enum>(5)</enum><header display-inline="yes-display-inline">Standards for waiver of
dividend</header><text display-inline="yes-display-inline">The Board shall not
object to a notice of intent to waive dividends under paragraph (4) if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H28E31DD8D61B42AAAC41A54E8DABDFF3"><enum>(A)</enum><text display-inline="yes-display-inline">the waiver would not be detrimental to the
safe and sound operation of the savings association; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D718E6249D74132952F6FC0F1D711CB"><enum>(B)</enum><text display-inline="yes-display-inline">the board of directors of the mutual
holding company expressly determines that a waiver of the dividend by the
mutual holding company is consistent with the directors’ fiduciary duties to
the mutual members of such company.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H29510D0C78B74CF9A7E58C909D803156"><enum>(6)</enum><header display-inline="yes-display-inline">Resolution included in waiver
notice</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB32200C8E97B483FA812CF1A74CE0668"><enum>(7)</enum><header display-inline="yes-display-inline">Valuation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD9C78B240EB6434FA7B06ACDAED3974A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Board shall consider waived dividends
in determining an appropriate exchange ratio in the event of a full conversion
to stock form.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3BDC6B9D410142978BDFB4D1DAAB3ECC"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">In the case of a savings association which
has reorganized into a mutual thrift holding company under section 10(b) of the
Home Owners’ Loan Act and has issued minority stock either from its mid-tier
stock holding company or its subsidiary stock savings association prior to
December 1, 2009, the Board shall not consider waived dividends in determining
an appropriate exchange ratio in the event of a full conversion to stock
form.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H39FE6CEBFF8549A6BD5AD2B4D8A4CE88" section-type="subsequent-section"><enum>1220.</enum><header display-inline="yes-display-inline">Implementation plan and reports</header>
<subsection commented="no" display-inline="no-display-inline" id="HDF8C99B2BCAE4A228EDC44460B7F1B53"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F9DA51D7DC942B9904FA362FD202F12"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCDAEDA05FE4E411BB0FF24B9FC369249"><enum>(1)</enum><text display-inline="yes-display-inline">whether the plan sufficiently takes into
consideration the orderly transfer of personnel;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD3534DB068324DC1A13739E08348020F"><enum>(3)</enum><text display-inline="yes-display-inline">whether the plan sufficiently takes into
consideration the orderly transfer of authority and responsibilities;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5CA1F22951F94A3B83B4312ED4B90827"><enum>(4)</enum><text display-inline="yes-display-inline">whether the plan sufficiently takes into
consideration the effective transfer of funds;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F94DD3B751E42C0891DD886DED72057"><enum>(5)</enum><text display-inline="yes-display-inline">whether the plan sufficiently takes in
consideration the orderly transfer of property; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95A125110A1A490ABBE1FD9F865A01C7"><enum>(6)</enum><text display-inline="yes-display-inline">any additional recommendations for an
orderly and effective process.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H03E1DE25BB104F46B8A0C0CDB1CD4F45"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDA4DCFA165345D48952195D468C73F4" section-type="subsequent-section"><enum>1221.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H915D452F9703477CAC7FE4D813C572BF"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1A2BE75E8890455C84F4561CDFDB0955"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C7BDBAC297B4C3C8235C6866020FCE4"><enum>(2)</enum><text display-inline="yes-display-inline">by amending subsection (d)(2) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H04788BF3C9344075A8A47DBEDB8F87EA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H993D0855A5A94FA09808C6C4B940A33E"><enum>(2)</enum><header display-inline="yes-display-inline">Acting officials may serve</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB211052656254B43B2F37AE48EAF8A13"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (f)(2), by striking <quote>or
of the Office of Thrift Supervision</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HD0ABD97CC2B74CF1A30F8D25B963A13C" section-type="subsequent-section"><enum>1222.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFF1593CE7D8942A5B96D9E279720E5CE"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC3FA1DB91A94F4B882D06AEC643F67C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B2D8786F18B442C90A304CB20138DE8"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8C9B28D2FC6D4A95902EA28E63BF26E7" section-type="subsequent-section"><enum>1223.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H636F79773EA4418AA8D8E9F91B9CEE9D"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3CAE53EF2FD44E37980F1B91830E6980"><enum>(A)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>the Director of the Office of Thrift Supervision</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACA58B43752C4E8AA0508025B3EB9865"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
<quote>the Director of the Office of Thrift Supervision,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D3E7DBACE48477F801FD8062845C712"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H684BD5907D604F218263BBD1468D99E1"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking <quote>, the
Director of the Office of Thrift Supervision,</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4682ABCFDDEB4C71B07E7432192F84A6" section-type="subsequent-section"><enum>1224.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8BC352B3B36460CB9192F412258CD4D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(8)(B)(ii), in the last
sentence—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA59F27868772477D8B4BA1F597091163"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H883CD19ACA904DED8A6581521831DAD0"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>the Office of Thrift
Supervision, as a successor to</quote> after <quote>as a successor
to</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8BF83AB93E94458A94873F7E7063513"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (o), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4CE6D0FE289D4DC6B6B5DA8907736520"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA752CD7FC6D741A0939CA8811FE19DD8" section-type="subsequent-section"><enum>1225.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75EF1AA33589420BA79512ABCF6C506F"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(6)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB3386902330B4D97B97131E81044554A"><enum>(A)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote><header-in-text level="paragraph" style="OLC">director of the office of
thrift supervision</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Comptroller of the
Currency</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H380683A91C394A8CA60452F365E36F91"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2DA2774DE24A4B5B893C0448D98CD496"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H485FF4800F3B4FDD927B49DEFB71E7C9"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H12CE96D3D7B04E54A6A00B74582E21D7"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (17)(A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H417878CB3D884EF5801484B2DE6854FE"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>, or the Director of the
Office of Thrift Supervision</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0068BD276C1F4AFDBE79D48F99D9BD41"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>appropriate</quote>;
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD5B221F98FA74B9CB910CC09419EE24C"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (18)(B), by striking <quote>or
the Director of the Office of Thrift Supervision</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF4515EBB4324C5BB5745DE55490D21B"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (n)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA37BF3A6A3754ED6AC200CB2645C0425"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFC3F6B657AA141DEA0E08CD27D32E8C1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking <quote>the
Director of the Office of Thrift Supervision</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H14BFC6EA12F4471B86F5BB4655675C45"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (4)(D), by striking <quote>and
the Director of the Office of Thrift Supervision, as
appropriate,</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H54EE18B9C9FD453289651BB579F0534A" section-type="subsequent-section"><enum>1226.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF902E596604C4086959F63B9EBEBC260" section-type="subsequent-section"><enum>1227.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35327952472B4CBD843FFE28AF4038DD"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE8AA7767DE1F4866B72E9CC89A0EB2F6"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>bank;</quote> and inserting <quote>bank or a savings association;
and</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H558045AE6587450C993E183410E8D6B6"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting
<quote>and</quote> at the end after the semicolon;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC9E16393C08641C998CCF66CE03B6DBC"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA55EC3D2CF474899B4555FD354FC2E96"><enum>(D)</enum><text display-inline="yes-display-inline">by striking subparagraph (D);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H275463B335574FA1AAA9CA7B77DD1ACC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (i)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA16DE506491A4CB18269EFDDB1D944E7"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H21C9DE514A8E4CFF859B51836E596192" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HBFEBB9F0D83F44D5BE844BF09FB94DF8"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H89704A2CA97A41D5BEFC6CBA55A354CE"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (C); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86A1601FD22841C7881FAC08C877E65F"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (m)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDFABB0F5E8F14A50A3F2EDEF8118A4C1"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2FA58476A7C74512B479E2D538125EE1"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0BE770DA527646A6A2852F1BDB1BE018"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H096E6106A6934A2DB421F8E4F36E28F7"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H8749E4EF7C0C4EFBACEC3F3855A7F964"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3E458CD1FC644691A096DDF5FD60B1AD"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H08BA9BFF72B840B882DCB4325E1C8B8B"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F6A8A6A96B4423C898F3FB0192A57B0"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>Director may deem
appropriate</quote> and inserting <quote>Comptroller may deem
appropriate</quote>; and</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H024D8AE9F2B949C7A59F1B3AB3FF4F42"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<clause commented="no" display-inline="no-display-inline" id="H20F6E1E68C694473B06F5772EAB2BEDB"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB0A61846014D499BB4B601F6F8522066"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB12E5E944EF34F4F8994B38E12D2FB1D" section-type="subsequent-section"><enum>1228.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56DF0F71F46B4F78AEE6918101E09A73"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9630F272B55A4001A13F214D3B874380"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H87790EAFCBF44D099B558B207758B763"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H915AC802282F41D19F6F8A0A0AB070E0"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5CE45AF6EA434A34B5DA89DBB1D14466"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (F), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9081854F46ED4D2685EF3C46F8808877"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<clause commented="no" display-inline="no-display-inline" id="HFD8B100FB54445CF8467A735E0A3B585"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB2F363F5B5A7408EB3045C2336F2FE70"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H36B4E294F90744F684B7ED39A2ED0E6B"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (h)(2), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H9477162C8B0D4CF1BD07DE3C60B914CF" section-type="subsequent-section"><enum>1229.</enum><header display-inline="yes-display-inline">Amendments to the Alternative Mortgage
Transaction Parity Act of 1982</header>
<subsection commented="no" display-inline="no-display-inline" id="H863B38876E304FDBB40189E742D9AAD7"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 802</header><text display-inline="yes-display-inline">Section 802(a)(3) of the Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801(a)(3)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H913170870A9C437092B047A0C7AAF237"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Comptroller of the
Currency,</quote> and inserting <quote>Comptroller of the Currency and</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H705808AD39A24824BF579B07E8291BE4"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>, and the Director of
the Office of Thrift Supervision</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB8E26BAA67BC40E2B59066445CA2927E"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 804</header><text display-inline="yes-display-inline">Section 804(a) of the Alternative Mortgage
Transaction Parity Act of 1982 (12 U.S.C. 3803(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2358744916484E76AD7F242889876AAC"><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="HC5330531B36A49399AD993A22A0E20E6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H45D510E5834740D296435D70E94C72AD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA111E67B1D7F41EEB166145B1FBA7710"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>;
and</quote> and inserting a period; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H168DB1B3F6A04552A4DFBB5A6920D91A"><enum>(3)</enum><text display-inline="yes-display-inline">by striking paragraph (3).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEF7FBC3540AA4CCF8522685A1F29B9B2" section-type="subsequent-section"><enum>1230.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5BC5342423CF46D3982C19A8F6BC7938" section-type="subsequent-section"><enum>1231.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0CAB3BBD32034B2BAFB8AE4599625132"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>national banks,</quote> and inserting <quote>national banks and federal
savings associations,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9652B5075EF949779EB92DFC5B3016D2"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H36FC0A791FBE494BBA665FC1C34912AF"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>,
and</quote> and inserting a period; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93A5CCE0A4FA4AB48DC379BC8839F4BF"><enum>(4)</enum><text display-inline="yes-display-inline">by striking paragraph (4).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H1E9BA8E27DC84BF68F7A027FC24E7150" section-type="subsequent-section"><enum>1232.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB86444349594D8C94A037A6A46339DC"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking
<quote>insured bank,</quote> and inserting <quote>insured bank
or</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H77BC60B05621423788DDFFA510A83A20"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Director of the Office
of Thrift Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D48A48673E34690A5A95F299E1CE885"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>, the Federal Savings
and Loan Insurance Corporation,</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H7AF3F76800B94221A8D13BF667E11914" section-type="subsequent-section"><enum>1233.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE23DEFE5ED145A1ADA24BC2E8863574"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H19A0BAC5D3114089AA08D9BAB59ABB6E"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1CC2ABAAC57B434EB02F52AA0B483575"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0AF835150B12478F9E1C02EDB12AD0E3" section-type="subsequent-section"><enum>1234.</enum><header display-inline="yes-display-inline">Amendments to the Depository Institution
Management Interlocks Act</header>
<subsection commented="no" display-inline="no-display-inline" id="HBD798A0E933A4EAAB0D156288C4020C9"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to section 207</header><text display-inline="yes-display-inline">Section 207 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3206) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8CC7576E4A5345BB9741DAD34BD0DC0D"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC90A2ACB6AD74536B34C9BC580F6973F"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3451E3F9DAF549D8B7882A310EBFE62E"><enum>(3)</enum><text display-inline="yes-display-inline">by striking paragraph (4); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6383E748DF044114A82EC75FA1D988C5"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB1BCB8F9C70A4C0EA5A9C72D40FB7F8B"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 209</header><text display-inline="yes-display-inline">Section 209 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3207) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2C3B5624F9ED4EB1A93363DE4C4D4BB8"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H629EE183AC914770BAF998096AA3A3CC"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC2ED058ED2644A65BAB0C076FFFF81A6"><enum>(3)</enum><text display-inline="yes-display-inline">at the end of paragraph (3), by inserting
<quote>and</quote> after the comma;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H873B6ADDAA65492C85904AAB43B5BB43"><enum>(4)</enum><text display-inline="yes-display-inline">by striking paragraph (4); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5FB692E349B14C64BD0BF4D041426692"><enum>(5)</enum><text display-inline="yes-display-inline">by redesignating paragraph (5) as paragraph
(4).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFDA5655D84454E6790919E5D9FE91DE8"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to section 210</header><text display-inline="yes-display-inline">Subsection 210(a) of the Depository
Institution Management Interlocks Act (12 U.S.C. 3208(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H21AC58D48EA5435BBF44C0F6CDAF4586"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>his</quote> and
inserting <quote>the</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8BA2FEA5C9B4DD48BB62E82C4941A94"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>of the Attorney
General</quote> after <quote>enforcement functions</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H18549E3467F84D879540501E5537F3B8" section-type="subsequent-section"><enum>1235.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA77E2989D68F4FD9BD2091A87B3135C8"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the <quote>Federal Home Loan
Bank Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EC76BC1FA8E429DB4F532418566C041"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the Federal Savings and
Loan Insurance Corporation,</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HBB6205A67C574391814A445BBAA59B65" section-type="subsequent-section"><enum>1236.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCF08373E721C4F98B6F134BAD62E92CA"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2889280A84EF42F3A42AA429612F7087"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (2); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2E8FDA209D4A458AA02EF0013B6F7C90"><enum>(3)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (3) through (9)
as paragraphs (2) through (8).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H8C947B7183924FA3878BCC8DB9034EC2" section-type="subsequent-section"><enum>1237.</enum><header display-inline="yes-display-inline">Amendments to the Federal Credit Union
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="HCE535F7C5CD74DA59B84CD7A80D5AB69"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 206</header><text display-inline="yes-display-inline">Section 206(g)(7) of the Federal Credit
Union Act (12 U.S.C. 1786(g)(7)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB4C5BF325BB4409CBF44119364F5EA1C"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H150D2FC90B8D4E479653DF1B6718922C"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (vi)—</text>
<clause commented="no" display-inline="no-display-inline" id="H14054DEC4D7D465984066801DBB7A455"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>Federal Housing Finance
Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H938C1D0D02BA4B6E944E73BF3B7D5EC8"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>; and</quote> and
inserting a period; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3CF3537B452C4EC5B8E915CCB98E56AF"><enum>(C)</enum><text display-inline="yes-display-inline">by striking clause (vii); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D5F1415DF8F4DD19D878EAEE805B339"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (D)—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBC263E0A4C364D6BA3C2888CCC245AEC"><enum>(C)</enum><text display-inline="yes-display-inline">by striking clause (v).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H8814906712EF4CAAB2ED13090711E75E" section-type="subsequent-section"><enum>1238.</enum><header display-inline="yes-display-inline">Amendments to the Federal Financial
Institutions Examination Council Act of 1978</header>
<subsection commented="no" display-inline="no-display-inline" id="HD0BD5E75262E4E12803896D6C6EADBD0"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to section 1002</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD2C4C7799B4242BE838E8BC0E4911D51"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 1003</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H68B50A05D47D4FA8A8757F2F84802847"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to section 1004</header><text display-inline="yes-display-inline">Section 1004(a) of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF00A396E854C4173A93C937E959B8D09"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (4); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2683614CEEA04AFEB708E6ACA8263134"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H487EB0EB7C87406993665B77C89BFE0C" section-type="subsequent-section"><enum>1239.</enum><header display-inline="yes-display-inline">Amendments to the Federal Home Loan Bank
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H50228C289BF64771B09771222570C91C"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 18</header><text display-inline="yes-display-inline">Section 18(c) of the Federal Home Loan Bank
Act (12 U.S.C. 1438(c)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFAB426BFEA40460884939D020037599F"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCB146696031447BBB6A384E194B5F840"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by striking <quote>and
the agencies under its administration or supervision</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A2734B850BF4635A5F1AD9C8E627966"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking <quote>and
such agencies</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H84DF35621B3847B3A6172945E35C2C26"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of section
21<enum-in-header>A</enum-in-header></header><text display-inline="yes-display-inline">Section 21A of the Federal Home Loan Bank
Act (12 U.S.C. 1441a) is hereby repealed.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H857A300094C24DA9B74429C21B9C5D32" section-type="subsequent-section"><enum>1240.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF7DE594C941744E4A8995DD160EAB3AC"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46E5ABF9A2104DB1B3142280255CD0EA"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H13CB18B8B6D647DC8CBDD7484329956E" section-type="subsequent-section"><enum>1241.</enum><header display-inline="yes-display-inline">Amendments to the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989</header>
<subsection commented="no" display-inline="no-display-inline" id="HC99A78EDBCF64B419FED09C953B02DD6"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 302</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28CBAA5AC4364093BE98358358E87686"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 305</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF2C92DD27DC44A948D8866F5248DDA81"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to section 308</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2EF4F8E0C02D411CADC67648F36DF951"><enum>(d)</enum><header display-inline="yes-display-inline">Amendments to section 402</header><text display-inline="yes-display-inline">Section 402 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1437 note) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA1FB8B1A6F4A4B07803CCA04F65C10E5"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8FF2919934544DAA8F1D7330D8E11074"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36D34A7044284C0684FC7C2E504A989F"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8DDDE23E245644F9A1B586B3A3143E23"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H550A34F5E227455EBFF5EB4487939017"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E8D29E90FA24E78BBA4554A040CAA31"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFAD5E75BF46A44D3843C43F6D3CC7A95"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H88F8572471344D33906FD1759185C210"><enum>(e)</enum><header display-inline="yes-display-inline">Amendment to section 1103</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9420391EF8B8427AA4C5F378BF95DD63"><enum>(f)</enum><header display-inline="yes-display-inline">Amendments to section 1205</header><text display-inline="yes-display-inline">Subsection 1205(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1818
note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8E5E63BD055443C6A7ECE81F7774F6C8"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H93A231CF7EE94E4C8D396DBD28F10375"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H123752504AF44C4CB0EE0C5B637F4DF3"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (D); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H60B5974BCD1F4AFD821CB4A4AC1F8290"><enum>(C)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (E) and (F)
as subparagraphs (D) and (E), respectively;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE0A9970EEF84526962A8AB76DE8AAC7"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>paragraph (1)(F)</quote> and inserting <quote>paragraph
(1)(E)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF07C6C4C2FCF4CD7B5C8BDD4426DDBE3"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>paragraph (1)(F)</quote> and inserting <quote>paragraph (1)(E)</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H35D60625AF2044FB8C3F493213857BCE"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>through (E)</quote> and inserting <quote>through (D)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF1F51704715242A3AF36E7FCC287BA81"><enum>(g)</enum><header display-inline="yes-display-inline">Amendments to section 1206</header><text display-inline="yes-display-inline">Section 1206(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b(a))
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFB92A0668D9445D2AD1BF74200DE5FBB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Oversight Board of
the Resolution Trust Corporation</quote> and inserting <quote>and</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBDB7B7556B1A41788724E2D5E6DD7767"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>, and the Office of
Thrift Supervision,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7158ECA0FD6740EABBBCD8831911F9C4"><enum>(h)</enum><header display-inline="yes-display-inline">Amendments to section 1216</header><text display-inline="yes-display-inline">Section 1216 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833e) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF307698933A646139DF0D805C5A1296E"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8106BFC20E54C5BBEB0C57CFF42770D"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraphs (2), (5), and
(6);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7D0C50013C47406F8E1FB1B2573D81C8"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE1A1089CBA049BD8E4A0B2C69EA9964"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2) (as redesignated), by
adding <quote>and</quote> at the end;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H46185220593C4484BF688D81ED2F7A53"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC651392C0B194F8A9A9F6C609D9FC365"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>the Director of the
Office of Thrift Supervision,</quote> and inserting <quote>and</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H012F46B360FB474BAF5BBB648A84C98D"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>, the Oversight Board of
the Resolution Trust Corporation, and the Resolution Trust Corporation</quote>;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A5461BA6EA3466CAE3BAF2AEA433A68"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H91F646105DC34698AEC987663E3B28FB"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraphs (3), (5), and (6);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFF352006767495EB8B4758BA69A8730"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (4), (7), and
(8) as paragraphs (3), (4), and (5), respectively.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H0E415D3FC2664CEBA948A3AF5A03958B" section-type="subsequent-section"><enum>1242.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H584E783DC5F94CE1ADD536F098F85861" section-type="subsequent-section"><enum>1243.</enum><header display-inline="yes-display-inline">Amendments to the Housing and Community
Development Act of 1992 and the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</header>
<subsection commented="no" display-inline="no-display-inline" id="H907FAB3E865C4CC5A075574BAD6743FD"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 543 of the Housing
and Community Development Act of 1992</header><text display-inline="yes-display-inline">Section 543 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1707 note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB9D10DD8AAB1470EB457B15E30AE32D0"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H144967752AD44C6DADD2A3AE723D1A36"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraphs (D) through (F);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4966DB2138154567AD268C0879756AB9"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (G) and (H)
as subparagraphs (D) and (E), respectively; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7DE5C473DCD146DFBB8E861CA068FC6A"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (f)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H06D2865E1BA84846A34B42061318A18F"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H3520E0075CBF47F0A8A866C1DD62A998"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>the Office of Thrift
Supervision,</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4459620D41FA4B97B6A88775C3D355E8"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking <quote>the
Office of Thrift Supervision,</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8ED2C5FDB87F4414B58826A8C3A8E5E3"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<clause commented="no" display-inline="no-display-inline" id="HB05DFAF21A2B4826BE93656883315BEB"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>the Office of Thrift
Supervision,</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H04639B1CEA9B439DA8916228581A7E58"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H101ACD8F1D594ECCB3E5E2FEB4EB5E86"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 1315 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H45218979311C45749A1B8ACAF0972FB3"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB373554526E448097DDEF9A294DF3E4" section-type="subsequent-section"><enum>1244.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FD06A7565844F41B92A225DF8850270" section-type="subsequent-section"><enum>1245.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H78681365E0F94F4DA8A5D9366B0EAE27"><enum>(1)</enum><text display-inline="yes-display-inline">by amending paragraph (5) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H922DC2DFCE4A4967A448367026C60100" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HCE63B79BBA9444D1A474709E2B83DFF4"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (6), by adding
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF4F3B33B5A9447178FA2987E22379BFA"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (7)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DA5CA591B7840DD8B50E65955FC0072"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or State savings
association</quote> after <quote>State bank</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCB9219EB40F94C2897B1595B0D14ECB7"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>; and</quote> and
inserting a period; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C9A0072F63C4E209DE896BE4134F550"><enum>(4)</enum><text display-inline="yes-display-inline">by striking paragraph (8).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HFA38DCE2A50E41A798D0FCC2DFA1EF77" section-type="subsequent-section"><enum>1246.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE061D6979C547C19EB269149AE7FA47" section-type="subsequent-section"><enum>1247.</enum><header display-inline="yes-display-inline">Amendments to the Balanced Budget and
Emergency Deficit Control Act of 1985</header>
<subsection commented="no" display-inline="no-display-inline" id="H4CAB187DE10B4427889547D410C9F61F"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 255</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FA075D534F249DDB54B56A40744059D"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 256</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8383844AAD464133AC90052AAD3E4CE2"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subparagraphs (C) and (G);
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2055F806B75040179322A57D71770942"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (D), (E),
(F), and (H) as subparagraphs (C) through (G), respectively.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H70979BB439484B948FEE7D3F805B00BE" section-type="subsequent-section"><enum>1248.</enum><header display-inline="yes-display-inline">Amendments to the Crime Control Act of
1990</header>
<subsection commented="no" display-inline="no-display-inline" id="H845AE601BCE4426F926A30B1A0EC05C9"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 2539</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H99E26BC72CDE4182AAA2556A281E2C9D"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 2554</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBD3253BD5A704E96854711B952FD4558" section-type="subsequent-section"><enum>1249.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB876D8644F894B98ADD0C8D36188E27D" section-type="subsequent-section"><enum>1250.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF49773044BA6446599A70F9EF40D2EDD" section-type="subsequent-section"><enum>1251.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1A1FCD0AC7C41C490E9BBD789390A78" section-type="subsequent-section"><enum>1252.</enum><header display-inline="yes-display-inline">Amendments to the Securities Exchange Act
of 1934</header>
<subsection commented="no" display-inline="no-display-inline" id="HD363B20D90FC4A5693877C8421BD1F66"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 3</header><text display-inline="yes-display-inline">Section 3(a)(34) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(34)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H357E3384688C419C89ADF058E96800DE"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA0D1AF65C7A54E228A49851DC0AC6DFB"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E704A74CD334AE89B49C8C2A1F988CD"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iii), by adding
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB5159DEA0DD9431D9D885F9253D1139E"><enum>(C)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBC8EA0C324194315BFB3326F7910E1D9"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause
(iv);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE676C181DAFC45A69B8E964FE3F5609B"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8DE384369B4341FEBDE5C75AE54E7C3B"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CC40DDAC4E240B8B57F720B0EB8BDE6"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iii), by adding
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD201DB5216D4D3791ECA5E38296627B"><enum>(C)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F4C042DA7144017BB7F32614CA78789"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause
(iv);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H689A777C11C64D27B217192E583662C8"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H50C6C42087864CACA7D8C976D38BFD3F"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFE1C95180C01455BA5F635191156D8F5"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iii), by adding
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBEF36D3006BE419E8A38EF17FFC605DF"><enum>(C)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H766F042C2D9946B7BED61962348439CC"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause (iv);
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0265D2FB6431447989E79341BD351E19"><enum>(4)</enum><text display-inline="yes-display-inline">in subparagraph (F)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F4300E1F0A249B280AE453BC06A9CA6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H632C444FE31647BEB0900A6B4AEF1403"><enum>(B)</enum><text display-inline="yes-display-inline">by striking clause (ii); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7E3A490DFA54EE2A8943820723B9AAF"><enum>(C)</enum><text display-inline="yes-display-inline">redesignating clauses (iii), (iv), and (v)
as clauses (ii), (iii) and (iv), respectively.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDD1DAB7813C04CC6AC9EA31CACB7FDD6"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 15C</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6247994F0AE54B829F846810B59E6D85" section-type="subsequent-section"><enum>1253.</enum><header display-inline="yes-display-inline">Amendments to title 18, United States
Code</header>
<subsection commented="no" display-inline="no-display-inline" id="H44E254409C2448E6B83140C792335C95"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to section 212</header><text display-inline="yes-display-inline">Section 212(c)(2) of title 18, United
States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5F19465DE08948CD988AA3876807FAAC"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subparagraph (C); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7BF395FA0C7B473DBE6908A1B3A726FF"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (D) through
(H) as subparagraphs (C) through (G), respectively.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAE5FABA1A2D34C42B9A4C900DD47B104"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to section 657</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H15EC6EE95D2D48FE8642A870468FD4D0"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to section 981</header><text display-inline="yes-display-inline">Section 981(a)(1)(D) of title 18, United
States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H44C4438EF7BE4907BB6931E720A58B09"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Resolution Trust
Corporation,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C8323164133480B8E6F0790C1FAE960"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or the Office of Thrift
Supervision</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H47098F944CD04DEC854E95421C498829"><enum>(d)</enum><header display-inline="yes-display-inline">Amendment to section 982</header><text display-inline="yes-display-inline">Section 982(a)(3) of title 18, United
States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC1C2FA4945664FD3A528439EB7154A5A"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Resolution Trust
Corporation,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1E18B257BB864F6EBED75CF8DD4C55F1"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or the Office of Thrift
Supervision</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6C3999377E404DAAAC73BE2529436022"><enum>(e)</enum><header display-inline="yes-display-inline">Amendment to section 1006</header><text display-inline="yes-display-inline">Section 1006 of title 18, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H218C3407FB3643B29062231349DE4CBB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Office of Thrift
Supervision,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H190AABBB4C664D85A5396335068C0BDA"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the Resolution Trust
Corporation,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB9F1064806454C9B928FFD120DA16FB6"><enum>(f)</enum><header display-inline="yes-display-inline">Amendment to section 1014</header><text display-inline="yes-display-inline">Section 1014 of title 18, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8F4D4D0461354DDF962DBC000B013068"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Office of Thrift
Supervision,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE4096DEC172243F7A228D561A00174FE"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the Resolution Trust
Corporation,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDCE1FB458C3549A38A3F84AFD612AA0F"><enum>(g)</enum><header display-inline="yes-display-inline">Amendment to section 1032</header><text display-inline="yes-display-inline">Section 1032(1) of title 18, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H54458761356B488CB3CACE4106626467"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Resolution Trust
Corporation,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93C9AAE5D2B9432A96E8B1E196BD1A74"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or the Director of the
Office of Thrift Supervision</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HE4565B57A08B48E085E36CCCAEA6580F" section-type="subsequent-section"><enum>1254.</enum><header display-inline="yes-display-inline">Amendments to title 31, United States
Code</header>
<subsection commented="no" display-inline="no-display-inline" id="H4DEBE17A05ED4C389445A3B38BE54584"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to section 309</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3B099819B6F7411789C66D29E37D218F" section-type="subsequent-section"><enum>309.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFC24C6B732346EF8F4113BEEADC57F8"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 321</header><text display-inline="yes-display-inline">Section 321 of title 31, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A77D3BA8FC94E529E6C35A4438C7385"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H63634E2B719046FBAEA075E7B48C7013"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by adding
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H866BA802B9CE4308B50B64875D38657A"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>;
and</quote> and inserting a period; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1C86D8DECFAB4AC497715D810AEEA305"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3606A389C82E4F209436639B9188B285"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (e).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1F867129A8524F6F9AA85E5163AB1FB7"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to section 714</header><text display-inline="yes-display-inline">Section 714 of title 31, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3BE80582169C438E8828738DE3CB7966"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2ADE6E34D4B14309AAB794CD035105CB"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H22D630653FB44944990EE1607EB9D3DB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2A2A1A0F8A72479ABFC4FBECD7C6D2F7"><enum>(f)</enum><header display-inline="yes-display-inline">Audit and report of the Federal Reserve
System</header>
<paragraph commented="no" display-inline="no-display-inline" id="H374C05D9BDBE49F19E8005C085B7BFF8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBE9409FDB82C4BE2B566FF57FD5E9B48"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2E06BD5FE0F44C01A1494829D782F4FF"><enum>(A)</enum><header display-inline="yes-display-inline">Required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0D3CD1CA5C1F41FC8AA5D07842BF1C97"><enum>(i)</enum><text display-inline="yes-display-inline">the Speaker of the House of
Representatives;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H280C58402049430991DF65736C56EFE3"><enum>(ii)</enum><text display-inline="yes-display-inline">the majority and minority leaders of the
House of Representatives;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFE49EE3AF2134B93AD22E60331297C19"><enum>(iii)</enum><text display-inline="yes-display-inline">the majority and minority leaders of the
Senate;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA3D81F130ADD4A5B9FAC38D8CE903D1C"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1C848568FFFF4563A1536097C60CA499"><enum>(v)</enum><text display-inline="yes-display-inline">any other Member of Congress who requests
it.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5A79FF4D08F14F47A837C41F3E3F368A"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5FD256F4C0BB4274AA8DE32522EC8DFB"><enum>(3)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-display-inline">Nothing in this subsection shall be
construed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H13E64C8DBFCD4C0BB273A0754E0420F9"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H9B590E1AB02541F2AC49504820F2D793" section-type="subsequent-section"><enum>1255.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 decreases 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 commented="no" display-inline="no-display-inline" id="HEC838B9205EE44D585AA7E9B67D3144D" section-type="subsequent-section"><enum>1256.</enum><header display-inline="yes-display-inline">Transfer of authority to the Board with
respect to savings and loan holding companies</header>
<subsection commented="no" display-inline="no-display-inline" id="HD62B5CCDDF8D4FF2B3CAECFA27184800"><enum>(a)</enum><header display-inline="yes-display-inline">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 a fraternal
beneficiary society, as defined in section 501(c)(8) of the Internal Revenue
Code of 1986, or a company that is, together with all of its affiliates on a
consolidated basis, predominantly engaged in the business of insurance are
transferred to the Board.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H20AEC8FFB29B4EBE96C9A9ECCBE3781F"><enum>(b)</enum><header display-inline="yes-display-inline">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 a fraternal
beneficiary society, as defined in section 501(c)(8) of the Internal Revenue
Code of 1986, or a company that is, together with all of its affiliates 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 commented="no" display-inline="no-display-inline" id="H042749676F25486F8063F42BFC3AA69D"><enum>(c)</enum><header display-inline="yes-display-inline">Savings and loan holding company
defined</header><text display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="H173651C520F4466DBD48892FAA69296D" section-type="subsequent-section"><enum>1257.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this subtitle, the amendments made by sections 1221 through section
1253 and 1256 and subsections (a), (b), and (c)(1) of section 1254 shall take
effect on the transfer date.</text>
</section></subtitle><subtitle commented="no" id="HAA9E35FC679540CDACF2BDC4F6EC7004" level-type="subsequent"><enum>D</enum><header display-inline="yes-display-inline">Further improvements to the regulation of
bank holding companies and depository institutions</header>
<section commented="no" display-inline="no-display-inline" id="HE9F6F9F2AE374140A5E73D23BA0C84CC" section-type="subsequent-section"><enum>1301.</enum><header display-inline="yes-display-inline">Treatment of industrial loan companies,
savings associations, and certain other companies under the bank holding
company act</header>
<subsection commented="no" display-inline="no-display-inline" id="H07B83F6D62B64D98B57165B6B1E4CFBB"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H76EAA795D4434B029EEC72CF6FB410D1"><enum>(a)</enum><header display-inline="yes-display-inline">Bank holding company</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAD185B4093CD41CCAE89A5B6D4D7C58D"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCE30E9394997403CA439549E705361F6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H226DA2CE486E424F949291D33D0FA2B8"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H63D080D85663488A8FA675D00D2ECDA8"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a)(5), by adding at the end
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6B94A8D255C041FC9AC3910C2730721B" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA78FB95820D24C98844C07631A6DD517"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0449C289C18B457882DEA0456425CE9C"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6F732231564247C49C4907782DD1528B"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (c)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 a
fraternal beneficiary society, as defined in section 501(c)(8) of the Internal
Revenue Code of 1986, or a company that is, together with all of its affiliates
on a consolidated basis, predominantly engaged in the business of
insurance</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H563C91127C89421F9BEEA22FACDC1770"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (F)(i), by inserting before
the semicolon the following: <quote>, including issuing credit cards and other
credit devices (including virtual or intangible devices) that function as
credit cards</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H342F2EEC095644DF9F0296926E10BDD0"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (F)(v), by inserting before
the semicolon the following: <quote>, other than loans that otherwise meet the
requirements of this subparagraph and are made to businesses that meet the
criteria for a small business concern to be eligible for business loans under
regulations established by the Small Business Administration under part 121 of
title 13, Code of Federal Regulations</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8818334AB9EE4E689C059EF84444A236"><enum>(D)</enum><text display-inline="yes-display-inline">by striking subparagraph (H) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H1B31756FDF0F44C786D98FAD52665851" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1F1546426F274E369BFDCC0CF0326A40"><enum>(H)</enum><text display-inline="yes-display-inline">An industrial loan company, industrial
bank, or other similar institution which—</text>
<clause commented="no" display-inline="no-display-inline" id="H2CF702421C8445A4A2E6AF8E078F4079"><enum>(i)</enum><text display-inline="yes-display-inline">is an institution organized under the laws
of a State which, on March 5, 1987, had in effect or had under consideration in
such State's legislature a statute which required or would require such
institution to obtain insurance under the Federal Deposit Insurance Act;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF7825A800A234F5395A986274404FD49"><enum>(ii)</enum><text display-inline="yes-display-inline">either—</text>
<subclause commented="no" display-inline="no-display-inline" id="H67FC0AB43A5149C499BB70944F2A9690"><enum>(I)</enum><text display-inline="yes-display-inline">does not accept demand deposits that the
depositor may withdraw by check or similar means for payment to third
parties;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB623A3F09054445A98A0BDEA512233A2"><enum>(II)</enum><text display-inline="yes-display-inline">has total assets of less than $100,000,000;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC88BA93E614547DF8DD55A0CE64ED2EE"><enum>(III)</enum><text display-inline="yes-display-inline">the control of which is not acquired by any
company after August 10, 1987;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4203D505A6984444BB57FF4521658A75"><enum>(iii)</enum><text display-inline="yes-display-inline">predominantly provides financial products
and services to current and former members of the military and their families;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H55E70A53E1D74EFBAA492D3623167C71"><enum>(iv)</enum><text display-inline="yes-display-inline">is controlled by a savings and loan holding
company, as defined in section 10(a) of the Home Owners’ Loan Act.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">This subparagraph shall cease to
apply to any institution which permits any overdraft (including any intraday
overdraft), or which incurs any such overdraft in such institution's account at
a Federal Reserve bank, on behalf of an affiliate, if such overdraft is not the
result of an inadvertent computer or accounting error that is beyond the
control of both the institution and the affiliate, or that is otherwise
permissible for a bank controlled by a company described in section 1843(f)(1)
of this title.</continuation-text></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6B4DD7EAAE014C239F3A28DE0A558BE5"><enum>(5)</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="H9D0B1B522F3E402F84CE334BEA5926A4" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7CC01DA53E6C4B1F85F8FEAAAB7EFDA6"><enum>(r)</enum><header display-inline="yes-display-inline">Section 6 holding companies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE14227CEAB347E9B104F27904E0F50F"><enum>(b)</enum><header display-inline="yes-display-inline">Nonbanking activities
exceptions</header><text display-inline="yes-display-inline">Section 4 of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3D87502FE8474EED8F958D3E041434E0"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CC912E061B54567A7CEEC4635539E4F"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (f)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H35183BD127F648DD886343E8222B8C61"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii), by striking
<quote>; or</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1CCDD30B085C4D939FE4F7AAABEFCA10"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking the period
and inserting <quote>; or</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA6C0BA9B9C414AEFA1D0E6B1EC0660E7"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H60724192EFC8453A9913FF7073E2D558" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1DDC0FEAF9D44C558D0C3E4F10EA2D87"><enum>(D)</enum><text display-inline="yes-display-inline">such company fails to—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF17BFEF808784F349619AC2ADA47C1A0"><enum>(ii)</enum><text display-inline="yes-display-inline">conduct all such activities which are
permissible for a financial holding company, as determined under section 4(k),
through such section 6 holding company, other than—</text>
<subclause commented="no" display-inline="no-display-inline" id="HDD28145C1A184CE9BFB1129353449DCC"><enum>(I)</enum><text display-inline="yes-display-inline">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 the 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; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HCBAD5F311AD348BBAA1480A4A916E2D3"><enum>(II)</enum><text display-inline="yes-display-inline">financial activities involving the
provision of credit for the purchase or lease of products or services from an
affiliate or for the purchase or lease of products produced by an affiliate of
such section 6 holding company that is not a subsidiary of such section six
holding company, in accordance with regulations prescribed by or orders issued
by the Board, pursuant to section 6 of this
Act.</text>
</subclause></clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H153D9F6BB73D4EAFA80578DA52C6607B"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="H4173C63ECB6546F9A4A30925323B7E09" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H5B16B7902EA840639E8558A24B30D7C0"><enum>(p)</enum><header display-inline="yes-display-inline">Certain companies not subject to this
act</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD938A88832264348AFEE087C3100FEB5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraphs (6) and
(7), any company which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H09A8DBC4C269491F8A3DC94BF9258CE4"><enum>(A)</enum><text display-inline="yes-display-inline">was—</text>
<clause commented="no" display-inline="no-display-inline" id="H4341A668790746FCA949619848F9A69C"><enum>(i)</enum><text display-inline="yes-display-inline">on the date of enactment of the Financial
Stability Improvement Act of 2009, a unitary savings and loan holding company
that continues to control not fewer than one savings association that it
controlled on May 4, 1999, or that it acquired pursuant to an application
pending before the Office of Thrift Supervision on or before that date, and
that became a bank for purposes of the Bank Holding Company Act as a result of
the enactment of section 1301(a)(3) of the Financial Stability Improvement Act
of 2009; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H61A3C7C2F9C4492A9B0177E0073905C5"><enum>(ii)</enum><text display-inline="yes-display-inline">on November 23, 2009—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1096133334634DA782C61E1990B1C826"><enum>(I)</enum><text display-inline="yes-display-inline">controlled an institution which became a
bank as a result of the enactment of section 1301(a)(4)(B) of the Financial
Stability Improvement Act of 2009;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA0225F87921146CA944952E534FEB108"><enum>(aa)</enum><text display-inline="yes-display-inline">that is a federally insured,
State-chartered depository institution;</text>
</item><item commented="no" display-inline="no-display-inline" id="H84FE21DC8F8B4D5CAA1348F56DB97A27"><enum>(bb)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H728696E828BC48D793416BCECC3A1437"><enum>(cc)</enum><text display-inline="yes-display-inline">that—</text>
<subitem commented="no" display-inline="no-display-inline" id="H9765C3D76E7943E0B7C538CFC1D82F36"><enum>(AA)</enum><text display-inline="yes-display-inline">does not accept demand deposits that the
depositor may withdraw by check or similar means for payment to third parties;
or</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H2090E8AA1AE843F9BBF57F7B211ACCAF"><enum>(BB)</enum><text display-inline="yes-display-inline">maintains total assets of less than
$100,000,000; or</text>
</subitem></item></subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H429133A92EE140B6B60884D37C4A5493"><enum>(B)</enum><text display-inline="yes-display-inline">was not on June 30, 2009—</text>
<clause commented="no" display-inline="no-display-inline" id="H03B97476A36B4AD8842AA0DC89BA3702"><enum>(i)</enum><text display-inline="yes-display-inline">a bank holding company; or</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H2C8E0134DB4C4BD09FA29917261A5FF2"><enum>(2)</enum><header display-inline="yes-display-inline">Loss of exemption</header><text display-inline="yes-display-inline">A company described in paragraph (1) shall
no longer qualify for the exemption provided under that paragraph if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H40CBE8F5D8954778905C6BA5AE6A87E9"><enum>(A)</enum><text display-inline="yes-display-inline">such company fails to—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2B1C04455C0445D6879AC38A45BFBD48"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD6DCF76AAD664BD8B3C724AAFC384AE9"><enum>(i)</enum><text display-inline="yes-display-inline">shares held as a bona fide fiduciary
(whether with or without the sole discretion to vote such shares);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5BE7197F7B69463C85434FB0C1F68E11"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H70F416DA776F4F0E80B1DC50A022562B"><enum>(iii)</enum><text display-inline="yes-display-inline">shares held temporarily pursuant to an
underwriting commitment in the normal course of an underwriting
business;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H57A10001D24944EBAE24BABB347ADADB"><enum>(iv)</enum><text display-inline="yes-display-inline">shares held in an account solely for
trading purposes;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H364D071E2BA748EB9D3F3F803B6138B8"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE7B0D79982514F7C8580B376A672CDCD"><enum>(vi)</enum><text display-inline="yes-display-inline">loans or other accounts receivable acquired
from an insured depository institution in the normal course of business;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF28B847274AA4B328D9CEA7617A3FE3C"><enum>(vii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HEF8A466D86264F6A990F90322EC1CC73"><enum>(ix)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE1D0F24C1D9E4F32866ADE7C1E8257C5"><enum>(x)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA0008DB54C6245839781511111567E32"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H71E088B798B84A009FC271EA19B16356"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H809DD615CCBA4747AD06DD9D0865F21C" indent="up1"><enum>(I)</enum><text display-inline="yes-display-inline">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);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC94414C60AA6400287B938492D4ECD4D" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">a change of control of an industrial bank,
its section 6 holding company, or any entity that directly or indirectly
controls the industrial bank, in a transaction other than a merger described in
subclause (I), by an acquiring company that is predominately engaged in
activities not permissible for a financial holding company pursuant to
subsection (k), if—</text>
<item commented="no" display-inline="no-display-inline" id="H068AE8BA5B9046BCA00EE1FE19D3FB0F"><enum>(aa)</enum><text display-inline="yes-display-inline">the transaction is approved by the
appropriate Federal banking agency and the Board; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H19EF9E0C2926407EB88090C77ED2FCDE"><enum>(bb)</enum><text display-inline="yes-display-inline">the industrial bank does not thereafter
establish a domestic branch as defined in section 3(o) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(o));</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H086224407E914DF19BE27BB690E8C458"><enum>(III)</enum><text display-inline="yes-display-inline">an inadvertent acquisition of control, as
determined by the Board, if such inadvertent acquisition of control is reversed
or rectified within 180 days of its discovery; or</text>
<subclause commented="no" display-inline="no-display-inline" id="H97851ACB358045B0AF7F59DF8E8F15F4" indent="up1"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8FD9EFB9455B461DB8B4E34387D7CEBB" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HECF2D356CD3C47FB85AC8338E71DF5BE"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAAE982223EBA440BB9250005721946E9"><enum>(3)</enum><header display-inline="yes-display-inline">Divestiture in case of loss of
exemption</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H61CEDD50ADFF4BFDACDB7BC6AA3F7705"><enum>(A)</enum><text display-inline="yes-display-inline">either—</text>
<clause commented="no" display-inline="no-display-inline" id="H4BBA1CEBB2EF4058A8BCCB0EF57C7E2C"><enum>(i)</enum><text display-inline="yes-display-inline">corrected the condition or ceased the
activity that caused the company to fail to continue to qualify for the
exemption; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7555E7A0DBEC49FCA8D458466FB21291"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4B5480B4515459E9C244DF13B773131"><enum>(B)</enum><text display-inline="yes-display-inline">implemented procedures that are reasonably
adapted to avoid the reoccurrence of such condition or activity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB3F281EC15D4584B709634C6A2CCFFC"><enum>(4)</enum><header display-inline="yes-display-inline">Subsection ceases to apply under certain
circumstances</header><text display-inline="yes-display-inline">This subsection
shall cease to apply to any company described in paragraph (1) if such
company—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H682D47B25D864452936083EE30432416"><enum>(A)</enum><text display-inline="yes-display-inline">registers as a bank holding company under
section 2(a) of this Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4071C405533D451EBE4BD485D32B35B6"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1F468F40D38E409EBD1326A3D9364138"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBAE0C8FCA63240D097C94879FEF48F41"><enum>(5)</enum><header display-inline="yes-display-inline">Information requirement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H30462E8C235B432DAEAAFDDF785F1070"><enum>(6)</enum><header display-inline="yes-display-inline">Examinations and reports</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H19B53115D97944B0BF30DFF3B71CB536"><enum>(7)</enum><header display-inline="yes-display-inline">Limited enforcement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0BB915860FC24C19AA343ABF648EFA30"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9D0EE33A11E548849385DA5D1D3B1E94"><enum>(B)</enum><header display-inline="yes-display-inline">Application of other act</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A9EC0C6D2D94F55AF7F37824BB8CBE6"><enum>(C)</enum><header display-inline="yes-display-inline">No effect on other authority</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H6C8DF0DE81B44735B135E7EC1A6CB71A"><enum>(8)</enum><header display-inline="yes-display-inline">Unitary savings and loan holding company
defined</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <quote>unitary savings and loan holding company</quote>
means a company that was a savings and loan holding company on May 4, 1999 (as
then defined), or that became a savings and loan holding company pursuant to an
application pending before the Office of Thrift Supervision on or before that
date, and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9B6FF252572447E198F3407275C6AC10"><enum>(A)</enum><text display-inline="yes-display-inline">that controls—</text>
<clause commented="no" display-inline="no-display-inline" id="H228306F99FFE4010ADF3907888A0D7A7"><enum>(i)</enum><text display-inline="yes-display-inline">only 1 savings association; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDEC75A146F7A40619399F8D4EABEA6C9"><enum>(ii)</enum><text display-inline="yes-display-inline">more than 1 savings association, if all, or
all but 1, of the savings association subsidiaries of such company were
initially acquired by the company pursuant to a supervisory transaction under
section 1823(c), 1823(i), or 1823(k) of this title, or section 408(m) of the
National Housing Act (12 U.S.C. 1730a(m));</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B194F6771CB495FAB404E7FA03B8FB3"><enum>(B)</enum><text display-inline="yes-display-inline">all of the savings association subsidiaries
of such company are qualified thrift lenders (as determined under section 10 of
the Home Owners’ Loan Act); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H38513FD9276D4254B6C2F6F22E6F332F"><enum>(C)</enum><text display-inline="yes-display-inline">that continues to control not fewer than 1
savings association that it controlled on May 4, 1999, or that it acquired
pursuant to an application pending before the Office of Thrift Supervision on
or before that date.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCBA4FF48961948F7AAB34489C8223BDB"><enum>(q)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD088D0A2EF744500A856CDAA38CD5713"><enum>(1)</enum><text display-inline="yes-display-inline">Furnishing or performing management
services for a savings association subsidiary of such company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H71FC2C1441D945AE94C843F7C1E33FE7"><enum>(2)</enum><text display-inline="yes-display-inline">Conducting an insurance agency or escrow
business.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H26A2746D18B74783B41FFABE29B45198"><enum>(3)</enum><text display-inline="yes-display-inline">Holding, managing, or liquidating assets
owned or acquired from a savings association subsidiary of such company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0469E6E15BC54731A6906161B077D5A7"><enum>(4)</enum><text display-inline="yes-display-inline">Holding or managing properties used or
occupied by a savings association subsidiary of such company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H377093405A2945ADB574AB9BF87B2C00"><enum>(5)</enum><text display-inline="yes-display-inline">Acting as trustee under deed of
trust.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H430D38E87F62434987C6D858A6145D6D"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4367CBC0ED1E43EA9B6B788934B93ADE"><enum>(c)</enum><header display-inline="yes-display-inline">Section 6 holding companies</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H12E7275412D54BF3B9CDFBE940E2C11F" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H19D4819C2A874D30AACD415A6CCFE014" section-type="subsequent-section"><enum>6.</enum><header display-inline="yes-display-inline">Special-purpose holding companies</header>
<subsection commented="no" display-inline="no-display-inline" id="HB3D3BD0A38264CACBD1EDFE8D9E6A4B1"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment, purpose and requirements of
special purpose holding companies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H05946D15A9414723B1269C7C8C2E6790"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB5A3D89F88E941809656B7C2741B0A5B"><enum>(A)</enum><text display-inline="yes-display-inline">described in section 4(f)(1) as required by
section 4(f)(2)(D) of this Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7F1B13DD76464280B5B5AA381482C99A"><enum>(B)</enum><text display-inline="yes-display-inline">described in section 4(p)(1) as required by
section 4(p)(2)(A) of this Act; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H000AE01018AD4BA78460D2FE0DA26C93"><enum>(C)</enum><text display-inline="yes-display-inline">that—</text>
<clause commented="no" display-inline="no-display-inline" id="HB6794F9DD6DB4280BBF6C4185A59A3E8"><enum>(i)</enum><text display-inline="yes-display-inline">is subject to stricter prudential standards
under section 1103 of the Financial Stability Improvement Act of 2009;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5D1E9B1EA37446769070B4AADAD83F81"><enum>(ii)</enum><text display-inline="yes-display-inline">is not—</text>
<subclause commented="no" display-inline="no-display-inline" id="H4099252F2DE7421181CFB83BD554C691"><enum>(I)</enum><text display-inline="yes-display-inline">a bank holding company; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB91E6410B23D44FC9FCCDD793E2C34AC"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF9DE3BEFE616448B81821CF89729DA2F"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F4C47E1F3E6466A9FB17F6348165EA6"><enum>(2)</enum><header display-inline="yes-display-inline">Purpose</header>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC8DB4193AA89470C9BA1E946A18F7EB4"><enum>(B)</enum><text display-inline="yes-display-inline">A company that is required to form a
section a section 6 holding company shall conduct all such activities which are
permissible for a financial holding company, as determined under section 4(k),
through such section 6 holding company, other than—</text>
<clause commented="no" display-inline="no-display-inline" id="H114DD42A34E74ABAA75BEBEC666BC1A4"><enum>(i)</enum><text display-inline="yes-display-inline">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 the at least <fraction>2/3</fraction> of the assets or
<fraction>2/3</fraction> of the revenues generated from the activity are from
or attributable to the 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; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC224F08F4A334EA095AC88712A150A49"><enum>(ii)</enum><text display-inline="yes-display-inline">financial activities involving the
provision of credit for the purchase or lease of products or services from an
affiliate or for the purchase or lease of products produced by an affiliate of
such section 6 holding company that is not a subsidiary of such section 6
holding company, in accordance with regulations prescribed by or orders issued
by the Board, pursuant to section 6 of this Act.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA32EBFA1F3224624AADCB4E0FF0BEE31"><enum>(3)</enum><header display-inline="yes-display-inline">Registration</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H792B027CCDFA4EA281F529359F577592"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H516876F2C7E042D4B525B59F35FF80D5"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0E7FCD3EC6CC46749ECF754AA2609DE1"><enum>(C)</enum><text display-inline="yes-display-inline">A section 6 holding company required to be
established by a company described in paragraph (1)(C) shall be—</text>
<clause commented="no" display-inline="no-display-inline" id="H7F059A2D4DB44A69ACC072FF11DF52DB"><enum>(i)</enum><text display-inline="yes-display-inline">established, and such company shall
register with the Board 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 section 1103 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 commented="no" display-inline="no-display-inline" id="H8F02536431EA46D5AE1D698A9F27349A"><enum>(ii)</enum><text display-inline="yes-display-inline">subject to the provisions of this Act and
other Federal law as provided in section 1103(g) of the Financial Stability
Improvement Act of 2009; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9B2FDD4FF0A842EEB32DD1D1F6BEE189"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF84CBD1DE254EFA9BB770764A0012FA"><enum>(4)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4700C208BDF844D18162292998EDB6B1"><enum>(5)</enum><header display-inline="yes-display-inline">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 section
1103 of the Financial Stability Improvement Act of 2009, shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF1A9799F1D0C4977A0E833059F279351"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H718EDC8B12CA48828FB1E2D2105B8866"><enum>(B)</enum><text display-inline="yes-display-inline">not be subject to this Act, except for such
provisions as are explicitly made applicable in this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3EB36983D8E146A6B25C541AD0E64748"><enum>(6)</enum><header display-inline="yes-display-inline">Board authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F049B627F1E42C3B3E402F60082FCEC"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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) and financial activities involving the provision of credit
for the purchase or lease of products or services from an affiliate or for the
purchase or lease of products produced by an affiliate of such section 6
holding company that is not a subsidiary of such section 6 holding company,
through such section 6 holding company, if the Board makes a finding that such
exemption—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA7BB4CF55699451BBDC4E3D7F30D6952"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="H2DACDB4B4CA5453DBBEFF8F487157110"><enum>(aa)</enum><text display-inline="yes-display-inline">would facilitate the extension of credit to
individuals, households, and businesses; or</text>
</item><item commented="no" display-inline="no-display-inline" id="H524C7B67DA8A4BE1BB28DDDD5733E7D4" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40CD139E0E354AECAEB1BC6C60E2C9C6"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H231CD0133E2F48C9A8C33CBF7C93D2E6"><enum>(III)</enum><text display-inline="yes-display-inline">would not increase systemic risk or
threaten the stability of the overall financial system;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC6CA43B1A12049B1A6B03EF0F261DCE5"><enum>(B)</enum><header display-inline="yes-display-inline">Parent company reports</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC15F7C522574107A03AAA928C242E80"><enum>(C)</enum><header display-inline="yes-display-inline">Limited parent company enforcement</header>
<clause commented="no" display-inline="no-display-inline" id="H37399C6134734BC3B60B3E3521205141"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H65007116AC184DE098257AFEBB16D479"><enum>(ii)</enum><header display-inline="yes-display-inline">Application of other act</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4CC6AF15A8164FC999E8D1B028CD56B4"><enum>(iii)</enum><header display-inline="yes-display-inline">No effect on other authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F4858F3C9FA4B78BDD804152F84D4D6"><enum>(b)</enum><header display-inline="yes-display-inline">Restrictions on affiliate
transactions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF3B22D7A37A1480BB42876585A89C318"><enum>(1)</enum><header display-inline="yes-display-inline">Section 23A and 23B applicability</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H89C115D5A8A747AD964747911ED5AEF4"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6D3587F404FF4A719B40DF798A69F1B6"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DC2E286391E4670AC64D2E57E9C1D19"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD61EDE5419FC48BB91DB70B721798F3A"><enum>(c)</enum><header display-inline="yes-display-inline">Tying provisions</header><text display-inline="yes-display-inline">A company that directly or indirectly
controls a section 6 holding company shall be—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H05998FFF5CCA4F17BE1F4A3CA00B220B"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H70E785B4C7C94E8DAFDEA1F790464344"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5E38C3649DE499A9259BCBBF33B865E"><enum>(d)</enum><header display-inline="yes-display-inline">Financial holding company
requirements</header><text display-inline="yes-display-inline">A section 6
holding company shall be subject to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3780E2DB00024E8995B73FBEE4CA8897"><enum>(1)</enum><text display-inline="yes-display-inline">the conditions for engaging in expanded
financial activities in section 4(l); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFBDB8D7B4BFA45FD8BEC7F1D791FDEF7"><enum>(2)</enum><text display-inline="yes-display-inline">the provisions applicable to financial
holding companies that fail to meet certain requirements in section
4(m).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H815269F0DA4B455382D6E4CA4DE2E0FF"><enum>(e)</enum><header display-inline="yes-display-inline">Independence of section 6 holding
company</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6E686D51185349F48EF18DF3886AA18E"><enum>(1)</enum><text display-inline="yes-display-inline">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 2-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 commented="no" display-inline="no-display-inline" id="H9321B63AD62B4EB2910D5A15ADDE8591"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF3464FE72EF44C4A8FFC23627263F934"><enum>(f)</enum><header display-inline="yes-display-inline">Source of strength</header><text display-inline="yes-display-inline">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></section><section commented="no" display-inline="no-display-inline" id="H8CD20046CC3344698B224C9F9C3E9961" section-type="subsequent-section"><enum>1302.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H21C92108B10C417CA5F8D26B50D933F1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2D62FB36C1D74394BB26EC8CA012CE33"><enum>(h)</enum><header display-inline="yes-display-inline">Conversion to bank holding company by
operation of law</header>
<paragraph commented="no" display-inline="no-display-inline" id="H07E513095E4444769BB8214435C46E65"><enum>(1)</enum><header display-inline="yes-display-inline">Conversion by operation of
law</header><text display-inline="yes-display-inline">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 section 1301 of
the Financial Stability Improvement Act of 2009 becomes a bank holding company,
other than a section 6 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 commented="no" display-inline="no-display-inline" id="H00FB38F3DE8848BCA844F52CAAAEC548"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance with bank holding company
act</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A79CCA04ACB472387F38A8502E4BB1B" section-type="subsequent-section"><enum>1303.</enum><header display-inline="yes-display-inline">Reports and examinations of bank holding
companies; regulation of functionally regulated subsidiaries</header>
<subsection commented="no" display-inline="no-display-inline" id="H18BDBE9B65FD4F6190CB310CED67637D"><enum>(a)</enum><header display-inline="yes-display-inline">Reports of bank holding
companies</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HDB415B9FF20C4735B865067E46796544" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8C1E29689A9B4B5081B556E9EBD40EA3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H565B1861605144CB8C25F5FC733E8221"><enum>(B)</enum><header display-inline="yes-display-inline">Use of existing reports</header>
<clause commented="no" display-inline="no-display-inline" id="HE58E1A0CDE7F4C98A342BD97F466D742"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Board shall, to the fullest extent
possible, use—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2B08121A57144A5CACC1BD3F7E7EFF10"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD950DD00843748D4932033BADEFAAAC0"><enum>(II)</enum><text display-inline="yes-display-inline">information that is otherwise required to
be reported publicly; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H25D9985145DD426D87432BD61F46FF00"><enum>(III)</enum><text display-inline="yes-display-inline">externally audited financial
statements.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2EABD6EC22134C50968BA5E172B3A45F"><enum>(ii)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE71372FA14F3485BBA16D192DC8737E5"><enum>(b)</enum><header display-inline="yes-display-inline">Functionally regulated
subsidiary</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H38F982F593E7486E8B3F781A09167339" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H7EB4356C920046A6A43294B0773E16D7"><enum>(C)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H349D3173C32145639158B8F725B1617F"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC88B5F42A0E74896BCE9078A903A0F2B"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A9A03591DB6442A97A68EC16BA93C54"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBC1F1905049455BB9561D1BE4BBD14A"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9C90DE7D882C4EECBDED40EFA66BD667"><enum>(c)</enum><header display-inline="yes-display-inline">Examinations of bank holding
companies</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H143095C76E724DF5AABFFDCEB4DE7E4C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H2D18F03E7AFF46F69E11DCAFBF9CF7BF"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HECA49E8EA270400D89279E023ED5372E"><enum>(B)</enum><header display-inline="yes-display-inline">Functionally regulated and depository
institution subsidiaries</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28F84C302F0347089F34E983D52E328D"><enum>(d)</enum><header display-inline="yes-display-inline">Regulation of financial holding
companies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93070F85705744CDAE727606A805BD2D"><enum>(e)</enum><header display-inline="yes-display-inline">Authority to regulate functionally
regulated subsidiaries of bank holding companies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1CE73B78C3C84FE69C3DDD488352DE62" section-type="subsequent-section"><enum>1304.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB4533C68351049E88A945D4C4A5DCC71"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>and</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA446DE6D846143C59020251298BFF4B3"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (C) as
subparagraph (D);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BC895092B884E2896554875666D444F"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (B) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HA2DDEE09AF0B4512991D5790E183E839" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE9EBDD829F384020AB55DCFF77A8B590"><enum>(C)</enum><text display-inline="yes-display-inline">the bank holding company is well
capitalized and well managed; and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H55937029EDC04193A7D4005E4C9E09C2"><enum>(4)</enum><text display-inline="yes-display-inline">in subparagraph (D) (as so redesignated) by
amending clause (ii) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HB9E93312BBBC4ABE8098A392B53E7EC5" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H514E6707130D471BB5406F507CDBB9C2"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE3B590FFA6940CFBFAC6BE069640E8F" section-type="subsequent-section"><enum>1305.</enum><header display-inline="yes-display-inline">Standards for interstate
acquisitions</header>
<subsection commented="no" display-inline="no-display-inline" id="H440F54435B144AF5846862FBDDA9A217"><enum>(a)</enum><header display-inline="yes-display-inline">Bank holding company act of 1956
amendment</header><text display-inline="yes-display-inline">Section 3(d)(1)(A)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(d)(1)(A)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB9619CCA129444D4AD43FC007F522F41"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>adequately
capitalized</quote> and inserting <quote>well capitalized</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17D29EEAB8A846AF8948CEE111A5F671"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>adequately
managed</quote> and inserting <quote>well managed</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4C3A4C423C324A06AEB0A5663D4BB974"><enum>(b)</enum><header display-inline="yes-display-inline">Federal deposit insurance act
amendment</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HA278E316B5E845C3B6373F47959A7BEF" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H9711139E876D4D5EBD098BFC12603FA9"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H57967B44CC9E40E0B6BB67F17EDC32C7" section-type="subsequent-section"><enum>1306.</enum><header display-inline="yes-display-inline">Enhancing existing restrictions on bank
transactions with affiliates</header>
<subsection commented="no" display-inline="no-display-inline" id="HB9B95E8A232743EA9EDB8824669862F1"><enum>(a)</enum><text display-inline="yes-display-inline">Section 23A of the Federal Reserve Act (12
U.S.C. 371c) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1C7CC6755DAE4673A786DBCAFFFE55DB"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(1), by striking
subparagraph (D) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC8E35C45490D4F5195A43778CE7D49E0" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H79A94A58CA2D478EB2FC5B429584B7B6"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8BE6E2F524334CC2B59F3D4ED03D4E0C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCFB47515F2C84FD5AEF35B8D27FBEB34"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (b)(7)(C), by striking
<quote>, including assets subject to an agreement to
repurchase,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H92396105629D476F9648C100FB42A1CF"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (b)(7)(D)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF77B37D32D444C759061C4B0427904BB"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or other debt
obligations</quote> after <quote>acceptance of securities</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4B33A19D4FAF4A24BCAEDCBFF1BEFFFE"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> after the
semicolon;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2FB60C41110E4FD4998BFE1FD5CA6473"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (b)(7), by inserting at the
end the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H92D0CAA439274C708BDA594A13F6D2D8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HDAC3163A9A3145F4A006335B0A719CB9"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35410AD1F0574917B666AB466EDD0A6E"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F5730622DD44FF3A588322B1A686894"><enum>(6)</enum><text display-inline="yes-display-inline">in subsection (c)(1), by striking <quote>at
the time of the transaction,</quote> and inserting <quote>at all
times</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF42F68BBD6149C8AF314E99E244A587"><enum>(7)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H020EBAF3F3194482B8460E0DE7B387CF"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0B48CF5D77A4EF0852CFCC458702040"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (3), (4), and
(5) as paragraphs (2), (3), and (4), respectively;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBA301E3A2E5A4E7E93DFC74C00D2DAD5"><enum>(8)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CF1F3D59E04423C87A57E4CBDAD8B14"><enum>(9)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A3AD2A73A6F484D8E5791D515605604"><enum>(10)</enum><text display-inline="yes-display-inline">in subsection (f)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD7D5F6D40891458C91AC9694A72322E9"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (3) as paragraph
(4); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD9BAE1EE8AF469AA67D7EA60450DECB"><enum>(B)</enum><text display-inline="yes-display-inline">and inserting after paragraph (2) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1EE6A697B3BC43749D275BD3B6BD5CB2" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1C79D8CAB49642609F3D9D9E6B698A08"><enum>(3)</enum><header display-inline="yes-display-inline">Concurrence of the comptroller of the
currency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H45FAC8917FFB48FB80DE55E95D776C4C"><enum>(b)</enum><header display-inline="yes-display-inline">Technical and conforming
amendment</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HF7C7D230F79D45BBA4ADC0C257853766" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H07802B68055143D28353CD7EDC8B97B2"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H922A2EBE82F04A57B5A570AB2EA5714A" section-type="subsequent-section"><enum>1307.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C192916C84A41AB98429BC07A3BC7AB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA76C1D4EAC124CD191A67D9056BE5FFC"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (4) as paragraph
(3).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H182D486D58F644BEB34E3C9838B5EB6B" section-type="subsequent-section"><enum>1308.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8487170D2A46410DA6AC2FC5E64A6557"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H32FA6E790A9F4D0CA317114B0CBDA4C7"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8ACE7B4761674A898B54BB571CAAAD2B"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41D71A764E2942BDBC8C821896FFEBA1"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF72F7DF2BCF348BAA92F5B03B8446F49"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2) by striking the period
at the end and inserting <quote>; and</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB06AEFFC91314EE8B31D33DC4D9C699B"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (b), by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE6D33A974EDF475D99D462005B98032E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H2470526777364E7DA1C038C7C2E1C560"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C841D867649413B9873EE3A6453BCBD"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (d), by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD35B2FE4867049D7B43E5E419D46E9A3" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HADF63E94CA004B1F8E2361C06785BC9C"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4BBC793CFBCF4450BD820BC10BA6D489" section-type="subsequent-section"><enum>1309.</enum><header display-inline="yes-display-inline">Restriction on conversions of troubled
banks and thrifts</header>
<subsection commented="no" display-inline="no-display-inline" id="H987C35D483314CF1821ACB8EA80A3167"><enum>(a)</enum><header display-inline="yes-display-inline">Conversion of a national banking
association to a state bank</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H514FF9FD0D904D90A19F3E9D09FB18D6" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H6DA2B9FBCA7C4B4A9019FF90370CDFB9" section-type="subsequent-section"><enum>7.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FD6D626979F41158E1052797E8E9FBE"><enum>(b)</enum><header display-inline="yes-display-inline">Conversion of a state bank to a national
bank</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4191723F80FC4800A706CD7E391DCDC5"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC93413AB620F4C10B2A31CB820A2D653"><enum>(6)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF6BB99CFE6E470F8475AE6EE6659D17" section-type="subsequent-section"><enum>1310.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8B1DCE600714F99A099B5A934060DDB" section-type="subsequent-section"><enum>1311.</enum><header display-inline="yes-display-inline">Limitations on purchases of assets from
insiders</header>
<subsection commented="no" display-inline="no-display-inline" id="H20A19573EF8C4F55856FBC6134DEFAA3"><enum>(a)</enum><text display-inline="yes-display-inline">Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by inserting at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD2895FEF916D4224B65841F4E98F7152" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD4B91E64C44D4753A6375E07F143D8D9"><enum>(y)</enum><header display-inline="yes-display-inline">General prohibition</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86CFA31138BA4917B33F236092626ED8"><enum>(b)</enum><header display-inline="yes-display-inline">FDIC rulemaking authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H945C06D4C1EC4630A738353F22E6E43D"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to the federal reserve
act</header><text display-inline="yes-display-inline">Section 22 of the Federal
Reserve Act (12 U.S.C. 375) is amended by striking subsection (d).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H1C01F71528CC47ECB66CDDAB4ACA1B42" section-type="subsequent-section"><enum>1312.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H127A5C6074E84F098B9EA49E052941AC" section-type="subsequent-section"><enum>1313.</enum><header display-inline="yes-display-inline">Enhancements to factors to be considered in
certain acquisitions</header>
<subsection commented="no" display-inline="no-display-inline" id="H81E4874B6273479FA8BFC4C704038DEA"><enum>(a)</enum><header display-inline="yes-display-inline">Bank acquisitions</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H04B7524618214E77BB6A56D04EC40387" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEE495EEF0F4A4678B4E8754CE8D4C244"><enum>(7)</enum><header display-inline="yes-display-inline">Financial stability</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H01E1B3CCB3E94C3586A22EE16E69FA07"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H61DCC065CCB246C793D2472ABD48A881"><enum>(B)</enum><header display-inline="yes-display-inline">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
holding company subject to stricter standards if the Board determines that the
resulting concentration of liabilities on a consolidated basis is likely to
pose a great threat to financial stability during times of severe economic
distress.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0E96A527F8BC4F93B737597D9D7B01EE"><enum>(b)</enum><header display-inline="yes-display-inline">Nonbank acquisitions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H91AD8C01041A4E42BF7662B63B2F7B1D"><enum>(1)</enum><text display-inline="yes-display-inline">Section 4(j)(2)(A) of the Bank Holding
Company is amended by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H95F1F7E86639443C91F83FDE3A7558B8"><enum>(A)</enum><text display-inline="yes-display-inline">striking <quote>or</quote> before
<quote>unsound banking practices</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4598D221876A4B96BD504E404F8C6CEE"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5479FA1DD12342BBB7353CF30F90A64C"><enum>(2)</enum><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HB08FE45320FA4D74B14753F28A8D2591" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H017F2B1E88E140B4BF2C17A4819E1A1C"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC86D86CB03E40B28FF6C0425379FE0E"><enum>(i)</enum><text display-inline="yes-display-inline">for a transaction in which the total assets
to be acquired by the financial holding company exceed $25 billion; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEDC296E6911A400295BC2847C528C588"><enum>(ii)</enum><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H1CD20C5DDC8544F4B666D602105B56F4"><enum>(3)</enum><text display-inline="yes-display-inline">Section 4(j) of the Bank Holding Company
Act of 1956 is amended by inserting after paragraph (4) the following new
paragraph (and redesignating succeeding paragraphs accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H85FBFA93475A42CB946DC0DB7386797E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB3E3D9F6DECC4E62BE83C112C4AD6CA7"><enum>(5)</enum><header display-inline="yes-display-inline">Financial stability</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC8BCBBA38414761AFDA937B6A401234"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HAFC7C2BD8AAD4520BC0A6F1CE4304C8A"><enum>(B)</enum><header display-inline="yes-display-inline">Standards for approval</header><text display-inline="yes-display-inline">The Board may, in the sole discretion of
the Board, disapprove any acquisition, merger, or consolidation of, or by, a
financial holding company subject to stricter standards if the Board determines
that the resulting concentration of liabilities on a consolidated basis is
likely to pose a great threat to financial stability during times of severe
economic
distress.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDCB335B1180345A980C32FADBBCCC139"><enum>(c)</enum><header display-inline="yes-display-inline">Bank merger act transactions</header><text display-inline="yes-display-inline">Section 18(c)(5) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAB0D01B3720B45D1955061F60A9374C5"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>and</quote> before <quote>the convenience and needs of the community to
be served</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE986AE7809AA4276887E9267467E8E19"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), 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>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6373DF859FAA43B792969C01646785B0"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (7)(B), by inserting
<quote>subparagraphs (A) and (B) of</quote> before
<quote>paragraph</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H40902EE0886644688BE3913B8D99DA84" section-type="subsequent-section"><enum>1314.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFDA57ED6DDD343428A93895113FCEA58"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (i); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD67D88EB31D645DDB8605319666E000E"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subsections (j) and (k) as
subsections (i) and (j), respectively.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H889078B76B294071B7FFE628FEE451BA" section-type="subsequent-section"><enum>1315.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H24AFF7B7263A47909A64C38AB6CA8AE4" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H2B663C5E0F6245889D6F76A11ABF54E8" section-type="subsequent-section"><enum>5A.</enum><header display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="H428C8A3D1182465F95C408D432E4A012" section-type="subsequent-section"><enum>1316.</enum><header display-inline="yes-display-inline">Mutual national banks and Federal mutual
bank holding companies authorized</header>
<subsection commented="no" display-inline="no-display-inline" id="H6C4272F8762A4EBAA3FB21AD3B12D5A1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter one of title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et seq.) is amended by inserting
after section 5133 the following new sections:</text>
<quoted-block display-inline="no-display-inline" id="H332E23C655554F4988A72E809AC7CE64" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HA357A1C1492A47CA9D589232B8056E03" section-type="subsequent-section"><enum>5133A.</enum><header display-inline="yes-display-inline">Mutual national banks</header>
<subsection commented="no" display-inline="no-display-inline" id="H9CEA51B8B19446E3B41B780B01162FD9"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding the section designated the
<quote>Third</quote> of section 5134, in order to provide mutual institutions
for the deposit of funds, the extension of credit, and provision of other
services, the Comptroller of the Currency may charter mutual national banks
either de novo or through a conversion of any insured depository institution or
any State mutual bank or credit union, subject to regulations prescribed by the
Comptroller of the Currency in accordance with this section. The powers
conferred by this section are intended to provide for the creation and
maintenance of mutual national banks as bodies corporate existing in perpetuity
for the benefit of their depositors and the communities in which they
operate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H27CC53F968A64894B1356C27E1B7B627"><enum>(b)</enum><header display-inline="yes-display-inline">Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H11749E9B04AE49AEBC3065563AA5AA27"><enum>(1)</enum><header display-inline="yes-display-inline">Regulations of the
Comptroller</header><text display-inline="yes-display-inline">The Comptroller
of the Currency is authorized to prescribe appropriate regulations for the
organization, incorporation, examination, operation, and regulation of mutual
national banks. Except to the extent that such existing regulations conflict
with sections 5133A and 5133B, mutual national banks shall be subject to the
regulations of the Director of the Office of Thrift Supervision governing
corporate organization, governance, and conversion of mutual institutions, as
in effect on the date of the enactment of the Wall Street Reform and Consumer
Protection Act of 2009, including parts 543, 544, 546, 563b, and 563c of
chapter V of title 12, Code of Federal Regulations (as in effect on that date),
for up to 3 years beginning on the date of the enactment of the Wall Street
Reform and Consumer Protection Act of 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB7FE1A54BA504AEBA4AF005991F57AA2"><enum>(2)</enum><header display-inline="yes-display-inline">Applicability of capital stock
requirements</header><text display-inline="yes-display-inline">The Comptroller
of the Currency shall prescribe regulations regarding the manner in which
requirements of this title with respect to capital stock, and limitations
imposed on national banks under this title based on capital stock, shall apply
to mutual national banks.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9C03F4C63ABB455BA19ED9BC38D17B45"><enum>(c)</enum><header display-inline="yes-display-inline">Conversions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H86F4F780B96F4E63BB921A7FD4C5A251"><enum>(1)</enum><header display-inline="yes-display-inline">Conversion of a mutual depository to a
mutual national bank</header><text display-inline="yes-display-inline">Subject
to such regulations as the Comptroller of the Currency may prescribe for the
protection of depositors’ rights and for any other purpose the Comptroller of
the Currency may consider appropriate, any mutual depository may convert to a
mutual national bank by filing with the Comptroller of the Currency a notice of
its election to convert on a specified date that is not earlier than 30 days
after the date on which the notice is filed, and the mutual depository shall be
converted to a mutual national bank charter on the date specified in the
notice.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4B6E72B5EC6846CA84D8EB5295F6B9EF"><enum>(2)</enum><header display-inline="yes-display-inline">Conversion to stock national
bank</header><text display-inline="yes-display-inline">Subject to such
regulations as the Comptroller of the Currency may prescribe for the protection
of depositors’ rights and for any other purpose the Comptroller of the Currency
may consider appropriate, any national bank that is organized in the mutual
form under subsection (a) may reorganize as a stock national bank.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H993D5363C297446FA5910BD541D11123"><enum>(3)</enum><header display-inline="yes-display-inline">Conversion to State banks</header><text display-inline="yes-display-inline">Any national mutual bank may convert to a
State bank charter in accordance with regulations prescribed by the Comptroller
of the Currency and applicable State law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA9DA8EA06A2B4D198DED39CF152A1A1E"><enum>(d)</enum><header display-inline="yes-display-inline">Terminating mutuality</header><text display-inline="yes-display-inline">If a mutual national bank elects to
terminate mutuality, it must do so by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H21ABF5E73DE241C78F645A89564BFDA3"><enum>(1)</enum><text display-inline="yes-display-inline">liquidating; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6F647ACA1A0745CA9954C0E0C53046FD"><enum>(2)</enum><text display-inline="yes-display-inline">converting to a national banking
association operating in stock form.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H385139DEB0CF41D488A8BA19630345D7"><enum>(e)</enum><header display-inline="yes-display-inline">Status and rights of members</header>
<paragraph commented="no" display-inline="no-display-inline" id="H85FCFC7F47984A8DAF88DE4C7BC07D60"><enum>(1)</enum><text display-inline="yes-display-inline">In general, the status of a member is
primarily that of a depositor and secondarily that of a holder of a contingent
right to participate in the equity of a mutual national bank upon a liquidation
or conversion.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFE2D3C14488943F9B73F8FAA9CBB2B3B"><enum>(2)</enum><text display-inline="yes-display-inline">Each member of a mutual national bank shall
have the following rights:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6512E64D2C2D4180BAE87B003188A85E"><enum>(A)</enum><text display-inline="yes-display-inline">Such rights as may be agreed upon, by
contract, between the member and the mutual national bank.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7D63EA66342D4921ABC41A0FCE42AFEF"><enum>(B)</enum><text display-inline="yes-display-inline">The right to vote for members of the board
of directors of the mutual national bank.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF6795DBDA5394B888C63233637B8F33A"><enum>(C)</enum><text display-inline="yes-display-inline">The right to attend any meeting of members
properly called by the board of directors of a mutual national bank.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE75846BE33044706B03271F9529CC430"><enum>(D)</enum><text display-inline="yes-display-inline">In the event the board of directors, in its
sole discretion, determines a conversion of a mutual national bank to a
national banking association operating in stock form is in the best interests
of the community in which the bank operates and the members approve the
conversion through a special proxy, then the members as of a record date set by
the board of directors shall have the first right to subscribe for and purchase
stock in the converted bank.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BF6E4AF578C49A79F419559D58B611D"><enum>(E)</enum><text display-inline="yes-display-inline">In the event the board of directors, in its
sole discretion, determines a liquidation of the mutual national bank is in the
best interests of the community in which the bank operates and the members
approve the liquidation, or if for any other reason the bank is liquidated by
operation of law, then the members as of the date of liquidation shall have the
right to have credited to their accounts, on a pro rata basis, any residual
assets left after the liquidation of the mutual national bank.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0B5ECD12C7C74CAB9CA960273571C39F"><enum>(3)</enum><text display-inline="yes-display-inline">In the consideration of all questions
requiring action by the members of a national mutual bank, the bank may provide
in its charter that each member shall be permitted (i) one vote per member, or
(ii) to cast one vote for each $100, or fraction thereof, of the withdrawal
value of the member’s account, but not more than 1,000 votes per member.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD86B077B9F12470FA63B351B28AE846A"><enum>(f)</enum><header display-inline="yes-display-inline">Proxies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8F8345D13C7848088708B93D22D58EE2"><enum>(1)</enum><text display-inline="yes-display-inline">A member may give, in writing or
electronically, a perpetual proxy to a committee of the board of directors of a
mutual depository, provided that the member may revoke such a proxy in writing
or electronically, with such revocation to take effect after 6 business
days.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H58117E16EC1A4BCA98E381EE2F8989E9"><enum>(2)</enum><text display-inline="yes-display-inline">Such proxies may be used to vote on any
issue requiring approval of the members, including the conversion of a mutual
depository into a mutual national bank and the reorganization of a mutual
national bank into a Federal mutual bank holding company, except that, without
a prior finding by the regulator of the mutual national bank that such action
is needed to avoid loss to the Federal Deposit Insurance Corporation’s deposit
insurance fund or to protect the stability of the United States financial
system, such proxies may not be used to vote in favor of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H45C5AF4ECC1A41B4BD45DFA41B4369D3"><enum>(A)</enum><text display-inline="yes-display-inline">terminating mutuality for a mutual national
bank or a Federal mutual bank holding company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAAE00A32282A4B1FA7154DEDD7408BDE"><enum>(B)</enum><text display-inline="yes-display-inline">permitting the modification of a Federal
mutual bank holding company; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCCF8EC90AE2648BFA4BDB6D5F3605DF2"><enum>(C)</enum><text display-inline="yes-display-inline">issuing mutual capital certificates (except
when used to found a mutual national bank or a Federal mutual bank holding
company de novo).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD2EB45E441748C7A515A26B697C5131"><enum>(3)</enum><text display-inline="yes-display-inline">Proxies given by a member, in writing or
electronically, to management of, or to a committee of the board of directors
of, a mutual depository shall not be deemed to have been revoked solely because
of, and shall continue to exist following, a conversion to a mutual national
bank and any concurrent or subsequent reorganization to a Federal mutual bank
holding company.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H755D63FC8F4A4029A1130FFED8AE9F46"><enum>(g)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7D9EDE110FB34C5280FE7C73D0F3CAAE"><enum>(1)</enum><header display-inline="yes-display-inline">Insured depository
institution</header><text display-inline="yes-display-inline">The term
<quote>insured depository institution</quote> has the same meaning as in
section 3 of the Federal Deposit Insurance Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82F7976EEEE349B1AE9E86A0DEDE24CD"><enum>(2)</enum><header display-inline="yes-display-inline">Mutual national bank</header><text display-inline="yes-display-inline">The term <quote>mutual national
bank</quote> means a national banking association that operates in mutual form
and is chartered by the Comptroller of the Currency under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF0149B41FE54A21AC1CD5AF911F04D4"><enum>(3)</enum><header display-inline="yes-display-inline">Mutual depository</header><text display-inline="yes-display-inline">The term <quote>mutual depository</quote>
means a depository institution that is organized in non-stock form, including a
Federal non-stock depository and any form of non-stock depository provided for
under State law, the deposits of which are insured by an instrumentality of the
Federal Government.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H740BE67B5D6F4A23A66B933CE1122266"><enum>(4)</enum><header display-inline="yes-display-inline">Mutuality</header><text display-inline="yes-display-inline">The term <quote>mutuality</quote> means the
quality of being an insured depository institution organized under a Federal or
State law providing for the organization of non-stock depository institutions,
or a holding company organized under a Federal or State law providing for the
organization of non-stock entities that control one or more depository
institutions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F8F218DC16544FF8E41D6EE45B2F5CA"><enum>(5)</enum><header display-inline="yes-display-inline">Member</header><text display-inline="yes-display-inline">The term <quote>member</quote> means each
tax-liable depositor in a mutual depository’s savings, demand, or other
authorized depository accounts and each tax-liable depositor in such an account
in a depository subsidiary of a Federal mutual bank holding company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE27CCA690E304C69859BE7B30C00C1E7"><enum>(6)</enum><header display-inline="yes-display-inline">Tax liable depositor</header><text display-inline="yes-display-inline">The term <quote>tax liable
depositor</quote> means the single person responsible for paying any Federal
taxes due on any interest paid on any deposits held within any savings, demand,
or other authorized depository account or accounts with any mutual
depository.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD21F3FF22C87496AA13BD30BC22B527F"><enum>(7)</enum><header display-inline="yes-display-inline">Membership rights</header><text display-inline="yes-display-inline">The term <quote>membership rights</quote>
means the rights of each member under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA1BA5D688FAA4F979465C29175DFBB99"><enum>(h)</enum><header display-inline="yes-display-inline">Conforming references</header><text display-inline="yes-display-inline">Unless otherwise provided by the
Comptroller of the Currency—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9631301D72384A00B6BF5EB87CC7712E"><enum>(1)</enum><text display-inline="yes-display-inline">any reference in any Federal law to a
national bank operating in stock form, including a reference to the term
<quote>national banking association</quote>, <quote>member bank</quote>,
<quote>national bank</quote>, <quote>national association</quote>,
<quote>bank</quote>, <quote>insured bank</quote>, <quote>insured depository
institution</quote>, or <quote>depository institution</quote>, shall be deemed
to refer also to a mutual national bank;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE67F1B074214A56A165BFC4F6B9A7A1"><enum>(2)</enum><text display-inline="yes-display-inline">any reference in any Federal law to the
term <quote>board of directors</quote>, <quote>director</quote>, or
<quote>directors</quote> of a national bank operating in stock form shall be
deemed to refer also to the board of a mutual national bank; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3104ADEB76F44EF991B00B16FD42E0E"><enum>(3)</enum><text display-inline="yes-display-inline">any terms in Federal law that may apply
only to a national bank operating in stock form, including the terms
<quote>stock</quote>, <quote>shares</quote>, <quote>shares of stock</quote>,
<quote>capital stock</quote>, <quote>common stock</quote>, <quote>stock
certificate</quote>, <quote>stock certificates</quote>, <quote>certificates
representing shares of stock</quote>, <quote>stock dividend</quote>,
<quote>transferable stock</quote>, <quote>each class of stock</quote>,
<quote>cumulate such shares</quote>, <quote>par value</quote>, <quote>preferred
stock</quote> shall not apply to a mutual national bank, unless the Comptroller
of the Currency determines that the context requires otherwise.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HAE014C0B682E418E836973BF53561412" section-type="subsequent-section"><enum>5133B.</enum><header display-inline="yes-display-inline">Federal mutual bank holding
companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H1C5CD8F383324A6FB82CC8E713E0D3E0"><enum>(a)</enum><header display-inline="yes-display-inline">Reorganization of mutual national bank as a
holding company</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFD852997D6974991A6B693AB4132B3C3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to approval under the Bank Holding
Company Act of 1956, a mutual national bank may reorganize so as to become a
Federal mutual bank holding company by submitting a reorganization plan to the
appropriate bank holding company regulator.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5E11658142DD4C39A9DA1DF6B79671DC"><enum>(2)</enum><header display-inline="yes-display-inline">Plan approval</header><text display-inline="yes-display-inline">Upon the approval of the reorganization
plan by the appropriate bank holding company regulator and the issuance of the
appropriate charters—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H192AD409599F4E5B8BD4A067ECB0B983"><enum>(A)</enum><text display-inline="yes-display-inline">the substantial part of the mutual national
bank’s assets and liabilities, including all of the bank’s insured liabilities,
shall be transferred to a national banking association, a majority of the
shares of voting stock of which is owned, directly or indirectly, by the mutual
national bank that is to become a Federal mutual bank holding company;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCBC64A2319034F25A9B99606FC22846C"><enum>(B)</enum><text display-inline="yes-display-inline">the mutual national bank shall become a
Federal mutual bank holding company.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBD1D0B9C6CA547628C0C262404703AD5"><enum>(b)</enum><header display-inline="yes-display-inline">Directors and certain account holders’
approval of plan required</header><text display-inline="yes-display-inline">This subsection does not authorize a
reorganization unless—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4F4572E6A9084A808D6EBCC897B34FAC"><enum>(1)</enum><text display-inline="yes-display-inline">a majority of the mutual national bank’s
board of directors has approved the plan providing for such reorganization;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93A36C16D1674CA5A69B8951AA0B0D72"><enum>(2)</enum><text display-inline="yes-display-inline">a majority of members has approved the plan
at a meeting held at the call of the directors under the procedures prescribed
by the bank’s charter and bylaws.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H23CC7DDB648C412B84A9E72C90282C2B"><enum>(c)</enum><header display-inline="yes-display-inline">Ownership of depository
subsidiaries</header><text display-inline="yes-display-inline">To avoid
terminating mutuality, a Federal mutual bank holding company must own, directly
or indirectly, a majority of the shares of voting stock of each of its
depository subsidiaries.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H47638DA71B2643619FEBA21F7CDD20E6"><enum>(d)</enum><header display-inline="yes-display-inline">No termination of mutuality</header><text display-inline="yes-display-inline">Neither a reorganization of a mutual
depository nor a modification of a Federal mutual bank holding company shall
cause a termination of mutuality.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA5E3C928F68645B28AA4CBBBA3ADE143"><enum>(e)</enum><header display-inline="yes-display-inline">Retention of capital</header><text display-inline="yes-display-inline">In connection with a transaction described
in subsection (a), a mutual national bank may, subject to the approval of the
appropriate bank holding company regulator, retain capital at the holding
company level to the extent that the capital retained at the holding company
level exceeds the amount of capital required for the national banking
association chartered as a part of a transaction described in subsection (a) to
meet all relevant capital standards established by the Comptroller of the
Currency for national banking associations.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC4AF0301A9134205925941D7DF28854C"><enum>(f)</enum><header display-inline="yes-display-inline">Terminating mutuality</header><text display-inline="yes-display-inline">If a Federal mutual bank holding company
elects to terminate mutuality, it must do so by either liquidating or
converting to a bank holding company operating in stock form.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7284C82F7076449382899501741C588A"><enum>(g)</enum><header display-inline="yes-display-inline">Membership rights</header><text display-inline="yes-display-inline">Holders of savings, demand, or other
authorized depository accounts in a depository subsidiary of a Federal mutual
bank holding company shall have the same membership rights with respect to the
Federal mutual bank holding company as those holders would have had if the
depository subsidiary of the Federal mutual bank holding company had been a
mutual national bank.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB2D2737D410E41C5954C3DEAD319FCBA"><enum>(h)</enum><header display-inline="yes-display-inline">Regulation</header><text display-inline="yes-display-inline">A Federal mutual bank holding company shall
be—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H67C8B2AE352B42F597E2A98F13B73B3A"><enum>(1)</enum><text display-inline="yes-display-inline">chartered by the appropriate bank holding
company regulator and shall be subject to such regulations as the appropriate
bank holding company regulator shall prescribe; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCC64AC021A7A4688BDFF20C55461B4C2"><enum>(2)</enum><text display-inline="yes-display-inline">regulated under the Bank Holding Company
Act of 1956 on the same terms and subject to the same limitations as any other
company that controls a bank.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCA832E9C44384EE0AD9262225C6D1E40"><enum>(i)</enum><header display-inline="yes-display-inline">Capital improvement</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC20AE9AC94964565AE6B706FB1F3F4AA"><enum>(1)</enum><header display-inline="yes-display-inline">Pledge of stock of national bank
subsidiary</header><text display-inline="yes-display-inline">This section shall
not prohibit a Federal mutual bank holding company from pledging all or a
portion of the stock of the national banking association chartered as part of a
transaction described in subsection (a) to raise capital for such national
banking association.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A4569F7EEF3451DA5BE35ACDC3F1D28"><enum>(2)</enum><header display-inline="yes-display-inline">Issuance of nonvoting shares</header><text display-inline="yes-display-inline">This section shall not prohibit a national
banking association chartered as part of a transaction described in subsection
(a) from issuing any nonvoting shares or less than 50 percent of the voting
shares of such bank to any person other than the Federal mutual bank holding
company.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC3276A754884219A4D4655619553153"><enum>(j)</enum><header display-inline="yes-display-inline">Insolvency and liquidation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC263E25670554EB7B6F6426273819760"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the appropriate bank holding company regulator may file a petition under
chapter 7 of title 11, United States Code, with respect to a Federal mutual
bank holding company upon—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB454D79D41D4419B3DAC70E084A171B"><enum>(A)</enum><text display-inline="yes-display-inline">the default of any national bank—</text>
<clause commented="no" display-inline="no-display-inline" id="HA617B622AA884FDE98915CB9F61EB125"><enum>(i)</enum><text display-inline="yes-display-inline">the stock of which is owned by the Federal
mutual bank holding company; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H10CA598FB3924B039D044784DA628D7C"><enum>(ii)</enum><text display-inline="yes-display-inline">that was chartered in a transaction
described in subsection (a); or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9503E940E542446AB39CF6DEBD7F2DFB"><enum>(B)</enum><text display-inline="yes-display-inline">a foreclosure on a pledge by the Federal
mutual bank holding company described in subsection (i)(1).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95AB6BF537B2418CA39B7211DD0DE8AB"><enum>(2)</enum><header display-inline="yes-display-inline">Distribution of net proceeds</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), the
net proceeds of any liquidation of any Federal mutual bank holding company
under paragraph (1) shall be transferred to persons who hold membership
interests in such Federal mutual bank holding company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE0E36AAC99C843C0917B53E1FBD66B28"><enum>(3)</enum><header display-inline="yes-display-inline">Recovery by FDIC</header><text display-inline="yes-display-inline">If the Federal Deposit Insurance
Corporation incurs a loss as a result of the default of any insured bank
subsidiary of a Federal mutual bank holding company that is liquidated under
paragraph (1), the Federal Deposit Insurance Corporation shall succeed to the
interests of the depositors of the bank as members in the Federal mutual bank
holding company, to the extent of the Federal Deposit Insurance Corporation’s
loss.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFB54FA93EC24403F913958164D0F7BAB"><enum>(k)</enum><header display-inline="yes-display-inline">Definitions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFB81B0ED5B3147A5B0EF717070AC14D1"><enum>(1)</enum><header display-inline="yes-display-inline">Federal mutual bank holding
company</header><text display-inline="yes-display-inline">The term
<quote>Federal mutual bank holding company</quote> means a holding company that
is organized in mutual form and owns, directly or indirectly, a majority of the
shares of voting stock of one or more depository subsidiaries of a Federal
mutual bank holding company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD215296B13F410DBB6675941281B255"><enum>(2)</enum><header display-inline="yes-display-inline">Depository subsidiary of a federal mutual
bank holding company</header><text display-inline="yes-display-inline">The term
<quote>depository subsidiary of a Federal mutual bank holding company</quote>
means a depository institution organized in stock form that is insured by the
Federal Deposit Insurance Corporation, the majority of the shares of voting
stock of which are owned by the Federal mutual bank holding company or its
wholly owned subsidiaries and none of the shares of stock of which are pledged
or otherwise subjected to lien except as permitted in subsection (i).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC23017F850EA478ABD153C924C4C7192"><enum>(3)</enum><header display-inline="yes-display-inline">Reorganization of a mutual
depository</header><text display-inline="yes-display-inline">The term
<quote>reorganization of a mutual depository</quote> means the conversion of a
mutual depository into a depository subsidiary of a Federal mutual bank holding
company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0594069A645E47279C925C3BE0DB9376"><enum>(4)</enum><header display-inline="yes-display-inline">Modification of a federal mutual bank
holding company</header><text display-inline="yes-display-inline">The term
<quote>modification of a Federal mutual bank holding company</quote> means
either: (A) the sale of shares of common or preferred stock in a depository
subsidiary of a Federal mutual bank holding company to any party other than the
subsidiary’s parent Federal mutual bank holding company or a wholly owned
subsidiary of that parent; or (B) the voluntary grant of a lien on shares of
common or preferred stock in a depository subsidiary of a Federal mutual bank
holding company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H78298835881F4834A509601EE17731CA"><enum>(5)</enum><header display-inline="yes-display-inline">Default</header><text display-inline="yes-display-inline">With respect to a national bank, the term
<quote>default</quote> means an adjudication or other official determination by
any court of competent jurisdiction, the Comptroller of the Currency, or other
public authority pursuant to which a conservator, receiver, or other legal
custodian is appointed for the national bank.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0E951323A4F8436881D45F9EF8DD9BDA"><enum>(l)</enum><header display-inline="yes-display-inline">Conforming references</header><text display-inline="yes-display-inline">Unless otherwise provided by the
appropriate bank holding company regulator—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBE6269D9572842B3AAA63CD579131D35"><enum>(1)</enum><text display-inline="yes-display-inline">any reference in any Federal law to a bank
holding company operating in stock form shall be deemed to refer also to a
Federal mutual bank holding company;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB2010C6FE764E4E8E4EAAE130A37DE9"><enum>(2)</enum><text display-inline="yes-display-inline">any reference in any Federal law to the
term <quote>board of directors</quote>, <quote>director</quote>, or
<quote>directors</quote> of a national bank operating in stock form shall be
deemed to refer also to the board of a Federal mutual bank holding company;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11BFE1C564B943C7BB8564C176B7447E"><enum>(3)</enum><text display-inline="yes-display-inline">any terms in Federal law that may apply
only to a national bank operating in stock form, including the terms
<quote>stock</quote>, <quote>shares</quote>, <quote>shares of stock</quote>,
<quote>capital stock</quote>, <quote>common stock</quote>, <quote>stock
certificate</quote>, <quote>stock certificates</quote>, <quote>certificates
representing shares of stock</quote>, <quote>stock dividend</quote>,
<quote>transferable stock</quote>, <quote>each class of stock</quote>,
<quote>cumulate such shares</quote>, <quote>par value</quote>, <quote>preferred
stock</quote> shall not apply to a Federal mutual bank holding company, unless
the appropriate bank holding company regulator determines that the context
requires
otherwise.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4C807253B7B14E6AB8E2A363AB1A2157"><enum>(b)</enum><header display-inline="yes-display-inline">Limitation on Federal regulation of State
banks</header><text display-inline="yes-display-inline">Except as otherwise
provided in Federal law, the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit Insurance
Corporation may not adopt or enforce any regulation that contravenes the
corporate governance rules prescribed by State law or regulation for State
banks unless the Director, Board, or Corporation finds that the Federal
regulation is necessary to assure the safety and soundness of the State
banks.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE1EAEF80172C4335A156CC6B099F75B1"><enum>(c)</enum><header display-inline="yes-display-inline">Technical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter one of
title LXII of the Revised Statutes of the United States (12 U.S.C. 21 et seq.)
is amended by inserting after the item relating to section 5133 the following
new items:</text>
<quoted-block display-inline="no-display-inline" id="HEC5CA200BB97425890EC0021AC8E07CE" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">5133A. Mutual national
banks.</toc-entry>
<toc-entry bold="off" level="section">5133B. Federal mutual bank
holding
companies.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H80027A0D32A24459B70BC106C284F5F3"><enum>(d)</enum><header display-inline="yes-display-inline">Appropriate Federal banking agency for
Federal mutual bank holding companies</header><text display-inline="yes-display-inline">Section 3(q)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)(2)) is amended by inserting after subparagraph
(F) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H157E72AE189E4CC095FC080E5C6D06C4" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H3034DC627CF8466EB25C2CC2A95E854E"><enum>(G)</enum><text display-inline="yes-display-inline">supervisory or regulatory proceedings
arising from the authority given to the appropriate bank holding company
regulator under section 5133B of the Revised Statutes of the United
States.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3F701EA224284D2C970D51907AFF89B3"><enum>(e)</enum><header display-inline="yes-display-inline">Mutual holding company conversion</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF2D7E689984C401BAABD68DD84ADA3AC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any mutual holding company, including any
form of mutual depository holding company provided for under State law, may
convert to a Federal mutual bank holding company by filing with the appropriate
bank holding company regulator a notice of its election to convert on a
specified date that is not earlier than 30 days after the date on which the
notice is filed, and the mutual holding company shall be converted to a Federal
mutual holding company charter on the date specified in the notice.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7C88A73AD4D44DC9F7D0089AE24DD87"><enum>(2)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9FB63E20A3AB468285E5AAEA6D02087A"><enum>(A)</enum><header display-inline="yes-display-inline">Federal mutual bank holding
company</header><text display-inline="yes-display-inline">The term
<quote>Federal mutual bank holding company</quote> has the same meaning as in
section 5133B of the Revised Statutes of the United States (as added by this
section); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBCE7137AB8264E19B108433932A6E61A"><enum>(B)</enum><header display-inline="yes-display-inline">Mutual holding company</header><text display-inline="yes-display-inline">The term <quote>mutual holding
company</quote> has the same meaning as in section 10(o)(10)(A) of the Home
Owners Loan Act as in effect on the day before the date of enactment of this
Act.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBDEA3F2770DF41E385FD648B8E518C79"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the date of enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD625D68731FE4D2EBFED64D05C60880A" section-type="subsequent-section"><enum>1317.</enum><header display-inline="yes-display-inline"> Nationwide Deposit Cap for Interstate
Acquisitions</header>
<subsection commented="no" display-inline="no-display-inline" id="H6C70EE6A583B4BC2A156BD331CEC07A8"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to the Bank Holding Company Act
of 1956</header>
<paragraph commented="no" display-inline="no-display-inline" id="H930DBA755301487D8E65B85BB9600BEA"><enum>(1)</enum><header display-inline="yes-display-inline">Concentration limit for bank holding
companies</header><text display-inline="yes-display-inline">Section 3(d)(2)(A)
of the Bank Holding Company Act (12 U.S.C. 1842(d)(2)(A)) is amended by
striking <quote>paragraph (1)(A)</quote> and inserting <quote>subsection (a) of
this section</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H745859CFEE2D4B66859D4839FF2C6392"><enum>(2)</enum><header display-inline="yes-display-inline">Removal of nonbank savings association
provision in light of being defined as a bank</header><text display-inline="yes-display-inline">Section 4 of the Bank Holding Company Act
is amended by striking subsection (i) and insert the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA9CA6D0E38F349199213396724DCB019" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H21A85642FF3040EF9630974DA6A3E644"><enum>(i)</enum><text display-inline="yes-display-inline">[Repealed.]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H05BC222C01964FA98F642D2B05A6E911"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to the Federal Deposit Insurance
Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="H158ED205B6074C308CEDCEA58217EE2E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 18(e) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5E1130D8AFAE448D80D117D45DAAD1A9"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (12) as
paragraph (13); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H244F7A8FCD6E4222BC1E370F9875A6EF"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after paragraph (11), the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H019328C5516C43B18D0E20FD85068605" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H65B91A7EFBA74CDBB2772408C2BD66D6"><enum>(12)</enum><header display-inline="yes-display-inline">Nationwide deposit cap</header><text display-inline="yes-display-inline">The responsible agency may not approve an
application for an interstate merger transaction if the resulting insured
depository institution (including all insured depository institutions which are
affiliates of the resulting insured depository institution), upon consummation
of the transaction, would control more than 10 percent of, the total amount of
deposits of insured depository institutions in the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE6371063D1F143828EBE15D5107345FD"><enum>(2)</enum><header display-inline="yes-display-inline">Parallel requirement</header><text display-inline="yes-display-inline">Section 44(b)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1831u(b)(2)(A) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4E27513BBEE24A34996B3A85BE014965" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD57211D7369E47DA8C0D6DD7A8B1E60E"><enum>(A)</enum><header display-inline="yes-display-inline">Nationwide concentration
limits</header><text display-inline="yes-display-inline">The responsible agency
may not approve an application for an interstate merger transaction involving
two or more insured depository institutions if the resulting insured depository
institution (including all insured depository institutions which are affiliates
of such institution), upon consummation of the transaction would control more
than 10 percent of the total amount of deposits of insured depository
institutions in the United
States.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H642B662517DD4E37ACC2D7A30107B1CF"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to the Home Owners’ Loan
Act</header><text display-inline="yes-display-inline">Section 10(e)(2) of the
Home Owners’ Loan Act (12 U.S.C. 467a(e)(2)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0C7211A0C4E546E084D2A4B53E44EA8A"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or </quote> at the end
of subparagraph (C); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4347690830274402A2E2DF808D6DBAA8"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subparagraph (D), the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H1D5532B340D84D4CA4FF33D7A53278BC" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H076C93BE03D34AF1B07887FF14FE61B7"><enum>(E)</enum><text display-inline="yes-display-inline">in the case of an application involving an
interstate acquisition, if the applicant (including all insured depository
institutions which are affiliates of the applicant) controls, or upon
consummation of the acquisition for which such application is filed would
control, more than 10 percent of the total amount of deposits of insured
depository institutions in the United
States.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H220D0D22AE54488DB9A0DE37F7403EE4" section-type="subsequent-section"><enum>1318.</enum><header display-inline="yes-display-inline">De novo branching into states</header>
<subsection commented="no" display-inline="no-display-inline" id="H6E796F65571E420C929E787792DF378F"><enum>(a)</enum><header display-inline="yes-display-inline">National
banks</header><text display-inline="yes-display-inline">Section 5155(g)(1)(A)
of the Revised Statutes (12 U.S.C. 36(g)(1)(A)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H013D808B83E842EDB8DFD8BA6FC31824" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H6CB4522BC6884A0DBDC9E69D26322B7D"><enum>(A)</enum><text display-inline="yes-display-inline">the law of the State where the branch is
located, or is to be located, would permit establishment of the branch if the
national bank were a state bank chartered by such
State;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD4D6A9EA3B694177A97C7CD713B0FA9D"><enum>(b)</enum><header display-inline="yes-display-inline">State insured banks</header><text display-inline="yes-display-inline">Section 18(d)(4)(A)(i) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(d)(4)(A)(i)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HC115043522EE4702AA771D65B3D43870" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H7E8404F90B4B4D5B8267666CB5C62823"><enum>(i)</enum><text display-inline="yes-display-inline">the law of the State where the branch is
located, or is to be located, would permit establishment of the branch if the
bank were a State bank chartered by such
State;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle commented="no" id="HA24D3E3F05514F59B5C03252172D5201" level-type="subsequent"><enum>E</enum><header display-inline="yes-display-inline">Improvements to the Federal Deposit
Insurance Fund</header>
<section commented="no" display-inline="no-display-inline" id="H63F323984515474980BF9A3E07086D19" section-type="subsequent-section"><enum>1401.</enum><header display-inline="yes-display-inline">Accounting for actual risk to the Deposit
Insurance Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="HE8B513346AB242849655C1C58B255D0D"><enum>(a)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA250B80E758346EABED11B7ED727407B"><enum>(C)</enum><header display-inline="yes-display-inline"><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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H9C1EBA02B1874B9BA4CF1B0A5CCEB0A8"><enum>(ii)</enum><text display-inline="yes-display-inline">the likely amount of any such loss;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H659A16BFEE7342CA82837C2221EAEDC5"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8857E3145F0A4C169E586FE63701339E"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC773E8759E374ED6AF4EB1319578F1E7"><enum>(III)</enum><text display-inline="yes-display-inline">any other factors the Corporation
determines are relevant to assessing the risks; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H190D8194033540D3AEB29A867F654949"><enum>(iv)</enum><text display-inline="yes-display-inline">the revenue needs of the Deposit Insurance
Fund.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7B0EB6B66CAE407BA4365AB164652C84"><enum>(b)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H853D1658F0B14E2EA63871D6F967244A" section-type="subsequent-section"><enum>1402.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41E1CE9E490C4EFA8E4BAC39DB3DECA6"><enum>(C)</enum><header display-inline="yes-display-inline">Assessment</header><text display-inline="yes-display-inline">The assessment of any insured depository
institution imposed under this subsection shall be an amount equal to the
product of—</text>
<clause commented="no" display-inline="no-display-inline" id="H9CEF7DA1449E402499C2B9C5E094AF91"><enum>(i)</enum><text display-inline="yes-display-inline">an assessment rate established by the
Corporation; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAF2DD96DBDBB4073BF9C14399919B5EC"><enum>(ii)</enum><text display-inline="yes-display-inline">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, minus additional deductions or adjustments necessary to
establish assessments consistent with the definition under section 7(b)(1)(C)
of the Federal Deposit Insurance Act for custodial banks (as defined by the
Corporation based on factors including percentage of total revenues generated
by custodial businesses and the level of assets under custody) or a bankers’
bank (as referred to in section 5136 of the Revised Statutes of the United
States).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H0E5D19CA3673406CA97D9F34B6C2640D" section-type="subsequent-section"><enum>1403.</enum><header display-inline="yes-display-inline">Elimination of procyclical
assessments</header><text display-inline="no-display-inline">Section 7(e) of
the Federal Deposit Insurance Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4D16BD0347594036AE6DCF09406F74FF"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4D054DAF9338416185621CDCF07CABD0"><enum>(A)</enum><text display-inline="yes-display-inline">by amending subparagraph (B) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB89AE44B57A941E783989AA4587CEB4E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H2D13678C0DB44512A1CDFA930F101A0C"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C304A71E057476887873826EE881B04"><enum>(B)</enum><text display-inline="yes-display-inline">by amending subparagraph (C) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H418B1000449449F892A76992EB48C47C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H2876C9E20E144C16A65906086EE61448"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F896C2761104949BAE36D4234D98854"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraphs (D) through (G);
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H325A2E47E67849EE9522F794653F47E1"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (4)(A) by striking
<quote>paragraphs (2)(D) and</quote> and inserting <quote>paragraphs (2)
and</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HC75BE69A84C34205AD8D1F0AD534FA9C" section-type="subsequent-section"><enum>1404.</enum><header display-inline="yes-display-inline">Enhanced access to information for deposit
insurance purposes</header>
<subsection commented="no" display-inline="no-display-inline" 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
System, and the Director of the Office of Thrift Supervision, as
appropriate,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H47EFD9A06AF34AC0AFDB5E54E38CE19B"><enum>(b)</enum><text display-inline="yes-display-inline">Section 7(b)(1)(E) of the Federal Deposit
Insurance Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H103E81A0AFCA4EFE8114A61EDFBABC36"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>such
as</quote> and inserting <quote>including</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H67FE31BB971A4C29BCCD47157E473DDC"><enum>(2)</enum><text display-inline="yes-display-inline">by striking clause (iii).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H966470563B354B9F861D6454D3818118" section-type="subsequent-section"><enum>1405.</enum><header display-inline="yes-display-inline">Transition reserve ratio requirements to
reflect new assessment base</header>
<subsection commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HB673593D9E1E4982BB2FEC410D321EB6"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H785DFD7331734FAF80392F59AF328427"><enum>(b)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H87FEDF576CF34260B425ACAFB5A2BA40"><enum>(c)</enum><text display-inline="yes-display-inline">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 commented="no" id="H19D8D5B8FA7A4062B49D0E7F69433070" level-type="subsequent"><enum>F</enum><header display-inline="yes-display-inline">Improvements to the asset-backed
securitization process</header>
<section commented="no" display-inline="no-display-inline" id="H4ECC66E5E26E4D5B8982F6E5B7EFD882" section-type="subsequent-section"><enum>1501.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8D880428F8B24FB8AB6C0D00F7CFE034" section-type="subsequent-section"><enum>1502.</enum><header display-inline="yes-display-inline">Credit risk retention</header>
<subsection commented="no" display-inline="no-display-inline" id="HA46D3D7F158E46779A7E9A9608728ED8"><enum>(a)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H6EBDB795EA07437F92A4460FAF5FD37A" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HA04F8E10EE5C49828231F53B63A8E4BA" section-type="subsequent-section"><enum>29.</enum><header display-inline="yes-display-inline">Credit risk retention</header>
<subsection commented="no" display-inline="no-display-inline" id="H2388BE713DF44FEC9A4ECE5973380095"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H153316EE9C354DA181C7A2D7CC325046"><enum>(1)</enum><header display-inline="yes-display-inline">Interest in loans made by
creditors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF17664669C814C94A511FE566419772F"><enum>(2)</enum><header display-inline="yes-display-inline">Interest in assets backing asset-backed
securities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA68F6F2ED6DE470EAED62B9229D8D2FE"><enum>(b)</enum><header display-inline="yes-display-inline">Alternative risk retention for credit
securitizers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2354A1A5332341F4ADF3A21B129F7784"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDEFE414CFFA24C3EA2CDD9E5445BF825"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H34A45676076E4986ABE3CCDDB8DB9044"><enum>(c)</enum><header display-inline="yes-display-inline">Standards for regulation</header><text display-inline="yes-display-inline">Regulations prescribed under subsections
(a) and (b) shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H579E80A1E12B4DCBAA752B7F6D787CB9"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H031B2B09888F4A0185A2D70C7C1F455C"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H99674546E5BD45E688C3521F29BBA1BC"><enum>(4)</enum><text display-inline="yes-display-inline">set the minimum duration of the required
risk retention.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCC8C23C570E645568491BB7C0523AF80"><enum>(d)</enum><header display-inline="yes-display-inline">Exemptions and adjustments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD142A9699F4E45C4AC1877BF1DC307A0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H206A2C3072FF4880B665E113ED5D3B8D"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable standards</header><text display-inline="yes-display-inline">Any exemptions or adjustments provided
under paragraph (1) shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H01452FDF9DC24FEC9D1412DDC6A0E1E9"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H60964E7351294132B017C8EC34E0EC84"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBA696C337B3345F3885464676D86C9F0"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF2F349574394E0E81D77A7F016945A9"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E73AE6A5DA44686B32DF169507DD881"><enum>(2)</enum><header display-inline="yes-display-inline">Other agencies</header>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBA0F60182E444E1AA2ADEE13BD64C9C2"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC0D34E8BC46A4CC29D65FA6BF37C5277"><enum>(g)</enum><header display-inline="yes-display-inline">Enforcement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2CB4AF6C6CC7426BBBEE30F7DF76F47F"><enum>(1)</enum><text display-inline="yes-display-inline">Compliance with the requirements imposed
under this section shall be enforced under—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H54BF884EA02D461896B47B335E34A93B"><enum>(A)</enum><text display-inline="yes-display-inline">section 8 of the Federal Deposit Insurance
Act (12 U.S.C. 1818), in the case of—</text>
<clause commented="no" display-inline="no-display-inline" id="HD3CE6D05ABEB4AC58D2077E8A8E1AB4E"><enum>(i)</enum><text display-inline="yes-display-inline">national banks, and Federal branches and
Federal agencies of foreign banks, by the Office of the Comptroller of the
Currency;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H84CD92628E9E49F285935B8622F30565"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD95B8DA2E5E14ED59EC8567023FD99D5"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H287B16255D1A47EB90B43FD20F53CC06"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6E04282E60B461E9918557DC8155069"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8D56222E40AF4C41B604D9CDD4D5E4A7"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C5B8A115C9D4B45AA664A85AEED277D"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H27C1F4066FF342AE977C5B22201C3F45"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1B926CF4A15B4F21ABA16D706052732A"><enum>(i)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H818EDCA2AB9C4745BDF682A7248231BC"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H69FB25FAA6534C30BFA09AD866F75BC6"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCCE08DD2D03946C08383B798FD3459A2"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0C9171E3FBC49F5856DCB892F328281"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>securitization
vehicle</term> means a trust, corporation, partnership, limited liability
entity, special purpose entity, or other structure that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3C7BBBCDA98A404AA2FAD2E5B63ADF72"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF2EC9479B4CB434784219E5D35FA2923"><enum>(B)</enum><text display-inline="yes-display-inline">holds such loans.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB8D342D757643DC9B3063F929EC4BEC"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8D942B079BBF41069EACDCBB059F8733"><enum>(b)</enum><header display-inline="yes-display-inline">Study on risk retention</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6A2EF4866E8B4673BF67630D07EC1208"><enum>(1)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC12DA87088274413A9F23DA140299097"><enum>(A)</enum><text display-inline="yes-display-inline">the new credit risk retention requirements
contained in the amendment made by subsection (a); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6754105172784017A94D00373A5F578B"><enum>(B)</enum><text display-inline="yes-display-inline">the Financial Accounting Statements 166 and
167 issued by the Financial Accounting Standards Board.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H225AB2AEE70D4D5485FC31A7FB17EEBE"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H736F6EA6F17047738F76CB41C9CDF899" section-type="subsequent-section"><enum>1503.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H83C5D799913F4C0B86F1AA997727CFD2"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H346EE4829A084AAE86BBBF76BA61C469"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67E581B1E17547A2AFEC6A8648788C4B"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H18503D71E7C44FE792DD054781EA8F29" section-type="subsequent-section"><enum>1504.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC394B725CEB8402E8677D317E838E9B4"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DF334AB9D51451AB2D4360A9B6381D2"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE86044669F464AE2AA67E853EB2CD7C3" section-type="subsequent-section"><enum>1505.</enum><header display-inline="yes-display-inline">Exempted transactions under the Securities
Act of 1933</header>
<subsection commented="no" display-inline="no-display-inline" id="H90A3876FA8EC43C28062CA66B4977621"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 4 of the Securities Act of 1933 (15
U.S.C. 77d) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE00A36485DEB464BB9D93CEFFCB20729"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (5); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A0D4E165B134AFFA2226D6E14FB57AD"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (6) as paragraph
(5).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H30DE3F592F144EC08A3FC7AE450A8560"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFD0E7FF83082415ABE480B721C870704" section-type="subsequent-section"><enum>1506.</enum><header display-inline="yes-display-inline">Study on the macroeconomic effects of risk
retention requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H6A3A8E88CB024F1CA16BCD9D2AF70233"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6AD7B1888B8748D39B3E23CD69282598"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H72B537E0278B44589644D11A70C52400"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H49471A2916D545EA8CEAA0FE75C47B8B"><enum>(3)</enum><text display-inline="yes-display-inline">a comparable analysis for proactively
adjusting mortgage origination requirements;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1E65B17A26E842DCA0DF059C030BDE4D"><enum>(4)</enum><text display-inline="yes-display-inline">an assessment of whether such proactive
adjustments should be made by an independent regulator, or in a formulaic and
transparent manner;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8375F218A6B44339B09F67CE1D58DE57"><enum>(5)</enum><text display-inline="yes-display-inline">an assessment of whether such adjustments
should take place independently or in concert with monetary policy; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEDB2BB6A14AB4E5F83F63221238C77BE"><enum>(6)</enum><text display-inline="yes-display-inline">recommendations for implementation and
enabling legislation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD15F4D3C4B7C4DE29A9DE6D80A951126"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" id="H3EBFFC55A63342FFA0DB1E000C92BE1B" level-type="subsequent"><enum>G</enum><header display-inline="yes-display-inline">Enhanced dissolution authority</header>
<section commented="no" display-inline="no-display-inline" id="HC5BE90DFB64940BAACDE08822E7AAD81" section-type="subsequent-section"><enum>1601.</enum><header display-inline="yes-display-inline">Short title; Purpose</header>
<subsection commented="no" display-inline="no-display-inline" id="HCCBB361E2867441D9D39496A58E86267"><enum>(a)</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="yes-display-inline">This subtitle may be cited as the
<quote>Dissolution Authority for Large, Interconnected Financial Companies Act
of 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE8E010B6A1C64472A1D55D01EF9923D2"><enum>(b)</enum><header display-inline="yes-display-inline">Purpose</header><text display-inline="yes-display-inline">The purpose of this subtitle is to protect
the financial system of the United States in times of severe crisis by
providing for the orderly resolution of large, interconnected financial
companies whose failure could create, or increase, the risk of significant
liquidity, credit, or other financial problems spreading among financial
institutions or markets and thereby threaten the stability of the overall
financial system of the United States. There shall be a strong presumption that
resolution under the bankruptcy laws will remain the primary method of
resolving financial companies, and the authorities contained in this subtitle
will only be used in the most exigent circumstances.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H940BC9B6AB8E4527AA5FF3763764D9F2" section-type="subsequent-section"><enum>1602.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEBC8E923B5EF4C92BC04277009812BA9"><enum>(1)</enum><header display-inline="yes-display-inline">Appropriate regulatory agency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE0539972474C4060BA8322497F4A380E"><enum>(A)</enum><header display-inline="yes-display-inline">Corporation and commission</header><text display-inline="yes-display-inline">The term <term>appropriate regulatory
agency</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="HE90499B0A4B14EE49E108BA8229878C3"><enum>(i)</enum><text display-inline="yes-display-inline">the Corporation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBA4A4D5E27734124AD54AE4C3217B63A"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H064FF07FABC54D5390D371B5E09AF6E0"><enum>(B)</enum><header display-inline="yes-display-inline">Rules of construction</header><text display-inline="yes-display-inline">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 financial company is an insurance
company or 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 commented="no" display-inline="no-display-inline" id="HC0153D65869D48B7AE0D1B35424B217E"><enum>(2)</enum><header display-inline="yes-display-inline">Bridge financial company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FD8D21F1BDF4303879831213D2C557F"><enum>(3)</enum><header display-inline="yes-display-inline">Commission</header><text display-inline="yes-display-inline">The term <term>Commission</term> means the
Securities and Exchange Commission.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF028387B73094AEAA493FE173651DEB6"><enum>(4)</enum><header display-inline="yes-display-inline">Corporation</header><text display-inline="yes-display-inline">The term <term>Corporation</term> means the
Federal Deposit Insurance Corporation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0D1D149D587D43AF802D99FE9B1000C9"><enum>(5)</enum><header display-inline="yes-display-inline">Covered financial company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C7F89AB76714A9C9E9FA95764DA5642"><enum>(6)</enum><header display-inline="yes-display-inline">Covered subsidiary</header><text display-inline="yes-display-inline">The term <term>covered subsidiary</term>
means a subsidiary covered in paragraph (9)(B)(v).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA820109E19944DB4A8F7CCF5278F7C01"><enum>(7)</enum><header display-inline="yes-display-inline">Customer property</header><text display-inline="yes-display-inline">The term <term>customer property</term> has
the meaning ascribed to it in the Securities Investor Protection Act of
1970.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H84900E47091F402580FDBE4775B8E1E1"><enum>(8)</enum><header display-inline="yes-display-inline">Federal reserve board</header><text display-inline="yes-display-inline">The term <term>Federal Reserve Board</term>
means the Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE341D6DA1D44B0AA4D1683B4F26F8EF"><enum>(9)</enum><header display-inline="yes-display-inline">Financial company</header><text display-inline="yes-display-inline">The term <term>financial company</term>
means any company that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC0C38C3CE0BE4EB98634FE44BE71523D"><enum>(A)</enum><text display-inline="yes-display-inline">is incorporated or organized under Federal
law or the laws of any State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF297FB63244D42AC85098C37DF025EFF"><enum>(B)</enum><text display-inline="yes-display-inline">is—</text>
<clause commented="no" display-inline="no-display-inline" id="HEB99E501E1E847EC9C99FDC65C7596D8"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H5A6CA9BCCAB74C2395222F4EBEBAEECC"><enum>(iii)</enum><text display-inline="yes-display-inline">any insurance company;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9DA3C8F7AD594B2DB553D7F61479A66C"><enum>(iv)</enum><text display-inline="yes-display-inline">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
activities that have been identified for stricter prudential standards under
section 1103 of this title; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4ED026E17CCF4D8DAC1A16144CE83065"><enum>(v)</enum><text display-inline="yes-display-inline">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><subparagraph commented="no" display-inline="no-display-inline" id="HDAD484DC6DAF4D2F87B01571A94D841B"><enum>(C)</enum><text display-inline="yes-display-inline">that is not a Farm Credit System
institution chartered under and subject to the provisions of the Farm Credit
Act of 1971, as amended (12 U.S.C. 2001 et seq.);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H309A18BCE00045868553D216A8F7DEE7"><enum>(D)</enum><text display-inline="yes-display-inline">that is not a Federal home loan bank, the
Federal National Mortgage Association, or the Federal Home Loan Mortgage
Corporation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H70B4C2366F1F4C71ABBAEEEA64841EFE"><enum>(E)</enum><text display-inline="yes-display-inline">is not an insured depository institution
(as defined in section 3(c) of the Federal Deposit Insurance act), a Federal
credit union or a State-chartered credit union (as such terms are defined in
section 101 of the Federal Credit Union Act), or a government-sponsored
enterprise (as such term is defined in section 1004(f) of the Financial
Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. 1811
note)).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H39E61DBCFFB84A3DAE45437ACD679823"><enum>(10)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B6CB6023F86446A8970B042F3478E6D"><enum>(11)</enum><header display-inline="yes-display-inline">Insurance company</header><text display-inline="yes-display-inline">The term <term>insurance company</term>
means any entity covered by a State law designed specifically to deal with the
rehabilitation, liquidation, or insolvency of an insurance company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE19C6440BC964011BEED37B59C9EF2D9"><enum>(12)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> shall mean
the Secretary of the Treasury.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2FD484C160774025BF64982ECD3D6739"><enum>(13)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8CAA2897888148FCB2E76A94CE18B4F4"><enum>(14)</enum><header display-inline="yes-display-inline">Certain other terms</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA6F7C8D902BB4F4E90CBE72B49F4CE74" section-type="subsequent-section"><enum>1603.</enum><header display-inline="yes-display-inline">Systemic risk determination</header>
<subsection commented="no" display-inline="no-display-inline" id="H1D75B5B358824E91A712D9C6CDFFF0C0"><enum>(a)</enum><header display-inline="yes-display-inline">Written recommendation of the federal
reserve board and the appropriate regulatory agency</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC6ECB2172CEA465EBAC378D07E2C0504"><enum>(1)</enum><header display-inline="yes-display-inline">Vote required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H593AB3954F5F475AAF9E55B1A3CE0BF5"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the request of the Secretary, the
Chairman of the Federal Reserve Board, or the appropriate regulatory agency,
the Board and the appropriate regulatory agency shall, or on their own
initiative the 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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD19DD70DA1A34A5B959772A5E10A7814"><enum>(B)</enum><header display-inline="yes-display-inline">Two-thirds agreement</header><text display-inline="yes-display-inline">Any recommendation under subparagraph (A)
shall be made upon a vote of not less than two-thirds of the members of the
Federal Reserve Board then serving and not less than two thirds of any members
of the board or commission then serving of the appropriate regulatory agency,
as applicable.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H70B3BB58B78E4E55B4689C36981CF786"><enum>(2)</enum><header display-inline="yes-display-inline">Recommendation required</header><text display-inline="yes-display-inline">Any written recommendations made by the
Federal Reserve Board and the appropriate regulatory agency under paragraph (1)
shall contain the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9C3112ABC5D64DA099C2ABDC3C0BB006"><enum>(A)</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 in the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H99EDFB55C23F41889F3B6AAE74E3DCBF"><enum>(C)</enum><text display-inline="yes-display-inline">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 company.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2221D17185B24490AFABC9B6B0B54B57"><enum>(b)</enum><header display-inline="yes-display-inline">Determination by the
secretary</header><text display-inline="yes-display-inline">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 appropriate regulatory
agency as provided for in subsection (a)(1), the Secretary (in consultation
with the President) determines that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H43A3BB5051C440E48E9FD4FD464D8B87"><enum>(1)</enum><text display-inline="yes-display-inline">the financial company is in default or is
in danger of default;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8ED08E4612FC44DAA73DBBAB7945F30E"><enum>(2)</enum><text display-inline="yes-display-inline">the failure of the financial company and
its dissolution 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 commented="no" display-inline="no-display-inline" id="H70B6251319614D6DBF89E134C61A05E8"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HB28CA4C5EE004C2185B7BF3F904F4DC8"><enum>(c)</enum><header display-inline="yes-display-inline">Documentation and review</header>
<paragraph commented="no" display-inline="no-display-inline" id="H49A3B5C0C1D84AE0A5833AF191B39472"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H223DC0AD533D41A8A134AD79F513C443"><enum>(A)</enum><text display-inline="yes-display-inline">document any determination under subsection
(b); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED234381E2B9414F8C9191682ED6E04B"><enum>(B)</enum><text display-inline="yes-display-inline">retain the documentation for review under
paragraph (2).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAFF7FAE3759542F39A16362843557D2E"><enum>(2)</enum><header display-inline="yes-display-inline">GAO review</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall review and report to the Congress on any determination under
subsection (b), including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H323FA1100F7448A7B8C3A29506543886"><enum>(A)</enum><text display-inline="yes-display-inline">the basis for the determination;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0BC8462D5761406B9602EB63C228DE7E"><enum>(B)</enum><text display-inline="yes-display-inline">the purpose for which any action was taken
pursuant thereto; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H23640701C5354EF2A4462DD05A471FBE"><enum>(C)</enum><text display-inline="yes-display-inline">the likely effect of the determination and
such action on the incentives and conduct of financial companies and their
creditors, counterparties, and shareholders.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H24418F517E814AD89E6115116D5B6CBB"><enum>(3)</enum><header display-inline="yes-display-inline">Report to congress</header><text display-inline="yes-display-inline">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 and the
Committee on the Judiciary of the Senate and the Committee on Financial
Services and the Committee on the Judiciary of the House of Representatives.
The notice shall include a description of the basis for the
determination.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAFD95E4973A74256B41C23F8F611ABAD"><enum>(d)</enum><header display-inline="yes-display-inline">Default or in danger of
default</header><text display-inline="yes-display-inline">For purposes of
subsection (b), a financial company 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 commented="no" display-inline="no-display-inline" id="H75201B5B9D7841668A468CCAA3F2A45F"><enum>(1)</enum><text display-inline="yes-display-inline">A case has been, or likely will promptly
be, commenced with respect to the financial company under title 11, United
States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H36313D24F11046BFA2AC1B6213D6A964"><enum>(2)</enum><text display-inline="yes-display-inline">The financial company is critically
undercapitalized, as such term has been or may be defined by the Federal
Reserve Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9A9A69E6D50A460FAC210C6F8D7FB80D"><enum>(3)</enum><text display-inline="yes-display-inline">The financial company has incurred, or is
likely to incur, losses that will deplete all or substantially all of its
capital, and there is no reasonable prospect for the company to avoid such
depletion without assistance under section 1604.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98848900A13346D097F241E30A01F4B9"><enum>(4)</enum><text display-inline="yes-display-inline">The assets of the financial company are, or
are likely to be, less than its obligations to creditors and others.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3F98499DC7E94445B054801F9371D952"><enum>(5)</enum><text display-inline="yes-display-inline">The financial company is, or is likely to
be, unable to pay its obligations (other than those subject to a bona fide
dispute) in the normal course of business.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H02396DAC336D4ECF9EFEDCE8D8773AA2" section-type="subsequent-section"><enum>1604.</enum><header display-inline="yes-display-inline">Dissolution; stabilization</header>
<subsection commented="no" display-inline="no-display-inline" id="H613B9A9319BA40A7AB6592A4DA1DC521"><enum>(a)</enum><header display-inline="yes-display-inline">Appointment of receiver</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0360CA12250F4B9C8C7872F01EABD9A0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H254A07C8348C48AEB83B7D43572FB7FF"><enum>(2)</enum><header display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H34E85DDC1D8040318EDE4DC6D8980521"><enum>(3)</enum><header display-inline="yes-display-inline">Extension of time limit</header><text display-inline="yes-display-inline">The time limit established in paragraph (2)
may be extended by the Secretary for up to 1 additional year if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5AB47A6B840D463FBC94EA8800DCC58F"><enum>(A)</enum><text display-inline="yes-display-inline">the Corporation has not completed the
dissolution of the company within the time provided in paragraph (2);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0FC7D539F6D54039B5AD3CC3006269DB"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary certifies in writing that
continuation of the receivership is necessary—</text>
<clause commented="no" display-inline="no-display-inline" id="HAE5A924EA7CD4234BA31FE4BE830045F"><enum>(i)</enum><text display-inline="yes-display-inline">to protect the best interests of the
taxpayers of the United States; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7CA07D6898C644029FA24C2550FE5895"><enum>(ii)</enum><text display-inline="yes-display-inline">to protect the stability of the financial
system and the economy of the United States.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3412D9C0778458CA98CAFA39495D4B7"><enum>(4)</enum><header display-inline="yes-display-inline">Further extension</header><text display-inline="yes-display-inline">The time limit, as extended in paragraph
(3), may be extended for up to 1 additional year if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H65E8A0657A6F4CA299D81C7DD8173510"><enum>(A)</enum><text display-inline="yes-display-inline">the conditions of paragraph (3) are met;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H08630F4DA0C94FAC89CFCF906E5B613C"><enum>(B)</enum><text display-inline="yes-display-inline">the Corporation submits a report to the
Congress, no later than 60 days before the receivership will expire under the
extended limit under paragraph (3), that describes in detail—</text>
<clause commented="no" display-inline="no-display-inline" id="H316204869DCA43E3AF09E489A75A37B1"><enum>(i)</enum><text display-inline="yes-display-inline">the basis for the determination by the
Corporation that a second extension is necessary; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H96E55DFFAAAF43E195B5E70E58AC515A"><enum>(ii)</enum><text display-inline="yes-display-inline">the specific plan of the Corporation for
concluding the receivership before the end of the proposed additional
year.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H97080AB30E0142649A62DE8606325089"><enum>(b)</enum><header display-inline="yes-display-inline">Dissolution limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H430EE3BA93D74AA1854916C08544B103"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An insolvent financial company may be
dissolved under this subtitle only if the failure and dissolution 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 commented="no" display-inline="no-display-inline" id="H89C74FC022A74141B3350345713D460F"><enum>(2)</enum><header display-inline="yes-display-inline">Liquidation</header><text display-inline="yes-display-inline">A financial company that comes within
coverage of this subtitle for dissolution 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 commented="no" display-inline="no-display-inline" id="HD678BAE0FC49420EA8022B19FCB3CEA4"><enum>(3)</enum><header display-inline="yes-display-inline">Assessment for excess liquidation
costs</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9B18AB4634A46AC9273D3A3562E644F"><enum>(c)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">The Corporation, as receiver—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE82EB112AE5042CDAE0D51525D2974CE"><enum>(1)</enum><text display-inline="yes-display-inline">shall consult with the regulators of the
covered financial company and its covered subsidiaries for purposes of ensuring
an orderly dissolution of the covered financial company;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB0A0F5A5F6141A4B9B7D77995E1B2E0"><enum>(2)</enum><text display-inline="yes-display-inline">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 dissolution
process; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB5EA6021889444A2A95E513A7A312C0A"><enum>(3)</enum><text display-inline="yes-display-inline">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)(v) and coordinate with such
regulators regarding the treatment of such solvent subsidiaries and the
separate dissolution of any such insolvent subsidiaries under other
governmental authority, as appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7815D86916E6488D89C773425F998DA2"><enum>(d)</enum><header display-inline="yes-display-inline">Emergency stabilization after appointment
of receiver</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H314C5189C9B7479E889DDEEBFC9AE591"><enum>(1)</enum><text display-inline="yes-display-inline">Making loans to, or purchasing any debt
obligation of, the covered financial company or any covered subsidiary.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCEF8CA983C614191B64D57E9E5307D6D"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0FBC1C5732EA4CD8BCC2798E91529893"><enum>(3)</enum><text display-inline="yes-display-inline">Assuming or guaranteeing the obligations of
the covered financial company or any covered subsidiary to one or more third
parties.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H066A669FDF9D4E0686C52DBC5F784291"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF24D5DD06F6C4D02B92CD4A1D78C4D13"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB3BAC0885C1E46C9982E50F4E8BA9DF5"><enum>(e)</enum><header display-inline="yes-display-inline">Treatment of insurance companies and
insurance company subsidiaries</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAF8773D60AB34191BDF5FFB90938D5DF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding subsection (a), if an
insurance company covered by a State law designed specifically to deal with the
rehabilitation, liquidation or insolvency of an insurance company is a covered
financial company or a subsidiary of a covered financial company, resolution of
such insurance company, and any subsidiary of such company, will be conducted
as provided under such State law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H678646287AE24281B3E02F675C061770"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for covered
subsidiaries</header><text display-inline="yes-display-inline">The requirement
of paragraph (1) shall not apply with respect to any covered subsidiary of such
an insurance company, that is not itself an insurance company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A2BADF719944740954A4BAAF951FCC2"><enum>(3)</enum><header display-inline="yes-display-inline">Backup authority</header><text display-inline="yes-display-inline">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 dissolution 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 dissolution under the
State’s laws and requirements.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H683B595CB1604FD39FF2134CC2DFBE96"><enum>(f)</enum><header display-inline="yes-display-inline">Mandatory terms and conditions for all
stabilization actions</header><text display-inline="yes-display-inline">The
Corporation as receiver is authorized to take the stabilization actions listed
in subsection (d) only if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAB24D87FEA4641609ED3C4088FC4C83B"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA5984BE227047CB9AF55381BE19A3C8"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HF7140A0D6CC24CC4BBEC3F3126C30A71"><enum>(4)</enum><text display-inline="yes-display-inline">the Corporation ensures that unsecured
creditors bear losses;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBD9E539EB7894494ADDA68C1306CF0A6"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA2A27C28ADC64F3BB8683A8523D3B367"><enum>(g)</enum><header display-inline="yes-display-inline">Recoupment of funds expended for systemic
stabilization purposes</header><text display-inline="yes-display-inline">Amounts expended from the Fund by the
Corporation under this section shall be repaid in full to the Fund only from
the following sources:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8C359A580B9B487889624D5485B8B327"><enum>(1)</enum><header display-inline="yes-display-inline">Dissolution 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 commented="no" display-inline="no-display-inline" id="H597F766C55844807A9AC6519BF42D0F1"><enum>(2)</enum><header display-inline="yes-display-inline">Industry assessments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H076B956F8461465FABBD2358EE0B76AB" section-type="subsequent-section"><enum>1605.</enum><header display-inline="yes-display-inline">Judicial review</header><text display-inline="no-display-inline">If a receiver is appointed in accordance
with section 1604, 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 commented="no" display-inline="no-display-inline" id="HC18739181AEB49F1815EF25A4270F059" section-type="subsequent-section"><enum>1606.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC2EA4ABBCC2B4EF09286D985BF715086"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary’s appointment of the
Corporation as receiver for the covered financial company under section 1604;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17ABC7C68D5F4BA2A264EE5D527004CA"><enum>(2)</enum><text display-inline="yes-display-inline">an acquisition, combination, or transfer of
assets or liabilities under section 1609.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4DDFDB022D464BADB1FF41A88524FD31" section-type="subsequent-section"><enum>1607.</enum><header display-inline="yes-display-inline">Termination and exclusion of other
actions</header>
<subsection commented="no" display-inline="no-display-inline" id="H8691999F44CF40CBA8D27E0EDB35F2C1"><enum>(a)</enum><header display-inline="yes-display-inline">Termination and exclusion of
bankruptcy</header><text display-inline="yes-display-inline">The Corporation’s
acting as receiver for a covered financial company under this subtitle 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>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H39DAA3894CC44E9EA7AB41D013F36FAE"><enum>(b)</enum><header display-inline="yes-display-inline">Conversion to bankruptcy</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEAFC564385334B738703F732460FE948"><enum>(1)</enum><header display-inline="yes-display-inline">Conversion</header><text display-inline="yes-display-inline">The Corporation may at any time, with the
approval of the Secretary and after consulting with the Council, convert the
receivership of a covered financial company to a proceeding under chapter 7 or
11 of title 11, United States Code, by filing a petition against the covered
financial company under section 303(m) of such title. The Corporation may serve
as the trustee for the covered financial company in bankruptcy.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA727E3684E904CC9B92D2BC1FB4B02C8"><enum>(2)</enum><header display-inline="yes-display-inline">Bridge financial company</header><text display-inline="yes-display-inline">The Corporation’s exercise of authority
under paragraph (1) shall not affect any powers or duties of the Corporation
with regard to any bridge financial company established under section
1609(h).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC2567425E8A344BC82D313D83458BF69"><enum>(c)</enum><header display-inline="yes-display-inline">Reporting to the Congress</header>
<paragraph commented="no" display-inline="no-display-inline" id="H115DB0559B954A9284271A86EA385FCF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9F770D8471024387BBCED46B809CCD10"><enum>(A)</enum><header display-inline="yes-display-inline">Initial
report</header><text display-inline="yes-display-inline">Upon the appointment
of the Corporation as receiver under section 1604(a), the Corporation shall
issue a report on the issue described under paragraph (3)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC694BC55CE294F289AD14CA4A498C0D5"><enum>(B)</enum><header display-inline="yes-display-inline">Continuing reports</header><text display-inline="yes-display-inline">At the end of each 180-day period after the
appointment of the Corporation as receiver under section 1604(a), and
continuing while the Corporation is acting as receiver, the Corporation shall
issue a report on the issues described under subparagraphs (A) through (C) of
paragraph (3).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB6C4F863525433F8486C218E054E271"><enum>(2)</enum><header display-inline="yes-display-inline">Committees to receive reports</header><text display-inline="yes-display-inline">Reports issued under this subsection shall
be issued to the Committee on Banking, Housing, and Urban Affairs and the
Committee on the Judiciary of the Senate and the Committee on Financial
Services and the Committee on the Judiciary of the House of
Representatives.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD661E35865314E6E8E3CD838C1FAB89D"><enum>(3)</enum><header display-inline="yes-display-inline">Reporting issues</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE56A8CE0E268404F903E33F2016A842E"><enum>(A)</enum><text display-inline="yes-display-inline">Why the receivership should continue
instead of converting the receivership into a proceeding under chapter 7 or 11
of title 11, United States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEF319E11E8BC438EB53DDDD1E9E9930F"><enum>(B)</enum><text display-inline="yes-display-inline">The extent to which unsecured creditors are
likely to receive at least as much as they would receive if the receivership of
the covered financial company was converted to a case under chapter 7 of title
11, United States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3B295F107E8C4C2C870114F115902FA9"><enum>(C)</enum><text display-inline="yes-display-inline">An explanation of each instance where the
Corporation as receiver of a covered financial company waived the requirement
of 12 CFR Part 366 with respect to conflicts of interest by any person in the
private sector who was retained to provide services to the Corporation in
connection with such receivership.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H435FCB521F394EC3B46453BF2C786DAA" section-type="subsequent-section"><enum>1608.</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="no-display-inline">The Corporation may, after following the
notice and comment rulemaking requirements under the Administrative Procedure
Act, prescribe such regulations as the Corporation considers necessary or
appropriate to implement the provisions of this title.</text>
</section><section commented="no" display-inline="no-display-inline" id="H17D393414ADB45788E639A7479189242" section-type="subsequent-section"><enum>1609.</enum><header display-inline="yes-display-inline">Powers and duties of corporation</header>
<subsection commented="no" display-inline="no-display-inline" id="H37FD029EAC044961974FFE50D0FF6A16"><enum>(a)</enum><header display-inline="yes-display-inline">Powers and authorities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4761FE116DD340039AE40C0C4B280CDB"><enum>(1)</enum><header display-inline="yes-display-inline">General powers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEE9D14E9C2B54720A5A6142A223600F3"><enum>(A)</enum><header display-inline="yes-display-inline">Successor to covered financial
company</header><text display-inline="yes-display-inline">The Corporation
shall, upon appointment as receiver for a covered financial company under
section 1604, and by operation of law, succeed to—</text>
<clause commented="no" display-inline="no-display-inline" id="H77E0CA3AC08E4E5D82F0143F3AECDD50"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08358B0EC62F4893B3637B22301051C8"><enum>(ii)</enum><text display-inline="yes-display-inline">title to the books, records, and assets of
any previous receiver or other legal custodian of such covered financial
company.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEC7483A4B3D94419B778273A7FABEF6D"><enum>(B)</enum><header display-inline="yes-display-inline">Operate the covered financial
company</header><text display-inline="yes-display-inline">The Corporation as
receiver for a covered financial company may—</text>
<clause commented="no" display-inline="no-display-inline" id="HEE8021E9D8A34894A38A85231AC89704"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52369E7497694D1B830451AE8D9BF7F3"><enum>(ii)</enum><text display-inline="yes-display-inline">collect all obligations and money due the
covered financial company;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB162894D16904F1CBA47B7F38AAB1081"><enum>(iii)</enum><text display-inline="yes-display-inline">perform all functions of the covered
financial company in the name of the covered financial company;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC88B39810ABE41C8AD922214BDC92590"><enum>(iv)</enum><text display-inline="yes-display-inline">preserve and conserve the assets and
property of the covered financial company; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDE15DB91032C499F9AB9C96B36372EF9"><enum>(v)</enum><text display-inline="yes-display-inline">provide by contract for assistance in
fulfilling any function, activity, action, or duty of the Corporation as
receiver.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB4F648A142E24B3DA08B67818FA313CA"><enum>(C)</enum><header display-inline="yes-display-inline">Functions of covered financial company’s
officers, directors, and shareholders</header>
<clause commented="no" display-inline="no-display-inline" id="H8F7BC75F877F406786950A565414970D"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H244A08BF1AAC475BAA80D69BFE67C48A"><enum>(ii)</enum><header display-inline="yes-display-inline">Presumption</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4CD0997D3E1A49CC9E89906C29932FDA"><enum>(D)</enum><header display-inline="yes-display-inline">Additional powers as receiver</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H09D9B72DD054498A92B3D6314C3FC9C8"><enum>(E)</enum><header display-inline="yes-display-inline">Organization of new companies</header><text display-inline="yes-display-inline">The Corporation as receiver may organize a
bridge financial company under subsection (h).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H41FE4E40D66249B399FEBF899F64D291"><enum>(F)</enum><header display-inline="yes-display-inline">Merger; transfer of assets and
liabilities</header>
<clause commented="no" display-inline="no-display-inline" id="HD4D500574F254F19B01BF26429B39EE8"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to clause (ii), the Corporation as
receiver may—</text>
<subclause commented="no" display-inline="no-display-inline" id="H91FA9ECB81D048FCB8495D2777319149"><enum>(I)</enum><text display-inline="yes-display-inline">merge the covered financial company with
another company; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3C09EFEB25D74993A754622E38279FC9"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H15CDEDDFB2984FED8405786D9CBEB722"><enum>(ii)</enum><header display-inline="yes-display-inline">Federal agency approval; antitrust
review</header>
<subclause commented="no" display-inline="no-display-inline" id="HE581E4EFE7CD4753B8BB519B0174C7D8"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 notification under section 7A of the Clayton
Act is required with respect to such transaction, then the required waiting
period shall end on the 15th day after the date on which the Attorney General
and the Federal Trade Commission receive such notification, unless the waiting
period is terminated earlier under subsection (b)(2) of such section, or is
extended pursuant to subsection (e)(2) of such section.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0390209A683945EB9124BAF05D9DA73C"><enum>(II)</enum><header display-inline="yes-display-inline">Emergency</header><text display-inline="yes-display-inline">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 approval and prior notification referred to in subclause (I)
shall not be required and the transaction may be consummated immediately by the
Corporation. The preceding sentence shall not otherwise modify, impair, or
supercede the operation of any of the antitrust laws (as defined 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
relates to unfair methods of competition).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE3EF7DABB49D47DD937F7BF239A9D8FA"><enum>(G)</enum><header display-inline="yes-display-inline">Payment of valid obligations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA652E8C622D14BFB84E85F039E439E88"><enum>(H)</enum><header display-inline="yes-display-inline">Subpoena authority</header>
<clause commented="no" display-inline="no-display-inline" id="H6F93F31F3D6D4591AB1BFB1E55559559"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81B41B380CDE4CCE8883783C7A7CB496"><enum>(ii)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFBC276A0B1D74B9291EADB75CDCAC653"><enum>(I)</enum><header display-inline="yes-display-inline">Incidental powers</header><text display-inline="yes-display-inline">The Corporation, as receiver, may—</text>
<clause commented="no" display-inline="no-display-inline" id="H36C5A2BE8E614F0AA4E8B6379E71180A"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DDFBAC7D9784FEFB2930836406B65BD"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H04A97AF3FA03450D8D0992FC9F51F9D8"><enum>(J)</enum><header display-inline="yes-display-inline">Utilization of private sector</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H49F67C31D19B4C5C808688ADE2363595"><enum>(K)</enum><header display-inline="yes-display-inline">Shareholders and creditors of covered
financial company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37F3A00CC890446EB7B5DDBD6F50D988"><enum>(L)</enum><header display-inline="yes-display-inline">Coordination with foreign financial
authorities</header><text display-inline="yes-display-inline">The Corporation
as receiver for a covered financial company shall coordinate with the
appropriate foreign financial authorities regarding the dissolution of
subsidiaries of the covered financial company that are established in a country
other than the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0083547025AD48BDBE4401F363C80F72"><enum>(M)</enum><header display-inline="yes-display-inline">Appointment of Consumer Privacy
Advisor</header>
<clause commented="no" display-inline="no-display-inline" id="H40DAE3D695A84A56A0050159DA43D79D"><enum>(i)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">Upon the appointment of the Corporation as
receiver under section 1604(a), the Corporation shall appoint a Consumer
Privacy Advisor.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFDD667F3581B41C1B7A556587DDC3BE6"><enum>(ii)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The Consumer Privacy Advisor appointed
under clause (i) shall advise the Corporation with respect to—</text>
<subclause commented="no" display-inline="no-display-inline" id="H0DCCE6A1334C4FA5BD3F104B8EA27187"><enum>(I)</enum><text display-inline="yes-display-inline">the covered financial company’s consumer
privacy policies;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H2262E01B755E4B9B856DC1E0048DB6BF"><enum>(II)</enum><text display-inline="yes-display-inline">the potential losses or gains of privacy to
consumers upon any sale, lease, or other transfer of material assets of the
covered financial company;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H34DCD3570F954AF6BA77270B9ABAF575"><enum>(III)</enum><text display-inline="yes-display-inline">the potential costs or benefits to
consumers upon any sale, lease, or other transfer of material assets of the
covered financial company; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC7FA78C844EF446C9FEBCB335C5E07AB"><enum>(IV)</enum><text display-inline="yes-display-inline">the potential alternatives that would
mitigate potential privacy loses or potential costs to consumers.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H087AA0C84A704A6D9FE2FB4A6525DAAB"><enum>(2)</enum><header display-inline="yes-display-inline">Authority of corporation to determine
claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H94FB977304D5459C9E003EA86A4E4723"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Corporation may, as receiver, determine
claims in accordance with the requirements of this subsection and regulations
prescribed under paragraph (3).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H127DE33AF669466A810655DA377CEFCF"><enum>(B)</enum><header display-inline="yes-display-inline">Notice requirements</header><text display-inline="yes-display-inline">The receiver, in any case involving the
liquidation or winding up of the affairs of a covered financial company,
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H19342880987349E2B07435A1DBAE5A9B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8F84AEF045E046C9B44EE86AF88C4369"><enum>(ii)</enum><text display-inline="yes-display-inline">republish such notice approximately 1 month
and 2 months, respectively, after the publication under clause (i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE7FB65B0E6CA45D68963BD63F101D397"><enum>(C)</enum><header display-inline="yes-display-inline">Mailing required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC425AE7C36934E718466E0CC442E5E3E"><enum>(i)</enum><text display-inline="yes-display-inline">at the creditor’s last address appearing in
such books; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9293C6E71BD04E61815F73456BC09687"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86A828E7ED5243A5BAE1B55AB2117E90"><enum>(3)</enum><header display-inline="yes-display-inline">Rulemaking authority relating to
determination of claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC2674555E31452EB83FA49590824D13"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to subsection (b), the Corporation
shall, after following the notice and comment rulemaking requirements under the
Administrative Procedure Act, 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 commented="no" display-inline="no-display-inline" id="H2D570ACA153741E4A90DC5D383C68247"><enum>(B)</enum><header display-inline="yes-display-inline">Existing
rules</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3348E8934CF84EE58DB310A46F02C76D"><enum>(4)</enum><header display-inline="yes-display-inline">Procedures for determination of
claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H543C83A8ACDE44F9B4ECA4FA2BA40550"><enum>(A)</enum><header display-inline="yes-display-inline">Determination period</header>
<clause commented="no" display-inline="no-display-inline" id="HD89E1107B49643DAA965592F09B19EB7"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H191766C95510483081AE8173E59FBA5D"><enum>(ii)</enum><header display-inline="yes-display-inline">Extension of time</header><text display-inline="yes-display-inline">The period described in clause (i) may be
extended by a written agreement between the claimant and the
Corporation.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6388DA636AFA4611B888ACB2117EC702"><enum>(iii)</enum><header display-inline="yes-display-inline">Mailing of notice sufficient</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1D9E2A3392844518A59831C78B36136A"><enum>(I)</enum><text display-inline="yes-display-inline">on the covered financial company’s
books;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3FB7DC8ED88045E6BFDF2C835505F57C"><enum>(II)</enum><text display-inline="yes-display-inline">in the claim filed by the claimant;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6666D1A420A74A9D91B2A9973F0D6D8B"><enum>(III)</enum><text display-inline="yes-display-inline">in documents submitted in proof of the
claim.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4CC5FCC882384C84BD2F9D96696765D6"><enum>(iv)</enum><header display-inline="yes-display-inline">Contents of notice of
disallowance</header><text display-inline="yes-display-inline">If any claim
filed under clause (i) is disallowed, the notice to the claimant shall
contain—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2DF45929AE68409E841F3751D3CBA6E0"><enum>(I)</enum><text display-inline="yes-display-inline">a statement of each reason for the
disallowance; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H878F2717988341108A4AA22F85914DF2"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CC1B887A9AF4C7C9A60E1544260CC00"><enum>(B)</enum><header display-inline="yes-display-inline">Allowance of proven claim</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAD7DDF7F57DD4870A30C0F94BAFB3B5D"><enum>(C)</enum><header display-inline="yes-display-inline">Disallowance of claims filed after end of
filing period</header>
<clause commented="no" display-inline="no-display-inline" id="H1CB67B0A09FB482E812993B0B226C37E"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA4B156CAF312463EA999F63555FED0AB"><enum>(ii)</enum><header display-inline="yes-display-inline">Certain exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC98C72F7A3E0427AB4B7BAB87C4D95A8"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H90AF14F4C59C48F788650930C62EF6DF"><enum>(II)</enum><text display-inline="yes-display-inline">such claim is filed in time to permit
payment of such claim.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H524724D32A2E4754BD18E1B443EF95D3"><enum>(D)</enum><header display-inline="yes-display-inline">Authority to disallow claims</header>
<clause commented="no" display-inline="no-display-inline" id="HA297D26324644D8DB7D67A68EC9C2DC2"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47BEDCC958064B9EA614B407078F2AB9"><enum>(ii)</enum><header display-inline="yes-display-inline">Payments to less than fully secured
creditors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6EEB34C4298E4FD6BC34BC2863528E8C"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75CC9C30410C4970AB61DE59097AC3A5"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50E622953C0A4BCA9D55FDABDC10CEAB"><enum>(iii)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">No provision of this paragraph shall apply
with respect to—</text>
<subclause commented="no" display-inline="no-display-inline" id="H18070CA47E4F4D1B8155793F1F347B71"><enum>(I)</enum><text display-inline="yes-display-inline">any extension of credit from any Federal
Reserve bank, or the Corporation, to any covered financial company; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HECC1EB1D46BD45AAB189844E7D42DE18"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCC91DEFD7F4B4D6E90375C1FC5996D80"><enum>(iv)</enum><header display-inline="yes-display-inline">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 dissolution 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 in assets of the covered financial company
arising under a qualified financial contract (as defined under subsection
(c)(8)(D)(i)) with an original term of 30 days or less (except that, for a
contract for a term linked to a calendar month, the original term must be less
than 1 calendar month), secured by collateral other than securities issued by
the United States Treasury, the Board of Governors of the Federal Reserve
System, any agency of the United States, any Federal Reserve bank, or any
Government Sponsored Enterprise, that became a legally enforceable or perfected
security interest after the date of the enactment of this clause, and that is
not a 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 specified under clause (v) 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. This clause shall not apply
with respect to debt obligations secured by real property. This clause may only
be implemented with respect to secured creditors if, as a result of the
dissolution of the covered financial company, no funds are available to
satisfy, in whole or in part, any claims of unsecured creditors or
shareholders.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H51A32BE2571F47BFADD8F13DEEFB43F6"><enum>(v)</enum><header display-inline="yes-display-inline">Amount specified</header><text display-inline="yes-display-inline">For purposes of clause (iv), the amount
specified under this clause, in the case of a secured creditor, is the amount
of up to 10 percent.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE934B2F0C4F40A386FEB5285BB41547"><enum>(E)</enum><header display-inline="yes-display-inline">No judicial review of determination
pursuant to subparagraph (d)</header><text display-inline="yes-display-inline">No court may review the Corporation
determination pursuant to subparagraph (D) to disallow a claim.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77F1573CEB284B66AD87E3A3ED1E986A"><enum>(F)</enum><header display-inline="yes-display-inline">Legal effect of filing</header>
<clause commented="no" display-inline="no-display-inline" id="HA735D300F9EA410FB306055E9EAA37A8"><enum>(i)</enum><header display-inline="yes-display-inline">Statute of limitation tolled</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E82459F2F0D4DA2ADF44CE0F4791D86"><enum>(ii)</enum><header display-inline="yes-display-inline">No prejudice to other actions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H98EA50D88B1F42B79BDD4008DDEA2D2D"><enum>(5)</enum><header display-inline="yes-display-inline">Provision for judicial determination of
claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H109DB9918EE648ECA701C344C7CF5989"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Before the end of the 60-day period
beginning on the earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="H9CEAF33DCFED44C288857AD12C4FA598"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67ACD2994670425A9B90805E06A0C451"><enum>(ii)</enum><text display-inline="yes-display-inline">the date of any notice of disallowance of
such claim pursuant to paragraph (4)(A)(i),</text>
</clause><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="H71B796D863814E0F9E5FE28FCB675FC8"><enum>(B)</enum><header display-inline="yes-display-inline">Statute of limitations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA93F71FD0D2749D19929D43EBC24DB96"><enum>(6)</enum><header display-inline="yes-display-inline">Expedited determination of claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB6F06D05BA834445ADCC842164CA6A3D"><enum>(A)</enum><header display-inline="yes-display-inline">Establishment required</header><text display-inline="yes-display-inline">The Corporation shall establish a procedure
for expedited relief outside of the routine claims process established under
paragraph (4) for claimants who—</text>
<clause commented="no" display-inline="no-display-inline" id="HF3371EE615314006AAED17D9A5B20BFE"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F1F399A7FD843C69EAECFCFDAC95022"><enum>(ii)</enum><text display-inline="yes-display-inline">allege that irreparable injury will occur
if the routine claims procedure is followed.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H978631AE26E64517A212B51125F1E83B"><enum>(B)</enum><header display-inline="yes-display-inline">Determination period</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B1E84BCC5934E28ACCEC03FD68CAC7D"><enum>(i)</enum><text display-inline="yes-display-inline">determine—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2A9CC566D4824588AA67A51DBDD68421"><enum>(I)</enum><text display-inline="yes-display-inline">whether to allow or disallow such claim;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9E4B4D4154A34AEF847949871BD950DB"><enum>(II)</enum><text display-inline="yes-display-inline">whether such claim should be determined
pursuant to the procedures established pursuant to paragraph (4); and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HDFFCDA43B9544441A923841242E1F33D"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36988B51C84F40E6BDEB1B28F2C2F183"><enum>(C)</enum><header display-inline="yes-display-inline">Period for filing or renewing
suit</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF5984565F45F4284BE2110AA707A53CE"><enum>(i)</enum><text display-inline="yes-display-inline">the end of the 90-day period beginning on
the date of the filing of a request for expedited relief; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5F17F972C1164E388D1EFA3B2E0C2F53"><enum>(ii)</enum><text display-inline="yes-display-inline">the date the Corporation denies the
claim.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51F3C8BBEEE84615B5B660709D368A6B"><enum>(D)</enum><header display-inline="yes-display-inline">Statute of limitations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52C8BB42191047A9ADC3A764C343EEDA"><enum>(E)</enum><header display-inline="yes-display-inline">Legal effect of filing</header>
<clause commented="no" display-inline="no-display-inline" id="HA394C8B205624FED9283B568C6E6F626"><enum>(i)</enum><header display-inline="yes-display-inline">Statute of limitation tolled</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFC84545293FD46F0BB3B42BACCB2867C"><enum>(ii)</enum><header display-inline="yes-display-inline">No prejudice to other actions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA991892F06A4BC08C31B897389AC7DA"><enum>(7)</enum><header display-inline="yes-display-inline">Agreements against interest of the
receiver</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC96EA86FBDE74E16A904DA7468ECDA7C"><enum>(8)</enum><header display-inline="yes-display-inline">Payment of claims</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA6782AC86EF457098997407AAAA9D15"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E94AAFD13A948B4A06A48D9911F8513"><enum>(i)</enum><text display-inline="yes-display-inline">allowed by the receiver;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6C4BE171AC4243F6900BC5F9459AC55B"><enum>(ii)</enum><text display-inline="yes-display-inline">approved by the Corporation pursuant to a
final determination pursuant to paragraph (6); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA4FF3A4153AC4943AE0EA7BFD8CE78B4"><enum>(iii)</enum><text display-inline="yes-display-inline">determined by the final judgment of any
court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H092E6AE2049E44D3941CCFEA339E8B0A"><enum>(B)</enum><header display-inline="yes-display-inline">Payment of dividends on
claims</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC192A79DE4504039A2D2106EBFCF55C6"><enum>(C)</enum><header display-inline="yes-display-inline">Rulemaking authority of
corporation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD60576C4D8D144178BAD0044052593D8"><enum>(9)</enum><header display-inline="yes-display-inline">Suspension of legal actions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H24596132CC924D22B4CEC108BA943A42"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H365E629981CB4CC09A6A9BC637111446"><enum>(B)</enum><header display-inline="yes-display-inline">Grant of stay by all courts
required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFF40FAD12CB54B0382FF03A18747635E"><enum>(10)</enum><header display-inline="yes-display-inline">Additional rights and duties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H023B00A744FB4C87A9CA17E7F9EB03CF"><enum>(A)</enum><header display-inline="yes-display-inline">Prior final adjudication</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95413299A5144F9DB0A49C139E8BFF06"><enum>(B)</enum><header display-inline="yes-display-inline">Rights and remedies of
receiver</header><text display-inline="yes-display-inline">In the event of any
appealable judgment, the Corporation as receiver shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H00B4BAD25B3C46FEA83923B0E405A81B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H594EC30FAE9F48F39E518002F2FE596D"><enum>(ii)</enum><text display-inline="yes-display-inline">not be required to post any bond in order
to pursue such remedies.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF993291F1AF84808B326FEC620FB3A93"><enum>(C)</enum><header display-inline="yes-display-inline">No attachment or execution</header><text display-inline="yes-display-inline">No attachment or execution may issue by any
court upon assets in the possession of the receiver.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA62ABD23CF484ABE9F25B5FEEBA2C3F3"><enum>(D)</enum><header display-inline="yes-display-inline">Limitation on judicial review</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, no court shall have jurisdiction over—</text>
<clause commented="no" display-inline="no-display-inline" id="H00DE43194A274D568117A1459B0AB0C1"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD3FB9ED6842C476FB08C05F809E4B03B"><enum>(ii)</enum><text display-inline="yes-display-inline">any claim relating to any act or omission
of such covered financial company or the Corporation as receiver.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE80D4CE63954703A1D3579A74183138"><enum>(E)</enum><header display-inline="yes-display-inline">Disposition of assets</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD1A99248A7734F1AB5548CADBE825284"><enum>(i)</enum><text display-inline="yes-display-inline">maximizes the net present value return from
the sale or disposition of such assets;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H45479B2B952D4209A2E811B25ECA482A"><enum>(ii)</enum><text display-inline="yes-display-inline">minimizes the amount of any loss realized
in the resolution of cases;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB39BF18D34C1422EBACB79197E400EF2"><enum>(iii)</enum><text display-inline="yes-display-inline">minimizes the cost to the general fund of
the Treasury;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2E2B33068A174BFBA9CE7D3D9E7E0921"><enum>(iv)</enum><text display-inline="yes-display-inline">mitigates the potential for serious adverse
effects to the financial system and the United States economy;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5C9958C183FE449A813DF23212DC475D"><enum>(v)</enum><text display-inline="yes-display-inline">ensures timely and adequate competition and
fair and consistent treatment of offerors; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H525DEBD2BFEB439EA03CC933A485E108"><enum>(vi)</enum><text display-inline="yes-display-inline">prohibits discrimination on the basis of
race, sex, or ethnic groups in the solicitation and consideration of
offers.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11EFA99E08704034BE95367AB8D6F2DC"><enum>(11)</enum><header display-inline="yes-display-inline">Statute of limitations for actions brought
by receiver</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA73E4522C2A546D6AF584A9232066F5A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2875F3A89B024F58A2C243ADFEDB0ED0"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of any contract claim, the
longer of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2FEF251BAD344BF8BE3FE57018EBBB13"><enum>(I)</enum><text display-inline="yes-display-inline">the 6-year period beginning on the date the
claim accrues; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE9826597F61844218FD30832F7962B3B"><enum>(II)</enum><text display-inline="yes-display-inline">the period applicable under State law;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HFC13ABFCBC9A47D498A043614DAFBABD"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any tort claim, the longer
of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H755D0641A4734693A3E59B4592A164DF"><enum>(I)</enum><text display-inline="yes-display-inline">the 3-year period beginning on the date the
claim accrues; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE6BFC66B20C74A358F15B1C13DD3968D"><enum>(II)</enum><text display-inline="yes-display-inline">the period applicable under State
law.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H21E41A8018CA416B80FED192D96FB9CF"><enum>(B)</enum><header display-inline="yes-display-inline">Determination of the date on which a claim
accrues</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB18C148026614A39A6B241FCD9FBEE0B"><enum>(i)</enum><text display-inline="yes-display-inline">the date of the appointment of the
Corporation as receiver under this title; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCA2F00E34ECB4DF0AD9A7957D70AC1BF"><enum>(ii)</enum><text display-inline="yes-display-inline">the date on which the cause of action
accrues.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4CB36FD3A7DF46CCA8DABEE51399589B"><enum>(C)</enum><header display-inline="yes-display-inline">Revival of expired state causes of
action</header>
<clause commented="no" display-inline="no-display-inline" id="H403AEEFDF2CB4A73A8B9BAC2238A7734"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A27969400F2417E8D777A69096E4E82"><enum>(ii)</enum><header display-inline="yes-display-inline">Claims described</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFD4905AF16C4DDD99F0F1E5103FB473"><enum>(12)</enum><header display-inline="yes-display-inline">Fraudulent transfers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9AFF44F36D2141EC9A5ED41E48BAAAAC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0FD95C306C5D482EAB1EFC48A0E247E2"><enum>(B)</enum><header display-inline="yes-display-inline">Preferential transfers</header><text display-inline="yes-display-inline">The Corporation as receiver for any covered
financial company may avoid a transfer of an interest of the covered financial
company in property that—</text>
<clause commented="no" display-inline="no-display-inline" id="H3531DF6FE7B742AF97DED009245F63B1"><enum>(i)</enum><text display-inline="yes-display-inline">was made to or for the benefit of a
creditor;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H226AC013A7DC427B993421F850247FB6"><enum>(ii)</enum><text display-inline="yes-display-inline">was made for or on account of an antecedent
debt that was owed by the covered financial company before the transfer was
made;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H29C46315EC7D4DE3A5CAD098E18C404D"><enum>(iii)</enum><text display-inline="yes-display-inline">was made while the covered financial
company was insolvent;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HECF89878981B47799AF0E3B215BC4CCA"><enum>(iv)</enum><text display-inline="yes-display-inline">was made—</text>
<subclause commented="no" display-inline="no-display-inline" id="H8F75B3DB9FC441D2B610D9F996E1328F"><enum>(I)</enum><text display-inline="yes-display-inline">on or within 90 days before the date on
which the Corporation was appointed receiver; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H57C9912718D842D881DBCB055C3D0D46"><enum>(II)</enum><text display-inline="yes-display-inline">between 90 days and one year before the
date that the Corporation was appointed receiver, if such creditor at the time
of the transfer was an insider, as that term is defined in section 101(31) of
title 11, United States Code; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2AFCC1D5D4294289A628353C8E46395D"><enum>(v)</enum><text display-inline="yes-display-inline">enables such creditor to receive more than
such creditor would receive in the liquidation of the covered financial company
if—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD34FA6D0E0364823B273DB5336032366"><enum>(I)</enum><text display-inline="yes-display-inline">the transfer had not been made; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE4BA63C7FD8F4DF7A6615F9763385EE4"><enum>(II)</enum><text display-inline="yes-display-inline">such creditor received payment of such debt
to the extent provided by the provisions of this subtitle.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2D631AFCAC954B8FA9FCAC10ED8C244C"><enum>(C)</enum><header display-inline="yes-display-inline">Post-receivership
transactions</header><text display-inline="yes-display-inline">The Corporation
as receiver for any covered financial company may avoid a transfer of property
of the receivership that occurred after the Corporation was appointed receiver
that was not authorized under this title.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1C25FA6E14ED4F3D885192FD0D25E03D"><enum>(D)</enum><header display-inline="yes-display-inline">Right of recovery</header><text display-inline="yes-display-inline">To the extent that a transfer is avoided
under subparagraph (A), (B) or (C), the Corporation may recover, for the
benefit of the covered financial company, the property transferred or, if a
court so orders, the value of such property from—</text>
<clause commented="no" display-inline="no-display-inline" id="HD3B57B00BAFC4744ABD4D3CCC1B52642"><enum>(i)</enum><text display-inline="yes-display-inline">the initial transferee of such transfer or
the entity for whose benefit such transfer was made; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HACFF48CD5FFC46A7A59AAF77F72199F6"><enum>(ii)</enum><text display-inline="yes-display-inline">any immediate or mediate transferee of any
such initial transferee.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF1C1487BB628470C8243CB6884AABF77"><enum>(E)</enum><header display-inline="yes-display-inline">Rights of transferee or
obligee</header><text display-inline="yes-display-inline">The Corporation may
not recover under subparagraph (D)(ii)—</text>
<clause commented="no" display-inline="no-display-inline" id="H42D703A4B8FA42C3861E737D7E0B1D19"><enum>(i)</enum><text display-inline="yes-display-inline">from a transferee that takes for value,
including satisfaction or securing of a present or antecedent debt, in good
faith, and without knowledge of the violability of the transfer avoided;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7A3E497A52F845AB8EDB416B65BC9CCC"><enum>(ii)</enum><text display-inline="yes-display-inline">any immediate or mediate good faith
transferee of such transferee.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H400E8DB7D178483B9D8FE0378A2756B4"><enum>(F)</enum><header display-inline="yes-display-inline">Defenses</header><text display-inline="yes-display-inline">A transferee or obligee from whom the
Corporation seeks to recover a transfer or avoid an obligation under
subparagraph (A), (B) or (C) shall have the same affirmative defenses and
rights to liens on the property transferred to the extent they would be
available to a transferee or obligee from whom a trustee under title 11 seeks
to recover a transfer under sections 547, 548, and 549 of title 11, United
States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD6E951C69E749089DF86D6740DB25D5"><enum>(G)</enum><header display-inline="yes-display-inline">Limitations on Avoiding
Powers</header><text display-inline="yes-display-inline">The rights of the
Corporation under subparagraph (A), (B) or (C) are restricted to the same
extent as the rights of a trustee in bankruptcy under section 546(b)(1) of the
Bankruptcy Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H285BA8B31D7948258BD4C33BD75D126F"><enum>(H)</enum><header display-inline="yes-display-inline">Presumption of insolvency</header><text display-inline="yes-display-inline">For purposes of subparagraph (B), the
covered financial company is presumed to have been insolvent on and during the
90 days immediately preceding the date on which the Corporation is appointed as
receiver.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD186BEBD84F240FC90711CEA66745DE8"><enum>(I)</enum><header display-inline="yes-display-inline">Rights under this subsection</header><text display-inline="yes-display-inline">The rights of the Corporation as receiver
for 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 of a Federal Home Loan Bank) under title 11, United States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF5639EA7022D4FFD91A1646FB6AEB9CE"><enum>(J)</enum><header display-inline="yes-display-inline">Right of recovery</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBD2A4D016AD44BFF8A89BAF9E5482CE5"><enum>(i)</enum><text display-inline="yes-display-inline">the initial transferee of such transfer or
the institution-affiliated party or person for whose benefit such transfer was
made; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6FDAC6BF3481443FA07CCF2B4A954556"><enum>(ii)</enum><text display-inline="yes-display-inline">any immediate or mediate transferee of any
such initial transferee.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E0C2B88FA1349F39CCA903B10EB2395"><enum>(K)</enum><header display-inline="yes-display-inline">Rights of transferee or
obligee</header><text display-inline="yes-display-inline">The Corporation may
not recover under subparagraph (B)—</text>
<clause commented="no" display-inline="no-display-inline" id="H4F81E9829A3448639B07A08FE897C412"><enum>(i)</enum><text display-inline="yes-display-inline">any transfer that takes for value,
including satisfaction or securing of a present or antecedent debt, in good
faith; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H756D1DF5F98447A181769F31035FEDA7"><enum>(ii)</enum><text display-inline="yes-display-inline">any immediate or mediate good faith
transferee of such transferee.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H190215D2D7754C84B257507326CFB801"><enum>(L)</enum><header display-inline="yes-display-inline">Rights under this subsection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA0F816C1BD654A5EA89E1B45F56A0E75"><enum>(M)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>institution affiliated party</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="HBFE3252AA1254366ACBE7DC051B21A0E"><enum>(i)</enum><text display-inline="yes-display-inline">any director, officer, employee, or
controlling stockholder of, or agent for, a covered financial company;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC61E028ACCAA439AAA8F0B411239A26C"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6EEADA6CC85C47CAB732EA7C2E491929"><enum>(iii)</enum><text display-inline="yes-display-inline">any independent contractor (including any
attorney, appraiser, or accountant) who knowingly or recklessly participates
in—</text>
<subclause commented="no" display-inline="no-display-inline" id="H41A74FE477134DF5AFACB9A955982781"><enum>(I)</enum><text display-inline="yes-display-inline">any violation of any law or
regulation;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H95970528D8104BAFAA27BF3355C706BA"><enum>(II)</enum><text display-inline="yes-display-inline">any breach of fiduciary duty; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H57228D8DF153427ABEB17B350F17771F"><enum>(III)</enum><text display-inline="yes-display-inline">any unsafe or unsound practice,</text>
</subclause><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="H9F45AE9E096E46F48FF7036D34231C7A"><enum>(13)</enum><header display-inline="yes-display-inline">Attachment of assets and other injunctive
relief</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE5B1524D9DD416B9E0E182CC4E798EA"><enum>(14)</enum><header display-inline="yes-display-inline">Standards</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3AD8A65FC2CB489883E93E29E70B9D55"><enum>(A)</enum><header display-inline="yes-display-inline">Showing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCC1936D039EA4CC69F6A229898EDE3B8"><enum>(B)</enum><header display-inline="yes-display-inline">State proceeding</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0FB1AAFCBDDE45EC81DBBDA59E0CC0AA"><enum>(15)</enum><header display-inline="yes-display-inline">Treatment of claims arising from breach of
contracts executed by the corporation as receiver</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5093CC3D0DA45598A73205BFC288187"><enum>(16)</enum><header display-inline="yes-display-inline">Accounting and recordkeeping
requirements</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB6190B9BDC546BA9B359AD60CCFF966"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB76AB3EED52542C187442E8BBFD79976"><enum>(B)</enum><header display-inline="yes-display-inline">Annual accounting or report</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H403C607228EB4692A03693A4D2610C72"><enum>(C)</enum><header display-inline="yes-display-inline">Availability of reports</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8CD582C3172C4C1890E9E353AFB7CDE5"><enum>(D)</enum><header display-inline="yes-display-inline">Recordkeeping requirement</header>
<clause commented="no" display-inline="no-display-inline" id="H6A5ED3D6075C47FEA5A1DA03E32A63EA"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC00EBCE5C9FB454287F1B8A9ED194211"><enum>(ii)</enum><header display-inline="yes-display-inline">Old records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE347C8B4865C480F9D2295536369A2E1"><enum>(b)</enum><header display-inline="yes-display-inline">Priority of expenses and unsecured
claims</header>
<paragraph commented="no" display-inline="no-display-inline" id="H301AE9EFEED14F66B3BF5AC58A42014E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6ED900BA84F04B17948B60B2DD89C984"><enum>(A)</enum><text display-inline="yes-display-inline">Administrative expenses of the
receiver.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0474E697ECC24250BAC21CACD06A211F"><enum>(B)</enum><text display-inline="yes-display-inline">Any amounts owed to the United States,
unless the United States agrees or consents otherwise.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H47F91F99BFB043249A28142D98C8922E"><enum>(C)</enum><text display-inline="yes-display-inline">Wages, salaries, or commissions, including
vacation, severance, and sick leave pay earned by an individual (other than
management responsible for the failed condition of the covered financial
company who have been removed), subject to the limitations for such payments
contained in title 11, United States Code, including the amount (11 U.S.C.
507(a)(4)) and restrictions on severance payments to insiders (11 U.S.C.
503(c)).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE59BE61478AA471299C9DDA42E8FC05B"><enum>(D)</enum><text display-inline="yes-display-inline">Contributions to employee benefit plans,
subject to the limitations in title 11, United States Code (11 U.S.C.
507(a)(5)).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H30B107025B664792BF87E1F2152F45C6"><enum>(E)</enum><text display-inline="yes-display-inline">Any other general or senior liability of
the covered financial company (which is not a liability described under
subparagraph (F) or (G)).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFC4F151E98294F9983D2F123C4B6C957"><enum>(F)</enum><text display-inline="yes-display-inline">Any obligation subordinated to general
creditors (which is not an obligation described under subparagraph (G)).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8DA3A8178B97431FBEF5EB3A943570D7"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA804420335B945FCAF6BC4A25E2208E6"><enum>(2)</enum><header display-inline="yes-display-inline">Post-receivership financing
priority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71FBFFB5A0E445D1BBCF50349740EEA2"><enum>(3)</enum><header display-inline="yes-display-inline">Claims of the United States</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7119CA1D2D38494395251AF72ED3F543"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5278C443C9684B33B4B5E17D1043738C"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H754500EFC2C54652916495871A974AC3"><enum>(B)</enum><text display-inline="yes-display-inline">all claimants that are similarly situated
under paragraph (1) receive not less than the amount provided in subsection
(d)(2).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86475808E83649CFB56586C620297DAA"><enum>(5)</enum><header display-inline="yes-display-inline">Secured claims unaffected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB58913447980480F93598674AAA36120"><enum>(6)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this subsection, the term
<term>administrative expenses of the receiver</term> includes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7D8AFD31A7864E5890E9AB5749C3DDC9"><enum>(A)</enum><text display-inline="yes-display-inline">the actual, necessary costs and expenses
incurred by the receiver in preserving the assets of a covered financial
company or liquidating or otherwise dissolving the affairs of a covered
financial company for which the Corporation has been appointed as receiver;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC35C52C9E41A4196B6A76D4515790397"><enum>(B)</enum><text display-inline="yes-display-inline">any obligations that the receiver
determines are necessary and appropriate to facilitate the smooth and orderly
liquidation or other dissolution of the covered financial company.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE6869D98098D41E6B87EB541417195FE"><enum>(7)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">The Corporation shall, after following the
notice and comment rulemaking requirements under the Administrative Procedure
Act, prescribe rules to carry out this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCDEBEDB6AE6A40C2A75C63AAE4882EFC"><enum>(c)</enum><header display-inline="yes-display-inline">Provisions relating to contracts entered
into before appointment of receiver</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB404315CE9DC4B7ABBDFFC52D907AE32"><enum>(1)</enum><header display-inline="yes-display-inline">Authority to repudiate
contracts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF8744C6B0D0F4D2EBFED25FEAC1FD6B4"><enum>(A)</enum><text display-inline="yes-display-inline">to which the covered financial company is a
party;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB057325A7DF640878D5B4466034D12AB"><enum>(B)</enum><text display-inline="yes-display-inline">the performance of which the receiver, in
the receiver’s discretion, determines to be burdensome; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H208B80997F614151BDA84734EC7C6FA0"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCFCEB89BCB15487392502D881F3EAD3D"><enum>(2)</enum><header display-inline="yes-display-inline">Timing of repudiation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0DF7B4C59DC4DB4A5A9E7ADD1E5730E"><enum>(3)</enum><header display-inline="yes-display-inline">Claims for damages for repudiation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFBCA4E5097604B09A8679308ED3B485E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF73BC79E38F422FBD6784E950266999"><enum>(i)</enum><text display-inline="yes-display-inline">limited to actual direct compensatory
damages; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB4ADFC4F8F744D23B1B633BEC77C0BC8"><enum>(ii)</enum><text display-inline="yes-display-inline">determined as of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H008D25DA3CFF4EE0B683705E44AAFBBF"><enum>(I)</enum><text display-inline="yes-display-inline">the date of the appointment of the
receiver; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H77D72E308DAB49308AC46640AB8495C5"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA707D6D3CF54233BB8DD4A16D9122A8"><enum>(B)</enum><header display-inline="yes-display-inline">No liability for other
damages</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the term <term>actual direct compensatory damages</term> does
not include—</text>
<clause commented="no" display-inline="no-display-inline" id="H5CD6D80A6C4C43BE99A2FC8267755347"><enum>(i)</enum><text display-inline="yes-display-inline">punitive or exemplary damages;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD87D1C1DAF994231B6CF95DAC321D6DA"><enum>(ii)</enum><text display-inline="yes-display-inline">damages for lost profits or opportunity;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H85CDF2FE5AB04A61939E6128C694B6C3"><enum>(iii)</enum><text display-inline="yes-display-inline">damages for pain and suffering.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H60CFDE81858748FDBB58E9398A50F54C"><enum>(C)</enum><header display-inline="yes-display-inline">Measure of damages for repudiation of
qualified financial contracts</header><text display-inline="yes-display-inline">In the case of any qualified financial
contract or agreement to which paragraph (8) applies, compensatory damages
shall be—</text>
<clause commented="no" display-inline="no-display-inline" id="H4B0F056ECB794B6AB01B264977529B5B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC30C8BEC112B40A1A50CEE8FCB768871"><enum>(ii)</enum><text display-inline="yes-display-inline">paid in accordance with this subsection and
subsection (d) except as otherwise specifically provided in this
subsection.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB4729008601450A8ECD4F6FA9B6234A"><enum>(4)</enum><header display-inline="yes-display-inline">Leases under which the covered financial
company is the lessee</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA59C58C16E7435EAF2FDC4B5300D020"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC3D483C6FCA34D6CAF0D3031F1904AB4"><enum>(B)</enum><header display-inline="yes-display-inline">Payments of rent</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), the
lessor under a lease to which such subparagraph applies shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HA83143BB35CD4B7198E8C39EBF08E075"><enum>(i)</enum><text display-inline="yes-display-inline">be entitled to the contractual rent
accruing before the later of the date—</text>
<subclause commented="no" display-inline="no-display-inline" id="HBDAF407EEBA0424798725F78FF0994BC"><enum>(I)</enum><text display-inline="yes-display-inline">the notice of disaffirmance or repudiation
is mailed; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H11861EC3052F4011B1DD9C25EFE2FB7A"><enum>(II)</enum><text display-inline="yes-display-inline">the disaffirmance or repudiation becomes
effective, unless the lessor is in default or breach of the terms of the
lease;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H9BA61BF69A4D43A7A496C6D07633034C"><enum>(ii)</enum><text display-inline="yes-display-inline">have no claim for damages under any
acceleration clause or other penalty provision in the lease; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF665D2A66B6C4D00B2A54754DC29FA43"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCEC167511EDF4F3BBA1A7F8F8BDE5BFF"><enum>(5)</enum><header display-inline="yes-display-inline">Leases under which the covered financial
company is the lessor</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2D5044743FF043A6B1893D25B2C9C7A2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0462F12DCE2B463E84FD01960A406CF3"><enum>(i)</enum><text display-inline="yes-display-inline">treat the lease as terminated by such
repudiation; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBEC0B5C025F04BC19F32C9B369BFB1EA"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4AC14C1D733F47A9BDACAABF6B18B815"><enum>(B)</enum><header display-inline="yes-display-inline">Provisions applicable to lessee remaining
in possession</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3CE5D63C0C78416E84D9505A9B3C8200"><enum>(i)</enum><text display-inline="yes-display-inline">the lessee—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD1D0CF992A0A443083947D0D90CC28EE"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8CDA259564B14A279E90FB1FEA4599E6"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC22176D2CCDB47E78481EF7F5AC9F9E5"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71A7D145F43646E0849143F19115507D"><enum>(6)</enum><header display-inline="yes-display-inline">Contracts for the sale of real
property</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4893C02E57694673B0EC7C818B7146DA"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8306476EF51B475C8D22552649042F3D"><enum>(i)</enum><text display-inline="yes-display-inline">treat the contract as terminated by such
repudiation; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H985ECB8DBB454B378517D0CCD6A071F5"><enum>(ii)</enum><text display-inline="yes-display-inline">remain in possession of such real
property.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H801C53BD0ED04209951D0FC1B038237B"><enum>(B)</enum><header display-inline="yes-display-inline">Provisions applicable to purchaser
remaining in possession</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H572AE7C2F1614E1B91009C91A55A021C"><enum>(i)</enum><text display-inline="yes-display-inline">the purchaser—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1FF71E0157184E418D69F9ADACE42DB6"><enum>(I)</enum><text display-inline="yes-display-inline">shall continue to make all payments due
under the contract after the date of the repudiation of the contract;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H049CF5FF12954EF6B87CFF314C303E73"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD065CC8F1EED4292A644567A03A1E2B5"><enum>(ii)</enum><text display-inline="yes-display-inline">the receiver shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="H692BB50205A5446DB486655710427088"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C12F334093947DFB38C5E2A808375B6"><enum>(II)</enum><text display-inline="yes-display-inline">deliver title to the purchaser in
accordance with the provisions of the contract; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB5F572BB5AF44616A282604F02815F8D"><enum>(III)</enum><text display-inline="yes-display-inline">have no obligation under the contract other
than the performance required under subclause (II).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD692D06829F47C7B32B2A8DBADE74B9"><enum>(C)</enum><header display-inline="yes-display-inline">Assignment and sale allowed</header>
<clause commented="no" display-inline="no-display-inline" id="H1ACA0B0C851F4ED9A3BFD814A687DB3A"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAD54716833874039BC04875C415A6901"><enum>(ii)</enum><header display-inline="yes-display-inline">No liability after assignment and
sale</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFED77D1A1A741EE92DE5C22A0923DEB"><enum>(7)</enum><header display-inline="yes-display-inline">Provisions applicable to service
contracts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H95B07EC3BF2F42F4B5E5ECEF4BC79287"><enum>(A)</enum><header display-inline="yes-display-inline">Services performed before
appointment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF551B1FEFE774742B43E269E5F8E8711"><enum>(i)</enum><text display-inline="yes-display-inline">a claim to be paid in accordance with
subsections (a), (b), and (d); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB99F75695278484E85C8AAF2BDE9AFAB"><enum>(ii)</enum><text display-inline="yes-display-inline">deemed to have arisen as of the date the
receiver was appointed.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7D2E94C0FBC4790A717FA37C2FE5E01"><enum>(B)</enum><header display-inline="yes-display-inline">Services performed after appointment and
prior to repudiation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26712C1188F44418B34F9874DAA4CEEF"><enum>(i)</enum><text display-inline="yes-display-inline">the other party shall be paid under the
terms of the contract for the services performed; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF37F03C707BB4E54A05EF325A83D94F8"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of such payment shall be treated
as an administrative expense of the receivership.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0E611954978486EA146C578A92835D9"><enum>(C)</enum><header display-inline="yes-display-inline">Acceptance of performance no bar to
subsequent repudiation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF8A1C69B65E4CFE9E38BA3F35D0B95E"><enum>(8)</enum><header display-inline="yes-display-inline">Certain qualified financial
contracts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H5196839DEE244070B3BB868BA9F85CF5"><enum>(A)</enum><header display-inline="yes-display-inline">Rights of parties to
contracts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1CAFE88ED7A6469692CC83938C0D32D8"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2AB61EBCE084E35BB245DCB167BD520"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8B9D0635AD9D4AD89D90D283FCAE2676"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD4E42011165545478BB8884F8F0FDB89"><enum>(B)</enum><header display-inline="yes-display-inline">Applicability of other
provisions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA0FD9141B6874C1F81F3E70282BFF786"><enum>(C)</enum><header display-inline="yes-display-inline">Certain transfers not avoidable</header>
<clause commented="no" display-inline="no-display-inline" id="H726875EA47064136A85B430020A74CF6"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FF73D127C3141BE9BA64C578F535C41"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception for certain
transfers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF62F6BCA6B2046428E35378393173DD7"><enum>(D)</enum><header display-inline="yes-display-inline">Certain contacts and agreements
defined</header><text display-inline="yes-display-inline">For purposes of this
subsection, the following definitions shall apply:</text>
<clause commented="no" display-inline="no-display-inline" id="HC68D7F6231DC472687C9238F4B87EAC7"><enum>(i)</enum><header display-inline="yes-display-inline">Qualified financial contract</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H48D3F496133C4DEFAAE53123D103A0D9"><enum>(ii)</enum><header display-inline="yes-display-inline">Securities contract</header><text display-inline="yes-display-inline">The term <term>securities
contract</term>—</text>
<subclause commented="no" display-inline="no-display-inline" id="HFBD09185B6AB422789D03351A1BBED27"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE856F717C5DC452BB70CA20AA911F1E4"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1E4E8366BDF44BF485806ACCC995C6F7"><enum>(III)</enum><text display-inline="yes-display-inline">means any option entered into on a national
securities exchange relating to foreign currencies;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA347C1B8D26F498D83D501E8C2B31FCE"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9FA3C56535734620AFC1A2545F57B8D1"><enum>(V)</enum><text display-inline="yes-display-inline">means any margin loan;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA90B71E6B70A40A5827B90DE20515D8F"><enum>(VI)</enum><text display-inline="yes-display-inline">means any extension of credit for the
clearance or settlement of securities transactions;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD6B40AAE06B846E2916001B3D3E7ED21"><enum>(VII)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE18DE3D4E39F4C7A9D5E630D90C7FC1F"><enum>(VIII)</enum><text display-inline="yes-display-inline">means any other agreement or transaction
that is similar to any agreement or transaction referred to in this
clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9159B682608949B0BCB04AFE4B00491A"><enum>(IX)</enum><text display-inline="yes-display-inline">means any combination of the agreements or
transactions referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H7468CD56D7F24631A688D605F36081B2"><enum>(X)</enum><text display-inline="yes-display-inline">means any option to enter into any
agreement or transaction referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBF305E7BE67C4F48A376E80E48FFBDB3"><enum>(XI)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H280CCFF043D74F55801246EE722F7F02"><enum>(XII)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC361C17C575944058233D1D03C9D6C14"><enum>(iii)</enum><header display-inline="yes-display-inline">Commodity contract</header><text display-inline="yes-display-inline">The term <term>commodity contract</term>
means—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2A5DF0B9BE9649BF8E73784CCECE51F9"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H499A01AF2CDD4B2295A235386A7B61BA"><enum>(II)</enum><text display-inline="yes-display-inline">with respect to a foreign futures
commission merchant, a foreign future;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4BB1E2C1F317444D80F2457492EBD49D"><enum>(III)</enum><text display-inline="yes-display-inline">with respect to a leverage transaction
merchant, a leverage transaction;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H35BCA12EDDF14C0C8E80B6CD46119C43"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4B9C4875F8F24D708A6DAC369A9212AE"><enum>(V)</enum><text display-inline="yes-display-inline">with respect to a commodity options dealer,
a commodity option;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9050E67761B34B749310E5FB1F177F6B"><enum>(VI)</enum><text display-inline="yes-display-inline">any other agreement or transaction that is
similar to any agreement or transaction referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8C1052F744AE4101BA34365786B5C803"><enum>(VII)</enum><text display-inline="yes-display-inline">any combination of the agreements or
transactions referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB2209B8EB5A84BB4B4473B6D5A9C12E3"><enum>(VIII)</enum><text display-inline="yes-display-inline">any option to enter into any agreement or
transaction referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC8D114E0AC1C49BFBCDCE3544B80E06D"><enum>(IX)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD9164E045BA849D9A9A050DBCF7766B6"><enum>(X)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17815A748B33412E990CBE62DF02BD0E"><enum>(iv)</enum><header display-inline="yes-display-inline">Forward contract</header><text display-inline="yes-display-inline">The term <term>forward contract</term>
means—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA8703F54E7F74E1092DD8BC2B493B404"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50E12962ACA647379C41047C3D7E985D"><enum>(II)</enum><text display-inline="yes-display-inline">any combination of agreements or
transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0747EEC77A54482DA4079AB5BFBB4275"><enum>(III)</enum><text display-inline="yes-display-inline">any option to enter into any agreement or
transaction referred to in subclause (I) or (II);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE042B622B44246868A171EB637CA9272"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC1168D55DF1B434C99BB990C53D16AA8"><enum>(V)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H96A2E1F56FF547FAA9E0845FCEA60ACD"><enum>(v)</enum><header display-inline="yes-display-inline">Repurchase agreement</header><text display-inline="yes-display-inline">The term <term>repurchase agreement</term>
(which definition also applies to a reverse repurchase agreement)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HF44C295B37584117BFD554847DF7C93A"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBDB14C937A6D4CA3BD9883CD09209F58"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H718887277BF64392826E84A9FFE87518"><enum>(III)</enum><text display-inline="yes-display-inline">means any combination of agreements or
transactions referred to in subclauses (I) and (IV);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1444F4CFFFF34375836069AE70EE4D78"><enum>(IV)</enum><text display-inline="yes-display-inline">means any option to enter into any
agreement or transaction referred to in subclause (I) or (III);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC5B26EF252EF4410926B4A7AB57D22B1"><enum>(V)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6B7DA5ECEF41496A8271DED229B76CB4"><enum>(VI)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB577E1E3C4C94DDC8667DDEE3CA279F8"><enum>(vi)</enum><header display-inline="yes-display-inline">Swap
agreement</header><text display-inline="yes-display-inline">The term <term>swap
agreement</term> means—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD9ADCA9713844BBFB2BD87CF09EDC15A"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9FDBC1B563A491687767581A7A00B20"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H159A21B7948340D2BBE3FF3076C9D2B0"><enum>(III)</enum><text display-inline="yes-display-inline">any combination of agreements or
transactions referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD0BCE6C54A6D4B9EBE460D7ED973C6D8"><enum>(IV)</enum><text display-inline="yes-display-inline">any option to enter into any agreement or
transaction referred to in this clause;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8658E73E7BE646F8BA4557323F25FD0B"><enum>(V)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD8F4FDE02182408C823D850BC35302AF"><enum>(VI)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A16D7044BCD4BD0ABE44CFCC88EB82B"><enum>(vii)</enum><header display-inline="yes-display-inline">Definitions relating to
default</header><text display-inline="yes-display-inline">When used in this
paragraph and paragraph (10)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H5D9020E861604781AB2CA4D11482FFB6"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9EB86EC85794CEFB5B0A2B335DE3C4B"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB4739178DC1140619DD8D8610B8AD2B6"><enum>(aa)</enum><text display-inline="yes-display-inline">in the opinion of the Corporation or such
authority—</text>
<subitem commented="no" display-inline="no-display-inline" id="H35A5CDCE761F40E1979F0500AD1F38F8"><enum>(AA)</enum><text display-inline="yes-display-inline">the covered financial company is not likely
to be able to pay its obligations in the normal course of business; and</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H4C6232C3C2884898810620F5CD30D342"><enum>(BB)</enum><text display-inline="yes-display-inline">there is no reasonable prospect that the
covered financial company will be able to pay such obligations without Federal
assistance; or</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H66CA8D480297483D813624A34A62864F"><enum>(CC)</enum><text display-inline="yes-display-inline">in the opinion of the Corporation or such
authority—</text>
</subitem></item><item commented="no" display-inline="no-display-inline" id="H33E1102703CC49DFBEB8077FD48A4575"><enum>(bb)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE151B6755DF34B79AAACDC3C0F97E58D"><enum>(cc)</enum><text display-inline="yes-display-inline">there is no reasonable prospect that the
capital will be replenished without Federal assistance.</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="HBBF6E37F072446C5B2986D03C2A51BC0"><enum>(viii)</enum><header display-inline="yes-display-inline">Treatment of master agreement as one
agreement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F9F8C4B08B8457CADC82D21A57260F4"><enum>(ix)</enum><header display-inline="yes-display-inline">Transfer</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8F2C0806DBBA463C99E6B17530A53988"><enum>(x)</enum><header display-inline="yes-display-inline">Person</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC4FDEF5412C642489D477CFF250C18E6"><enum>(E)</enum><header display-inline="yes-display-inline">Clarification</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD036F451E8EA4705869AB7FBDBF6334F"><enum>(F)</enum><header display-inline="yes-display-inline">Walkaway clauses not effective</header>
<clause commented="no" display-inline="no-display-inline" id="H305366778FAD4588A07D16462BC0629D"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H668082EC07D541489BA63E1507536AB4"><enum>(ii)</enum><header display-inline="yes-display-inline">Limited suspension of certain
obligations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBEF0DF1515F6476B82C031746E458623"><enum>(I)</enum><text display-inline="yes-display-inline">the time such party receives notice that
such contract has been transferred pursuant to paragraph (10)(A); or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1E70DFC6CE594E4AB6238C11E174B7E5"><enum>(II)</enum><text display-inline="yes-display-inline">5:00 p.m. (eastern time) on the business
day following the date of the appointment of the receiver.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HEEF592CCF0274561AA3838C07AE0CA96"><enum>(iii)</enum><header display-inline="yes-display-inline">Walkaway clause defined</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7B2BCC58D8E48C595A5B84A1D19F8B9"><enum>(G)</enum><header display-inline="yes-display-inline">Recordkeeping</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6849846B9A224560A24756420ADEA448"><enum>(9)</enum><header display-inline="yes-display-inline">Transfer of qualified financial
contracts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F42BA1DB203491584640E3DCF9C5E8E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39707640A43C49BB9E5DBA1C71E79E92"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H349E342BB81940F495700D237BD677AE"><enum>(I)</enum><text display-inline="yes-display-inline">all qualified financial contracts between
any person or any affiliate of such person and the covered financial company in
default;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H2EBDE935E4A940C4A42BF5BA82381FA2"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB484F661B03A451D934CC5CD65E55E1A"><enum>(III)</enum><text display-inline="yes-display-inline">all claims of such covered financial
company against such person or any affiliate of such person under any such
contract; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HFE1753AC8F3B42E8A9FD2BA94F786737"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB53AEA5FC3AE49DABD9E461CE56CDADE"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF3856583332E43EA9551310BCE128E23"><enum>(B)</enum><header display-inline="yes-display-inline">Transfer to foreign bank, financial
institution, or branch or agency thereof</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF752C997E56B42B5AC3A0AE67D39DA64"><enum>(C)</enum><header display-inline="yes-display-inline">Transfer of contracts subject to the rules
of a clearing organization</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1B7A293EEB5342FA92F9F3AB869B6DAC"><enum>(D)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3B5F492A240D474793CDF4755311CC1A"><enum>(10)</enum><header display-inline="yes-display-inline">Notification of transfer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB0933A5576604457AF6BBBFBD8CD06F8"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If—</text>
<clause commented="no" display-inline="no-display-inline" id="H9DDAED4F284A409A8B086AFED23E7A63"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8200180DDA1B43A78039F7BEF93D33A0"><enum>(ii)</enum><text display-inline="yes-display-inline">the transfer includes any qualified
financial contract,</text>
</clause><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="H74E3BFE090F941B68217430A12FACD1B"><enum>(B)</enum><header display-inline="yes-display-inline">Certain rights not enforceable</header>
<clause commented="no" display-inline="no-display-inline" id="H0DCF39F7D70B484B91CBAD6EF57E4DDA"><enum>(i)</enum><header display-inline="yes-display-inline">Receivership</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDBD8A58E9A6F419E881E5B08C1EB2C3F"><enum>(I)</enum><text display-inline="yes-display-inline">until 5:00 p.m. (eastern time) on the
business day following the date of the appointment of the receiver; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H148E82584C554CCA9B6CE65D2CB1878C"><enum>(II)</enum><text display-inline="yes-display-inline">after the person has received notice that
the contract has been transferred pursuant to paragraph (9)(A).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE124F6EFEBD8495D82935DE882464353"><enum>(ii)</enum><header display-inline="yes-display-inline">Notice</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE219F008DDF34050905B274770859B9C"><enum>(C)</enum><header display-inline="yes-display-inline">Treatment of bridge financial
company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81476D366F174418835058ECC6854FFF"><enum>(D)</enum><header display-inline="yes-display-inline">Business day defined</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2F7B55B47084D218AAD27856FDFD1EC"><enum>(11)</enum><header display-inline="yes-display-inline">Disaffirmance or repudiation of qualified
financial contracts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4BF8E97083CE42D2908EF8B567C39C6E"><enum>(A)</enum><text display-inline="yes-display-inline">disaffirm or repudiate all qualified
financial contracts between—</text>
<clause commented="no" display-inline="no-display-inline" id="H9EB2DB0FA5404927A199EEBB8FEB1DC6"><enum>(i)</enum><text display-inline="yes-display-inline">any person or any affiliate of such person;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7A836DDA4347475C91212CA5F6E69854"><enum>(ii)</enum><text display-inline="yes-display-inline">the covered financial company in default;
or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE968557E9D5C4495A98138B117D6463E"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC011C4D235E748208F7861DE806E5554"><enum>(12)</enum><header display-inline="yes-display-inline">Certain security and customer interests not
avoidable</header><text display-inline="yes-display-inline">No provision of
this subsection shall be construed as permitting the avoidance of any—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9D9EAF4AE58B46049B86B21CF3F97ED4"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H06AB0141446C4686823AA55C96A68446"><enum>(B)</enum><text display-inline="yes-display-inline">legally enforceable interest in customer
property.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3311230D49D41289BC84E137203A09E"><enum>(13)</enum><header display-inline="yes-display-inline">Authority to enforce contracts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H93AF1D7C52A14B2CAEEF39C81E6E5D60"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CC251226E04485CBA033C3989181E3D"><enum>(B)</enum><header display-inline="yes-display-inline">Certain rights not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26D656F1319A4331A0D741B3423E4297"><enum>(C)</enum><header display-inline="yes-display-inline">Consent requirement</header>
<clause commented="no" display-inline="no-display-inline" id="HAB2D04812793418C984F1A4E64A85B73"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9918FEEA153A4435BBB0340436139237"><enum>(ii)</enum><header display-inline="yes-display-inline">Certain exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFE622AEEB524EAB84DCB5209638BF67"><enum>(14)</enum><header display-inline="yes-display-inline">Exception for federal reserve banks and
corporation security interest</header><text display-inline="yes-display-inline">No provision of this subsection shall apply
with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6208B178469D497F96993DE98F23AAC0"><enum>(A)</enum><text display-inline="yes-display-inline">any extension of credit from any Federal
Reserve bank or the Corporation to any covered financial company; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0747E4DE0B7B46B9BBB7512349568571"><enum>(B)</enum><text display-inline="yes-display-inline">any security interest in the assets of the
covered financial company securing any such extension of credit.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAB955531DE404F44BD31B418F1A55D44"><enum>(15)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H7AD7598E58914487ACFF1B692B63EB9F"><enum>(16)</enum><header display-inline="yes-display-inline">Authority regarding collective bargaining
agreements</header><text display-inline="yes-display-inline">The Corporation as
receiver for any covered financial company shall not disaffirm or repudiate any
collective bargaining agreement to which the covered financial company is a
party unless the Corporation determines that repudiation is necessary for the
orderly resolution of the covered financial company after taking into
consideration the cost to taxpayers and the financial stability of the United
States.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9369B2515636481487BBA93F29DF2FB5"><enum>(d)</enum><header display-inline="yes-display-inline">Valuation of claims in default</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7B6DB99643B04BC781078D958FE1E345"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08FB929A820A4674B70E216DF7A17B56"><enum>(2)</enum><header display-inline="yes-display-inline">Maximum liability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD3D1A6949EE2470AA0339BC77CBEF56B"><enum>(A)</enum><text display-inline="yes-display-inline">a determination had not been made under
section 1603(b) with respect to the covered financial company; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAF5A329B383B4056A6706E46149BFD9F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C9873A6CB084F7F923CF780C95C6667"><enum>(3)</enum><header display-inline="yes-display-inline">Additional payments authorized</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBEBBC191FA744591AFD1F816EF2D6116"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB32E9B5DACD44A48B5E4F03427093628"><enum>(i)</enum><text display-inline="yes-display-inline">minimize losses to the receiver from the
dissolution of the covered financial company under this section; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF93DF496DB4140CEB1C10B8FDA85995B"><enum>(ii)</enum><text display-inline="yes-display-inline">prevent or mitigate serious adverse effects
to financial stability or the United States economy.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H94B626F1C67A41EDAC36BBF0E4F5F012"><enum>(B)</enum><header display-inline="yes-display-inline">Manner of payment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46C4CC84BE90474F871C61A850704891"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation on court action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC2073BB5D2D84C0BA4EEBB711DE5C6D2"><enum>(f)</enum><header display-inline="yes-display-inline">Liability of directors and
officers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4B6B9D1215E548EEABC1D2CFC49C2178"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91373652633048CF914743C64F6DD05D"><enum>(A)</enum><text display-inline="yes-display-inline">acting as receiver of such covered
financial company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D3F4EEF7FD44BE78B404BD30F8EAF69"><enum>(B)</enum><text display-inline="yes-display-inline">acting based upon a suit, claim, or cause
of action purchased from, assigned by, or otherwise conveyed by such receiver;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H22D65D54AD484BE8B74F690B1D8C8BF9"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H735A7E83B501481EA4C528445477668F"><enum>(2)</enum><header display-inline="yes-display-inline">Actions covered</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H115F5BFA018D4D3D9A8AA990BAE16622"><enum>(3)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">Nothing in this
subsection shall impair or affect any right of the Corporation under other
applicable law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC1AA5F66D3294F21B4DEE235C4490EBA"><enum>(g)</enum><header display-inline="yes-display-inline">Damages</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3198EC0036CA422BA685E41DDD26C9D0"><enum>(h)</enum><header display-inline="yes-display-inline">Bridge financial companies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3AE9A8D3FA6D43388AD97B90960D89BB"><enum>(1)</enum><header display-inline="yes-display-inline">Organization</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF9B3BD2A70F243FF8075691E73990444"><enum>(A)</enum><header display-inline="yes-display-inline">Purpose</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2CF96609897E4A7FBD311D4DA3830E61"><enum>(B)</enum><header display-inline="yes-display-inline">Authorities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4DE502A0346F417ABF0452A88E683FC8"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1408EAEE4F41465B9A7BA3F76B0293F9"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F04D0D2AFD749069C05F5006B1016E3"><enum>(iii)</enum><text display-inline="yes-display-inline">perform any other temporary function which
the Corporation may, in its discretion, prescribe in accordance with this
section.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF7E4975DB4F4C1F85748CAC330988D7"><enum>(2)</enum><header display-inline="yes-display-inline">Charter and establishment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB4B9B8ECC2974C08802939A03FF5AE5E"><enum>(A)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H87597179513E482E8D6078747DAA4146"><enum>(B)</enum><header display-inline="yes-display-inline">Management</header><text display-inline="yes-display-inline">Upon its establishment, a bridge financial
company shall be under the management of a board of directors appointed by the
Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H18E0E10AAFBD46DA951A07DAC549A0AE"><enum>(C)</enum><header display-inline="yes-display-inline">Articles of association</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5FE400A95307499999FE673C2C9427CD"><enum>(D)</enum><header display-inline="yes-display-inline">Terms of charter; rights and
privileges</header><text display-inline="yes-display-inline">Subject to and in
accordance with the provisions of this subsection, the Corporation
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H3F4EC5C12EE14F4C881D3D905FFA4AFD"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD56D8585ADAD44A4BB9451DC54595605"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC752CC84FB1A4C9DB73AAD21C09A287A"><enum>(E)</enum><header display-inline="yes-display-inline">Transfer of rights and privileges of
covered financial company</header>
<clause commented="no" display-inline="no-display-inline" id="H6F475A98EAD54617BE481568DAF3FE0A"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEAC9F6239D704639AAC37709093DA613"><enum>(ii)</enum><header display-inline="yes-display-inline">Effective without approval</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4CD7416531C04813BE68F70DF653B937"><enum>(F)</enum><header display-inline="yes-display-inline">Corporate governance and election and
designation of body of law</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H24EA5347888043E6AF7241A0823A9519"><enum>(G)</enum><header display-inline="yes-display-inline">Capital</header>
<clause commented="no" display-inline="no-display-inline" id="H7120137E500F4EB4A1777DD17EA065B5"><enum>(i)</enum><header display-inline="yes-display-inline">Capital not required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H447DB0B0648047CFB7F01067B2DDAC31"><enum>(ii)</enum><header display-inline="yes-display-inline">No contribution by the corporation
required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H19D682C8296C471D9C3BD43101586CE4"><enum>(iii)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB13697DEBFD24FEAA9935D16BEAC04B1"><enum>(3)</enum><header display-inline="yes-display-inline">Interests in and assets and obligations of
covered financial company</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1) or (2) or any
other provision of law—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC54FE6731B8949DEBC496831BD861AE4"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB2BED7BD1D534D07875C1AA3CC00B58B"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H70E83FA108C149D09B55FD357B65D6A1"><enum>(4)</enum><header display-inline="yes-display-inline">Bridge financial company treated as being
in default for certain purposes</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBF7A6D0F0E148119E5B6A09AE85530F"><enum>(5)</enum><header display-inline="yes-display-inline">Transfer of assets and liabilities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFBF4FD65DCC748CFBECA8A5E0AA40CCD"><enum>(A)</enum><header display-inline="yes-display-inline">Transfer of assets and
liabilities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56F94696AF8D4771B1861D3C7A48465F"><enum>(B)</enum><header display-inline="yes-display-inline">Subsequent transfers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFBE6020D682D40318E4527A04095984A"><enum>(C)</enum><header display-inline="yes-display-inline">Treatment of trust or custody
business</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDAE0EBC43AE64F0489ADD67D235B851D"><enum>(D)</enum><header display-inline="yes-display-inline">Effective without approval</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H82BA237ADE5E43CCB423E5DA7E747EEC"><enum>(E)</enum><header display-inline="yes-display-inline">Equitable treatment of similarly situated
creditors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6A5620CED14F4412B9EC2B778013146B"><enum>(i)</enum><text display-inline="yes-display-inline">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 United States economy; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE553EB9FB3FA4A20999E41F715FA8FDD"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9A1E447B2934409D9798A79A91B56686"><enum>(F)</enum><header display-inline="yes-display-inline">Limitation on transfer of
liabilities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDFBA163CE7004212BCF6FE2CE4C47589"><enum>(6)</enum><header display-inline="yes-display-inline">Stay of judicial action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8813D5F75D524D43A46E67DE742B47A2"><enum>(7)</enum><header display-inline="yes-display-inline">Agreements against interest of the bridge
financial company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC4BD3765E62B42D4853B1C323EC94D7A"><enum>(8)</enum><header display-inline="yes-display-inline">No federal status</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC14471B2C98649D4B2DF015BB031694D"><enum>(A)</enum><header display-inline="yes-display-inline">Agency status</header><text display-inline="yes-display-inline">A bridge financial company is not an
agency, establishment, or instrumentality of the United States.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB822EB00C30C4209BCFF48EBF4331352"><enum>(B)</enum><header display-inline="yes-display-inline">Employee status</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16D4FD80C6A44B18B07B6C5B8D138563"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H562955C8FD6A491981E368EA35742D7E"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0DF7FA71745946F28717E554D3638C1D"><enum>(9)</enum><header display-inline="yes-display-inline">Exempt tax status</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H373EF901835A4B32951A7FF0FFDB15D5"><enum>(A)</enum><header display-inline="yes-display-inline">Exemption from Federal income
tax</header><text display-inline="yes-display-inline">Subsection (l) of section
501 of the Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HEB697444926148E19598F07DB880E43C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H8F3B6B6784D3417E95EB4DDC1D49ECFA"><enum>(4)</enum><text display-inline="yes-display-inline">Any bridge financial company organized
under section 1609(h) of the Financial Stability Improvement Act of
2009.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3ED32C7B1F654411B9F1FC7862C71240"><enum>(B)</enum><header display-inline="yes-display-inline">Exemption from certain other
taxes</header><text display-inline="yes-display-inline">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 any territory, dependency, or possession of the United
States, or by any State, county, municipality, or local taxing
authority.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H53D0DDCB9F47474E80517B1217289141"><enum>(10)</enum><header display-inline="yes-display-inline">Federal agency approval; antitrust
review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H97A3D540D3B44623B06753C6B1AB799A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 notification under section 7A of the Clayton Act is
required with respect to such transaction, then the required waiting period
shall end on the 15th day after the date on which the Attorney General and the
Federal Trade Commission receive such notification, unless the waiting period
is terminated earlier under subsection (b)(2) of such section, or is extended
pursuant to subsection (e)(2) of such section.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC99DB06E1EC04DF689E11A5A0F44B0C1"><enum>(B)</enum><header display-inline="yes-display-inline">Emergency</header><text display-inline="yes-display-inline">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 approval and prior notification referred to in subparagraph (A)
shall not be required and the transaction may be consummated immediately by the
Corporation. The preceding sentence shall not otherwise modify, impair, or
supercede the operation of any of the antitrust laws (as defined 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
relates to unfair methods of competition).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H628EFCE853404504A00367CFDCE4A72F"><enum>(11)</enum><header display-inline="yes-display-inline">Duration of bridge financial
company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDF93E2165414B89AD852DE58E55596B"><enum>(12)</enum><header display-inline="yes-display-inline">Termination of bridge financial company
status</header><text display-inline="yes-display-inline">The status of any
bridge financial company as such shall terminate upon the earliest of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7134DE8570AD4DC79F72660912870DA1"><enum>(A)</enum><text display-inline="yes-display-inline">the merger or consolidation of the bridge
financial company with a company that is not a bridge financial company;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9889C1380694468B76289BECA67909F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE33F31FF0E44B5182EC7397D1433E91"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB8CBFFF5A0744C7BC7E0B8C3B85046C"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H20EB19A81D8C4341BFF39C62D7FBF09C"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB5284EAEB58432FADFEDF10049AA1C6"><enum>(13)</enum><header display-inline="yes-display-inline">Effect of termination events</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD9F79238E8DE4829AA3648225B6CDCCC"><enum>(A)</enum><header display-inline="yes-display-inline">Merger or consolidation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEBD1EC2EE3E84D579535EF89A0CB01C5"><enum>(B)</enum><header display-inline="yes-display-inline">Charter conversion</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2C656E20E3E8458092DF4B6653E9E3AB"><enum>(C)</enum><header display-inline="yes-display-inline">Sale of stock</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FC304AB7137443C8CF00E8111C21ADF"><enum>(D)</enum><header display-inline="yes-display-inline">Assumption of liabilities and sale of
assets</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H839627C0C9FC4DE1B120BB4F7A36B79A"><enum>(E)</enum><header display-inline="yes-display-inline">Amendments to charter</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0ED190F21DDE4902B992C087C677E9EC"><enum>(14)</enum><header display-inline="yes-display-inline">Dissolution of bridge financial
company</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H60350515F3304AE5B0EAE0A210CF0746"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4D2005DCE65E47ADAC2F9CD9B6DE2B21"><enum>(i)</enum><text display-inline="yes-display-inline">the Corporation may, in its discretion,
dissolve the bridge financial company in accordance with this paragraph at any
time; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3E9CAB0285974AB8B6285DE282F84E9C"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD1B687180F824E7CBA1FA545D6137A63"><enum>(B)</enum><header display-inline="yes-display-inline">Procedures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBD2C4FD54A204ACD9AC17336063E460F"><enum>(15)</enum><header display-inline="yes-display-inline">Authority to obtain credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F16E169EDA94AED91CDBB3AA7770A4D"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A bridge financial company may obtain
unsecured credit and issue unsecured debt.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D2CA5C6B0BA4E5D85CAE255F0EC83FB"><enum>(B)</enum><header display-inline="yes-display-inline">Inability to obtain credit</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H29428DD7794C4D1FA4A92BE5C57E1BCF"><enum>(iii)</enum><text display-inline="yes-display-inline">secured by a junior lien on property of the
bridge financial company that is subject to a lien.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFF85C10A9F244D68A8F4892D96026E67"><enum>(C)</enum><header display-inline="yes-display-inline">Limitations</header>
<clause commented="no" display-inline="no-display-inline" id="HF5AB76476FAE4FF6BE134ACC834B8771"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H97A1645802174313A257280B82C81D48"><enum>(I)</enum><text display-inline="yes-display-inline">the bridge financial company is unable to
otherwise obtain such credit or issue such debt; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6AAB0DB1D3B345A590457E22FAB0D603"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HABB23F8DC0434F4A8D106BDFB15C6F05"><enum>(D)</enum><header display-inline="yes-display-inline">Burden of proof</header><text display-inline="yes-display-inline">In any hearing under this subsection, the
Corporation has the burden of proof on the issue of adequate protection.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74394B44D55449518C650B276BAC551A"><enum>(16)</enum><header display-inline="yes-display-inline">Effect on debts and liens</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBA9B96414EC24BC1AA31BF5C8D21F979"><enum>(i)</enum><header display-inline="yes-display-inline">Sharing records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA79427295424B0690D75347D10E56F7"><enum>(j)</enum><header display-inline="yes-display-inline">Expedited procedures for certain
claims</header>
<paragraph commented="no" display-inline="no-display-inline" id="H37022628A6A04BC7ACB22ACB59D144A5"><enum>(1)</enum><header display-inline="yes-display-inline">Time for filing notice of
appeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C1763D02E374E9AAB84B0B4E7C76D92"><enum>(2)</enum><header display-inline="yes-display-inline">Scheduling</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75784C9A719A4E2C9687B21432B22070"><enum>(3)</enum><header display-inline="yes-display-inline">Judicial discretion</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HADA673743AE344C99703CC575738B8A2"><enum>(k)</enum><header display-inline="yes-display-inline">Foreign investigations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7773A09624F6463BBAF3383D6B564E4C"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCF11747765654ECCB68B0CD0F3879232"><enum>(2)</enum><text display-inline="yes-display-inline">may maintain an office to coordinate
foreign investigations or investigations on behalf of foreign financial
authorities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCAC8B8D96B4844E6B0CE4DA7F8352605"><enum>(l)</enum><header display-inline="yes-display-inline">Prohibition on entering secrecy agreements
and protective orders</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H77ED564855FF4240994E59FEBF3F760C"><enum>(m)</enum><header display-inline="yes-display-inline">Liquidation of certain covered financial
companies or bridge financial companies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF779A249D76D4CB486B1C2AA68CF4129"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2958A1FD33FA4F27BA8D97A3E2DC1317"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3A4C4F62B46E42DAAEBF6C143B0E6F73"><enum>(n)</enum><header display-inline="yes-display-inline">Systemic dissolution fund</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="H4B71277E158A4EDA86237A1320EBFC22"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment and purpose</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEF83ACFD6D5D4E23AB4730A14F41BF75"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There is established in the Treasury a
separate fund to be known as the <quote>Systemic Dissolution
Fund</quote>—</text>
<clause commented="no" display-inline="no-display-inline" id="H73CE802A7BB749BFB5ABC34DFB519C63"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3EA455E1888F490D98565C59DB0F033F"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3427F8FDC64D4339AAC10BC4C5312D20"><enum>(B)</enum><header display-inline="yes-display-inline">Adjustment of threshold</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1509B2B4980C454EB0E6992CFD8D1E1E"><enum>(2)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The Systemic Dissolution Fund shall be
administered by the Corporation, which shall have exclusive authority
to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA5E590BFF2114490AB140A18C02F3121"><enum>(A)</enum><text display-inline="yes-display-inline">impose assessments on covered financial
companies in accordance with paragraphs (6) through (8);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB4A9458A87AA4A708E8BC2D51C361D6C"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F21C78BA6E34B28B15D0DFA4CD2BCF0"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H847079B67EA84A7DA6BBEAD9DEFC0776"><enum>(D)</enum><text display-inline="yes-display-inline">invest the Fund in accordance with section
13(a) of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB5ACB777B40C4FED9A11210CCEC73863"><enum>(E)</enum><text display-inline="yes-display-inline">exercise borrowing authority as prescribed
in subsection (o).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA376125677749519CCBB3DC6B7F5E1C"><enum>(3)</enum><header display-inline="yes-display-inline">Uses</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE4C79948792145F09D752235D7161AB7"><enum>(A)</enum><text display-inline="yes-display-inline">The Fund shall be available to the
Corporation for use with respect to the dissolution of a covered financial
company to—</text>
<clause commented="no" display-inline="no-display-inline" id="H4CD42E085B914873ACC5203D9E6193BE"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4D8EA45121814AB2BB45DB2FB06B4F90"><enum>(ii)</enum><text display-inline="yes-display-inline">repay such funds in accordance with
subsection (o)(6); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H13F7373B15EB4DDE842D410440B949ED"><enum>(iii)</enum><text display-inline="yes-display-inline">cover the costs of systemic stabilization
actions, pursuant to subsections (d) and (f) of section 1604.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5309636C25D94DD281E9300DB5AD8053"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFEB1EDD201C44DD0B51C239A4BB27FF4"><enum>(4)</enum><header display-inline="yes-display-inline">Deposits to fund</header><text display-inline="yes-display-inline">All amounts assessed against a financial
company under this section shall be deposited into the Fund.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD18B415E1411402AAE931ECC62F1783D"><enum>(5)</enum><header display-inline="yes-display-inline">Size of fund</header><text display-inline="yes-display-inline">The Corporation shall, by rule, establish
the minimum size of the Fund consistent with subparagraphs (C) and (D) of
paragraph (6).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCC76E86215F048399156D999F2B0CE3E"><enum>(6)</enum><header display-inline="yes-display-inline">Assessments</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1054EE529B5948C09D4E13963395B00F"><enum>(A)</enum><header display-inline="yes-display-inline">Assessments to maintain fund</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H559AE5FDAAF64B53906D699C75314A93"><enum>(B)</enum><header display-inline="yes-display-inline">Assessments to replenish the
fund</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB359B83A146E4989AC47C3F17558CCB1"><enum>(C)</enum><header display-inline="yes-display-inline">Minimum assessment threshold</header><text display-inline="yes-display-inline"></text>
<clause commented="no" display-inline="no-display-inline" id="HA8B2DC7E8BD4452A84AD4818C78E26CE"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 $50,000,000,000, adjusted for
inflation, or more in assets in accordance with paragraphs (7) and (8).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3EDDF6C427D94C3E90D84B1B5ACDEC3E"><enum>(ii)</enum><header display-inline="yes-display-inline">Hedge funds</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC4C4F69EBD2B416393DA146F680D8ADF"><enum>(D)</enum><header display-inline="yes-display-inline">Maximum size of fund via
assessments</header>
<clause commented="no" display-inline="no-display-inline" id="H3AA4ACF817A148A19DE4653C9BCEE6D3"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFCC3634582CE46FC8EDCE8FB4ADF7376"><enum>(ii)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Any suspension of assessments under clause
(i)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HB645C781577540F281035D6F3E714DCC"><enum>(I)</enum><text display-inline="yes-display-inline">may be set aside if the Fund falls below
$150,000,000,000; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB61472E21688400598566356B2FD3449"><enum>(II)</enum><text display-inline="yes-display-inline">shall be set aside if the Fund falls below
the minimum level established in subparagraph (C).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC8339728552248EDA2593DCB84A9352C"><enum>(E)</enum><header display-inline="yes-display-inline">Additional authorized
assessments</header><text display-inline="yes-display-inline">The Corporation
is authorized to conduct risk-based assessments on financial companies in such
amount and manner and subject to terms and conditions that the Corporation
determines, with the concurrence of the Secretary of the Treasury and the
Federal Reserve Board, are necessary to pay any shortfall in the Troubled Asset
Relief Program established by the Emergency Economic Stabilization Act of 2008
that would add to the deficit or national debt, as identified by the Director
of the Office of Management and Budget, in consultation with the Director of
the Congressional Budget Office pursuant to section 134 of such Act (12 U.S.C.
5239).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC4936E1F0DA49CE8323BE3381403E6F"><enum>(7)</enum><header display-inline="yes-display-inline">Factors</header><text display-inline="yes-display-inline">The Corporation, in consultation with the
Council shall establish a risk matrix to be used in establishing assessments
that takes into account—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1A4DB409B1F947ABB1BD4674D80AAC86"><enum>(A)</enum><text display-inline="yes-display-inline">the actual or expected risk of losses to
the Fund;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H29ED2EE36BEC427F83E9F6C8FD6370BD"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H066D7C6640CC41D6848CAD7D3F4BB904"><enum>(C)</enum><text display-inline="yes-display-inline">any assessments imposed on a financial
company or an affiliate of a financial company that—</text>
<clause commented="no" display-inline="no-display-inline" id="H7FACF906A83B42D3B1193692176F94E5"><enum>(i)</enum><text display-inline="yes-display-inline">is an insured depository institution,
assessed pursuant to section 7 or 13(c)(4)(G) of the Federal Deposit Insurance
Act;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7934A1C009334C20A341CAC43105C080"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0B6E1A8DBCC24B05BFE54671A053E13C"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H063D483BC03A4701B95D1E3AA9978C64"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F90E8664219452A81F82D73AE1E32B1"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD9279E2E782E484B95BD03775DBA3C81"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36291BAA196540589E6D695BB112361F"><enum>(ii)</enum><text display-inline="yes-display-inline">the activities of the financial company and
its affiliates;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7FC4D28E5DFD4F0A98DAF1467684D279"><enum>(iii)</enum><text display-inline="yes-display-inline">the relevant market share of the financial
company and its affiliates;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H13005EED0D04421FACA98017F65F29B2"><enum>(iv)</enum><text display-inline="yes-display-inline">the extent to which the financial company
is leveraged;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCA179CDCBFAC4527B62DA10307E2280D"><enum>(v)</enum><text display-inline="yes-display-inline">the potential exposure to sudden calls on
liquidity precipitated by economic distress;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HABE08B5BE0134C839CB6038D93AC45BC"><enum>(vi)</enum><text display-inline="yes-display-inline">the amount, maturity, volatility, and
stability of the company’s financial obligations to, and relationship with,
other financial companies;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA97BADFA6DB8475FA40685FAF7A89D8C"><enum>(vii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCC09B28FD8CA42B6AA9EABC9CF8BED53"><enum>(viii)</enum><text display-inline="yes-display-inline">the stability and variety of the company’s
sources of funding;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1F174156B9BE4CD29503B3CBCE3A9CE2"><enum>(ix)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8B72BD76A71F4D1498CEFCAB8422B7D6"><enum>(x)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H605877398AAE49D7BDEE5E68AEEBAA0F"><enum>(xi)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0F2987A49C440E48CDEEF32332FE417"><enum>(E)</enum><text display-inline="yes-display-inline">such other factors as the Corporation, in
consultation with the Council, may determine to be appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0456F747371F4136A1AC39E99DF11AF0"><enum>(8)</enum><header display-inline="yes-display-inline">Requirement for equitable treatment in
assessments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1D0D9B00AD4472E921716C0FEC90ABB"><enum>(9)</enum><header display-inline="yes-display-inline">Minimum comment period</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H167BBB7F8A084B47BADD719CE6D7328D"><enum>(o)</enum><header display-inline="yes-display-inline">Borrowing authority</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="HCF033378947D491D8DB7B2B696C2C77C"><enum>(1)</enum><header display-inline="yes-display-inline">Borrowing from treasury</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC5FE7E202F2B470BA6ECC16178F1828C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H25CA2387A9A34BF0980F2CDE7F6FD6CC"><enum>(B)</enum><header display-inline="yes-display-inline">Rate of interest</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5EE4F3872D6D484980FA6D966149D7AA"><enum>(2)</enum><header display-inline="yes-display-inline">Public debt issuances</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0D066C2A916743378705C00F74E6DADC"><enum>(3)</enum><header display-inline="yes-display-inline">Borrowing authority when fund assets are
less than $150,000,000,000</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB51F4F463534A009976257F3A43865E"><enum>(A)</enum><text display-inline="yes-display-inline">Subject to paragraph (B), the borrowing
authority granted in paragraph (1) shall be available to the Corporation
where—</text>
<clause commented="no" display-inline="no-display-inline" id="HFEEDA738366F43A597D3170B4E003C2A"><enum>(i)</enum><text display-inline="yes-display-inline">the value of the Fund is less than
$150,000,000,000;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H041E02144B7B43CB8743051296EBDC4D"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC85A7DC7BBF4471C9E08C409ECA69FAC"><enum>(iii)</enum><text display-inline="yes-display-inline">the Corporation has provided a specific
plan for repayment under paragraph (7)(A).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0CA5BB913E20472CBA46CC76BAAE393D"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H09EE862A4E394A868B0F6D7B10DBD975"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E26AD63EEC44E88879756A6FB91AFDB"><enum>(4)</enum><header display-inline="yes-display-inline">Additional borrowing
authority</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0BE965D9CC6141F39A4397D89964E42D"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E3FD96E1B0543938CF17254E45C754D"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H96AC634C37A54850BD3795A4D531C742"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCB2A2876F5894604926A5C77385CFA56"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDAE16AFE230C4BE7A1161351E6C0CB72"><enum>(5)</enum><header display-inline="yes-display-inline">Limitations on additional borrowing
authority</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H57B0D216A24C472289533AB3A809DD06"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H18C0A4ED9BCC4AECB88DBA1FAE1E0019"><enum>(B)</enum><text display-inline="yes-display-inline">The amount of borrowing authority requested
under subparagraph (A)(i) may not exceed $50,000,000,000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE141CE9514814B8EAC9314B452D7B9BD"><enum>(6)</enum><header display-inline="yes-display-inline">Proceeds from liquidation, repayment of
funds</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAE669F32D98043A39880A93A33040156"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71B8613AA56146CF9F99473CD8782A5E"><enum>(B)</enum><header display-inline="yes-display-inline">Repayment priority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDA3F3147E05B48858D255CFB635B52BE"><enum>(i)</enum><text display-inline="yes-display-inline">first, to repay any costs incurred in
exercising the borrowing authority granted in paragraph (1); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDE90B2135D484F919C5656DD9B169888"><enum>(ii)</enum><text display-inline="yes-display-inline">second, to recapitalize the Fund, subject
to the requirements of section 1604(g), to such level as the Corporation deems
necessary, but not to exceed $150,000,000,000.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72412A188E3B4D8187E14B57CE65DF7A"><enum>(7)</enum><header display-inline="yes-display-inline">Repayment plan and schedules required for
any borrowing</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H43322B70A47F487EBC7E4EED5B0B24E7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FF2A59F0A934EF184D2A256BCAC3FBA"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B88186EEF0B47D689CEC064E7583A62"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC773E7B552CD42F8BDA5E2963C06A9AD"><enum>(B)</enum><header display-inline="yes-display-inline">Consultation with and report to
congress</header><text display-inline="yes-display-inline">The Secretary of the
Treasury and the Corporation shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HEEF2296263414172990E137E6EAFB9EC"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB184BB697E8B4C3DB766E937E39C3829"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H80922FC2721C460D9D12BA39B5231753"><enum>(p)</enum><header display-inline="yes-display-inline">Information gathering and verification;
payments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HADB316996DC2455984E28033703F51FC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Corporation may require each financial
company to make available such information as the Corporation may
require—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H34B9C07739A647B8B21DAAA82F657F83"><enum>(A)</enum><text display-inline="yes-display-inline">for purposes of—</text>
<clause commented="no" display-inline="no-display-inline" id="H009146329B14401999552300FCE63C10"><enum>(i)</enum><text display-inline="yes-display-inline">determining the financial company’s
assessment under this section;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H257A6EF767E540CDB6498BC593E748C3"><enum>(ii)</enum><text display-inline="yes-display-inline">verifying the accuracy of information;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H62337854AE2D4A6B86ADCCEBAD3C8F4F"><enum>(iii)</enum><text display-inline="yes-display-inline">preparing for dissolution, including a
dissolution plan as required by this section; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H56565E359F1F417695F94924B996922F"><enum>(B)</enum><text display-inline="yes-display-inline">for such other purposes as may be
appropriate and necessary to promote the orderly dissolution of the financial
company.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H473D5451EAB745BD8DD0181A554EBFFF"><enum>(2)</enum><header display-inline="yes-display-inline">Use of existing reports</header><text display-inline="yes-display-inline">The Corporation shall, to the fullest
extent possible, accept—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H649FF88E88FA4CC9A53F63037680B168"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC36FDDA5BC7F48A6A8B78904A62E3979"><enum>(B)</enum><text display-inline="yes-display-inline">information that is otherwise required to
be reported publicly; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9EF400D43CF441EBB0BD535F0FB448F7"><enum>(C)</enum><text display-inline="yes-display-inline">externally audited financial
statements.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9EF0C58A922F4AD293D8266684443E67"><enum>(3)</enum><header display-inline="yes-display-inline">Authority for on-site
inspection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD9B8F2C3FB6D404EAA41B5926E2B917B"><enum>(4)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">The Corporation may promulgate such rules
or regulations as are necessary or appropriate to implement this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H915B79063029450FB2456D2F26F30CDF"><enum>(5)</enum><header display-inline="yes-display-inline">Payments of assessments required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDC41236304FB45E19E7C11E020CBDD02"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any financial company subject to an
assessment under this section shall pay to the Corporation such
assessment.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0924FEF9C63044A38784279F32D9D6F3"><enum>(B)</enum><header display-inline="yes-display-inline">Form of payment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6B2A2C1780DE4A8EA26742AEBD147C64"><enum>(6)</enum><header display-inline="yes-display-inline">Penalty for failure to timely pay
assessments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F79F99C1E6A48C38CC0D3B387F7E05F"><enum>(q)</enum><header display-inline="yes-display-inline">Assessment actions</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="HED8A19A18AB94087B8784426FE4715F9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFDFC6FD3684A47E3BDBEA7CE14D00205"><enum>(2)</enum><header display-inline="yes-display-inline">Statute of limitations</header><text display-inline="yes-display-inline">Notwithstanding any other provision in
Federal law, or the law of any State—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB09112F4D41F4AC78B6A3E8F1D64BE39"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA3DC9F1A040D4643AD0F890589F6B2F9"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H848E449306C54474BFEC4D070AE83628"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56FDC89C14454A6888A13F3C4DC7A6E3"><enum>(r)</enum><header display-inline="yes-display-inline">Requirement to maintain systemic
dissolution fund as separate fund</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35960875E188465D8BEA43F2ED02F96C"><enum>(s)</enum><header display-inline="yes-display-inline">Congressional approval of additional
borrowing authority</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="H868128D33E414BB3B63B763158CB4565"><enum>(1)</enum><header display-inline="yes-display-inline">Introduction</header><text display-inline="yes-display-inline">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 of the House and in the
Senate by the majority 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 commented="no" display-inline="no-display-inline" id="HCBC6B93345214464A94AF556F27AC0A8"><enum>(2)</enum><header display-inline="yes-display-inline">Consideration in the house of
representatives</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6690E75AEE5247CF9EA823EDFD48EDC5"><enum>(A)</enum><header display-inline="yes-display-inline">Reporting and discharge</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47E092053D13494B97CD8245403A31CF"><enum>(B)</enum><header display-inline="yes-display-inline">Proceeding to consideration</header><text display-inline="yes-display-inline">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, for the majority leader 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 commented="no" display-inline="no-display-inline" id="H9B50CF482AA24F94BAA2C8EE04F26843"><enum>(C)</enum><header display-inline="yes-display-inline">Consideration</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CF7AA4C7EC54E7E8A030A6DA0977513"><enum>(3)</enum><header display-inline="yes-display-inline">Consideration in the senate</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF1553993A51345FC9560C7568C83E09D"><enum>(A)</enum><header display-inline="yes-display-inline">Placement on calendar</header><text display-inline="yes-display-inline">Upon introduction in the Senate, the joint
resolution shall be placed immediately on the calendar.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H739CE32D9D7A485681A2C7771B3C21B7"><enum>(B)</enum><header display-inline="yes-display-inline">Floor consideration</header><text display-inline="yes-display-inline"></text>
<clause commented="no" display-inline="no-display-inline" id="H1B539161980D4BF696BF183D11DBD05B"><enum>(i)</enum><header display-inline="yes-display-inline">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 fourth day after the applicable date of introduction in the Senate and
ending on the sixth 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 commented="no" display-inline="no-display-inline" id="HD17BCB215E884FF4986D013EE225A410"><enum>(ii)</enum><header display-inline="yes-display-inline">Debate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H14F42322E49D482E8A2ED7878C941A01"><enum>(iii)</enum><header display-inline="yes-display-inline">Vote on passage</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3F8FAFA273DB435FA183BA9B21565980"><enum>(iv)</enum><header display-inline="yes-display-inline">Rulings of the chair on
procedure</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC3B2EECBD2D44CAB5ACDC801CF56533"><enum>(4)</enum><header display-inline="yes-display-inline">Rules relating to Senate and House of
Representatives</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8D17E677D6D440C9A4AEA6AB10F444B5"><enum>(A)</enum><header display-inline="yes-display-inline">Coordination with action by other
house</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFAB2A8BE055F4A7BB113BAF834E298EA"><enum>(i)</enum><text display-inline="yes-display-inline">The joint resolution of the other House
shall not be referred to a committee.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6C1E9C5A81D74BDDAD59DC2AEE316A76"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86214E51362A4C0CA1657D95C9605A6D"><enum>(B)</enum><header display-inline="yes-display-inline">Treatment of companion
measures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC9DBCDFEDEBF48DBAD1D234139119543"><enum>(C)</enum><header display-inline="yes-display-inline">Failure of joint resolution in the
Senate</header>
<clause commented="no" display-inline="no-display-inline" id="HDA173D57D1A64B5AB6C5949446EA2658"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBCE33E63D7A6433AA17A7FEDD11AE6AC"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4B0AE62FD77B43B4A2F2D259EAB967CF"><enum>(D)</enum><header display-inline="yes-display-inline">Rules of House of Representatives and
Senate</header><text display-inline="yes-display-inline">This paragraph and the
preceding paragraphs are enacted by Congress—</text>
<clause commented="no" display-inline="no-display-inline" id="H00CEA4062B9E4511AFAB3E94028B99D0"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H60A02F86C29A4B82859C6D3981E33B8B"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFCA47453267B4A49AB6DDF54387999C5"><enum>(5)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this section, the term <quote>joint
resolution</quote> means only a joint resolution—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1710E99F5AD44E07A9E04905ED2D8F87"><enum>(A)</enum><text display-inline="yes-display-inline">which does not have a preamble;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H326D1B2F8D3D4D97AB608F92B0CB3FB2"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF5C6C1B30248472BA6586BC76C4775CB"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE1F16F72319A4A918542A710E146D901"><enum>(t)</enum><header display-inline="yes-display-inline">No federal status</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAB5BC53EB11F40D6A7A835405C5B80A9"><enum>(1)</enum><header display-inline="yes-display-inline">Agency status</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F2AAA91492746EA8D638EF2EA4FE353"><enum>(2)</enum><header display-inline="yes-display-inline">Employee status</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H182E8BDBB9944723BA55AAD4035D62E5"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7CF7F32C348645E2AC0668E593151BC6"><enum>(B)</enum><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H346411518A69485893E825F13E609918"><enum>(u)</enum><header display-inline="yes-display-inline">Study of payment of consumer
claims</header><text display-inline="yes-display-inline">Not later than 6
months following the dissolution of a covered financial company under section
1603(b), the Comptroller General of the United States shall carry out a study,
and report on such study to the Committee on Banking, Housing, and Urban
Affairs and the Committee on the Judiciary of the Senate and the Committee on
Financial Services and the Committee on the Judiciary of the House of
Representatives, regarding the satisfaction of claims arising from violations
of the provisions of the Truth in Lending Act, if any, in instances where any
assets were transferred from such covered financial company.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3EFE93CCE21448B8AB88D590095674CE" section-type="subsequent-section"><enum>1610.</enum><header display-inline="yes-display-inline">Clarification of prohibition regarding
concealment of assets from receiver or liquidating agent</header>
<subsection commented="no" display-inline="no-display-inline" id="H91AF3FB1F00A4D18B41DBAB50A050FFF"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 Dissolution Authority for Large, Interconnected Financial Companies Act of
2009,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFB985E0E4831424D9216D383B20FEB65"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming change</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBAA3223AB054411E936CC73FEB843A95" section-type="subsequent-section"><enum>1611.</enum><header display-inline="yes-display-inline">Office of Dissolution</header>
<subsection commented="no" display-inline="no-display-inline" id="H3A9428B71E704AA7816587524B5F6237"><enum>(a)</enum><header display-inline="yes-display-inline">Trigger of and plan for
establishment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H61123B33D475427096FDC7EF467976A0"><enum>(1)</enum><header display-inline="yes-display-inline">Trigger</header><text display-inline="yes-display-inline">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 Dissolution as an office within
the Office of the Inspector General of the Corporation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFF4EB4CC839A42EEBF041728A9FEDB11"><enum>(2)</enum><header display-inline="yes-display-inline">Plan</header><text display-inline="yes-display-inline">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 Dissolution 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 commented="no" display-inline="no-display-inline" id="HF38B1035952442A4A0422A56443929D6"><enum>(b)</enum><header display-inline="yes-display-inline">Special Deputy Inspector
General</header><text display-inline="yes-display-inline">The head of the
Office of Dissolution is the Special Deputy Inspector General for Dissolution
(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 commented="no" display-inline="no-display-inline" id="H66C95D53B9E845569C6FA3F7E1AFCC68"><enum>(c)</enum><header display-inline="yes-display-inline">Duties</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA162F6B869EC488FB47AE2A491413CF4"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBA44E0811BCB463086010F7019A5FC71"><enum>(A)</enum><text display-inline="yes-display-inline">A description of each financial company for
which the Corporation has been appointed as receiver under section 1604.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H03DE5D7D6C864461BDE57BFB8CADEEF5"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H38E1619DCB85485FB3311209324971A5"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC41C2D4D803244AF8AD4018C42B03091"><enum>(2)</enum><header display-inline="yes-display-inline">Additional duties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAC92B551AB024BC0B67B2A6AA4561BD0"><enum>(A)</enum><header display-inline="yes-display-inline">Systems, procedures, and
controls</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFC34F22B16F84F6C93331A88D618CDAD"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0F95A228BB04EDA8E1E4B0F4D14EBBA"><enum>(C)</enum><header display-inline="yes-display-inline">Minimizing duplication of
effort</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBAF00CDE41224FA3875990D5F2FE6607"><enum>(3)</enum><header display-inline="yes-display-inline">Duties under the Inspector General Act of
1978</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9BD3BA4DB6134894959DFF8129FE7995"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3F768517C0C74A8C95520FFF2A62103F"><enum>(e)</enum><header display-inline="yes-display-inline">Personnel, Facilities, and Other
Resources</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB5DACE24C6154AA4820C0528E7A8C5DA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3DF5155BB2764D6CA7CE0367493E77BA"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3ECF2D4FCDF248EB9CA1945F90D33491"><enum>(f)</enum><header display-inline="yes-display-inline">Corrective responses to audit
problems</header><text display-inline="yes-display-inline">The Chairman of the
Corporation shall—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H98D8CB8681DB45918B266B31E12D74DD"><enum>(2)</enum><text display-inline="yes-display-inline">certify to the appropriate committees of
Congress that no action is necessary or appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFC241B5285FD4D0BAE060F1029F9E075"><enum>(g)</enum><header display-inline="yes-display-inline">Cooperation and coordination with other
entities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBE95EFFD9D1D4B7B89187BA54B00DDF3"><enum>(h)</enum><header display-inline="yes-display-inline">Reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDAAC43453A4844098E566EEC26DA6912"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2A60852C5E5D45A2937CE4E2806FC227"><enum>(A)</enum><text display-inline="yes-display-inline">Not later than 30 days after the
appointment of the Special Deputy Inspector General.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HFB8DF73A27C34759B8EFF35402A5136D"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA05980F0611E4CBF9FE493FFEDF5CE69"><enum>(A)</enum><text display-inline="yes-display-inline">the activities of the Special Deputy
Inspector General; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1F03DC232AA440C7AE59036CE8DDEFBE"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBCC810F12B64402A812CAB1B1BE2208C"><enum>(i)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">The Office of Dissolution 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 commented="no" display-inline="no-display-inline" id="HAEB28013E7714E28BA226EE438936465" section-type="subsequent-section"><enum>1612.</enum><header display-inline="yes-display-inline">Miscellaneous provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="HEAD7964C29974CAB8291D23A36C91FC5"><enum>(a)</enum><header display-inline="yes-display-inline">Bankruptcy code amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1505A484D2ED450AB1586F496BCA5E82"><enum>(1)</enum><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA122529018B941FDA084429F6CE1403C"><enum>(2)</enum><text display-inline="yes-display-inline">Section 303 of title 11, United States
Code, is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H63B9A5ACC6CC4C9DA0A6469DF3EED9C2"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (h)—</text>
<clause commented="no" display-inline="no-display-inline" id="H462734748D504DB4B56DCEDF75FBC400"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end of
paragraph (1);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF77E3A3318C345E1B6E3993054FDDC98"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking the period at the end of
paragraph (2) and inserting <quote>; or</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5969582FA24B43449ACF250FB6DFCEEA"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE33ACCB3B55D479EAAC6724DD668B827" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD22DCAF310AB44439636CE3767688AF2"><enum>(3)</enum><text display-inline="yes-display-inline">an involuntary case is filed against a
covered financial company, as defined in section 1602(5) of the Dissolution
Authority for Large, Interconnected Financial Companies Act of 2009, by the
Federal Deposit Insurance Corporation under section 1607 of that
Act.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H21F72FF3FFEC465F848EAB31894637D0"><enum>(B)</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="HABF8504082A5427088C7D98A6B142A98" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8701CA47A31B4DCBA9492C251BF4DE46"><enum>(m)</enum><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b) of
this section and section 109(b)(2), an involuntary case may be commenced by the
Federal Deposit Insurance Corporation against a covered financial company (as
defined in section 1602(5) of the Dissolution Authority for Large,
Interconnected Financial Companies Act of 2009). Such involuntary case may be
commenced by the Federal Deposit Insurance Corporation in accordance with
section 1607 of that
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA072B72C6D5C4A1A907D30AA76C70CDD"><enum>(3)</enum><text display-inline="yes-display-inline">Title 11, United States Code, is amended by
inserting after section 303 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HDBC13CEA3E064EEA849A72F8CE5A14A4" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H9397EF20039C482ABA51899B1D30013A" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Cases involving FDIC dissolution
authority</header>
<subsection commented="no" display-inline="no-display-inline" id="HAD1CA91D947F43078224E9367A4D99EE"><enum>(a)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">In any case commenced by the Federal
Deposit Insurance Corporation under section 303(m), on the request of the
Federal Deposit Insurance Corporation, such Corporation shall be appointed to
serve as trustee in such case, notwithstanding any other provision of this
title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H88F41122D33D44CBB1DD216E29EE1C2C"><enum>(b)</enum><header display-inline="yes-display-inline">Qualification</header><text display-inline="yes-display-inline">Sections 321, 322, 324, and 326 shall not
apply with respect to the appointment or service of such Corporation as trustee
in any case so
commenced.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H61A8BA566E8D4E3A9880A21509C9AE7C"><enum>(b)</enum><header display-inline="yes-display-inline">Federal Deposit Insurance Act and Federal
Deposit Insurance Corporation Improvement Act of 1991</header>
<paragraph commented="no" display-inline="no-display-inline" id="H79F77D08BF5F48C48BD5C10E3F7BFECE"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0383F7B3F98F4B3D84A2D2F7720B42EB"><enum>(2)</enum><text display-inline="yes-display-inline">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 Dissolution 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 commented="no" display-inline="no-display-inline" id="HD4FB681731D44FFF810A1705A2A62818" section-type="subsequent-section"><enum>1613.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E9B100F0033416DA6E63A1D472DAC16" section-type="subsequent-section"><enum>11B.</enum><header display-inline="yes-display-inline">Systemic dissolution authority and
fund</header>
<subsection commented="no" display-inline="no-display-inline" id="H9668D8E032E7486ABCAC9C4B3ADF83B9"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H45A71E5109414A3A8196062307A53E2C"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H55A20FD5F4B342C2B5A487B65F51AA77"><enum>(c)</enum><header display-inline="yes-display-inline">Management of fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBA4C5A19A8CE4BA48FC4B605AB4564F6"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9622DE609D2C4577870D258369C29C0C"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment of and accounting for
assets</header><text display-inline="yes-display-inline">The assets and
liabilities of the Systemic Dissolution Fund—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HADEB036614AB41B68D38D1F4B6BD51F1"><enum>(A)</enum><text display-inline="yes-display-inline">shall be the assets and liabilities of the
Fund and not of the Corporation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF8C022DE0F8A44A183FCD5BA4EEF34C4"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H009949309EF54669B8E057231E96535E"><enum>(d)</enum><header display-inline="yes-display-inline">Rights, powers, and duties</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEF42AB8831F049D7B536450A609D261F"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5FBC9F3D2E8440C1A72CC1925767EED2"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E5166C618B4410CA36C4D2115422272"><enum>(3)</enum><header display-inline="yes-display-inline">Specific and incidental
powers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H786EFCB7FF1941EEBEAA993204F8726F"><enum>(e)</enum><header display-inline="yes-display-inline">Staff and resources</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA0AF3C6F409A430EB3F099EC7E735E11"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H696FC147E9C447B788F972DCA9BBABAD"><enum>(2)</enum><header display-inline="yes-display-inline">Administrative expenses</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8FE929AB43AB465983261FA393835299" section-type="subsequent-section"><enum>1614.</enum><header display-inline="yes-display-inline">Application of executive compensation
limitations</header><text display-inline="no-display-inline">At any time that
the Corporation has borrowed from the Treasury pursuant to section 1609(o) to
resolve a covered financial company, the Corporation shall apply the executive
compensation limits under section 111 of the Emergency Economic Stabilization
Act of 2008 to such company for so long as such company is in
receivership.</text>
</section><section commented="no" display-inline="no-display-inline" id="H098CBF671A6945A4B33D26AA4E151CFF" section-type="subsequent-section"><enum>1615.</enum><header display-inline="yes-display-inline">Study on the effect of safe harbor
provisions in insolvency cases</header>
<subsection commented="no" display-inline="no-display-inline" id="H3F376AEF75614FAA9EA7CE40AD2CB879"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study of the safe harbor provisions under Federal law
for derivatives, swaps, and securities transactions addressing—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC025CC0EACF144539369C3796A68E181"><enum>(1)</enum><text display-inline="yes-display-inline">how the safe harbor provisions have been
applied in insolvency cases;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HABC1D7C0A1E24CAA9781D3024CE02A30"><enum>(2)</enum><text display-inline="yes-display-inline">how such provisions impact the rights of
parties in interest in insolvency cases;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9000EE361DBB4C6EAF76014878F00924"><enum>(3)</enum><text display-inline="yes-display-inline">whether these provisions impede or
interfere with allowing a debtor a reasonable period of time to pursue
rehabilitation and reorganization; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEA82A50A2D584832A66F07BC1096673F"><enum>(4)</enum><text display-inline="yes-display-inline">whether these provisions had an adverse
impact on the financial marketplace.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H28F315197BAE4B73A462450348356184"><enum>(b)</enum><header display-inline="yes-display-inline">Report to the Congress</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this title, the Comptroller General shall submit to the
President pro tempore of the Senate and the Speaker of the House of
Representatives a report on the results of the study conducted under subsection
(a), together with any recommendations for legislation to address any adverse
impacts presented by the Federal safe harbor provisions.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H106DED7B14224B158B62778AEAE04059" section-type="subsequent-section"><enum>1616.</enum><header display-inline="yes-display-inline">Treasury study</header>
<subsection commented="no" display-inline="no-display-inline" id="HEEE7DAD81E0A4DB98B8F3F29DB41864E"><enum>(a)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">The Secretary shall
carry out a study analyzing how the resolution authority provided under this
subtitle should be funded. Such study shall consider the following
factors:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H54D9B3150C7346B88A828CCA5523B95F"><enum>(1)</enum><text display-inline="yes-display-inline">The consequences of any assessments on the
overall recovery of the economy of the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H804F25FBB3974F808FF091B9794DBA42"><enum>(2)</enum><text display-inline="yes-display-inline">Any immediate or continuing consequences of
assessments on other aspects of the economy of the United States, including job
creation, public and private investments, small business loans, and general
credit availability.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F75CF0FF3894C4DB14423C5B0E1AB8B"><enum>(3)</enum><text display-inline="yes-display-inline">The consequences of any assessments on
individual sectors of the financial services industry.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1020C19160374AB1A175A3735EB982EB"><enum>(4)</enum><text display-inline="yes-display-inline">The consequences of any assessments on the
financial integrity on individual firms within each sector of the financial
services industry.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3DC7C98300246E19B1383FE4C3FAEB0"><enum>(5)</enum><text display-inline="yes-display-inline">The appropriateness and effect of
assessments on firms that are subject to separate assessments under existing
State or Federal depositor, policyholder, or investor protection mechanisms and
the consequences of any such assessments on these mechanisms themselves.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC5D3F096B3EF44BBA825F6CA38FF58D8"><enum>(6)</enum><text display-inline="yes-display-inline">The implications of assessments on all
relevant stakeholders, including taxpayers, depositors, insurance
policyholders, investors, counterparties, and creditors.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H337156EB91B64720BDDC38B294BAABE6"><enum>(7)</enum><text display-inline="yes-display-inline">Evaluation of the appropriate assessment
base, including but not limited to factors such as assets and liabilities,
assets under management, policyholder reserves, other reserves, statutory and
regulatory capital requirements, trusteed assets, and deposits and inflationary
factors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H020D9DE8387D42CC9BCE500ACC529FEE"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than the end of the 6-month
period beginning on the date of the enactment of this subtitle, the Secretary
shall issue a report to the Congress containing all determinations and
conclusions made by the Secretary in carrying out the study required under
subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7F4DF0EFE4CD4178A6EDD9171459EBFF" section-type="subsequent-section"><enum>1617.</enum><header display-inline="yes-display-inline">Priority of claims in federal deposit
insurance act</header><text display-inline="no-display-inline">Section
11(d)(11)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(11)(A)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5E8BBFBF1CBA4F7DA7D4739F3C3670B3"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating clauses (iii) through (v)
as clauses (iv) through (vi), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5686E3462EA045CBB627A2445BB257EB"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the
following new clause (iii):</text>
<quoted-block display-inline="no-display-inline" id="H7785B4D6F5CB4469AA8D4AC715541B31" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H611DAADA8A2E4C8B9D177FA9CEFADCAE"><enum>(iii)</enum><text display-inline="yes-display-inline">Any obligation of the institution owed to
the Corporation as a result of the institution's default on a
Corporation-guaranteed
debt.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle commented="no" id="HEB605786D64E45C9B589F304FEC91CA3" level-type="subsequent"><enum>H</enum><header display-inline="yes-display-inline">Additional improvements for financial
crisis management</header>
<section commented="no" display-inline="no-display-inline" id="H336DEE05F3944DD6A6665676C74A2C52" section-type="subsequent-section"><enum>1701.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6572D6CAE0E14194AA02C90CA81B6CDE"><enum>(c)</enum><header display-inline="yes-display-inline">Financial crisis management</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7704355B9AEB49B2A4FFF36B744440FD"><enum>(1)</enum><header display-inline="yes-display-inline">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 House of
Representatives and the Senate. The amounts made available under this
subsection shall not exceed $4,000,000,000,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDCB1FDC98C534920A4F501AAC69679C7"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H73ABD07A3E8A4F6C9EC0B07D73951940"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5E5B88BA29E6413CA87640599F3B1801"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB33B9C51092A4D1D95D7275FF4D356D4"><enum>(B)</enum><text display-inline="yes-display-inline">An asset in a nonaccrual status.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3F12E536594B400E8C84444A2F7B52FB"><enum>(C)</enum><text display-inline="yes-display-inline">An asset on which principal or interest
payments are more than 30 days past due.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8E6E55FF3D2C4C7DBFD9747A7F8491D7"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6583001F777944F09A762031379FC23F"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8C139303445B42B5BC631DE59FD95C47"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE17FEE2602654E85A2636FE91CC5FAF9"><enum>(6)</enum><header display-inline="yes-display-inline">Congressional disapproval of additional
borrowing authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC6CECC030C0C4FAF8712EC2575A80976"><enum>(A)</enum><header display-inline="yes-display-inline">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 in the Senate by the majority leader.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H346C4D30E5214866BD00652D5422BAAB"><enum>(B)</enum><header display-inline="yes-display-inline">Consideration in the house of
representatives</header>
<clause commented="no" display-inline="no-display-inline" id="H9B6D05C95CF446BE924F2AFA689BBD47"><enum>(i)</enum><header display-inline="yes-display-inline">Reporting and discharge</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A331A7C602C4099BF0C3673E05DE3D3"><enum>(ii)</enum><header display-inline="yes-display-inline">Proceeding to consideration</header><text display-inline="yes-display-inline">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, for the majority leader 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 commented="no" display-inline="no-display-inline" id="HCE01612922D44C08B521EE91053C60A4"><enum>(iii)</enum><header display-inline="yes-display-inline">Consideration</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H540A41C592454CDB8A586BED3149B914"><enum>(C)</enum><header display-inline="yes-display-inline">Consideration in the senate</header>
<clause commented="no" display-inline="no-display-inline" id="H82BD61EE2B154C8185F5579708FDEC51"><enum>(i)</enum><header display-inline="yes-display-inline">Placement on calendar</header><text display-inline="yes-display-inline">Upon introduction in the Senate, the joint
resolution shall be placed immediately on the calendar.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD91A50DBC9444168AFF26A1E6B6A9470"><enum>(ii)</enum><header display-inline="yes-display-inline">Floor consideration</header>
<subclause commented="no" display-inline="no-display-inline" id="H36046E6505074CA0B78DE41A4E7DF813"><enum>(I)</enum><header display-inline="yes-display-inline">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 fourth day after the applicable date of introduction of the joint
resolution in the Senate and ending on the sixth 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>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H17FC7D8DD0EB4C5BAA87118C420FA531"><enum>(II)</enum><header display-inline="yes-display-inline">Debate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H764166DE8DDE4F8F88520D69EECDA6C0"><enum>(III)</enum><header display-inline="yes-display-inline">Vote on passage</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD3C24500BF24960948693AFEFFACC80"><enum>(IV)</enum><header display-inline="yes-display-inline">Rulings of the chair on
procedure</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA815761B41A3420F82AB81885FF8D1C6"><enum>(D)</enum><header display-inline="yes-display-inline">Rules relating to senate and house of
representatives</header>
<clause commented="no" display-inline="no-display-inline" id="HEDC6E4C7095D40568E7BF17515A92C3A"><enum>(i)</enum><header display-inline="yes-display-inline">Coordination with action by other
house</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H734D41D256C64DC3A9C200B9C612201D"><enum>(I)</enum><text display-inline="yes-display-inline">The joint resolution of the other House
shall not be referred to a committee.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H08672748A8EA4FA2AB7E612C1632DD8C"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H833281A54B6B4A728B8E3FC2C543872E"><enum>(ii)</enum><header display-inline="yes-display-inline">Treatment of companion
measures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E70BF3C32B94C60B90040D0F75928BB"><enum>(iii)</enum><header display-inline="yes-display-inline">Failure of joint resolution in the
senate</header>
<subclause commented="no" display-inline="no-display-inline" id="H17980A9F6CC4425AB03AD1581167E0AF"><enum>(I)</enum><text display-inline="yes-display-inline">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>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H622DDD0409C941948465E6BA7CE7BF77"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF26CEFC1444443CC8C44118D687DDAD1"><enum>(iv)</enum><header display-inline="yes-display-inline">Rules of house of representatives and
senate</header><text display-inline="yes-display-inline">This paragraph and the
preceding paragraphs are enacted by Congress—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2F994D2289AF4B82B342C26A505170BE"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H597E8F3953894D2DBDDB55684B92105A"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA7B0136DA4614EE7B53802C72EB12C65"><enum>(E)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this paragraph, the term <quote>joint
resolution</quote> means only a joint resolution—</text>
<clause commented="no" display-inline="no-display-inline" id="HEC381B4906DF402BA7CE5481BDD3C134"><enum>(i)</enum><text display-inline="yes-display-inline">which does not have a preamble;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8E9ED9428DEA4A959E641512BB22D378"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC180537AD76D4EC6BCDBECF0EA0C4A3A"><enum>(iii)</enum><text display-inline="yes-display-inline">the sole matter after the resolving clause
of which is as follows: <quote>That the Congress disapproves the use of
authority pursuant 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 commented="no" display-inline="no-display-inline" id="H0B443F5418B744998A3C904655FA666B"><enum>(F)</enum><header display-inline="yes-display-inline">Nonscoring of joint resolutions of
disapproval</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3318132F5B14458B8483069071DAE58D" section-type="subsequent-section"><enum>1702.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBCA6361837314E34B7D121B9F89A9ADC"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HDA0AE648C8994A4EA49737B1BF44DA28"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDFF33A2D66DE4F0D933288441694E245" section-type="subsequent-section"><enum>1703.</enum><header display-inline="yes-display-inline">Additional oversight of financial
regulatory system</header>
<subsection commented="no" display-inline="no-display-inline" id="HB2738B0626EA4015BEFB32F60D8A58F5"><enum>(a)</enum><header display-inline="yes-display-inline">Council of Inspectors General on Financial
Oversight</header>
<paragraph commented="no" display-inline="no-display-inline" id="H921F7EF543D24DE7A257940328470E6E"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment and membership</header><text display-inline="yes-display-inline">There is established a Council of
Inspectors General on Financial Oversight (in this section referred to as the
<quote>Council of Inspectors General</quote>) chaired by the Inspector General
of the Department of the Treasury and composed of the inspectors general of the
following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE564393B92A54CE685FACA6BE94C1DA7"><enum>(A)</enum><text display-inline="yes-display-inline">The Board of Governors of the Federal
Reserve System.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H08EFA5A7ADF8464BB23C565E0B8AA601"><enum>(B)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading
Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H08816B2449FB48F28E0281D87317E680"><enum>(C)</enum><text display-inline="yes-display-inline">The Department of Housing and Urban
Development.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H772465B05012470984AD58FCCFD19FCF"><enum>(D)</enum><text display-inline="yes-display-inline">The Department of the Treasury.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H125EA357821D438D98A1A3309B79E021"><enum>(E)</enum><text display-inline="yes-display-inline">The Federal Deposit Insurance
Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB2907D11FB64113896C331517E21298"><enum>(F)</enum><text display-inline="yes-display-inline">The Federal Housing Finance Agency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H921C16094D024E148BA39454F2DF9B21"><enum>(G)</enum><text display-inline="yes-display-inline">The National Credit Union
Administration.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B4574FAD57647C8AA174002EDE78AE7"><enum>(H)</enum><text display-inline="yes-display-inline">The Securities and Exchange
Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1AD5CDD17D9548ADA511A1BD6DC661D4"><enum>(I)</enum><text display-inline="yes-display-inline">The Troubled Asset Relief Program (until
the termination of the authority of the Special Inspector General for such
program under section 121(h) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5231(h))).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0338E76F052F4DEAA438774C19577411"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4B128802FBA6456093DB2927DD7FDF9F"><enum>(A)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">The Council of Inspectors General shall
meet not less than once each quarter, or more frequently if the chair considers
it appropriate, to facilitate the sharing of information among inspectors
general and to discuss the ongoing work of each inspector general who is a
member of the Council of Inspectors General, with a focus on concerns that may
apply to the broader financial sector and ways to improve financial
oversight.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFDFAAD116ACA46659E428E055C3C0DB7"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H97A59B2FD51D407D95A857FDADDAE4AE"><enum>(ii)</enum><text display-inline="yes-display-inline">a summary of the general observations of
the Council of Inspectors General based on the views expressed by each
inspector general as required by clause (i), with a focus on measures that
should be taken to improve financial oversight.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9A93E3A9C8D84B96B5EFADF87883746A"><enum>(3)</enum><header display-inline="yes-display-inline">Council of Inspectors General Working
Groups</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD202EB6B54ED44FD860AD992641FA4A4"><enum>(A)</enum><header display-inline="yes-display-inline">Working Groups to evaluate Oversight
Council</header>
<clause commented="no" display-inline="no-display-inline" id="H797962D1C50F4CD0A9670DB5E39EAD30"><enum>(i)</enum><header display-inline="yes-display-inline">Convening a Working Group</header><text display-inline="yes-display-inline">The Council of Inspectors General may, by
majority vote, convene a Council of Inspectors General Working Group to
evaluate the effectiveness and internal operations of the Oversight
Council.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBE8F9DC1494B44FD8E9965F743C8AFB9"><enum>(ii)</enum><header display-inline="yes-display-inline">Personnel and resources</header><text display-inline="yes-display-inline">The inspectors general who are members of
the Council of Inspectors General may detail staff and resources to a Council
of Inspectors General Working Group established under this subparagraph to
enable it to carry out its duties.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H296F2751FA1F4E78BEE91B6C4FB8D827"><enum>(iii)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">A Council of Inspectors General Working
Group established under this subparagraph shall submit regular reports to the
Oversight Council and to Congress on its evaluations pursuant to this
subparagraph.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4459B51F86EA45F8A497C4D383D7C0C7"><enum>(B)</enum><header display-inline="yes-display-inline">Working Groups for financial companies
undergoing resolution</header>
<clause commented="no" display-inline="no-display-inline" id="H0CF0303123314934A7951BEDBB0BFB7D"><enum>(i)</enum><header display-inline="yes-display-inline">Convening a Working Group</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H60C8510976434D89B77A32C7FB87707E"><enum>(ii)</enum><header display-inline="yes-display-inline">Personnel and resources</header><text display-inline="yes-display-inline">The inspectors general who are members of
the Council of Inspectors General may detail staff and resources to a Council
of Inspectors General Working Group established under this subparagraph to
enable it to carry out its duties.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB5F3A88262CB44BA9B4BECE75902087A"><enum>(iii)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H94024D3ACAC84C87A961772229C0C300"><enum>(I)</enum><text display-inline="yes-display-inline">the reasons for such financial company’s
failure;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB03E8634BC6545229D5231E9B0A2EC1B"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H64216C6A9C494F6485DABBDB73DB1307"><enum>(III)</enum><text display-inline="yes-display-inline">recommendations for preventing future
failures of financial companies.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCEA123B250F9408F897E150B7DF06915"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" id="H874F662B83734A6C923D0E174E1C53D9" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Miscellaneous</header>
<section commented="no" display-inline="no-display-inline" id="HEE420B8309894F6E89D9032F4BC53AE2" section-type="subsequent-section"><enum>1801.</enum><header display-inline="yes-display-inline">Inclusion of minorities and women;
Diversity in agency workforce</header>
<subsection commented="no" display-inline="no-display-inline" id="HD09880A51CD94B9D8FB38AAC62E11559"><enum>(a)</enum><header display-inline="yes-display-inline">Office of Minority and Women
Inclusion</header>
<paragraph commented="no" display-inline="no-display-inline" id="H005B017CD40F4816BB6D8A6EECB465D5"><enum>(1)</enum><header display-inline="yes-display-inline">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 (as such terms are defined in subsection (c)(1)), 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 commented="no" display-inline="no-display-inline" id="H074EB0F48FF144859A78FC2D9DE7AE87"><enum>(2)</enum><header display-inline="yes-display-inline">Consolidation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H48D332EFD1184F57860870AECCF051A9"><enum>(b)</enum><header display-inline="yes-display-inline">Director</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4FCF496EC294453996180B6DE24F6BC3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47977270DD924E8BA49510194537CA3E"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">Each Director shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H21E17A5EF2DD4AA9AA7812780E405247"><enum>(A)</enum><text display-inline="yes-display-inline">ensure equal employment opportunity and the
racial, ethnic and gender diversity of the agency’s workforce and senior
management;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB2D7F28FD94D46A1A2964D0E912D5AFB"><enum>(B)</enum><text display-inline="yes-display-inline">increase the participation of
minority-owned and women-owned businesses in the programs and contracts of the
agency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE4782B3D50384BB584C0E33AD95FA133"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF7A526978F524B388BFC88AB3B523394"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8DCFF59EC4FD497685CADB2950C43F97"><enum>(c)</enum><header display-inline="yes-display-inline">Inclusion in all levels of business
activities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA4D23943DBA345A58953A896D2678DF2"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1FBB9A82D5024736BC98218D22FCE2E1"><enum>(2)</enum><header display-inline="yes-display-inline">Contracts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCC0AEF2DB38849FCB5363E7ACC5473BC"><enum>(3)</enum><header display-inline="yes-display-inline">Written assurance</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD83125618BAA4343897379533C496183"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCDAE28563C6747E897E3B9682FA8B17B"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB743A6422834651AC8A1B947BC012B7"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0663D0CC5D6F40FBBCD310BBE7DD66B9"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3C4EFD86D7A44691A68DBEA06280965C"><enum>(2)</enum><text display-inline="yes-display-inline">the percentage of such amounts paid to
businesses described in subsection (c)(1);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H898C9270C78D4B2199E6EAEE66FEE73F"><enum>(3)</enum><text display-inline="yes-display-inline">the successes achieved and challenges faced
by the agency in operating minority and women outreach programs;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF5AE72FB18E4383A6CE8D415E93321D"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H20650B4A1D094D3F8A4566172223E626"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HABE7807845F541D99E7BB93422C5A560"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H34204D160C2448F8802DA8251A6C73DD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD7E68D5C9DC54AD6BFE567DAD5BF6853"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H89ACD9324CE5499084DDADDACF39E8CE"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC78A7F511804423FBE4B871D919078F3"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE834953E033A4400A610FCB37C6303CF"><enum>(5)</enum><text display-inline="yes-display-inline">such other mass media communications that
the Director determines are necessary.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2F793AA9226C4612ADF784B4FEA55BEE"><enum>(g)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5ECBEDD2077E4818BB6FE140D7783710"><enum>(1)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">The term “agency” means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA95F98878215417D888F13DE509F135B"><enum>(A)</enum><text display-inline="yes-display-inline">the Department of the Treasury;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED9F745885984F35BD7A393F31D5FD50"><enum>(B)</enum><text display-inline="yes-display-inline">the Federal Deposit Insurance
Corporation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4273C0495F2D49EF812A992D53CD8613"><enum>(C)</enum><text display-inline="yes-display-inline">the Federal Housing Finance Agency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H13BF23F0CF2847178ED4E02B4F2BF967"><enum>(D)</enum><text display-inline="yes-display-inline">each of the Federal reserve banks;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5ED3FFCD481440D9A3A5E69087E944E2"><enum>(E)</enum><text display-inline="yes-display-inline">the Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H200A4FAA87484E5B8B51AFB8F847EC85"><enum>(F)</enum><text display-inline="yes-display-inline">the National Credit Union
Administration;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5EEABE9EC0EE410A8F80E7353FAFA9E9"><enum>(G)</enum><text display-inline="yes-display-inline">the Office of the Comptroller of the
Currency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H549675C8B41F44B69F28D6BDC7027D44"><enum>(H)</enum><text display-inline="yes-display-inline">the Office of Thrift Supervision;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H905185EC55ED4106832DD4BE6570095D"><enum>(I)</enum><text display-inline="yes-display-inline">the Securities and Exchange
Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF9D0CABF9C9A4423B6A280265DA7EE25"><enum>(J)</enum><text display-inline="yes-display-inline">the Consumer Financial Protection Agency;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA469D93002D42989B23782DC3BB41C7"><enum>(K)</enum><text display-inline="yes-display-inline">the Federal Insurance Office,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">and any successors to such
entities.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC5025C05456342849EC0975A1F85B98B"><enum>(2)</enum><header display-inline="yes-display-inline">Agency administrator</header><text display-inline="yes-display-inline">The term <quote>agency
administrator</quote> means the head of an agency.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HFAFE8C4BF02647D7959E88B929C90645" section-type="subsequent-section"><enum>1802.</enum><header display-inline="yes-display-inline">Federal Housing Finance Agency advisory
role in FIEC</header><text display-inline="no-display-inline">After section
1007 of the Federal Financial Institutions Examination Council Act of 1987 (12
U.S.C. 3306) insert the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H17309B514F7540AF928DA55E5F9BF52E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HE0F99348DEB0461F98C1A63C2B390600" section-type="subsequent-section"><enum>1007A.</enum><header display-inline="yes-display-inline">Federal Housing Finance Agency advisory
role</header><text display-inline="no-display-inline">Whenever the Council
takes any actions with respect to issues that relate to the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation, or the
Federal home loan banks, the Federal Housing Finance Agency shall participate
in the Council’s proceedings in an advisory
role.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle commented="no" id="HE3065E515C1348B28D0630EA12C75619" level-type="subsequent"><enum>J</enum><header display-inline="yes-display-inline">International policy coordination</header>
<section commented="no" display-inline="no-display-inline" id="H4F69EB49CBBE48FCA4BA0AD356A0271D" section-type="subsequent-section"><enum>1901.</enum><header display-inline="yes-display-inline">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 commented="no" id="H2ACE83F26D9145B48EB3BBBA5517F1B4" level-type="subsequent"><enum>K</enum><header display-inline="yes-display-inline">International financial provisions</header>
<section commented="no" display-inline="no-display-inline" id="H2FE10021B6FB4A25A7EA2809AF290389" section-type="subsequent-section"><enum>1951.</enum><header display-inline="yes-display-inline">Access to United States financial market by
foreign institutions</header>
<subsection commented="no" display-inline="no-display-inline" id="H626C3521D4824414A07375F0A76C1915"><enum>(a)</enum><header display-inline="yes-display-inline">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 (12 U.S.C. 3105(d)(3)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6F194ED6E5E6414BBCF3FE1EE801CD52"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (C);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H707AFED4D36F434BB73965D20234D68E"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subparagraph (D) and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6C55415FB0D441D87DCE71D0BFFC68B"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HD9B33FE75AAE4D11AE228F04EFA4007B" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H73E73284D3C746B9A20EC72251A3B8F8"><enum>(E)</enum><text display-inline="yes-display-inline">for a foreign bank that presents a systemic
risk to the United States, 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 commented="no" display-inline="no-display-inline" id="HBA49BE8519C341A581D85FD0B74AC65D"><enum>(b)</enum><header display-inline="yes-display-inline">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 (12 U.S.C. 3105(e)(1)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBF96B84F8A85423997C41867AE63C8B0"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end of
subparagraph (A);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE351BBD4F5A43DCA61FCE72973BDB1F"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subparagraph (B) and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4127391EADBA4F3D8CBF52EA51AEA3E6"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (B), the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9BFFDED09A4F411D83531BD9D376795E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H56842F2A69B3448D8775570D3CE92B7B"><enum>(C)</enum><text display-inline="yes-display-inline">for a foreign bank that presents a systemic
risk to the United States, 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 commented="no" display-inline="no-display-inline" id="HA3B034D7514E4D1FB38AB141FD26B184"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA3FEFC893DD44A38F1B48BE313095D8"><enum>(k)</enum><header display-inline="yes-display-inline">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, 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 commented="no" display-inline="no-display-inline" id="H74529E48F67142D4BE61A1F7D109C88A"><enum>(l)</enum><header display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="H44E338AC106F4E6B8E97A11B753FE86B" section-type="subsequent-section"><enum>1952.</enum><header display-inline="yes-display-inline">Reducing TARP funds to offset
costs</header><text display-inline="no-display-inline">Section 115(a)(3) of the
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended
by striking <quote>$700,000,000,000, as such amount is reduced by
$1,259,000,000,, as such amount is reduced by $1,244,000,000, outstanding at
any one time</quote> and inserting <quote>$700,000,000,000, as such amount is
reduced by $23,625,000,000, outstanding at any one time</quote>.</text>
</section></subtitle><subtitle commented="no" id="H37C3B23792274CF8BE93C60F5C3B7A2B" level-type="subsequent"><enum>L</enum><header display-inline="yes-display-inline">Securities holding companies</header>
<section commented="no" display-inline="no-display-inline" id="HF262F1C183C745B8B036A96162A969C5" section-type="subsequent-section"><enum>1961.</enum><header display-inline="yes-display-inline">Securities holding companies</header>
<subsection commented="no" display-inline="no-display-inline" id="HA6A8C927AB2346D8862DAE5B3C4CE70F"><enum>(a)</enum><header display-inline="yes-display-inline">Supervision of a securities holding company
not having a bank or savings association affiliate</header>
<paragraph commented="no" display-inline="no-display-inline" id="H24AEBAF4DAD1455B840D2F1D9C50B87A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A securities holding company that is
required by a foreign regulator or foreign law to be subject to comprehensive
consolidated supervision and that is not—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA971964918634566B779F2E34C12E855"><enum>(A)</enum><text display-inline="yes-display-inline">a financial holding company subject to
stricter standards;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC30C32B8924F4750959628170E5B0303"><enum>(B)</enum><text display-inline="yes-display-inline">an affiliate of an insured bank (other than
an institution described in subparagraphs (D) or (G) of section 2(c)(2) of the
Bank Holding Company Act of 1956) or a savings association;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA91645A4590546CC9E87A07BA5760DEF"><enum>(C)</enum><text display-inline="yes-display-inline">a foreign bank, foreign company, or company
that is described in section 8(a) of the International Banking Act of
1978;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H89C35012A6024DC58B54AD9AFC337FD4"><enum>(D)</enum><text display-inline="yes-display-inline">a foreign bank that controls, directly or
indirectly, a corporation chartered under section 25A of the Federal Reserve
Act (12 U.S.C. 611 et seq.); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7CA3754850C746C58B3EDEBC19DF89B9"><enum>(E)</enum><text display-inline="yes-display-inline">subject to comprehensive consolidated
supervision by a foreign regulator,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">may register with the Board to become
supervised, pursuant to paragraph (2). Any securities holding company filing
such a registration shall be supervised in accordance with this section and
comply with the rules and orders prescribed by the Board applicable to
supervised securities holding companies.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H795B1E9607C9437EA950F290B013CA7E"><enum>(2)</enum><header display-inline="yes-display-inline">Registration as a supervised securities
holding company</header><text display-inline="yes-display-inline">A securities
holding company described in paragraph (1) shall register by filing with the
Board such information and documents concerning such securities holding company
as the Board, by regulation, may prescribe as necessary or appropriate in
furtherance of the purposes of this section. Such supervision shall become
effective 45 days after the date of receipt of such registration by the Board
or within such shorter time period as the Board, by rule or order, may
determine.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H596C7687E1B040F29D4472A7C5366AA1"><enum>(b)</enum><header display-inline="yes-display-inline">Supervision of securities holding
companies</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB31C990BFCC043598292BC9329630ABA"><enum>(1)</enum><header display-inline="yes-display-inline">Recordkeeping and reporting</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2614777B4556415EB6EF885EB803E891"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Every supervised securities holding company
and each affiliate of such company shall make and keep for prescribed periods
such records, furnish copies of records, and make such reports, as the Board
determines to be necessary or appropriate for the Board to carry out the
purposes of this section, prevent evasions, and monitor compliance by the
company or affiliate with applicable provisions of law.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H98BC53147CF4483F8F55D6821468DE96"><enum>(B)</enum><header display-inline="yes-display-inline">Form and contents</header><text display-inline="yes-display-inline">Such records and reports shall be prepared
in such form and according to such specifications (including certification by a
registered public accounting firm), as the Board may require and shall be
provided promptly at any time upon request by the Board. Such records and
reports may include—</text>
<clause commented="no" display-inline="no-display-inline" id="HDA2336828E754F74AB559EAA52FB463A"><enum>(i)</enum><text display-inline="yes-display-inline">a balance sheet and income
statement;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H99506AEFE48044E1A086C1851DCD4AE1"><enum>(ii)</enum><text display-inline="yes-display-inline">an assessment of the consolidated capital
of the supervised securities holding company;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H73CDFD350E464F7F8A64EC7596ECAAD0"><enum>(iii)</enum><text display-inline="yes-display-inline">an independent auditor’s report attesting
to the supervised securities holding company’s compliance with its internal
risk management and internal control objectives; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H45C0645CD8B44237849030FDCA47D5BA"><enum>(iv)</enum><text display-inline="yes-display-inline">reports concerning the extent to which the
company or affiliate has complied with the provisions of this section and any
regulations prescribed and orders issued under this section.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H52A493B5865F4A9DBBA28CE2CAFCD4EA"><enum>(2)</enum><header display-inline="yes-display-inline">Use of existing reports</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7DC31834594D437C8E497CD769391F96"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Board shall, to the fullest extent
possible, accept reports in fulfillment of the requirements under this
paragraph that the supervised securities holding company or its affiliates have
been required to provide to another appropriate regulatory agency or
self-regulatory organization.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4B3BA0E6C19C4B91B4E235BAE4319363"><enum>(B)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">A supervised securities holding company or
an affiliate of such company shall provide to the Board, at the request of the
Board, any report referred to in subparagraph (A), as permitted by law.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H537D45E289AB4DF78FFAD838688931B9"><enum>(3)</enum><header display-inline="yes-display-inline">Examination authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9BA3BF7FF2D0490E9FE3B9131ABD3381"><enum>(A)</enum><header display-inline="yes-display-inline">Focus of examination
authority</header><text display-inline="yes-display-inline">The Board may make
examinations of any supervised securities holding company and any affiliate of
such company to carry out the purposes of this subsection, prevent evasions
thereof, and monitor compliance by the company or affiliate with applicable
provisions of law.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9815A7683D7B4C6BA087C33C455CE897"><enum>(B)</enum><header display-inline="yes-display-inline">Deference to other
examinations</header><text display-inline="yes-display-inline">For purposes of
this subparagraph, the Board shall, to the fullest extent possible, use the
reports of examination made by other appropriate Federal or State regulatory
authorities with respect to any functionally regulated subsidiary, as defined
under section 5(c)(1) of the Bank Holding Company Act of 1956 (12 U.S.C.
1844(c)(1)), or an institution described in subparagraphs (D) or (G) of section
1841(c)(2).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H16C734DAF26F45A494B2ABA589C07E94"><enum>(c)</enum><header display-inline="yes-display-inline">Capital and risk management</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF7EC7F49B51E49F7AEFEF30216287DF5"><enum>(1)</enum><text display-inline="yes-display-inline">The Board shall, by regulation or order,
prescribe capital adequacy and other risk management standards for a supervised
securities holding company appropriate to protect the safety and soundness of
the company and address the risks posed to financial stability by a supervised
securities holding company. Standards imposed under this subparagraph shall
take account of differences among types of business activities and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H04EF65DEEEC7459D9CFD7AC773E6AF8D"><enum>(A)</enum><text display-inline="yes-display-inline">the amount and nature of the company’s
financial assets;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7F719F92BA1B4DA6975A8C5B68700335"><enum>(B)</enum><text display-inline="yes-display-inline">the amount and nature of the company’s
liabilities, including the degree of reliance on short-term funding;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H60E1C05324DB4A4C9F35E87FED3922CC"><enum>(C)</enum><text display-inline="yes-display-inline">the extent and nature of the company’s
off-balance sheet exposures;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B51530CDA9646C4880575D9BE1D1D97"><enum>(D)</enum><text display-inline="yes-display-inline">the extent and nature of the company’s
transactions and relationships with other financial companies;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEBF6E607578E45D19995A1F3A5E0ED3B"><enum>(E)</enum><text display-inline="yes-display-inline">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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE5CD358349D4612A6B1C0FD5F33EC38"><enum>(F)</enum><text display-inline="yes-display-inline">the nature, scope, and mix of the company’s
activities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6EC012EF5F65493AA1CBB533DA35BB8F"><enum>(2)</enum><text display-inline="yes-display-inline">In imposing standards under this
subsection, the Board may differentiate among supervised securities holding
companies on an individual basis or by category, taking into consideration the
criteria specified above.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H601588A9E43D466D85A321FF88224AAE"><enum>(3)</enum><text display-inline="yes-display-inline">Any capital requirements imposed under this
subsection shall not take effect until the expiration of 180 days after a
supervised securities holding company is provided notice of such
requirement.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70F1217AD62D4DD481EEC9ABB54121D2"><enum>(d)</enum><header display-inline="yes-display-inline">Other provisions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCC67E439517A41DF8F1EEB9D2C212ECA"><enum>(1)</enum><text display-inline="yes-display-inline">Subsections (b), (c) through (s), and (u)
of section 8 of the Federal Deposit Insurance Act shall apply to any supervised
securities holding company, and to any subsidiary (other than a bank) of a
supervised securities holding company, in the same manner as they apply to a
bank holding company. For purposes of applying such subsections to a supervised
securities holding company or a subsidiary (other than a bank) of a supervised
securities holding company, the Board shall be considered the appropriate
Federal banking agency for the supervised securities holding company or
subsidiary.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H330E50E332F9451D960CDE5ED34FC9DF"><enum>(2)</enum><text display-inline="yes-display-inline">Except as the Board may otherwise provide
by regulation or order, a supervised securities holding company shall be
subject to the provisions of the Bank Holding Company Act of 1956 (12 U.S.C.
1841 et seq.) in the same manner and to the same extent that bank holding
companies are subject to such provisions, except that any such supervised
securities holding company shall not by reason of this subparagraph be deemed a
bank holding company for purposes of section 4 of the Bank Holding Company Act
of 1956.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H79195AB13DEC4DD2A2791C01A95D05BD"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBE99749D91A14F7C853BDAC4F2D5FB2C"><enum>(1)</enum><header display-inline="yes-display-inline">Securities holding company</header><text display-inline="yes-display-inline">The term <quote>securities holding
company</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEB52671361284F31B364446A3DCC7699"><enum>(A)</enum><text display-inline="yes-display-inline">any person other than a natural person that
owns or controls one or more brokers or dealers as defined in section 3 of the
Securities Exchange Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H128EE16CC9EF4AFE9D4ACCF22A6E9B15"><enum>(B)</enum><text display-inline="yes-display-inline">the associated persons of the securities
holding company.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE551004998F84CA1A8B1A7BD15D372F0"><enum>(2)</enum><header display-inline="yes-display-inline">Supervised securities holding
company</header><text display-inline="yes-display-inline">The term
<quote>supervised securities holding company</quote> means any securities
holding company that is supervised by the Board pursuant to this
section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H12A576F70450464484BB24CB3DBC388A"><enum>(3)</enum><header display-inline="yes-display-inline">Other banking terms</header><text display-inline="yes-display-inline">The terms <quote>affiliate</quote>,
<quote>bank</quote>, <quote>bank holding company</quote>,
<quote>company</quote>, <quote>control</quote>, <quote>savings
association</quote>, and <quote>subsidiary</quote> have the same meanings as in
section 2 of the Bank Holding Company Act of 1956.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE711EF5F1230402DA04BB3C14BE9CA97"><enum>(4)</enum><header display-inline="yes-display-inline">Insured bank</header><text display-inline="yes-display-inline">The term <quote>insured bank</quote> has
the same meaning as in section 13 of the Federal Deposit Insurance Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04E24299B4994D2FB3D23C7C7EC8CFE3"><enum>(5)</enum><header display-inline="yes-display-inline">Foreign bank</header><text display-inline="yes-display-inline">The term <quote>foreign bank</quote> has
the same meaning as in section 1(b)(7) of the International Banking Act of
1978.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72EE3212493B40A09DA4EB14887AC3B9"><enum>(6)</enum><header display-inline="yes-display-inline">Associated persons</header><text display-inline="yes-display-inline">The terms <quote>person associated with a
securities holding company</quote> and <quote>associated person of a securities
holding company</quote> mean any person directly or indirectly controlling,
controlled by, or under common control with, a securities holding
company.</text>
</paragraph></subsection></section></subtitle><enum>II</enum><header display-inline="yes-display-inline">Corporate and Financial Institution
Compensation Fairness Act</header>
<section commented="no" display-inline="no-display-inline" id="H805FE062D6F64D8AB9C926BFAE9728E2" section-type="subsequent-section"><enum>2001.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF98C955904AB45B294C68FB6AFB31402" section-type="subsequent-section"><enum>2002.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H167B55E9A83F41C4A3C22BC00F70095F"><enum>(i)</enum><header display-inline="yes-display-inline">Annual shareholder approval of executive
compensation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H41D57F50B1D44086B2922D1F2470A481"><enum>(1)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2156FC489488485D973D3E8592B39D56"><enum>(2)</enum><header display-inline="yes-display-inline">Shareholder approval of golden parachute
compensation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1849CF41FA6B428EAFC247195BB7DF2E"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HEF62CB55A2DE47019CB08B43C6FBF79C"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H14FF26BEF7A74BC99035951BFFBD9AB4"><enum>(3)</enum><header display-inline="yes-display-inline">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 paragraph (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 commented="no" display-inline="no-display-inline" id="H4A5CE5DB4C46440BA4153DD5F213BC3B"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FEAB370465E4E5B994482DC12CEEC5A"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE09A495CC4044A1CA85277C5053C8DFA" section-type="subsequent-section"><enum>2003.</enum><header display-inline="yes-display-inline">Compensation committee
independence</header>
<subsection commented="no" display-inline="no-display-inline" id="HE09F7DF71A0B459EAAF9A277AD69C843"><enum>(a)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HC509A2A14A154E45B6AC8957F01F9D07" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HB06ED16C1BAC456AA3C1783538A7BE7E" section-type="subsequent-section"><enum>10B.</enum><header display-inline="yes-display-inline">Standards relating to compensation
committees</header>
<subsection commented="no" display-inline="no-display-inline" id="HC3913F5D557E49CF949A864CC823C2D0"><enum>(a)</enum><header display-inline="yes-display-inline">Commission rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1C921DE98C5149DC837FC9AA7BD15DA4"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9189A4C9CF10416DA5E4306D53392696"><enum>(2)</enum><header display-inline="yes-display-inline">Opportunity to cure defects</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H44A1CF40896C487EABE3C171410CEAD7"><enum>(3)</enum><header display-inline="yes-display-inline">Exemption authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H98D76A3A4EEA434B8313613DEF0A5B3A"><enum>(b)</enum><header display-inline="yes-display-inline">Independence of compensation
committees</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8D0F3916B6054ABBA8356B43BA2B5DD8"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H80C2DF2A45D942098D868E7A3E5B370E"><enum>(2)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE87753ACF8884EB891EBC5094973C650"><enum>(3)</enum><header display-inline="yes-display-inline">Exemption authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H82B5ADD4A6354B00A2B3F24327725448"><enum>(4)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">As used in this section, the term
<term>compensation committee</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H507C7AADE358410CAE45EB1D92381637"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD78771725ADC4220B3018532A1548666"><enum>(B)</enum><text display-inline="yes-display-inline">if no such committee exists with respect to
an issuer, the independent members of the entire board of directors.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC3548EB454FE4728855DD584FE5FA0AE"><enum>(c)</enum><header display-inline="yes-display-inline">Independence standards for compensation
consultants and other committee advisors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCF6AD3D6EDA6486E8678AD3BE5F1DDA5"><enum>(d)</enum><header display-inline="yes-display-inline">Compensation Committee authority relating
to compensation consultants</header>
<paragraph commented="no" display-inline="no-display-inline" id="H12EEB30BE36B409D9C7EB3E580BB105B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA5E1B8F1F854424D8F48E098056BF770"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0058424FF1A347028241AEB54B238B27"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0BADCCE880140CBBE16F195247173EE"><enum>(e)</enum><header display-inline="yes-display-inline">Authority To engage independent counsel and
other advisors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1579DD24F9CE4A7FACB5514DF2FEE4C0"><enum>(f)</enum><header display-inline="yes-display-inline">Funding</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6C1256DE73046D2BD95510261399BC1"><enum>(1)</enum><text display-inline="yes-display-inline">to any compensation consultant to the
compensation committee that meets the standards for independence promulgated
pursuant to subsection (c); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE561FC5EB734160A13CCEADA0832C8B"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0C8859BA74814E29B657A45EA0A32679"><enum>(b)</enum><header display-inline="yes-display-inline">Study and review required</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD6CA8683BA754DB9A0C64DD7A7EE93C9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HD387D57AD5B4421EB91DC6217588E002"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FE4C529152D421EAC266FE88B5BD015" section-type="subsequent-section"><enum>2004.</enum><header display-inline="yes-display-inline">Enhanced compensation structure reporting
to reduce perverse incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="H2D2A63D5C88D48689A2379976F7CB5B5"><enum>(a)</enum><header display-inline="yes-display-inline">Enhanced disclosure and reporting of
compensation arrangements</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBFA88DB4EC7749D9B32C0EAC40F7192B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H57E3B38A78A944A6842C3B7E4450DAF5"><enum>(A)</enum><text display-inline="yes-display-inline">is aligned with sound risk
management;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7708A77AD29E42C5BC6729E66828F69E"><enum>(B)</enum><text display-inline="yes-display-inline">is structured to account for the time
horizon of risks; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7AACBE66761F4F8FB0B60BFD043E599D"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFED3E477C6614C6980023DC9100D1DC9"><enum>(i)</enum><text display-inline="yes-display-inline">could threaten the safety and soundness of
covered financial institutions; or</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H06E556AE59B44E3E9D6D7916470720DF"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7E994827C5E416695FA2E2616B8B736"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92107ECC3B384FFCAEC2E1521A32A1CC"><enum>(1)</enum><text display-inline="yes-display-inline">could threaten the safety and soundness of
covered financial institutions; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD41BF9E84004602B7ADE6A9407F1762"><enum>(2)</enum><text display-inline="yes-display-inline">could have serious adverse effects on
economic conditions or financial stability.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H03BF1C08C7CB41B2A2ADA3A3A8163862"><enum>(c)</enum><header display-inline="yes-display-inline">Enforcement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H82F7D94F143542E19F408EBAAE0347FB"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H355B320FFEB44425B9290FFCC6023DC2"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>appropriate Federal
regulator</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEB8545B560C84ADCB80C89BB57278C2B"><enum>(A)</enum><text display-inline="yes-display-inline">the Board of Governors of the Federal
Reserve System;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F832F5AA15F480CB2318D48BB5EAECB"><enum>(B)</enum><text display-inline="yes-display-inline">the Office of the Comptroller of the
Currency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1C0626C1B33344F8886264442FC9F5E5"><enum>(C)</enum><text display-inline="yes-display-inline">the Board of Directors of the Federal
Deposit Insurance Corporation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2B27AD28D6924D84920F3DCC66578E7A"><enum>(D)</enum><text display-inline="yes-display-inline">the Director of the Office of Thrift
Supervision;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCC527A9F732E490FB7409318F00231AB"><enum>(E)</enum><text display-inline="yes-display-inline">the National Credit Union Administration
Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1E17C4E6A4E4A6B8320ACD681C9B508"><enum>(F)</enum><text display-inline="yes-display-inline">the Securities and Exchange Commission;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC8C4C1A950974E6D9B13024C8293DFD9"><enum>(G)</enum><text display-inline="yes-display-inline">the Federal Housing Finance Agency;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H873981030C344088A80A094535842998"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>covered financial
institution</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD3830144FE324339896DE1A7351547E3"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H17B90CB309B141C898E37D2198C850E9"><enum>(B)</enum><text display-inline="yes-display-inline">a broker-dealer registered under section 15
of the Securities Exchange Act of 1934 (15 U.S.C. 78o);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H56E9E2C0D68643579E954B9EBAB12ACD"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H65DEB22FE7D84852BDF7B5B8EBD1F704"><enum>(E)</enum><text display-inline="yes-display-inline">the Federal National Mortgage
Association;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H98512CA2EFCB47C8900D189E151596D2"><enum>(F)</enum><text display-inline="yes-display-inline">the Federal Home Loan Mortgage Corporation;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H291CDFC9AE124CEEBED8CE060C6D3C70"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5B3A36DC6643412F95387B2D1780C2A4"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H05A382B07529418190DC6A044A9A6E5B"><enum>(f)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H84B52803C7714283864C67DE710C7C28"><enum>(g)</enum><header display-inline="yes-display-inline">GAO Study</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA4B8D444A5A14AFF97F802178E8211B3"><enum>(1)</enum><header display-inline="yes-display-inline">Study required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9C8BAE364E3E4643A30028D9A926101F"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H477BB3C0AD5E4B829C841ED3A931F53C"><enum>(B)</enum><header display-inline="yes-display-inline">Factors to consider</header><text display-inline="yes-display-inline">In carrying out the study required under
subparagraph (A), the Comptroller General shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H6615956692A64C6882BAF07926892FC6"><enum>(i)</enum><text display-inline="yes-display-inline">consider compensation structures used by
companies from 2000 to 2008; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEE22A3E5C0944F52A6FFB5B1EEE2D548"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H768F6BE9C6C94A8EBC3EDE6A7F8DEBA0"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H049A80D028834F97BAE231EC1C0DDB43"><enum>(i)</enum><text display-inline="yes-display-inline">companies that received exceptional
assistance under the Troubled Asset Relief Program under title I of the
Emergency Economic Stabilization Act of 2008 (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 commented="no" display-inline="no-display-inline" id="H26D2D1C9AFFD481B993233D2E142AC81"><enum>(ii)</enum><text display-inline="yes-display-inline">the Federal National Mortgage
Association;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5D3AE8CFB6214976991DC6D333057476"><enum>(iii)</enum><text display-inline="yes-display-inline">the Federal Home Loan Mortgage Corporation;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H35403AC999284A70AD2F81FCFBF4CF47"><enum>(iv)</enum><text display-inline="yes-display-inline">companies that participated in the Security
and Exchange Commission’s Consolidated Supervised Entities Program as of
January 2008.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB9C6ED647F4F42C6AB9ACF8CFCCB1CC8"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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 display-inline="yes-display-inline">Derivative Markets Transparency and
Accountability Act</header>
<section commented="no" display-inline="no-display-inline" id="H88585158CE59456A9CECF2BE51FA7E74" section-type="subsequent-section"><enum>3001.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This title may be cited as the
<quote><short-title>Derivative Markets Transparency and
Accountability Act of 2009</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HEEC855D9C26149468A5F57E6BDE31B5F" section-type="subsequent-section"><enum>3002.</enum><header display-inline="yes-display-inline">Review of regulatory authority</header>
<subsection commented="no" display-inline="no-display-inline" id="HCE0673D030E74A9B9857588DDB7781A7"><enum>(a)</enum><header display-inline="yes-display-inline">Consultation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFFD22842FFA44EDDA2791DB9B3F1A28D"><enum>(1)</enum><header display-inline="yes-display-inline">CFTC</header><text display-inline="yes-display-inline">Before commencing any rulemaking or issuing
an order regarding swaps, swap dealers, major swap participants, swap
repositories, persons associated with a swap dealer or major swap participant,
eligible contract participants, or swap execution facilities pursuant to
subtitle A, the Commodity Futures Trading Commission shall consult with the
Securities and Exchange Commission and the Prudential Regulators.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD116C3BEBEA647299AC806D4F415F135"><enum>(2)</enum><header display-inline="yes-display-inline">SEC</header><text display-inline="yes-display-inline">Before commencing any rulemaking or issuing
an order regarding security-based swaps, security-based swap dealers, major
security-based swap participants, security-based swap repositories, persons
associated with a security-based swap dealer or major security-based swap
participant, eligible contract participants with regard to security-based
swaps, or swap execution facilities pursuant to subtitle B, the Securities and
Exchange Commission shall consult with the Commodity Futures Trading Commission
and the Prudential Regulators.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2A8A51FC318A491DB54441F15FE0B974"><enum>(3)</enum><text display-inline="yes-display-inline">In developing and promulgating rules or
orders pursuant to this subsection, the Commodity Futures Trading Commission
and the Securities and Exchange Commission shall consider each other’s views
and the views of the Prudential Regulators.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3BBE9AA7E7EF4A7EACBBE1AA1D65513D"><enum>(4)</enum><text display-inline="yes-display-inline">In adopting a rule or order described in
paragraph (1) or (2), the Commodity Futures Trading Commission and the
Securities and Exchange Commission shall treat functionally or economically
similar products or entities similarly.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4AACA5191F5F4CEFB2A26DC76E4260BC"><enum>(5)</enum><text display-inline="yes-display-inline">Paragraph (4) shall not be construed to
require the Commodity Futures Trading Commission or the Securities Exchange
Commission to adopt a rule or order that treats functionally or economically
similar products or entities identically.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD8AFDDA26AD048A78919393FE067B67A"><enum>(b)</enum><header display-inline="yes-display-inline">Limitation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H56747654ACE6409C95FFF10BA0057945"><enum>(1)</enum><header display-inline="yes-display-inline">CFTC</header><text display-inline="yes-display-inline">Nothing in this title, unless specifically
provided, shall be construed to confer jurisdiction on the Commodity Futures
Trading Commission to issue a rule, regulation, or order providing for
oversight or regulation of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF68ED3A05DA54F92AEB233A192D6978C"><enum>(A)</enum><text display-inline="yes-display-inline">security-based swaps; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8420C1F2000A4F68BBB905359D1FE3A8"><enum>(B)</enum><text display-inline="yes-display-inline">with regard to their activities or
functions concerning security-based swaps—</text>
<clause commented="no" display-inline="no-display-inline" id="HA65B0C781070430692690A45EED9123C"><enum>(i)</enum><text display-inline="yes-display-inline">security-based swap dealers;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H82F9A978A44746DBB5DFBEA8F93EA889"><enum>(ii)</enum><text display-inline="yes-display-inline">major security-based swap
participants;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3AC552BDE20648B19F41E8D4767AFDE4"><enum>(iii)</enum><text display-inline="yes-display-inline">security-based swap repositories;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB703EBE76CE94437B4B44173832B8E38"><enum>(iv)</enum><text display-inline="yes-display-inline">persons associated with a security-based
swap dealer or major security-based swap participant;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9EC0E8FE2E544DE3B97BA883D370B6A1"><enum>(v)</enum><text display-inline="yes-display-inline">eligible contract participants with respect
to security-based swaps; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFCA45C886A074498A0AAFE9DAFF3C416"><enum>(vi)</enum><text display-inline="yes-display-inline">swap execution facilities.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8CDB17D4AE44FDD92D28B404EF034DE"><enum>(2)</enum><header display-inline="yes-display-inline">SEC</header><text display-inline="yes-display-inline">Nothing in this title, unless specifically
provided, shall be construed to confer jurisdiction on the Securities and
Exchange Commission to issue a rule, regulation, or order providing for
oversight or regulation of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H96D29B7226384D9998397BCE325A566C"><enum>(A)</enum><text display-inline="yes-display-inline">swaps; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8732F20CE73E4C3B93F0AE28A07E4D52"><enum>(B)</enum><text display-inline="yes-display-inline">with regard to their activities or
functions concerning swaps—</text>
<clause commented="no" display-inline="no-display-inline" id="H6A81C28FA0BB4F959D5D74E8EACC95AE"><enum>(i)</enum><text display-inline="yes-display-inline">swap dealers;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB09733EEE3C14D7DB5055C40C7E2065D"><enum>(ii)</enum><text display-inline="yes-display-inline">major swap participants;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H263F7297D69B4CDCB4E413CE6CA704DB"><enum>(iii)</enum><text display-inline="yes-display-inline">swap repositories;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H86E86150DF434683BB6649F6C36E602F"><enum>(iv)</enum><text display-inline="yes-display-inline">persons associated with a swap dealer or
major swap participant;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1C69CF1112814003A57FFD8C643DD165"><enum>(v)</enum><text display-inline="yes-display-inline">eligible contract participants with respect
to swaps; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6E52E60B3DB14177BA422C123A535A0E"><enum>(vi)</enum><text display-inline="yes-display-inline">swap execution facilities.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H592B0D402CD94847814362ACED566E7E"><enum>(c)</enum><header display-inline="yes-display-inline">Objection to commission regulation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H17D1BA4D83EF448AAB5DDD1B8AC4F8C3"><enum>(1)</enum><header display-inline="yes-display-inline">Filing of petition for review</header><text display-inline="yes-display-inline">If either Commission referred to in this
section believes that a final rule, regulation, or order of the other such
Commission conflicts with subsection (a)(4) or (b), then the complaining
Commission may obtain review thereof in the United States Court of Appeals for
the District of Columbia Circuit by filing in the court, not later than 60 days
after the date of publication of the final rule, regulation, or order, a
written petition requesting that the rule, regulation, or order be set aside.
Any such proceeding shall be expedited by the Court of Appeals.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF356981FAA304B62894BDCA7C201FEFF"><enum>(2)</enum><header display-inline="yes-display-inline">Transmittal of petition and
record</header><text display-inline="yes-display-inline">A copy of a petition
described in paragraph (1) shall be transmitted not later than 1 business day
after filing by the complaining Commission to the Secretary of the responding
Commission. On receipt of the petition, the responding Commission shall file
with the court a copy of the rule, regulation, or order under review and any
documents referred to therein, and any other materials prescribed by the
court.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3DA1BF92395A4BA08364BA5993621B06"><enum>(3)</enum><header display-inline="yes-display-inline">Standard of review</header><text display-inline="yes-display-inline">The court, giving deference to the views of
neither Commission, shall determine to affirm or set aside a rule, regulation,
or order of the responding Commission under this subsection, based on the
determination of the court, as to whether the rule, regulation, or order is in
conflict with subsection (a)(4) or (b), as applicable.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H962AE2BD955F435D9EFD8E1FC7AD8D0E"><enum>(4)</enum><header display-inline="yes-display-inline">Judicial stay</header><text display-inline="yes-display-inline">The filing of a petition by the complaining
Commission pursuant to paragraph (1) shall operate as a stay of the rule,
regulation, or order, until the date on which the determination of the court is
final (including any appeal of the determination).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H66D93B79944C4B148695DC140B00F2DD"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section, the terms <term>Prudential
Regulators</term>, <term>swap</term>, <term>swap dealer</term>, <term>major
swap participant</term>, <term>swap repository</term>, <term>person associated
with a swap dealer or major swap participant</term>, <term>eligible contract
participant</term>, <term>swap execution facility</term>, <term>security-based
swap</term>, <term>security-based swap dealer</term>, <term>major
security-based swap participant</term>, <term>security-based swap
repository</term>, and <term>person associated with a security-based swap
dealer or major security-based swap participant</term> shall have the meanings
provided, respectively, in the Commodity Exchange Act, including any
modification of the meanings under section 3101(b) of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBD88447A308F46098286DC42A8205B2B"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HCDA649E0D3584FCABFE017593F016C89"><enum>(1)</enum><text display-inline="yes-display-inline">Notwithstanding subsections (b) and (c),
the Commodity Futures Trading Commission and the Securities Exchange Commission
shall jointly adopt rules to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE10C6C87832C49BEB818CE4CAE17122F" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">define the terms <term>security-based swap
agreement</term> in section 3(a)(76) of the Securities Exchange Act of 1934 and
<quote>swap</quote> in section 1a(35)(A)(v) of the Commodity Exchange
Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H651529250ED6415AB0AADA25235F9158" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">require the maintenance of records of all
activities related to transactions defined in subparagraph (A) that are not
cleared; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCFF69383408645D3B2E4F50C5721B6B8" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">make available to the Securities and
Exchange Commission information relating to transactions defined in
subparagraph (A) that are uncleared.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H288FD3C84125452AAE4CAF9827C1C8F5" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">In the event that the Commodity Futures
Trading Commission and the Securities Exchange Commission fail to jointly
prescribe rules pursuant to paragraph (1) in a timely manner, at the request of
either Commission, the Financial Services Oversight Council shall resolve the
dispute—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H19856849A9594B0394508B29C049DE28"><enum>(A)</enum><text display-inline="yes-display-inline">within a reasonable time after receiving
the request;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4CF8230A153348508CF9DC1B4E3F73B2"><enum>(B)</enum><text display-inline="yes-display-inline">after consideration of relevant information
provided by each Commission; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H66FBEE61E77C479DB425B1FE2BCD501C"><enum>(C)</enum><text display-inline="yes-display-inline">by agreeing with one of the Commissions
regarding the entirety of the matter or by determining a compromise
position.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H35B37602592B4425961A6D5C1F9D88F0" section-type="subsequent-section"><enum>3003.</enum><header display-inline="yes-display-inline">International harmonization</header>
<subsection commented="no" display-inline="no-display-inline" id="HF5D0F8BDDD8F41F3A35A8FB92C7AE2E1"><enum>(a)</enum><text display-inline="yes-display-inline">In order to promote effective and
consistent global regulation of contracts of sale of swaps and security-based
swaps, the Commodity Futures Trading Commission, the Securities and Exchange
Commission, and the Prudential Regulators (as defined in section 1a(42) of the
Commodity Exchange Act), as appropriate, shall consult and coordinate with
foreign regulatory authorities on the establishment of consistent international
standards with respect to the regulation of contracts of sale of swaps and
security-based 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, swap counterparties, and security-based swap
counterparties.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAA6F0C26CCE344E0B06211871D2152D8"><enum>(b)</enum><text display-inline="yes-display-inline">In order to promote effective and
consistent global regulation of contracts of sale of a commodity for future
delivery, the Commodity Futures Trading Commission shall consult and coordinate
with foreign regulatory authorities on the establishment of consistent
international standards with respect to the regulation of contracts of sale of
a commodity for future delivery, and may agree to such information-sharing
arrangements as may be deemed necessary or appropriate in the public interest
for the protection users of contracts of sale of a commodity for future
delivery.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HCD25220241C249E6AB542C9108AA6A8A" section-type="subsequent-section"><enum>3004.</enum><header display-inline="yes-display-inline">Prohibition against government
assistance</header>
<subsection commented="no" display-inline="no-display-inline" id="H0F8650ECE4144560B3DED5035F811A36"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No provision of this title shall be
construed to authorize Federal assistance to support clearing operations or
liquidation of a derivatives clearing organization described in the Commodity
Exchange Act or a clearing agency described in the Securities Exchange Act of
1934, except where explicitly authorized by an Act of Congress.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9828BD5E34B445D697FF7B154692B2A6"><enum>(b)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For the purposes of this section, the term
<term>Federal assistance</term> means the use of public funds for the purposes
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA89C95B4144F437F9975783A7054B236"><enum>(1)</enum><text display-inline="yes-display-inline">making loans to, or purchasing any debt
obligation of, a derivatives clearing organization, a clearing agency, or a
subsidiary of either;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFF5247375E52411F928BA4511C792C36"><enum>(2)</enum><text display-inline="yes-display-inline">purchasing assets of a derivatives clearing
organization, a clearing agency, or a subsidiary of either;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11679DF622E244B5A08DD333D365578E"><enum>(3)</enum><text display-inline="yes-display-inline">assuming or guaranteeing the obligations of
a derivatives clearing organization, a clearing agency, or a subsidiary of
either; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CDA0DC7642A483D9B241297B10E614B"><enum>(4)</enum><text display-inline="yes-display-inline">acquiring any type of equity interest or
security of a derivatives clearing organization, a clearing agency, or a
subsidiary of either.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HCBED58B3992641158E366163D370CF3E" section-type="subsequent-section"><enum>3005.</enum><header display-inline="yes-display-inline">Studies</header>
<subsection commented="no" display-inline="no-display-inline" id="H513DC0B5AB5B4EFEABBB59CAA42E1B7F"><enum>(a)</enum><header display-inline="yes-display-inline">Study on effects of position limits on
trading on exchanges in the United States</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD5CA4E85774946DB8929CF40F3B61434"><enum>(1)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Commodity Futures Trading Commission,
in consultation with each entity that is a designated contract market under the
Commodity Exchange Act, shall conduct a study of the effects (if any) of the
position limits imposed pursuant to the other provisions of this title on
excessive speculation and on the movement of transactions from exchanges in the
United States to trading venues outside the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7BDCD9CCF0F4F7DB3976BBD0C4458C8"><enum>(2)</enum><header display-inline="yes-display-inline">Report to the Congress</header><text display-inline="yes-display-inline">Within 12 months after the imposition of
position limits pursuant to the other provisions of this title, the Commodity
Futures Trading Commission, in consultation with each entity that is a
designated contract market under the Commodity Exchange Act, shall submit to
the Congress a report on the matters described in paragraph (1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA6863C3177B343C8A7C8585116946E7E"><enum>(3)</enum><text display-inline="yes-display-inline">Within 30 legislative days after the
submission to the Congress of the report described in paragraph (2), the
Committee on Agriculture of the House of Representatives shall hold a hearing
examining the findings of the report.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6273375933AD4442B87C3E19E71B5952"><enum>(4)</enum><text display-inline="yes-display-inline">In addition to the study required in
paragraph (1), the Chairman of the Commodity Futures Trading Commission shall
prepare and submit to the Congress biennial reports on the growth or decline of
the derivatives markets in the United States and abroad, which shall include
assessments of the causes of any such growth or decline, the effectiveness of
regulatory regimes in managing systemic risk, a comparison of the costs of
compliance at the time of the report for market participants subject to
regulation by the United States with the costs of compliance in December 2008
for the market participants, and the quality of the available data. In
preparing the report, the Chairman shall solicit the views of, consult with,
and address the concerns raised by, market participants, regulators,
legislators, and other interested parties.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H47D0C9A24AE8430CBD688F412791B7BE"><enum>(b)</enum><header display-inline="yes-display-inline">Study on feasibility of requiring use of
standardized algorithmic descriptions for financial derivatives</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1D8480CEAF964A4AACF5DCE9B831CAF3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Securities and Exchange Commission and
the Commodity Futures Trading Commission shall conduct a joint study of the
feasibility of requiring the derivatives industry to adopt standardized
computer-readable algorithmic descriptions which may be used to describe
complex and standardized financial derivatives.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56E791E9C2A246539FA017C2EBA2C6D2"><enum>(2)</enum><header display-inline="yes-display-inline">Goals</header><text display-inline="yes-display-inline">The algorithmic descriptions defined in the
study shall be designed to facilitate computerized analysis of individual
derivative contracts and to calculate net exposures to complex derivatives. The
algorithmic descriptions shall be optimized for simultaneous use by:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H17EAFBA2FD8B479F8738310410CDC717"><enum>(A)</enum><text display-inline="yes-display-inline">commercial users and traders of
derivatives;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFE3E77270424FDD9749EF607DA9C5E0"><enum>(B)</enum><text display-inline="yes-display-inline">derivative clearing houses, exchanges and
electronic trading platforms;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H02BDEC794F814CF6BAE12DFE2B55F568"><enum>(C)</enum><text display-inline="yes-display-inline">trade repositories and regulator
investigations of market activities; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D50335B8F304CA583F60C3CDEAF79F5"><enum>(D)</enum><text display-inline="yes-display-inline">systemic risk regulators.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The study will also examine the
extent to which the algorithmic description, together with standardized and
extensible legal definitions, may serve as the binding legal definition of
derivative contracts. The study will examine the logistics of possible
implementations of standardized algorithmic descriptions for derivatives
contracts. The study shall be limited to electronic formats for exchange of
derivative contract descriptions and will not contemplate disclosure of
proprietary valuation models.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H85F74AACB1E541C1961917F8F74EE8D5"><enum>(3)</enum><header display-inline="yes-display-inline">International coordination</header><text display-inline="yes-display-inline">In conducting the study, the Securities and
Exchange Commission and the Commodity Futures Trading Commission shall
coordinate the study with international financial institutions and regulators
as appropriate and practical.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H909825FA9E5F4B89BBDEBE9221ECBBBA"><enum>(4)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Within 8 months after the date of the
enactment of this Act, the Securities and Exchange Commission and the Commodity
Futures Trading Commission shall jointly submit to the Committees on
Agriculture and on Financial Services of the House of Representatives and the
Committees on Agriculture, Nutrition, and Forestry and on Banking, Housing, and
Urban Affairs of the Senate a written report which contains the results of the
study required by paragraphs (1) through (3).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB87FD667AD4343F983E7DF0ED53B4D70"><enum>(c)</enum><header display-inline="yes-display-inline">Study of desirability and feasibility of
establishing single regulator for all transactions involving financial
derivatives</header>
<paragraph commented="no" display-inline="no-display-inline" id="H631FCBEF636645DFB0E4FAD208F39C84"><enum>(1)</enum><header display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA4DE292D88D42379CA219C06324AF07"><enum>(2)</enum><header display-inline="yes-display-inline">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 paragraph (1).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB1A6627AA9474C34B7CE633E0919BD59" section-type="subsequent-section"><enum>3006.</enum><header display-inline="yes-display-inline">Recommendations for changes to insolvency
laws</header><text display-inline="no-display-inline">Not later than 180 days
after the date of the enactment of this Act, 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 3111 of this Act) shall transmit to Congress recommendations for
legislative changes to the Federal insolvency laws—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC9FF965D12FF40959FEA63A74B85C7FF"><enum>(1)</enum><text display-inline="yes-display-inline">in order to enhance the legal certainty
with respect to swap participants clearing non-proprietary swap positions with
a swap clearinghouse, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5083168C92A4766B10E448BD543F7B0"><enum>(A)</enum><text display-inline="yes-display-inline">customer rights to recover margin deposits
or custodial property held at or through an insolvent swap clearinghouse, or
clearing participant; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53EC3854718144DAB1D07AE2ED3352ED"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H912B1328B30C4600A8174FE8ABF403F9"><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 commented="no" display-inline="no-display-inline" id="HA5E44C3F9AA74A2AAEAAA74896E0B808"><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 commented="no" display-inline="no-display-inline" id="H88E7B71481114C7093271F6B1BFE1F7A" section-type="subsequent-section"><enum>3007.</enum><header display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="HBF0440C5DE044AAC8979DDDF56B1348B" section-type="subsequent-section"><enum>3008.</enum><header display-inline="yes-display-inline">Authority to prohibit participation in swap
activities</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 United States 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 commented="no" display-inline="no-display-inline" id="HC79EE038BDE64AB0BE2193C6F3D062AF" section-type="subsequent-section"><enum>3009.</enum><header display-inline="yes-display-inline">Memorandum</header>
<subsection commented="no" display-inline="no-display-inline" id="H8F3A8D7E9E344BC48D121EE613D5EF22"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H4D3AE5A0CECB4707BC91C5203C30667D"><enum>(1)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
and the Federal Energy Regulatory Commission shall, not later than 180 days
after the date of the enactment of this section, negotiate a memorandum of
understanding to establish procedures for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC7E2F0B28A274D17BFE2FDFAEF1BDA1A" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">applying their respective authorities in a
manner so as to ensure effective and efficient regulation in the public
interest;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H54337CDA06B24B86BAC83FE6463E9DD3" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">resolving conflicts concerning overlapping
jurisdiction between the two agencies; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF9BE22F3E2940D5A3E3A81E847E7E34" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">avoiding, to the extent possible,
conflicting or duplicative regulation.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H241D0123220F4E8784BC5A71C813FD43" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Such memorandum and any subsequent
amendments to the memorandum shall be promptly submitted to the appropriate
committees of Congress.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H819FF3222E8143999E81FAEDF0617BF1"><enum>(b)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
and the Federal Energy Regulatory Commission shall, not later than 180 days
after the date of the enactment of this section, negotiate a memorandum of
understanding to share information that may be requested where either
Commission is conducting an investigation into potential manipulation, fraud,
or market power abuse in markets subject to such Commission’s regulation or
oversight. Shared information shall remain subject to the same restrictions on
disclosure applicable to the Commission initially holding the
information.</text>
</subsection></section><subtitle commented="no" id="H63A477D36A8C40878783DFAA0495B74B" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Regulation of Swap Markets</header>
<section commented="no" display-inline="no-display-inline" id="H6EB314D83E75400CAD3329F8927AE825" section-type="subsequent-section"><enum>3101.</enum><header display-inline="yes-display-inline">Definitions</header>
<subsection commented="no" display-inline="no-display-inline" id="H50529562B4E147A5B79BE3E18E2C1A3C"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to definitions in the commodity
exchange act</header><text display-inline="yes-display-inline">Section 1a of
the Commodity Exchange Act (7 U.S.C. 1a) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA1196679BDA84BF2AB0BB7E63FC1E445"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (12)(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6355C12C467D4E4F8DFC3EA398AD23D4"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (vii)(III), by striking
<quote>$25,000,000</quote> and inserting <quote>$50,000,000</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77596222429B4FFAA2AAEB47FE198ACC"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (xi), by striking <quote>total
assets in an amount</quote> and inserting <quote>amounts invested on a
discretionary basis</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3618AE4DE9E64A00BD2D46B8FB177FC4"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (29)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB7C53BE37FF549529B90A43F0C0F200E"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking
<quote>and</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H09C3116CAF0449438DD238F30F9B5C1D"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (E) as
subparagraph (G); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB501D08A96548C4AA4783EA0B710F9B"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (D) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H00DA67270C6A4CDFA8EF8A01DF360606" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE502AA124E9C4C05A490462374D91507"><enum>(E)</enum><text display-inline="yes-display-inline">a swap execution facility registered under
section 5h;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H627CF94ADBE74C13AA41B7D2B2C94BD0"><enum>(F)</enum><text display-inline="yes-display-inline">a swap repository;
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2976F5A6011D4D17964F62E1FA80A910"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A5829096F8242A7850E1E208BD4DF83" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H197EFCA1BDD74BBCB6AA480C9CA9CAD8"><enum>(35)</enum><header display-inline="yes-display-inline">Swap</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H72F76A8F28924F42A6921C6E86326DDE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
term <term>swap</term> means any agreement, contract, or transaction
that—</text>
<clause commented="no" display-inline="no-display-inline" id="HEE9BCDB32A4C47068881C2BA620618E0"><enum>(i)</enum><text display-inline="yes-display-inline">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, 1 or more interest or other rates, currencies, commodities, securities,
instruments of indebtedness, indices, quantitative measures, or other financial
or economic interests or property of any kind;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3618A5387B6C41EDBAEB3BD33BAE095B"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2367F3D814F44C71A98478CC040460E8"><enum>(iii)</enum><text display-inline="yes-display-inline">provides on an executory basis for the
exchange, on a fixed or contingent basis, of 1 or more payments based on the
value or level of 1 or more interest or other rates, currencies, commodities,
securities, instruments of indebtedness, indices, quantitative measures, or
other financial or economic interests or property of any kind, or any interest
therein or based on the value thereof, and that transfers, as between the
parties to the transaction, in whole or in part, the financial risk associated
with a future change in any such value or level without also conveying a
current or future direct or indirect ownership interest in an asset (including
any enterprise or investment pool) or liability that incorporates the financial
risk so transferred, and includes 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 commented="no" display-inline="no-display-inline" id="HD4326A27729E4438A0B9D5BDEB9F9774"><enum>(iv)</enum><text display-inline="yes-display-inline">is, or in the future becomes, commonly
known to the trade as a swap;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF526147A694A4895966C104B596E2870"><enum>(v)</enum><text display-inline="yes-display-inline">meets the definition of <quote>swap
agreement</quote> as defined in section 206A of the Gramm-Leach-Bliley Act of
which a material term of which is based on the price, yield, value, or
volatility of any security or any group or index of securities, or any interest
therein; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5EEFC54EB93E49118BD2C59D58BD08C9"><enum>(vi)</enum><text display-inline="yes-display-inline">is any combination or permutation of, or
option on, any agreement, contract, or transaction described in any of clauses
(i) through (v).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF7FE1FFBEF5E41BEB28FFBBDC405DED3"><enum>(B)</enum><header display-inline="yes-display-inline">Exclusions</header><text display-inline="yes-display-inline">The term <term>swap</term> does not
include—</text>
<clause commented="no" display-inline="no-display-inline" id="H279900AE4CE04E55B11B975C2147167F"><enum>(i)</enum><text display-inline="yes-display-inline">any contract of sale of a commodity for
future delivery (or any option on such a contract) 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 commented="no" display-inline="no-display-inline" id="H23A7799EDEF14C58A21D08996D1378F1"><enum>(ii)</enum><text display-inline="yes-display-inline">any sale of a nonfinancial commodity or
security for deferred shipment or delivery, so long as the transaction is
intended to be physically settled;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF0F3FAD9691F4A57BC321B41509C2976"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0393450D053F41D1B7A9339B61771C3A"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3A488E0A511544768DE31388A32914F8"><enum>(v)</enum><text display-inline="yes-display-inline">any agreement, contract, or transaction
providing for the purchase or sale of 1 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 commented="no" display-inline="no-display-inline" id="H5CB6AF6C06BA4F47AA0166E91CD91507"><enum>(vi)</enum><text display-inline="yes-display-inline">any agreement, contract, or transaction
providing for the purchase or sale of 1 or more securities on a contingent
basis that is subject to the Securities Act of 1933 (15 U.S.C. 77a et seq.) and
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), unless the
agreement, contract, or transaction predicates the purchase or sale on the
occurrence of a bona fide contingency that might reasonably be expected to
affect or be affected by the creditworthiness of a party other than a party to
the agreement, contract, or transaction;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H60AB99AAC10248DBB129D0421F5B60C5"><enum>(vii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4895B3D8CAB540F4AF2D3AF495A4A981"><enum>(viii)</enum><text display-inline="yes-display-inline">any agreement, contract, or transaction
that is—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA81AB9AE715B40D6BCA4A8CC80C0FC61"><enum>(I)</enum><text display-inline="yes-display-inline">based on a security; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF8A99A19C76340F7A9C9B76895A89084"><enum>(II)</enum><text display-inline="yes-display-inline">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 the security for the purposes of raising
capital, unless the agreement, contract, or transaction is entered into to
manage a risk associated with capital-raising;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H5A7F20EDE30149C99745245DAC431E8A"><enum>(ix)</enum><text display-inline="yes-display-inline">any foreign exchange forward;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H906889FC33F0467D821277CBF79A49CC"><enum>(x)</enum><text display-inline="yes-display-inline">any foreign exchange swap;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD48DE51A35684DBB9DF24808240AF644"><enum>(xi)</enum><text display-inline="yes-display-inline">any agreement, contract, or transaction a
counterparty of which is a Federal Reserve bank, 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 commented="no" display-inline="no-display-inline" id="H5443071D68DD42C98E0DE74B4F482A44"><enum>(xii)</enum><text display-inline="yes-display-inline">any security-based swap.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9BB4FE7918894DE0B3C263E907F41D3D"><enum>(C)</enum><header display-inline="yes-display-inline">Rule of construction regarding master
agreements</header><text display-inline="yes-display-inline">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><subparagraph commented="no" display-inline="no-display-inline" id="H3107FA2249994BCE9C5B9464F4057BFA"><enum>(D)</enum><header display-inline="yes-display-inline">Foreign exchange swaps and forwards
exception</header>
<clause commented="no" display-inline="no-display-inline" id="HDB2B29D54DB64FDDB3FFCAC07594BD6D"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding clauses (ix) and (x) of
subparagraph (B), foreign exchange swaps and foreign exchange forwards shall be
considered swaps under this paragraph if the Commission makes a determination
that either foreign exchange swaps or foreign exchange forwards or both should
be regulated as swaps under this Act and the Secretary concurs with such
determination.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA6E097EF348643F68999E239321C63FF"><enum>(ii)</enum><header display-inline="yes-display-inline">Scope of authority</header>
<subclause commented="no" display-inline="no-display-inline" id="HE2DF8DDA34B3465EB2003FA3E06214A9"><enum>(I)</enum><text display-inline="yes-display-inline">The Commission and the Secretary shall
jointly determine which of the authorities under this Act regarding swaps the
Commission shall exercise over foreign exchange swaps and foreign exchange
forwards. Such authorities shall subsequently be exercised solely by the
Commission. The Commission and the Secretary may jointly amend any previously
made determination under this subclause.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H132B014797204813855972E2956F6DE8"><enum>(II)</enum><text display-inline="yes-display-inline">Notwithstanding clause (i), the Commission
and the Secretary of the Treasury may determine that either foreign exchange
swaps or foreign exchange forwards or both should not be regulated as swaps
under this Act if such determination is jointly made.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H91453C8FC8544D6DAD0DDD0EF4B6477A"><enum>(iii)</enum><header display-inline="yes-display-inline">Reporting</header><text display-inline="yes-display-inline">Notwithstanding clauses (ix) and (x) of
subparagraph (B) and subparagraph (D)(ii), all foreign exchange swaps and
foreign exchange forwards shall be reported to either a swap repository, or, if
there is no swap repository that would accept such swaps or forwards, to the
Commission pursuant to section 4r within such time period as the Commission may
by rule or regulation prescribe.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA7E7E6B70D84408BAE80ABED82C7838B"><enum>(iv)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">For purposes of this subparagraph only, the
term ‘Secretary’ means the Secretary of the Treasury.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA4056D445BF4CE1A980FDD960A472C9"><enum>(36)</enum><header display-inline="yes-display-inline">Board</header><text display-inline="yes-display-inline">The term <term>Board</term> means the Board
of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2B64EF8808C47E69603F16B3D577C4E"><enum>(37)</enum><header display-inline="yes-display-inline">Security-based swap</header><text display-inline="yes-display-inline">The term <term>security-based swap</term>
has the same meaning as in section 3(a)(68) of the Securities and Exchange Act
of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCCEB51DF7D684A838B4933E7E9FC3B00"><enum>(38)</enum><header display-inline="yes-display-inline">Swap dealer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2EBCB541E0E64F899876B08BB08926A4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>swap dealer</term> means any
person who—</text>
<clause commented="no" display-inline="no-display-inline" id="H50877C87AF434E2AB872DA3D6DB97C1A"><enum>(i)</enum><text display-inline="yes-display-inline">holds itself out as a dealer in
swaps;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H37139E9FD74C4C63AA691F503FCC435B"><enum>(ii)</enum><text display-inline="yes-display-inline">makes a market in swaps;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H488053921F8543989DFE3F5C1F7E92CD"><enum>(iii)</enum><text display-inline="yes-display-inline">regularly engages in the purchase of swaps
and their resale to customers in the ordinary course of a business; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7F4CBC57E1354AE7969429FF846CA1DF"><enum>(iv)</enum><text display-inline="yes-display-inline">engages in any activity causing the person
to be commonly known in the trade as a dealer or market maker in swaps.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C4F32466FF0456881F3665D1F08C225"><enum>(B)</enum><text display-inline="yes-display-inline">A person may be designated a swap dealer
for a single type or single class or category of swap and considered not a swap
dealer for other types, classes, or categories of swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H86BBA30A9900410697DC9278C7CE8C77"><enum>(C)</enum><header display-inline="yes-display-inline">De minimus exception</header><text display-inline="yes-display-inline">The Commission shall make a determination
to exempt from designation as a swap dealer an entity that engages in a de
minimus amount of swap dealing in connection with transactions with or on the
behalf of its customers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD9C2338644C74EB0B1B7355BD09C4A2D"><enum>(39)</enum><header display-inline="yes-display-inline">Major swap participant</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1A8CF29D0EC34988AA0D22481A7C6D5E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>major swap
participant</term> means any person who is not a swap dealer, and—</text>
<clause commented="no" display-inline="no-display-inline" id="HB421396F6A814E009BA525C45B267B1F"><enum>(i)</enum><text display-inline="yes-display-inline">maintains a substantial net position in
outstanding swaps, excluding positions held primarily for hedging, reducing or
otherwise mitigating its commercial risk, including operating and balance sheet
risk; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H20F33C6E2F444D0D94BA7C497423C7D4"><enum>(ii)</enum><text display-inline="yes-display-inline">whose outstanding swaps create substantial
net counterparty exposure among the aggregate of its counterparties that could
expose those counterparties to significant credit losses.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6A3F245AA0984CE982A15D7201BC1568"><enum>(B)</enum><header display-inline="yes-display-inline">Definition of substantial net
position</header><text display-inline="yes-display-inline">The Commission shall
define by rule or regulation the terms <quote>substantial net position</quote>,
<quote>substantial net counterparty exposure</quote>, and <quote>significant
credit losses</quote> at thresholds that the Commission determines prudent for
the effective monitoring, management and oversight of entities which are
systemically important or can significantly impact the financial system through
counterparty credit risk. In setting the definitions, the Commission shall
consider the person's relative position in uncleared as opposed to cleared
swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H78DF68F99F214B96B8163C51671808BB"><enum>(C)</enum><text display-inline="yes-display-inline">A person may be designated a major swap
participant for 1 or more individual types of swaps without being classified as
a major swap participant for all classes of swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7D7432C31368482E83B340A8BB24B34A"><enum>(40)</enum><header display-inline="yes-display-inline">Major security-based swap
participant</header><text display-inline="yes-display-inline">The term
<term>major security-based swap participant</term> has the same meaning as in
section 3(a)(67) of the Securities Exchange Act of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCB5EF83D1B4648D58631271D334C882D"><enum>(41)</enum><header display-inline="yes-display-inline">Appropriate federal banking
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2FB8188B8DCF436CBB3C68F5EFE9888B"><enum>(42)</enum><header display-inline="yes-display-inline">Prudential regulator</header><text display-inline="yes-display-inline">The term <term>Prudential Regulator</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5395331C761B447A96D959AEA3405A36"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCDE9846047904489B15B3702B5C14EA0"><enum>(i)</enum><text display-inline="yes-display-inline">a State-chartered bank that is a member of
the Federal Reserve System; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H15D8E3A6F3D64685BC5A1A023F7FA655"><enum>(ii)</enum><text display-inline="yes-display-inline">a State-chartered branch or agency of a
foreign bank;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9070F5D2B97B46FC8F0998E2E5DE903A"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H98F9B6A221DB4F3A993A195C7B7D7164"><enum>(i)</enum><text display-inline="yes-display-inline">a national bank; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9E098995E472414A985A95A8D1432DB5"><enum>(ii)</enum><text display-inline="yes-display-inline">a federally chartered branch or agency of a
foreign bank; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H73D9C8E5DFB4432DBC68437E4CDA6C5A"><enum>(C)</enum><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H34EACB70F624493F96A8F64E94AC0912"><enum>(43)</enum><header display-inline="yes-display-inline">Security-based swap dealer</header><text display-inline="yes-display-inline">The term <term>security-based swap
dealer</term> has the same meaning as in section 3(a)(71) of the Securities
Exchange Act of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBD8FD18474DE45FC90DD417978A256EC"><enum>(44)</enum><header display-inline="yes-display-inline">Foreign exchange forward</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HBAEADDF1393C4AC1B9285A2C43D454A5"><enum>(45)</enum><header display-inline="yes-display-inline">Foreign exchange swap</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H1B71BE84E21446109CB6633313C000E0"><enum>(46)</enum><header display-inline="yes-display-inline">Person associated with a security-based
swap dealer or major security-based swap participant</header><text display-inline="yes-display-inline">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 3(a)(70) of the
Securities Exchange Act of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBC7C434A9F09489096D737F6BBC41A0E"><enum>(47)</enum><header display-inline="yes-display-inline">Person associated with a swap dealer or
major swap participant</header><text display-inline="yes-display-inline">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 a
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 a swap dealer or major
swap participant, or any employee of a 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 the term other than for purposes of section 4s(b)(6).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H20E336805C96402490BD0F47DEC6F375"><enum>(48)</enum><header display-inline="yes-display-inline">Swap repository</header><text display-inline="yes-display-inline">The term <term>swap repository</term> means
any person that collects, calculates, prepares or maintains information or
records with respect to transactions or positions in or the terms and
conditions of swaps entered into by third parties.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8C82E8B6D7D54D108714DD4B0EA4528E"><enum>(49)</enum><header display-inline="yes-display-inline">Swap execution facility</header><text display-inline="yes-display-inline">The term <term>swap execution
facility</term> means a person or entity that facilitates the execution or
trading of swaps between two persons through any means of interstate commerce,
but which is not a designated contract market, including any electronic trade
execution or voice brokerage facility.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C5298B077154A588CD5232214DE35A3"><enum>(50)</enum><header display-inline="yes-display-inline">Derivative</header><text display-inline="yes-display-inline">The term <term>derivative</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD770A4B213AE416593FD6F36AB84395B"><enum>(A)</enum><text display-inline="yes-display-inline">a contract of sale of a commodity for
future delivery; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7E1E966606B4283A607A28F5DC2EC1C"><enum>(B)</enum><text display-inline="yes-display-inline">a
swap.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H685CDA6D192245748B898DB3B9CD1E79"><enum>(b)</enum><header display-inline="yes-display-inline">Authority to further define
terms</header><text display-inline="yes-display-inline">The Commodity Futures
Trading Commission shall adopt a rule further defining the terms
<term>swap</term>, <term>swap dealer</term>, <term>major swap
participant</term>, and <term>eligible contract participant</term> for the
purpose of including transactions and entities that have been structured to
evade this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6CEA4455F6D4447F93FF9770129674C0"><enum>(c)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">Section 4(c) of the Commodity Exchange Act
(7 U.S.C. 4(c)) is amended by adding at the end the following: <quote>The
Commission shall not have the authority to grant exemptions from the provisions
of sections 3101(a), 3101(c), 3104, 3105, 3106, 3107, 3109, 3110, 3113, 3115,
3120, and 3121 of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, except as expressly
authorized under the provisions of that Act. Notwithstanding the preceding
sentence, the Commodity Futures Trading Commission may exempt from any
provision of the Commodity Exchange Act, pursuant to this subsection, an
agreement, contract, or transaction that is entered into pursuant to a tariff
approved by the Federal Energy Regulatory Commission, if the Commodity Futures
Trading Commission determines that the exemption would be consistent with the
public interest, and shall consider and not unreasonably deny any request made
by the Federal Energy Regulatory Commission for such an
exemption.</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF9CCD44F600246459F98A8EBE463DBDE" section-type="subsequent-section"><enum>3102.</enum><header display-inline="yes-display-inline">Jurisdiction</header>
<subsection commented="no" display-inline="no-display-inline" id="H5E803CFCC18941288A2618D25A3215EE"><enum>(a)</enum><header display-inline="yes-display-inline">Exclusive jurisdiction</header><text display-inline="yes-display-inline">Section 2(a)(1) of the Commodity Exchange
Act (7 U.S.C. 2(a)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H532D83D227014F2ABC1668944F2B29AE"><enum>(1)</enum><text display-inline="yes-display-inline">in the 1st sentence of subparagraph
(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H491086C8FE894C9DB959543B1FF02275"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(c) through (i)</quote>
and inserting <quote>(c) and (f)</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H108F7208B6B745BEBB1C452E0FDB641C"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>swaps, or</quote>
before <quote>contracts of sale</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFE646654A8B944A89F0CE4BCFFD91F2D"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>derivatives transaction
execution facility</quote> and inserting <quote>swap execution
facility</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H03E9F7057AB34172815C60DE23532E2D"><enum>(D)</enum><text display-inline="yes-display-inline">by striking <quote>5a</quote> and inserting
<quote>5h</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H91CD64A6A7BA42A786068585E5D64533"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C7D017DC5C243FFA2E535DA8ABA6E26" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA14BE640C1A148E59675A0293AE3B201"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="H0C58BDCC4C16492EB0F4EC44C1F5BB22"><enum>(i)</enum><text display-inline="yes-display-inline">Nothing in this paragraph shall limit the
jurisdiction conferred on the Securities and Exchange Commission by the
Derivative Markets Transparency and Accountability Act of 2009 with regard to
security-based swap agreements as defined pursuant to section 3002(e) of such
Act, and security-based swaps.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H93BDFC600E1747F18796535AD234935A" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">In addition to the authority of the
Securities Exchange Commission described in clause (i), nothing in this
subparagraph shall limit or affect any statutory authority of the Commission
with respect to an agreement, contract, or transaction described in clause
(i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6A04F08B92FE4C968B84C3E57242B3C9"><enum>(H)</enum><clause commented="no" display-inline="yes-display-inline" id="HAEE6102AF5034138ADBEE81CCF355248"><enum>(i)</enum><text display-inline="yes-display-inline">Nothing in this Act shall limit or affect
any statutory authority of the Federal Energy Regulatory Commission with
respect to an agreement, contract, or transaction that is—</text>
<subclause commented="no" display-inline="no-display-inline" id="HCF95DA6E3C1F422EA05BDB4CEAEB7B10" indent="up1"><enum>(I)</enum><text display-inline="yes-display-inline">not executed, traded, or cleared on a
registered entity or trading facility; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD8202CACA16B48538DA32148FC7732B6" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">entered into pursuant to a tariff or rate
schedule approved by the Federal Energy Regulatory Commission.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HA3CF245426FC4019894AABA3D51AF136" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">In addition to the authority of the Federal
Energy Regulatory Commission described in clause (i), nothing in this
subparagraph shall limit or affect any statutory authority of the Commission
with respect to an agreement, contract, or transaction described in clause
(i).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H835C3948043D4C929513BE7ED5F2F0B6"><enum>(b)</enum><header display-inline="yes-display-inline">Additions</header><text display-inline="yes-display-inline">Section 2(c)(2)(A) of such Act (7 U.S.C.
2(c)(2)(A)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2ABDE83C251C4D8BA58B3DF39C074C6D"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i) by striking <quote>or</quote>
at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1969B6F2D7CF4B3EA220F163F34B77A3"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating clause (ii) as clause
(iii); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC10F09F301674D49A840C9B10A14300B"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after clause (i) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H4ADB8A2F8D8C4D51965D12BBDCB0F945" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HDE5C2933291B4605AE90161F4629AFAA" indent="down3"><enum>(ii)</enum><text display-inline="yes-display-inline">a swap;
or</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21B00945720549B8BA48A554013B19CB"><enum>(c)</enum><text display-inline="yes-display-inline">Section 12(e) of such Act (7 U.S.C. 16(e))
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H022F7AE4D38C419AA39C5AC5BB39EC18"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by inserting <quote>or
(3)</quote> after <quote>paragraph (2)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H533913687E424E50A0C0122427EE4982"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking subparagraphs
(A) and (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H0DDEF31AD321418ABFEF62B013A3E894" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H252D9FD80B154DEABD6006C1FCBF43E5"><enum>(A)</enum><text display-inline="yes-display-inline">a swap; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E0C3A78E97E45D59E1EFE851490EC6F"><enum>(B)</enum><text display-inline="yes-display-inline">an agreement, contract, or transaction that
is excluded from this Act under section 2(c) or 2(f) of this Act or title IV of
the Commodity Futures Modernization Act of 2000 or exempted under section 4(c)
of this Act (regardless of whether any such agreement, contract, or transaction
is otherwise subject to this Act).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDBB310210AA344DEB4275F5164FAD193"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H524BFEF0CBD14C8585303CCBA6D5F885" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H798BF7B4387F4E9C8222190F9786D29A"><enum>(3)</enum><text display-inline="yes-display-inline">A swap may not be regulated as an insurance
contract under State law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA2E9552E777546D3BB2D1F5BABB012FF"><enum>(4)</enum><text display-inline="yes-display-inline">The provisions of this Act relating to
swaps that were enacted by the Derivative Markets Transparency and
Accountability Act of 2009, including any rule or regulation thereunder, shall
not apply to activities outside the United States unless those
activities—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F39225FB5144F92BC7CB848CB811FA8"><enum>(A)</enum><text display-inline="yes-display-inline">have a direct and significant connection
with activities in or effect on United States commerce; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H21E613F8D4464192BC23064A85504B29"><enum>(B)</enum><text display-inline="yes-display-inline">contravene such rules or regulations as the
Commission may prescribe as necessary or appropriate to prevent the evasion of
any provision of this Act that was enacted by the Derivative Markets
Transparency and Accountability Act of
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD986280A5B8C4433BDB191C5B97C1861"><enum>(d)</enum><text display-inline="yes-display-inline">Nothing in the Derivative Markets
Transparency and Accountability Act of 2009 or the amendments to the Commodity
Exchange Act made by such Act shall limit or affect any statutory enforcement
authority of the Federal Energy Regulatory Commission pursuant to Section 222
of the Federal Power Act and Section 4A of the Natural Gas Act that existed
prior to the date of enactment of the Derivative Markets Transparency and
Accountability Act of 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD3FE263EB59946E3B0E6AAEBFDC2097D" section-type="subsequent-section"><enum>3103.</enum><header display-inline="yes-display-inline">Clearing and execution
transparency</header>
<subsection commented="no" display-inline="no-display-inline" id="H869A37D66CA94DD0B0B982B060C196E6"><enum>(a)</enum><header display-inline="yes-display-inline">Clearing and execution transparency
requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC48B5795D4D84318BC3E21FFC7A8EA10"><enum>(1)</enum><text display-inline="yes-display-inline">Section 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by striking subsections (d), (e), (g), and (h).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC98B2A804894C28BE5DE24188ED00C2"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HC15452643C8D49DD83E6E0AD1BAFADCE"><enum>(A)</enum><text display-inline="yes-display-inline">Prior to the final effective dates in this
title, a person may petition the Commodity Futures Trading Commission to remain
subject to paragraphs (3) through (7) of section 2(h) of the Commodity Exchange
Act.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4CA2BDABD58B41839D87C1EABDDF30E4" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
shall consider any petition submitted under subparagraph (A) in a prompt manner
and may allow a person to continue operating subject to paragraphs (3) through
(7) of section 2(h) of the Commodity Exchange Act for up to one year after the
effective date of this subtitle.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0FF66533E6D747B38CB4AFA43D823247"><enum>(3)</enum><text display-inline="yes-display-inline">Section 2 of such Act (7 U.S.C. 2) is
further amended by inserting after subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="H09EB43C16F814A6E80A57AC824FF2143" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HBB1B5BBAB14A468D85D2AD4720D66F95"><enum>(d)</enum><header display-inline="yes-display-inline">Swaps</header><text display-inline="yes-display-inline">Nothing in this Act (other than subsections
(a)(1)(A), (a)(1)(B), (c)(2)(A)(ii), (e), (f), (j), and (k), sections 4a, 4b,
4b-1, 4c(a), 4c(b), 4o, 4r, 4s, 4t, 5, 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 commented="no" display-inline="no-display-inline" id="H5422039C9F894DF2825C5EF64EC05835"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation on participation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17BA4BCD1B3B4E5F85E2E465DCBAB30A"><enum>(4)</enum><text display-inline="yes-display-inline">Section 2 of such Act (7 U.S.C. 2) is
further amended by inserting after subsection (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="H657C2BA5C74841F9BDFBF95CFE5FB333" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HDD68546E8AD340BBAE270111B4E20B79"><enum>(j)</enum><header display-inline="yes-display-inline">Clearing requirement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1F436F4B27004935A2192116158316C4"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1B83175CE3E240AF9231E10FD3817495"><enum>(A)</enum><header display-inline="yes-display-inline">Standard for 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, and the Commission has determined under paragraph
(2)(B)(ii) that the swap is required to be cleared.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H35E2AFA5B3E741D080FA92C37DF8400E"><enum>(B)</enum><header display-inline="yes-display-inline">Open access</header><text display-inline="yes-display-inline">The rules of a derivatives clearing
organization described in subparagraph (A) shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H312E7785DB504719BF64A1D2CF1E3045"><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 within the derivatives clearing organization and may be
offset with each other within the derivatives clearing organization; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6E205C3D62D240A39AEB4A10C886DB7C"><enum>(ii)</enum><text display-inline="yes-display-inline">provide for non-discriminatory clearing of
a swap executed bilaterally or on or through the rules of an unaffiliated
designated contract market or swap execution facility.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47754928510F45B191C99562B0C25DDA"><enum>(2)</enum><header display-inline="yes-display-inline">Commission review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0268546272D9478D953FD07B54EEA95F"><enum>(A)</enum><header display-inline="yes-display-inline">Commission-initiated review</header>
<clause commented="no" display-inline="no-display-inline" id="H4517E6ECD9F84008B0817E5AEE07BB76"><enum>(i)</enum><text display-inline="yes-display-inline">The Commission shall review each swap, or
any group, category, type or class of swaps to make a determination as to
whether the swap or group, category, type, or class of swaps should be required
to be cleared.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4F74164D7E6F41C6B60DA64B326083D2"><enum>(ii)</enum><text display-inline="yes-display-inline">The Commission shall provide at least a
30-day public comment period regarding any determination made under clause
(i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD60B93A7107149AE9F46DBAFC705C963"><enum>(B)</enum><header display-inline="yes-display-inline">Swap submissions</header>
<clause commented="no" display-inline="no-display-inline" id="H6D42F6A7B131437AB005C6FF6B193989"><enum>(i)</enum><text display-inline="yes-display-inline">A derivatives clearing organization shall
submit to the Commission each swap, or any group, category, type or class of
swaps that it plans to accept for clearing, and provide notice to its members
(in a manner to be determined by the Commission) of the submission.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7D0AD63C057A4BBAAB7AA2C3DC9D4BCF"><enum>(ii)</enum><text display-inline="yes-display-inline">The Commission shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD5E5130D6E6D496FB66A14A84C98C8C4"><enum>(I)</enum><text display-inline="yes-display-inline">make available to the public any submission
received under clause (i);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8937EC19FE7E4EF2B601BE2463FB4F65"><enum>(II)</enum><text display-inline="yes-display-inline">review each submission made under clause
(i), and determine whether the swap, or group, category, type, or class of
swaps described in the submission is required to be cleared; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD2D1F574C682490689F8C894D88D8370"><enum>(III)</enum><text display-inline="yes-display-inline">provide at least a 30-day public comment
period regarding its determination as to whether the clearing requirement under
paragraph (1)(A) shall apply to the submission.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7013037609847F38A141CC2391D033C"><enum>(C)</enum><header display-inline="yes-display-inline">Deadline</header><text display-inline="yes-display-inline">The Commission shall make its determination
under subparagraph (B)(ii) not later than 90 days after receiving a submission
made under subparagraph (B)(i), unless the submitting derivatives clearing
organization agrees to an extension for the time limitation established under
this subparagraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8D46AF4A211F401BB0D0102C46C668DD"><enum>(D)</enum><header display-inline="yes-display-inline">Determination</header>
<clause commented="no" display-inline="no-display-inline" id="HEC95736BB4CA4947896B4FB17AEA506B"><enum>(i)</enum><text display-inline="yes-display-inline">In reviewing a submission made under
subparagraph (B), the Commission shall review whether the submission is
consistent with section 5b(c)(2).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H27BB62F03CF24F2EB1E51CD29E28ED5C"><enum>(ii)</enum><text display-inline="yes-display-inline">In reviewing a swap, group of swaps, or
class of swaps pursuant to subparagraph (A) or a submission made under
subparagraph (B), the Commission shall take into account the following
factors:</text>
<subclause commented="no" display-inline="no-display-inline" id="HD972CE9B629141AE933918B82D5B5DA4"><enum>(I)</enum><text display-inline="yes-display-inline">The existence of significant outstanding
notional exposures, trading liquidity and adequate pricing data.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HED200F1A68B247E69E34814B7D7FE1DA"><enum>(II)</enum><text display-inline="yes-display-inline">The availability of rule framework,
capacity, operational expertise and resources, and credit support
infrastructure to clear the contract on terms that are consistent with the
material terms and trading conventions on which the contract is then
traded.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HEA157FFCFA5F48839799196CFB47F54F"><enum>(III)</enum><text display-inline="yes-display-inline">The effect on the mitigation of systemic
risk, taking into account the size of the market for such contract and the
resources of the derivatives clearing organization available to clear the
contract.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HAABCF08D0D0443AE93A145F65A5271FC"><enum>(IV)</enum><text display-inline="yes-display-inline">The effect on competition, including
appropriate fees and charges applied to clearing.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H7429D55268D64C8EBC73530AE6319BF4"><enum>(V)</enum><text display-inline="yes-display-inline">The existence of reasonable legal certainty
in the event of the insolvency of the relevant derivatives clearing
organization or 1 or more of its clearing members with regard to the treatment
of customer and swap counterparty positions, funds, and property.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H366735E5B26A4D63960197C1767FF826"><enum>(iii)</enum><text display-inline="yes-display-inline">In making a determination under
subparagraph (B)(ii) that the clearing requirement shall apply, the Commission
may require such terms and conditions to the requirement as the Commission
determines to be appropriate.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3704624AF97F44E3942B03A840EF7367"><enum>(E)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules for a derivatives clearing
organization’s submission for review, pursuant to this paragraph, of a swap, or
a group, category, type or class of swaps, that it seeks to accept for
clearing.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAED6FAE0C7EA469EBBD77A88C6EC870E"><enum>(3)</enum><header display-inline="yes-display-inline">Stay of clearing requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD6B2B21B29914D96A48EA4F8459C4FFD"><enum>(A)</enum><text display-inline="yes-display-inline">After a determination pursuant to paragraph
(2)(B), the Commission, on application of a counterparty to a swap or on its
own initiative, may stay the clearing requirement of paragraph (1) until the
Commission completes a review of the terms of the swap (or the group, category,
type or class of swaps) and the clearing arrangement.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD72D76EE795D4D35B8BDC134DEA90AD7"><enum>(B)</enum><header display-inline="yes-display-inline">Deadline</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2AC4C6FE07814173A88072EE8945E49C"><enum>(C)</enum><header display-inline="yes-display-inline">Determination</header><text display-inline="yes-display-inline">Upon completion of the review undertaken
pursuant to subparagraph (A), the Commission may—</text>
<clause commented="no" display-inline="no-display-inline" id="H0EAC6C510A4A41909185083C5781BE77"><enum>(i)</enum><text display-inline="yes-display-inline">determine, unconditionally or subject to
such terms and conditions as the Commission determines to be appropriate, that
the swap, or group, category, type or class of swaps, must be cleared pursuant
to this subsection if it finds that such clearing is consistent with paragraph
(2)(D); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3DCC071FF91C479E9BBF3F3062569CC0"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7A883EB0CF174F21B5C3EF95C4A9407E"><enum>(D)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability 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 commented="no" display-inline="no-display-inline" id="HD86787895F7144B787F135DC48D74100"><enum>(4)</enum><header display-inline="yes-display-inline">Prevention of evasion</header><text display-inline="yes-display-inline">The Commission may prescribe rules under
this subsection, or issue interpretations of the rules, as necessary to prevent
evasions of this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27CAEA72F8274E90B56CB73803B3F13E"><enum>(5)</enum><header display-inline="yes-display-inline">Required reporting</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4BF68666178540069830235A76C1C4BD"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">All swaps that are not accepted for
clearing by any derivatives clearing organization shall be reported either to 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.
Counterparties to a swap may agree which counterparty will report the swap as
required by this paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE061A92659E3402399E9A5FF263F3E4A"><enum>(B)</enum><header display-inline="yes-display-inline">Swap dealer designation</header><text display-inline="yes-display-inline">With regard to swaps where only 1
counterparty is a swap dealer, the swap dealer shall report the swap as
required by this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H792E1BE11BEF415EADC2852E9A97ED1E"><enum>(6)</enum><header display-inline="yes-display-inline">Reporting transition rules</header><text display-inline="yes-display-inline">Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD03C4FE18D014679B7CD4A38FD355D2F"><enum>(A)</enum><text display-inline="yes-display-inline">Swaps entered into before the date of the
enactment of this subsection shall be reported to a registered swap repository
or the Commission no later than 180 days after the effective date of this
subsection; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1093F4B97E7C4BC49C4082F879E4AE8E"><enum>(B)</enum><text display-inline="yes-display-inline">Swaps entered into on or after such date of
enactment shall be reported to a registered swap repository or the Commission
no later than the later of—</text>
<clause commented="no" display-inline="no-display-inline" id="H6859F9E5FF32478BAC5D96D4F64E9C1B"><enum>(i)</enum><text display-inline="yes-display-inline">90 days after such effective date;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7E7CEC2E8E114D5FA8080928DF187D49"><enum>(ii)</enum><text display-inline="yes-display-inline">such other time after entering into the
swap as the Commission may prescribe by rule or regulation.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8841C461001452C9D5CA3CF382B16BA"><enum>(7)</enum><header display-inline="yes-display-inline">Clearing transition rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF122F2143E01483E8ED5DCB03A1F87A5"><enum>(A)</enum><text display-inline="yes-display-inline">Swaps entered into before the date of the
enactment of this subsection are exempt from the clearing requirements of this
subsection if reported pursuant to paragraph (6)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEF8CF35B88AB481CB77B6F9124F398CB"><enum>(B)</enum><text display-inline="yes-display-inline">Swaps entered into before application of
the clearing requirement pursuant to this subsection are exempt from the
clearing requirements of this subsection if reported pursuant to paragraph
(6)(B).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9592D4DA1B0242C9A61308FCACE9A409"><enum>(8)</enum><header display-inline="yes-display-inline">Exceptions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H359E133DA2654F97AB1B9BE04D9CD541"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of paragraph (1) shall not
apply to a swap if one of the counterparties to the swap—</text>
<clause commented="no" display-inline="no-display-inline" id="HCFB337D02D934D2AB6C386531BC7CD71"><enum>(i)</enum><text display-inline="yes-display-inline">is not a swap dealer or major swap
participant;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE020A468A5F643F68EDCA745E7EB5CD6"><enum>(ii)</enum><text display-inline="yes-display-inline">is using swaps to hedge or mitigate
commercial risk, including operating or balance sheet risk; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB550055E4A824E9EB7DBA469EC4FFCD8"><enum>(iii)</enum><text display-inline="yes-display-inline">notifies the Commission, in a manner set
forth by the Commission, how it generally meets its financial obligations
associated with entering into non-cleared swaps.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2BA04677E5284735AE5D405F2ABC453F"><enum>(B)</enum><header display-inline="yes-display-inline">Abuse of exception</header><text display-inline="yes-display-inline">The Commission may prescribe rules under
this subsection, or issue interpretations of the rules, as necessary to prevent
abuse of the exemption in subparagraph (A) by swap dealers and major swap
participants.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDC899E9AD83F4D3F94EE04E54F778B6F"><enum>(C)</enum><header display-inline="yes-display-inline">Option to clear</header><text display-inline="yes-display-inline">The application of the clearing exception
in subparagraph (A) is solely at the discretion of the counterparty to the swap
that meets the conditions of clauses (i) through (iii) of subparagraph
(A).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H564C4A4FD4C349D0AF67AF47721FFFFF"><enum>(k)</enum><header display-inline="yes-display-inline">Execution transparency</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5E0068E1ED564FFFB5CC0490A6B9C593"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement</header><text display-inline="yes-display-inline">A swap that is subject to the clearing
requirement of subsection (j) shall not be traded except on or through a board
of trade designated as a contract market under section 5, or on or through a
swap execution facility registered under section 5h, that makes the swap
available for trading.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE5A28D3051084141A43B64F825CABBEC"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The requirement of paragraph (1) shall not
apply to a swap if no designated contract market or swap execution facility
makes the swap available for trading.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFDA71E32336042FABFDE7BC40C2EFD9D"><enum>(3)</enum><header display-inline="yes-display-inline">Agricultural swaps</header><text display-inline="yes-display-inline">No person shall offer to enter into, enter
into or confirm the execution of, any swap in an agricultural commodity (as
defined by the Commission) that is subject to paragraphs (1) and (2) except
pursuant to a rule or regulation of the Commission allowing the swap under such
terms and conditions as the Commission shall prescribe.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D55C7587DE84F4DB983BEBE5AAF70AE"><enum>(4)</enum><header display-inline="yes-display-inline">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 that may be prescribed by the Commission with respect to swaps
subject to the requirements of paragraph (1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2DFDA0341F35404593F09E0A2588A980"><enum>(5)</enum><header display-inline="yes-display-inline">Exchange trading</header><text display-inline="yes-display-inline">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></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6B98D589AE174480BB693E8AF6D68FFA"><enum>(b)</enum><header display-inline="yes-display-inline">Derivatives clearing organizations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H18807E49A0504D59AF77679C95D1F17E"><enum>(1)</enum><text display-inline="yes-display-inline">Subsections (a) and (b) of section 5b of
such Act (7 U.S.C. 7a–1) are amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6512A32F9F434096A6D5DA027DCC9013" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HCD558D093A1F49479E93BB7E02DC4D4F"><enum>(a)</enum><header display-inline="yes-display-inline">Registration requirement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H415C32827D9B4164BF5506F797B3CBF9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">It shall be unlawful for any entity, 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>
<subparagraph commented="no" display-inline="no-display-inline" id="H88F49785D1D94D86A35F1A3D9ACDE95F"><enum>(A)</enum><text display-inline="yes-display-inline">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>
<clause commented="no" display-inline="no-display-inline" id="H73DEC4C3D0714434BBB0DC54F9A4BE55"><enum>(i)</enum><text display-inline="yes-display-inline">excluded from this Act by section
2(a)(1)(C)(i), 2(c), or 2(f); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7AF30D880D3A4198A038A870D975DC93"><enum>(ii)</enum><text display-inline="yes-display-inline">a security futures product cleared by a
clearing agency registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HECF2AEAB863B4874B7CD16B97FAB3C8F"><enum>(B)</enum><text display-inline="yes-display-inline">a swap.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0BFB47D57BEF4B18969180B6CB5B7FDE"><enum>(2)</enum><header display-inline="yes-display-inline">Existing banks and clearing
agencies</header><text display-inline="yes-display-inline">A bank or a clearing
agency registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 required to be registered as a derivatives
clearing organization under this section is deemed to be registered under this
section to the extent that the bank cleared swaps, as defined in this Act, as a
multilateral clearing organization or the clearing agency cleared swaps, as
defined in this Act, before the enactment of this subsection. A bank to which
this paragraph applies may, by the vote of the shareholders owning not less
than 51 percent of the voting interests of the bank, be converted into a State
corporation, partnership, limited liability company, or other similar legal
form pursuant to a plan of conversion, if the conversion is not in
contravention of applicable State law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFD6E5599DAA446E1830DA5DCAC02AC54"><enum>(b)</enum><header display-inline="yes-display-inline">Voluntary registration</header><text display-inline="yes-display-inline">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>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5AFA84923F74A77BB415E0354C7663F"><enum>(2)</enum><text display-inline="yes-display-inline">Section 5b of such Act (7 U.S.C. 7a–1) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H21533A6B72BE4157A59988E7CC193A22" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF7A675D7B1734E03BB8CC0DD5728D2F0"><enum>(g)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing persons that are registered as
derivatives clearing organizations for swaps under this subsection.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H86D97D06E382424094FD02D8FB2E62B9"><enum>(h)</enum><header display-inline="yes-display-inline">Exemptions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDEF5C1BA4F1C475A8F7A281F3A70EAD1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 the
derivatives clearing organization is subject to comparable, comprehensive
supervision and regulation on a consolidated basis by a Prudential Regulator or
the appropriate governmental authorities in the organization’s home
country.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1CE036BDB647417AAA6431F8BDD310CD"><enum>(2)</enum><text display-inline="yes-display-inline">A person that is required to be registered
as a derivatives clearing organization under this section, whose principal
business is clearing securities and options on securities and which is a
clearing agency registered with the Securities Exchange Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), shall be
unconditionally exempt from registration under this section solely for the
purpose of clearing swaps, unless the Commission finds that the clearing agency
is not subject to comparable, comprehensive supervision and regulation by the
Securities and Exchange Commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA515E9802BA7426FAE37F21A76B496F9"><enum>(i)</enum><header display-inline="yes-display-inline">Designation of compliance officer</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5DCD2165655141FEBBDA20A2D4EC9557"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each derivatives clearing organization
shall designate an individual to serve as a compliance officer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB59FF51CB446454DBA4753B6F7D38AB1"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The compliance officer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF35A2C071B6B4FF883180080A72B8BBF"><enum>(A)</enum><text display-inline="yes-display-inline">shall report directly to the board or to
the senior officer of the derivatives clearing organization; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA667D2FED15F4A1D8264DA86B69C2318"><enum>(B)</enum><text display-inline="yes-display-inline">shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H90819F4C9ABD4F9EB2A64D706A3D9D68"><enum>(i)</enum><text display-inline="yes-display-inline">review compliance with the core principles
in section 5b(c)(2).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H178BD50DA092400CAC9D9A9DBDDB6FA8"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H345D3990F3984CC785AB313D0E9B9D33"><enum>(iii)</enum><text display-inline="yes-display-inline">be responsible for administering the
policies and procedures required to be established pursuant to this section;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HED0A78C2F51546D480DE2BF6C50DE56E"><enum>(iv)</enum><text display-inline="yes-display-inline">ensure compliance with this Act and the
rules and regulations issued under this Act; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A968D2894A3472FBE4BAB4781D891F1"><enum>(C)</enum><text display-inline="yes-display-inline">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. The procedures shall establish the handling, management response,
remediation, re-testing, and closing of non-compliant issues.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA95D353A34BC42D1A737C729B85A8DA6"><enum>(3)</enum><header display-inline="yes-display-inline">Annual reports required</header><text display-inline="yes-display-inline">The compliance officer shall annually
prepare and sign a report on the compliance of the derivatives clearing
organization with this Act and the policies and procedures of the derivatives
clearing organization, including the code of ethics and conflict of interest
policies of the derivatives clearing organization, in accordance with rules
prescribed by the Commission. The 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 commented="no" display-inline="no-display-inline" id="HC6E15B866A0D418385FEB099C209C528"><enum>(3)</enum><text display-inline="yes-display-inline">Section 5b(c)(2) of such Act (7 U.S.C.
7a–1(c)(2)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H64633476118B4B45AA3405A653DB4D4B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD43B8B1010A34A6D904F1752AF2E3FA0"><enum>(2)</enum><header display-inline="yes-display-inline">Core principles for derivatives clearing
organizations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF2A2ABBE7A594BE9BBD61478AC6BD2AB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To be registered and to maintain
registration as a derivatives clearing organization, a derivatives clearing
organization shall comply with the core principles specified in this paragraph
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, a derivatives clearing organization shall have reasonable
discretion in establishing the manner in which the organization complies with
the core principles.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H385CF1A975DA4EE59D8AF1788225169B"><enum>(B)</enum><header display-inline="yes-display-inline">Financial resources</header>
<clause commented="no" display-inline="no-display-inline" id="H5A9257E4977D4438949633DCF1A456E5"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
have adequate financial, operational, and managerial resources to discharge the
responsibilities of the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0C826CD58EC84D019E106CE927545447"><enum>(ii)</enum><text display-inline="yes-display-inline">The financial resources of the derivatives
clearing organization shall at a minimum exceed the total amount that
would—</text>
<subclause commented="no" display-inline="no-display-inline" id="H6122E2B50A524AE29D21852869DFBAE0"><enum>(I)</enum><text display-inline="yes-display-inline">enable the organization to meet the
financial obligations of the organization to the members of, and participants
in, the organization, notwithstanding a default by the member or participant
creating the largest financial exposure for the organization in extreme but
plausible market conditions; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HDA96D98584C34B4FAE177DABA69C7E08"><enum>(II)</enum><text display-inline="yes-display-inline">enable the organization to cover the
operating costs of the organization for a period of 1 year, calculated on a
rolling basis.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H34438EFDB23D488BBD4D5DF59A29F6A9"><enum>(C)</enum><header display-inline="yes-display-inline">Participant and product
eligibility</header>
<clause commented="no" display-inline="no-display-inline" id="H6BDC72AFEC444788A9AFA9BF5271C724"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
establish—</text>
<subclause commented="no" display-inline="no-display-inline" id="HEC2546EB54264672B5F558C4B81AD2A8"><enum>(I)</enum><text display-inline="yes-display-inline">appropriate admission and continuing
eligibility standards (including sufficient financial resources and operational
capacity to meet obligations arising from participation in the organization)
for members of and participants in the organization; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H833C51B99B0440838E535A6A36284860"><enum>(II)</enum><text display-inline="yes-display-inline">appropriate standards for determining
eligibility of agreements, contracts, or transactions submitted to the
organization for clearing.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H36F1D6929DDA454D9A7CE73F94A9D877"><enum>(ii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
have procedures in place to verify that participation and membership
requirements are met on an ongoing basis.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE6F85DF464F741CA8398D8D6947B048D"><enum>(iii)</enum><text display-inline="yes-display-inline">The participation and membership
requirements of the derivatives clearing organization shall be objective,
publicly disclosed, and permit fair and open access.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7B72095E97F64BBB805A53D8E9484763"><enum>(D)</enum><header display-inline="yes-display-inline">Risk management</header>
<clause commented="no" display-inline="no-display-inline" id="H80C133B667934AD49FBE00D1A90B1489"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
have the ability to manage the risks associated with discharging the
responsibilities of a derivatives clearing organization through the use of
appropriate tools and procedures.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFE82B230122149468A4A51496A9C27C7"><enum>(ii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
measure the credit exposures of the organization to the members of, and
participants in, the organization at least once each business day and shall
monitor the exposures throughout the business day.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF9CB5BF989624B9DA60CB4D6E68167BB"><enum>(iii)</enum><text display-inline="yes-display-inline">Through margin requirements and other risk
control mechanisms, a derivatives clearing organization shall limit the
exposures of the organization to potential losses from defaults by the members
of, and participants in, the organization so that the operations of the
organization would not be disrupted and non-defaulting members or participants
would not be exposed to losses that they cannot anticipate or control.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAA1FAD27CF784D9AA18DAFD571E97C02"><enum>(iv)</enum><text display-inline="yes-display-inline">Margin required from all members and
participants shall be sufficient to cover potential exposures in normal market
conditions.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEAAE76CDAEBF4616B99AFDC7BD37FA48"><enum>(v)</enum><text display-inline="yes-display-inline">The models and parameters used in setting
margin requirements shall be risk-based and reviewed regularly.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF1FE31E1A4E4E0689F8E78A19D8E2D7"><enum>(E)</enum><header display-inline="yes-display-inline">Settlement procedures</header><text display-inline="yes-display-inline">The derivatives clearing organization
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H3674A56AEF6A4CD3B275BE3A661498FF"><enum>(i)</enum><text display-inline="yes-display-inline">complete money settlements on a timely
basis, and not less than once each business day;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H37703775A3E34D419A0204D8162D6EB5"><enum>(ii)</enum><text display-inline="yes-display-inline">employ money settlement arrangements that
eliminate or strictly limit the exposure of the organization to settlement bank
risks, such as credit and liquidity risks from the use of banks to effect money
settlements;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD4BFF2A3F1384101B54B35E0AD41F71F"><enum>(iii)</enum><text display-inline="yes-display-inline">ensure money settlements are final when
effected;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5645F9DC60814D32A8A05067CDBDBE6D"><enum>(iv)</enum><text display-inline="yes-display-inline">maintain an accurate record of the flow of
funds associated with each money settlement;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3891404576A5473EAAC9D91DC77F3E76"><enum>(v)</enum><text display-inline="yes-display-inline">have the ability to comply with the terms
and conditions of any permitted netting or offset arrangements with other
clearing organizations; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5EE99EE34DFC4855A6CF596CDA48E11E"><enum>(vi)</enum><text display-inline="yes-display-inline">for physical settlements, establish rules
that clearly state the obligations of the organization with respect to physical
deliveries, including how risks from these obligations shall be identified and
managed.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA28443102FB483895F9495448E89493"><enum>(F)</enum><header display-inline="yes-display-inline">Treatment of funds</header>
<clause commented="no" display-inline="no-display-inline" id="HBCFB0CF5440D4ACBA3E9A1C91B6328A1"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
have standards and procedures designed to protect and ensure the safety of
member and participant funds and assets.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE23EC0E0D1E0409D89E2A5C8049D4954"><enum>(ii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
hold member and participant funds and assets in a manner whereby risk of loss
or of delay in the access of the organization to the assets and funds is
minimized.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H99050DD119834F7490EC15E109B2670E"><enum>(iii)</enum><text display-inline="yes-display-inline">Assets and funds invested by the
derivatives clearing organization shall be held in instruments with minimal
credit, market, and liquidity risks.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0872AD40CA94A56A6CB53A97AD10901"><enum>(G)</enum><header display-inline="yes-display-inline">Default rules and procedures</header>
<clause commented="no" display-inline="no-display-inline" id="HCEA972EBCAE74C11AFE95E45B31A495C"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
have rules and procedures designed to allow for the efficient, fair, and safe
management of events when members or participants become insolvent or otherwise
default on their obligations to the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H22B97A68B1EB48D9B16569F3E55CE994"><enum>(ii)</enum><text display-inline="yes-display-inline">The default procedures of the derivatives
clearing organization shall be clearly stated, and they shall ensure that the
organization can take timely action to contain losses and liquidity pressures
and to continue meeting the obligations of the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA30044682B0E4FC7899FF4DB8383152E"><enum>(iii)</enum><text display-inline="yes-display-inline">The default procedures shall be publicly
available.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA3375EB9FB2B40FDB5A3A53142094FF3"><enum>(H)</enum><header display-inline="yes-display-inline">Rule enforcement</header><text display-inline="yes-display-inline">The derivatives clearing organization
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HAABEDD8F87C240B7A5B48FD1A9084F52"><enum>(i)</enum><text display-inline="yes-display-inline">maintain adequate arrangements and
resources for the effective monitoring and enforcement of compliance with rules
of the organization and for resolution of disputes; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCD5C45A7AD6546A385BEF03BACB0B069"><enum>(ii)</enum><text display-inline="yes-display-inline">have the authority and ability to
discipline, limit, suspend, or terminate the activities of a member or
participant for violations of rules of the organization.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H90D26C48FEA9408BB714AFAD7E14659D"><enum>(I)</enum><header display-inline="yes-display-inline">System safeguards</header><text display-inline="yes-display-inline">The derivatives clearing organization
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HA7AEB501C0494BDC8AB5515A1736EFD4"><enum>(i)</enum><text display-inline="yes-display-inline">establish and maintain a program of risk
analysis and oversight to identify and minimize sources of operational risk
through the development of appropriate controls and procedures, and the
development of automated systems, that are reliable, secure, and have adequate
scalable capacity;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6F88B32AE13B403C875945D07D623E17"><enum>(ii)</enum><text display-inline="yes-display-inline">establish and maintain emergency
procedures, backup facilities, and a plan for disaster recovery that allows for
the timely recovery and resumption of operations and the fulfillment of the
responsibilities and obligations of the organization; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H95F9D372B773446194633E84FF8B8462"><enum>(iii)</enum><text display-inline="yes-display-inline">periodically conduct tests to verify that
backup resources are sufficient to ensure continued order processing and trade
matching, price reporting, market surveillance, and maintenance of a
comprehensive and accurate audit trail.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H60BD187E8B194199A3C4134F5337FE6F"><enum>(J)</enum><header display-inline="yes-display-inline">Reporting</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
provide to the Commission all information necessary for the Commission to
conduct oversight of the organization.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2D562F789510459EA51034F4BA2E31BF"><enum>(K)</enum><header display-inline="yes-display-inline">Recordkeeping</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
maintain records of all activities related to the business of the organization
as a derivatives clearing organization in a form and manner acceptable to the
Commission for a period of 5 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF05CBB8A292C404BA48406BEBFE5C5B7"><enum>(L)</enum><header display-inline="yes-display-inline">Public information</header>
<clause commented="no" display-inline="no-display-inline" id="HE5970E65D574455AA4AE741CB064036B"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
provide market participants with sufficient information to identify and
evaluate accurately the risks and costs associated with using the services of
the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H98AFEC5C95674D2DAAF5D407EE979F9C"><enum>(ii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
make information concerning the rules and operating procedures governing the
clearing and settlement systems (including default procedures) of the
organization available to market participants.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5F1950A244E44BF49D4E5431F5935814"><enum>(iii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
disclose publicly and to the Commission information concerning—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7CFDC2C152A14FEDA11791ACB02947E3"><enum>(I)</enum><text display-inline="yes-display-inline">the terms and conditions of contracts,
agreements, and transactions cleared and settled by the organization;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB3CFDEA2C8D14747A0AE175F5E1DF5BF"><enum>(II)</enum><text display-inline="yes-display-inline">clearing and other fees that the
organization charges the members of, and participants in, the
organization;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA9485D420C99417784EACDF496B68AAE"><enum>(III)</enum><text display-inline="yes-display-inline">the margin-setting methodology and the size
and composition of the financial resource package of the organization;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H20C0169FECBC496CA4F092BDC3D50F3F"><enum>(IV)</enum><text display-inline="yes-display-inline">other information relevant to participation
in the settlement and clearing activities of the organization; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H75709BA2A723478099C48B6E0485A1F2"><enum>(V)</enum><text display-inline="yes-display-inline">daily settlement prices, volume, and open
interest for all contracts settled or cleared by the organization.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0025A6CEAC3E4703A44B5203B2EC3E09"><enum>(M)</enum><header display-inline="yes-display-inline">Information-sharing</header><text display-inline="yes-display-inline">The derivatives clearing organization
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H2EC955EAB8D0451FB357FCACAD0B1DE5"><enum>(i)</enum><text display-inline="yes-display-inline">enter into and abide by the terms of all
appropriate and applicable domestic and international information-sharing
agreements; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5E5B64E857B64CB685CB0A5B7FBA4644"><enum>(ii)</enum><text display-inline="yes-display-inline">use relevant information obtained from the
agreements in carrying out the risk management program of the
organization.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H25A6E668D12040399D3FB76D6B5B062A"><enum>(N)</enum><header display-inline="yes-display-inline">Antitrust considerations</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
avoid—</text>
<clause commented="no" display-inline="no-display-inline" id="HE329B696C5EE4599BE7A8011906147A8"><enum>(i)</enum><text display-inline="yes-display-inline">adopting any rule or taking any action that
results in any unreasonable restraint of trade; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5A62C5FB780643A68FB738D8137318E2"><enum>(ii)</enum><text display-inline="yes-display-inline">imposing any material anticompetitive
burden.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8E7776591BF54D85B7C25F4B63DFB054"><enum>(O)</enum><header display-inline="yes-display-inline">Governance fitness standards</header>
<clause commented="no" display-inline="no-display-inline" id="H089354572F6842659A9CCD6F81771B49"><enum>(i)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
establish governance arrangements that are transparent in order to fulfill
public interest requirements and to support the objectives of the owners of,
and participants in, the organization.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD8AE48C8AA754148B8BBD2D8D61D589C"><enum>(ii)</enum><text display-inline="yes-display-inline">The derivatives clearing organization shall
establish and enforce appropriate fitness standards for the directors, members
of any disciplinary committee, and members of the organization, and any other
persons with direct access to the settlement or clearing activities of the
organization, including any parties affiliated with any of the persons
described in this subparagraph.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9F04C1582F54A808E93869877FFAF6F"><enum>(P)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
establish and enforce rules to minimize conflicts of interest in the
decision-making process of the organization and establish a process for
resolving the conflicts of interest.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H49ED808AC2994DB9B6B3076D91184979"><enum>(Q)</enum><header display-inline="yes-display-inline">Composition of the boards</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
ensure that the composition of the governing board or committee includes market
participants.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H614F790BC4D64357BB78B093B2D40C2D"><enum>(R)</enum><header display-inline="yes-display-inline">Legal risk</header><text display-inline="yes-display-inline">The derivatives clearing organization shall
have a well founded, transparent, and enforceable legal framework for each
aspect of its
activities.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2FA25A10909F48A29DB90ED340074A37"><enum>(4)</enum><text display-inline="yes-display-inline">Section 5b of such Act (7 U.S.C. 7a–1) is
further amended by adding after subsection (i), as added by this section, the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3A9F0EBD6EED4A8FB71A94F288B04780" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H05900D2CAB31437DBED54B3D7A656DD3"><enum>(j)</enum><header display-inline="yes-display-inline">Reporting</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD727EC833A6D4015B7731BE91F94207E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A derivatives clearing organization that
clears swaps shall provide to the Commission all information determined by the
Commission to be necessary to perform the responsibilities of the Commission
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. The Commission
shall share the information, upon request, with the Board, the Securities and
Exchange Commission, the appropriate Federal banking agencies, the Financial
Services Oversight Council, and the Department of Justice or other persons the
Commission deems appropriate, including foreign financial supervisors
(including foreign futures authorities), foreign central banks, and foreign
ministries that comply with the provisions of section 8.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFE945A4F3B7D43A0BB851FF77F39C20E"><enum>(2)</enum><header display-inline="yes-display-inline">Public information</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HE9D2A4BDDA4E48BAA19BFF7D14C0CEC5"><enum>(3)</enum><text display-inline="yes-display-inline">A derivatives clearing organization shall
keep any such books and records relating to swaps defined in section
1a(35)(A)(v) open to inspection and examination by the Securities and Exchange
Commission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HABD7B76838DF4AF08EFC6E8DF6F3CFB9"><enum>(5)</enum><text display-inline="yes-display-inline">Section 8(e) of such Act (7 U.S.C. 12(e))
is amended in the last sentence by inserting <quote>central bank and
ministries</quote> after <quote>department</quote> each place it
appears.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC8EE223077ED435F91087D43C7B3DA90"><enum>(c)</enum><header display-inline="yes-display-inline">Legal certainty for identified banking
products</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3A5998BD9FB6489D9F9042B23EFC0F7D"><enum>(1)</enum><header display-inline="yes-display-inline">Repeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D443F35EE904D86BBCD6AF7159DC70C"><enum>(2)</enum><header display-inline="yes-display-inline">Legal certainty</header><text display-inline="yes-display-inline">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="H50E1BEC0C1D44E8287641BC19A4C0233" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HC6DEF36F24B94A3E992C5D6CD69F7AE1" section-type="subsequent-section"><enum>403.</enum><header display-inline="yes-display-inline">Exclusion of identified banking
product</header>
<subsection commented="no" display-inline="no-display-inline" id="HF28CD5EEE61745788C50E6EDC6984D23"><enum>(a)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">Except as provided in subsection (b) or
(c)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE8E60E063E114627A11F3C525E377FDE"><enum>(1)</enum><text display-inline="yes-display-inline">the Commodity Exchange Act shall not apply
to, and the Commodity Futures Trading Commission shall not exercise regulatory
authority under such Act with respect to, an identified banking product;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7D9215613EDE47EF8F3E8CD7D9BCE87E"><enum>(2)</enum><text display-inline="yes-display-inline">the definitions of <quote>security-based
swap</quote> in section 3(a)(68) of the Securities Exchange Act of 1934 and
<quote>security-based swap agreement</quote> in section 3(a)(76) of the
Securities Exchange Act of 1934 do not include any identified banking
product.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2D7D35AD43F3493D967E7A23731D6456"><enum>(b)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">An appropriate Federal banking agency may
except an identified banking product of a bank under its regulatory
jurisdiction from the exclusions in subsection (a) if the agency determines, in
consultation with the Commodity Futures Trading Commission and the Securities
and Exchange Commission, that the product—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA76F2A1D0DCD4890B48411E789ED5D9D"><enum>(1)</enum><text display-inline="yes-display-inline">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 3(a)(68) of the Securities and Exchange Act of
1934; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB523DEC105C54F26A4419CBAFE767603"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7D51B8C03EDA4DE38C6DC840E02C4760"><enum>(c)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">The exclusions in subsection (a) shall not
apply to an identified banking product that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF55596FD253E4299ACB417C79FBEE7BB"><enum>(1)</enum><text display-inline="yes-display-inline">is a product of a bank that is not under
the regulatory jurisdiction of an appropriate Federal banking agency;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H31C93150509341FFAB1262B3A204C9DB"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F4306EDEB484A7EB066030D4BD055D9"><enum>(3)</enum><text display-inline="yes-display-inline">has become known to the trade as a swap or
security-based swap, or otherwise has been structured as an identified banking
product for the purpose of evading the provisions of the Commodity Exchange Act
(7 U.S.C. 1 et seq.), the Securities Act of 1933 (15 U.S.C. 77a et seq.), or
the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H6CA8106E1C444F8FA122F3DB7593A9C5" section-type="subsequent-section"><enum>3104.</enum><header display-inline="yes-display-inline">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 at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA2E8F234B8D3460E926718390B129991" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2788D110504341C08ED2071D5E889B36"><enum>(j)</enum><header display-inline="yes-display-inline">Public reporting of aggregate swap
data</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4ACCD65966D24142AB421DB206A97C6F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75A4DB50491049B4A56AAF0B6852819E"><enum>(2)</enum><header display-inline="yes-display-inline">Designee of the commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08524FE6076B4843A47C1CE61F2F660F"><enum>(3)</enum><header display-inline="yes-display-inline">Sources of information</header><text display-inline="yes-display-inline">The sources of the information to be
publicly reported as described in paragraph (1) are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H45F77964212A4689858F244E1B101241"><enum>(A)</enum><text display-inline="yes-display-inline">derivatives clearing organizations pursuant
to section 5b(j)(2);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBEDFA281A8AD4B2D8FEC875C06C15EA1"><enum>(B)</enum><text display-inline="yes-display-inline">swap repositories pursuant to section
21(c)(3); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2909834450894BC391D91BEAB1F2D69E"><enum>(C)</enum><text display-inline="yes-display-inline">reports received by the Commission pursuant
to section
4r.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HE8F13071E3EA41FB9AF9E98A29A8F2E0" section-type="subsequent-section"><enum>3105.</enum><header display-inline="yes-display-inline">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="HA2CBED438DE740689C4DACEA62CB88AE" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H126ABA08D83C45E8BADC11B6CB9F566A" section-type="subsequent-section"><enum>21.</enum><header display-inline="yes-display-inline">Swap repositories</header>
<subsection commented="no" display-inline="no-display-inline" id="H74E93339ACFF4DCEBFF71BA15D40E1EA"><enum>(a)</enum><header display-inline="yes-display-inline">Registration requirement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6082C31EE4804264983362338FA609F1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H086A96BC691C4F2F95013A4656A28596"><enum>(2)</enum><header display-inline="yes-display-inline">Inspection and examination</header><text display-inline="yes-display-inline">Registered swap repositories shall be
subject to inspection and examination by any representative of the
Commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD5BB07F756784B93BAB5DF28271ACC22"><enum>(b)</enum><header display-inline="yes-display-inline">Standard setting</header>
<paragraph commented="no" display-inline="no-display-inline" id="H72B5A088E7DD479E8A2F9E53AF87F209"><enum>(1)</enum><header display-inline="yes-display-inline">Data identification</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4CAF5BF8DF214F10A2B0AFF3B4D64B57"><enum>(2)</enum><header display-inline="yes-display-inline">Data collection and
maintenance</header><text display-inline="yes-display-inline">The Commission
shall prescribe data collection and data maintenance standards for swap
repositories.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDEDD421DDFEF43AB9C6D7A761351D55E"><enum>(3)</enum><header display-inline="yes-display-inline">Comparability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7830946196664AFBBC61269E52F475FF"><enum>(c)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">A swap repository shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA3D0471129E54DD787EE82D388DC0CDE"><enum>(1)</enum><text display-inline="yes-display-inline">accept data prescribed by the Commission
for each swap under subsection (b);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED7F418260074B4B8597B86DFDDB2415"><enum>(2)</enum><text display-inline="yes-display-inline">maintain the data in such form and manner
and for such period as may be required by the Commission;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA4D88165F6CB48B49B7B854F70320D4E"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDFA14290F2ED45D595DF045A18C2B60B"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7168F6CC2559448CA309E93E34246509"><enum>(d)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing persons that are registered
under this section, including rules that specify the data elements that shall
be collected and maintained.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF05AABBA45D9433AB70CCA0235247794"><enum>(e)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or
unconditionally, a swap repository from the requirements of this section if the
Commission finds that the 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 commented="no" display-inline="no-display-inline" id="H1704392BE539494096549027726EB5AD" section-type="subsequent-section"><enum>3106.</enum><header display-inline="yes-display-inline">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="HDD993CC3E175412CABA7BE1D54CF87D6" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H04F72E1C82AF4CCA8277E75C3FAF8E21" section-type="subsequent-section"><enum>4r.</enum><header display-inline="yes-display-inline">Reporting and recordkeeping for certain
swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H137F949205A041BBB06A7732AF70B0ED"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any person who enters into a swap
and—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8776E56970F44A3E9D8A65800BC42EA6"><enum>(1)</enum><text display-inline="yes-display-inline">did not have the swap cleared in accordance
with section 2(j)(1); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H21F2BA10F81843629EE83C0B058CB348"><enum>(2)</enum><text display-inline="yes-display-inline">did not have data regarding the swap
accepted by a swap repository in accordance with rules (including timeframes)
adopted by the Commission under section 21,</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">shall meet the requirements in
subsection (b).</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="HC0D26787C1FB4D79A21DEE81CC222C66"><enum>(b)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">Any person described in subsection (a)
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H391C388A2AB8409DB3BFC59E28B60475"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDEF107F4249B435DAFCABB9071882DAE"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1B502D1711AD46B2976C38806801DCAF"><enum>(c)</enum><header display-inline="yes-display-inline">Identical
data</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB992256E40074042875CFE373B47591E" section-type="subsequent-section"><enum>3107.</enum><header display-inline="yes-display-inline">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="HA51EF2EC2DF043E39488722B41B522E0" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H318C893C337547C19E5E439C921CE0CC" section-type="subsequent-section"><enum>4s.</enum><header display-inline="yes-display-inline">Registration and regulation of swap dealers
and major swap participants</header>
<subsection commented="no" display-inline="no-display-inline" id="H2055E00C82B34537965D52D8419F6CF8"><enum>(a)</enum><header display-inline="yes-display-inline">Registration</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE5CF029EB4874AEF98595C9B56B073D0"><enum>(1)</enum><text display-inline="yes-display-inline">It shall be unlawful for any person to act
as a swap dealer unless the person is registered as a swap dealer with the
Commission.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98F308882481431FAEAE8FD66748C8D9"><enum>(2)</enum><text display-inline="yes-display-inline">It shall be unlawful for any person to act
as a major swap participant unless the person is registered as a major swap
participant with the Commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB568FBAF672C4C44B2D9CD41F9EF4E4E"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2F3F1A6AEAF84DFBB1605033FF62DE58"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A person shall register as a swap dealer or
major swap participant by filing a registration application with the
Commission.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3D21E89AACE84595B7F99C2FC7985F0E"><enum>(2)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">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. The person, when registered as a swap dealer
or major swap participant, shall continue to report and furnish to the
Commission such information pertaining to the person’s business as the
Commission may require.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2B1A0249C95B47BC80C01B4340F22E08"><enum>(3)</enum><header display-inline="yes-display-inline">Expiration</header><text display-inline="yes-display-inline">Each registration shall expire at such time
as the Commission may by rule or regulation prescribe.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30225D82160D45F08DEADBC0C8B7F9DA"><enum>(4)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">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. Except with regard to subsection
(d)(1)(A), the Commission may provide conditional or unconditional exemptions
from some or all of the rules or requirements prescribed under this section for
swap dealers and major swap participants.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1FE62C4F0E684CFCAA8BE7F216AC2EA1"><enum>(5)</enum><header display-inline="yes-display-inline">Transition</header><text display-inline="yes-display-inline">Rules adopted under this section shall
provide for the registration of swap dealers and major swap participants no
later than 1 year after the effective date of the
<short-title>Derivative Markets Transparency and
Accountability Act of 2009</short-title>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD08C0008FD6D44448515DB66B857FF6A"><enum>(6)</enum><header display-inline="yes-display-inline">Statutory disqualification</header><text display-inline="yes-display-inline">Except to the extent otherwise specifically
provided by rule, regulation, or order, it shall be unlawful for a swap dealer
or a major swap participant to permit any person associated with a swap dealer
or a major swap participant who is subject to a statutory disqualification to
effect or be involved in effecting swaps on behalf of the swap dealer or major
swap participant, if the swap dealer or major swap participant knew, or in the
exercise of reasonable care should have known, of the statutory
disqualification.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2440C1A8B9904F8BB910A0625E2BCA85"><enum>(c)</enum><header display-inline="yes-display-inline">Rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDD547354CCCA4104928F70FA4937A99D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of this section, the Commission shall adopt rules for persons that
are registered as swap dealers or major swap participants under this
section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E9C94865CF7463A97299985D9901F8F"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for prudential
requirements</header><text display-inline="yes-display-inline">The Commission
shall not prescribe rules imposing prudential requirements on swap dealers or
major swap participants for which there is a Prudential Regulator. This
provision shall not be construed as limiting the authority of the Commission to
prescribe appropriate business conduct, reporting, and recordkeeping
requirements to protect investors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2F9658C8B4094DBE8F316FB4C9D8AADB"><enum>(d)</enum><header display-inline="yes-display-inline">Capital and margin requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC9CBB00A6C454F789C33AFC72C6BFA48"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2615423F33304B40ACB571419CD8B23B"><enum>(A)</enum><header display-inline="yes-display-inline">Bank swap dealers and major swap
participants</header><text display-inline="yes-display-inline">Each registered
swap dealer and major swap participant for which there is a Prudential
Regulator shall meet such minimum capital requirements and minimum initial and
variation margin requirements as the Prudential Regulators shall by rule or
regulation jointly prescribe that:</text>
<clause commented="no" display-inline="no-display-inline" id="HC942146E736B403EB9FCC7B5A0CD78E1"><enum>(i)</enum><text display-inline="yes-display-inline">help ensure the safety and soundness of the
swap dealer or major swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8181800601A24C53BEC0C6879D62CC22"><enum>(ii)</enum><text display-inline="yes-display-inline">are appropriate for the risk associated
with the non-cleared swaps held as a swap dealer or major swap
participant.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFCA84D0E455E4D7C835FC6DA7745B478"><enum>(B)</enum><header display-inline="yes-display-inline">Non-bank swap dealers and major swap
participants</header><text display-inline="yes-display-inline">Each registered
swap dealer and major swap participant for which there is not a Prudential
Regulator shall meet such minimum capital requirements and minimum initial and
variation margin requirements as the Commission shall by rule or regulation
prescribe that—</text>
<clause commented="no" display-inline="no-display-inline" id="H8A48ED6BEF1C4BE79BE1C960865E831A"><enum>(i)</enum><text display-inline="yes-display-inline">help ensure the safety and soundness of the
swap dealer or major swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1A907C15F626492DABC1FC926C3731B7"><enum>(ii)</enum><text display-inline="yes-display-inline">are appropriate for the risk associated
with the non-cleared swaps held as a swap dealer or major swap
participant.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9EEDFD1AADD6445B85EEA2D61C6E8CFD"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H929A772B847548FCB72BA4F12DCCC444"><enum>(A)</enum><header display-inline="yes-display-inline">Bank swap dealers and major swap
participants</header><text display-inline="yes-display-inline">No later than 1
year after the date of the enactment of the Derivative Markets Transparency and
Accountability Act of 2009, the Prudential Regulators, in consultation with the
Commission, shall jointly adopt rules imposing capital and margin requirements
under this subsection for swap dealers and major swap participants, with
respect to their activities as a swap dealer or major swap participant for
which there is a Prudential Regulator.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE5D43EAAA48649DAA03D0C5C902D6C65"><enum>(B)</enum><header display-inline="yes-display-inline">Non-bank swap dealers and major swap
participants</header><text display-inline="yes-display-inline">No later than 1
year after the date of the enactment of the Derivative Markets Transparency and
Accountability Act of 2009, the Commission shall 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 commented="no" display-inline="no-display-inline" id="HDA6EA3F3D01249D29B7536BAFA944A2A"><enum>(3)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Nothing in this section shall limit the
authority of the Commission to set capital requirements for a registered
futures commission merchant or introducing broker in accordance with section
4f.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H005DBAE454C74BC1A7257C7040B5AA1F"><enum>(e)</enum><header display-inline="yes-display-inline">Reporting and recordkeeping</header>
<paragraph commented="no" display-inline="no-display-inline" id="H75DECB1F2DB749A49006F17870F65026"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each registered swap dealer and major swap
participant—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1F11B45F1F3A4B48A0F8A91984DB5DE1"><enum>(A)</enum><text display-inline="yes-display-inline">shall make such reports as are prescribed
by the Commission by rule or regulation regarding the transactions and
positions and financial condition of the person;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H404D27B11EF84AAEBD94449D5591EB88"><enum>(B)</enum><text display-inline="yes-display-inline">for which—</text>
<clause commented="no" display-inline="no-display-inline" id="HE83EDA0B00924FD19BD2E89F662BA5A3"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8EEEB55717E842AEBED9406DC786E184"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H650E3D05CF8A43E6A778C82F7C9743C6"><enum>(C)</enum><text display-inline="yes-display-inline">shall keep the books and records open to
inspection and examination by any representative of the Commission; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H34AD79ECCD18434888CD6D4F350FBBDB"><enum>(D)</enum><text display-inline="yes-display-inline">shall keep any such books and records
relating to swaps defined in section 1a(35)(A)(v) open to inspection and
examination by the Securities and Exchange Commission.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE32570766A0F41FC8648C90F4D4E40E0"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">No later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing reporting and recordkeeping
for swap dealers and major swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H315E75F91B7C491687B31BB0FDDF4FF4"><enum>(f)</enum><header display-inline="yes-display-inline">Daily trading records</header>
<paragraph commented="no" display-inline="no-display-inline" id="H54AEC784780B460A9B9C905D8EE6C695"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE61111CB52784D6983B17B9348C09712"><enum>(2)</enum><header display-inline="yes-display-inline">Information requirements</header><text display-inline="yes-display-inline">The daily trading records shall include
such information as the Commission shall prescribe by rule or
regulation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2B9C45DE5FD64088B3AA763CE3941E8F"><enum>(3)</enum><header display-inline="yes-display-inline">Customer records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4045B386633F4639BCE212DDB0851E90"><enum>(4)</enum><header display-inline="yes-display-inline">Audit trail</header><text display-inline="yes-display-inline">Each registered swap dealer and major swap
participant shall maintain a complete audit trail for conducting comprehensive
and accurate trade reconstructions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H67D76344933342839D94458BB5612748"><enum>(5)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">No later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing daily trading records for swap
dealers and major swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBD89C3F1C3DE4732AE5CEC71E60C13FB"><enum>(g)</enum><header display-inline="yes-display-inline">Business conduct standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0CEB8B06BA934A1D91F7352C0B92A468"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H542F423AEF754DF18D4BC3269ACD6996"><enum>(A)</enum><text display-inline="yes-display-inline">fraud, manipulation, and other abusive
practices involving swaps (including swaps that are offered but not entered
into);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7400A8F8E2054316827B9399214E85FC"><enum>(B)</enum><text display-inline="yes-display-inline">diligent supervision of its business as a
swap dealer;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H18075ABD2EC540BBA607EC3440701941"><enum>(C)</enum><text display-inline="yes-display-inline">adherence to all applicable position
limits; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE1594D400734ECBAA9845097A59CA34"><enum>(D)</enum><text display-inline="yes-display-inline">such other matters as the Commission shall
determine to be necessary or appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47748CD171A949A2B037CFBDBE8B0108"><enum>(2)</enum><header display-inline="yes-display-inline">Business conduct requirements</header><text display-inline="yes-display-inline">Business conduct requirements adopted by
the Commission shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEADAF771E89445DCB0F1A467ED7718F6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD33A5090CF84E8A829A9F7A7739CEB5"><enum>(B)</enum><text display-inline="yes-display-inline">require disclosure by the swap dealer or
major swap participant to any counterparty to the transaction (other than a
swap dealer or major swap participant) of—</text>
<clause commented="no" display-inline="no-display-inline" id="HCF7FD86C7308484D8DE72F7539E45689"><enum>(i)</enum><text display-inline="yes-display-inline">information about the material risks and
characteristics of the swap;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1F1A0A02D69F44B5820E97A86E09DBCC"><enum>(ii)</enum><text display-inline="yes-display-inline">for cleared swaps, upon the request of the
counterparty, the daily mark from the appropriate derivatives clearing
organization, and for non-cleared swaps, upon request of the counterparty, the
daily mark of the swap dealer or major swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7E6FDA7E469443D38104895D7BADB7FD"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H79A6DC06341145E5B99A4639CB7146B6"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1D256F437777426BBBEB3D3163433F78"><enum>(3)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">The Commission shall prescribe rules under
this subsection governing business conduct standards for swap dealers and major
swap participants no later than 1 year after the date of the enactment of the
Derivative Markets Transparency and Accountability Act of 2009.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD21BE1CE175848AAB3FBE05C112DA9AC"><enum>(h)</enum><header display-inline="yes-display-inline">Documentation standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1438B3E432E74CAE84CE37004FEA33BC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8B9143A6B47C405E9B9EC7FD22353F19"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">No later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing the standards described in
paragraph (1) for swap dealers and major swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE9BA437F50754C90848F8D466C5768BF"><enum>(i)</enum><header display-inline="yes-display-inline">Dealer responsibilities</header><text display-inline="yes-display-inline">Each registered swap dealer and major swap
participant at all times shall comply with the following requirements:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0346861313BA4DBAB062EA474DD2FE3C"><enum>(1)</enum><header display-inline="yes-display-inline">Monitoring of trading</header><text display-inline="yes-display-inline">The swap dealer or major swap participant
shall monitor its trading in swaps to prevent violations of applicable position
limits.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27B9EA8433CA477E97660C709AE8787E"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of general
information</header><text display-inline="yes-display-inline">The swap dealer
or major swap participant shall disclose to the Commission or to the Prudential
Regulator for the swap dealer or major swap participant, as applicable,
information concerning—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2AFD48F3BB4840E7AC7D69B0C2C171D1"><enum>(A)</enum><text display-inline="yes-display-inline">terms and conditions of its swaps;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCD519EDE6F204BFC95ACC9E2BB6CAFC4"><enum>(B)</enum><text display-inline="yes-display-inline">swap trading operations, mechanisms, and
practices;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAD7856C555564F3189C3C50156AC62AB"><enum>(C)</enum><text display-inline="yes-display-inline">financial integrity protections relating to
swaps; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC013721A614F4C1FBAD2B41C57599B14"><enum>(D)</enum><text display-inline="yes-display-inline">other information relevant to its trading
in swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8539B48DCEC54CAE8C99FC92BB68EC46"><enum>(3)</enum><header display-inline="yes-display-inline">Ability to obtain information</header><text display-inline="yes-display-inline">The swap dealer or major swap participant
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7651CF589B0E409E8FD7178780CD7C87"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H376ED59A6D4C434BBE2BE464F8376844"><enum>(B)</enum><text display-inline="yes-display-inline">provide the information to the Commission
or to the Prudential Regulator for the swap dealer or major swap participant,
as applicable, upon request.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F226DD7453C4FBF937E1BB6739B9B3B"><enum>(4)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The swap dealer and major swap participant
shall implement conflict-of-interest systems and procedures that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF6D4EBE93EE24F21A1B4926BA2B8CAA3"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H374DD47F1C6C4E419390DB2B3CDF5E0D"><enum>(B)</enum><text display-inline="yes-display-inline">address such other issues as the Commission
determines appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE9784601FC94746B246A990F902AA66"><enum>(5)</enum><header display-inline="yes-display-inline">Antitrust considerations</header><text display-inline="yes-display-inline">The swap dealer or major swap participant
shall avoid—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H74CC364441214AE1B1618C7E1285A7B9"><enum>(A)</enum><text display-inline="yes-display-inline">adopting any processes or taking any
actions that result in any unreasonable restraints of trade; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1765B36A4455472A911F9241FA0AF3C7"><enum>(B)</enum><text display-inline="yes-display-inline">imposing any material anticompetitive
burden on
trading.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H4550D07828B8472787C7C96A8A99D8B4" section-type="subsequent-section"><enum>3108.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39CF241F4C534ABA8BEA95289BE2CBD1"><enum>(1)</enum><text display-inline="yes-display-inline">redesignating subsection (c) as subsection
(d); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E6AF414C58D4266BD03420430A01AA3"><enum>(2)</enum><text display-inline="yes-display-inline">inserting after subsection (b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HAEE6594C62954A0F8220277F04CAFE11" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HAC06D771B89D414B89FB3CED3332C63A"><enum>(c)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The Commission shall require that futures
commission merchants and introducing brokers implement conflict-of-interest
systems and procedures that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA3010485B07E4B1896666EF644F39401"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3BE967AC34A54C988D6EECEDDD0D3402"><enum>(2)</enum><text display-inline="yes-display-inline">address such other issues as the Commission
determines
appropriate.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H1EC4ADC22E0B49BE8A57D0EA295B9B05" section-type="subsequent-section"><enum>3109.</enum><header display-inline="yes-display-inline">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="H2A0D1A03346548DF8047AD5170B5BD4D" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H514C071FB3F94132B1889D10A773853A" section-type="subsequent-section"><enum>5h.</enum><header display-inline="yes-display-inline">Swap execution facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="HA753FCE4A83F4CC59C177E2A3D2E9B9D"><enum>(a)</enum><header display-inline="yes-display-inline">Registration</header><text display-inline="yes-display-inline">A person may not operate a swap execution
facility unless the facility is registered under this section or is registered
with the Commission as a designated contract market under section 5 or a swap
execution facility under section 5.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H01BD728A6BD143BDB294CDF91C7B6625"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements for trading</header>
<paragraph commented="no" display-inline="no-display-inline" id="H70B1B13C14AD4BD88028024350227DB7"><enum>(1)</enum><text display-inline="yes-display-inline">A swap execution facility that is
registered under subsection (a) may make available for trading any swap.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01E7C8CFF8BC44C7B36979448AE13D8E"><enum>(2)</enum><header display-inline="yes-display-inline">Rules for trading through the
facility</header><text display-inline="yes-display-inline">Not later than 1
year after the date of the enactment of the Derivative Markets Transparency and
Accountability Act of 2009, the Commission shall adopt rules to allow a swap to
be traded through the facilities of a designated contract market or a swap
execution facility. Such rules shall permit an intermediary, acting as
principal or agent, to enter into or execute a swap, notwithstanding section
2(k), if the swap is executed, reported, recorded, or confirmed in accordance
with the rules of the designated contract market or swap execution
facility.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2A0FEA44924240E39083A63FC6A8CC83"><enum>(3)</enum><header display-inline="yes-display-inline">Agricultural swaps</header><text display-inline="yes-display-inline">A swap execution facility may not list for
trading or confirm the execution of any swap in an agricultural commodity (as
defined by the Commission) except pursuant to a rule or regulation of the
Commission allowing the swap under such terms and conditions as the Commission
shall prescribe.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC1E70C68C517449A866CE8BDA74890F2"><enum>(c)</enum><header display-inline="yes-display-inline">Trading by contract markets</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56CD96981A83415089FA0E04BD3CD15A"><enum>(d)</enum><header display-inline="yes-display-inline">Core principles for swap execution
facilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H83C7866C4F854AC7B5036BD32E775789"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To be registered as, and 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 commented="no" display-inline="no-display-inline" id="H1AC3757B37C54DCABE47E2F62FB29D8D"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance with rules</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5D93B50F594245B2B257873013BD7023"><enum>(A)</enum><text display-inline="yes-display-inline">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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H29F5970932DD44D1AC5C90545381FE46"><enum>(B)</enum><text display-inline="yes-display-inline">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>
<clause commented="no" display-inline="no-display-inline" id="H3500ABF10C954CEEA386BB4A59A1C8D8"><enum>(i)</enum><text display-inline="yes-display-inline">provide market participants with impartial
access to the market; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H53ACA2DCEAB8438BAB729DA4F426ADDA"><enum>(ii)</enum><text display-inline="yes-display-inline">capture information that may be used in
establishing whether rule violations have occurred.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3D87C8C5B476446A904753900C4894A5"><enum>(3)</enum><header display-inline="yes-display-inline">Swaps not readily susceptible to
manipulation</header><text display-inline="yes-display-inline">The swap
execution facility shall permit trading only in swaps that are not readily
susceptible to manipulation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF357B16322784C8BA8294A8AC7B98A1A"><enum>(4)</enum><header display-inline="yes-display-inline">Monitoring of trading</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9F81F720EC37437A828090D7B980A832"><enum>(A)</enum><text display-inline="yes-display-inline">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;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAD2BA68D88324E1D9904DE1BAEE08FAD"><enum>(B)</enum><text display-inline="yes-display-inline">monitor trading in swaps to prevent
manipulation, price distortion, and disruptions of the delivery or cash
settlement process through surveillance, compliance, and disciplinary practices
and procedures, including methods for conducting real-time monitoring of
trading and comprehensive and accurate trade reconstructions.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8573DF0604E7410AB85F9318C9379785"><enum>(5)</enum><header display-inline="yes-display-inline">Ability to obtain information</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDB6C2FE37188402DB597F4A49CE52589"><enum>(A)</enum><text display-inline="yes-display-inline">establish and enforce rules that will allow
the facility to obtain any necessary information to perform any of the
functions described in this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4BE961F882B9496884D14460AC5B2A4F"><enum>(B)</enum><text display-inline="yes-display-inline">provide the information to the Commission
upon request; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC90BCA780627438A82AF083494D70ABE"><enum>(C)</enum><text display-inline="yes-display-inline">have the capacity to carry out such
international information-sharing agreements as the Commission may
require.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7B16F215A79C475CA7BD819F7FFFD676"><enum>(6)</enum><header display-inline="yes-display-inline">Position limits or accountability</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE919574D4F3345039E51B00AB87AF4BA"><enum>(A)</enum><text display-inline="yes-display-inline">To reduce the potential threat of market
manipulation or congestion, especially during trading in the delivery month, a
swap execution facility that is a trading facility shall adopt for each of its
contracts made available for trading on the trading facility, where necessary
and appropriate, position limitations or position accountability for
speculators who establish positions in the contract.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H381DD400ABB64AE6854891986E4B4713"><enum>(B)</enum><text display-inline="yes-display-inline">For any contract of a swap execution
facility that is subject to a position limitation established by the Commission
pursuant to section 4a(a), the swap execution facility—</text>
<clause commented="no" display-inline="no-display-inline" id="H11E60D6EE8B646CC900649F70D5CED77"><enum>(i)</enum><text display-inline="yes-display-inline">may set a position limitation at a level
that is lower than the Commission limitation; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFA83ABA913B94651B9154D05F2E29EC0"><enum>(ii)</enum><text display-inline="yes-display-inline">shall monitor positions established on or
through the swap execution facility for compliance with the limit set by the
Commission and the limit, if any, set by the swap execution facility.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H919EA43214B045A993885962C895A668"><enum>(7)</enum><header display-inline="yes-display-inline">Financial integrity of
transactions</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H065D7804B9D84B3BA56C04309EE77406"><enum>(8)</enum><header display-inline="yes-display-inline">Emergency authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H831E253F2C4C4E00BED38723728C332D"><enum>(9)</enum><header display-inline="yes-display-inline">Timely publication of trading
information</header><text display-inline="yes-display-inline">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. The Commission shall evaluate the impact of public disclosure on
market liquidity in the relevant market, and shall seek to avoid public
disclosure of information in a manner that would significantly reduce market
liquidity. The Commission shall not disclose information related to the
internal business decisions of particular market participants.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA4FB687489C4DD2A7B0E0FBA12C7CA8"><enum>(10)</enum><header display-inline="yes-display-inline">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 keep any such records relating to
swaps defined in section 1a(35)(A)(v) open to inspection and examination by the
Securities and Exchange Commission. 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 commented="no" display-inline="no-display-inline" id="H7092D6E552D44A57A7C41AA63607C881"><enum>(11)</enum><header display-inline="yes-display-inline">Antitrust considerations</header><text display-inline="yes-display-inline">The swap execution facility shall
avoid—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7469869D85CD47559F67E7C646072E3C"><enum>(A)</enum><text display-inline="yes-display-inline">adopting any rules or taking any actions
that result in any unreasonable restraints of trade; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDB1AEE91931E495A8EEA9EDBE3DCA8B6"><enum>(B)</enum><text display-inline="yes-display-inline">imposing any material anticompetitive
burden on trading on the swap execution facility.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8BA4304AA7204B34B9049F9EBF7E1000"><enum>(12)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB7B3DC98E18A4AAAAAE3DEEBCCC4C5A5"><enum>(A)</enum><text display-inline="yes-display-inline">establish and enforce rules to minimize
conflicts of interest in its decision-making process; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53DBD7CABC34416894200F74ED454D97"><enum>(B)</enum><text display-inline="yes-display-inline">establish a process for resolving the
conflicts of interest.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7B93892BA7B64AD3AE4EECDDEA6CC836"><enum>(13)</enum><header display-inline="yes-display-inline">Financial resources</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0925A6812E9C4AAD9604088F170ED9CF"><enum>(A)</enum><text display-inline="yes-display-inline">The swap execution facility shall have
adequate financial, operational, and managerial resources to discharge its
responsibilities.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H494AC98F9609442AB7C536ED6ECDDBB3"><enum>(B)</enum><text display-inline="yes-display-inline">The financial resources of the swap
execution facility shall be considered adequate if their value exceeds the
total amount that would enable the facility to cover its operating costs for a
period of 1 year, calculated on a rolling basis.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFFE7D55F15E44B392E4DCA4D71A06FB"><enum>(14)</enum><header display-inline="yes-display-inline">System safeguards</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD5B6C0B2774D4DCAA6B6021F3AA8F2C3"><enum>(A)</enum><text display-inline="yes-display-inline">establish and maintain a program of risk
analysis and oversight to identify and minimize sources of operational risk,
through the development of appropriate controls and procedures, and the
development of automated systems, that are reliable, secure, and have adequate
scalable capacity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB263F64901C48389572CB1ADA177EE4"><enum>(B)</enum><text display-inline="yes-display-inline">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
swap execution facility’s responsibilities and obligation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3E4341EF1D0045238993A1F6E2182F9F"><enum>(C)</enum><text display-inline="yes-display-inline">periodically conduct tests to verify that
backup resources are sufficient to ensure continued order processing and trade
matching, price reporting, market surveillance, and maintenance of a
comprehensive and accurate audit trail.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8647DE888D1C4E4EBA7D18BDCDFDB86E"><enum>(15)</enum><header display-inline="yes-display-inline">Designation of compliance officer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCDD90BFCDBA642A19C3976D99F6385DB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each swap execution facility shall
designate an individual to serve as a compliance officer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA42A4D98EA8441E4A6D84167307AE7F8"><enum>(B)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The compliance officer—</text>
<clause commented="no" display-inline="no-display-inline" id="HB7E5685F48C4460C9C816F537AD31B85"><enum>(i)</enum><text display-inline="yes-display-inline">shall report directly to the board or to
the senior officer of the facility;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC5FB1E2620E74164A1172B120BB414F3"><enum>(ii)</enum><text display-inline="yes-display-inline">shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="HEE82193F70D745849F1087703688C358"><enum>(I)</enum><text display-inline="yes-display-inline">review compliance with the core principles
in this subsection;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HDA7DAA26F9D04CC0A87010E89C43601C"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39CF518A12054E57851AC246F5D3A028"><enum>(III)</enum><text display-inline="yes-display-inline">be responsible for administering the
policies and procedures required to be established pursuant to this section;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9909BBCC2A534CC8986673F2087580A9"><enum>(IV)</enum><text display-inline="yes-display-inline">ensure compliance with this Act and the
rules and regulations issued under this Act, including rules prescribed by the
Commission pursuant to this section; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H286EA39F42DE4D97A444A8ACC6929858"><enum>(iii)</enum><text display-inline="yes-display-inline">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, and for the handling, management response, remediation, re-testing,
and closing of non-compliant issues.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H42C2F0579D9F4052AB7B8A5CB76FD73F"><enum>(C)</enum><header display-inline="yes-display-inline">Annual reports required</header><text display-inline="yes-display-inline">The compliance officer shall annually
prepare and sign a report on the compliance of the facility with this Act and
its policies and procedures, including its code of ethics and conflict of
interest policies, in accordance with rules prescribed by the Commission. The
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 commented="no" display-inline="no-display-inline" id="H3EA649764C15489E968547D5FCAA68DB"><enum>(e)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or
unconditionally, a swap execution facility from registration under this section
if the Commission finds that the facility is subject to comparable,
comprehensive supervision and regulation on a consolidated basis by the
Securities and Exchange Commission, a Prudential Regulator or the appropriate
governmental authorities in the organization’s home country.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H42231DA256AD43A78A867F887F0852FC"><enum>(f)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">No later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall prescribe rules governing the regulation of swap
execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HC0754E7C0467429EBEBC51F7E0332AF6" section-type="subsequent-section"><enum>3110.</enum><header display-inline="yes-display-inline">Derivatives transaction execution
facilities and exempt boards of trade</header>
<subsection commented="no" display-inline="no-display-inline" id="HC3986F6232F141EE9D731F73650B1E3B"><enum>(a)</enum><text display-inline="yes-display-inline">Sections 5a and 5d of the Commodity
Exchange Act (7 U.S.C. 1 et seq.) are repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H81E145CCF294484DAA30FE4ABA922E98"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HFED768FE64A54BEB88BF2450257A883F"><enum>(1)</enum><text display-inline="yes-display-inline">Prior to the final effective dates in this
title, a person may petition the Commodity Futures Trading Commission to remain
subject to the provisions of section 5d of the Commodity Exchange Act, as such
provisions existed prior to the effective date of this subtitle.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7CC5DD2DC03E41BF943B262A57623046" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
shall consider any petition submitted under paragraph (1) in a prompt manner
and may allow a person to continue operating subject to the provisions of
section 5d of the Commodity Exchange Act for up to 1 year after the effective
date of this subtitle.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7EC3FE900E9E410EB27FF5A72E7C8B5B" section-type="subsequent-section"><enum>3111.</enum><header display-inline="yes-display-inline">Designated contract markets</header>
<subsection commented="no" display-inline="no-display-inline" id="H44849C08947E4001B6EEF718F777D61B"><enum>(a)</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 paragraphs (1) and (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HEA39AE3C63FF4AFB92658F8B196CDECA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE3F09115BD4E44BDB600626EB5AAFED9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To be designated as, and to maintain the
designation of a board of trade as a contract market, the board of trade 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 board of trade shall have reasonable discretion in establishing
the manner in which it complies with the core principles.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1355255AE5545A1AF74C7E973CB7644"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance with rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H775FB6AF66E34058AC0BF0084AD908FE"><enum>(A)</enum><text display-inline="yes-display-inline">The board of trade shall monitor and
enforce compliance with the rules of the contract market, including access
requirements, the terms and conditions of any contracts to be traded on the
contract market and the contract market’s abusive trade practice
prohibitions.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BBB37C1597D4791B9E3129FDAE7C212"><enum>(B)</enum><text display-inline="yes-display-inline">The board of trade shall have the capacity
to detect, investigate, and apply appropriate sanctions to, any person or
entity that violates the rules.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H22DCB737F0BB4362BE5E414981CB5C1E"><enum>(C)</enum><text display-inline="yes-display-inline">The rules shall provide the board of trade
with the ability and authority to obtain any necessary information to perform
any of the functions described in this subsection, including the capacity to
carry out such international information-sharing agreements as the Commission
may
require.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9C2C0F739A33432296470B09D11F6ADA"><enum>(b)</enum><text display-inline="yes-display-inline">Section 5(d) of such Act (7 U.S.C. 7(d)) is
amended by striking paragraphs (4) and (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H62CC980E6F054F8C8B4A33A4D9FD3114" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA1D948CC4577425E9581E0C17C701BC6"><enum>(4)</enum><header display-inline="yes-display-inline">Prevention of market
disruption</header><text display-inline="yes-display-inline">The board of trade
shall have the capacity and responsibility to prevent manipulation, price
distortion, and disruptions of the delivery or cash-settlement process through
market surveillance, compliance, and enforcement practices and procedures,
including methods for conducting real-time monitoring of trading and
comprehensive and accurate trade reconstructions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H20688751E3774323ADC51B9FAD161E86"><enum>(5)</enum><header display-inline="yes-display-inline">Position limitations or
accountability</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H5E44079281C14D82922F5C262B4D2C54"><enum>(A)</enum><text display-inline="yes-display-inline">To reduce the potential threat of market
manipulation or congestion, especially during trading in the delivery month,
the board of trade shall adopt for each of its contracts, where necessary and
appropriate, position limitations or position accountability for
speculators.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H454438295DC8478A9CF819D5A1662C48"><enum>(B)</enum><text display-inline="yes-display-inline">For any contract that is subject to a
position limitation established by the Commission pursuant to section 4a(a),
the board of trade shall set its position limitation at a level no higher than
the Commission-established
limitation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD4C502ABB4DE4552B3BE56EB847FCF0C"><enum>(c)</enum><text display-inline="yes-display-inline">Section 5(d) of such Act (7 U.S.C. 7(d)) is
amended by striking paragraph (7) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF831AE37A82441FFBF57C63DEF8A7B21" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H95FD01B288D74DB7B24B980BB2B277CF"><enum>(7)</enum><header display-inline="yes-display-inline">Availability of general
information</header><text display-inline="yes-display-inline">The board of
trade shall make available to market authorities, market participants, and the
public accurate information concerning—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC269126F8E274F638B13379D78203FA7"><enum>(A)</enum><text display-inline="yes-display-inline">the terms and conditions of the contracts
of the contract market; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0881EEF0C9F24404AD775B943BAF7AD0"><enum>(B)</enum><text display-inline="yes-display-inline">the rules, regulations and mechanisms for
executing transactions on or through the facilities of the contract market, and
the rules and specifications describing the operation of the board of trade’s
electronic matching platform or other trade execution
facility.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC31CFC12220E4039B98964561FA26B05"><enum>(d)</enum><text display-inline="yes-display-inline">Section 5(d) of such Act (7 U.S.C. 7(d)) is
amended by striking paragraph (9) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9930178965374435998F856E55101699" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC618C5957AA34F94A607921A4E1021DE"><enum>(9)</enum><header display-inline="yes-display-inline">Execution of transactions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB6E414FB9DB14AABBF1DEDDF20519583"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H15D0A48DD1ED4C028743288523329F65"><enum>(B)</enum><text display-inline="yes-display-inline">The rules may authorize, for bona fide
business purposes—</text>
<clause commented="no" display-inline="no-display-inline" id="HEC34CC19472F44199360F4BBC5088171"><enum>(i)</enum><text display-inline="yes-display-inline">transfer trades or office trades;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H20FEED2CAB8246D3BDD5821F12D4D95D"><enum>(ii)</enum><text display-inline="yes-display-inline">an exchange of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2C5690B568514E7195BE5FA6D4A6F4AB"><enum>(I)</enum><text display-inline="yes-display-inline">futures in connection with a cash commodity
transaction;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H519860B6FC904B29B69BFACB83653800"><enum>(II)</enum><text display-inline="yes-display-inline">futures for cash commodities; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H73BB75E3BC1944E1AA8DDA26E7CFC623"><enum>(III)</enum><text display-inline="yes-display-inline">futures for swaps; or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H7BDFBC6D465D4A3FBF84A17D6059CE48"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H847680C14095435B99B93674C502D500"><enum>(e)</enum><text display-inline="yes-display-inline">Section 5(d)(17) of such Act (7 U.S.C.
7(d)(17)) is amended by adding at the end the following: <quote>The board of
trade shall keep any such records relating to swaps defined in section
1a(35)(A)(v) open to inspection and examination by the Securities and Exchange
Commission.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7020681691C143E4A928950DFE2C747E"><enum>(f)</enum><text display-inline="yes-display-inline">Section 5(d) of such Act (7 U.S.C. 7(d)) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6684D03F73F54DD98FC2A6C85A5092CD" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA6E3C38E106E4EE9BEBB6A37E1D377C3"><enum>(19)</enum><header display-inline="yes-display-inline">Financial resources</header><text display-inline="yes-display-inline">The board of trade shall have adequate
financial, operational, and managerial resources to discharge the
responsibilities of a contract market. For the financial resources of a board
of trade 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 1 year, calculated on a rolling basis.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74E829C90DD34C748A3275C444DB3715"><enum>(20)</enum><header display-inline="yes-display-inline">System safeguards</header><text display-inline="yes-display-inline">The board of trade shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8B952917421F4C36B80B200EB30A8471"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H48D377757FFF4AB6B92D5FE994F9CADF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF873575D33C74C8C9290A371FAE7181C"><enum>(C)</enum><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H95868C10A8BC43FC8AE9FDC1E7E215DA"><enum>(21)</enum><header display-inline="yes-display-inline">Diversity of boards of
directors</header><text display-inline="yes-display-inline">The board of trade,
if a publicly traded company, shall endeavor to recruit individuals to serve on
the board of directors and the other decision-making bodies (as determined by
the Commission) of the board of trade from among, and to have the composition
of the bodies reflect, a broad and culturally diverse pool of qualified
candidates.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2149D3AA12144CD88F7043377870660B"><enum>(22)</enum><header display-inline="yes-display-inline">Disciplinary procedures</header><text display-inline="yes-display-inline">The board of trade shall establish and
enforce disciplinary procedures that authorize the board of trade to
discipline, suspend, or expel members or market participants that violate the
rules of the board of trade, or similar methods for performing the same
functions, including delegation of the functions to third
parties.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7F8273B5BA7843CA83E7053D1326C45C"><enum>(g)</enum><text display-inline="yes-display-inline">Section 5 of such Act (7 U.S.C. 7) is
amended by striking subsection (b).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD6395B6A19CB4CA296F18184142987CC" section-type="subsequent-section"><enum>3112.</enum><header display-inline="yes-display-inline">Margin</header>
<subsection commented="no" display-inline="no-display-inline" id="HAF3B738D769D49D28E79F5060343C32D"><enum>(a)</enum><text display-inline="yes-display-inline">Section 8a(7)(C) of the Commodity Exchange
Act (7 U.S.C. 12a(7)(C)) is amended by striking <quote>, excepting the setting
of levels of margin</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8E1F57429B4A4172AC201CB69C0E04B7"><enum>(b)</enum><text display-inline="yes-display-inline">Section 8a(7) of such Act (7 U.S.C. 12a(7))
is amended by redesignating subparagraphs (D) through (F) as subparagraphs (E)
through (G), respectively, and inserting after subparagraph (C) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H03E085554D83466EB8FC10CFE17FDF2D" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HB38814A0BAAF43AFBC8DDCD0BCC631CE"><enum>(D)</enum><text display-inline="yes-display-inline">margin requirements, provided that such
rules, regulations, or orders shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H3A44666F5392401D8F1BAF978DA1A595"><enum>(i)</enum><text display-inline="yes-display-inline">be limited to protecting the financial
integrity of the derivatives clearing organization;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8396EACA464D4BB9A55B30F20ABE8778"><enum>(ii)</enum><text display-inline="yes-display-inline">be designed for risk management purposes in
order to protect the financial integrity of transactions; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H132A256B824547F9A8BA12B6F13DB9BC"><enum>(iii)</enum><text display-inline="yes-display-inline">not set specific margin
amounts.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3619BE4DCC69412485ECB52607DB4F29" section-type="subsequent-section"><enum>3113.</enum><header display-inline="yes-display-inline">Position limits</header>
<subsection commented="no" display-inline="no-display-inline" id="H941C3796006949E4BCFFBB7599A552F7"><enum>(a)</enum><text display-inline="yes-display-inline">Section 4a(a) of the Commodity Exchange Act
(7 U.S.C. 6a(a)) is amended by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3A0E791B1D8D4C63B99FDF419461365C"><enum>(1)</enum><text display-inline="yes-display-inline">inserting <quote>(1)</quote> after
<quote>(a)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E6D9604BACE442B889887C2CD330974"><enum>(2)</enum><text display-inline="yes-display-inline">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 registered
entities</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2E30C1F7655948D4AF395023E33EFE38"><enum>(3)</enum><text display-inline="yes-display-inline">inserting <quote>, including any group or
class of traders,</quote> in the second sentence after <quote>held by any
person</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD30C81B12FAA4C18B2871B4659F5FA3D"><enum>(4)</enum><text display-inline="yes-display-inline">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 registered entities,</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F1FCC69440F4F88B89ECAA14C84A2BD"><enum>(5)</enum><text display-inline="yes-display-inline">inserting at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9BD111EFACF04B96A4B8DD981F83E24B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1F721D93ED6F49F1AD28E95F1A22B3D9"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1D01C89ECB4D4588BF1911002E6FA22E"><enum>(A)</enum><text display-inline="yes-display-inline">In accordance with the standards set forth
in paragraph (1) of this subsection and consistent with the good faith
exception cited in subsection (b)(2), with respect to physical commodities
other than excluded commodities as defined by the Commission, the Commission
shall by rule, regulation, or order establish limits on the amount of
positions, as appropriate, other than bona fide hedge positions, that may be
held by any person with respect to contracts of sale for future delivery or
with respect to options on the contracts or commodities traded on or subject to
the rules of a designated contract market.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H350976E5204840579219A2394FDD2A73" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD8E9E7E1A7584F2CA74F159395EC9401"><enum>(i)</enum><text display-inline="yes-display-inline">For exempt commodities, the limits shall be
established within 180 days after the date of the enactment of this
paragraph.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF74C4B316CA946A9AAD607DE96670A9F" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">For agricultural commodities, the limits
shall be established within 270 days after the date of the enactment of this
paragraph.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCFE3FC7A281145358D1B1D3CFADC5FE8" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">In establishing the limits, the Commission
shall strive to ensure that trading on foreign boards of trade in the same
commodity will be subject to comparable limits and that any limits to be
imposed by the Commission will not cause price discovery in the commodity to
shift to trading on the foreign boards of trade.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H154AA4E407344480AA76D132D2040203"><enum>(3)</enum><text display-inline="yes-display-inline">In establishing the limits required in
paragraph (2), the Commission, as appropriate, shall set limits—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H886CECB25B9645BEA110E01FF3489C69"><enum>(A)</enum><text display-inline="yes-display-inline">on the number of positions that may be held
by any person for the spot month, each other month, and the aggregate number of
positions that may be held by any person for all months; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8BE7145ED6E04132BD576B708FFCDA2D"><enum>(B)</enum><text display-inline="yes-display-inline">to the maximum extent practicable, in its
discretion—</text>
<clause commented="no" display-inline="no-display-inline" id="H1D0F8F4B9B6E4A00A6602D606BB32F28"><enum>(i)</enum><text display-inline="yes-display-inline">to diminish, eliminate, or prevent
excessive speculation as described under this section;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6A4B46A2B8454A2881FE978A2343AA2C"><enum>(ii)</enum><text display-inline="yes-display-inline">to deter and prevent market manipulation,
squeezes, and corners;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H72B95EE44DE14BA0B772E742C6016FBC"><enum>(iii)</enum><text display-inline="yes-display-inline">to ensure sufficient market liquidity for
bona fide hedgers; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9D280329BAEA4703938F90636F2905FD"><enum>(iv)</enum><text display-inline="yes-display-inline">to ensure that the price discovery function
of the underlying market is not disrupted.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7556975FA2AA451490511EBE53A3F855"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HA607B256CB224214ADE4E8A188AE9716"><enum>(A)</enum><text display-inline="yes-display-inline">Not later than 150 days after the
establishment of position limits pursuant to paragraph (2), and biannually
thereafter, the Commission shall hold 2 public hearings, 1 for agriculture
commodities and 1 for energy commodities as such terms are defined by the
Commission, in order to receive recommendations regarding the position limits
to be established in paragraph (2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6F4F1B2723B54C06B34A07D9BD8D90FF" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Each public hearing held pursuant to
subparagraph (A) shall, at a minimum providing there is sufficient interest,
receive recommendations from—</text>
<clause commented="no" display-inline="no-display-inline" id="H4C208AB7321340759B8CF7C6CD6DEB30"><enum>(i)</enum><text display-inline="yes-display-inline">7 predominantly commercial short hedgers of
the actual physical commodity for future delivery;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H89551F9B914D406EBDF24855A01F2BED"><enum>(ii)</enum><text display-inline="yes-display-inline">7 predominantly commercial long hedgers of
the actual physical commodity for future delivery;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3D1DA11FD1C74265A8BC60ADD414729A"><enum>(iii)</enum><text display-inline="yes-display-inline">4 non-commercial participants in markets
for commodities for future delivery; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0288EF9E58DD4CEEB1017DC23B3CEE80"><enum>(iv)</enum><text display-inline="yes-display-inline">each designated contract market upon which
a contract in the commodity for future delivery is traded.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB7FFBA43AA33454DA7CF0D58E506CFE7" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">Within 60 days after each public hearing
held pursuant to subparagraph (A), the Commission shall publish in the Federal
Register its response to the recommendations regarding position limits heard at
the hearing.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4253F1D060A947BAAA44A0064FD680FF"><enum>(5)</enum><header display-inline="yes-display-inline">Significant price discovery
function</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9ADA827CB2DE4F8FBCF6B3047C462F0F"><enum>(A)</enum><header display-inline="yes-display-inline">Price linkage</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA5E23520B51B4CF7BD253B4D5FF18048"><enum>(B)</enum><header display-inline="yes-display-inline">Arbitrage</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6BECE0EC98E147BF83EA22810F1D99EA"><enum>(C)</enum><header display-inline="yes-display-inline">Material price reference</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75BBFE8EA9044500B99BD2757CD53E02"><enum>(D)</enum><header display-inline="yes-display-inline">Material liquidity</header><text display-inline="yes-display-inline">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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75CFC99C03F44D0CA9ED7563D701FDFA"><enum>(E)</enum><header display-inline="yes-display-inline">Other material factors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H643D8616AAFE44DC9147820E4C1541FF"><enum>(6)</enum><header display-inline="yes-display-inline">Economically equivalent contracts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H77728F317226497E97ED2CA5BD0B6A95"><enum>(A)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this
section, the Commission shall establish limits on the amount of positions,
including aggregate position limits, as appropriate, other than bona fide hedge
positions, that may be held by any person with respect to swaps that are
economically equivalent to contracts of sale for future delivery or to options
on the contracts or commodities traded on or subject to the rules of a
designated contract market subject to paragraph (2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDFA2199094A74BF09B4DD6A9FCA027BD"><enum>(B)</enum><text display-inline="yes-display-inline">In establishing limits pursuant to
subparagraph (A), the Commission shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H0A1577A4163D48F9BDC292EEAA9A4CB9"><enum>(i)</enum><text display-inline="yes-display-inline">develop the limits concurrently with limits
established under paragraph (2), and the limits shall have similar requirements
as under paragraph (3)(B); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H66481D5256B041E6982AD5E71743C61E"><enum>(ii)</enum><text display-inline="yes-display-inline">establish the limits simultaneously with
limits established under paragraph (2).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DACC308DD8944648A0B2B52C15A0ED6"><enum>(7)</enum><header display-inline="yes-display-inline">Aggregate position limits</header><text display-inline="yes-display-inline">The Commission shall, by rule or
regulation, establish limits (including related hedge exemption provisions) on
the aggregate number or amount of positions in contracts based upon the same
underlying commodity (as defined by the Commission) that may be held by any
person, including any group or class of traders, for each month across—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H49E0A3035CD94CDFB3BE5425B06545A2"><enum>(A)</enum><text display-inline="yes-display-inline">contracts listed by designated contract
markets;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H371B8DA1636E4A22B7E490E886745651"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to an agreement contract, or
transaction that settles against any price (including the daily or final
settlement price) of 1 or more contracts listed for trading on a registered
entity, contracts traded on a foreign board of trade that provides members or
other participants located in the United States with direct access to its
electronic trading and order matching system; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H72DA35D7A0F44D6885616B8A4E3BF0B2"><enum>(C)</enum><text display-inline="yes-display-inline">swap contracts that perform or affect a
significant price discovery function with respect to regulated entities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAB51A8C85E734D4884C4404B3614C5FC"><enum>(8)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">The Commission, by rule, regulation, or
order, may exempt, conditionally or unconditionally, any person or class of
persons, any swap or class of swaps, any contract of sale of a commodity for
future delivery or class of such contracts, any option or class of options, or
any transaction or class of transactions from any requirement it may establish
under this section with respect to position
limits.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0EB6607C8A6E44328CD045FA4B1813F3"><enum>(b)</enum><text display-inline="yes-display-inline">Section 4a(b) of such Act (7 U.S.C. 6a(b))
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A1895516ADF4D76BA6746FCFB43217C"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H346389BA0F3B4AC69BF853C6C7728173"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>or
derivatives transaction execution facility or facilities or electronic trading
facility</quote> and inserting <quote>or swap execution
facility</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD1A5AA91732A41CCBB7759579EA9F9AC"><enum>(c)</enum><text display-inline="yes-display-inline">Section 4a(c) of such Act is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB7B109A5FA4148F49A9B750DE1AC1440"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)</quote> after
<quote>(c)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H44DA1A5D581B48FE8177E4321F50B84B"><enum>(2)</enum><text display-inline="yes-display-inline">by adding after and below the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H5D083AB0738A430B91D65FC939359DB0" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD355CE04E76B44408FC16D494C0447F7"><enum>(2)</enum><text display-inline="yes-display-inline">For the purposes of implementation of
subsection (a)(2) for contracts of sale for future delivery or options on the
contracts or commodities, the Commission shall define what constitutes a bona
fide hedging transaction or position as a transaction or position that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H98352802483A4AE0B029E107BB6B7758"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H00F3E555DF564A7CAFBA7D41FD124CA3"><enum>(i)</enum><text display-inline="yes-display-inline">represents a substitute for transactions
made or to be made or positions taken or to be taken at a later time in a
physical marketing channel;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2537E9798724450C800536F39FDF72BA" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">is economically appropriate to the
reduction of risks in the conduct and management of a commercial enterprise;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H58864E864D8948F79316DBD2019E2981" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">arises from the potential change in the
value of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2B8906B6A4ED4ABA92D024824BCEF704"><enum>(I)</enum><text display-inline="yes-display-inline">assets that a person owns, produces,
manufactures, processes, or merchandises or anticipates owning, producing,
manufacturing, processing, or merchandising;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC4E4EFA98B90416FA8B25915679C21C0"><enum>(II)</enum><text display-inline="yes-display-inline">liabilities that a person owns or
anticipates incurring; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB0DAD57082774D0E8B119E499999D864"><enum>(III)</enum><text display-inline="yes-display-inline">services that a person provides, purchases,
or anticipates providing or purchasing; or</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5055706DBC0842F8B6CC07D10B903280"><enum>(B)</enum><text display-inline="yes-display-inline">reduces risks attendant to a position
resulting from a swap that—</text>
<clause commented="no" display-inline="no-display-inline" id="HBBE2793A12E846BDA19C333E50EA20B5"><enum>(i)</enum><text display-inline="yes-display-inline">was executed opposite a counterparty for
which the transaction would qualify as a bona fide hedging transaction pursuant
to subparagraph (A); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H391111830B1747C58B11C203581D3545"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of subparagraph
(A).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H170C80908DE34AE5B1FDD7DDFB230C59"><enum>(d)</enum><text display-inline="yes-display-inline">This section shall become effective on the
date of its enactment.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H454C76BADD7A4A0CA5CC49CD66680724" section-type="subsequent-section"><enum>3114.</enum><header display-inline="yes-display-inline">Enhanced authority over registered
entities</header>
<subsection commented="no" display-inline="no-display-inline" id="H3062C7E4FB1147898ABCF7EB649750BA"><enum>(a)</enum><text display-inline="yes-display-inline">Section 5c(a) of the Commodity Exchange Act
(7 U.S.C. 7a–2(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF60D2D95CAB644D5AF235DF15C97B56B"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>5a(d)
and 5b(c)(2)</quote> and inserting <quote>5b(c)(2) and 5h(e)</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6CDCA6C830A54B09BD3E44680F52E846"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>shall
not</quote> and inserting <quote>may</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6664A33F785A4F229616062CA2A3AD73"><enum>(b)</enum><text display-inline="yes-display-inline">Section 5c(b) of such Act (7 U.S.C.
7a–2(b)) is amended in each of paragraphs (1), (2), and (3) by inserting
<quote>or swap execution facility</quote> after <quote>contract market</quote>
each place it appears.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1D837A17983B421B93CA8A54988565BE"><enum>(c)</enum><text display-inline="yes-display-inline">Section 5c(c)(1) of such Act (7 U.S.C.
7a–2(c)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAB0AE5B8C1914BD28A802DB77CB09E99"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(A)</quote> after
<header-in-text level="subsection" style="OLC"><quote>In
general.—</quote></header-in-text>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6127C9A246BA4B03A06F968A65BF7310"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H400971F235B44C88B6B27A4C7C708A2B" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H81A617F7F93D4DE7BE23C6DF69AA8DAD" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The new rule or rule amendment shall become
effective, pursuant to the registered entity’s certification and notice of such
certification to its members (in a manner to be determined by the Commission),
10 business days after the Commission’s receipt of the certification (or such
shorter period determined by the Commission by rule or regulation) unless the
Commission notifies the registered entity within such time that it is staying
the certification because there exist novel or complex issues that require
additional time to analyze, an inadequate explanation by the submitting
registered entity, or a potential inconsistency with this Act (including
regulations under this Act).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7D86EAF6A65546D6881843E035D51CFD" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="HD9E6C643AFC2420886ECABBA9B3978FC"><enum>(i)</enum><text display-inline="yes-display-inline">A notification by the Commission pursuant
to subparagraph (B) shall stay the certification of the new contract or
instrument or clearing of the new contract or instrument, new rule or new
amendment for up to an additional 90 days from the date of the
notification.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H69B5404A92814502A4261412BC4ABE09" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">The Commission shall provide at least a
30-day public comment period, within the 90-day period in which the stay is in
effect described in clause (i), whenever it reviews a rule or rule amendment
pursuant to a notification by the Commission under this
paragraph.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H818A76AFE77C4933BB1E7CAADD8D5BBC"><enum>(d)</enum><text display-inline="yes-display-inline">Section 5c(d) of such Act (7 U.S.C.
7a–2(d)) is repealed.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5F76716F09DB4A9D83D30BF8445B63BC" section-type="subsequent-section"><enum>3115.</enum><header display-inline="yes-display-inline">Foreign boards of trade</header>
<subsection commented="no" display-inline="no-display-inline" id="H2BF1C8EFAA1A420E9542EF7D6302B3F3"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H80D3174BF67C4AC29D8735A8305B3B69" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3E395AD60A6740F2B722F1C2AA8C250D"><enum>(e)</enum><header display-inline="yes-display-inline">Foreign boards of trade</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD48D5F8B229F4527AF269FFBC947C715"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission may not permit a foreign
board of trade to provide to the members of the foreign board of trade or other
participants located in the United States direct access to the electronic
trading and order-matching system of the foreign board of trade with respect to
an agreement, contract, or transaction that settles against any price
(including the daily or final settlement price) of 1 or more contracts listed
for trading on a registered entity, unless the Commission determines
that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H13DF735CC23E462C9306F91BDF70D0EC"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0CA3DFBF2E94E9F82058C1C887D5F18"><enum>(B)</enum><text display-inline="yes-display-inline">the foreign board of trade (or the foreign
futures authority that oversees the foreign board of trade)—</text>
<clause commented="no" display-inline="no-display-inline" id="H9AB65BAA8B7C496A962BE760A6991654"><enum>(i)</enum><text display-inline="yes-display-inline">adopts position limits (including related
hedge exemption provisions) for the agreement, contract, or transaction that
are comparable, taking into consideration the relative sizes of the respective
markets, 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 commented="no" display-inline="no-display-inline" id="HFDDDBF8DD2F24A9582EA0EF7099102FA"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H436D53B33872499DABCA935EFC745CEC"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF17B6B5F45514529B53F459DBE6283D9"><enum>(I)</enum><text display-inline="yes-display-inline">the information that the foreign board of
trade will make publicly available;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H406B4BC9FFB140449E5B07575512E7BE"><enum>(II)</enum><text display-inline="yes-display-inline">the position limits that the foreign board
of trade or foreign futures authority will adopt and enforce;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4149B73C07F84F76B3B9CD1D07B0357D"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFEC1F4BB85EA48668C5A8317A8729139"><enum>(IV)</enum><text display-inline="yes-display-inline">any other area of interest expressed by the
Commission to the foreign board of trade or foreign futures authority;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HF9C18A9AAB0F4DE1988688137101232C"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD91FAE11A9B948299633AF557ED316CD"><enum>(v)</enum><text display-inline="yes-display-inline">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 the 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 commented="no" display-inline="no-display-inline" id="H31AC81F8BC874EBA95C44B83C247639D"><enum>(2)</enum><header display-inline="yes-display-inline">Existing foreign boards of
trade</header><text display-inline="yes-display-inline">Paragraph (1) 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 commented="no" display-inline="no-display-inline" id="H10CA445968EA494CB8A0F87F132C4F94"><enum>(3)</enum><header display-inline="yes-display-inline">Persons located in the united
states</header>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBAF314F99E0942B3BF9EC9B2AB37E4AB"><enum>(b)</enum><header display-inline="yes-display-inline">Liability of registered persons trading on
a foreign board of trade</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAAE41DEAA3DD4E2BA4FB486A417E2CEE"><enum>(1)</enum><text display-inline="yes-display-inline">Section 4(a) of such 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 commented="no" display-inline="no-display-inline" id="HE26EA18A89AE4433BEDD1CAA626ED420"><enum>(2)</enum><text display-inline="yes-display-inline">Section 4 of such Act (7 U.S.C. 6) is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H83D924C40FA143288DCBBE00BC6FAF2D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE292FD9CA212404088057368CF417B28"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H49A2D93AF8374630BA1EDB21BE598639"><enum>(1)</enum><text display-inline="yes-display-inline">A person registered with the Commission, or
exempt from registration by the Commission, under this Act may not be found to
have violated subsection (a) with respect to a transaction in, or in connection
with, a contract of sale of a commodity for future delivery if the
person—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC1086CF89E174DF892BEAB048F4D3556" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">has reason to believe that the transaction
and the contract is made on or subject to the rules of a foreign board of trade
that is—</text>
<clause commented="no" display-inline="no-display-inline" id="HD64B769591174D8F898152254C105530"><enum>(i)</enum><text display-inline="yes-display-inline">legally organized under the laws of a
foreign country;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1A145C69CACB427DB99227A0036041DE"><enum>(ii)</enum><text display-inline="yes-display-inline">authorized to act as a board of trade by a
foreign futures authority; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2123F4C9F8BC467292698D2645D57584"><enum>(iii)</enum><text display-inline="yes-display-inline">subject to regulation by the foreign
futures authority; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9488764DA4104F4A99B251112993875F" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">has not been determined by the Commission
to be operating in violation of subsection (a).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97CF2563EC0448BE8DA36923B32C8821" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Nothing in this subsection shall be
construed as implying or creating any presumption that a board of trade,
exchange, or market is located outside the United States, or its territories or
possessions, for purposes of subsection
(a).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H30141F09CD39487F8D2AFDB6C4EE1D9C"><enum>(c)</enum><header display-inline="yes-display-inline">Contract enforcement for foreign futures
contracts</header><text display-inline="yes-display-inline">Section 22(a) of
such Act (7 U.S.C. 25(a)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H210BD6BF8890496782AAC218E0039ED8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3CB941FF9ED54CE4BAAA6FFB2D67A28E"><enum>(5)</enum><header display-inline="yes-display-inline">Contract enforcement for foreign futures
contracts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C07D54D4FC24AE78F544E121E49F3F1" section-type="subsequent-section"><enum>3116.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H1CF316790B354A3793462C1ED9C29447" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H22E4487269884B76A5410BAD689D30AB"><enum>(4)</enum><header display-inline="yes-display-inline">Contract enforcement between eligible
counterparties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDCA0AB057FCA4546929FDA2A4CE0EF91"><enum>(A)</enum><text display-inline="yes-display-inline">A hybrid instrument sold to any investor
shall not be void, voidable, or unenforceable, and a party to such a hybrid
instrument shall not 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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H397E2E79F8344116807EEA6CF47F93CE"><enum>(B)</enum><text display-inline="yes-display-inline">An agreement, contract, or transaction
between eligible contract participants or persons reasonably believed to be
eligible contract participants shall not be void, voidable, or unenforceable,
and a party thereto shall not be entitled to rescind, or recover any payment
made with respect to, such an 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, be traded in the manner set forth in section
2(k)(1), or be cleared pursuant to 2(j)(1) or regulations of the Commission
pursuant
thereto.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H36646F884F0C4AD1BD3DD78347094E9C" section-type="subsequent-section"><enum>3117.</enum><header display-inline="yes-display-inline">FDICIA amendments</header><text display-inline="no-display-inline">Sections 408 and 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4421 and 4422) are
repealed.</text>
</section><section commented="no" display-inline="no-display-inline" id="H23E318D70C114358B06C5E4BB939805E" section-type="subsequent-section"><enum>3118.</enum><header display-inline="yes-display-inline">Enforcement authority</header>
<subsection commented="no" display-inline="no-display-inline" id="HD53F0BFE7BAD4DF79E4EDD1FA8D28F3E"><enum>(a)</enum><text display-inline="yes-display-inline">The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is amended by inserting after section 4b the following:</text>
<quoted-block display-inline="no-display-inline" id="HE2D119E4599F4DB0A246FDC8E3476B55" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HABA227D004D94882AE8C170DBEE456C4" section-type="subsequent-section"><enum>4b–1.</enum><header display-inline="yes-display-inline">Enforcement authority</header>
<subsection commented="no" display-inline="no-display-inline" id="HDBFA538C38D34113859B993D74AF68E7"><enum>(a)</enum><header display-inline="yes-display-inline">CFTC</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the
Commission shall have exclusive authority to enforce the provisions of subtitle
A of the <short-title>Derivative Markets Transparency and
Accountability Act of 2009</short-title> with respect to any person.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD2729E2744B248C7BAEAD46C1EEFD188"><enum>(b)</enum><header display-inline="yes-display-inline">Prudential regulators</header><text display-inline="yes-display-inline">The Prudential Regulators shall have
exclusive authority to enforce the provisions of section 4s(d) 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 commented="no" display-inline="no-display-inline" id="H2EF9C3946EA54702846E6E88CEA6EF1A"><enum>(c)</enum><header display-inline="yes-display-inline">Referral</header><paragraph commented="no" display-inline="yes-display-inline" id="HA13AA6B5766A4322946B02BC1D82EF0C"><enum>(1)</enum><text display-inline="yes-display-inline">If the Prudential Regulator for a swap
dealer or major swap participant has cause to believe that the 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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6B8B1089ADF640CFABF853176A3CB301" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">If the Commission has cause to believe that
a swap dealer or major swap participant that has a Prudential Regulator may
have engaged in conduct that constitutes a violation of the prudential
requirements of section 4s or rules adopted thereunder, the Commission may
recommend in writing to the Prudential Regulator that the Prudential Regulator
initiate an enforcement proceeding as authorized under this Act. The
recommendation shall be accompanied by a written explanation of the concerns
given rise to the
recommendation.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD5F24E9808D641468A52E9B77BD1A764"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H1E1127EE340B459A865DDE95B586365B"><enum>(1)</enum><text display-inline="yes-display-inline">Section 4c(a) of such Act (7 U.S.C. 6c(a))
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF89DE0973B244731974E5A150E22E3E0" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC910CDE0A8B442139C829D66AD162A5E"><enum>(3)</enum><header display-inline="yes-display-inline">Disruptive practices</header><text display-inline="yes-display-inline">It shall be unlawful for any person to
engage in any trading or practice on or subject to the rules of a registered
entity that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA39194B546764139ABB4D57C6835F4FD"><enum>(A)</enum><text display-inline="yes-display-inline">violates bids and offers (intentionally
bidding at a price higher than the lowest offer, or offering at a price lower
than the highest bid);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1A63B75F854747D99759042BD8EB7054"><enum>(B)</enum><text display-inline="yes-display-inline">is, is of the character of, or is commonly
known to the trade as <quote>marking the close</quote> (bidding or offering
during or near the market’s closing period with the intent to influence the
settlement price);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2606DD34677C4D3DAACD091700496A45"><enum>(C)</enum><text display-inline="yes-display-inline">is, is of the character of, or is commonly
known to the trade as <quote>spoofing</quote> (bidding or offering with the
intent to cancel the bid or offer before execution); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE4914A32D6014613A1424ADA8A5EB260"><enum>(D)</enum><text display-inline="yes-display-inline">constitutes uneconomic trading (trading
that has no legitimate economic purpose but for the effect on price).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF573F34CC60045D6826960769E377504"><enum>(4)</enum><text display-inline="yes-display-inline">The Commission may make and promulgate such
rules and regulations as, in the judgment of the Commission, are reasonably
necessary to prohibit any other trading practice that is disruptive of fair and
equitable
trading.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5C5AF923A864273B37E9286A243351B" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The amendment made by paragraph (1) shall
become effective upon enactment.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7AF7214930544B9892B92D2968CCEFEA" section-type="subsequent-section"><enum>3119.</enum><header display-inline="yes-display-inline">Enforcement</header>
<subsection commented="no" display-inline="no-display-inline" id="HC1E8F62C9EA04B879802372C53C371C6"><enum>(a)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2556CB31493B4AD995BBF7075A1E745C"><enum>(b)</enum><text display-inline="yes-display-inline">Section 4b(b) of such 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 commented="no" display-inline="no-display-inline" id="H7EC80B6A3ED14FE19A25113B6E5E7E84"><enum>(c)</enum><text display-inline="yes-display-inline">Section 4c(a) of such 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 commented="no" display-inline="no-display-inline" id="H12F38DE670AA49DDB9F67FCD02FCFFAE"><enum>(d)</enum><text display-inline="yes-display-inline">Section 9(a)(2) of such 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 commented="no" display-inline="no-display-inline" id="HED62EADAD91A4F8097613FC0FB6E5D0A"><enum>(e)</enum><text display-inline="yes-display-inline">Section 9(a)(4) of such 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 commented="no" display-inline="no-display-inline" id="HC5F8BBB708DF4746B1D68C21A382D100"><enum>(f)</enum><text display-inline="yes-display-inline">Section 9(e)(1) of such 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 commented="no" display-inline="no-display-inline" id="HC914AF8447FC44108F09CD92C81E4010"><enum>(g)</enum><text display-inline="yes-display-inline">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 inserting after
paragraph (5) the following:</text>
<quoted-block display-inline="no-display-inline" id="H9426D5848D8D4A3AA7D3BD71057F6860" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE242C1A39B03471C99326D24760381AE"><enum>(6)</enum><text display-inline="yes-display-inline">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, security-based 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>Derivative Markets Transparency and
Accountability Act of
2009</short-title>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC8EF63CBFC9145BF95796FEC03068661" section-type="subsequent-section"><enum>3120.</enum><header display-inline="yes-display-inline">Retail commodity transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="HE0A77C72730C434CB3957A9E605AA418"><enum>(a)</enum><text display-inline="yes-display-inline">Section 2(c) of the Commodity Exchange Act
(7 U.S.C. 2(c)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H46C9074409CD40E1A89F5CE84FE49302"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>(other
than section 5a (to the extent provided in section 5a(g)), 5b, 5d, or
12(e)(2)(B))</quote> and inserting <quote>(other than section 5b or
12(e)(2)(B))</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC251E72B624436EA892278D8F8A4F13"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting after
subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5265755B106D4855B591ABB471ED388A" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H26FF9B76B0F0443BAC93DD812E242124"><enum>(D)</enum><header display-inline="yes-display-inline">Retail commodity transactions</header>
<clause commented="no" display-inline="no-display-inline" id="HC56F7ED6E8534CFDAB1FE31C2550D328"><enum>(i)</enum><text display-inline="yes-display-inline">This subparagraph shall apply to, and the
Commission shall have jurisdiction over, any agreement, contract, or
transaction in any commodity that is—</text>
<subclause commented="no" display-inline="no-display-inline" id="HC871A1BBF51B4D23BE4893DDAE907BDC"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H901AE947A34B4CB89D481401E286C32B"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7472F1D765FB4F089415885CF77BBDB4"><enum>(ii)</enum><text display-inline="yes-display-inline">Clause (i) shall not apply to—</text>
<subclause commented="no" display-inline="no-display-inline" id="HDC95447ABA8347B1B71AE9F0C9BBF3B6"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9C752385602D40D8923A5DFE69B988F4"><enum>(II)</enum><text display-inline="yes-display-inline">any security;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF6A897DDEE054DFDB09BDE5E55FB8CA5"><enum>(III)</enum><text display-inline="yes-display-inline">a contract of sale that—</text>
<item commented="no" display-inline="no-display-inline" id="H78CB7ED4DB7E4BDE96890EB915A16FA5"><enum>(aa)</enum><text display-inline="yes-display-inline">results in actual delivery within 28 days
or such other longer period as the Commission may determine by rule or
regulation based upon the typical commercial practice in cash or spot markets
for the commodity involved; or</text>
</item><item commented="no" display-inline="no-display-inline" id="HCC8AB476535B437E93983D5C03D80733"><enum>(bb)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE12765A7754947248221B625A3880362"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28E91045B43B4B009FB189BD5224C5E1"><enum>(V)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H798F02E8E0B542D98224649A8AD4E6C4"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H704088F6350C4085809F0BFECC22006F"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAFAB82C2BAC045C18648B53EBA3D5D38"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCB227A91A6D54D2FBB78E7381FCCFB64"><enum>(vi)</enum><text display-inline="yes-display-inline">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></subsection><subsection commented="no" display-inline="no-display-inline" id="HD136FBB2F8314C438AFAFB078551746A"><enum>(b)</enum><text display-inline="yes-display-inline">The amendments made by subsection (a) shall
become effective on the date of the enactment of this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HCC86840D71374DBF855C49D0B498C92D" section-type="subsequent-section"><enum>3121.</enum><header display-inline="yes-display-inline">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 inserting after section 4s (as added by section 3107 of
this Act) the following:</text>
<quoted-block display-inline="no-display-inline" id="H03795912A6B348389AB060DA12841165" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H862FDEDD77984097BF446381D88774FF" section-type="subsequent-section"><enum>4t.</enum><header display-inline="yes-display-inline">Large swap trader reporting</header>
<subsection commented="no" display-inline="no-display-inline" id="H1E93697865AB4A3087B525FBFB2D34CA"><enum>(a)</enum><text display-inline="yes-display-inline">It shall be unlawful for any person to
enter into any swap that performs or affects a significant price discovery
function with respect to registered entities if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF6CD15C181D54D7EA13769BC45CEDFF2"><enum>(1)</enum><text display-inline="yes-display-inline">the person directly or indirectly enters
into such swaps during any 1 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 commented="no" display-inline="no-display-inline" id="H2624D002560A41349A00CD59F7DA12C0"><enum>(2)</enum><text display-inline="yes-display-inline">such person directly or indirectly has or
obtains 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 commented="no" continuation-text-level="subsection">unless the person files or causes to
be filed with the properly designated officer of the Commission such reports
regarding any transactions or positions described in 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, the person keeps books and records
of all such swaps and any transactions and positions in any related commodity
traded on or subject to the rules of any 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 commented="no" display-inline="no-display-inline" id="HDF0EE54633B647309BB543D3D1A88AB4"><enum>(b)</enum><text display-inline="yes-display-inline">The books and records shall show complete
details concerning all transactions and positions as the Commission may by rule
or regulation prescribe.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H08065201E8C04FE49F213F0AB97CED66"><enum>(c)</enum><text display-inline="yes-display-inline">The books and records shall be open at all
times to inspection and examination by any representative of the
Commission.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEA33AA8C076A4B4F92FBBB2948B9CD0F"><enum>(d)</enum><text display-inline="yes-display-inline">For the purpose of this subsection, the
swaps, futures and cash or spot transactions and positions of any person shall
include the transactions and positions of any persons directly or indirectly
controlled by the person.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3FB369FAF88941C09C63AC08FA69BFF8"><enum>(e)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5A7020E2F4994887B313FE9629162EF1" section-type="subsequent-section"><enum>3122.</enum><header display-inline="yes-display-inline">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 4t the following:</text>
<quoted-block display-inline="no-display-inline" id="HDC791F5CE00440428B34F56C77C5CDFE" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H3EBC963326374B5098718AD4590142EC" section-type="subsequent-section"><enum>4u.</enum><header display-inline="yes-display-inline">Segregation of assets held as collateral in
over-the-counter swap transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="H11906B5692864F6488DF107F693C983A"><enum>(a)</enum><header display-inline="yes-display-inline">Segregation</header><text display-inline="yes-display-inline">At the request of a swap counterparty who
provides funds or other property to a swap dealer 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 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 commented="no" display-inline="no-display-inline" id="H1A002195D02147A3B59812CE2BD3EC63"><enum>(b)</enum><header display-inline="yes-display-inline">Further audit reporting</header><text display-inline="yes-display-inline">If a swap dealer does not segregate funds
pursuant to 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 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 commented="no" display-inline="no-display-inline" id="HADEF7EA207984199953CC5AA66B73DF7" section-type="subsequent-section"><enum>3123.</enum><header display-inline="yes-display-inline">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 Securities and Exchange Commission, or other Federal or State
agency, of any authority derived from any other applicable law.</text>
</section><section commented="no" display-inline="no-display-inline" id="HC15B57533B8F4A60801F8E944D8C27DF" section-type="subsequent-section"><enum>3124.</enum><header display-inline="yes-display-inline">Antitrust</header><text display-inline="no-display-inline">Nothing in the amendments made by this
subtitle 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 the term in subsection
(a) of the first section of the Clayton Act, except that the 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 commented="no" display-inline="no-display-inline" id="HB649132CC9F941D49B2FAD869ACEC7B1" section-type="subsequent-section"><enum>3125.</enum><header display-inline="yes-display-inline">Review of prior actions</header><text display-inline="no-display-inline">Notwithstanding any other provision of the
Commodity Exchange Act, the Commodity Futures Trading Commission shall review,
as appropriate, all regulations, rules, exemptions, exclusions, guidance, no
action letters, orders, other actions taken by or on behalf of the Commission,
and any action taken pursuant to the Commodity Exchange Act by an exchange,
self-regulatory organization, or any other registered entity, that are
currently in effect, to ensure that such prior actions are in compliance with
the provisions of this title.</text>
</section><section commented="no" display-inline="no-display-inline" id="HBFCE0B8BBA4844E5A0FB500B0E56CD66" section-type="subsequent-section"><enum>3126.</enum><header display-inline="yes-display-inline">Expedited process</header><text display-inline="no-display-inline">The Commodity Futures Trading Commission may
use emergency and expedited procedures (including any administrative or other
procedure as appropriate) to carry out this title if, in its discretion, it
deems it necessary to do so.</text>
</section><section commented="no" display-inline="no-display-inline" id="HC4F6D8F52D2F470AA2F41B6C585218BD" section-type="subsequent-section"><enum>3127.</enum><header display-inline="yes-display-inline">Effective date</header>
<subsection commented="no" display-inline="no-display-inline" id="H88A839A37E574504A27A57D93E692F5E"><enum>(a)</enum><text display-inline="yes-display-inline">Unless otherwise provided, the provisions
of this subtitle shall become effective the later of 270 days after the date of
the enactment of this subtitle or, to the extent a provision of this subtitle
requires rulemaking, no less than 60 days after publication of a final rule or
regulation implementing such provision of this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9AB21A3F65774A0F8F05233124902E08"><enum>(b)</enum><text display-inline="yes-display-inline">Subsection (a) shall not preclude the
Commodity Futures Trading Commission from any rulemaking required or directed
under this subtitle to implement the provisions of this subtitle.</text>
</subsection></section></subtitle><subtitle commented="no" id="H59FD1F324C664AF59E0EBDEF8BB8D250" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Regulation of Security-Based Swap
Markets</header>
<section commented="no" display-inline="no-display-inline" id="HF2F11766A476400B802108128FE3756A" section-type="subsequent-section"><enum>3201.</enum><header display-inline="yes-display-inline">Definitions under the Securities Exchange
Act of 1934</header>
<subsection commented="no" display-inline="no-display-inline" id="H6611479C9C6A458BA145A11FA0A7EFE4"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H547A4E15F96B40FCB62620E41AE256E0"><enum>(1)</enum><text display-inline="yes-display-inline">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 the word
<quote>securities</quote> in each place it appears;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF18DD3BDA49B46C6B4CEEB2F0FA3CBFD"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (10), by inserting
<quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6BB6174F01CC4671B0CF62C089CF25D7"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H605EABFECAD84E4888BFEA4F81723AB5"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCD2E7A87BD024FFE84E661F811E1294E"><enum>(5)</enum><text display-inline="yes-display-inline">in paragraph (39)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4307E0700BA84FF1819E5C102EA6B88B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>or government securities
dealer</quote> and adding <quote>government securities dealer, security-based
swap dealer or major security-based swap participant</quote> in its place in
subparagraph (B)(i)(I);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7BC76DEF2073460B8C44E0EB6DFF568D"><enum>(B)</enum><text display-inline="yes-display-inline">by adding <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 commented="no" display-inline="no-display-inline" id="H559CC1FA7BFB42C988DF78EA83EC62A3"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>or government securities
dealer</quote> and adding <quote>government securities dealer, security-based
swap dealer or major security-based swap participant</quote> in its place in
subparagraph (C); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3B1D397567C4A3B82EEC8B905C0DCF0"><enum>(D)</enum><text display-inline="yes-display-inline">by adding <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 commented="no" display-inline="no-display-inline" id="H2F1C78001B7B42FDBB7FD4E4AEA29985"><enum>(6)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB5E387BCC14841F2A7ECCE92C9EDA6E8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H51B0EA0C4FE447EE998F835FA76D79A7"><enum>(65)</enum><header display-inline="yes-display-inline">Eligible contract participant</header><text display-inline="yes-display-inline">The term <term>eligible contract
participant</term> has the same meaning as in section 1a(12) of the Commodity
Exchange Act (7 U.S.C. 1a(12)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0CAB5B8DFDEB41E1891A5E742B5D8CB0"><enum>(66)</enum><header display-inline="yes-display-inline">Major swap participant</header><text display-inline="yes-display-inline">The term <term>major swap
participant</term> has the same meaning as in section 1a(39) of the Commodity
Exchange Act (7 U.S.C. 1a(39)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H199DD8758F8F4E33ABEC9BA2CEDC20EC"><enum>(67)</enum><header display-inline="yes-display-inline">Major security-based swap
participant</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H46ABE334D0D94CF5BAAD395DF1EB8EA7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>major security-based swap
participant</term> means any person who is not a security-based swap dealer,
and—</text>
<clause commented="no" display-inline="no-display-inline" id="HA9DC4196D4D748F4A4672D9B905E770C"><enum>(i)</enum><text display-inline="yes-display-inline">maintains a substantial net position in
outstanding security-based swaps, excluding positions held primarily for
hedging, reducing or otherwise mitigating its commercial risk, including
operating and balance sheet risk; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7FAE14220015469DAE260430C17E4332"><enum>(ii)</enum><text display-inline="yes-display-inline">whose outstanding security-based swaps
create substantial net counterparty exposure among the aggregate of its
counterparties that could expose those counterparties to significant credit
losses.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B0FB57D062843C88AD32276960C2FEC"><enum>(B)</enum><header display-inline="yes-display-inline">Definition of <quote>substantial net
position</quote></header><text display-inline="yes-display-inline">The
Commission shall define by rule or regulation the terms <term>substantial net
position</term>, <term>substantial net counterparty exposure</term>, and
<term>significant credit losses</term> at thresholds that the Commission
determines prudent for the effective monitoring, management and oversight of
entities which are systemically important or can significantly impact the
financial system through counterparty credit risk. In setting the definitions,
the Commission shall consider the person’s relative position in uncleared as
opposed to cleared swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0DB4C17C75674B7BA75705B33EF9D471"><enum>(C)</enum><text display-inline="yes-display-inline">A person may be designated a major
security-based swap participant for 1 or more individual types of
security-based swaps without being classified as a major security-based swap
participant for all classes of security-based swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BD539FBD5C347ADA07D03DACE23E925"><enum>(68)</enum><header display-inline="yes-display-inline">Security-based swap</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCFFA9FD249FA4AD28F934EA9CA866088"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 section 1a(35) of the Commodity Exchange
Act, and that—</text>
<clause commented="no" display-inline="no-display-inline" id="H728B4CAC00E24F868822C3BFCCB0697B"><enum>(i)</enum><text display-inline="yes-display-inline">is primarily based on an index that is a
narrow-based security index, including any interest therein or based on the
value thereof;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE9F431645E304E0E8D23759963E57D31"><enum>(ii)</enum><text display-inline="yes-display-inline">is primarily based on a single security or
loan, including any interest therein or based on the value thereof; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5CABC0A09FB94DF181BEA69D2AA815DB"><enum>(iii)</enum><text display-inline="yes-display-inline">is primarily 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 commented="no" display-inline="no-display-inline" id="H85E73B8A06B04B43814CB701CB61C039"><enum>(B)</enum><header display-inline="yes-display-inline">Rule of construction regarding master
agreements</header><text display-inline="yes-display-inline">The term
<term>security-based swap</term> shall be construed to include a master
agreement that provides for an agreement, contract, or transaction that is a
security-based swap pursuant to subparagraph (A), together with all supplements
to any such master agreement, without regard to whether the master agreement
contains an agreement, contract, or transaction that is not a security-based
swap pursuant to subparagraph (A), except that the master agreement shall be
considered to be a security-based swap only with respect to each agreement,
contract, or transaction under the master agreement that is a security-based
swap pursuant to subparagraph (A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H609BBF22FC624AA5BEF792FACB0BB915"><enum>(C)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">The term ‘security-based swap’ does not
include any agreement, contract, or transaction that meets the definition of a
security-based swap only because it references, is based upon, or settles
through the transfer, delivery, or receipt of an exempted security under
section 3(a)(12) of the Securities Exchange Act of 1934 as in effect on the
date of enactment of the Futures Trading Act of 1982 (other than any municipal
security as defined in section 3(a)(29) as in effect on the date of enactment
of the Futures Trading Act of 1982), unless such agreement, contract, or
transaction is of the character of, or is commonly known in the trade as, a
put, call, or other option.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6E4E884FBD440A984B2FC425A42BC4A"><enum>(69)</enum><header display-inline="yes-display-inline">Swap</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9B80F677C7D4BD1B61B01B296D40ACE"><enum>(70)</enum><header display-inline="yes-display-inline">Person associated with a security-based
swap dealer or major security-based swap participant</header><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8D292561388A49969085FE75D22EF76E"><enum>(71)</enum><header display-inline="yes-display-inline">Security-based swap dealer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H55DE039115224B8A9E33428D6ED4D0F2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>security-based swap
dealer</term> means any person that—</text>
<clause commented="no" display-inline="no-display-inline" id="H2C613EEFDD444C8E8F8AA525F14F81BD"><enum>(i)</enum><text display-inline="yes-display-inline">holds itself out as a dealer in
security-based swaps;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3D37202B88554A308B4B0DFC7533D7C9"><enum>(ii)</enum><text display-inline="yes-display-inline">makes a market in security-based
swaps;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE0DAE846806340A7BFE7101B4CADA4D4"><enum>(iii)</enum><text display-inline="yes-display-inline">regularly engages in the purchase of
security-based swaps and their resale to customers in the ordinary course of a
business; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H878765FAC0BD4AD6819860EE180041E3"><enum>(iv)</enum><text display-inline="yes-display-inline">engages in any activity causing it to be
commonly known in the trade as a dealer or market maker in security-based
swaps.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD2A17A1E3DEE48279BDBA3045EEE3D6E"><enum>(B)</enum><header display-inline="yes-display-inline">Designation by type or class</header><text display-inline="yes-display-inline">A person may be designated a security-based
swap dealer for a single type or single class or category of security-based
swap and considered not a security-based swap dealer for other types, classes,
or categories of security-based swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H359AB97AB2074E67AAB7457023CE8FA9"><enum>(C)</enum><header display-inline="yes-display-inline">De minimus exception</header><text display-inline="yes-display-inline">The Commission shall make a determination
to exempt from designation as a security-based swap dealer an entity that
engages in a de minimus amount of security-based swap dealing in connection
with transactions with or on the behalf of its customers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB0BDEC4A1BD6407F906424825D37D189"><enum>(72)</enum><header display-inline="yes-display-inline">Appropriate Federal banking
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H11E1112951F14F20BDF146B478D20CB6"><enum>(73)</enum><header display-inline="yes-display-inline">Board</header><text display-inline="yes-display-inline">The term <term>Board</term> means the Board
of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE74F9C3FED064B72AB36BB9B8FD23986"><enum>(74)</enum><header display-inline="yes-display-inline">Prudential regulator</header><text display-inline="yes-display-inline">The term <term>Prudential Regulator</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC911C9EA1F0E4008B68160B5D98821D6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBA5F83A0B48478F827B5096BEB0F39A"><enum>(i)</enum><text display-inline="yes-display-inline">a State-chartered bank that is a member of
the Federal Reserve System; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H96B7B8AD0CB640FB8AFCB5733B93A8ED"><enum>(ii)</enum><text display-inline="yes-display-inline">a State-chartered branch or agency of a
foreign bank;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H925FB3E97AF042A290D79B28D6A33B67"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H00DABF82765A42A091D11FD54AA7ACEA"><enum>(i)</enum><text display-inline="yes-display-inline">a national bank; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE90954A766CD45639CA4EACC1356661E"><enum>(ii)</enum><text display-inline="yes-display-inline">a federally chartered branch or agency of a
foreign bank; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE364AE9F9D3643E39714013335F05462"><enum>(C)</enum><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HC2EA2DB7F6CD4730A5E2FFD6EFDCA25F"><enum>(75)</enum><header display-inline="yes-display-inline">Swap dealer</header><text display-inline="yes-display-inline">The term <term>swap dealer</term> has the
same meaning as in section 1a(38) of the Commodity Exchange Act (7 U.S.C.
1a(38)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5B7F213383AC465BA33BE28B3F0062A4"><enum>(76)</enum><header display-inline="yes-display-inline">Security-based swap agreement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H02203041D9534B62ACB801FB1AC54793"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F763FF121A94CC6A4AD1CC16FDAAF15"><enum>(B)</enum><header display-inline="yes-display-inline">Exclusions</header><text display-inline="yes-display-inline">The term <term>security-based swap
agreement</term> does not include any security-based swap.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01CF8DC850B34481809F38C04B985029"><enum>(76)</enum><header display-inline="yes-display-inline">Security-based swap
repository</header><text display-inline="yes-display-inline">The term
<term>security-based swap repository</term> means any person that collects,
calculates, prepares or maintains information or records with respect to
transactions or positions in, or the terms and conditions of, security-based
swaps entered into by third parties.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE3CF4FFE44B140649347860E0517AF3D"><enum>(77)</enum><header display-inline="yes-display-inline">Swap execution facility</header><text display-inline="yes-display-inline">The term ‘swap execution facility’ means a
person or entity that facilitates the execution or trading of security-based
swaps between two persons through any means of interstate commerce, but which
is not a national securities exchange, including any electronic trade execution
or voice brokerage
facility.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6031E36A1214448F898C75085F834EFE"><enum>(b)</enum><header display-inline="yes-display-inline">Authority to further define
terms</header><text display-inline="yes-display-inline">The Securities and
Exchange Commission may adopt a rule further defining the terms
<term>security-based swap</term>, <term>security-based swap dealer</term>,
<term>major security-based swap participant</term>, and <term>eligible contract
participant</term> with regard to security-based swaps (as such terms are
defined in the amendments made by subsection (a)) for the purpose of including
transactions and entities that have been structured to evade this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H06C60CB990224380856F51543EBE1972" section-type="subsequent-section"><enum>3202.</enum><header display-inline="yes-display-inline">Repeal of prohibition on regulation of
security-based swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H1A87517821AE4E149F84167125C61DC8"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal of law</header><text display-inline="yes-display-inline">Section 206B of the Gramm-Leach-Bliley Act
(15 U.S.C. 78c note) is repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H948E27456435454EB2561B54AE680DB2"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming Amendments to the Securities Act
of 1933</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7DE5D4ACEB5A4E208738EB0FE0F453D0"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0B0C0536F39D470FB8D530E5A89EC54E"><enum>(2)</enum><text display-inline="yes-display-inline">Section 17 of the Securities Act of 1933
(15 U.S.C. 77q) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1DD30DB1E22848BFB656BD1A918C4328"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause commented="no" display-inline="no-display-inline" id="H4EB5BFA4227146CF981C52C359A22BFF"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>(including
security-based swaps)</quote> after <quote>securities</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD676F3CF61184973988E04219CE43D37"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08DDA58ACBEB49B09A10E86011C66661"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92F8929D99A94718BAC8138C42375AEB"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments to the securities
exchange act of 1934</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended as
follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD5E644ADFF0C49A6A212AD7449D32152"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8AD5502B5ED64CE9A7931699140DE5EB"><enum>(2)</enum><text display-inline="yes-display-inline">Section 9(a) (15 U.S.C. 78i(a)) is amended
by striking paragraphs (2) through (5) and inserting:</text>
<quoted-block display-inline="no-display-inline" id="H846161F65CA249AA91B684F443F20E7E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9CDBB2B528B94DCDA14AD29101ACB0E5" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE514A2ECF33C43FF9384013228E858BC" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8BB3DF9F5D984EB1B61569EC6B832789" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H79A6BF8C6481442ABC525561BACD9065" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H907741FFD52346BA8C57611D2344DC86"><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 commented="no" display-inline="no-display-inline" id="H70EBB7DBB63C45B185D5C6A8C455E2C4"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE310AB9BD72C4E519D557C3B0DE1E1AF"><enum>(5)</enum><text display-inline="yes-display-inline">Section 15(c)(1) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H06244186E69044C7A5D750E1C6FB86A3"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H49721F63171C4320AD50C72142BF5DEF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H537C83793DB1484082EA04B55AE6D3C1"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95FC3B3AC212477D9A95D72F54B06C23"><enum>(7)</enum><text display-inline="yes-display-inline">Section 16 (15 U.S.C. 78p) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF9BA1128AB1342CE866E7B69C3F9E31E"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0563A72A7DE4FD2AB3044540BA518DF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6D7E25FF93C645B6BDBA91005A5E5782"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>(as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE19368F55E2D44EB9A19C8CA2D145198"><enum>(8)</enum><text display-inline="yes-display-inline">Section 20 (15 U.S.C. 78t) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H93F21C1018534678A223285FFAF5573F"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (d), by striking <quote>(as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05BF545B77D14E4CA1A71D726ABCD2CD"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (f), by striking <quote>(as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H401377DDA83F4880AEAE368CE86DD3CF"><enum>(9)</enum><text display-inline="yes-display-inline">Section 21A (15 U.S.C. 78u–1) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCA2DBFB742CD456A830AB3094F736572"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>(as defined in section 206B of the Gramm-Leach-Bliley Act)</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H688E7F5B98484E8BB8BA449A16FE0AAB"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>(as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote>.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD123621C0F794AE18156C6C902F54F9D" section-type="subsequent-section"><enum>3203.</enum><header display-inline="yes-display-inline">Amendments to the Securities Exchange Act
of 1934</header>
<subsection commented="no" display-inline="no-display-inline" id="H80062058AE954F46B16B4E4FC34E4CEC"><enum>(a)</enum><header display-inline="yes-display-inline">Clearing for 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 adding the following section
after section 3A:</text>
<quoted-block display-inline="no-display-inline" id="H46818561C6C7480290A96EF53C7EF92E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H84D9CEC23C564872B9E6D9D42AC9A105" section-type="subsequent-section"><enum>3B.</enum><header display-inline="yes-display-inline">Clearing for security-based swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H97F62A1D160E4EDC81CA4124474B98FA"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H681BCFAB4B004A4BB2C2B6E2DBFBDA0E"><enum>(1)</enum><header display-inline="yes-display-inline">Standard for clearing</header><text display-inline="yes-display-inline">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, and the Commission has determined under
paragraph (2)(B)(ii) of subsection (b) that the security-based swap is required
to be cleared.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2EEA833E91AD4D1EA79FB8B2B040C096"><enum>(2)</enum><header display-inline="yes-display-inline">Open access</header><text display-inline="yes-display-inline">The rules of a clearing agency described in
paragraph (1) shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2326842FFB1341899308394FB8BC1F46"><enum>(A)</enum><text display-inline="yes-display-inline">prescribe that all security-based swaps
submitted to the clearing agency with the same terms and conditions are
economically equivalent within the clearing agency and may be offset with each
other within the clearing agency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF5D7872E1B6F45568616618D2DF2CB9E"><enum>(B)</enum><text display-inline="yes-display-inline">provide for non-discriminatory clearing of
a security-based swap executed bilaterally or on or through the rules of an
unaffiliated national securities exchange or swap execution facility.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H65A323AB912F471A8FD42798A2C80F1B"><enum>(b)</enum><header display-inline="yes-display-inline">Commission review</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE9767729739F400FA199E1060B3EF814"><enum>(1)</enum><header display-inline="yes-display-inline">Commission-initiated review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2EA3BB2DD33A4A85BF8097C47206F643"><enum>(A)</enum><text display-inline="yes-display-inline">The Commission shall review each
security-based swap, or any group, category, type or class of security-based
swaps to make a determination that such security-based swap, or group,
category, type or class of security-based swaps should be required to be
cleared.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H452371E81AF04237909440564F161DFE"><enum>(B)</enum><text display-inline="yes-display-inline">The Commission shall provide at least a
30-day public comment period regarding any determination under subparagraph
(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42D462E8CC0F42E5820558B5A582EB52"><enum>(2)</enum><header display-inline="yes-display-inline">Swap submissions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE30D3EF2FC804287A96EB7FE76341B4F"><enum>(A)</enum><text display-inline="yes-display-inline">A clearing agency shall submit to the
Commission each security-based swap, or any group, category, type or class of
security-based swaps that it plans to accept for clearing and provide notice to
its members (in a manner to be determined by the Commission) of such
submission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H098505E8D23846F6BB82D080A62BED0A"><enum>(B)</enum><text display-inline="yes-display-inline">The Commission shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H13A2FAC8C51641F0A196477F000D4D83"><enum>(i)</enum><text display-inline="yes-display-inline">make available to the public any submission
received under subparagraph (A);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H344D72EC0F3D4DB29544DEA81FC6EF59"><enum>(ii)</enum><text display-inline="yes-display-inline">review each submission made under
subparagraph (A), and determine whether the security-based swap, or group,
category, type, or class of security-based swaps, described in the submission
is required to be cleared; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H376903B5DFFB4AB3AC6E06F792636485"><enum>(iii)</enum><text display-inline="yes-display-inline">provide at least a 30-day public comment
period regarding its determination whether the clearing requirement under
subsection (a)(1) shall apply to the submission.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9574CB33D0E241438371552426E3D6ED"><enum>(3)</enum><header display-inline="yes-display-inline">Deadline</header><text display-inline="yes-display-inline">The Commission shall make its determination
under paragraph (2)(B) not later than 90 days after receiving a submission made
under paragraph (2)(A), unless the submitting clearing agency agrees to an
extension for the time limitation established under this paragraph.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEEB196E8141D46A39D2BB9F0C0F3B0BC"><enum>(4)</enum><header display-inline="yes-display-inline">Determination</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA43B42009E1F4245BF63887A42370AE6"><enum>(A)</enum><text display-inline="yes-display-inline">In reviewing a submission made under
paragraph (2), the Commission shall review whether the submission is consistent
with section 5b(c)(2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3B867D05CA94C28A82FF5C77F7E27B1"><enum>(B)</enum><text display-inline="yes-display-inline">In reviewing a security-based swap, group
of security-based swaps or class of security-based swaps pursuant to paragraph
(1) or a submission made under paragraph (2), the Commission shall take into
account the following factors:</text>
<clause commented="no" display-inline="no-display-inline" id="H72FCDB2977F9437AA4BD71AF21616819"><enum>(i)</enum><text display-inline="yes-display-inline">The existence of significant outstanding
notional exposures, trading liquidity and adequate pricing data.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9B2C4A835A3F4F2E9CA5288DB0586D42"><enum>(ii)</enum><text display-inline="yes-display-inline">The availability of rule framework,
capacity, operational expertise and resources, and credit support
infrastructure to clear the contract on terms that are consistent with the
material terms and trading conventions on which the contract is then
traded.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1BF66E23089B411E9061D9D6CE5DD211"><enum>(iii)</enum><text display-inline="yes-display-inline">The effect on the mitigation of systemic
risk, taking into account the size of the market for such contract and the
resources of the clearing agency available to clear the contract.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD21FB9A5E36340608CB0B31CA69A8B0E"><enum>(iv)</enum><text display-inline="yes-display-inline">The effect on competition, including
appropriate fees and charges applied to clearing.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H58D46471927D4796A87DA7BC643BDEA2"><enum>(v)</enum><text display-inline="yes-display-inline">The existence of reasonable legal certainty
in the event of the insolvency of the relevant clearing agency or 1 or more of
its clearing members with regard to the treatment of customer and
security-based swap counterparty positions, funds, and property.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H244B50C26ECA4A94A05E6E2D06BEF6F0"><enum>(C)</enum><text display-inline="yes-display-inline">In making a determination under paragraph
(2)(B) that the clearing requirement shall apply, the Commission may require
such terms and conditions to the requirement as the Commission determines to be
appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82CF2C22A7B14409A19DC957E8D7D060"><enum>(5)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules for a clearing agency’s submission for
review, pursuant to this subsection, of a security-based swap, or a group,
category, type or class of security-based swaps, that it seeks to accept for
clearing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEAD42331E8E54417A9150715067D835F"><enum>(c)</enum><header display-inline="yes-display-inline">Stay of clearing requirement</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA4C9F3A8F2F24A6898F4AF6F53326FFD"><enum>(1)</enum><text display-inline="yes-display-inline">After an determination pursuant to
subsection (b)(2), the Commission, on application of a counterparty to a
security-based swap or on its own initiative, may stay the clearing requirement
of subsection (a)(1) until the Commission completes a review of the terms of
the security-based swap (or the group, category, type or class of
security-based swaps) and the clearing arrangement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CF44C9443C845B292C3BA9E8037A4A8"><enum>(2)</enum><header display-inline="yes-display-inline">Deadline</header><text display-inline="yes-display-inline">The Commission shall complete a review
undertaken pursuant to paragraph (1) not later than 90 days after issuance of
the stay, unless the clearing agency that clears the security-based swap, or
group, category, type or class of security-based swaps, agrees to an extension
of the time limitation established under this paragraph.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC12469EA78C541FDB68D7BC7F70FC3D2"><enum>(3)</enum><header display-inline="yes-display-inline">Determination</header><text display-inline="yes-display-inline">Upon completion of the review undertaken
pursuant to paragraph (1), the Commission may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4724DADFD0114B24AD585D4F6CC96210"><enum>(A)</enum><text display-inline="yes-display-inline">determine, unconditionally or subject to
such terms and conditions as the Commission determines to be appropriate, that
the security-based swap, or group, category, type or class of security-based
swaps, must be cleared pursuant to this subsection if it finds that such
clearing is consistent with subsection (b)(4); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0730DAC9B9E481F8DF6757537CE8556"><enum>(B)</enum><text display-inline="yes-display-inline">determine that the clearing requirement of
subsection (a)(1) shall not apply to the security-based swap, or group,
category, type or class of security-based swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA684FD32A79D4E848E1466146B19091B"><enum>(4)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules for reviewing, pursuant to this
subsection, a clearing agency’s clearing of a security-based swap, or a group,
category, type or class of security-based swaps, that it has accepted for
clearing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H49129660C42840C3B53F3EF1908E19A2"><enum>(d)</enum><header display-inline="yes-display-inline">Prevention of evasion</header><text display-inline="yes-display-inline">The Commission may prescribe rules under
this subsection, or issue interpretations of the rules, as necessary to prevent
evasions of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H51BDA2FAD91147FA99BDF075F13DF714"><enum>(e)</enum><header display-inline="yes-display-inline">Required reporting</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBB6368251EB34135B066E19BB206751A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">All security-based swaps that are not
accepted for clearing by any clearing agency shall be reported either to a
security-based swap repository described in subsection 13(n) or, if there is no
security-based swap 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 or regulation prescribe. Counterparties to a
security-based swap may agree which counterparty will report the security-based
swap as required by this paragraph.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07A8CB00811F49CAB809C3090DE2021E"><enum>(2)</enum><header display-inline="yes-display-inline">Swap dealer designation</header><text display-inline="yes-display-inline">With regard to security-based swaps where
only 1 counterparty is a security-based swap dealer, the security-based swap
dealer shall report the security-based swap as required by this
subsection.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD34108A7B5BD4335A54761ACF6A5063D"><enum>(f)</enum><header display-inline="yes-display-inline">Reporting transition rules</header><text display-inline="yes-display-inline">Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC9AD54635BF74489BEE9B40B174A8680"><enum>(1)</enum><text display-inline="yes-display-inline">Security-based swaps entered into before
the date of the enactment of this section shall be reported to a registered
security-based swap repository or the Commission no later than 180 days after
the effective date of this section; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAB80D87395A346C99B26440C908EA2A1"><enum>(2)</enum><text display-inline="yes-display-inline">Security-based swaps entered into on or
after such date of enactment shall be reported to a registered security-based
swap repository or the Commission no later than the later of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H97C1823381B74E4F8DF4DE568BCC2A7E"><enum>(A)</enum><text display-inline="yes-display-inline">90 days after such effective date;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB5DC6F9F0489467EA9BB23FA99ADC656"><enum>(B)</enum><text display-inline="yes-display-inline">such other time after entering into the
security-based swap as the Commission may prescribe by rule or
regulation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEA40D775C0F3414F8C71A92749F34A3F"><enum>(g)</enum><header display-inline="yes-display-inline">Clearing transition rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1BB331B301AB4D348B862C23B7E04270"><enum>(1)</enum><text display-inline="yes-display-inline">Security-based swaps entered into before
the date of the enactment of this section are exempt from the clearing
requirements of this subsection if reported pursuant to subsection
(f)(1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9799ECACEE764375A4803643B96CDFA7"><enum>(2)</enum><text display-inline="yes-display-inline">Security-based swaps entered into before
application of the clearing requirement pursuant to this section are exempt
from the clearing requirements of this section if reported pursuant to
subsection (f)(2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0117AF91DB004E348735A5A00F589171"><enum>(h)</enum><header display-inline="yes-display-inline">Exceptions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1C56CBDFEA9846F3BED5B48378590EDD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of subsection (a)(1) shall
not apply to a security-based swap if one of the counterparties to the
security-based swap—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF2FAE11199CF429197EC52AFC29C99CD"><enum>(A)</enum><text display-inline="yes-display-inline">is not a security-based swap dealer or
major security-based swap participant;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H386C08287B784A57B77E1D6693386C3D"><enum>(B)</enum><text display-inline="yes-display-inline">is using security-based swaps to hedge or
mitigate commercial risk, including operating or balance sheet risk; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5F30A367D6F84380A594F0FE0CE74C2C"><enum>(C)</enum><text display-inline="yes-display-inline">notifies the Commission, in a manner set
forth by the Commission, how it generally meets its financial obligations
associated with entering into non-cleared security-based swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0B3B8A6EF2BB45ECABDB2A961C3555C5"><enum>(2)</enum><header display-inline="yes-display-inline">Abuse of exception</header><text display-inline="yes-display-inline">The Commission may prescribe rules under
this subsection, or issue interpretations of the rules, as necessary to prevent
abuse of the exemption in paragraph (1) by security-based swap dealers and
major security-based swap participants.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27C3DD1D0E3B4386A6BDF44329CF23EA"><enum>(3)</enum><header display-inline="yes-display-inline">Option to clear</header><text display-inline="yes-display-inline">The application of the clearing exception
in paragraph (1) is solely at the discretion the counterparty to the swap that
meets the conditions of subparagraphs (A) through (C) of paragraph
(1).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEAFA45F6CA60490085AB5F70DC8A575A"><enum>(b)</enum><header display-inline="yes-display-inline">Clearing agency requirements</header><text display-inline="yes-display-inline">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="H52023D5D82844FDAA8A7F7A076A43D6A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD8F305F7C89C4B17A43BB237D270C9CF"><enum>(g)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF0C8020037AE4A7D846D4E8B7CA224C7"><enum>(h)</enum><header display-inline="yes-display-inline">Voluntary registration</header><text display-inline="yes-display-inline">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>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE4D16E39990F4534AD7DCC7A901642FC"><enum>(i)</enum><header display-inline="yes-display-inline">Existing banks and derivatives clearing
organizations</header><text display-inline="yes-display-inline">A bank or a
derivatives clearing organization registered with the Commodity Futures Trading
Commission under the Commodity Exchange Act required to be a registered as a
clearing agency under this title, solely because it clears security-based
swaps, is deemed to be a registered clearing agency under this title solely for
the purpose of clearing security-based swaps to the extent that the bank
cleared security-based swaps, as defined in this Act, as a multilateral
clearing organization or the derivatives clearing organization cleared
security-based swaps, as defined in this title pursuant to an exemption from
registration as a clearing agency, before the enactment of this section. A bank
or derivative clearing organization to which this subsection applies shall
continue to comply with the requirements in section 17A(b)(3) of this title. A
bank to which this subsection applies may, by the vote of the shareholders
owning not less than 51 percent of the voting interests of such bank, be
converted into a State corporation, partnership, limited liability company, or
other similar legal form pursuant to a plan of conversion, if the conversion is
not in contravention of applicable State law.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H682FB6433DA043DCA2E91941C259F573"><enum>(j)</enum><header display-inline="yes-display-inline">Reporting</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC13381F4ADAE4E939781C8AFDC9C4890"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A clearing agency that clears
security-based swaps shall provide to the Commission 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. Subject to section 24, 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" display-inline="no-display-inline" id="HDB407387E4BE4B4BBBB38F9B5786AE0B"><enum>(2)</enum><header display-inline="yes-display-inline">Public information</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB951F56B2987496FA0FAA0F3E0CD0C85"><enum>(k)</enum><header display-inline="yes-display-inline">Designation of compliance officer</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC92C423EE331491B85E116CE3603A993"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each clearing agency that clears
security-based swaps shall designate an individual to serve as a compliance
officer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23F62449068B4E52953016D386224210"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The compliance officer shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HADF29F9E4B9C412B82E73BB47E29D879"><enum>(A)</enum><text display-inline="yes-display-inline">report directly to the board or to the
senior officer of the clearing agency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9C71802A0D9C435F8A15038D8B252AA9"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB43E9921B9F94DA8B4A310341D25F7A9"><enum>(C)</enum><text display-inline="yes-display-inline">be responsible for administering the
policies and procedures required to be established pursuant to this
section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEFA1BB348ACB47499D7269B18E01D3FB"><enum>(D)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H3B7871744AE04FFA80A106AE9681AC52"><enum>(E)</enum><text display-inline="yes-display-inline">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>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA789E585A9504F6A9412EAFCFA20A635"><enum>(3)</enum><header display-inline="yes-display-inline">Annual reports required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE42CACFC3A784AE6850EBC4894F89081"><enum>(l)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H45E2E25EB3D34E5CBE65D0B56F0C575A"><enum>(m)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules governing persons that are registered as
clearing agencies for security-based swaps under this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H00A3BB7841A74F8390176C407E75E7F8"><enum>(n)</enum><header display-inline="yes-display-inline">Exemptions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA8D0224D166245458475554955175393"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or
unconditionally, a clearing agency from registration under this section for the
clearing of security-based swaps if the Commission finds that such clearing
agency 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 or if necessary or appropriate in the public interest and
consistent with the purpose of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7988A01C79E347CAAD5831465A162C0E"><enum>(2)</enum><text display-inline="yes-display-inline">A person that is required to be registered
as clearing agency under this section, whose principal business is clearing
commodity futures and options on commodity futures transactions and which is a
derivatives clearing organization registered with the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.), shall be
unconditionally exempt from registration under this section solely for the
purpose of clearing security-based swaps, unless the Commission finds that such
derivatives clearing organization is not subject to comparable, comprehensive
supervision and regulation by the Commodity Futures Trading
Commission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5B74B9BA34A448809036468E8D856C4B"><enum>(c)</enum><header display-inline="yes-display-inline">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="H1B861B4E03C94283AD55096A44FA9E9A" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H6995D40197AF49DE9244E6465D6DA01E" section-type="subsequent-section"><enum>5A.</enum><header display-inline="yes-display-inline">Execution of security-based swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H1615F167E2E04E22B0256C028CC4FD7A"><enum>(a)</enum><header display-inline="yes-display-inline">Execution transparency</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCD3BAD230363431A9D69641C5C2E3BE3"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement</header><text display-inline="yes-display-inline">A security-based swap that is subject to
the clearing requirement of section 3B shall not be traded except on or through
a national securities exchange or on or through an swap execution facility
registered under section 5h, that makes the security-based swap available for
trading.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H535C075781924CA9BEE62A4F59559E62"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The requirement of paragraph (1) shall not
apply to a security-based swap if no national securities exchange or swap
execution facility makes the security-based swap available for trading.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB846B2128C1640949797FE2F7C21F002"><enum>(3)</enum><header display-inline="yes-display-inline">Required reporting</header><text display-inline="yes-display-inline">If the exception of paragraph (2) applies
and there is no national securities exchange or swap execution facility that
makes the security-based 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 paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFA79B264AECE4F458AFB15786991611B"><enum>(b)</enum><header display-inline="yes-display-inline">Exchange trading</header><text display-inline="yes-display-inline">In adopting rules and regulations, the
Commission shall endeavor to eliminate unnecessary impediments to the trading
on national securities exchanges of contracts, agreements, or transactions that
would be swaps but for the trading of such contracts, agreements or
transactions on such a national securities
exchange.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFF1DBD8492A44FFBB0041EA70F618F0C"><enum>(d)</enum><header display-inline="yes-display-inline">Swap execution facilities</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 3B (as added by
subsection (a)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HABBD003673E34E23B993103C1B4D363F" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5B12A95EE79E4FD78E73F98B4254A117" section-type="subsequent-section"><enum>3C.</enum><header display-inline="yes-display-inline">Swap execution facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="HB280F7B440CF47DCB4C30D1E823BD1D7"><enum>(a)</enum><header display-inline="yes-display-inline">Registration</header><text display-inline="yes-display-inline">No person may operate a facility for the
trading of security-based swaps unless the facility is registered as a swap
execution facility under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H734AD4E4749A47B1BBDA4C9041D62721"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements for trading</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7058B50479E747F1BAAA4500C36E9DDC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A swap execution facility that is
registered under subsection (a) may list for trading any security-based
swap.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6ED7EB45380E4FFD99D45A7E4763B924"><enum>(2)</enum><header display-inline="yes-display-inline">Rules for trading through the
facility</header><text display-inline="yes-display-inline">Not later than 1
year after the date of the enactment of the Derivative Markets Transparency and
Accountability Act of 2009, the Commission shall adopt rules to allow a
security-based swap to be traded through the facilities of an exchange or a
swap execution facility. Such rules shall permit an intermediary, acting as
principal or agent, to enter into or execute a security-based swap,
notwithstanding section 3B(b), if the security-based swap is reported,
recorded, or confirmed in accordance with the rules of the exchange or swap
execution facility.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC8856CEA3DB94BB092C6E66C1129835C"><enum>(c)</enum><header display-inline="yes-display-inline">Trading by exchanges</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6AD202F89A9C4180BD68D21B319CBB99"><enum>(d)</enum><header display-inline="yes-display-inline">Core principles for swap execution
facilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCF319EB8008446B7AB63384CA64D9009"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To be registered as, and 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 commented="no" display-inline="no-display-inline" id="HDDDAFCE74A994342ACAC3B77ECBCF70D"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance with rules</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6554609C447B4EE4AA769FFA089FBE34"><enum>(A)</enum><text display-inline="yes-display-inline">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; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H55898B4501D74B87B7700B75D266EB86"><enum>(B)</enum><text display-inline="yes-display-inline">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>
<clause commented="no" display-inline="no-display-inline" id="H72CEFD63E1C84B659E09D8160F914978"><enum>(i)</enum><text display-inline="yes-display-inline">provide market participants with impartial
access to the market; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD160504B40794D82B7D7E18C921D4709"><enum>(ii)</enum><text display-inline="yes-display-inline">capture information that may be used in
establishing whether rule violations have occurred.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7B5CC69CE2604DFAAFA5A434C73905F8"><enum>(3)</enum><header display-inline="yes-display-inline">Security-based swaps not readily
susceptible to manipulation</header><text display-inline="yes-display-inline">The swap execution facility shall permit
trading only in security-based swaps that are not readily susceptible to
manipulation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4277AFD397E34540B4A3C2C706ABEC0B"><enum>(4)</enum><header display-inline="yes-display-inline">Monitoring of trading</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB5B385AAC0174979A2BEB034DB4DF7B3"><enum>(A)</enum><text display-inline="yes-display-inline">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;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD244EDBA5C343F59FDB5F916B998EEB"><enum>(B)</enum><text display-inline="yes-display-inline">monitor trading in swaps to prevent
manipulation, price distortion, and disruptions of the delivery or cash
settlement process through surveillance, compliance, and disciplinary practices
and procedures, including methods for conducting real-time monitoring of
trading and comprehensive and accurate trade reconstructions.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFEE63293169F48A2B6B4D388C0287E84"><enum>(5)</enum><header display-inline="yes-display-inline">Ability to obtain information</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7796305B4F2C41AD9BFEA911110C5EC9"><enum>(A)</enum><text display-inline="yes-display-inline">establish and enforce rules that will allow
the facility to obtain any necessary information to perform any of the
functions described in this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE508AF1D4D104DB88C29F472BEBD6B60"><enum>(B)</enum><text display-inline="yes-display-inline">provide the information to the Commission
upon request; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3815C8F9C5D42D4AE78809EE805FC2F"><enum>(C)</enum><text display-inline="yes-display-inline">have the capacity to carry out such
international information-sharing agreements as the Commission may
require.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H89D2FEBDD6AF4AF09C653C976804CF75"><enum>(6)</enum><header display-inline="yes-display-inline">Financial integrity of
transactions</header><text display-inline="yes-display-inline">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 pursuant to section 3B.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9340C4F117B848A8B5C2FD75E7DE2D36"><enum>(7)</enum><header display-inline="yes-display-inline">Emergency authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H82025C53487248EB933F17D53DF2FB22"><enum>(8)</enum><header display-inline="yes-display-inline">Timely publication of trading
information</header><text display-inline="yes-display-inline">The swap
execution facility shall make public timely information on price, trading
volume, and other trading data to the extent prescribed by the Commission. The
Commission shall evaluate the impact of public disclosure on market liquidity
in the relevant market, and shall seek to avoid public disclosure of
information in a manner that would significantly reduce market liquidity. The
Commission shall not disclose information related to the internal business
decisions of particular market participants.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE4E55C8DC9264C608C069D0A67ACD785"><enum>(9)</enum><header display-inline="yes-display-inline">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 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 commented="no" display-inline="no-display-inline" id="HBB70D605F8084375A24AE89F6B95EFE9"><enum>(10)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2E6A71A807854827B7C87D823D6DA6A0"><enum>(A)</enum><text display-inline="yes-display-inline">establish and enforce rules to minimize
conflicts of interest in its decision-making process; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9831210D485040DFB3F7BDD2C57C7BF6"><enum>(B)</enum><text display-inline="yes-display-inline">establish a process for resolving the
conflicts of interest.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD54C99A2FFEA4550A86209B54ED72C7A"><enum>(11)</enum><header display-inline="yes-display-inline">Financial resources</header><text display-inline="yes-display-inline">The swap execution facility shall have
adequate financial, operational, and managerial resources to discharge its
responsibilities. Such financial resources shall be considered adequate if
their value exceeds the total amount that would enable the facility to cover
its operating costs for a period of one year, calculated on a rolling
basis.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2AF2EC5946A64DE9A2F8A442D7CE42CA"><enum>(12)</enum><header display-inline="yes-display-inline">System safeguards</header><text display-inline="yes-display-inline">The swap execution facility shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0774C8B1A57942629B6D12E3F9A8E7C3"><enum>(A)</enum><text display-inline="yes-display-inline">establish and maintain a program of risk
analysis and oversight to identify and minimize sources of operational risk,
through the development of appropriate controls and procedures, and the
development of automated systems, that are reliable, secure, and have adequate
scalable capacity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5E0E27EF2E09467F847AF9E52C8B3A53"><enum>(B)</enum><text display-inline="yes-display-inline">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
swap execution facility’s responsibilities and obligation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0484FBD478DC49E2BFB62DF68959389D"><enum>(C)</enum><text display-inline="yes-display-inline">periodically conduct tests to verify that
backup resources are sufficient to ensure continued order processing and trade
matching, price reporting, market surveillance, and maintenance of a
comprehensive and accurate audit trail.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E8EEFFC3C9B456D8310EC054D4700E0"><enum>(13)</enum><header display-inline="yes-display-inline">Designation of compliance officer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H436E5C3B7D084EFA85D9BCD1E921E5B9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each swap execution facility shall
designate an individual to serve as a compliance officer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD537E5A60F334E468283BC48F69FE181"><enum>(B)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The compliance officer—</text>
<clause commented="no" display-inline="no-display-inline" id="H88DFF12697804B7F8FA7A6E00F60F98A"><enum>(i)</enum><text display-inline="yes-display-inline">shall report directly to the board or to
the senior officer of the facility; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD97276F85461475C9A02F2CCA6B45FED"><enum>(ii)</enum><text display-inline="yes-display-inline">shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="HC1AA08DDE3B348BDBD0312E53D35E412"><enum>(I)</enum><text display-inline="yes-display-inline">review compliance with the core principles
in section 3B(e).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H45921F0317C340059D3CAA96C06EDE6A"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6910AC2062F849F186F2490E6BC06671"><enum>(III)</enum><text display-inline="yes-display-inline">be responsible for administering the
policies and procedures required to be established pursuant to this section;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5F0A4C27A6B8496D86583FB9EDB2E8CB"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H870BE549D9AC444B9F35218C38DA1653"><enum>(iii)</enum><text display-inline="yes-display-inline">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 and to establish the handling, management response, remediation,
re-testing, and closing of non-compliant issues.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE8529E314B84ECDBEF8E5C5E52FB9C6"><enum>(C)</enum><header display-inline="yes-display-inline">Annual reports required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HED1693DBD37A4651A1F0E7D17BF6A465"><enum>(e)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">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 or if necessary or
appropriate in the public interest and consistent with the purpose of this
Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5758C70750ED426996E2533FF889E455"><enum>(f)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall prescribe rules governing the regulation of swap
execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC96E6E9390145A395857DE20C231554"><enum>(e)</enum><header display-inline="yes-display-inline">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="HC03C03BB15E44B53AC45DDF18BE6A7E6" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H619375BECED24E83934793D786E4C677" section-type="subsequent-section"><enum>3D.</enum><header display-inline="yes-display-inline">Segregation of assets held as collateral in
security-based swap transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="H83272D65B511467BA1FC683901F6E2E6"><enum>(a)</enum><header display-inline="yes-display-inline">Over-the-counter swaps</header><text display-inline="yes-display-inline">At the request of a counterparty to a
security-based swap who provides funds or other property to a security-based
swap dealer as initial margin or collateral to secure the obligations of the
counterparty under a security-based swap between the counterparty and the
security-based swap dealer that is not submitted for clearing to a derivatives
clearing agency, the security-based swap dealer shall segregate the funds or
other property for the benefit of the counterparty, and maintain the funds or
other property in an account which is carried by a 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 security-based swap counterparty is a security-based swap
dealer or major security-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
security-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 commented="no" display-inline="no-display-inline" id="HE490856505894DB790E2E8FE54843100"><enum>(b)</enum><header display-inline="yes-display-inline">Further audit reporting</header><text display-inline="yes-display-inline">If a security-based swap dealer does not
segregate funds pursuant to 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 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 commented="no" display-inline="no-display-inline" id="HE5C0510E8F824B0F92570F63D3735BC3"><enum>(f)</enum><header display-inline="yes-display-inline">Trading in security-based
swaps</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HA07A08B166464A63A6A10A69ECEA3821" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H402BED558D7B482297FE05EBB9127B72"><enum>(l)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA50600979A43476785017671A54FB409"><enum>(g)</enum><header display-inline="yes-display-inline">Additions of security-based swaps to
certain enforcement provisions</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H13B840BF75484D57B8C7DFF71E02FD8E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF9C2272489384D748657BBB7537F87CB"><enum>(1)</enum><text display-inline="yes-display-inline">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; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30B16869EC8D495BA02B745CAFCFBC68"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC312E5193084E8F96647675B8CF5E7E"><enum>(3)</enum><text display-inline="yes-display-inline">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 any (A) 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 commented="no" display-inline="no-display-inline" id="HF94A8EBC47CD458493EA3B25DF4DAC01"><enum>(h)</enum><header display-inline="yes-display-inline">Rulemaking authority to prevent fraud,
manipulation and deceptive conduct in security-based swaps</header><text display-inline="yes-display-inline">Section 9 of the Securities Exchange Act of
1934 (15 U.S.C. 78i) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H80D4B7A01A9D4D8394A3054D3092FBC8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H408AFA1E9FE148EEA9B3EE5905C58FAA"><enum>(i)</enum><text display-inline="yes-display-inline">It shall be unlawful for any person,
directly or indirectly, by the use of any means or instrumentality of
interstate commerce or of the mails, or of any facility of any national
securities exchange, to effect any transaction in, or to induce or attempt to
induce the purchase or sale of, any security-based swap, in connection with
which such person engages in any fraudulent, deceptive, or manipulative act or
practice, makes any fictitious quotation, or engages in any transaction,
practice, or course of business which operates as a fraud or deceit upon any
person. The Commission shall, for the purposes of this paragraph, 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 commented="no" display-inline="no-display-inline" id="H5F3CFE882805400BB6BF799EF27F6C68"><enum>(i)</enum><header display-inline="yes-display-inline">Position limits and position accountability
for security-based swaps</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 is amended by inserting after section 10A (15
U.S.C. 78j–1) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H2BC80AAA2B4B4EF7A329482A1329E020" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5EE47277D9DA4D639966E51A44D3B177" section-type="subsequent-section"><enum>10B.</enum><header display-inline="yes-display-inline">Position limits and position accountability
for security-based swaps and large trader reporting</header>
<subsection commented="no" display-inline="no-display-inline" id="H2C899F76187848D69F9866376EF4E599"><enum>(a)</enum><header display-inline="yes-display-inline">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 that may be held by any person. In
establishing such limits, the Commission may require any person to aggregate
positions in—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCEC1A6C80AE2480FA1B08944939DD8BF"><enum>(1)</enum><text display-inline="yes-display-inline">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 other
instrument relating to such security or loan or group or index of securities or
loans; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H849603974AAB4965852288A9A05872CF"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H44BD4BFA77854906B50B8E0B9822125D"><enum>(b)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6DDD8DB00D0A4ECFAA2BDD83F39A3F25"><enum>(c)</enum><header display-inline="yes-display-inline">SRO Rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H637BCE3BBA204EA78E23C0E7FD5B8649"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H649E9FA8248C45E98260EF36946A087C"><enum>(A)</enum><text display-inline="yes-display-inline">to adopt rules regarding the size of
positions in any security-based swap that may be held by—</text>
<clause commented="no" display-inline="no-display-inline" id="HA44CC2C0AEA5418594ABD5C013D1BD9A"><enum>(i)</enum><text display-inline="yes-display-inline">any member of such self-regulatory
organization; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEB84820001864CACBDBDD90988FE6D13"><enum>(ii)</enum><text display-inline="yes-display-inline">any person for whom a member of such
self-regulatory organization effects transactions in such security-based swap;
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC77C714F9F794B1BAED419385E59480F"><enum>(B)</enum><text display-inline="yes-display-inline">to adopt rules reasonably designed to
ensure compliance with requirements prescribed by the Commission under
subsection (c)(1)(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3BAC00CBBA234897BF9611379D608E07"><enum>(2)</enum><header display-inline="yes-display-inline">Requirement to aggregate
positions</header><text display-inline="yes-display-inline">In establishing
such limits, the self-regulatory organization may require such member or person
to aggregate positions in—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H84E990C9B1614245AA3E4D94802EC3FC"><enum>(A)</enum><text display-inline="yes-display-inline">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 other
instrument relating to such security or loan or group or index of securities or
loans; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8C58BC9521CE4C16B1ADBC015C6F2259"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H5B0D24DA6A2940958F8703A926FFFE5A"><enum>(i)</enum><text display-inline="yes-display-inline">any security-based swap; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA1AFB37D290D4210A3A15607495E797F" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB7F1BABE6484937846C3575A23F3A5E"><enum>(d)</enum><header display-inline="yes-display-inline">Large trader reporting</header><text display-inline="yes-display-inline">The Commission, by rule or regulation, may
require any person that effects transactions for such person’s own account or
the account of others in any securities-based swap or uncleared security-based
swap 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) under this
section to report such information as the Commission may prescribe regarding
any position or positions in any security-based swap or uncleared
security-based swap 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) under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB5A399D6B69048F4BAB067BFF200DF77"><enum>(j)</enum><header display-inline="yes-display-inline">Public reporting and repositories for
security-based swaps</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="HFFB87CE6A931447D8B8FDE8A57C013F2" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H803B631BBA924AA7A3BE621ED116BF0B"><enum>(m)</enum><header display-inline="yes-display-inline">Public reporting of aggregate
security-based swap data</header>
<paragraph commented="no" display-inline="no-display-inline" id="H425367A13A994633A13927D7BAD21479"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDAF2DDC64984165B2D29471BC9AEAC2"><enum>(2)</enum><header display-inline="yes-display-inline">Designee of the commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7286F6025FDA48739B88CD14573D0AD4"><enum>(3)</enum><header display-inline="yes-display-inline">Sources of information</header><text display-inline="yes-display-inline">The sources of the information to be
publicly reported as described in paragraph (1) are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H40C1CD2BC8F645FF817F6AB5AFB228BC"><enum>(A)</enum><text display-inline="yes-display-inline">clearing agencies pursuant to section
3A;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC29DCC6AF927445E97524D7EBC4D6371"><enum>(B)</enum><text display-inline="yes-display-inline">security-based swap repositories pursuant
to subsection (n); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD6CD3440B46D4AB3BEBE9CABB017E3E2"><enum>(C)</enum><text display-inline="yes-display-inline">reports received by the Commission pursuant
to section 13A.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF826E64453564AC7A53F367C8C3131D2"><enum>(n)</enum><header display-inline="yes-display-inline">Security-based swap repositories</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4EBA29F6026640BD9ABB4AA20174199D"><enum>(1)</enum><header display-inline="yes-display-inline">Registration requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDDF6DDE03E774E30A369A7B9135470A9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC11938CF89D2432CA58E3C06F0768D0A"><enum>(B)</enum><header display-inline="yes-display-inline">Inspection and examination</header><text display-inline="yes-display-inline">Registered security-based swap repositories
shall be subject to inspection and examination by any representatives of the
Commission.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF5D2867558C64948B553495C2B1A5C50"><enum>(2)</enum><header display-inline="yes-display-inline">Standard setting</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2C159ADE6BAC4531A5A4C1D188B20A22"><enum>(A)</enum><header display-inline="yes-display-inline">Data identification</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA799AACF8624DA1AE07B05A780F2773"><enum>(B)</enum><header display-inline="yes-display-inline">Data collection and
maintenance</header><text display-inline="yes-display-inline">The Commission
shall prescribe data collection and data maintenance standards for
security-based swap repositories.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB9B6146ED1A24C39914AB8B9BED3D74D"><enum>(C)</enum><header display-inline="yes-display-inline">Comparability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC420F1E771704648AEC4E3B74779FDF2"><enum>(3)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">A security-based swap repository
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H260DD52695BA4C7185610E739A64F132"><enum>(A)</enum><text display-inline="yes-display-inline">accept data prescribed by the Commission
for each security-based swap under this paragraph (2);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D981488F4274AD3965CF34BCF5EF68B"><enum>(B)</enum><text display-inline="yes-display-inline">maintain such data in such form and manner
and for such period as may be required by the Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD131BFA5CC27436E9E426782B52E300D"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56EA156245BA493799C393E5976E4601"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H772F2EDAC3F241BA96AF4167E4A7D4C9"><enum>(4)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, the Commission shall
adopt rules governing persons that are registered under this section, including
rules that specify the data elements that shall be collected and
maintained.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3669B156A9494B52B64C6214CB0D235F"><enum>(5)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">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 or if necessary or appropriate in the public interest and
consistent with the purpose of this
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD89B676A7009400DB12D3C9BF5456464" section-type="subsequent-section"><enum>3204.</enum><header display-inline="yes-display-inline">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="HD830FFF35E8F4A8A88FCAB4D1BDA2255" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HB7315DA81EBA49B4BDE5EF046F542CC9" section-type="subsequent-section"><enum>15F.</enum><header display-inline="yes-display-inline">Registration and regulation of
security-based swap dealers and major security-based swap participants</header>
<subsection commented="no" display-inline="no-display-inline" id="H09B591B57F2A47C1B90177FAC28DFF03"><enum>(a)</enum><header display-inline="yes-display-inline">Registration</header>
<paragraph commented="no" display-inline="no-display-inline" id="H066B08896E5E42AEBCC4571AC4D598BD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFC0C273AB5F04333917EB855FC92170E"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H492E83B7CADA4036AB0D903284183D73"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB4CF1768A7114C8E9F87538A22B0C1D8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H49008BC52C294C539B22C9D1D05DF275"><enum>(2)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEC69041FA2BF42DD8D43B109638590D2"><enum>(3)</enum><header display-inline="yes-display-inline">Expiration</header><text display-inline="yes-display-inline">Each registration shall expire at such time
as the Commission may by rule or regulation prescribe.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5463D0ECE3004A3CAA3D3F521B6C1E85"><enum>(4)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Except as provided in subsections (c) and
(d), 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 subsection (d)(1)(A), the Commission may
provide conditional or unconditional exemptions from some or all of the rules
or requirements prescribed under this section for security-based swap dealers
and major security-based swap participants.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H45E92C57D4354F59AC6AB85F9DCFA137"><enum>(5)</enum><header display-inline="yes-display-inline">Transition</header><text display-inline="yes-display-inline">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>Derivative Markets Transparency and
Accountability Act of 2009</short-title>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3062D15705BC4679A11F7D30CB49B7FC"><enum>(c)</enum><header display-inline="yes-display-inline">Rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H63A171D5884043C5A778743A8742614E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Commission shall adopt rules for persons that are registered as
security-based swap dealers or major security-based swap participants under
this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H996543D5D84D49BE8D9DDFF51392F9B9"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for prudential
requirements</header><text display-inline="yes-display-inline">The Commission
shall not prescribe rules imposing prudential requirements 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 to prescribe appropriate business conduct,
reporting, and recordkeeping requirements to protect investors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H106F8C5E70434302B3BDC9FFDA4D4A32"><enum>(d)</enum><header display-inline="yes-display-inline">Capital and margin requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA591561A1200482BB7E90474561CF709"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H165503C5416A4B989E0E31B6816BF7FC"><enum>(A)</enum><header display-inline="yes-display-inline">Bank security-based swap dealers and major
security-based swap participants</header><text display-inline="yes-display-inline">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 initial and
variation margin requirements as the Prudential Regulators shall by rule or
regulation jointly prescribe that—</text>
<clause commented="no" display-inline="no-display-inline" id="HE0B7794ED1D6490FBAA294776CE28D96"><enum>(i)</enum><text display-inline="yes-display-inline">help ensure the safety and soundness of the
security-based swap dealer or major security-based swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD03E6A90B4A94111A4A4FE062B5F500C"><enum>(ii)</enum><text display-inline="yes-display-inline">are appropriate for the risk associated
with the non-cleared swaps held as a swap dealer or major swap
participant.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8C02DCABFE604C32AFA86731291702D0"><enum>(B)</enum><header display-inline="yes-display-inline">Non-bank security-based swap dealers and
major security-based swap participants</header><text display-inline="yes-display-inline">Each registered security-based swap dealer
and major security-based swap participant for which there is not a Prudential
Regulator shall meet such minimum capital requirements and minimum initial and
variation margin requirements as the Commission shall by rule or regulation
prescribe that—</text>
<clause commented="no" display-inline="no-display-inline" id="HA92A6813415E4A8BAE0FE903E939A673"><enum>(i)</enum><text display-inline="yes-display-inline">help ensure the safety and soundness of the
security-based swap dealer or major security-based swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8A10C9A353D84004B4A9F443549CC972"><enum>(ii)</enum><text display-inline="yes-display-inline">are appropriate for the risk associated
with the non-cleared swaps held as the swap dealer or major swap
participant.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61D73C791FE14C2BA44A602764CAC50F"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8D76194FBDDF46E793ABD47EB14CB86F"><enum>(A)</enum><header display-inline="yes-display-inline">Bank security-based swap dealers and major
security-based swap participants</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the Derivative Markets Transparency and Accountability Act of
2009, the Prudential Regulators, in consultation with the Commission, shall
jointly adopt rules imposing capital and margin requirements under this
subsection for security-based swap dealers and major security-based swap
participants, with respect to their activities as a security-based swap dealer
or major security-based swap participant for which there is a Prudential
Regulator.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7C2BA6F438564B9EB06366BD5E428AFF"><enum>(B)</enum><header display-inline="yes-display-inline">Non-bank security-based swap dealers and
major security-based swap participants</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, the Commission shall
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 commented="no" display-inline="no-display-inline" id="HB93513CBFBC14128A978F10F79ED83AF"><enum>(3)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Nothing in this section shall limit the
authority of the Commission to set capital requirements for a broker or dealer
registered in accordance with section 15 of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA83D8B2230094F3497080349242B0919"><enum>(e)</enum><header display-inline="yes-display-inline">Reporting and recordkeeping</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9F98D25DF1E2400DAB15A079F8E87B70"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each registered security-based swap dealer
and major security-based swap participant—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HED69BC87EC504884A8B55D01A4D34743"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40A1A355BF564E32BFB1DA8E151389E1"><enum>(B)</enum><text display-inline="yes-display-inline">for which—</text>
<clause commented="no" display-inline="no-display-inline" id="H9EBBBA4A136943BDBE6F04B251181718"><enum>(i)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9730D8ED789D4E649825BBC3EEBEA993"><enum>(ii)</enum><text display-inline="yes-display-inline">there is no Prudential Regulator shall keep
books and records in such form and manner and for such period as may be
prescribed by the Commission by rule or regulation; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H01A72189F23347E2947012A1FA814A13"><enum>(C)</enum><text display-inline="yes-display-inline">shall keep such books and records open to
inspection and examination by any representative of the Commission.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6256E77ECA884DD6B9B6FE7AEB667474"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, the Commission shall
adopt rules governing reporting and recordkeeping for security-based swap
dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D840B6759554573AA514121B6E0F712"><enum>(f)</enum><header display-inline="yes-display-inline">Daily trading records</header>
<paragraph commented="no" display-inline="no-display-inline" id="H250768189D90444F8ED19756B86026C3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA26A9F814E1B4D97BFAFD5F335290AB3"><enum>(2)</enum><header display-inline="yes-display-inline">Information requirements</header><text display-inline="yes-display-inline">The daily trading records shall include
such information as the Commission shall prescribe by rule or
regulation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C75E02EB8594EEEA86E1309F4FA9396"><enum>(3)</enum><header display-inline="yes-display-inline">Customer records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3DD4D403CF894C0EB997400228B9BCAA"><enum>(4)</enum><header display-inline="yes-display-inline">Audit trail</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0016792312543AF9FB4F0A27895095E"><enum>(5)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, the Commission shall
adopt rules governing daily trading records for security-based swap dealers and
major security-based swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF5A236DCE11443CAB7695142F1064A3A"><enum>(g)</enum><header display-inline="yes-display-inline">Business conduct standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF8A8A35720E84E338F4BF7702474A7F7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C92782C012F4191A7BE83E876C04C44"><enum>(A)</enum><text display-inline="yes-display-inline">fraud, manipulation, and other abusive
practices involving security-based swaps (including security-based swaps that
are offered but not entered into);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H889B2F282DDF4E8EBE4641CDD1B0BB4D"><enum>(B)</enum><text display-inline="yes-display-inline">diligent supervision of its business as a
security-based swap dealer;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E38187D456F4D9D93578F72C75CEF0F"><enum>(C)</enum><text display-inline="yes-display-inline">adherence to all applicable position
limits; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE573F80B8AA2402299F97F4AADE5C24E"><enum>(D)</enum><text display-inline="yes-display-inline">such other matters as the Commission shall
determine to be necessary or appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H339076C09FB74E1DA1EF81C369EC1794"><enum>(2)</enum><header display-inline="yes-display-inline">Business conduct requirements</header><text display-inline="yes-display-inline">Business conduct requirements adopted by
the Commission shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1644D1A508364BE68067D312A2349583"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB860DBD88D764FA2B44A9859A5B10BAE"><enum>(B)</enum><text display-inline="yes-display-inline">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 security-based swap dealer or major
security-based swap participant) of:</text>
<clause commented="no" display-inline="no-display-inline" id="H9DC91B8CCCA549309C49DB47E58163AF"><enum>(i)</enum><text display-inline="yes-display-inline">information about the material risks and
characteristics of the security-based swap;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA39451ED5882466BA49053B78AB3CCBF"><enum>(ii)</enum><text display-inline="yes-display-inline">for cleared security-based swaps, upon the
request of the counterparty, the daily mark from the appropriate clearing
agency, and for non-cleared security-based swaps, upon request of the
counterparty, the daily mark of the security-based swap dealer or major
security-based swap participant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD10FF77AFB8B495FA21E7330D3750676"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E8AC173E76742598EA53C97DC57F67C"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBD3D8A2B7A074291B14056DF715B4069"><enum>(3)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">The Commission shall prescribe rules under
this subsection governing business conduct standards for security-based swap
dealers and major security-based swap participants not later than 1 year after
the date of enactment of the <short-title>Derivative
Markets Transparency and Accountability Act of 2009</short-title>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7C36D2CB839B448F936F5FD8E25B378C"><enum>(h)</enum><header display-inline="yes-display-inline">Documentation standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H08FE7502C70A40AD94D16FB5C5BA34DE"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC21C1FB7F5D244F7BA1B73E097BE2560"><enum>(2)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title>, the Commission and
the appropriate Federal banking agencies, shall adopt rules governing the
standards described in paragraph (1) for security-based swap dealers and major
security-based swap participants.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8A11B79AFA7D46AAB282F2D9C10F3095"><enum>(i)</enum><header display-inline="yes-display-inline">Dealer responsibilities</header><text display-inline="yes-display-inline">Each registered security-based swap dealer
and major security-based swap participant at all times shall comply with the
following requirements:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE1828115F9684B7C930A8E4115BCB17B"><enum>(1)</enum><header display-inline="yes-display-inline">Monitoring of trading</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDBB165FC35334396A95A51A09C16D416"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of general
information</header><text display-inline="yes-display-inline">The
security-based swap dealer or major security-based swap participant shall
disclose to the Commission or to the Prudential Regulator for such
security-based swap dealer or major security-based swap participant, as
applicable, information concerning—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2EB530F95847470FA7D63810217E4CDE"><enum>(A)</enum><text display-inline="yes-display-inline">terms and conditions of its security-based
swaps;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B9256598C664497A10F8A30E11B4570"><enum>(B)</enum><text display-inline="yes-display-inline">security-based swap trading operations,
mechanisms, and practices;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9CA71638B14749ACB9CC02F65ABEB983"><enum>(C)</enum><text display-inline="yes-display-inline">financial integrity protections relating to
security-based swaps; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H753619727DC44109AE5BB26324B85FC6"><enum>(D)</enum><text display-inline="yes-display-inline">other information relevant to its trading
in security-based swaps.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38ECB6475A3D4C94BBD6137E836476B3"><enum>(3)</enum><header display-inline="yes-display-inline">Ability to obtain information</header><text display-inline="yes-display-inline">The security-based swap dealer or major
swap security-based participant shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA7145DCAAD7245A689A204B48CC247D6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6567CD0D6A7F4D2786176A6721B2C00D"><enum>(B)</enum><text display-inline="yes-display-inline">provide the information to the Commission
or to the Prudential Regulator for such security-based swap dealer or major
security-based swap participant, as applicable, upon request.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H40A2476D4D28425F94766DDAE5D1141C"><enum>(4)</enum><header display-inline="yes-display-inline">Conflicts of interest</header><text display-inline="yes-display-inline">The security-based swap dealer and major
security-based swap participant shall implement conflict-of-interest systems
and procedures that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H726F5CB22A13412ABABA33C02D204AF9"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFD737AA8FFD74E0E8562F032090F6FA6"><enum>(B)</enum><text display-inline="yes-display-inline">address such other issues as the Commission
determines appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCD2CA14A9CDC4DD7849C591BA46D87F1"><enum>(j)</enum><header display-inline="yes-display-inline">Statutory disqualification</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7D296911EDF346708020BEA6861D5B48"><enum>(k)</enum><header display-inline="yes-display-inline">Enforcement and administrative proceeding
authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1F25A2752999429E8F2351F8F07BD8C5"><enum>(1)</enum><header display-inline="yes-display-inline">Primary enforcement authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8164C0EF1319475AB84BB8D13A9E83D1"><enum>(A)</enum><header display-inline="yes-display-inline">SEC</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
Commission shall have exclusive authority to enforce the amendments made by
subtitle B of the <short-title>Derivative Markets
Transparency and Accountability Act of 2009</short-title> with respect to any
person.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3E84FDDB73044F76A60B9A4BEC6756B5"><enum>(B)</enum><header display-inline="yes-display-inline">Prudential regulators</header><text display-inline="yes-display-inline">The Prudential Regulators shall have
exclusive authority to enforce the provisions of section 15F(d) 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 commented="no" display-inline="no-display-inline" id="HB1709E81EF6E4BE8AB360B3EF8CB62F2"><enum>(C)</enum><header display-inline="yes-display-inline">Referral</header>
<clause commented="no" display-inline="no-display-inline" id="H4CEDE1EE6E1C4C33A0ACA7D486B17BFA"><enum>(i)</enum><header display-inline="yes-display-inline">Violations of nonprudential
requirements</header><text display-inline="yes-display-inline">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>
</clause><clause commented="no" display-inline="no-display-inline" id="H349ADBA4D0DC4E6C9B5A04626F835A59"><enum>(ii)</enum><header display-inline="yes-display-inline">Violations of prudential
requirements</header><text display-inline="yes-display-inline">If the
Commission has cause to believe that a securities-based swap dealer or major
securities-based swap participant that has a Prudential Regulator may have
engaged in conduct that constitute a violation of the prudential requirements
of section 15F(e) or rules adopted thereunder, the Commission may recommend in
writing to the Prudential Regulator that the Prudential Regulator initiate an
enforcement proceeding as authorized under this Act. The recommendation shall
be accompanied by a written explanation of the concerns giving rise to the
recommendation.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8A7AC18FFA946C69A31EB05322753F5"><enum>(2)</enum><header display-inline="yes-display-inline">Censure, denial, suspension; notice and
hearing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3661E473E8634DD6894D9BB164F43134"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8EE3FC4657BB40F3BCB873BFFD236E4F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB8BABD87B8E14714A41F3F5E8AE2E6F2"><enum>(C)</enum><text display-inline="yes-display-inline">is enjoined from any action, conduct, or
practice specified in subparagraph (C) of such paragraph (4);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H10009EE63D634453B5B46747C812DD1E"><enum>(D)</enum><text display-inline="yes-display-inline">is subject to an order or a final order
specified in subparagraph (F) or (H), respectively, of such paragraph (4);
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H25F6E5540A1041D6BDA2E5E2380ECC76"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDE1846D8A7346D3A83F60E6856E3B27"><enum>(3)</enum><header display-inline="yes-display-inline">Associated persons</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46058A188360477498224BE95E542008"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E771CFDA8284B95849490E6C3FDC855"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4536A58506BA4C5CB570F40D3E494F56"><enum>(C)</enum><text display-inline="yes-display-inline">is enjoined from any action, conduct, or
practice specified in subparagraph (C) of such paragraph (4);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H45415736144E4ACEA7B3378BBBC8F2DB"><enum>(D)</enum><text display-inline="yes-display-inline">is subject to an order or a final order
specified in subparagraph (F) or (H), respectively, of such paragraph (4);
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61D905EA96A543E7B3101C245823C36E"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3C8EFC0725384C83A57871E368478D57"><enum>(4)</enum><header display-inline="yes-display-inline">Unlawful conduct</header><text display-inline="yes-display-inline">It shall be unlawful—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2A4BAEB45BB94DFABBC76512E15BA707"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F5BADFC34804BBFB398BE2F8519D7B4"><enum>(B)</enum><text display-inline="yes-display-inline">for any security-based swap dealer or major
security-based swap participant to permit such a person, without the consent of
the Commission, to become or remain a person associated with the security-based
swap dealer or major security-based swap participant in contravention of such
order, if such security-based swap dealer or major security-based swap
participant knew, or in the exercise of reasonable care should have known, of
such
order.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HA63FBC564FF8401A9112F9C73D96031A" section-type="subsequent-section"><enum>3205.</enum><header display-inline="yes-display-inline">Reporting and recordkeeping</header>
<subsection commented="no" display-inline="no-display-inline" id="HE7341666A7A74C3590D40D637AAA9FC9"><enum>(a)</enum><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 13 the following
section:</text>
<quoted-block display-inline="no-display-inline" id="HB5159782173843628417F9F9D5787491" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HAB77BE429DB74B548E371FF0C819CD7A" section-type="subsequent-section"><enum>13A.</enum><header display-inline="yes-display-inline">Reporting and recordkeeping for certain
security-based swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H5C0B2B225443453CA87ACBADA4F484FC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any person who enters into a security-based
swap and—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF861F1405C294FD5A0C9DA8DCE905E20"><enum>(1)</enum><text display-inline="yes-display-inline">did not clear the security-based swap in
accordance with section 3A; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBC48A628A562496697F33CEA1EAA0AB3"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" continuation-text-level="subsection">shall meet the requirements in
subsection (b).</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="H6E90DC47AEEB4732B9CB998062132BE0"><enum>(b)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">Any person described in subsection (a)
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4F048A1F2ABF47C4A55CC1FD4C43CD6E"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA516F002734A477C95F7813AF42D2C5A"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBAA23AA74B7745E2BBD63146DD932F23"><enum>(c)</enum><header display-inline="yes-display-inline">Identical
data</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0B5C9B95C66844DDA81D88EB4A4C763F"><enum>(b)</enum><header display-inline="yes-display-inline">Beneficial ownership reporting</header>
<paragraph commented="no" display-inline="no-display-inline" id="H93A3454016B041339DEA4ED82AD2F894"><enum>(1)</enum><text display-inline="yes-display-inline">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
that the Commission may define by rule, and</quote> after <quote>Alaska Native
Claims Settlement Act,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H781E7E248553402DA74CBF4B0DAFF978"><enum>(2)</enum><text display-inline="yes-display-inline">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 that the Commission may define by
rule</quote> after <quote>subsection (d)(1) of this section</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H723DC9856E3C4970B948902C22244EE6"><enum>(c)</enum><header display-inline="yes-display-inline">Reports by institutional investment
managers</header><text display-inline="yes-display-inline">Section 13(f)(1) of
the Securities Exchange Act of 1934 (15 U.S.C. 78m(f)(1)) is amended by
inserting <quote>or otherwise becomes or is deemed to become a beneficial owner
of any security of a class described in subsection (d)(1) upon the purchase or
sale of a security-based swap or other derivative instrument that the
Commission may define by rule,</quote> after <quote>subsection (d)(1) of this
section</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0EFEEDBD58164740B84F31AE0E7F9DDE"><enum>(d)</enum><header display-inline="yes-display-inline">Administrative proceeding
authority</header><text display-inline="yes-display-inline">Section 15(b)(4) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)(4)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAA77E275EBF24FA2A8630A62E766B84F"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C), by adding
<quote>security-based swap dealer, major security-based swap
participant,</quote> after <quote>government securities dealer,</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5269F1A6CFA74479A11E0DD784E9890B"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (F), by adding <quote>, or
security-based swap dealer, or a major security-based swap participant</quote>
after <quote>or dealer</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H014E19843CF84866AB5FC7B4F9A4D87E"><enum>(e)</enum><header display-inline="yes-display-inline">Derivatives beneficial
ownership</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="HA821DE0D8B4F411190072CC4BB718457" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8102853007734B47B86C52AFA8EB9AB2"><enum>(o)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H49955960E99E47E2B4C769D878544335" section-type="subsequent-section"><enum>3206.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H0AE47BE429CF4D46AFA36FB868B5D9BD" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H068215C64B5C4BEB869070914C28E2D4"><enum>(a)</enum><text display-inline="yes-display-inline">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 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. A security-based swap may not be
regulated as an insurance contract under State
law.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HDA38AA2945FA4E2A81F11B0FA692F2B7" section-type="subsequent-section"><enum>3207.</enum><header display-inline="yes-display-inline">Amendments to the Securities Act of 1933;
treatment of security-based swaps</header>
<subsection commented="no" display-inline="no-display-inline" id="H5B91A141F6B046119E0B3929970197A6"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 2(a) of the Securities Act of 1933
(15 U.S.C. 77b(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB368EC2FF832472D912C04D6E3468F07"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting
<quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H00C01CB2C11E4D42B535BC34F16C13C4"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23C25BA56939494DB6CF67B607D77BF4"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA964B9B7377D41BFB718988197B4B634" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7D199B5D3DEB4CD891A1D9C3C19B5B83"><enum>(17)</enum><text display-inline="yes-display-inline">The terms <term>swap</term> and
<term>security-based swap</term> have the same meanings as provided in sections
1a(35) of the Commodity Exchange Act (7 U.S.C. 1a(35)) and section 3(a)(68) of
the Securities Exchange Act of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H568F23DA391342138AA2DB62BBA6077F"><enum>(18)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC057355F0DF24E888C43FB4862C1A389"><enum>(b)</enum><header display-inline="yes-display-inline">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="HFD874C25A99E4E06BC3BD1DA9ED6524F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB8A4AD97A6764E93B2B946EB8FC4BB4F"><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 Derivative Markets
Transparency and Accountability Act of 2009. The Commission shall promulgate
rules implementing this
exemption.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3B107B73265749979C971C3BB633C618"><enum>(c)</enum><header display-inline="yes-display-inline">Registration of security-based
swaps</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H8708916B41EF427DB58A168D471301E3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1A349022717D487F83CB241511C71F1F"><enum>(d)</enum><text display-inline="yes-display-inline">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(12) of the Commodity Exchange Act (7 U.S.C.
1a(12)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7F37A7C57592401D930B5000FD0B6528" section-type="subsequent-section"><enum>3208.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8ADDB42DF9644DB7A86429F43069D878" section-type="subsequent-section"><enum>3209.</enum><header display-inline="yes-display-inline">Jurisdiction</header>
<subsection commented="no" display-inline="no-display-inline" id="H72D0ED8F8E2F4342899BFCC1E5D579F7"><enum>(a)</enum><text display-inline="yes-display-inline">Section 36 of the Securities Exchange Act
of 1934 (15 U.S.C. 78mm) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF047E1949E6D4E98BE33DCAEFB09B89B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HCCBC916D3C5A4A6B958EDB1FD6C9E026"><enum>(c)</enum><header display-inline="yes-display-inline">Derivatives</header><text display-inline="yes-display-inline">The Commission shall not grant exemptions
from the security-based swap provisions of the
<short-title>Derivative Markets Transparency and
Accountability Act of 2009</short-title>, except as expressly authorized under
the provisions of that
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H20F3DE4518B848E2A1486A77ED96788F"><enum>(b)</enum><text display-inline="yes-display-inline">Section 30 of the Securities Exchange Act
of 1934 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0596C1F2902C4EC0840D84F821E0B5AE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2EE30716471C4E75BBA40F66EC1D6230"><enum>(c)</enum><text display-inline="yes-display-inline">No provision of this Act that was added by
the Derivative Markets Transparency and Accountability Act of 2009 or any rule
or regulation thereunder shall apply to any person insofar as such person
transacts a business in security-based swaps without the jurisdiction of the
United States unless he transacts such business in contravention of such rules
and regulations as the Commission may prescribe as necessary or appropriate to
prevent the evasion of any provision of this Act that was added by the
Derivative Markets Transparency and Accountability Act of 2009. This subsection
shall not be construed to limit the jurisdiction of the Commission under any
provision of this Act as in effect prior to enactment of the Derivative Markets
Transparency and Accountability Act of
2009.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H716AA1959F824355B4EF14F19E157F2B" section-type="subsequent-section"><enum>3210.</enum><header display-inline="yes-display-inline">Effective date</header>
<subsection commented="no" display-inline="no-display-inline" id="HD78FCCC0BD8848FBA8EDCA4EEF83F653"><enum>(a)</enum><text display-inline="yes-display-inline">Unless otherwise provided, the provisions
of this subtitle shall become effective the later of 270 days after the date of
the enactment of this subtitle or, to the extent a provision of this subtitle
requires rulemaking, no less than 60 days after publication of a final rule or
regulation implementing such provision of this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB14A38F551B64ECDB6D6ED70657A4E8E"><enum>(b)</enum><text display-inline="yes-display-inline">Subsection (a) shall not preclude the
Securities Exchange Commission from any rulemaking required to implement the
provisions of this subtitle.</text>
</subsection></section></subtitle><subtitle commented="no" id="HEE4E7C52466341DCB5A4DA313D79DC20" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Improved financial and commodity markets
oversight and accountability</header>
<section commented="no" display-inline="no-display-inline" id="HD47828FA72254FC4B45B050252F42D48" section-type="subsequent-section"><enum>3301.</enum><header display-inline="yes-display-inline">Elevation of certain Inspectors General to
appointment pursuant to section 3 of the Inspector General Act of 1978</header>
<subsection commented="no" display-inline="no-display-inline" id="H17620D63492146C2936CFDDD891357B7"><enum>(a)</enum><header display-inline="yes-display-inline">Inclusion in certain
definitions</header><text display-inline="yes-display-inline">Section 12 of the
Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCFF842E63C714BF78097CF59BF43B844"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>or the
Federal Cochairpersons of the Commissions established under section 15301 of
title 40, United States Code;</quote> and inserting <quote>the Federal
Cochairpersons of the Commissions established under section 15301 of title 40,
United States Code; the Chairman of the Board of Governors of the Federal
Reserve System; the Chairman of the Commodity Futures Trading Commission; the
Chairman of the National Credit Union Administration; the Director of the
Pension Benefit Guaranty Corporation; the Chairman of the Securities and
Exchange Commission; or the Director of the Consumer Financial Protection
Agency;</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C930E0B613F4C4FB57F3C74CA7F25CC"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>or the
Commissions established under section 15301 of title 40, United States
Code,</quote> and inserting <quote>the Commissions established under section
15301 of title 40, United States Code, the Board of Governors of the Federal
Reserve System, the Commodity Futures Trading Commission, the National Credit
Union Administration, the Pension Benefit Guaranty Corporation, the Securities
and Exchange Commission, or the Director of the Consumer Financial Protection
Agency,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9895A451174447D5B8203B7BD83990AA"><enum>(b)</enum><header display-inline="yes-display-inline">Exclusion from definition of designated
Federal entity</header><text display-inline="yes-display-inline">Section
8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H607B4595AB0B450DBDA6B7E6A1DE7214"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>the Board of Governors
of the Federal Reserve System,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE745240B35EE45FFA474F0632AAC28D0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>the Commodity Futures
Trading Commission,</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB69870AA6A2540D0A76116B2B99C89DA"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>the National Credit
Union Administration,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF3369E0A33F4E04A31B634A7A18D1C7"><enum>(4)</enum><text display-inline="yes-display-inline">by striking <quote>the Pension Benefit
Guaranty Corporation, the Securities and Exchange Commission,</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4AAA0C08927E419A8B32B91C2F81EC49" section-type="subsequent-section"><enum>3302.</enum><header display-inline="yes-display-inline">Continuation of provisions relating to
personnel</header>
<subsection commented="no" display-inline="no-display-inline" id="H7A79B55624BE4992A60CB6998847FF1B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Inspector General Act of 1978 (5 U.S.C.
App.) is amended by inserting after section 8L the following:</text>
<quoted-block display-inline="no-display-inline" id="H46B7047FEE944C9DA11AB819C9B49C67" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HEB320798A4764BA9AD2AAD0E339738C9" section-type="subsequent-section"><enum>8M.</enum><header display-inline="yes-display-inline">Special provisions concerning certain
establishments</header>
<subsection commented="no" display-inline="no-display-inline" id="H28A10D252D82429EB5DA810839945211"><enum>(a)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>covered establishment</term> means the Board of Governors of the Federal
Reserve System, the Commodity Futures Trading Commission, the National Credit
Union Administration, the Pension Benefit Guaranty Corporation, and the
Securities and Exchange Commission.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4DF635F185524F0BBDDDBD052AA0AB78"><enum>(b)</enum><header display-inline="yes-display-inline">Provisions relating to all covered
establishments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H239184D63F174CCC92BF17F4FB6FE693"><enum>(1)</enum><header display-inline="yes-display-inline">Provisions relating to Inspectors
General</header><text display-inline="yes-display-inline">In the case of the
Inspector General of a covered establishment, subsections (b) and (c) of
section 4 of the Inspector General Reform Act of 2008 (Public Law 110–409)
shall apply in the same manner as if such covered establishment were a
designated Federal entity under section 8G. An Inspector General who is subject
to the preceding sentence shall not be subject to section 3(e).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7AEF700440B34D3D85966318E9BA3704"><enum>(2)</enum><header display-inline="yes-display-inline">Provisions relating to other
personnel</header><text display-inline="yes-display-inline">Notwithstanding
paragraphs (7) and (8) of section 6(a), the Inspector General of a covered
establishment may select, appoint, and employ such officers and employees as
may be necessary for carrying out the functions, powers, and duties of the
Office of Inspector General of such establishment and to obtain the temporary
or intermittent services of experts or consultants or an organization of
experts or consultants, subject to the applicable laws and regulations that
govern such selections, appointments, and employment, and the obtaining of such
services, within such establishment.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4CF7CF8227D64F70948C250971509463"><enum>(c)</enum><header display-inline="yes-display-inline">Provision relating to the Board of
Governors of the Federal Reserve System</header><text display-inline="yes-display-inline">The provisions of subsection (a) of section
8D (other than the provisions of subparagraphs (A), (B), (C), and (E) of
paragraph (1) of such subsection (a)) shall apply to the Inspector General of
the Board of Governors of the Federal Reserve System and the Chairman of the
Board of Governors of the Federal Reserve System in the same manner as such
provisions apply to the Inspector General of the Department of the Treasury and
the Secretary of the Treasury,
respectively.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H12368ADC59434D538BCA9894ED0F2C1F"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (3) of section 8G(g) of the
Inspector General Act of 1978 (5 U.S.C. App.) is repealed.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H4A6B0875DAFF43DA8F80D7B0EC83155A" section-type="subsequent-section"><enum>3303.</enum><header display-inline="yes-display-inline">Corrective responses by heads of certain
establishments to deficiencies identified by Inspectors General</header><text display-inline="no-display-inline">The Chairman of the Board of Governors of
the Federal Reserve System, the Chairman of the Commodity Futures Trading
Commission, the Chairman of the National Credit Union Administration, the
Director of the Pension Benefit Guaranty Corporation, and the Chairman of the
Securities and Exchange Commission shall each—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCA0FE743AF214615BF40B66B04F66FD9"><enum>(1)</enum><text display-inline="yes-display-inline">take action to address deficiencies
identified by a report or investigation of the Inspector General of the
establishment concerned; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H126CE52DBF9E48A184CAEA4C943CB4F2"><enum>(2)</enum><text display-inline="yes-display-inline">certify to both Houses of Congress that no
action is necessary or appropriate in connection with a deficiency described in
paragraph (1).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H2E60FB2B667D4AFA9E534665E08B08F8" section-type="subsequent-section"><enum>3304.</enum><header display-inline="yes-display-inline">Effective date; transition rule</header>
<subsection commented="no" display-inline="no-display-inline" id="HF34DDC4A2EE94DCEA31DF2C4124EA380"><enum>(a)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This subtitle and the
amendments made by this subtitle shall take effect 30 days after the date of
the enactment of this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H23B9E65758B94FA18B08CE4C821E2F3D"><enum>(b)</enum><header display-inline="yes-display-inline">Transition rule</header><text display-inline="yes-display-inline">An individual serving as Inspector General
of the Board of Governors of the Federal Reserve System, the Commodity Futures
Trading Commission, the National Credit Union Administration, the Pension
Benefit Guaranty Corporation, or the Securities and Exchange Commission on the
effective date of this subtitle pursuant to an appointment made under section
8G of the Inspector General Act of 1978 (5 U.S.C. App.)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6805F44DCE4748AA8828E784F34544A0"><enum>(1)</enum><text display-inline="yes-display-inline">may continue so serving until the President
makes an appointment under section 3(a) of such Act with respect to the Board
of Governors of the Federal Reserve System, the Commodity Futures Trading
Commission, the National Credit Union Administration, the Pension Benefit
Guaranty Corporation, or the Securities and Exchange Commission, as the case
may be, consistent with the amendments made by section 301; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCB7B9350359941789620C2A90028D32C"><enum>(2)</enum><text display-inline="yes-display-inline">shall, while serving under paragraph (1),
remain subject to the provisions of section 8G of such Act which, immediately
before the effective date of this subtitle, applied with respect to the
Inspector General of the Board of Governors of the Federal Reserve System, the
Commodity Futures Trading Commission, the National Credit Union Administration,
the Pension Benefit Guaranty Corporation, or the Securities and Exchange
Commission, as the case may be, and suffer no reduction in pay.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H5F2E1D7857C440F99EE936E8AFF49C40" section-type="subsequent-section"><enum>3305.</enum><header display-inline="yes-display-inline">Authority of the Commodity Futures Trading
Commission to define <quote>commercial risk</quote>, <quote>operating
risk</quote>, and <quote>balance sheet risk</quote></header>
<subsection commented="no" display-inline="no-display-inline" id="HA23AF95C1A6949F0A4BC24A36F0B62F8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1a of the Commodity Exchange Act (7
U.S.C. 1a), as amended by the preceding provisions of this Act, is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6E58078D256D4E35AEC5BD71932CCC0D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4EEF094CE2A94B808B9CF6B14E0982D3"><enum>(51)</enum><header display-inline="yes-display-inline">Commercial risk; operating risk; balance
sheet risk</header><text display-inline="yes-display-inline">The terms
<quote>commercial risk</quote>, <quote>operating risk</quote>, and
<quote>balance sheet risk</quote> shall have such meanings as the Commission
may
prescribe.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA0D29EDB47E7473C80D7B22B4982CED1"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall take effect as if included in subtitle A.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HABD61D69D1C04D9999090CA79BB91A05" section-type="subsequent-section"><enum>3306. </enum><header display-inline="yes-display-inline">Conflicts of interest in clearing
organizations</header>
<subsection commented="no" display-inline="no-display-inline" id="H987071C7CF684D2F901854FE5693208C"><enum>(a)</enum><header display-inline="yes-display-inline">Commodity Exchange Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD3B107ABB2C54B3AB2438A2AC98A2633"><enum>(1)</enum><header display-inline="yes-display-inline">Definition of restricted
owner</header><text display-inline="yes-display-inline">Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) (as amended by the preceding provisions of
this Act) is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF7B2F971C7774CAE8CA72B54CF53FDD6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H52D8776540124A42AB503985B5549FE5"><enum>(51)</enum><header display-inline="yes-display-inline">Restricted owner</header><text display-inline="yes-display-inline">The term ‘restricted owner’ means any swap
dealer, security-based swap dealer, major swap participant, or major
security-based swap participant, that is an identified financial holding
company as defined in Section 1000(b)(5) of the Financial Stability Improvement
Act of 2009, or a person associated with a swap dealer or a major swap
participant that is an identified financial holding company, or a person
associated with a security-based swap dealer or major security-based swap
participant that is an identified financial holding
company.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1CA404A06AF8439096DE867A88E0BAA5"><enum>(2)</enum><header display-inline="yes-display-inline">Conflicts of interest</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H72C86BC693C4436C9D2C2C8EAB62432B"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (P) of section 5b(c)(2) of the
Commodity Exchange Act (as added by the preceding provisions of this Act) is
amended by adding at the end of such subparagraph the following: <quote>The
rules of the derivatives clearing organization that clears swaps shall provide
that a restricted owner shall not be permitted directly or indirectly to
acquire beneficial ownership of interests in the organization or in persons
with a controlling interest in the organization, to the extent that such an
acquisition would result in restricted owners being entitled to vote, cause the
voting of, or cause the withholding of votes of, more than 20 percent of the
votes entitled to be cast on any matter by the holders of the ownership
interests. The rules of the derivatives clearing organization shall provide
that a majority of the directors of the organization shall not be associated
with a restricted owner. This subparagraph shall not be construed to require
divestiture of any interest of a restricted owner in an established and
operational derivatives clearing organization acquired prior to January 1,
2010, provided that acquisitions by such restricted owner after such date shall
be subject to this subparagraph. The Commission may determine whether any
acquisition by a restricted owner during any interim period prior to the date
of the enactment of this Act has been made for the purpose of avoiding the
effect of this subparagraph.</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H695A0DAD02CB49C08BE27F7EF258CD4A"><enum>(B)</enum><text display-inline="yes-display-inline">Section 4s(g)(1) of the Commodity Exchange
Act (as added by the preceding provisions of this Act) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="H4B94E8D111044493A817B53E30C08050"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (C); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3D74BF9571B646398B4E5EA9DDF9D1CF"><enum>(ii)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (D) as
subparagraph (E) and insert after subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="H06E4FE8828564759B774E808481B1E77" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA2D0893D5B324618AD2864F86C9E676D"><enum>(D)</enum><text display-inline="yes-display-inline">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><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEE83C59A40B54357BDC422D709C9BD6E"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraph (12) of section 5h(d) of the
Commodity Exchange Act (as added by the preceding provisions of this Act) is
amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H56275E4C2A8D4166983FAAA3D2D4CF43" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8A3DFC2A759A4F7BB4B85BBE87BF3C30"><enum>(C)</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 being entitled to vote, cause the
voting of, or cause the withholding of votes of, more than 20 percent of the
votes entitled to be cast on any matter by the holders of the ownership
interests. This subparagraph shall not be construed to require divestiture of
any interest of a restricted owner in an established and operational swap
execution facility acquired prior to January 1, 2010, provided that
acquisitions by such restricted owner after such date shall be subject to this
subparagraph. The Commission may determine whether any acquisition by a
restricted owner during any interim period prior to the date of the enactment
of this Act has been made for the purpose of avoiding the effect of this
subparagraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H72A83E5A218D4297B9D27ED9DFDB2C24"><enum>(D)</enum><text display-inline="yes-display-inline">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><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H11C80A43F8DC471D9AE49BC4201C4430"><enum>(D)</enum><text display-inline="yes-display-inline">Section 5(d) of the Commodity Exchange Act
(as amended by the preceding provisions of this Act) is further amended by
striking paragraph (15) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HB7237D3F0EB8421D88CEB23E75CC28D6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HBD36B9328C1B41F2AD769E11C0953989"><enum>(15)</enum><header display-inline="yes-display-inline">Conflicts of interest</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H44ADBA7C9E964BCB85A761428DD691CB"><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 commented="no" display-inline="no-display-inline" id="H321AED99D4684E54B6A7D43353916029"><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 being entitled to
vote, cause the voting of, or cause the withholding of votes of, more than 20
percent of the votes entitled to be cast on any matter by the holders of the
ownership interests. This paragraph shall not be construed to require
divestiture of any interest of a restricted owner in an established and
operational board of trade acquired prior to January 1, 2010, provided that
acquisitions by such restricted owner after such date shall be subject to this
paragraph. The Commission may determine whether any acquisition by a restricted
owner during any interim period prior to the date of the enactment of this Act
has been made for the purpose of avoiding the effect of this paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BC1085EFBBE4EDE9A4BA185DF5AA51F"><enum>(C)</enum><text display-inline="yes-display-inline">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>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE29116DA31B541CFB10549D45897BEB3"><enum>(b)</enum><header display-inline="yes-display-inline">Securities Exchange Act of 1934</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF38D39A23E4046D982BF34DFBEDBF87B"><enum>(1)</enum><header display-inline="yes-display-inline">Definition of restricted
owner</header><text display-inline="yes-display-inline">Section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) (as amended by the preceding
provisions of this Act) is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H96DA1FB849994D5183DDBB2F13F4C005" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF5BA4DB71C8B49C69510FE83A22F7A76"><enum>(78)</enum><header display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HA5B7D509A0B24B28853A850ACBC340A3"><enum>(2)</enum><header display-inline="yes-display-inline">Conflicts of interest</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA7AE12BF40394A84B40E828ED770CDFE"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraph (10) of section 3C(d) of the
Securities Exchange Act of 1934 (as added by the preceding provisions of this
Act) is amended by adding after subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="HABBCAC45A82D4432A6C3851ABADC846D" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="section">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 being entitled to vote, cause
the voting of, or cause the withholding of votes of, more than 20 percent of
the votes entitled to be cast on any matter by the holders of the ownership
interests. 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. This paragraph shall not be construed to require divestiture
of any interest of a restricted owner in an established and operational swap
execution facility acquired prior to January 1, 2010, provided that
acquisitions by such restricted owner after such date shall be subject to this
paragraph. The Commission may determine whether any acquisition by a restricted
owner during any interim period prior to the date of the enactment of this Act
has been made for the purpose of avoiding the effect of this
paragraph.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H09EF945C4DDB443FA6F06E4D888CCAC6"><enum>(B)</enum><text display-inline="yes-display-inline">Section 15F(g)(1) of the Securities
Exchange Act of 1934 (as added by the preceding provisions of this Act) is
amended—</text>
<clause commented="no" display-inline="no-display-inline" id="H99488631F8A04F93A5FEDB8341BD0A8D"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (C), strike
<quote>and</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1BEF3890293A4EEEBFB5FCA0B46D2F92"><enum>(ii)</enum><text display-inline="yes-display-inline">insert after subparagraph (C) the following
(and redesignate the succeeding subparagraph accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H83F5A4AA790E4C828D788094AD7830CB" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8A180DF8D014423C941D6309AC3D9DEC"><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><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE49BC2502844A42B14F191292949E6E"><enum>(C)</enum><text display-inline="yes-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="H4FB9D65891F241C887A89BE1A67F1281" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H22B62874BDBE4DE8952EF69BB09A7D23"><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 commented="no" display-inline="no-display-inline" id="HA116024B74AB4D9B8EDEE63F82F244E1"><enum>(11)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5DDE72B03DB4D50AAFE1D8F4A0CE11B"><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 being
entitled to vote, cause the voting of, or cause the withholding of votes of,
more than 20 percent of the votes entitled to be cast on any matter by the
holders of the ownership interests. This paragraph shall not be construed to
require divestiture of any interest of a restricted owner in an established and
operational exchange acquired prior to January 1, 2010, provided that
acquisitions by such restricted owner after such date shall be subject to this
paragraph. The Commission may determine whether any acquisition by a restricted
owner during any interim period prior to the date of the enactment of this Act
has been made for the purpose of avoiding the effect of this
paragraph.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA60AC2E17FE4186920350516E6CA76B"><enum>(D)</enum><text display-inline="yes-display-inline">Section 17A(b)(3) of the Securities
Exchange Act of 1934 (15 U.S.C. 78f(b)) is amended by adding at the end the
following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H841A64FA5D8944A6A57BF8AC302E5BDD" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H44DCC53F21DB491F89D62962D856D281"><enum>(J)</enum><text display-inline="yes-display-inline">The rules of a clearing agency that clears
security-based swaps shall provide that a restricted owner shall not be
permitted directly or indirectly to acquire beneficial ownership of interests
in the agency or in persons with a controlling interest in the agency, to the
extent that such an acquisition would result in restricted owners being
entitled to vote, cause the voting of, or cause the withholding of votes of,
more than 20 percent of the votes entitled to be cast on any matter by the
holders of the ownership interests. This subparagraph shall not be construed to
require divestiture of any interest of a restricted owner in an established and
operational clearing agency acquired prior to January 1, 2010, provided that
acquisitions by such restricted owner after such date shall be subject to this
subparagraph. The Commission may determine whether any acquisition by a
restricted owner during any interim period prior to the date of the enactment
of this Act has been made for the purpose of avoiding the effect of this
subparagraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4560ACFC4FE34E51B8F05838B4E5896F"><enum>(K)</enum><text display-inline="yes-display-inline">The rules of the clearing agency shall
provide that a majority of the directors of the agency shall not be associated
with a restricted
owner.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H9179442B841B4EA986DE27E3CD65FC0F" section-type="subsequent-section"><enum>3307.</enum><header display-inline="yes-display-inline">Definitions of major swap participant and
major security-based swap participant</header>
<subsection commented="no" display-inline="no-display-inline" id="H02F6F3325719459F928DF4F191E96ECF"><enum>(a)</enum><header display-inline="yes-display-inline">Major swap participant</header><text display-inline="yes-display-inline">Section 1a(39) of the Commodity Exchange
Act (7 U.S.C. 1a), as added by the preceding provisions of this Act, is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE8C00156A7654AD0BF0DC5F6D7E2593B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC18DD7510A7F49A9B01160A6E00AD412"><enum>(39)</enum><header display-inline="yes-display-inline">Major swap participant</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6B0A8E5550CD49FCBD83668D5F89CA8B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>major swap
participant</term> means any person who is not a swap dealer, and—</text>
<clause commented="no" display-inline="no-display-inline" id="H810A8879099245689994292BBDE03946"><enum>(i)</enum><text display-inline="yes-display-inline">maintains a substantial net position in
outstanding swaps, excluding positions held primarily for hedging, reducing or
otherwise mitigating its commercial risk; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0E56BB55F6D94370B2550ED5F3EF03A8"><enum>(ii)</enum><text display-inline="yes-display-inline">whose outstanding swaps create substantial
net counterparty exposure that could have serious adverse effects on the
financial stability of the United States banking system or financial
markets.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7F1719AD4C364E628163D38AFEAF39D7"><enum>(B)</enum><header display-inline="yes-display-inline">Definition of substantial net
position</header><text display-inline="yes-display-inline">The Commission shall
define by rule or regulation the term ‘substantial net position’ at a threshold
that the Commission determines prudent for the effective monitoring,
management, and oversight of entities which are systemically important or can
significantly impact the financial system. In setting the definitions, the
Commission shall consider the person's relative position in uncleared as
opposed to cleared swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB553030E75C348E890326E6F85E926C3"><enum>(C)</enum><text display-inline="yes-display-inline">A person may be designated a major swap
participant for 1 or more individual types of swaps without being classified as
a major swap participant for all classes of
swaps.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H632B34C0B57446CF9F58A8BCE7A6F5E2"><enum>(b)</enum><header display-inline="yes-display-inline">Major security-based swap
participant</header><text display-inline="yes-display-inline">Section 3(a)(67)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), as added by the
preceding provisions of this Act, is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H18EAB9F0D9EE4D08B50C002176EED6B3" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCCB266E7B3FD4B28B5DD26794A4EA8B1"><enum>(67)</enum><header display-inline="yes-display-inline">Major security-based swap
participant</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4A6F227916C74E12BC4D62517083C4D7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>major security-based swap
participant</term> means any person who is not a security-based swap dealer,
and—</text>
<clause commented="no" display-inline="no-display-inline" id="HE91679DCD1B14511ACD3E0CC32436F2E"><enum>(i)</enum><text display-inline="yes-display-inline">maintains a substantial net position in
outstanding security-based swaps, excluding positions held primarily for
hedging, reducing or otherwise mitigating its commercial risk; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H067563B55353424AA921C9EFE20B899E"><enum>(ii)</enum><text display-inline="yes-display-inline">whose outstanding security-based swaps
create substantial net counterparty exposure that could have serious adverse
effects on the financial stability of the United States banking system or
financial markets.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H67ECEF56ADF9494BA10670FEA2D35264"><enum>(B)</enum><header display-inline="yes-display-inline">Definition of substantial net
position</header><text display-inline="yes-display-inline">The Commission shall
define by rule or regulation the term <quote>substantial net position</quote>
at a threshold that the Commission determines prudent for the effective
monitoring, management, and oversight of entities which are systemically
important or can significantly impact the financial system. In setting the
definitions, the Commission shall consider the person's relative position in
uncleared as opposed to cleared security-based swaps.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H79078D15C5834597A4C80A13D059559F"><enum>(C)</enum><text display-inline="yes-display-inline">A person may be designated a major
security-based swap participant for 1 or more individual types of
security-based swaps without being classified as a major security-based swap
participant for all classes of security-based
swaps.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC66669FC5FFF431AA893141139E795C2"><enum>(c)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H859B4221D5774012B6A5B0AF33AE111A"><enum>(1)</enum><header display-inline="yes-display-inline">Major swap participant</header><text display-inline="yes-display-inline">The amendment made by subsection (a)(1)
shall take effect as if included in subtitle A.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD77B84642984483A6AAAB50F1164935"><enum>(2)</enum><header display-inline="yes-display-inline">Major security-based swap
participant</header><text display-inline="yes-display-inline">The amendment
made by subsection (a)(2) shall take effect as if included in subtitle
B.</text>
</paragraph></subsection></section></subtitle><enum>IV</enum><header display-inline="yes-display-inline">Consumer Financial Protection Agency
Act</header>
<section commented="no" display-inline="no-display-inline" id="HCC662C0F73D046A48812CC5D92E558D9" section-type="subsequent-section"><enum>4001.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD2BFE9A3DDDB445E82F1613C32748E33" section-type="subsequent-section"><enum>4002.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H792D894BAC2B466399DC4051CC4513BC"><enum>(1)</enum><header display-inline="yes-display-inline">Affiliate</header><text display-inline="yes-display-inline">The term <quote>affiliate</quote> means any
person that controls, is controlled by, or is under common control with another
person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE8576DECE4FB474B930F8EF613EEFD65"><enum>(2)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H96C6A18694FA44129CCF57933A4A20EC"><enum>(A)</enum><text display-inline="yes-display-inline">before the Agency conversion date, the
Consumer Financial Protection Agency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H904E4D7CB3134A488252E29B7D0FA584"><enum>(B)</enum><text display-inline="yes-display-inline">on and after the Agency conversion date,
the commission established under section 4103.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5AE5D56474504884AC34600A7BB954D8"><enum>(3)</enum><header display-inline="yes-display-inline">Bank holding company</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F55AB02035F4CF98D51A0E068310445"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1709B06285BF4421A11ABEC0B2529077"><enum>(5)</enum><header display-inline="yes-display-inline">Board of governors</header><text display-inline="yes-display-inline">The term <quote>Board of Governors</quote>
means the Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H826D49DCA1014C91950A99B5DEAA6D03"><enum>(6)</enum><header display-inline="yes-display-inline">Business of insurance</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C8EEBC81BBA4041BC3D6F4508999AB6"><enum>(7)</enum><header display-inline="yes-display-inline">Consumer</header><text display-inline="yes-display-inline">The term <quote>consumer</quote> means an
individual or an agent, trustee, or representative acting on behalf of an
individual.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6E9C1A1963E242E2A94951A40EE0AE37"><enum>(8)</enum><header display-inline="yes-display-inline">Consumer financial product or
service</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22F974CAC6494F4E88B8B29CCF7F9969"><enum>(9)</enum><header display-inline="yes-display-inline">Covered person</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F2955229B9940CA930B55C93E28F42B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD9BA9D21452047E29723DA75AF840C85"><enum>(B)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF25F2718CE3942338A275A7D227363BC"><enum>(10)</enum><header display-inline="yes-display-inline">Credit</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H02BA9E9966BE4E8A86224BDED4E29265"><enum>(11)</enum><header display-inline="yes-display-inline">Credit union</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9D3CA2EE386840E09D97F0FB014D0ADF"><enum>(12)</enum><header display-inline="yes-display-inline">Deposit</header><text display-inline="yes-display-inline">The term <quote>deposit</quote>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H18D77FBA0EF243F1B4D42459F2E69DE3"><enum>(A)</enum><text display-inline="yes-display-inline">has the same meaning as in section 3(l) of
the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H03233AB8CABC435FB889A665A0DE0D81"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2BEC2F9C52A84F46AA55F2BC3A881784"><enum>(13)</enum><header display-inline="yes-display-inline">Deposit-taking, money acceptance, or money
movement activity</header><text display-inline="yes-display-inline">The term
<quote>deposit-taking, money acceptance, or money movement activities</quote>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H39378747D0A84B2DB89800FD450D434C"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0EB92C59B2E744CC86E8D47817D51D3E"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5151860E91A745E8AE7B4742C401B0C5"><enum>(14)</enum><header display-inline="yes-display-inline">Designated transfer date</header><text display-inline="yes-display-inline">The term <quote>designated transfer
date</quote> has the meaning provided in section 4602.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38191E1D6D8A44E18F9B0DDCA05D6DFC"><enum>(15)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The term <quote>Director</quote>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H64B65CAA1EC24D15A5CC848C8D071E81"><enum>(A)</enum><text display-inline="yes-display-inline">before the Agency conversion date, the
Director of the Agency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H22726D4FFD4A4FAEA3D020D269AAF0A4"><enum>(B)</enum><text display-inline="yes-display-inline">on and after the Agency conversion date,
the commission established under section 4103.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA2D9B1F895EB4C33B7F2F1BB5691CCCB"><enum>(16)</enum><header display-inline="yes-display-inline">Enumerated consumer laws</header><text display-inline="yes-display-inline">The term <quote>enumerated consumer
laws</quote> means each of the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H53F7E0575DC647F6901F9649B4E0509E"><enum>(A)</enum><text display-inline="yes-display-inline">The Alternative Mortgage Transaction Parity
Act (12 U.S.C. 3801 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A271BD1178649C1AEDAC04679ED4809"><enum>(B)</enum><text display-inline="yes-display-inline">The Electronic Funds Transfer Act (15
U.S.C. 1693 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H466D21A25BF84D2CAA79CF6FA79A9FB3"><enum>(C)</enum><text display-inline="yes-display-inline">The Equal Credit Opportunity Act (15 U.S.C.
1691 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H118DE19C862F492FA8F671B89C090E6E"><enum>(E)</enum><text display-inline="yes-display-inline">The Fair Debt Collection Practices Act (15
U.S.C. 1692 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H564578BFF5CB4372A2D2DE61543F9CD0"><enum>(F)</enum><text display-inline="yes-display-inline">Subsections (b), (c), (d), (e), and (f) of
section 43 of the Federal Deposit Insurance Act (12 U.S.C. 1831t).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3671AF46CC0642678552969B546FD2B5"><enum>(G)</enum><text display-inline="yes-display-inline">Sections 502, 503, 504, 505, 506, 507, 508,
and 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802 et seq.) except for
section 505 as it applies to section 501(b).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB398494B54D945999CAC8835F83B4646"><enum>(H)</enum><text display-inline="yes-display-inline">The Homeowners Protection Act of
1998.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7C7A0E45A7944D38BE6A19D5DB16865"><enum>(I)</enum><text display-inline="yes-display-inline">The Home Mortgage Disclosure Act (12 U.S.C.
2801 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB896291945274426ABFABA6D100862EC"><enum>(J)</enum><text display-inline="yes-display-inline">The Real Estate Settlement Procedures Act
(12 U.S.C. 2601 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC90E0679BCB44FB48B02DF58B7F829AF"><enum>(K)</enum><text display-inline="yes-display-inline">The Secure and Fair Enforcement for
Mortgage Licensing Act (12 U.S.C. 5101 et seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDEE9FF0D24F947CE81FC876555E0B7A1"><enum>(L)</enum><text display-inline="yes-display-inline">The Truth in Lending Act (15 U.S.C. 1601 et
seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H49A97DB9F6E7475C9880DFEB7259F882"><enum>(M)</enum><text display-inline="yes-display-inline">The Truth in Savings Act (12 U.S.C. 4301 et
seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE5A3A4BDEFEA4346B31DDD31CDC8C41A"><enum>(N)</enum><text display-inline="yes-display-inline">Section 626 of the Omnibus Appropriations
Act, 2009 (Public Law 111–8).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0687501ED97D40EDBA5E0B76EAF33BD9"><enum>(O)</enum><text display-inline="yes-display-inline">The Unlawful Internet Gambling Enforcement
Act of 2006.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H16850A7C8B9B4868BCCD5F4F2C5EAD46"><enum>(17)</enum><header display-inline="yes-display-inline">Federal banking agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92BE0DA50D5C4D7E8C3ED2AD447F8A8D"><enum>(18)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1AE9281E9A2E4AC88F603131E8B164D6"><enum>(19)</enum><header display-inline="yes-display-inline">Financial activity</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC1EF58D383684E9092B6B6004C8F5091"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>financial activity</quote>
means any of the following activities:</text>
<clause commented="no" display-inline="no-display-inline" id="H6276822B2DC343B2AC54B698295CB86A"><enum>(i)</enum><text display-inline="yes-display-inline">Deposit-taking, money acceptance, or money
movement activities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF2EAA2FA3F6747318C6C2E96AEE3C855"><enum>(ii)</enum><text display-inline="yes-display-inline">Extending credit and servicing loans,
including—</text>
<subclause commented="no" display-inline="no-display-inline" id="H12CCC29146B041138B112DADD2EC5F48"><enum>(I)</enum><text display-inline="yes-display-inline">acquiring, purchasing, selling, brokering,
or servicing loans or other extensions of credit; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD02BB7401AC04164839796186CDCBC84"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0728D4122B144F8AA8D5615E13489303"><enum>(iii)</enum><text display-inline="yes-display-inline">Check cashing and check-guaranty services,
including—</text>
<subclause commented="no" display-inline="no-display-inline" id="HE1D0BA6CE5124EE2ADA784D7789BC923"><enum>(I)</enum><text display-inline="yes-display-inline">authorizing a subscribing merchant to
accept personal checks tendered by the merchant’s customers in payment for
goods and services; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HEB4958C3E09945D7B797134347896BB9"><enum>(II)</enum><text display-inline="yes-display-inline">purchasing from a subscribing merchant
validly authorized checks that are subsequently dishonored.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" 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, except that
furnishing a consumer report to another person that it has reason to believe
intends to use the information for employment purposes, including for security
investigations, government licensing and evaluating a consumer’s residential or
tenant history shall not be considered a financial activity.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H89D8E5F8D1154B6E9575FF79E67704DD"><enum>(v)</enum><text display-inline="yes-display-inline">Collection of debt related to any consumer
financial product or service.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC23656413A89416182F440AEEB4A3A5B"><enum>(vi)</enum><text display-inline="yes-display-inline">Providing real estate settlement
services.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H55140B85516540468C33E2E126B983A4"><enum>(vii)</enum><text display-inline="yes-display-inline">Leasing personal or real property or acting
as agent, broker, or adviser in leasing such property if—</text>
<subclause commented="no" display-inline="no-display-inline" id="H8E8BA06FDEAF47C18151BFEA5FEFE234"><enum>(I)</enum><text display-inline="yes-display-inline">the lease is on a non-operating
basis;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4D84EA4116AC495FB84263896A7E56AC"><enum>(II)</enum><text display-inline="yes-display-inline">the initial term of the lease is at least
90 days; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF747940A5B74475A92D0348D9BC84A08"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC04F1A29C0914503881F2BF6D151E443"><enum>(viii)</enum><text display-inline="yes-display-inline">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 a person regulated as an investment adviser by any securities commission (or
any agency or office performing like functions) of any State).</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0FC99F739C3642AD909FE829AEEF5650"><enum>(I)</enum><text display-inline="yes-display-inline">providing financial and other related
advisory services;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HFAB6D6515D4246EC97F1759FBE8549F7"><enum>(II)</enum><text display-inline="yes-display-inline">providing educational courses, and
instructional materials to consumers on individual financial management
matters;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0D17D4CAE46746D5A3CBF79AEA318AE9"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H4163C8D2DDC24A3D943D373ECEDDE74E"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8836089FF85D404AA9A1017AD032D3DB"><enum>(xi)</enum><text display-inline="yes-display-inline">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> with respect to financial data processing—</text>
<subclause commented="no" display-inline="no-display-inline" id="H8E74A03FC8EE4475A6291E068FC16133"><enum>(I)</enum><text display-inline="yes-display-inline">to the extent the person is providing
interactive computer service, as defined in section 230 of the Communications
Act of 1934 (47 U.S.C. 230); or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H48F029A58C814495B7AA0DBE67CAA681"><enum>(II)</enum><text display-inline="yes-display-inline">if the person—</text>
<item commented="no" display-inline="no-display-inline" id="HDE5EEEFE97794AD184A05513F7CD100A"><enum>(aa)</enum><text display-inline="yes-display-inline">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>
</item><item commented="no" display-inline="no-display-inline" id="HFA52AC7B5614450096D2EF55235D2D4E"><enum>(bb)</enum><text display-inline="yes-display-inline">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>
</item><item commented="no" display-inline="no-display-inline" id="HA0DF81D5018D4AA8AD6D4B2462BF55FC"><enum>(cc)</enum><text display-inline="yes-display-inline">does not provide a material service to any
covered person in connection with the provision of a consumer financial product
or service.</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H041CEC437D2947E283847992A82323F2"><enum>(xii)</enum><text display-inline="yes-display-inline">Money transmitting.</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE658C6E431204C1A97170F7976A9CFCD"><enum>(xiv)</enum><text display-inline="yes-display-inline">Acting as a money services business.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE96AD2C3FAFE432987E98A8A00DA4C4B"><enum>(xv)</enum><text display-inline="yes-display-inline">Acting as a custodian of money or any
financial instrument.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H76AED7B916414E64AFFF1BB435B5EADB"><enum>(xvi)</enum><subclause commented="no" display-inline="yes-display-inline" id="H7B85E4537EA44D469A62E20E4415E143"><enum>(I)</enum><text display-inline="yes-display-inline">Any other activity that the Director
defines, by regulation, as a financial activity after finding that—</text>
<item commented="no" display-inline="no-display-inline" id="H084F9A1BF4364FDEBBB6C02A1275B162"><enum>(aa)</enum><text display-inline="yes-display-inline">the activity is financial in nature or is
otherwise a permissible activity for a bank or bank holding company, including
a financial holding company, under any provision of Federal law or regulation
applicable to a bank or bank holding company, including a financial holding
company;</text>
</item><item commented="no" display-inline="no-display-inline" id="HA563610950A243F5BEACFE440E06F1B3"><enum>(bb)</enum><text display-inline="yes-display-inline">the activity is incidental or complementary
to any other financial activity regulated by the Agency; or</text>
</item><item commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2059B29287FC446D980F08DE0E651550"><enum>(aa)</enum><text display-inline="yes-display-inline">Providing information products or services
to a covered person for identity authentication.</text>
</item><item commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HFA0425B7A37F4A87A88A192040A65AA4"><enum>(cc)</enum><text display-inline="yes-display-inline">Providing document retrieval or delivery
services.</text>
</item><item commented="no" display-inline="no-display-inline" id="H9F7FDB6737784B5883B2FFB61EB600A8"><enum>(dd)</enum><text display-inline="yes-display-inline">Providing public records information
retrieval.</text>
</item><item commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA3D91873FAE34EB58BD135F68DF2BA50"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The term <quote>financial activity</quote>
shall not include the business of insurance or the provision of electronic data
transmission, routing, intermediate or transient storage, or connections to a
system or network, where the person providing such services does not select or
modify the content of the electronic data, is not the sender or the intended
recipient of the data, and such person transmits, routes, stores, or provides
connections for electronic data, including financial data, in a manner that
such financial data is undifferentiated from other types of data that such
person transmits, routes, stores, or provides connections.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01C4B27116124D6E93FE02620C9ACBD3"><enum>(20)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF0C9680025E243FC8B0934EB520B6A81"><enum>(21)</enum><header display-inline="yes-display-inline">Foreign exchange</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0CCC81C6FBDB4D4EAE41415ED1EB8D43"><enum>(22)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB814C3004F954050ABF6B4D5560435BF"><enum>(23)</enum><header display-inline="yes-display-inline">Insured depository
institution</header><text display-inline="yes-display-inline">The term
<quote>insured depository institution</quote> has the same meaning as in
section 3 of the Federal Deposit Insurance Act and shall include any uninsured
branch or agency of a foreign bank or a commercial lending company owned or
controlled by a foreign bank.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6E1E5C9D40D74B78B2E9F935949FA508"><enum>(24)</enum><header display-inline="yes-display-inline">Money services business</header><text display-inline="yes-display-inline">The term <quote>money services
business</quote> means a person that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H04ADBE4297C54C2B8780C9C1D17592F4"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4BCFFDB759A945B280DCC9353C18EF1C"><enum>(B)</enum><text display-inline="yes-display-inline">issues payment instruments or stored
value.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69090F377E124D339C01738CCA67374A"><enum>(25)</enum><header display-inline="yes-display-inline">Money transmitting</header><text display-inline="yes-display-inline">The term <quote>money transmitting</quote>
means the receipt by a 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 commented="no" display-inline="no-display-inline" id="H3FD9992A0453470E9F3CFDE4E96650C7"><enum>(26)</enum><header display-inline="yes-display-inline">Payment instrument</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFA469AF2020E421F8E3747495D731144"><enum>(27)</enum><header display-inline="yes-display-inline">Person</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFBE15340972489C96ED8043B560B31A"><enum>(28)</enum><header display-inline="yes-display-inline">Person regulated by a State insurance
regulator</header><text display-inline="yes-display-inline">The term
<quote>person regulated by a State insurance regulator</quote> means any person
who is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2554E5CC871848EB800CF9D7F7694825"><enum>(A)</enum><text display-inline="yes-display-inline">engaged in the business of insurance;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3846FA13D2D44AF0850B0F8575CD25E5"><enum>(B)</enum><text display-inline="yes-display-inline">subject to regulation by any State
insurance regulator,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">but only to the extent that such
person acts in such capacity.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD453C76F545F44F483D6319F74D64861"><enum>(29)</enum><header display-inline="yes-display-inline">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, multilateral clearing organizations, retail foreign exchange
dealer, or swap execution facility 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 commented="no" display-inline="no-display-inline" id="H3768E64DA7BD478AB8CF8424309E49C6"><enum>(30)</enum><header display-inline="yes-display-inline">Person regulated by the Securities and
Exchange Commission</header><text display-inline="yes-display-inline">The term
<quote>person regulated by the Securities and Exchange Commission</quote>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE6518F66F2EA43ED8AC01CAD911C548B"><enum>(A)</enum><text display-inline="yes-display-inline">a broker or dealer that is required to be
registered under the Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC47180933A194056BCD1026776CF2B2B"><enum>(B)</enum><text display-inline="yes-display-inline">an investment adviser that is registered
under the Investment Advisers Act of 1940;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H92707368DF5940D9B821363A0ECBA707"><enum>(C)</enum><text display-inline="yes-display-inline">an investment company that—</text>
<clause commented="no" display-inline="no-display-inline" id="H9BB0C3744A7B47E8AE44E84A077B1014"><enum>(i)</enum><text display-inline="yes-display-inline">is required to be registered under the
Investment Company Act of 1940; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7CD0D2C5A73E478BB327A2D60283DD06"><enum>(ii)</enum><text display-inline="yes-display-inline">is excepted from the definition of
investment company under section 3(c) of such Act, or any successor
provision;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE2C375D7C2534A98A23A7B5271D2FD01"><enum>(E)</enum><text display-inline="yes-display-inline">a transfer agent that is required to be
registered under the Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFBF121341E874B3C8BDE6DC6099E4889"><enum>(F)</enum><text display-inline="yes-display-inline">a clearing corporation that is required to
be registered under the Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HB3CB5DED74DE4B478AB8537AC0DDECB5"><enum>(H)</enum><text display-inline="yes-display-inline">any self-regulatory organization that is
registered with the Securities and Exchange Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8202E183D3564701BFCBA8A937AC3AF5"><enum>(I)</enum><text display-inline="yes-display-inline">any national securities exchange or other
entity that is required to be registered under the Securities Exchange Act of
1934; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E66F018E12947DD964EF31EB819D67E"><enum>(J)</enum><text display-inline="yes-display-inline">the Municipal Securities Rulemaking
Board,</text>
</subparagraph><continuation-text commented="no" 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 any person described in any
subparagraph of this paragraph, or the employee agent, or contractor of such
person, acts in a registered capacity, or, with respect to a person described
in subparagraph (C)(ii), any employee, agent, or contractor acting on behalf
of, or providing services to any such person, but only to the extent that such
person, or the employee, agent, or contractor of such person acts in such
exempt capacity.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE25CB09E845463A880A67AADA0272B6"><enum>(31)</enum><header display-inline="yes-display-inline">Provision of a consumer financial product
or service</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD646F403D3FA4D7881617D018948B779"><enum>(32)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9248308E46E04C6B8DE73C9CECCBBD92"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2A1F7C404C6349C4AB70C039612CC756"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1F09708D8A0F452FA1F2D2A4E6FC641B"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE2AE24D7C18C496EAA0EF46C666E6731"><enum>(33)</enum><header display-inline="yes-display-inline">Related person</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5CD5573140645F2B21D633CC10EC8BE"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23F5CF0651654113830F9758E1914372"><enum>(i)</enum><text display-inline="yes-display-inline">any director, officer, employee charged
with managerial responsibility, or controlling stockholder of, or agent for,
such covered person;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8020D125E0A246CFBC10CE21CB147C90"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD970C0834293446FB011D8180FA5AB1C"><enum>(iii)</enum><text display-inline="yes-display-inline">any independent contractor (including any
attorney, appraiser, or accountant), with respect to such covered person, who
knowingly or recklessly participates in any—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1FAE9662313847A583576194CA9507DE"><enum>(I)</enum><text display-inline="yes-display-inline">violation of any law or regulation;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HCF3727D7D22A443A8A82C4C4C60F29A3"><enum>(II)</enum><text display-inline="yes-display-inline">breach of fiduciary duty.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H01E326220BDD4584917CF66F7F21AE8E"><enum>(B)</enum><header display-inline="yes-display-inline">Treatment of a related person as a covered
person</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF93479A32384C83911146A1D487E95A"><enum>(34)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the
Secretary of the Treasury.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB5F3D9190BC3463087FDCAF78B313CD8"><enum>(35)</enum><header display-inline="yes-display-inline">Service provider</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB7D768B223DB4257ACD9F2417B4C2AAC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H61B45A396CA446E98D801CB0A9815676"><enum>(i)</enum><text display-inline="yes-display-inline">facilitates the design of, or operations
relating to the provision of, the consumer financial product or service;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5A528E73E09149868FA1940C3C1AADA1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB1992533A61D4C77BB13E4DC451D1595"><enum>(iii)</enum><text display-inline="yes-display-inline">processes transactions relating to the
consumer financial product or service.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H822F063823F04E8889B003F4E6E28AEC"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3F928310DBA843D0BF894EEB132CA0E0"><enum>(i)</enum><text display-inline="yes-display-inline">a support service of a type provided to
businesses generally or a similar ministerial service;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6ABAFE79768E4E38B2BBCB5AAFFC8C7C"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28FD26188B6F4AAFA2879B19057E1B4F"><enum>(iii)</enum><text display-inline="yes-display-inline">time or space for an advertisement for a
consumer financial product or service through print, newspaper, or electronic
media.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CB9118B51CC494F936F8557641A1E5B"><enum>(36)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">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 or any federally
recognized Indian tribe as defined by the Secretary of the Interior under
section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 479a–1(a)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB4577DFB061F482C90AF0AC76673D08B"><enum>(37)</enum><header display-inline="yes-display-inline">Stored value</header><text display-inline="yes-display-inline">The term <quote>stored
value</quote>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H09CC9F10DFAF4EC5BA3CB7EBED179B8E"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66342DAB412C493CB17E2997ECB9A4CE"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" continuation-text-level="paragraph">regardless of whether the amount of
the funds or monetary value may be increased or reloaded.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A568C2293A9463D83AA7F0A5974250C"><enum>(38)</enum><header display-inline="yes-display-inline">Agency conversion date</header><text display-inline="yes-display-inline">The term <quote>Agency conversion
date</quote> means the date that is 2 years after the designated transfer
date.</text>
</paragraph></section><subtitle commented="no" id="H3693502E6B164DE9A81F981D60E74185" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Establishment of the Agency</header>
<section commented="no" display-inline="no-display-inline" id="HA886682556E148BB959DA751DF20EB4C" section-type="subsequent-section"><enum>4101.</enum><header display-inline="yes-display-inline">Establishment of the Consumer Financial
Protection Agency</header>
<subsection commented="no" display-inline="no-display-inline" id="H039C5106E4E74B8CB0EB9F90D7BA1AFD"><enum>(a)</enum><header display-inline="yes-display-inline">Agency established</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF5F835EA5BC419E935F33C07941A8AA"><enum>(b)</enum><header display-inline="yes-display-inline">Agency structure</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3C6A8A46123F49FD9CC5741B54FF63B4"><enum>(1)</enum><header display-inline="yes-display-inline">Initial structure</header><text display-inline="yes-display-inline">The Agency shall be led by a Director or
Acting Director, established pursuant to section 4102, until the day before the
Agency conversion date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06B109C80FF14A30AA9A8DFA3CA79D25"><enum>(2)</enum><header display-inline="yes-display-inline">Subsequent structure</header><text display-inline="yes-display-inline">On and after the Agency conversion date,
the Agency shall consist of the commission established under section
4103.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H33FEB026E9E74ACDABFAD9BD3FC5C3C0"><enum>(c)</enum><header display-inline="yes-display-inline">Principal office</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5648F247B7AB4FFD88705CD8A2AFD553" section-type="subsequent-section"><enum>4102.</enum><header display-inline="yes-display-inline">Director</header>
<subsection commented="no" display-inline="no-display-inline" id="H623D1A3CA26D4991BF395ECC77E59352"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of position</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAF8D3EBD22B64407A1F0EDAEEBD9D07E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">There is hereby established the position of
the Director of the Agency who shall be the head of the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF97D1FF8E0E04C41A7D802CAA3310671"><enum>(2)</enum><header display-inline="yes-display-inline">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 and shall exercise any
authorities granted under this title and all other laws within the Director’s
jurisdiction.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7DECA045123A4A089A3CB6B414103D0C"><enum>(b)</enum><header display-inline="yes-display-inline">Appointment; term</header>
<paragraph commented="no" display-inline="no-display-inline" id="H991D0A83EFC344ADA432FE4F8866BF7E"><enum>(1)</enum><header display-inline="yes-display-inline">Nomination</header><text display-inline="yes-display-inline">Within 60 days after the date of enactment
of this title, the President shall nominate the Director, from among
individuals who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4707932583DA421B980276C8DE67EB80"><enum>(A)</enum><text display-inline="yes-display-inline">are citizens of the United States;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA0CAE5B9C2C04C409D39B0F5F4E2508F"><enum>(B)</enum><text display-inline="yes-display-inline">have strong competencies and experiences
related to consumer financial protection.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF24877D81B1D4E36B1B67C2C8E6461B2"><enum>(2)</enum><header display-inline="yes-display-inline">Appointment subject to
confirmation</header><text display-inline="yes-display-inline">The Director
nominated under paragraph (1) shall be appointed by and with the advice and
consent of the Senate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1BF492B5C9AE4FB49830E3D088464DBB"><enum>(3)</enum><header display-inline="yes-display-inline">Acting Director before Senate
confirmation</header><text display-inline="yes-display-inline">The individual
nominated pursuant to paragraph (1) shall serve as Acting Director with full
authorities granted to the Director under this title until the Director is
confirmed by the Senate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D9E503811BC4D4C86259C48FC3E3D8A"><enum>(4)</enum><header display-inline="yes-display-inline">Term</header><text display-inline="yes-display-inline">The Director shall be appointed for a term
that ends on the Agency conversion date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H408A17F0032F48B69AD1BB6D10849E25"><enum>(5)</enum><header display-inline="yes-display-inline">Removal</header><text display-inline="yes-display-inline">The Director may be removed before the end
of a term only for cause.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61C6E773DB5F48CFB27464BCCCC3A0C6"><enum>(6)</enum><header display-inline="yes-display-inline">Vacancy</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4187A951322D406796952CF90E43DD2F"><enum>(A)</enum><header display-inline="yes-display-inline"> 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 (2) and the Director
appointed to fill such vacancy shall be appointed only for the remainder of
such term.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFB466F6BB02E4A37BE2B2CB817D40D8F"><enum>(B)</enum><header display-inline="yes-display-inline">Acting director</header>
<clause commented="no" display-inline="no-display-inline" id="H86D3662847784EFFBCAA2798FCF5FEA4"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the event of vacancy or during the
absence of the Director (who has been confirmed by the Senate pursuant to
paragraph (2)), an Acting Director shall be appointed in the manner provided in
section 3345 of title 5, United States Code.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6C63855CF2EC4C7F93E7C644E3E857C4"><enum>(ii)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35B71312343440F69757BDE3AD971FB0"><enum>(7)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H63273A3B389B4915919F1A6146863C94"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3D94E768B2EA491BB9E76F813FBDABFE"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H067B9D910D5047CF9D658506D331175F" section-type="subsequent-section"><enum>4103.</enum><header display-inline="yes-display-inline">Establishment and composition of the
commission</header>
<subsection commented="no" display-inline="no-display-inline" id="HEE1A047312164654BD8B7AF2A3E55347"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of the commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF40C2441ACF24016B3184E3784DA13B9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">On the Agency conversion date, there shall
be established a commission (hereinafter in this section referred to as the
<quote>Commission</quote>) that shall by operation of law succeed to all of the
authorities of the Director of the Agency granted under this title and any
other law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF80CA7250F464B05845D49997A32C9DA"><enum>(2)</enum><header display-inline="yes-display-inline">Authority to prescribe
regulations</header><text display-inline="yes-display-inline">The Commission
may prescribe such regulations and issue such orders in accordance with this
title as the Commission may determine to be necessary for carrying out this
title and all other laws within the Commission’s jurisdiction and shall
exercise any authorities granted under this title and all other laws within the
Commission’s jurisdiction.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC2C543578B4F40C0ACB1712E4454E5C6"><enum>(b)</enum><header display-inline="yes-display-inline">Composition of the Commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAD80F051E19B471893E05C7FED2AACEE"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall be composed of 5
members who shall be appointed by the President, by and with the advice and
consent of the Senate, from among individuals who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H719DCF02C3C64A048AD1456A4EF95C51"><enum>(A)</enum><text display-inline="yes-display-inline">are citizens of the United States;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF4B4CA695F8F4531A5647B118B67EB31"><enum>(B)</enum><text display-inline="yes-display-inline">have strong competencies and experiences
related to consumer financial protection.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B7D10C11735481B876C2FEA9217D9B8"><enum>(2)</enum><header display-inline="yes-display-inline">Initial appointments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBCCE689B70F44E1093C0A25E0C2F66B4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The initial members of the Commission,
other than the initial Chair, may be appointed by the President, by and with
the advice and consent of the Senate, prior to the Agency conversion date, but
may not serve in their positions until such date.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9DA37E0FD80F4572B3A5D6B64ED3F466"><enum>(B)</enum><header display-inline="yes-display-inline">Staggering</header><text display-inline="yes-display-inline">Except as provided under subsection (d)(1),
the members of the Commission shall serve staggered terms, which initially
shall be established by the President for terms of 1, 2, 4, and 5 years,
respectively.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H175F5BC548E24A94BC31383CBE68FE33"><enum>(3)</enum><header display-inline="yes-display-inline">Terms</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA66A6D85B48D4B848B9CAFEE6BE00160"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (d)(1),
each member of the Commission, including the Chair, shall serve for a term of 5
years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC520217CD45C410199F6D721B84ABC6A"><enum>(B)</enum><header display-inline="yes-display-inline">Removal for cause</header><text display-inline="yes-display-inline">The President may remove any member of the
Commission only for inefficiency, neglect of duty, or malfeasance in
office.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H99E003E2E2DB450EA29374AF2BE30750"><enum>(C)</enum><header display-inline="yes-display-inline">Vacancies</header><text display-inline="yes-display-inline">Any member of the Commission appointed to
fill a vacancy occurring before the expiration of the term to which that
member’s predecessor was appointed (including the Chair) shall be appointed
only for the remainder of the term.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H081E134E0A834FFF914DC5B3E02D99DA"><enum>(D)</enum><header display-inline="yes-display-inline">Continuation of service</header><text display-inline="yes-display-inline">Each member of the Commission may continue
to serve after the expiration of the term of office to which that member was
appointed until a successor has been appointed by the President and confirmed
by the Senate, except that a member may not continue to serve more than 1 year
after the date on which that member’s term would otherwise expire.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1F0883D3FBFE46489F47079629645D7C"><enum>(E)</enum><header display-inline="yes-display-inline">Other employment prohibited</header><text display-inline="yes-display-inline">No member of the Commission shall engage in
any other business, vocation, or employment.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC3D7C34B674F49D9B4B268487381FA2C"><enum>(c)</enum><header display-inline="yes-display-inline">Affiliation</header><text display-inline="yes-display-inline">With respect to members appointed pursuant
to subsection (b), not more than 3 shall be members of any one political
party.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5322CA12B2E34F8784C5BD13AD55B010"><enum>(d)</enum><header display-inline="yes-display-inline">Chair of the Commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE8F19FBF492645C2AB5FD1EA9FEEC106"><enum>(1)</enum><header display-inline="yes-display-inline">Appointment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD9E1DDDC4D864D949371D3310F86BC6D"><enum>(A)</enum><header display-inline="yes-display-inline">Initial Chair</header><text display-inline="yes-display-inline">The first Chair of the Commission shall be
the Director or Acting Director serving on the day before the Agency conversion
date, and such individual shall serve in the position of Chair for a period of
3 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H000CA46829494AD3A1EB4C75F643F2A5"><enum>(B)</enum><header display-inline="yes-display-inline">Subsequent Chairs</header><text display-inline="yes-display-inline">Subsequent chairs shall be appointed by the
President from among the members of the Commission to serve as the
Chair.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBB13E2B1EF447F5ABB1437811594578"><enum>(2)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The Chair shall be the principal executive
officer of the Agency, and shall exercise all of the executive and
administrative functions of the Agency, including with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7A2D1AC92B1042F7A1267533B5AE6683"><enum>(A)</enum><text display-inline="yes-display-inline">the appointment and supervision of
personnel employed under the Agency (other than personnel employed regularly
and full time in the immediate offices of members of the Commission other than
the Chair);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4897B0B227844708A5C6C4C3AC92E0E6"><enum>(B)</enum><text display-inline="yes-display-inline">the distribution of business among
personnel appointed and supervised by the Chair and among administrative units
of the Agency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H02C93168845D452F824FFD7C3B4DA98B"><enum>(C)</enum><text display-inline="yes-display-inline">the use and expenditure of funds.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0CF6255592CF4C9FA95A0EBD81799A1F"><enum>(3)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In carrying out any of the Chair’s
functions under the provisions of this subsection the Chair shall be governed
by general policies of the Commission and by such regulatory decisions,
findings, and determinations as the Commission may by law be authorized to
make.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A26434BD11041BAA3C051C51C5E256E"><enum>(4)</enum><header display-inline="yes-display-inline">Requests or estimates related to
appropriations</header><text display-inline="yes-display-inline">Requests or
estimates for regular, supplemental, or deficiency appropriations on behalf of
the Commission may not be submitted by the Chair without the prior approval of
the commission.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70E45EB7FB054252B7C0EAB225207B00"><enum>(e)</enum><header display-inline="yes-display-inline">No impairment by reason of
vacancies</header><text display-inline="yes-display-inline">No vacancy in the
members of the Commission shall impair the right of the remaining members of
the Commission to exercise all the powers of the Commission. Three members of
the Commission shall constitute a quorum for the transaction of business,
except that if there are only 3 members serving on the Commission because of
vacancies in the Commission, 2 members of the Commission shall constitute a
quorum for the transaction of business. If there are only 2 members serving on
the Commission because of vacancies in the Commission, 2 members shall
constitute a quorum for the 6-month period beginning on the date of the vacancy
which caused the number of Commission members to decline to 2.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9D8939F4D3874B199FA65400B4E0CA97"><enum>(f)</enum><header display-inline="yes-display-inline">Seal</header><text display-inline="yes-display-inline">The Commission shall have an official
seal.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFE4A3C1920794B5BA328ACAB7B67633B"><enum>(g)</enum><header display-inline="yes-display-inline">Compensation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H94EE429ED0E0467EA90528B276A53848"><enum>(1)</enum><header display-inline="yes-display-inline">Chair</header><text display-inline="yes-display-inline">The Chair shall receive compensation at the
rate prescribed for level I of the Executive Schedule under section 5313 of
title 5, United States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE18BE2158FAB4A55902341875CA374B1"><enum>(2)</enum><header display-inline="yes-display-inline">Other members of the
Commission</header><text display-inline="yes-display-inline">The 4 other
members of the Commission shall each receive compensation at the rate
prescribed for level II of the Executive Schedule under section 5314 of title
5, United States Code.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8974C14C2F4F4EC7A9096652E59C9339"><enum>(h)</enum><header display-inline="yes-display-inline">Initial quorum established</header><text display-inline="yes-display-inline">During any time period prior to the
confirmation of at least two members of the Commission under subsection (b)(2),
one member of the Commission shall constitute a quorum for the transaction of
business. Following the confirmation of at least 2 additional commissioners,
the quorum requirements of subsection (e) shall apply.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H221975FAFFBF4266A16CFCBECD734C7F"><enum>(i)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Notwithstanding section 4002, for purposes
of this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBDB3A5DD05D04627A2B56E91E454264B"><enum>(1)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H90271BC4F82047559247FAA6AC41AD15"><enum>(2)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The term <quote>Director</quote> means the
Director of the Agency.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA90FB34558AF48F9883355DA681AC720" section-type="subsequent-section"><enum>4104.</enum><header display-inline="yes-display-inline">Consumer Financial Protection Oversight
Board</header>
<subsection commented="no" display-inline="no-display-inline" id="H984775DE0FAB42E593130C74BBEB3039"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H140D1741DB274A2296023C162EAB8203"><enum>(b)</enum><header display-inline="yes-display-inline">Duties and powers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H57CAB23E17FB45AA9B732079B8F1472C"><enum>(1)</enum><header display-inline="yes-display-inline">Duty to advise director</header><text display-inline="yes-display-inline">The Board shall advise the Director
on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA70E28EB1ED481CAFDC7272A08D09AD"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1921D7442A10449E9EAF09DFB32C869E"><enum>(B)</enum><text display-inline="yes-display-inline">the overall strategies and policies in
carrying out the duties of the Director under this title; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H3E6FBB7F51E446A69A45C13D9BACFA2F"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation on powers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H246CD8428E354219A7AB417FBAA60DCF"><enum>(c)</enum><header display-inline="yes-display-inline">Composition</header><text display-inline="yes-display-inline">The Board shall be comprised of 7 members
as follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6989CC28AA7240DFB00E6D346F853DE2"><enum>(1)</enum><text display-inline="yes-display-inline">The Chairman of the Board of
Governors.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF3D448A5B8A9466AA81DD8128C02579F"><enum>(3)</enum><text display-inline="yes-display-inline">The Chairperson of the Federal Deposit
Insurance Corporation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBDE5A9A7E3F54DC7A900DE01EC359393"><enum>(4)</enum><text display-inline="yes-display-inline">The Chairman of the National Credit Union
Administration.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE4C3D7CD57DE4B6DACEC8BB0DD91610F"><enum>(5)</enum><text display-inline="yes-display-inline">The Chairman of the Federal Trade
Commission.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H458F57C8635649F39F2FE9A8E0EE7D08"><enum>(6)</enum><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H80139B273859487B9181830C5640114A"><enum>(d)</enum><header display-inline="yes-display-inline">Representative of additional
interests</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFDAE218D7A554F8097436B77ED36C0E1"><enum>(1)</enum><header display-inline="yes-display-inline">Composition</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H90875DD5062E451685656DADDE66FCB2"><enum>(2)</enum><header display-inline="yes-display-inline">Affiliation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBC12AEA22AD54D888A602F4418E5E44C"><enum>(e)</enum><header display-inline="yes-display-inline">Meetings</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF5B86B08723846F283E3EB33BF2252B1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1FBAD8BDC4AC4ED2AB4333BF8A6D5F96"><enum>(2)</enum><header display-inline="yes-display-inline">Special meetings</header><text display-inline="yes-display-inline">Any member of the Board may, upon giving
written notice to the Director, require a special meeting of the Board.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H773FFA0EE9F6440EA61C35CC8C7FE1B0"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9CF14E849E5C47199CA118E6358FFC9F"><enum>(g)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBEB3D17B32EE4F6A9C3C6185595D3FCB" section-type="subsequent-section"><enum>4105.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3DD348FF78734F3C8EA824BBD9A4070F"><enum>(1)</enum><text display-inline="yes-display-inline">establish regulations for conducting the
Agency’s general business in a manner not inconsistent with this title;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8BC56B24DAC54BFEB16A9FFDCFCF0487"><enum>(2)</enum><text display-inline="yes-display-inline">bind the Agency and enter into
contracts;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEA446FD0E8EC41CCA9835DA592B75267"><enum>(3)</enum><text display-inline="yes-display-inline">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, except that the Director shall not
exercise any authorities that are granted to State insurance authorities under
section 505(a)(6) of the Gramm-Leach-Bliley Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3269D0F3143A49F08F1E87F714A5A510"><enum>(4)</enum><text display-inline="yes-display-inline">coordinate and oversee the operation of all
administrative, enforcement, and research activities of the Agency;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H08D84FC6CD4E41E38A1EAD6FB871DBF1"><enum>(5)</enum><text display-inline="yes-display-inline">adopt and use a seal;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FFF96B37CDF47D59A6494B4A923EF8D"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF39ACD836CA94A228FC74080956ABCDD"><enum>(7)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA00CFB079EB84F3BAE796B23A961571D"><enum>(8)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6391CCAAE4E0442B83FA8EE729DC5646"><enum>(9)</enum><text display-inline="yes-display-inline">perform such other functions as may be
authorized or required by law.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HC3377474486A4E5C8BE0D42CC0295E4F" section-type="subsequent-section"><enum>4106.</enum><header display-inline="yes-display-inline">Administration</header>
<subsection commented="no" display-inline="no-display-inline" id="HF0597A0131C74A93B6C5AEF87BF284DC"><enum>(a)</enum><header display-inline="yes-display-inline">Officers</header><text display-inline="yes-display-inline">The Director shall appoint the following
officials:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H416639D3F99645AEA9242EE5FC6EF885"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2360B95DFD3B48A58BD522BF0F560978"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39B0693F7DBB4E65A524A2C5BDD50F9D"><enum>(3)</enum><text display-inline="yes-display-inline">An inspector general, who shall have the
authority and functions of an inspector general of an establishment under the
Inspector General Act of 1978 (5 U.S.C. App. 3).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0F3A3F0455543EDADEA9B4C30AF4FF9"><enum>(4)</enum><text display-inline="yes-display-inline">An Ombudsperson, who shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HFCB22F98C8DB453AAA994D582B1D144F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA991CF305C5E42729440DB11D9A8F04F"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD686E7A02D344F5686CE9589CE0C91E1"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8313FDBD3C324B85B7B7FCC3E4F7887F"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD17A679B9019452F964B23642469C002"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6FE974B4C6D64944AAC2E6CF7FEA5199"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBD641245C54F472BAB0255B75C451189"><enum>(H)</enum><text display-inline="yes-display-inline">perform such other duties as the Director
may delegate to the Ombudsperson.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H47F8FF25D5C2499D91DC2F061B70CE59"><enum>(b)</enum><header display-inline="yes-display-inline">Personnel</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF3C63D099CA0457C95A19CBD9F9AC9DB"><enum>(1)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">The Director may fix the number of, and
appoint and direct, all employees of the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2DB2AE5331C14CAF8791DDF847A68835"><enum>(2)</enum><header display-inline="yes-display-inline">Compensation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0CF922E82F7548A991FCE12520228BA9"><enum>(A)</enum><header display-inline="yes-display-inline">Pay</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H156CC15FF28F4DE799F537FD278DB116"><enum>(B)</enum><header display-inline="yes-display-inline">Benefits</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE2A18B08F4B244BCA6888E54B54CE957"><enum>(C)</enum><header display-inline="yes-display-inline">Minimum standard</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5FBEAF542BC6440EB40ACFDDE03DB353"><enum>(c)</enum><header display-inline="yes-display-inline">Specific functional units</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF4B7D84AD553486AB729F9876C1C822D"><enum>(1)</enum><header display-inline="yes-display-inline">Research</header><text display-inline="yes-display-inline">The Agency shall establish a unit whose
functions shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0EECCF99CD7048A393F22325CD4492EE"><enum>(A)</enum><text display-inline="yes-display-inline">conducting research on consumer financial
counseling and education, including—</text>
<clause commented="no" display-inline="no-display-inline" id="HE4B02A92EAEB4194B0A2CD2F4C11F5C5"><enum>(i)</enum><text display-inline="yes-display-inline">on the topics of debt, credit, savings,
financial product usage, and financial planning;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5F64826E1C2B459DB3AE8A27996C81CC"><enum>(ii)</enum><text display-inline="yes-display-inline">exploring effective methods, tools, and
approaches; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDE3C0C67C2B749D18A95D466656B97FD"><enum>(iii)</enum><text display-inline="yes-display-inline">identifying ways to incorporate new
technology for the delivery and evaluation of financial counseling and
education efforts;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H25093193D28647679921449926171075"><enum>(B)</enum><text display-inline="yes-display-inline">researching, analyzing, and reporting
on—</text>
<clause commented="no" display-inline="no-display-inline" id="H2273F24E6C384B7EA04E897EA916ADA2"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE07155B1C3D148F98F5CA0BC5F40590A"><enum>(ii)</enum><text display-inline="yes-display-inline">consumer awareness, understanding, and use
of disclosures and communications regarding consumer financial products or
services;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3B286D59476F40DEADAAF9DBEBB31E78"><enum>(iii)</enum><text display-inline="yes-display-inline">consumer awareness and understanding of
costs, risks, and benefits of consumer financial products or services;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAA7F2D7490D948928A57F99C770B5C23"><enum>(v)</enum><text display-inline="yes-display-inline">experiences of traditionally underserved
consumers, including un-banked and under-banked consumers, regarding consumer
financial products or services, and the impact of Federal policies, including
resource limits in means-tested Federal benefit programs (as defined in section
318 of the Higher Education Act of 1965; 20 U.S.C. 1059e), on such consumers in
influencing banking behavior; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H39F06A59E906463398D19B42252DCB4E"><enum>(vi)</enum><text display-inline="yes-display-inline">the nature, range, and size of variations
between the credit scores sold to creditors and those sold to consumers by
consumer reporting agencies that compile and maintain files on consumers on a
nationwide basis (as defined in section 603(p) of the Fair Credit Reporting
Act; 15 U.S.C. 1681a(p)), and whether such variations disadvantage
consumers;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H47429CDB280C49CAAC89236F71C9D672"><enum>(D)</enum><text display-inline="yes-display-inline">testing and identifying methods of
educating consumers to determine which methods are most effective.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66A2DEC5F45546FB8B43FD6653C71926"><enum>(2)</enum><header display-inline="yes-display-inline">Community affairs</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD240A0ED72B41A1AE6F9C6FD8F08CD1"><enum>(3)</enum><header display-inline="yes-display-inline">Consumer complaints</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0C483C2E654A476CA7B73E689FA0DB57"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6426BF5404A4197ADED154909C840A5"><enum>(B)</enum><header display-inline="yes-display-inline">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, the Federal Trade Commission, other Federal agencies, and other
regulatory agencies or enforcement authorities.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62A17CE1DA6145E59946A05B3F7EABFB"><enum>(C)</enum><header display-inline="yes-display-inline">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, the Federal Trade Commission, 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><subparagraph commented="no" display-inline="no-display-inline" id="H22A894C965344A69A80FB95178FF9438"><enum>(D)</enum><header display-inline="yes-display-inline">Consumer complaint Web site</header><text display-inline="yes-display-inline">The Director shall establish an Internet
Web site for consumer complaints and inquiries concerning institutions
regulated by the Agency. The Web site shall be interoperable with the database
established under subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9A77E16B0DA04AED876688EB174794A1"><enum>(4)</enum><header display-inline="yes-display-inline">Consumer financial education</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4EC785AFB6844CDEA3D67E81EF78EB9E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF98761C957C4C5087C39D89BDDB65EF"><enum>(B)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The Office of Financial Literacy shall be
headed by a director.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7784509216A14F72B29CA74CFB4DB354"><enum>(C)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">Such unit shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H394A231580D64E99A7AC2E59152A0FCC"><enum>(I)</enum><text display-inline="yes-display-inline">provide one-on-one financial
counseling;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9196B06A51DB4590AC6818159E70BF21"><enum>(II)</enum><text display-inline="yes-display-inline">help individuals understand basic banking
and savings tools;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4B4A31CEC49E416EA1607A3698CFF3E3"><enum>(III)</enum><text display-inline="yes-display-inline">help individuals understand their credit
history and credit score;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA698DE3FFCB14A658EF690BB2D754528"><enum>(IV)</enum><text display-inline="yes-display-inline">assist individuals in efforts to plan for
major purchases, reduce their debt, and improve their financial stability;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HFD666884BD214BB0B395625206222372"><enum>(V)</enum><text display-inline="yes-display-inline">work with individuals to design plans for
long-term savings;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE0DC8A05EC3B479380FB12BA7EBF19A9"><enum>(ii)</enum><text display-inline="yes-display-inline">develop recommendations regarding effective
certification of persons providing programs, or performing the activities,
described in clause (i), including recommendations regarding—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7465DB08F75243ECB3917F1C9C87E0F4"><enum>(I)</enum><text display-inline="yes-display-inline">certification processes and standards for
certification;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H012B82A8646641CFBD7DFFC40B26FCE6"><enum>(II)</enum><text display-inline="yes-display-inline">appropriate certifying bodies; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8305B1A4516744EEB386DF8CDAA9F074"><enum>(III)</enum><text display-inline="yes-display-inline">mechanisms for funding the certification
processes;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HF80504380B6644E89E68A80A9DADA9B0"><enum>(iii)</enum><text display-inline="yes-display-inline">develop a technology tool to collect data
on financial education and counseling outcomes; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H383E9488D4C342A99364B4BD41AB086F"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6F8BFC158D2E43A68C61B66021CE7BD9"><enum>(D)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1E8A10CD55884578BEF4738757243B3B"><enum>(i)</enum><text display-inline="yes-display-inline">working with the unit established under
paragraph (2) to—</text>
<subclause commented="no" display-inline="no-display-inline" id="HDC8B90879B8C46B486AE7FCEDB6142D5"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H784416646F534436A1EBAC30F7CBEFED"><enum>(II)</enum><text display-inline="yes-display-inline">develop a marketing strategy to promote
financial education and one-on-one counseling; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H8E496B739FC64C9285251ACC99E39A3F"><enum>(ii)</enum><text display-inline="yes-display-inline">working with the unit established under
paragraph (1) to conduct research related to consumer financial education and
counseling.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF9FFB3B2618D4832B7DC329E3F7D2CDE"><enum>(d)</enum><header display-inline="yes-display-inline">Single toll-free telephone number for
consumer complaints and inquiries</header>
<paragraph commented="no" display-inline="no-display-inline" id="H19BDC4BE66064F69874210A992ECF9E6"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7D80B73B4A0A494A987D7C86970C7C19"><enum>(2)</enum><header display-inline="yes-display-inline">Routing calls to states</header><text display-inline="yes-display-inline">To the extent practicable, State agencies
may receive appropriate call transfers from the system established under
paragraph (1) if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFF8308FC66FF4EE0B15532A87632038B"><enum>(A)</enum><text display-inline="yes-display-inline">the State agency's system has the
functional capacity to receive calls routed by the system; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC93521B923D54D59B54E8F81203CB252"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE3A2C11932F046B5B374A0DFF3E1C563"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H11F6D56A00E245858CAD99C71DF6BA28"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3615C35749244FCBA12FC7D84EA271FF"><enum>(f)</enum><header display-inline="yes-display-inline">Office of Financial Protection for Older
Americans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0E5160B006CB4EF98523983C616A366B"><enum>(1)</enum><header display-inline="yes-display-inline">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 Financial Protection for Older
Americans, whose functions shall include activities designed to facilitate the
financial literacy of individuals who have attained the age of 62 years or more
(in this paragraph, referred to as <quote>seniors</quote>) on protection from
unfair and deceptive practices and on current and future financial choices,
including through the dissemination of materials to seniors on such
topics.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8C0329291550458BBBCEBDBB9BC7B6F3"><enum>(2)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The Office of Financial Protection for
Older Americans shall be headed by a director.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA2701C5D2206486881723E745A4C6004"><enum>(3)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">Such unit shall perform the following
duties:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H04479EBEE9A249DFB8EB66A058555912"><enum>(A)</enum><text display-inline="yes-display-inline">Develop goals for programs that provide
seniors financial literacy and counseling, including programs that—</text>
<clause commented="no" display-inline="no-display-inline" id="H7EF04276C07B4D69ADF46A359BD6C53B"><enum>(i)</enum><text display-inline="yes-display-inline">help seniors recognize warning signs of
unfair and deceptive practices, protect themselves from such practices;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFBA78738567E4BE3BA9BACA1840E099A"><enum>(ii)</enum><text display-inline="yes-display-inline">provide one-on-one financial counseling on
issues including long-term savings and later-life economic security; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC524EDD471C048B5AEFA70E9AA8D7144"><enum>(iii)</enum><text display-inline="yes-display-inline">provide personal consumer credit advocacy
to respond to consumer problems caused by unfair and deceptive
practices.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H683B1291E98D4033B362941EBD679C01"><enum>(B)</enum><text display-inline="yes-display-inline">Monitor certifications or designations of
financial advisors who advise seniors and alert the Securities and Exchange
Commission and State regulators of certifications or designations that are
identified as unfair or deceptive.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9C92B2F18313442B9997391195F720D8"><enum>(C)</enum><text display-inline="yes-display-inline">Not later than 18 months after the date of
the establishment of the Office of Financial Protection for Older Americans,
submit to Congress and the Securities and Exchange Commission recommendations
of the best practices for any legislative and regulatory—</text>
<clause commented="no" display-inline="no-display-inline" id="H343FB487F3254AD3B24225BD75263387"><enum>(i)</enum><text display-inline="yes-display-inline">disseminating information regarding the
legitimacy of certifications of financial advisers who advise seniors;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0098232B9A32470DAEB70CFCDB5B79FD"><enum>(ii)</enum><text display-inline="yes-display-inline">methods in which a senior can identify the
financial advisor most appropriate for the senior’s needs; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H38AB494249E84C70B4F1233C6C8BFFB9"><enum>(iii)</enum><text display-inline="yes-display-inline">methods in which a senior can verify a
financial advisor’s credentials.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H953B329653184940944D69B8C68D6342"><enum>(D)</enum><text display-inline="yes-display-inline">Conduct research to identify best practices
and effective methods, tools, technology and strategies to educate and counsel
seniors about personal finance management with a focus on—</text>
<clause commented="no" display-inline="no-display-inline" id="HBD07BBE2B2F94D3B8E47CA3E4B6E6631"><enum>(i)</enum><text display-inline="yes-display-inline">protecting themselves from unfair and
deceptive practices;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB94856098987446E92D2C7F7DBF3DB4D"><enum>(ii)</enum><text display-inline="yes-display-inline">long-term savings; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3F03F9C52DBB47E8B15C48D7A25356C8"><enum>(iii)</enum><text display-inline="yes-display-inline">planning for retirement and long-term
care.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5F5440E7AC114C17A30B41E5F85A186F"><enum>(E)</enum><text display-inline="yes-display-inline">Coordinate consumer protection efforts of
seniors with other Federal agencies and State regulators, as appropriate, to
promote consistent, effective, and efficient enforcement.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H871D7D7FCC4840F08C5B9004A4CAC82E"><enum>(F)</enum><text display-inline="yes-display-inline">Work with community organizations,
non-profit organizations, and other entities that are involved with educating
or assisting seniors (including the National Education and Resource Center on
Women and Retirement Planning).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H28410F32BE4E4476895535DBCA1A7678"><enum>(g)</enum><header display-inline="yes-display-inline">Office of Fair Lending and Equal
Opportunity</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3A1D4B76BFB8439D990BD7332872B297"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE13CFD5758B4E01B1D2AE332F558E40"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8D80141E77C54E3C9BBE2FBA3B708847"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3B935AE796EC4BFC9437B321B59DC121"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67BEBD89143544F9AF9C6F1720101AF9"><enum>(C)</enum><text display-inline="yes-display-inline">Working with private industry, fair
lending, civil rights, consumer and community advocates on the promotion of
fair lending compliance and education.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8C2AA3477BD049DEB026A762738BD564"><enum>(D)</enum><text display-inline="yes-display-inline">Providing annual reports to the Congress on
the Agency’s efforts to fulfill its fair lending mandate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5F2A83A0B39D4FE38B2C7B32AA11A1EA"><enum>(3)</enum><header display-inline="yes-display-inline">Administration of office</header><text display-inline="yes-display-inline">There is hereby established the position of
Assistant Director of the Agency for Fair Lending and Equal Opportunity
who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H08D5CCB395F0499081ECDAE1DB42574F"><enum>(A)</enum><text display-inline="yes-display-inline">shall be appointed by the Director;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD19000921D1E45599DD0AE1AD5386FAE"><enum>(4)</enum><header display-inline="yes-display-inline">Prohibitions on participation in programs
with respect to certain indicted organizations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA35A1F7308F5488BBBC52C4B9886C6C1"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8132531611D441749E9EB467BE8C8CA9"><enum>(B)</enum><header display-inline="yes-display-inline">Covered organization</header><text display-inline="yes-display-inline">In this paragraph, the term <quote>covered
organization</quote> means any of the following:</text>
<clause commented="no" display-inline="no-display-inline" id="HE4568457D84A4FC3981C1DB6935FB018"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H72256600357343F5A66AC2048E76E40F"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H00BE3F01F84847B3B760CB7168B75EB2"><enum>(iii)</enum><text display-inline="yes-display-inline">Any organization that has filed a
fraudulent form with any Federal or State regulatory agency.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAEED75BBC2224251B5187671776EDE44"><enum>(iv)</enum><text display-inline="yes-display-inline">Any organization that—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9A68F6F6DD424821A6DD2E3F59D91F75"><enum>(I)</enum><text display-inline="yes-display-inline">employs any applicable individual, in a
permanent or temporary capacity;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H33C2E89A8A91446D8F5FE851E6787320"><enum>(II)</enum><text display-inline="yes-display-inline">has under contract or retains any
applicable individual; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE2CA671A5CE6449397070889BAFE0D3A"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E868A001BBE47768FF2EE99A8752392"><enum>(C)</enum><header display-inline="yes-display-inline">Additional definitions</header><text display-inline="yes-display-inline">In this paragraph:</text>
<clause commented="no" display-inline="no-display-inline" id="HC16E6AFDB28D4B2A9729BA89A2D5691E"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HCE0D2F3CAE3A4B468F340FDA78896A43"><enum>(I)</enum><text display-inline="yes-display-inline">Any State chapter of ACORN registered with
the Secretary of State’s office in that State.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF8E9E03B9C7B4FE0A8AA599BFD8C96F4"><enum>(II)</enum><text display-inline="yes-display-inline">Any organization that shares directors,
employees, or independent contractors with ACORN.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H96807009A5D44AF8BFC0ED0527ADB3B3"><enum>(III)</enum><text display-inline="yes-display-inline">Any organization that has a financial stake
in ACORN.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8FDC990E4FA4479BB7818DB2956EB7DC"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H862C746CB07E43869CE7180916481775"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H650EB92512E041C2BBB5B7737DBE2A4B"><enum>(D)</enum><header display-inline="yes-display-inline">Revision of federal acquisition
regulation</header><text display-inline="yes-display-inline">The Federal
Acquisition Regulation shall be revised to carry out the provisions of this
paragraph relating to contracts.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1CB907419F2415AB2D5D7687D5A4496"><enum>(E)</enum><header display-inline="yes-display-inline">Severability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEA888DA92D84FEC82FFD38A712D2117" section-type="subsequent-section"><enum>4107.</enum><header display-inline="yes-display-inline">Consumer Advisory Board</header>
<subsection commented="no" display-inline="no-display-inline" id="HFFB9DB3F79694A3C8DFBB84D9CF43799"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF754C4740F7F40448AC8A6E12C1E6FFF"><enum>(b)</enum><header display-inline="yes-display-inline">Membership</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3CB77DEB75D349F59913084498704D14"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In appointing the members of the Consumer
Advisory Board, the Director shall seek—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF78B53FB6C7646A28330E879ACA1B489"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B79EDC001374262A2C5BCBEBC35CABA"><enum>(B)</enum><text display-inline="yes-display-inline">to represent the interests of covered
persons and consumers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7C23826AE94C4CE8AB77EB999BFC5658"><enum>(2)</enum><header display-inline="yes-display-inline">Prohibition on membership with respect to
certain indicted organizations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H697F477E9A0949A0AC5BF755BDA1524E"><enum>(c)</enum><header display-inline="yes-display-inline">Political affiliation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86E48A7556B747C0A59414A27477F289"><enum>(d)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3A6F917C420D4EA5832F54DDB9CD6A74"><enum>(e)</enum><header display-inline="yes-display-inline">Compensation and travel
expenses</header><text display-inline="yes-display-inline">Members of the
Consumer Advisory Board who are not full-time employees of the United States
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0EC3750CC5C24221BCAA496F84122933"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3C0C368A0C4B4879A39E3C8761845DF3"><enum>(2)</enum><text display-inline="yes-display-inline">be allowed travel expenses, including
transportation and subsistence, while away from their homes or regular places
of business.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB1516AE9ADCA46CD9F37D287F3A9E657" section-type="subsequent-section"><enum>4108.</enum><header display-inline="yes-display-inline">Coordination</header>
<subsection commented="no" display-inline="no-display-inline" id="HC14C678497CC4FA9942CB82A45EE39CD"><enum>(a)</enum><header display-inline="yes-display-inline">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, the
Federal Trade Commission, 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 commented="no" display-inline="no-display-inline" id="HC10D15FD9FCC4F748C0CA7CEA8075406"><enum>(b)</enum><header display-inline="yes-display-inline">Coordination of consumer education
initiatives</header>
<paragraph commented="no" display-inline="no-display-inline" id="HED1396816FBA4AAE8EA1F965CAFD7B69"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEDCDB4F463EB4D13B1180C9DD672072A"><enum>(2)</enum><header display-inline="yes-display-inline">Goals of coordination</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD45AFF2F71D24AC687C9A9964267C273"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3718C80DA7004CDB8B30F70D24C82301" section-type="subsequent-section"><enum>4109.</enum><header display-inline="yes-display-inline">Reports to the Congress</header>
<subsection commented="no" display-inline="no-display-inline" id="H4E7EB00693814F6EACF79BCE0F051833"><enum>(a)</enum><header display-inline="yes-display-inline">Reports required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95BD9FE80AD84693AD4F951672275D31"><enum>(b)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">The reports required by subsection (a)
shall include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8CF08E3891E1419A8A03F5D3BADC2515"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H69778AAB96444D579484090CFE495DFA"><enum>(2)</enum><text display-inline="yes-display-inline">an analysis of the major problems consumers
of financial products and services were confronted with during the preceding
year, including a description of the nature of such problems, and
recommendations for such administrative and legislative action as may be
appropriate to resolve such problems;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61F72A614C36423E81CE1162FA46ADC8"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H60AF3EA3E62548F4B38CDBA1BC8A9AB8"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67A0D0E5B75449C5AADFC730C39763A9"><enum>(6)</enum><text display-inline="yes-display-inline">an analysis of the Agency’s efforts to
increase workforce and contracting diversity consistent with subtitle I of
title I of this Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC56403A462564BD487FAE03E1E6C130D"><enum>(7)</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 commented="no" display-inline="no-display-inline" id="H64374DB0071D41F289CD5B3C0BF94C3C"><enum>(8)</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 commented="no" display-inline="no-display-inline" id="HC88DBC97856E493BBBE5050DD08DE86B"><enum>(A)</enum><text display-inline="yes-display-inline">the difficulties and hardships encountered
with respect to coordinating with other Federal and State government
entities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A2A3A9CA35E4077AFD4CD15758E1B9A"><enum>(B)</enum><text display-inline="yes-display-inline">the regulatory and enforcement limitations
placed on the Agency by this title;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD202C362C2CA4A8F8C1096B50B84706F"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8772940E8D294C068FA010073C18CFC2"><enum>(D)</enum><text display-inline="yes-display-inline">legislative and administrative
recommendations with respect to solving or alleviating identified
difficulties.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFF32BDB93D2B47689ACF1B0427D1831E"><enum>(c)</enum><header display-inline="yes-display-inline">Annual appearance before the
congress</header><text display-inline="yes-display-inline">The Director shall
appear before the House Committee on Financial Services and the House Committee
on Energy and Commerce at an annual hearing, after the report is submitted
under subsection (a)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3F139968A0224A36BDBAEE13BCBD6FE2"><enum>(1)</enum><text display-inline="yes-display-inline">to discuss the efforts, activities,
objectives and plans of the Agency; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H817697BD81124587BE1843E6D13C7DB8"><enum>(2)</enum><text display-inline="yes-display-inline">discuss and answer questions concerning
such report.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7BF1C80CF2B348098F55CE43B938B1ED" section-type="subsequent-section"><enum>4110.</enum><header display-inline="yes-display-inline">GAO small business studies</header>
<subsection commented="no" display-inline="no-display-inline" id="HB9C3B4E8DF314806AB811636036E1B7B"><enum>(a)</enum><header display-inline="yes-display-inline">Studies required</header><text display-inline="yes-display-inline">Not later than the end of the 3-year period
beginning on the designated transfer date, and also 3 years thereafter, the
Comptroller General of the United States shall carry out a study to examine the
effects that regulations issued by the Agency have on small businesses.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H456B58EA9D1049B491975719C2642B4D"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">At the conclusion of each study required
under subsection (a), the Comptroller General of the United States shall issue
a report to the Congress containing the finding and determinations made by the
Comptroller General in carrying out such study.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9F09537A80B546ECBE0D7A997DBA65FC" section-type="subsequent-section"><enum>4111.</enum><header display-inline="yes-display-inline">Funding; fees and assessments; penalties
and fines</header>
<subsection commented="no" display-inline="no-display-inline" id="H87761D787CE240CDA2DE4769C3883719"><enum>(a)</enum><header display-inline="yes-display-inline">Transfer of funds from the board of
governors</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA87F19E609C04ABBBD3E960630E79F9A"><enum>(1)</enum><header display-inline="yes-display-inline">Transfer required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB601058146C4405BA1BFC5B27FF40C4"><enum>(2)</enum><header display-inline="yes-display-inline">Procedures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H98965BC62EEF49FE87A1E182F0FC0484"><enum>(b)</enum><header display-inline="yes-display-inline">Fees and assessments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA958D5087E0C42278DD6A53665BD1B6F"><enum>(1)</enum><header display-inline="yes-display-inline">Assessment required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E8F3E853BAC4243A006380E4C0CC3CB"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5ADD6773C43E453BADB2AF0741DC7B1E"><enum>(B)</enum><header display-inline="yes-display-inline">Basis for assessment</header><text display-inline="yes-display-inline">The Agency shall assess fees on covered
persons pursuant to this subsection based on the size, complexity of, risk
posed by, 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 commented="no" display-inline="no-display-inline" id="H1DD9ACFE0AE4464B9B32E3DC5E9A939C"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H776FA46E5E7E4D57903F01145B113665"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director shall prescribe regulations to
govern the imposition and collection of fees and assessments.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBB45389FAAB44440BA6D08BB34506877"><enum>(B)</enum><header display-inline="yes-display-inline">Factors required to be
addressed</header><text display-inline="yes-display-inline">Regulations
prescribed by the Director under this subsection shall specify and
define—</text>
<clause commented="no" display-inline="no-display-inline" id="HC8F8825D27B44818A6D7FDAA8CF37F33"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H620D1D4A7F014F729F88045065891EF2"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount and frequency of fees or
assessments; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1EA1AC3937864691A8E14B5CCCFDEDD5"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C6E94D0B1434D7A9A3171B21B608ECB"><enum>(3)</enum><header display-inline="yes-display-inline">Assessments on depository institution
covered persons</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA58CD592B63341DDA9027421EDF6CF67"><enum>(A)</enum><header display-inline="yes-display-inline">Depository institution covered person
defined</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H557F52AFBC5846CC9F9B729E2871966B"><enum>(B)</enum><header display-inline="yes-display-inline">Assessments</header>
<clause commented="no" display-inline="no-display-inline" id="HC2B96F03DBE94AC2BE990F30CDA9AEDA"><enum>(i)</enum><header display-inline="yes-display-inline">Fees required</header><text display-inline="yes-display-inline">The Director shall assess fees for
supervision as are appropriate on depository institution covered persons,
taking into account the size, complexity of, risk posed by, 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 commented="no" display-inline="no-display-inline" id="H41D6D289FAE74399909BDE525B7F8744"><enum>(ii)</enum><header display-inline="yes-display-inline">Limitation on certain fees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H524D98E3917D4A0D8F2ABFA89C026AD0"><enum>(iii)</enum><header display-inline="yes-display-inline">Basis for fee amounts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23968A00A6E64F66A52F9B47A413C469"><enum>(C)</enum><header display-inline="yes-display-inline">Coordination during implementation
period</header><text display-inline="yes-display-inline">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 in each of the first 3 years following the date of enactment of this
Act shall be no more than the assessments such depository institution covered
person was required to pay for the calendar year immediately preceding the
designated transfer date.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61A966D485564579986076D34ED99078"><enum>(D)</enum><header display-inline="yes-display-inline">Marginal assessment rate</header>
<clause commented="no" display-inline="no-display-inline" id="H85FCACEACEB8493FA3639F5865722C44"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In setting assessment rates for depository
institution covered persons, the Director shall not impose assessments that, on
a risk-adjusted basis, 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 commented="no" display-inline="no-display-inline" id="HF5CF8047876B46C2BF347670DC976253"><enum>(ii)</enum><header display-inline="yes-display-inline">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 or to set assessments that would result in higher
marginal assessments on the depository institution covered persons with assets
of less than $25,000,000,000 if based on the compliance record of or higher
risks posed by such covered persons.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE918A4E935F4E40BE3A37793ECE3434"><enum>(E)</enum><header display-inline="yes-display-inline">Limitations on assessments</header>
<clause commented="no" display-inline="no-display-inline" id="H87138BC082A441139485D06DD25478D2"><enum>(i)</enum><header display-inline="yes-display-inline">Assessments for administrative
costs</header><text display-inline="yes-display-inline">Notwithstanding any
provision in this title, no depository institution covered person shall be
charged an assessment to be used for the supervision, examination, or
enforcement activities by the Agency of nondepository covered persons.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBC7EE1989EF44021844D3FB033324DB7"><enum>(ii)</enum><header display-inline="yes-display-inline">Amounts paid for consumer compliance
supervision</header><text display-inline="yes-display-inline">Notwithstanding
any provision in this title, no depository institution covered person shall pay
more for consumer compliance supervision so that levels of assessments under
this subparagraph combined with levels of assessments by an agency responsible
for chartering and/or supervising the depository institution covered person
shall be no more than it paid before the date of enactment of this
title.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H093B04CDBD854706B9ABA16064B81E8D"><enum>(4)</enum><header display-inline="yes-display-inline">Assessments on nondepository covered
persons</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9C5E944312E941B39758806C764D79D0"><enum>(A)</enum><header display-inline="yes-display-inline">Nondepository covered person
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <quote>nondepository covered person</quote>—</text>
<clause commented="no" display-inline="no-display-inline" id="H095108A227D143A5B06FA08A9B1211A8"><enum>(i)</enum><text display-inline="yes-display-inline">means a covered person that is not a credit
union or insured depository institution; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC64AB566A5304C9A835BC9FF3DDC74E7"><enum>(ii)</enum><text display-inline="yes-display-inline">includes any bank holding company.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H360E592298704620A1605F8F99997224"><enum>(B)</enum><header display-inline="yes-display-inline">Assessments</header>
<clause commented="no" display-inline="no-display-inline" id="H30ECD3D306534F56A4DBDDC4FCF8E192"><enum>(i)</enum><header display-inline="yes-display-inline">Fees required</header><text display-inline="yes-display-inline">The Director shall assess fees for
registration, examination, and supervision of nondepository covered
persons.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H60222B5C4AFE40E790C03B163459D327"><enum>(ii)</enum><header display-inline="yes-display-inline">Basis for fee amounts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H83171FA8298140208CE8A6CC80917C5B"><enum>(iii)</enum><header display-inline="yes-display-inline">Registration fee minimums</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H293CE213A13C497382269CC2B4E6CE4A"><enum>(C)</enum><header display-inline="yes-display-inline">Nondepository covered person assessment not
less than for depository covered persons</header><text display-inline="yes-display-inline">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><subparagraph commented="no" display-inline="no-display-inline" id="H1B87904E7DAF4F18AEA807F8D9312DEE"><enum>(D)</enum><header display-inline="yes-display-inline">Offsetting collections</header><text display-inline="yes-display-inline">Fees assessed under this paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="H7969829185DE4A39B89FCEEF163B36E5"><enum>(i)</enum><text display-inline="yes-display-inline">shall not be collected for any fiscal year
except to the extent provided in advance in appropriation Acts; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H509CD799F3D54DE585B3C00CFB36FE81"><enum>(ii)</enum><text display-inline="yes-display-inline">shall be deposited and credited as
offsetting collections to the account providing appropriations to the
Agency.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3F3FFA755C464E18BC854A09C17E0A6C"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of appropriations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9E4849236059425EBE7F11E69771C1F9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 $200,000,000 for each of fiscal years 2010,
2011, 2012, 2013, and 2014.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1B41A5F23CE0404BB2046683E14E4C49"><enum>(2)</enum><header display-inline="yes-display-inline">Apportionment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1D164BA3FD624DAB86D7BB86771426BE"><enum>(3)</enum><header display-inline="yes-display-inline">Other available funds taken into
account</header><text display-inline="yes-display-inline">Sums appropriated
under this subsection shall take into account such other sums available to the
Agency under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9830E321BE304BCF915D98D6350D8E30"><enum>(d)</enum><header display-inline="yes-display-inline">Consumer financial protection agency
depository institution fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB66D09B0B3E64CAE8F3A2AF3AD60944A"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H309EBC0A79A047338ECAC65362550B19"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA138C6B9DA0E4B428F27D2BE6EDE968E"><enum>(B)</enum><header display-inline="yes-display-inline">Amounts in fund not available for certain
purposes</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA32CAD5D231416E967D47B0E02B8CF8"><enum>(2)</enum><header display-inline="yes-display-inline">All transferred funds
deposited</header><text display-inline="yes-display-inline">All amounts
transferred to the Agency under subsection (a) shall be deposited into the CFPA
Depository Fund or the CFPA Nondepository Fund, at the discretion of the
Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63FB91A1927A474E869DD2B7049162AD"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9C567C8C765348CD9968441843FEFE01"><enum>(e)</enum><header display-inline="yes-display-inline">Consumer financial protection agency
nondepository institution fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2814987D2CDD43A3B0CFC388898E680F"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC9DC9CB37571446DAC7904F67ADBEAC2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7EC4433FCF454F76B39CE9B37129268E"><enum>(B)</enum><header display-inline="yes-display-inline">Amounts in fund not available for certain
purposes</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2967E621F4CD443481477CCC44A0A7CF"><enum>(2)</enum><header display-inline="yes-display-inline">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)(4) in the CFPA Nondepository Fund.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD39575A371DA418A948DB28C5F57FEAC"><enum>(f)</enum><header display-inline="yes-display-inline">General provisions relating to
funds</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD301A6D060CE4433A479BB2BC980C1E2"><enum>(1)</enum><header display-inline="yes-display-inline">Maintenance of funds</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAA7A6387E8F9405C9D1389B768C2A197"><enum>(A)</enum><header display-inline="yes-display-inline">Agency funds maintained by
treasury</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71B04E919DCB47179AFB88F855D234C5"><enum>(i)</enum><text display-inline="yes-display-inline">maintained and administered by the
Secretary; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6703962E2E104CC5A69A1B7F08413159"><enum>(ii)</enum><text display-inline="yes-display-inline">maintained separately and not
commingled.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA8B55D1DB8754A3BAB7C8F2695418839"><enum>(B)</enum><header display-inline="yes-display-inline">Agency’s authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H05582AB9DACA4BE295E27B1F8FA0BBBD"><enum>(C)</enum><header display-inline="yes-display-inline">Accounting requirements</header>
<clause commented="no" display-inline="no-display-inline" id="HAE44FED34DEF40B5978F2757524923BC"><enum>(i)</enum><header display-inline="yes-display-inline">Accounting for use of facilities and
resources</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB7697093FAC4E7AA272CA25EA574FF1"><enum>(I)</enum><text display-inline="yes-display-inline">with respect to depository institution
covered persons, to the CFPA Depository Fund; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF02AF4DDE067495DABD9004A004E51EB"><enum>(II)</enum><text display-inline="yes-display-inline">with respect to nondepository covered
persons, to the CFPA Nondepository fund.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6F6DA74643E64AFF83D5E289AB389A80"><enum>(D)</enum><header display-inline="yes-display-inline">Allocation of administrative
expenses</header><text display-inline="yes-display-inline">Any personnel,
administrative, or other overhead expense of the Agency shall be
allocated—</text>
<clause commented="no" display-inline="no-display-inline" id="H04C363488CFB4434867DFB0255529C6B"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9BAFF25A37C541C7AEB924D2E3A88183"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF51D7C9807724390BEA710E0E9083FC1"><enum>(iii)</enum><text display-inline="yes-display-inline">between the CFPA Depository Fund and the
CFPA Nondepository Fund, in amounts reflecting the relative degree to which the
expense was incurred that are reasonably related as a general matter to
activities of depository institution covered persons, and nondepository covered
persons; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE405D1564B644953B76DC318C57D1C53"><enum>(I)</enum><text display-inline="yes-display-inline">the aggregate assets of all depository
institution covered persons bears to the aggregate assets of all covered
persons; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA94BFA1DEA864E2BAB6D3CAB9747DF46"><enum>(E)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CC6572DD1DC41E0B52384D2DB4CA0F6"><enum>(2)</enum><header display-inline="yes-display-inline">Investment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H56CE31FC98374592B9BA4CF7EC84E2F8"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H51B706B0E2F34F1C940E0C59AF391C9A"><enum>(B)</enum><header display-inline="yes-display-inline">Eligible investments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37B46F632B9740F4848F07FE8C67CFDE"><enum>(C)</enum><header display-inline="yes-display-inline">Interest and proceeds
credited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB89ED13581B4D7094E7378A27290BC9"><enum>(3)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), an
attorney’s activities related to assisting another person in preventing a
foreclosure shall be subject to this title except to the extent such activities
constitute, or are incidental to, the provision of legal services to a client
of the attorney.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2CC5DAA9254B43558A592E25F2319946"><enum>(g)</enum><header display-inline="yes-display-inline">Penalties and fines</header>
<paragraph commented="no" display-inline="no-display-inline" id="H68733C04C73442AB88B66DD4C76DED90"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment of victims relief
fund</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3DACDAC38B0843FEA54158C8FD24B02D"><enum>(2)</enum><header display-inline="yes-display-inline">Deposits</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H082814F2926A4658A73DB6F7DFBBCF1E"><enum>(3)</enum><header display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H239111DA55204CF990FEF34D775429D5"><enum>(4) </enum><header display-inline="yes-display-inline">Financial education and counseling
program</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H13AD3CE89CE14CB3AA13EEA5A983BF91"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To the extent such victims cannot be
located or such payments are otherwise not practicable, 5 percent of the
Victims Relief Fund shall be transferred, up to $10,000,000 on an annual basis,
to the Secretary of the Treasury so that the Secretary may carry out the
Financial Education and Counseling Grant Program established under section 1132
of the Housing and Economic Recovery Act of 2008 (12 U.S.C. 1701).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE6EA439406046CF937A390345A30B65"><enum>(B)</enum><header display-inline="yes-display-inline">Memorandum of understanding</header><text display-inline="yes-display-inline">Not later than 12 months after the date of
enactment of this subtitle, the Director shall enter into a memorandum of
understanding with the Secretary of the Treasury to coordinate the release of
Civil Penalty Fund amounts under subparagraph (A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5D59F26A7A6C4D52939989FD542E4B4B"><enum>(C)</enum><header display-inline="yes-display-inline">Assistance for individuals at financial
risk</header><text display-inline="yes-display-inline">Section 1132 of the
Housing and Economic Recovery Act of 2008 (12 U.S.C. 1701) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="H7CD6A78FA85B425486C39B9656A78C01"><enum>(i)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>prospective homebuyers</quote> each place that term appears and
inserting <quote>individuals at financial risk</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H933E30AA6BB34C368C9B9BB4E6A579E2"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2A0F4B138BDE45DC8A93A4199BEE5530"><enum>(I)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>prospective homebuyers</quote> and inserting <quote>individuals at
financial risk</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3273CA2151AE4320AE5D73F45FD70AE4"><enum>(II)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDEE2A34E4781432C83A104D013274049" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7C55CA9D25804B208908B661004EE2B9"><enum>(3)</enum><header display-inline="yes-display-inline">Determination of financial
risk</header><text display-inline="yes-display-inline">For purposes of this
section, the Director of the Consumer Financial Protection Agency shall
establish the criteria used to determine whether an individual is at financial
risk, and the Secretary shall use such criteria when selecting organizations
under paragraph (2).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H5AA386E4AFCC4FDA940516D18330768D"><enum>(iii)</enum><text display-inline="yes-display-inline">in subsection (c)(1)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H434471AADD684D8080310D2FF16E1C86"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>or</quote>;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD54721731FE54A9896C5806150FB3605"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period
and inserting <quote>; or</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD7E6EC2D7BBD426FBE7544E434251F1F"><enum>(III)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3775CE9B03F2440EA4ABE73ECDAEEDCB" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HB382203FB7354B7CAA2B6A814E807676"><enum>(C)</enum><text display-inline="yes-display-inline">a nonprofit corporation that—</text>
<clause commented="no" display-inline="no-display-inline" id="H0F9C9E1CBB5041F785A4442205277865"><enum>(i)</enum><text display-inline="yes-display-inline">is exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF5B0394C060643B5867E3F07837FAB04"><enum>(ii)</enum><text display-inline="yes-display-inline">specializes or has expertise in working
with individuals at financial
risk.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subclause></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H234DC88A7F614FA891390708A8B0F0AF"><enum>(h)</enum><header display-inline="yes-display-inline">Assessments for certain nondepository
institution covered persons</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF68F8852565D48C883FF3EAE6EF92D9C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
Act, a nondepository institution covered person shall not be subject to
assessments by the Agency if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF8FBF02232E14368995C9479F137B372"><enum>(A)</enum><text display-inline="yes-display-inline">the assets that are financial activities of
that nondepository covered person represent less than a substantial portion of
its total assets; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA5AAC7C59344B60BE7538C283C64B27"><enum>(B)</enum><text display-inline="yes-display-inline">the gross revenues derived from financial
activities of that nondepository covered person are less than a substantial
portion of its gross revenues.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63E76D5CD6E640B8BC424BEF948FB4E5"><enum>(2)</enum><header display-inline="yes-display-inline">Extensive consumer financial products or
services operations</header><text display-inline="yes-display-inline">Paragraph
(1) shall not apply to nondepository institution covered person that the
Director determines has a level of assets or revenues derived from financial
activities, a number of transactions in consumer financial products or
services, or a number of accounts relating to consumer financial products or
services that the Director determines represents an extensive consumer
financial products or services operation.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H0055B89E00244FA2B651925ED78D8EA8" section-type="subsequent-section"><enum>4112.</enum><header display-inline="yes-display-inline">Amendments relating to other administrative
provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="HA1870103C4CE4F7D867E2B255A6E6A58"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9D470949590A4683A1804F9AFB3611A1"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H88AD81F5F33D4B89934E4F6639C86D2E" section-type="subsequent-section"><enum>4113.</enum><header display-inline="yes-display-inline">Oversight by GAO</header>
<subsection commented="no" display-inline="no-display-inline" id="HBB67AB5E14184B368B04CB25A8CC49E5"><enum>(a)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The Comptroller General may audit the
programs, activities, receipts, expenditures, and financial transactions of the
Agency and of any agents and representatives of the Agency as related to the
agent’s or representative’s activities on behalf of or under authority of the
Agency.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H44FDD5EFA8C6480EADA155C488B541B7"><enum>(b)</enum><header display-inline="yes-display-inline">Access</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the Comptroller General shall have access, upon request, to any information,
data, schedules, books, accounts, financial records, reports, files, electronic
communications, or other papers, things, or property belonging to or in use by
the Agency, or any vehicles established by the Agency under this Act, and to
the directors, officers, employees, independent public accountants, financial
advisors, staff, working groups, and agents and representatives of the Agency
(as related to the agent’s or representative’s activities on behalf of the
Agency) or any vehicle established by the Agency at such reasonable time as the
Comptroller General may request. The Comptroller General may make and retain
copies of such books, accounts, and other records as the Comptroller General
deems appropriate.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB8B3C01C84A843F0ADEE07540CEFE377" section-type="subsequent-section"><enum>4114.</enum><header display-inline="yes-display-inline">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 commented="no" id="H5B8351FA410C4B29AADA1E6DC0928FBD" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">General Powers of the Director and
Agency</header>
<section commented="no" display-inline="no-display-inline" id="H3EF4D4EB4A8A4F2AB43152BD88722530" section-type="subsequent-section"><enum>4201.</enum><header display-inline="yes-display-inline">Mandate and objectives</header>
<subsection commented="no" display-inline="no-display-inline" id="HB81180926A91449990715376A8E93105"><enum>(a)</enum><header display-inline="yes-display-inline">Mandate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H864B3475ECED44739340A95447F8E93C"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22CB3E08CCAB448188A37D54DA8C56E0"><enum>(1)</enum><text display-inline="yes-display-inline">consumers have and can use the information
they need to make responsible decisions about consumer financial products or
services;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA212A5346824232A3E9915B4E6E4261"><enum>(2)</enum><text display-inline="yes-display-inline">consumers are protected from abuse,
unfairness, deception, and discrimination;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC3F817D778B74F7596B95B8689EBEFE8"><enum>(3)</enum><text display-inline="yes-display-inline">markets for consumer financial products or
services operate fairly and efficiently with ample room for sustainable growth
and innovation; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2E321A110EA4AD1BD2F549C6BD13CB1"><enum>(4)</enum><text display-inline="yes-display-inline">traditionally underserved consumers and
communities have equal access to responsible financial services.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB085A450288546F6A2C81F64495DA1EF" section-type="subsequent-section"><enum>4202.</enum><header display-inline="yes-display-inline">Authorities</header>
<subsection commented="no" display-inline="no-display-inline" id="H8C3D0F5C96B14408B198DD73A269FA20"><enum>(a)</enum><header display-inline="yes-display-inline">In general</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, 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 commented="no" display-inline="no-display-inline" id="H3560FE81049645D9A78C10BBD424D335"><enum>(b)</enum><header display-inline="yes-display-inline">Rulemaking, orders, and guidance</header>
<paragraph commented="no" display-inline="no-display-inline" id="H047F12E147044D6C982A81593E87A792"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9124085267FB453DA13859C51B95C6B5"><enum>(2)</enum><header display-inline="yes-display-inline">Standards for rulemaking</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF89C5171013E487CAF960000FEE2AB62"><enum>(A)</enum><text display-inline="yes-display-inline">consider the potential benefits and costs
to consumers, covered persons, and the Federal Government, including the
potential reduction of consumers’ access to consumer financial products or
services, resulting from such regulation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 and whether such
regulation will have an inconsistent effect on nondepository institution
covered persons and depository institution covered persons.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5B196BE817C34140BAF92257FCCBEC02"><enum>(3)</enum><header display-inline="yes-display-inline">Exemptions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB27B136D0B434624BD7C9E081F057EA8"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16398FA4020A448083344C20129197D4"><enum>(B)</enum><header display-inline="yes-display-inline">Factors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C8DF53D5FDD4708B7E802B504E07F72"><enum>(i)</enum><text display-inline="yes-display-inline">The total assets of the covered
person.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCF1159C14F0A4FC2BB714E55F4BBE7A7"><enum>(ii)</enum><text display-inline="yes-display-inline">The volume of transactions involving
consumer financial products or services in which the covered person
engages.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4550332E2D8B451EB0D506FD4EC80D78"><enum>(iii)</enum><text display-inline="yes-display-inline">The extent to which the covered person
engages in 1 or more financial activities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H838CD8D49F7C45999FF9881FD8C88245"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H59096C83F0CB424BA4785DE0E96AD602"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22AB91306378496D8A569071D306DB2D"><enum>(c)</enum><header display-inline="yes-display-inline">Examinations and reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCA559AA11C2D48159327CDD764A3D7F8"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H944604C746DA4300963F59E4D230F5DE"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6FB472999044DC9A74C265FD369B1A9"><enum>(A)</enum><text display-inline="yes-display-inline">The asset size of the covered
persons.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H59282C3DAFC844C4A8E535E86D4EEEC9"><enum>(B)</enum><text display-inline="yes-display-inline">The volume of transactions involving
consumer financial products or services in which the covered persons
engage.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEF91BF31C8BA46879AD964DBF47A1140"><enum>(C)</enum><text display-inline="yes-display-inline">The risks to consumers created by the
provision of such consumer financial products or services.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A157B162D6F44CBBEE7B04F8C6B831B"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCAAB76F4F57D417F980B14019806BB1C"><enum>(3)</enum><header display-inline="yes-display-inline">Coordination</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB6D9268FA8964EB49C93CD552AC4BBE7"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC063C915AD3497D975612B8B86C9426"><enum>(5)</enum><header display-inline="yes-display-inline">Content of reports</header><text display-inline="yes-display-inline">The reports authorized in paragraph (4) may
include such information as necessary to keep the Agency informed as to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6DA42DF961854280B379736EA751BFFC"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H64BB0ADCFA764B5AB5321E85ED62D2D9"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H74E09BE814614589876FE92AF048E032"><enum>(6)</enum><header display-inline="yes-display-inline">Use of existing reports</header><text display-inline="yes-display-inline">In general, the Agency shall, to the
fullest extent possible, use—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF5027DFD3DA54B87B53A3978D2B56221"><enum>(B)</enum><text display-inline="yes-display-inline">information that has been reported
publicly.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC7301CAAD57F44C791190B121C9DFF9F"><enum>(7)</enum><header display-inline="yes-display-inline">Access by the agency to reports of other
regulators</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3D37FE02ABFD44FC91D21AE7340468F9"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA309040ED6946CBB6478305297B9F6D"><enum>(B)</enum><header display-inline="yes-display-inline">Provision of other reports to
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF3CECE6DA3B14A54AEB6199756142FF9"><enum>(8)</enum><header display-inline="yes-display-inline">Access by other regulators to reports of
the agency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H14B296D26F054B96837179BBDAE37E34"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3323EEDB7529456AB0FB6AEF91DF4586"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H027C065E9B864495975061A60BAB069E"><enum>(9)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA0608BCC46C140F69939F766B57B5349"><enum>(10)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6FE3458ACB61487CA58BF55613BE7E7F"><enum>(11)</enum><header display-inline="yes-display-inline">Delegation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA950F5E298ED49E48478CC96D5D198F9"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC06C81CD8C67493D9B65A5060E1E9055"><enum>(B)</enum><header display-inline="yes-display-inline">Standard for delegation</header><text display-inline="yes-display-inline">The Director shall provide such delegation
if, in the Director’s sole discretion, the Director determines that—</text>
<clause commented="no" display-inline="no-display-inline" id="HCB2439F1D4C74E68A1A84FD05CB20F65"><enum>(i)</enum><text display-inline="yes-display-inline">the delegation is consistent with the
public interest;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H917F3BE488BA4FCAAD0A49C91D178283"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7DE28296B4D4A9FAC21B4B30FE3B78D"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF853566466744E07A8279ED0C051D2D3"><enum>(D)</enum><header display-inline="yes-display-inline">No effect on enforcement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H64191099743643639FB43BD3AD1A8174"><enum>(d)</enum><header display-inline="yes-display-inline">Exclusive rulemaking and examination
authority</header><text display-inline="yes-display-inline">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 a provision of that law for purposes of
assuring compliance with this title, a provision of any enumerated consumer
law, any provision of 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 under
that provision of law 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 commented="no" display-inline="no-display-inline" id="H78CDD5820FEE4FEDA8343D01D34C0100"><enum>(e)</enum><header display-inline="yes-display-inline">Primary enforcement authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="H69A41226219D45E3A70DD4E6C390E36E"><enum>(1)</enum><header display-inline="yes-display-inline">The agency to have primary enforcement
authority</header><text display-inline="yes-display-inline">To the extent that
a Federal law authorizes the Agency and another Federal agency to enforce a
provision of a law, the Agency shall have primary enforcement authority to
enforce the provision of that Federal law with respect to any person in
accordance with this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H31162F1ECBB143338817B56262A8DE3C"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with the Federal Trade
Commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD6D464A196D74919A86C1687192355AB"><enum>(A)</enum><header display-inline="yes-display-inline">Notice</header><text display-inline="yes-display-inline">If the Federal Trade Commission is
authorized to enforce any Federal law described in paragraph (1), or a
regulation prescribed under any such Federal law, either the Agency or the
Federal Trade Commission shall serve written notice to the other of any
enforcement action prior to initiating such an enforcement action, except that
if the agency or commission filing the action determines that prior notice is
not feasible, that agency or commission may provide notice immediately upon
initiating such enforcement action.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H681BDD8523EF41AD89DAE7E71CF3AD20"><enum>(B)</enum><header display-inline="yes-display-inline">Intervention by either entity</header><text display-inline="yes-display-inline">Upon receiving any notice under
subparagraph (A) with respect to an enforcement action, the Agency or Federal
Trade Commission may intervene in such enforcement action, and upon
intervening—</text>
<clause commented="no" display-inline="no-display-inline" id="HD1C2108ED78A474FAF1773BDA35906A3"><enum>(i)</enum><text display-inline="yes-display-inline">be heard on all matters arising in such
enforcement action; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE56D1058451745979CA315457725F6A8"><enum>(ii)</enum><text display-inline="yes-display-inline">file petitions for appeal in such
enforcement action.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A0228D1A2864429A24EDC7F73A1D85C"><enum>(C)</enum><header display-inline="yes-display-inline">Pendency of action</header><text display-inline="yes-display-inline">Whenever a civil action has been instituted
by or on behalf of the Agency or the Federal Trade Commission for any violation
of any Federal law described in paragraph (1), or a regulation prescribed under
any such Federal law, the other entity may not, during the pendency of that
action, institute a civil action under such law or regulation against any
defendant named in the complaint in such pending action for any violation
alleged in the complaint.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED9A71CDBF184D0AB0B9D2EA77328372"><enum>(D)</enum><header display-inline="yes-display-inline">Agreements between entities</header>
<clause commented="no" display-inline="no-display-inline" id="HEC2439A2333E46399AF22F40A02BEA1C"><enum>(i)</enum><header display-inline="yes-display-inline">Negotiations authorized</header><text display-inline="yes-display-inline">The Agency and the Federal Trade Commission
may negotiate an agreement to establish procedures to ensure that the
enforcement actions of the 2 agencies are appropriately coordinated.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBA3167BD2D6D479C9A7D4E152084A00E"><enum>(ii)</enum><header display-inline="yes-display-inline">Scope of negotiated agreement</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H144730EC6D184E16AD257D322DD59DD0"><enum>(3)</enum><header display-inline="yes-display-inline">Coordination with other federal
agency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H86E9CABCEDAF4C89A8257F752026035D"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF49C3D78C42A46D8A8659F80176144F5"><enum>(B)</enum><header display-inline="yes-display-inline">Backstop enforcement authority of other
federal agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H69B1956E32B24DE2819F5B4C97BF0B67"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H629E5374AFD14933B92E59213202C27B"><enum>(f)</enum><header display-inline="yes-display-inline">Preservation of other authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE78F234E1867485DA8E6D790DF6BB213"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9C31D3B1C9240869837E15734B1B36F"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H94C031A045E04125BC71F3A1A5EC1B29"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC894F4D1241F4B12BEB6B9344D9D23AC"><enum>(g)</enum><header display-inline="yes-display-inline">Effect on other authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0B7C2B9A3D754384A2F454BFC7656D12"><enum>(h)</enum><header display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="HF71DF12F12054BFC9A1A791C330F050F"><enum>(i)</enum><header display-inline="yes-display-inline">Preservation of Farm Credit Administration
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 Farm Credit Administration.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HEEF3AC8FCD384906BCFDCC16CD4B4B56" section-type="subsequent-section"><enum>4203.</enum><header display-inline="yes-display-inline">Examination and enforcement for small
banks, thrifts, and credit unions</header><text display-inline="yes-display-inline"></text>
<subsection commented="no" display-inline="no-display-inline" id="H8C036BD196284183A83A26E102A2E29B"><enum>(a)</enum><header display-inline="yes-display-inline">Scope of institutions subject to this
section</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6554AD655D7E460C8B564908DFC2206F"><enum>(1)</enum><header display-inline="yes-display-inline">Institutions covered</header><text display-inline="yes-display-inline">This section shall apply to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0BE9EE651F284B44BFBC1735766887B0"><enum>(A)</enum><text display-inline="yes-display-inline">any insured depository institution with
total assets of $10,000,000,000 or less; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB5E89874A4A4031B0A728B5BFB292B1"><enum>(B)</enum><text display-inline="yes-display-inline">any insured credit union with total assets
of $10,000,000,000 or less.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H62CCBF126CA743039CA2F58DABCF6225"><enum>(2)</enum><header display-inline="yes-display-inline">Appropriate agency</header><text display-inline="yes-display-inline">For purposes of this title, the term
<quote>appropriate agency</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3CC62627CC7E47619ECBF2832FF64C1C"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8EC129F518124F1BB57345AE6DE521D5"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of an insured credit union, the
National Credit Union Administration.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC43A7ED85FBD40FE9A84FCCD6147AE8C"><enum>(b)</enum><header display-inline="yes-display-inline">Examinations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFF4AEBB01F204E1FA27E375A884FAE99"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBE0406F24D984140B205D8750EE5E5DE"><enum>(2)</enum><header display-inline="yes-display-inline">Agency role in examinations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H50592EA252A0415E8BEC00C1FE6DB83A"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H768A318E5FBC499CA00AD214A50DC645"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF6EB5E55068F4C8D8F499AF691E3EDC5"><enum>(c)</enum><header display-inline="yes-display-inline">Enforcement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H684A8CDB7FDB4B8BBAEDBA1E7C0BF368"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB435557FBDF45FCB7AF6285F7BF47D5"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with appropriate
agency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF440A3A83A3045B1A25FAE5B8387E528"><enum>(A)</enum><header display-inline="yes-display-inline">Referral</header>
<clause commented="no" display-inline="no-display-inline" id="HCC51801B3A354B7A8CEAF9C4735E5878"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC20E3E5CAEA490D8FE38935D0893EC3"><enum>(ii)</enum><header display-inline="yes-display-inline">Explanation</header><text display-inline="yes-display-inline">Any recommendation under clause (i) shall
be accompanied by a written explanation of the concerns giving rise to the
recommendation.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9783B807F6CA41F6A3597E555ED106BF"><enum>(B)</enum><header display-inline="yes-display-inline">Backstop enforcement authority of
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8B63AE6C5264FA6AFB60310EAE28FA8"><enum>(d)</enum><header display-inline="yes-display-inline">Actions arising out of consumer complaint
system</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC4142BE8B83C474FB21B26F829CFC889"><enum>(e)</enum><header display-inline="yes-display-inline">Removal of appropriate agency for
particular institution</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8BE11B5D64D9456C833DBD44C5A91BC4"><enum>(1)</enum><header display-inline="yes-display-inline">Heightened supervision</header><text display-inline="yes-display-inline">The Director—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H30E3D601CD3F4A0FB8928571786110B2"><enum>(A)</enum><text display-inline="yes-display-inline">may provide notice to an appropriate agency
that the Director is considering issuing a removal order under paragraph (2);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H140D042B3B034E77AEE88C83EB58F0C2"><enum>(B)</enum><text display-inline="yes-display-inline">shall have an Agency examiner participate
in the examination process under subsection (b) for at least 1 examination
cycle.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H275AC7FFC0A1447B991264EF5A7E28B8"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22708CBE41FF4059A7DC0F4B74F40B09"><enum>(3)</enum><header display-inline="yes-display-inline">Agency authority upon removal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H38FB3B80B8284CE69FC657DC1518CAF4"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26E098E4827041FEAA71FE1F50392B93"><enum>(5)</enum><header display-inline="yes-display-inline">Automatic appeal</header><text display-inline="yes-display-inline">An order issued by the Director pursuant to
paragraph (2) shall be automatically appealed to the Secretary.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FDAAE18B8E644239DED5797C9EB2CA7"><enum>(6)</enum><header display-inline="yes-display-inline">Decision by the Secretary of the
Treasury</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE754BEA62F9B4A61AEE2F2BDC959A66E"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5DD124D45B294A479BA6BC9A763E2ED4"><enum>(B)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H803EFE2A99F9469A9EB878E5F2B4E2F3"><enum>(7)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD3DE1AFC3FC44749BFC72AB73E12C0AC"><enum>(A)</enum><text display-inline="yes-display-inline">Reports of examination of such
institution.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8CBE66865A5342BF94B94F224EBC3D02"><enum>(B)</enum><text display-inline="yes-display-inline">Any enforcement actions taken by an
appropriate agency against such institution and the results of those
actions.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62AFE6D02BCF4EB58B93639853F115AD"><enum>(C)</enum><text display-inline="yes-display-inline">Consumer complaints issued against such
institution.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H851B1E98EBF7455D9416C8EEFC87D024"><enum>(D)</enum><text display-inline="yes-display-inline">Actions taken by State attorneys general
and private rights of action against such institution.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5D73BA4906A54EB4AE4B63E4DD792E6F"><enum>(f)</enum><header display-inline="yes-display-inline">Policies and procedures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H98280F6ED97749C7A4C62E069578DB31"><enum>(g)</enum><header display-inline="yes-display-inline">Assessments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC422043DCF5045A0B6718CB33419F3CB"><enum>(1)</enum><header display-inline="yes-display-inline">Limitation on certain fees</header><text display-inline="yes-display-inline">The Agency shall not assess examination
fees on an institution referred to in subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H300464C5E87145669CE2F52BB25F7D34"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="HBF9CB0C80459436385FEDFCDA3013C4D"><enum>(h)</enum><header display-inline="yes-display-inline">Assistive Division for Community Financial
Institutions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA32D2A52754740DB8B88248E87A94671"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment; purpose</header><text display-inline="yes-display-inline">There is established in the Agency an
office to be known as the <quote>Assistive Division for Community Financial
Institutions</quote> to advise the Director on the impact of Agency policies
and regulations on community financial institutions and to help ensure that the
policies and regulations of the Agency do not unduly burden community financial
institutions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1731200B6E2A4AE3A9885E7A646B955C"><enum>(2)</enum><header display-inline="yes-display-inline">Additional duties</header><text display-inline="yes-display-inline">The Assistive Division for Community
Financial Institutions shall also—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD4242EF1B83B4434B44F02AD5C728652"><enum>(A)</enum><text display-inline="yes-display-inline">provide assistance to and respond to
inquiries from community financial institutions regarding policies of the
Agency and the effects of such policies on community financial
institutions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD445463A30BA493D9D6C0E1075C6505A"><enum>(B)</enum><text display-inline="yes-display-inline">provide educational materials, training
aides, and support to community financial institutions with respect to any new
regulatory obligations the Agency establishes during the initial rule-making
period;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD10A66A6FDDF49FEBAAB863E86C7C617"><enum>(C)</enum><text display-inline="yes-display-inline">establish and maintain a toll-free
telephone number, to be available at least 8 hours a day and 7 days a week, at
which community financial institution may make inquiries and receive assistance
under subparagraph (A); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H39559362EC1B41E99F3B546F3F9195C2"><enum>(D)</enum><text display-inline="yes-display-inline">perform other duties and exercise such
other powers set by the Director.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA2FA653F7DEB4C868C586E3FBE4FA685" section-type="subsequent-section"><enum>4204.</enum><header display-inline="yes-display-inline">Simultaneous and coordinated supervisory
action</header>
<subsection commented="no" display-inline="no-display-inline" id="H19C3E7EF60C04B0994EC7560A655164D"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDA00FFCCBC4A4861A04F2C243B8B99B7"><enum>(1)</enum><text display-inline="yes-display-inline">coordinate the scheduling of examinations
of the insured depository institution, and credit union, or other covered
person;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H7BD2BB8C0E154DEF93589C9877E909DB"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDA7E5F18626347CABDC6D165CD8F675A"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FE9EA50271D4D4F99D6DFDD0CA0C430"><enum>(b)</enum><header display-inline="yes-display-inline">Coordination with State bank
supervisors</header><text display-inline="yes-display-inline">The Agency shall
pursue arrangements and agreements with State bank supervisors to coordinate
examinations consistent with subsection (a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H747B5F04033341C7A9B96ADB393976B8"><enum>(c)</enum><header display-inline="yes-display-inline">Resolution of conflict in
supervision</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA8D28A13DE8240FCA7A80966D492F1A8"><enum>(1)</enum><header display-inline="yes-display-inline">Request of depository institution</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBE808E105D624D2CAAA350148B02C213"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H38BF0834A37F4389B1787CE0D5C2D2A3"><enum>(B)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA493623F1EF248618374711CD98A2522"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37BA8B3196E74744AF60A43A856A0722"><enum>(d)</enum><header display-inline="yes-display-inline">Appeals to governing panel</header>
<paragraph commented="no" display-inline="no-display-inline" id="H13C84DEA773C434D82293E4A7EEA17A2"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23D2AAF556BF4B77B3DDC8E40493C004"><enum>(2)</enum><header display-inline="yes-display-inline">Timetable</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A85C5303C7544568E44C0B43A45021F"><enum>(e)</enum><header display-inline="yes-display-inline">Composition of governing
panel</header><text display-inline="yes-display-inline">The governing panel for
an appeal under this section shall be composed of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE5590596D0A34CE69829E9A1BD2F4095"><enum>(1)</enum><text display-inline="yes-display-inline">2 individuals—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD46B2E16AAB84935AAEA53BF913625EB"><enum>(A)</enum><text display-inline="yes-display-inline">1 of whom is a representative from the
Agency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H596B70A4FFCE4F0A93321214AC18E2BA"><enum>(B)</enum><text display-inline="yes-display-inline">1 of whom is a representative of the
Federal banking agency which received the request to which the appeal relates;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62C6D14CA32746748FFB76F679B93C5A"><enum>(C)</enum><text display-inline="yes-display-inline">neither of whom—</text>
<clause commented="no" display-inline="no-display-inline" id="H5A7C6DFD02964A46B965B16B86C67303"><enum>(i)</enum><text display-inline="yes-display-inline">have participated in the material
supervisory determinations under appeal; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H40E355D66A6C4131A1C5C140256E486D"><enum>(2)</enum><text display-inline="yes-display-inline">1 individual who is a representative
from—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H16B966CBC4B542B0A7C8D61230B85CAB"><enum>(A)</enum><text display-inline="yes-display-inline">the Federal banking agency that heads the
Financial Institution Examination Council; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H8A2747AD51384577B5005CA5AFE31F1A"><enum>(f)</enum><header display-inline="yes-display-inline">Conduct of appeal</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA545890D96964C52B2E46E29F2B33AB5"><enum>(1)</enum><header display-inline="yes-display-inline">Content of filing appeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4AD77414C7694724BC2B80951AF45F2A"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC89667E1E2FF4019A3049ACE4AD74580"><enum>(3)</enum><header display-inline="yes-display-inline">Requests for additional
information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H37765AB657334EFFAB700D8F3B36E856"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2557A4C61F4B4821B8D657E8605440F0"><enum>(5)</enum><header display-inline="yes-display-inline">Public information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0D47BCCFF8B240D6960510385E396EF7"><enum>(g)</enum><header display-inline="yes-display-inline">Prohibition against
retaliation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA52E92E61F834013BE5A848766DD560D"><enum>(h)</enum><header display-inline="yes-display-inline">Material supervisory determination
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <quote>material supervisory determination</quote>—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H77F9D16434A240498EF9EC5ED2B4783F"><enum>(1)</enum><text display-inline="yes-display-inline">includes any action relating to any
supervision or examinations; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC11DDE3D22994535B14088F5202E1375"><enum>(2)</enum><text display-inline="yes-display-inline">does not include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEE04A0EF2FE949B38D99DA10D48C6FDF"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1A0BE4637B394E2CB14EB50CE7ECBEC1" section-type="subsequent-section"><enum>4205.</enum><header display-inline="yes-display-inline">Limitations on authority of agency and
director</header>
<subsection commented="no" display-inline="no-display-inline" id="HD547E7C6D9B0471D97B81CD326498C43"><enum>(a)</enum><header display-inline="yes-display-inline">Exclusion for merchants, retailers, and
sellers of nonfinancial services</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9F455246A80D4B26B8A72D5FA70F62BC"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD3DBE2551BF4443D92F82E560703080E"><enum>(A)</enum><text display-inline="yes-display-inline">credit extended directly by a merchant,
retailer, or seller of nonfinancial goods or 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 such goods or services directly from the merchant, retailer, or seller
of nonfinancial services; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA5EBA449DD7C43038C5DCF3986850DCD"><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><continuation-text commented="no" continuation-text-level="paragraph">In the application of this paragraph,
the extension of credit and the collection of debt described in subparagraphs
(A) and (B), respectively, shall not be considered a consumer financial product
or service.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE419B21DB6741A7820366F05020491E"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for existing
authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9AC61E5579654378B5EE7DBAD9049850"><enum>(3)</enum><header display-inline="yes-display-inline">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 agency other than the Agency with respect to credit
extended, or the collection of debt arising from such extension, directly by a
merchant or retailer to a consumer exclusively for the purpose of enabling that
consumer to purchase goods or services directly from the merchant or
retailer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B2E70890E7841EEB5105C29DB829E5A"><enum>(4)</enum><header display-inline="yes-display-inline">Exclusion not applicable to certain credit
transactions</header><text display-inline="yes-display-inline">Paragraph (1)
shall not apply to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC9B637C9396B40358266099E49E3EC9F"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB9B07CF2BF2C43E4805B25169F734766"><enum>(B)</enum><text display-inline="yes-display-inline">any credit transaction—</text>
<clause commented="no" display-inline="no-display-inline" id="HD7D3772EE8DF4EB79D872D47291AB4EB"><enum>(i)</enum><text display-inline="yes-display-inline">in which the credit provided significantly
exceeds the market value of the product or service provided; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE5AC77173EEA449B895ADF1253CC6911"><enum>(ii)</enum><text display-inline="yes-display-inline">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; or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EAD3BC723794C9B8EBC5378AB22F368"><enum>(C)</enum><text display-inline="yes-display-inline">any credit transaction involving a person
who operates a line of business that involves the extension of retail credit or
retail leases involving motor vehicles, if—</text>
<clause commented="no" display-inline="no-display-inline" id="HE019D8BD703A47D19235A63245E01A68"><enum>(i)</enum><text display-inline="yes-display-inline">the extension of retail credit or retail
leases is provided directly to consumers; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HABEEC48718CA4AF19A9443DE34098A79"><enum>(ii)</enum><text display-inline="yes-display-inline">the contracts governing such extension of
retail credit or retail leases are not assigned to a third party finance or
leasing source, except on a de minimis basis.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC02DE3055BC498794C71689740B00C5"><enum>(b)</enum><header display-inline="yes-display-inline">Exclusion for persons regulated by the
securities and exchange commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0B5DA69A036F4B9A860C55761AB321D7"><enum>(1)</enum><header display-inline="yes-display-inline">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 rulemaking, supervisory, enforcement or other authority,
including the authority to order assessments, under 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 commented="no" display-inline="no-display-inline" id="H9B68436B8B7B44C39F6E524CBA8E9F03"><enum>(2)</enum><header display-inline="yes-display-inline">Consultation and coordination</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H002B2A7B3F45407AA8E0AA68D297AABE"><enum>(c)</enum><header display-inline="yes-display-inline">Exclusion for persons regulated by the
commodity futures trading commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBAE4AB21AE1240CFA73BF8EE417CCDCB"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCF4D7C4663114AE8AD03F992ED937A33"><enum>(2)</enum><header display-inline="yes-display-inline">Consultation and coordination</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD12207AEAD214662AE4FBB0931A87EFD"><enum>(d)</enum><header display-inline="yes-display-inline">Persons regulated by a State securities
commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE0E31895FA1B4F49880BE54B9E23C658"><enum>(1)</enum><header display-inline="yes-display-inline">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 securities
commission (or any agency or office performing like functions) of any State to
adopt rules, initiate enforcement proceedings, or take any other action with
respect to a person regulated by any securities commission (or any agency or
office performing like functions) of any State. Except as permitted in
paragraph (2) and subsection (m), the Director and the Agency shall have no
authority to exercise any power to enforce this title with respect to a person
regulated by any securities commission (or any agency or office performing like
functions) of any State, but only to the extent that the person acts in such
regulated capacity.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC16C036F43DF4409A40B189C6C2FB562"><enum>(2)</enum><header display-inline="yes-display-inline">Description of activities</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to any person
to the extent such person is engaged in any financial activity described in any
subparagraph of section 101(19) or is otherwise subject to any enumerated
consumer law or any law or authority transferred under subtitle F or H.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF4A39981A3EB4EB0B2A2DF84DED0C8AE"><enum>(e)</enum><header display-inline="yes-display-inline">Exclusion for persons regulated by a State
insurance regulator</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF26DA0A9A74348E1AEB87EC7F2E249C5"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52F404A4BFA64F4FBBAB1FB34DFEEA46"><enum>(2)</enum><header display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="H5EA04A25180E45349C623442512AF311"><enum>(3)</enum><header display-inline="yes-display-inline">Preservation of certain
authorities</header><text display-inline="yes-display-inline">No provision of
this title shall be construed as limiting the authority of the Director and the
Agency from exercising powers under this Act with respect to a person, other
than a person regulated by a State insurance regulator, who provides a product
or service for or on behalf of a person regulated by a State insurance
regulator in connection with a financial activity.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA28AD330F8234743B3FA68A942FF0E38"><enum>(f)</enum><header display-inline="yes-display-inline">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 Finance 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 commented="no" display-inline="no-display-inline" id="HB9F42AAD2A074A7F8FE361C5BCDD227B"><enum>(g)</enum><header display-inline="yes-display-inline">Exclusion for Persons Regulated by the Farm
Credit Administration</header><text display-inline="yes-display-inline">No
provision of this title shall be constructed as altering, amending, or
affecting the authority of the Farm Credit Administration to adopt rules,
institute enforcement proceedings, or take any other action with respect to a
person regulated by the Farm Credit Administration. The Director and Agency
shall have no authority to exercise any power to enforce this title, compel
registration, or to order assessments with respect to a person regulated by the
Farm Credit Administration. For purposes of this subsection, the term
<quote>person regulated by the Farm Credit Administration</quote> means any
Farm Credit System Institution.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF8F7B077E67F418A8A9567657152D5FD"><enum>(h)</enum><header display-inline="yes-display-inline">Employee benefit and compensation plans and
certain other arrangements under the Internal Revenue Code of 1986</header>
<paragraph commented="no" display-inline="no-display-inline" id="HECB68D7660A543909B10292E622EC0AE"><enum>(1)</enum><header display-inline="yes-display-inline">Authority retained by other
agencies</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 any specified plan or arrangement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72643A39CBD24389A58AC625EF105A9A"><enum>(2)</enum><header display-inline="yes-display-inline">Activities not constituting financial
activities</header><text display-inline="yes-display-inline">For the purposes
of this title, a person shall not be treated as having engaged in a financial
activity, as defined in section 4002(19), solely because such person is a
specified plan or arrangement or is engaged in the activity of establishing or
maintaining, for the benefit of employees of such person (or for members of an
employee organization), any specified plan or arrangement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF79A00ACB2D46C1813FAD2C0229CD90"><enum>(3)</enum><header display-inline="yes-display-inline">Regulatory coordination</header><text display-inline="yes-display-inline">In the case of regulations promulgated
under this title that address any financial activity specifically pertaining to
the administration and maintenance of a specified plan or arrangement, the
Director shall coordinate with the Secretary of Labor and the Secretary of
Treasury, as appropriate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA42DED7691BC44A1AF2101497E94ED3C"><enum>(4)</enum><header display-inline="yes-display-inline">Specified plan or arrangement</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>specified plan or arrangement</quote> means any plan, account, or
arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A,
529, or 530 of the Internal Revenue Code of 1986, or any employee benefit or
compensation plan or arrangement, including a plan that is subject to title I
of the Employee Retirement Income Security Act of 1974.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7F382C4C67494B479B73D617D396A10F"><enum>(i)</enum><header display-inline="yes-display-inline">Exclusion for accountants and tax
preparers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA10FF6F90C5A4B5B992B221A85F9B56A"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H74B69C0A045F4576A674A9B8730AAEA9"><enum>(B)</enum><text display-inline="yes-display-inline">any person other than a person described in
subparagraph (A) that performs income tax preparation activities for
consumers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2FA43E88B3B442DBAAD9E87FB1D58F6"><enum>(2)</enum><header display-inline="yes-display-inline">Certain activities not excluded</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1475D3EB4EB148F0A75323CFE159344B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In no event shall paragraph (1) apply to
any activity which involves the sale of securities or extension of credit which
is provided by a person described in paragraph (1)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF7977993923640E2AFA29065A05C9D51"><enum>(B)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term
<quote>extension of credit</quote> shall not include an ordinary account
receivable.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6232997FCFA148968F68DC1E3A85DE1D"><enum>(3)</enum><header display-inline="yes-display-inline">Description of activities</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3251ECF3F43B4A3CA361523B09C3ED76"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H170DCF38B3D7482DABD96CCE489E5FC8"><enum>(B)</enum><text display-inline="yes-display-inline">any person described in paragraph (1)(B) 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 commented="no" display-inline="no-display-inline" id="H7EEDD992B0894AE0B9309A390F1ECC3B"><enum>(C)</enum><text display-inline="yes-display-inline">any person described in paragraph (1)(A) or
(1)(B) 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 commented="no" display-inline="no-display-inline" id="H7CB5465E80E146F8B3C45A26FED1BDBB"><enum>(j)</enum><header display-inline="yes-display-inline">Exclusion for real estate
licensees</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3C4D37EED23D4CDAB24AE3AA9CE7AC17"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H532CC2D5029345C7A0018FDDEC3C4435"><enum>(A)</enum><text display-inline="yes-display-inline">acts as a real estate agent or broker for a
buyer, seller, lessor, or lessee of real property;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H26A06B5DC2534B4F8A461A5D09AECD6B"><enum>(B)</enum><text display-inline="yes-display-inline">brings together parties interested in the
sale, purchase, lease, rental, or exchange of real property;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FE8BF28F7EA4EB1AB4FB8BC255753E9"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H409A449C819B4EE78722B66627434C14"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDB4593F029D4EFD86D766618D7ACB52"><enum>(E)</enum><text display-inline="yes-display-inline">offers to engage in any activity, or act in
any capacity, described in subparagraph (A), (B), (C), or (D).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9710312D9AB144FE9AE28A96DC67DDAD"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC5BF63E45C3549CAA7C8DCF46C4DC48B"><enum>(k)</enum><header display-inline="yes-display-inline">Exclusion for auto dealers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H37E52E1D1044419AA20F1FF51428B338"><enum>(1)</enum><header display-inline="yes-display-inline">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 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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC26AB44CC02E4393BB07927CD13409E6"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C0C609BA3FD4F0DA4A762ED375F71E4"><enum>(A)</enum><text display-inline="yes-display-inline">provides consumers with any services
related to residential mortgages; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC5857F62970D48C9A99549E94E5C25DA"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA6DF297860E4D2081C5018C22FC99E7"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D5BFC33731A4712A9DBF1E3442072A6"><enum>(5)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB15009CC7574C32A395D7F396E9C306"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0FC48EB287840CDBAE76BD34A04CBEB"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD6DB6346FCC24ADF84AF3A7429F8CFA6"><enum>(l)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H056E70F7129E421C9F6EE68CC2FCBDFA"><enum>(m)</enum><header display-inline="yes-display-inline">Exclusion for manufactured home retailers
and modular home retailers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H23BE29DD3BFD40C7BCA54929049B7E31"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H889E6126FD7347589A323F61F9C18C48"><enum>(B)</enum><text display-inline="yes-display-inline">facilitates the purchase by a consumer of a
manufactured home or modular home, by negotiating the purchase price or terms
of the sales contract (other than providing financing with respect to such
transaction); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3665691C991440C2935CD3035EEB7A4E"><enum>(C)</enum><text display-inline="yes-display-inline">offers to engage in any activity described
in subparagraph (A) or (B).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H960F479D0FBA4EF4A7F05A64AD9B8B28"><enum>(2)</enum><header display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HFEADA82CB1EC42759CD8D3C10D322291"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDB18DA97D32F46E4A4F331E458D8AF29"><enum>(A)</enum><header display-inline="yes-display-inline">Manufactured home</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB2D2F9803475452794DC8AB24CB32D4E"><enum>(B)</enum><header display-inline="yes-display-inline">Modular home</header><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H0A0B724538DB4F0FA7C2489630F4EE8A"><enum>(n)</enum><header display-inline="yes-display-inline">Exclusion for practice of law</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC4D0AB1651074EF5B7A2872E2BF89C28"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided under paragraph (2),
nothing in this title shall apply with respect to an activity engaged in by an
attorney, or engaged in under the direction of an attorney, as part of the
practice of law under the laws of a State in which the attorney is licensed to
practice law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9C65795FE503493CBFC252E3E5C9A253"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD5B14F35C7814BF28B9E189FE58EEE21"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) shall not be construed to
limit the exercise by the Director and the Agency of any rulemaking,
supervisory, enforcement, or other authority, including authority to order
assessments, regarding any activity that is a financial activity described in
any subparagraph of section 4002(19) and is not engaged in as—</text>
<clause commented="no" display-inline="no-display-inline" id="H700B03ABA17D488F9F1E029CBBF2A5EA"><enum>(i)</enum><text display-inline="yes-display-inline">part of the practice of law; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H95884CBDCC90449CAB1F191371A4E401"><enum>(ii)</enum><text display-inline="yes-display-inline">incidental to the practice of law, to the
extent that such activity is provided exclusively within the scope of the
attorney-client relationship and is not otherwise provided by or under the
direction of the attorney to any consumer who is not receiving legal advice or
services from the attorney in connection with such activity.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD955120508F4D5483DDE24ED0F82D62"><enum>(B)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-display-inline">Paragraph (1) shall not be construed to
limit the authority of the Director and the Agency with respect to any activity
to the extent that such activity is otherwise subject to any of the enumerated
consumer laws or the authorities transferred under subtitle F or H.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28FF3F573BD248F9B76774C7ACDC1B97"><enum>(3)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), an
individual who provides legal advice or services related to preventing a
foreclosure shall be subject to this title unless such individual provides
foreclosure prevention services in connection with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H423A6E91F94E4E63A78C82268B900A9B"><enum>(A)</enum><text display-inline="yes-display-inline">the preparation and filing of a bankruptcy
petition; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA146A738DB024971A8FEA8DDFA7F6EAC"><enum>(B)</enum><text display-inline="yes-display-inline">court proceedings to avoid a
foreclosure.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDD3CF2A4DA924767A14A2A07AFC7B6B7"><enum>(o)</enum><header display-inline="yes-display-inline">Exclusion for pawnbrokers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD9B8BC1EC37C43389F0EE47200188422"><enum>(1)</enum><header display-inline="yes-display-inline">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, under this title with respect to any
pawnbroker licensed by a State or political subdivision thereof, a territory of
the United States, or the District of Columbia, but only to the extent that
such person acts in such capacity and provides either—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAFD7ADF597D446A092FEB26F7E98FE76"><enum>(A)</enum><text display-inline="yes-display-inline">non-recourse credit secured by a possessory
security interest in tangible goods physically delivered by the consumer to the
pawnbroker for which the consumer does not provide a written or electronic
promise, order or authorization to pay, or in any other manner authorize a
debit of a deposit account, prior to or contemporaneously with the disbursement
of the original proceeds; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EEEF61F95034FCEB81841E66F2E74C8"><enum>(B)</enum><text display-inline="yes-display-inline">credit or any other financial activity
issued directly by a pawnbroker 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 pawnbroker.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF676DFB300724B88BBB2097405F37FD8"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBCDED4D108E14BC68B0643B278D6B991"><enum>(A)</enum><header display-inline="yes-display-inline">FTC authority preserved</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), no
provision of this title shall be construed as modifying, limiting, or
superseding the authority of the Federal Trade Commission with respect to the
activities described under paragraph (1).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E328B8BD80E4B7DB825A5E61A283217"><enum>(B)</enum><header display-inline="yes-display-inline">Exercise of rulemaking
authority</header><text display-inline="yes-display-inline">The Director may
exercise any rulemaking authority regarding the activities described in
paragraph (1) only as may be authorized by the enumerated consumer laws or any
law or authority transferred under subtitle F or H.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21931A6247614E0EAAC4FF428FA24068"><enum>(p)</enum><header display-inline="yes-display-inline">Exclusion for certain consumer reporting
agencies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7FE72A1F7E154126A93AE2DA649A73DC"><enum>(1)</enum><header display-inline="yes-display-inline">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 a consumer reporting agency, as such term is defined in
section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)), but only
to the extent that such consumer reporting agency furnishes a consumer report
to another person that it has reason to believe intends to use the information
for employment purposes, including for security investigations, government
licensing and evaluating a consumer’s residential or tenant history.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5FFE230382E84A3E9A08059871C2A6F5"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H07FC6E6B81814BA49D42287135575DB4"><enum>(q)</enum><header display-inline="yes-display-inline">Limited authority of the Agency to obtain
information</header><text display-inline="yes-display-inline">Notwithstanding
subsections (a), (f), (g), (h), (i), and (k), the Director may request or
require information from any person subject to or described in any such
subsection in order to carry out the responsibilities and functions of the
Agency and in accordance with section 4206, 4501, or 4502.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAAD07B197D444D2893553DFB94626EF4"><enum>(r)</enum><header display-inline="yes-display-inline">Exclusion for Activities Relating to
Charitable Contributions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H99524A3BFF3846F1A693A7AFD5BD964B"><enum>(1)</enum><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 or penalties, over any activities
related to the solicitation or making of voluntary contributions to or through
a tax-exempt organization as recognized by the Internal Revenue Service, by any
agent, volunteer or representative of such organizations to the extent the
organization, agent, volunteer or representative thereof is soliciting or
providing advice, information, education or instruction to donor(s) or
potential donor(s) relating to a contribution to or through the
organization.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50924EC411624C5188F2A5E12A49C381"><enum>(2)</enum><text display-inline="yes-display-inline">This exclusion shall not apply to other
activities not described in the paragraph above and are financial activities as
described in any subparagraph of section 4002(19), or otherwise subject to any
of the enumerated consumer laws, or the authorities transferred under subtitle
F or H.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA953C7660E7B4FA2962DDD0423E50C8D" section-type="subsequent-section"><enum>4206.</enum><header display-inline="yes-display-inline">Collection of information; confidentiality
regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="HF0206F9F4C9F4AA1B7F751C6B37B0644"><enum>(a)</enum><header display-inline="yes-display-inline">Collection of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="H82E84AB5F37D491AB9BC34ED63C0ED61"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB2A84EC4532042EF9E9B2453763ABAED"><enum>(2)</enum><header display-inline="yes-display-inline">Specific authority</header><text display-inline="yes-display-inline">In order to gather such information, the
Director shall have the power—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD208FF0BB006455C87F2FD4FFE420CAE"><enum>(A)</enum><text display-inline="yes-display-inline">to gather and compile information;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2A04C990AB114ED5BBBB0397EBD6667E"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4005913CA3BC48A9B7DDA3BC5EBC386F"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26DE66B3617F49B682363D27FAD928A7"><enum>(b)</enum><header display-inline="yes-display-inline">Confidentiality regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H139C39C117314F4C9693E33F611515EB"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93A0AB709048461FA42BA4BD3B6DE59A" section-type="subsequent-section"><enum>4207.</enum><header display-inline="yes-display-inline">Monitoring; assessments of significant
regulations; reports</header>
<subsection commented="no" display-inline="no-display-inline" id="HEE2DF4A64353442392EE9B30B9393BDD"><enum>(a)</enum><header display-inline="yes-display-inline">Monitoring</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB7F460D5E34747608D804727528AB02E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEEBCA4DB2BAA47EBBEB6EFA69463A07D"><enum>(2)</enum><header display-inline="yes-display-inline">Means of monitoring</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7A2378945B4F4A858D2370BF88208170"><enum>(3)</enum><header display-inline="yes-display-inline">Considerations</header><text display-inline="yes-display-inline">In allocating the resources of the Agency
to perform the monitoring required by this section, the Director may consider,
among other factors—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H638EED0DF6CB413689F4110DA6EC90B0"><enum>(A)</enum><text display-inline="yes-display-inline">likely risks and costs to consumers
associated with buying or using a type of consumer financial product or
service;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H010F8A7F75974600B60E13DF4E751A21"><enum>(B)</enum><text display-inline="yes-display-inline">consumers’ understanding of the risks of a
type of consumer financial product or service;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H56995B9502134A429B054FEBD06C07D0"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46B506255D6B4C75AF4263C4FF625B79"><enum>(D)</enum><text display-inline="yes-display-inline">rates of growth in the provision of a
consumer financial product or service;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1FE61F5294348A7B4D867A8337F6BC2"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H206708F6BD3B44C498959643484F9C68"><enum>(F)</enum><text display-inline="yes-display-inline">types, number, and other pertinent
characteristics of covered persons that provide the product or service.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H765EC330631E4360A5265D36AA4D151B"><enum>(4)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF90FFDD08D654DE9BA85CBB3A94A3989"><enum>(b)</enum><header display-inline="yes-display-inline">Assessment of significant
regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEB7CFE4674E7449586CA57240FDB7125"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H38D3F2A267664592A99DD41492ABB928"><enum>(2)</enum><header display-inline="yes-display-inline">Basis for assessment</header><text display-inline="yes-display-inline">The assessment shall reflect available
evidence and any data that the Agency reasonably may collect.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB717D495C6F4458A056E735D18354BB"><enum>(3)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H59FC9290D4164CACAF928F4A7931A316"><enum>(4)</enum><header display-inline="yes-display-inline">Public comment 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 commented="no" display-inline="no-display-inline" id="H1C5909773B474F8E9E5E7A1745329D61"><enum>(c)</enum><header display-inline="yes-display-inline">Information gathering</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C68A188BF814971B3B8D6BE563DA6D8" section-type="subsequent-section"><enum>4208.</enum><header display-inline="yes-display-inline">Authority to restrict mandatory predispute
arbitration</header>
<subsection commented="no" display-inline="no-display-inline" id="H482029A3723841AD9ECC259F6C152945"><enum>(a)</enum><header display-inline="yes-display-inline">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.
This authority shall not prohibit or restrict a consumer from entering into a
voluntary arbitration agreement with a covered person after a dispute has
arisen.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBD28AB23894A4ABDA3F2AFB3D716939B"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H79F1B46AD232493D96D5E9E0C82EAE0E" section-type="subsequent-section"><enum>4209.</enum><header display-inline="yes-display-inline">Registration and supervision of
nondepository covered persons</header>
<subsection commented="no" display-inline="no-display-inline" id="H04EB5B0CD94645D99D4C5D2FBBE3A5A2"><enum>(a)</enum><header display-inline="yes-display-inline">Risk-based programs</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5EBB110CA0734860825FA963092DD89E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1E02B28FCDB146B2B35236A5F7A9674D"><enum>(2)</enum><header display-inline="yes-display-inline">Basis for programs</header><text display-inline="yes-display-inline">The risk-based supervisory programs
established pursuant to paragraph (1) shall be based on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E93F3832FC1415C8D3D9703DCE01D9D"><enum>(A)</enum><text display-inline="yes-display-inline">relevant registration and reporting
information about such covered persons, as determined by the Agency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H89EC48479C3845E4BE09F4206CCE2835"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H31D7773DBFF04B79A7AAE0E3C05C706A"><enum>(b)</enum><header display-inline="yes-display-inline">Registration</header>
<paragraph commented="no" display-inline="no-display-inline" id="H240CC24608344879BCCD8B9BE30A7064"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director shall prescribe regulations
regarding registration requirements for covered persons that are not credit
unions or depository institutions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD998AF333C574C87B2801C8A7146E319"><enum>(2)</enum><header display-inline="yes-display-inline">Consultation with state
agencies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBA3B712756454311AF6B5D4FABBB3784"><enum>(3)</enum><header display-inline="yes-display-inline">Exception for related persons</header><text display-inline="yes-display-inline">The Agency shall not impose requirements
regarding the registration of a related person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C71B7CAC15F4CAB80E0DA62C9FC09EE"><enum>(4)</enum><header display-inline="yes-display-inline">Registration information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD5A771B95F5D4C80BFACD1D38BDE0806"><enum>(c)</enum><header display-inline="yes-display-inline">Reporting requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5E4C264F49014E4BA0B40B2350EF5C37"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91C028CD28EC4CFAAC556FBE69C3655D"><enum>(2)</enum><header display-inline="yes-display-inline">Consistency of reporting requirements and
risk-based standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFBA8763F2B724C84AFD356E9733CE69F"><enum>(3)</enum><header display-inline="yes-display-inline">Contents of reports</header><text display-inline="yes-display-inline">Reporting requirements imposed under this
paragraph may include information regarding—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H475FB2BEA1C0406A898797FD8F61CF76"><enum>(A)</enum><text display-inline="yes-display-inline">the nature of the covered person’s
business;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1C887D8EC7B74E849504ED7A8322E1F1"><enum>(B)</enum><text display-inline="yes-display-inline">the covered person’s name, legal form,
ownership and management structure, and related persons;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD95704607324BE0872E2E681CDEA1A2"><enum>(C)</enum><text display-inline="yes-display-inline">the covered person’s locations of
operation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB17147673A1A4509B3552CBA75A0A29E"><enum>(D)</enum><text display-inline="yes-display-inline">the covered person’s types and number of
consumer financial products and services provided by the covered person;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H934EFCBA915C46D6AAC34EF21D613E63"><enum>(E)</enum><text display-inline="yes-display-inline">compliance with any requirement imposed or
enforced by the Agency, including any requirement relating to registration,
licensing, fees, or assessments; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E847E6969034896A4FBA69F3E6646F2"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0178FAEA95704D85996F905A38BB1CBE"><enum>(4)</enum><header display-inline="yes-display-inline">Consultation with the Federal Trade
Commission</header><text display-inline="yes-display-inline">In developing and
implementing report requirements under this subsection, the Agency shall
consult with the Federal Trade Commission, where appropriate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9EA50C37A95743AA8EBBBBF84A9C72E1"><enum>(5)</enum><header display-inline="yes-display-inline"> 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 commented="no" display-inline="no-display-inline" id="H315D64A7DCAC4492B7738857F48A69E1"><enum>(d)</enum><header display-inline="yes-display-inline">Examinations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0A01FF9F3C3C4CD7839B1492823DD511"><enum>(1)</enum><header display-inline="yes-display-inline">Examinations required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H76387CDF8CB9490981ABE4BB814500D7"><enum>(2)</enum><header display-inline="yes-display-inline">Examination standards and
procedures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H13C052E4C2A444928F2CC5C24B6CA729"><enum>(e)</enum><header display-inline="yes-display-inline">Authority to collect information regarding
fees or assessments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA0237B669C54D23A814F40FC7D94BD3" section-type="subsequent-section"><enum>4210.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section></subtitle><subtitle commented="no" id="HE8CCA56E4E0C4B02965E2AC3F966FB8B" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Specific Authorities</header>
<section commented="no" display-inline="no-display-inline" id="HC6E51433B7AA4A7F84AAE993C7917DF9" section-type="subsequent-section"><enum>4301.</enum><header display-inline="yes-display-inline">Prohibiting unfair, deceptive, or abusive
acts or practices</header>
<subsection commented="no" display-inline="no-display-inline" id="HD55DBDD5287E459FAF262D101DB56E0F"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H13F79CA6B896430C82F79805749F9CA0"><enum>(b)</enum><header display-inline="yes-display-inline">Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7741C3A77051483792027F445E60B822"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0BBBAB212E144A9D9278F50436297DBF"><enum>(2)</enum><header display-inline="yes-display-inline">Includes prevention measures</header><text display-inline="yes-display-inline">Regulations prescribed under this section
may include requirements for the purpose of preventing such acts or
practices.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H78C02ECA149A475190A3C1092D5EF191"><enum>(c)</enum><header display-inline="yes-display-inline">Unfair, deceptive, or abusive acts or
practices defined</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA05351D870954C6D81F958AF8D574B13"><enum>(1)</enum><header display-inline="yes-display-inline">Unfair acts or practices</header><text display-inline="yes-display-inline">Any determination by the Director and the
Agency that an act or practice is unfair shall be consistent with the standard
set forth under section 5 of the Federal Trade Commission Act and with the
policy statement adopted by the Federal Trade Commission pursuant to section 5
of the Federal Trade Commission Act and dated December 17, 1980.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C88FE9D4B0A452B91B7AE8C7A8A1E6F"><enum>(2)</enum><header display-inline="yes-display-inline">Deceptive acts or practices</header><text display-inline="yes-display-inline">Any determination by the Director and the
Agency that an act or practice is deceptive shall be consistent with the policy
statement adopted by the Federal Trade Commission pursuant to section 5 of the
Federal Trade Commission Act and dated October 14, 1983.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H771045C51DFA42B19B5F4D326513CCEF"><enum>(3)</enum><header display-inline="yes-display-inline">Abusive acts or practices</header><text display-inline="yes-display-inline">The Director and the Agency may determine
that an act or practice is abusive only if the Director finds that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBBC4440ED1B2400984FDA484395371C2"><enum>(A)</enum><text display-inline="yes-display-inline">the act or practice is reasonably likely to
result in a consumer’s inability to understand the terms and conditions of a
financial product or service or to protect their own interests in selecting or
using a financial product or service; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H65F67B3482664AA9A2C09F492CAF4883"><enum>(B)</enum><text display-inline="yes-display-inline">the widespread use of the act or practice
is reasonably likely to contribute to instability and greater risk in the
financial system.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59CA1B8636E14D24B448E1C4D8395A5F"><enum>(4)</enum><header display-inline="yes-display-inline">Consider as unfair certain practices with
regard to the provision of credit scores</header><text display-inline="yes-display-inline">Subject to regulations prescribed by the
Director, it shall be considered unfair for any consumer reporting agency that
compiles and maintains files on consumers on a nationwide basis (as defined in
section 603(p) of the Fair Credit Reporting Act; 15 U.S.C. 1681a(p)) to make
available for purchase by creditors any credit score for a consumer that is not
also available for purchase by that consumer at the same price as other credit
scores sold to consumers by such agency.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE9B3F42953F04AE585A026BBAF86ACEC"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47A78830AA1940F6823D221A4E3A50FA" section-type="subsequent-section"><enum>4302.</enum><header display-inline="yes-display-inline">Disclosures</header>
<subsection commented="no" display-inline="no-display-inline" id="HD7F7E5A3484142D49358B21DE61A3E60"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H789CE68DA8854D57907ECFAE83F8B9D0"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4127DE19FA8C407F9DED47DAE6535CB4"><enum>(c)</enum><header display-inline="yes-display-inline">Compliance</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBC45AE664016408B961E497C55659D63"><enum>(1)</enum><header display-inline="yes-display-inline">Model disclosures</header><text display-inline="yes-display-inline">The Agency may provide model disclosures to
facilitate compliance with the requirements of regulations prescribed under
this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H981FDBBE218A409F967172D254F71D39"><enum>(2)</enum><header display-inline="yes-display-inline">Per se compliance</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2EF63E813E4B4FB0A50A90672651EEE1"><enum>(3)</enum><header display-inline="yes-display-inline">Additional guidance</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H425EEE4279B74394870BD51909E04965"><enum>(d)</enum><header display-inline="yes-display-inline">Combined mortgage loan
disclosure</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6278EAFB8603487A9113B41BD3A37D23" section-type="subsequent-section"><enum>4303.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA6F224F746949D7BE3EBBE10829AF65" section-type="subsequent-section"><enum>4304.</enum><header display-inline="yes-display-inline">Pilot disclosures</header>
<subsection commented="no" display-inline="no-display-inline" id="H2F29F313D45848E6A79C559AF3B736BF"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H23E884B9AF9644AABBDF3B7D634A71CA"><enum>(b)</enum><header display-inline="yes-display-inline">Standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H64A493255AA044F882A9F7EB179AF6EF"><enum>(c)</enum><header display-inline="yes-display-inline">Transparency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0C81627392B49B0847F32D45FC462FB" section-type="subsequent-section"><enum>4305.</enum><header display-inline="yes-display-inline">Adopting operational standards to deter
unfair, deceptive, or abusive practices</header>
<subsection commented="no" display-inline="no-display-inline" id="H0F233CF80F614E8ABE83206C4ABA4C39"><enum>(a)</enum><header display-inline="yes-display-inline">Authority To prescribe
standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52A40D27C6D04EA097DFB6D3B43A35DE"><enum>(1)</enum><text display-inline="yes-display-inline">background checks for principals, officers,
directors, or key personnel;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC3359F73C784421BABCA15FCC5E233A"><enum>(2)</enum><text display-inline="yes-display-inline">registration, licensing, or
certification;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H76B9EAE19C83435C980080DEB7EB1E86"><enum>(3)</enum><text display-inline="yes-display-inline">bond or other appropriate financial
requirements to provide reasonable assurance of ability to perform its
obligations to consumers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H88C2CBAB7C8C4B66BD90C254173FE1F3"><enum>(4)</enum><text display-inline="yes-display-inline">creating and maintaining records of
transactions or accounts; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA4EF3CA43AFE487398E5CDCAF8CAC809"><enum>(5)</enum><text display-inline="yes-display-inline">procedures and operations relating to the
provision of, or maintenance of accounts for, consumer financial products or
services.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21F60EED0D274B65B50C82BED29AE92E"><enum>(b)</enum><header display-inline="yes-display-inline">Agency authority to prescribe
standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5AD1F8DA82B4447A9062A54F8F94FEB0"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9BDFABDABDA4A9ABC85F125F1EA1D23"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8DE4E1F80C548D7976FAC3FB7BDA11D"><enum>(3)</enum><header display-inline="yes-display-inline">Enforcement of standards</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40DC4DCC0C434EADAA9DBE0CE08B0D2C"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6F2D49834EA84AA1ACFFF01842AFF3E8" section-type="subsequent-section"><enum>4306.</enum><header display-inline="yes-display-inline">Duties</header>
<subsection commented="no" display-inline="no-display-inline" id="H0FB6883C319C4B7C907ADAE662C05B91"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE6F6FA267BCF45AEB997F9B193AA4384"><enum>(1)</enum><header display-inline="yes-display-inline">Regulations ensuring fair dealing with
consumers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H948B56D04F43405E8569723E81552DFC"><enum>(2)</enum><header display-inline="yes-display-inline">Considerations for duties</header><text display-inline="yes-display-inline">In prescribing such regulations, the
Director shall consider whether—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC548D5516FC841FB9529DC5395074610"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE2F20CBA490F4567AAB0EC9078980456"><enum>(B)</enum><text display-inline="yes-display-inline">the covered person, employee, agent, or
independent contractor provides the consumer with advice with respect to any
aspect of the transaction;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6821BD4E339246F083821F7CA8DA6CBA"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9921564B36984F9B892BA3513C014BBF"><enum>(D)</enum><text display-inline="yes-display-inline">the benefits to consumers of imposing a
particular duty would outweigh the costs; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF916465CF9214F3490D102DB66C4252D"><enum>(E)</enum><text display-inline="yes-display-inline">any other factors as the Director considers
appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D9A54AFEB844406B4FE11D3B52E4782"><enum>(3)</enum><header display-inline="yes-display-inline">Duties relating to compensation
practices</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H669F3B1EB68D4EF0A807F15C044E851A"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEDA6B93029234922A32234170C201CDE"><enum>(B)</enum><header display-inline="yes-display-inline">No compensation caps</header><text display-inline="yes-display-inline">The Director may not prescribe a limit on
the total dollar amount of compensation paid to any person.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF3D9FD82122B41838C006229B8A40A88"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5488404631314DE7ABB321ADE210BEEB"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H043D105AADC842C48F236ABDCE35EF2C"><enum>(b)</enum><header display-inline="yes-display-inline">Administrative proceedings</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9B9E14011B054F2187EA0305596D83BB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H586232FB1519466DB50FA8E7C2336304"><enum>(2)</enum><header display-inline="yes-display-inline">Exclusivity of remedy</header><text display-inline="yes-display-inline">No action may be commenced in any court to
enforce any requirement of a regulation prescribed under this section (other
than by the Agency, or by a State regulator, as may be necessary to enforce an
administrative order 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 commented="no" display-inline="no-display-inline" id="H7044735EE94C4768BECAB3605B4E6134"><enum>(3)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29F2070CCA6C4FFDB18D0E7809A82562"><enum>(c)</enum><header display-inline="yes-display-inline">Exclusions</header><text display-inline="yes-display-inline">This section shall not be construed as
authorizing the Director to prescribe regulations applicable to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2ED918F577A5453F8335FB4CA457C8FD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC93F51EF24FF4CB3BEC063C752F86575"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB3C155D2BF94098B500FA37D76CF71F" section-type="subsequent-section"><enum>4307.</enum><header display-inline="yes-display-inline">Consumer rights to access
information</header>
<subsection commented="no" display-inline="no-display-inline" id="HC604A3D2A5364911AC03CB962A0E8805"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFCCC283808084094BA44B6FB93C542FE"><enum>(b)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">A covered person shall not be required by
this section to make available to the consumer—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H58D60BDC91B64C0F8CF2C657E255177B"><enum>(1)</enum><text display-inline="yes-display-inline">any confidential commercial information,
including an algorithm used to derive credit scores or other risk scores or
predictors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5DAB9B2C83E843DA938F2D3EA34AA744"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H009EDC493D904FF6AA04F457DBF0B612"><enum>(4)</enum><text display-inline="yes-display-inline">any information that the covered person
cannot retrieve in the ordinary course of its business with respect to that
information.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCEF413D2B49449FC9BB14E517BDBF340"><enum>(c)</enum><header display-inline="yes-display-inline">No duty To maintain records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2281A6F90E084904A0FE54F7F4CA0B98"><enum>(d)</enum><header display-inline="yes-display-inline">Standardized formats for data</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H77A9EE4333904C74A883DA623BD4F958"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H65D10BF1376A4689B864ABA4248F0A5F"><enum>(1)</enum><text display-inline="yes-display-inline">impose substantively similar requirements
on covered persons;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8295403F7387446BAC0F361AE026DC20"><enum>(2)</enum><text display-inline="yes-display-inline">take into account conditions under which
covered persons do business both in the United States and in other countries;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H725EFA9C0ECE43FCA644C6553D516681"><enum>(3)</enum><text display-inline="yes-display-inline">do not require or promote the use of any
particular technology in order to develop systems for compliance.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H3DD44069DCF94BD1AC165EECFC86A6A1" section-type="subsequent-section"><enum>4308.</enum><header display-inline="yes-display-inline">Prohibited acts</header><text display-inline="no-display-inline">It shall be unlawful for any person—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HAD8242AD8D3D4A67876F530F0C87E2F7"><enum>(3)</enum><text display-inline="yes-display-inline">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, notwithstanding any other provision of this title, 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><appropriations-major id="LEXA-Repairid6BAF1A2F456B4B2FBF96C65589399959"><subsection id="LEXA-Repairid0266205B28B24FA18D1D9D47C62F8BA0"><enum></enum><continuation-text commented="no" continuation-text-level="subsection">Nothing in this section shall be
construed as limiting or superseding the protection provided to any provider or
user qualifying for protection under section 230(c)(1) of the Communications
Act of 1934 (47 U.S.C. 230(c)(1)).</continuation-text></subsection></appropriations-major><section commented="no" display-inline="no-display-inline" id="H17E329FE157A4B6EBB7D700C673A5966" section-type="subsequent-section"><enum>4309.</enum><header display-inline="yes-display-inline">Treatment of remittance transfers</header>
<subsection commented="no" display-inline="no-display-inline" id="H18034B4EBFBE42A882277DEC16FE8CC6"><enum>(a)</enum><header display-inline="yes-display-inline">Disclosures required for remittance
transfers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3223CB36F4A346A3A02DB65B668FE118"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each remittance transfer provider shall
make disclosures to consumers, as specified by this section and by regulation
prescribed by the Director.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA40E7BB474CD438E9939C59A93EFF8A5"><enum>(2)</enum><header display-inline="yes-display-inline">Specific disclosures</header><text display-inline="yes-display-inline">In addition to any other disclosures
applicable under this title, a remittance transfer provider shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H460E316339B94713A968914969D7719A"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0918CBD62F7546F0B965AD1F63E4B037"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3B7598A39E704522BDFF6794ED39075E"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H012DCFA428EE43E8BE4E05B2AC13B19F"><enum>(iii)</enum><text display-inline="yes-display-inline">the fee charged by the remittance transfer
provider for the remittance transfer;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H73A116D4A6EF468790E14999039986AA"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6ED834DF57BF40D985898F1EF7EDA3DC"><enum>(v)</enum><text display-inline="yes-display-inline">the amount of time for which the
information specified in this subparagraph (A) will be in effect;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB9CCD3477CCA42C1A676A6FC625C91F3"><enum>(vi)</enum><text display-inline="yes-display-inline">the expected time interval within which the
funds being transferred will be made available to the recipient; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H29C409E603804F54B635269219FF61F5"><enum>(vii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H45C13B62EB4747A6AF1B564D57B5FA48"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8C325F585AD342D7BB3A27503109AADE"><enum>(i)</enum><text display-inline="yes-display-inline">the information described in subparagraph
(A);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD2775F90530D489A9E1CAA290A30872A"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5DD74FA48614BEDAE018F49AF259671"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE32D5A7A24EA4E8090540C2A8F2D71B6"><enum>(iv)</enum><text display-inline="yes-display-inline">the name and telephone number or address of
the designated recipient, if provided to the remittance transfer provider by
the consumer;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6A05F614DA1F4F0491EBAAF7F83A7D26"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0410A1B56E0F46469DF163FC79F035AA"><enum>(vi)</enum><text display-inline="yes-display-inline">appropriate contact information for the
remittance transfer provider;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFA43BB42C4C94DC2BF4BB7DBC078BDE3"><enum>(vii)</enum><text display-inline="yes-display-inline">a transaction reference number unique to
that remittance transfer; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H31961BC3C8BE4E88814DE8E3F6597C45"><enum>(viii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9958F9EC873946EC83D2524823781E05"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE3708C968614C9BB15F43FFA72BD3C2"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HB6CB458C7FCF49B78974B6F990438249"><enum>(3)</enum><header display-inline="yes-display-inline">Exemption</header><text display-inline="yes-display-inline">Notwithstanding requirements under
paragraph (2)(A)(ii), (2)(A)(iv), or (2)(B)(i), no such disclosure is
required—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H50DEA282F9EA4BA79411B60FD6AD8D72"><enum>(A)</enum><text display-inline="yes-display-inline">because of the requirements of another law,
including the law of another country;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H37C3A3E229E0462E85750327828BD332"><enum>(B)</enum><text display-inline="yes-display-inline">because the transfer is being routed
through the Directo a México offered by the Federal reserve banks; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H758EAD854ECC47479C385ACD0EE43C96"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H21F6498E2A3F44CE8CF9110D5DC7F7C6"><enum>(4)</enum><header display-inline="yes-display-inline">Provision of toll-free number and web
access</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF357080A1C454C3EA3E2C0C77ACA13FC"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H10BE8402F92D40D7902F74C75A94BB0E"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H778F64FB4C484F50B2F565E0F3778739"><enum>(5)</enum><header display-inline="yes-display-inline">Alternative methods of
disclosure</header><text display-inline="yes-display-inline">Subject to
subsection (e)(2), a remittance transfer provider may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD4206751D39C4C7CB539E739A49A4A01"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E84AF71F5CD4D929AA883B00005B9F1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA64188725B7E4525BD3ED5871F2E9A1A"><enum>(b)</enum><header display-inline="yes-display-inline">Written foreign language
disclosures</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="H5DC2EC8565C947BFBDFDDBAF643F41B3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The disclosures required under subsections
(a)(2)(A) and (a)(2)(B)(i) shall be made in English and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3EE1C3CFF5BF4DD1B2512AE9A71970BA"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H408E98D682DD4F3197CE978EE3CFF80E"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0A9A67E8FD14772895C52AB06475DCD"><enum>(2)</enum><header display-inline="yes-display-inline">Disputes concerning terms</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H67094B68222D455094C96CBD18CA148F"><enum>(c)</enum><header display-inline="yes-display-inline">Remittance transfer cancellations, refunds,
and errors</header>
<paragraph commented="no" display-inline="no-display-inline" id="H290F5706C8924AC796ABF3E07838A421"><enum>(1)</enum><header display-inline="yes-display-inline">Cancellations</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H34A1DEAED0C94D17B6767A56934A93CC"><enum>(A)</enum><text display-inline="yes-display-inline">After receiving the receipt required under
subsection (a)(2)(B), a consumer may cancel the currency transaction—</text>
<clause commented="no" display-inline="no-display-inline" id="HFBD0AE07B5B64E9FA39ED3A627A4EEE2"><enum>(i)</enum><text display-inline="yes-display-inline">before leaving the premises of the
remittance transfer provider where the consumer received the receipt;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4D57A20E367849409B223CA45B0D6578"><enum>(ii)</enum><text display-inline="yes-display-inline">not later than 30 minutes after the time
the consumer initiated the remittance transfer with the remittance transfer
provider.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2A0F66DF1ECE4FC78C213C92EDEC6BAF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H719C008F47654A06900DB9D857B41EED"><enum>(C)</enum><text display-inline="yes-display-inline">A consumer may not cancel a remittance
transfer after the remittance transfer provider has sent the funds to the
recipient.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA19699C5003487AA5F06F38E762932D"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3A2DB5EDE8254FB0B36C64B65A00129E"><enum>(2)</enum><header display-inline="yes-display-inline">Refunds</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1D22D28EDF814994B3F7DDD0A63014D3"><enum>(A)</enum><text display-inline="yes-display-inline">If a remittance transfer provider receives
written notice from the consumer within 10 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 commented="no" display-inline="no-display-inline" id="H5202474E58DE49AC8A8F7E26EB6EFDC5"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE2ACA7F9F72842A78DAA13932267AFBE"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD8A56938BA6E4290BE533B2C783E042B"><enum>(iii)</enum><text display-inline="yes-display-inline">provide such other remedy, as determined
appropriate by rule of the Director for the protection of consumers; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H88E6F874FDB847F7B13ABC93247CCB40"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93270AC762F74D9287C82D8311BEE1D8"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35B7F2D5976B48DF9E940F5C73704FE9"><enum>(3)</enum><header display-inline="yes-display-inline">Error resolution</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H551E87516B3D4BE9998583C2592FC175"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAD4DB7B19ACB47649EA32DB8FD34821F"><enum>(B)</enum><header display-inline="yes-display-inline">Remedies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H122B0B40131C42E4AC0DDCA4A46117BD"><enum>(i)</enum><text display-inline="yes-display-inline">as applicable to the error and as
designated by the consumer—</text>
<subclause commented="no" display-inline="no-display-inline" id="H079FE40078A24050B7F1BE01EB84807A"><enum>(I)</enum><text display-inline="yes-display-inline">refund to the consumer the total amount in
United States dollars that was paid by the consumer in connection with the
remittance transfer that was not properly transmitted;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H29CEC99C28944EC6AAFE4270CC88FCA2"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFA93E9320F6B418BADC5432F6FE97F41"><enum>(III)</enum><text display-inline="yes-display-inline">provide such other remedy, as determined
appropriate by regulation of the Director for the protection of consumers;
or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4437FB86FC4548529A04BD9EC693BCFC"><enum>(ii)</enum><text display-inline="yes-display-inline">demonstrate to the consumer that there was
no error.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H368ED453133440759D20BCC80DD9078B"><enum>(4)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H03D36A6CA65543A2A22169129D95056E"><enum>(d)</enum><header display-inline="yes-display-inline">Enforcement authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFC7C2FE3EBDA4536B4723D47EF12A6C1"><enum>(e)</enum><header display-inline="yes-display-inline">Applicability of other provisions of
law</header>
<paragraph commented="no" display-inline="no-display-inline" id="H57E3647E82FD4DA190671E8D73C54C5F"><enum>(1)</enum><header display-inline="yes-display-inline">Applicability of title 18 and title 31
provisions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1C62D181B45940838BDC0465AC517232"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section shall be
construed—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HB0322087367E4542BCFCA1BF8020E2A2"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE46F06A179FA4BCD96FC16C41010F3B3"><enum>(f)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H42423565044948B9A1CFB6C364B660BB"><enum>(1)</enum><header display-inline="yes-display-inline">Depository institution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8482D7D5A6A34EC686DED8944DCDB316"><enum>(2)</enum><header display-inline="yes-display-inline">Not fixed on send</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC02237999C204EA89EF44D248C8D0BE6"><enum>(3)</enum><header display-inline="yes-display-inline">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 to be effected or used
primarily for personal, family, or household purposes 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 commented="no" display-inline="no-display-inline" id="HF169E307CE234781A63FF9B452423EB2"><enum>(4)</enum><header display-inline="yes-display-inline">Remittance transfer provider</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A4C4596770E4A848D3392E5D369F448"><enum>(g)</enum><header display-inline="yes-display-inline">Model disclosures</header>
<paragraph commented="no" display-inline="no-display-inline" id="H07D1FE5E4A2C443587453BCC067BA5F0"><enum>(1)</enum><header display-inline="yes-display-inline">Publication</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF0F11F83B24F4CE0B06AACF62B1BECA4"><enum>(2)</enum><header display-inline="yes-display-inline">Languages to be used in model
disclosures</header><text display-inline="yes-display-inline">The Director
shall make these disclosures available within 1 year of the effective date of
this title—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HACF091C76AB9433C816EC72E93B51406"><enum>(A)</enum><text display-inline="yes-display-inline">in English; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H44EF4F3A08F44C70841B70CA790207A0"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9C7A4CC74544994AA0F5C5C9A5E14C5"><enum>(3)</enum><header display-inline="yes-display-inline">Use of automated equipment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E1FA069F18A4A4DA897D8D2B22C7FD0"><enum>(4)</enum><header display-inline="yes-display-inline">Use optional</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29B1A31E210445CF8AC1F306F459AE8D"><enum>(5)</enum><header display-inline="yes-display-inline">Effect of use</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA3642B8FD17D4DD58B9143A9447A0BF0"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H32E37CD284D04620962A36F0ACFC7098"><enum>(i)</enum><header display-inline="yes-display-inline">Applicability of State law</header>
<paragraph commented="no" display-inline="no-display-inline" id="H08B2107901AA4BF391D38296B74A4A21"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4812C893FF52487190517C3F11BD2387"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA7861CC437FE46CE881F743EFD6EC004"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFFA00CBF9DF3424188D384519EAAC329"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H943C626A0EE04B0D9CE5D99C02026F61"><enum>(j)</enum><header display-inline="yes-display-inline">Federal Credit Union Act
amendment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF6C57769B09D46A79A238E5D8D65B6D2"><enum>(k)</enum><header display-inline="yes-display-inline">Automated clearinghouse system</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8855740EA1914038A2A91BEA900F04FA"><enum>(1)</enum><header display-inline="yes-display-inline">Expansion of system</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE3CCD174C0CF404CAAFE42D154A73B1E"><enum>(A)</enum><text display-inline="yes-display-inline">the volume and dollar amount of remittance
transfers to those countries;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H558380FF13E9465EBD6A7086C4CDDB61"><enum>(B)</enum><text display-inline="yes-display-inline">the significance of the volume of such
transfers, relative to the external financial flows of the receiving country;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDF8E71A711824169B6080BCAD5B65141"><enum>(C)</enum><text display-inline="yes-display-inline">the feasibility of such an
expansion.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBD8B5BBF65F34D9680F63C4E0F4A0E71"><enum>(2)</enum><header display-inline="yes-display-inline">Report to the Congress</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, 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 commented="no" display-inline="no-display-inline" id="HCEF8A756DA744D49B2555CA6C2815CE4"><enum>(l)</enum><header display-inline="yes-display-inline">Regulatory guidance on remittance
transfers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H14778B8948C64E3E914000EF3A81DE00"><enum>(1)</enum><header display-inline="yes-display-inline">Provision of guidelines to
institutions</header><text display-inline="yes-display-inline">The Director
shall provide guidelines to all remittance transfer providers regarding—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFC546023937245A389B7094AC98844C2"><enum>(A)</enum><text display-inline="yes-display-inline">the offering of low-cost remittance
transfers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBABABBCBC25B419F9635986782400EBE"><enum>(B)</enum><text display-inline="yes-display-inline">the availability of agency services to
remittance transfer providers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B042A6778714C28B909A3ACB50686A2"><enum>(C)</enum><text display-inline="yes-display-inline">compliance with the provisions of this
title; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H618D726EEC5C47F8B53892C6856E1EE9"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3C83272464D64376BAA057E0BD3A1AF2"><enum>(2)</enum><header display-inline="yes-display-inline">Content of guidelines</header><text display-inline="yes-display-inline">Guidelines provided to remittance transfer
providers under this section shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0843DA6E466E416E90941F32D91D6831"><enum>(A)</enum><text display-inline="yes-display-inline">information as to the methods of providing
remittance transfer services;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4D6BAEE79EA846139B2086551B53DB39"><enum>(B)</enum><text display-inline="yes-display-inline">the potential economic opportunities in
providing low-cost remittance transfers; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF9EAAC073B4B421884DB3AF0572DB20D"><enum>(C)</enum><text display-inline="yes-display-inline">the potential value to depository
institutions of broadening their financial bases to include persons that use
remittance transfers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H57AB8281A75641BEA23499537F8DD94A"><enum>(3)</enum><header display-inline="yes-display-inline">Assistance to financial literacy
commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD30EE1ACA1AC49F08E4E1F50D2E9BFE3"><enum>(m)</enum><header display-inline="yes-display-inline">Report on feasibility of and impediments to
use of remittance history in calculation of credit score</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H83419E01D4E042858FA8AB059B0A8DDB"><enum>(1)</enum><text display-inline="yes-display-inline">the manner in which a consumer’s remittance
history could be used to enhance a consumer’s credit score;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H78825DA08D5448FA9EC711FF18EECF9A"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71F4E9A0B5C44E9CA8BB2DEF7F3C6D27"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1BD80D6D096842139D1A72DE212B030C"><enum>(n)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9B19BDCF49ED453797BC9998C701DDEE" section-type="subsequent-section"><enum>4310.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section><section commented="no" display-inline="no-display-inline" id="H34E4D062C98042A08AFF45E1687076C7" section-type="subsequent-section"><enum>4311.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1007A8869DB1491686B36F2F68B1677B" section-type="subsequent-section"><enum>4312.</enum><header display-inline="yes-display-inline">Appraisal independence
requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H4AC72E27DAFD4D83A9F8495DA6939B6F"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCDEA7973111E46BBBBDFF76D5325B797"><enum>(b)</enum><header display-inline="yes-display-inline">Certain regulation
requirements</header><text display-inline="yes-display-inline">Regulations
promulgated by the Negotiated Rulemaking Committee under this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H38A898D5C49E4D498EF2F243D58B31DC"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC6C5A32ED0524C8BB4D44BFF224B537A"><enum>(A)</enum><text display-inline="yes-display-inline">licensed or registered in accordance with
section 1501 et seq. of the SAFE Mortgage Licensing Act of 2008; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDE231B7A78BA461B865F3C776EC050CF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H420B1CAA83D442E88B85EE3C67013515"><enum>(i)</enum><text display-inline="yes-display-inline">consider additional, appropriate property
information;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8B5115EB4D224E03AC9574C164A3CAA8"><enum>(ii)</enum><text display-inline="yes-display-inline">provide further detail, substantiation, or
explanation for the appraiser’s value conclusion; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5E853E01EE244E42BBDA434A23D9C95F"><enum>(iii)</enum><text display-inline="yes-display-inline">correct errors in the appraisal report;
and</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4B6D8EDDC4D3480C972DF3C033573C95"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HADFCDAD1E22F4371968E4668ED4D0485"><enum>(c)</enum><header display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="HF45D8570B6404A95B9CF6A91BF825AF3" section-type="subsequent-section"><enum>4313.</enum><header display-inline="yes-display-inline">Overdraft protection notice
requirements</header><text display-inline="no-display-inline">Not later than
180 days after the date of the enactment of this Act, the Director shall
promulgate a new rule that requires banks to prominently place in each consumer
branch office information regarding the fees and charges associated with
enrollment in the bank’s overdraft protection program.</text>
</section><section commented="no" display-inline="no-display-inline" id="H260333257CE8483E80BC062ED87946A0" section-type="subsequent-section"><enum>4314.</enum><header display-inline="yes-display-inline">Review, report, and program with respect to
exchange facilitators</header>
<subsection commented="no" display-inline="no-display-inline" id="H44E9344837BA4F638050283CAB71E06A"><enum>(a)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">The Director shall review all Federal laws
and regulations relating to the protection of persons who utilize exchange
facilitators.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6A15BA2E6D1F4DF8BB0AE2326FD49A98"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 180 days after the effective
date of this subtitle, the Director shall submit to Congress a report
describing—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA30A865AAD7C4B8AB40CD1647658AC45"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations for legislation to ensure
the appropriate protection of persons who utilize exchange facilitators;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H925C38B0319E42D5BEAFE34EBE1AB0D0"><enum>(2)</enum><text display-inline="yes-display-inline">recommendations for updating the
regulations of Federal departments and agencies to ensure the appropriate
protection of such persons; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5BDF8114F8447999627693DEA086429"><enum>(3)</enum><text display-inline="yes-display-inline">recommendations for Agency regulations to
ensure the appropriate protection of such persons.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H694DD1691D8E4553B3D038A02AC29AA9"><enum>(c)</enum><header display-inline="yes-display-inline">Program</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the submission of the report under subsection (b), the Director shall establish
and carry out a program, utilizing the authorities of the Agency, to protect
persons who utilize exchange facilitators.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H558F9FA6018C41E18F0F56568F98611E"><enum>(d)</enum><header display-inline="yes-display-inline">Exchange facilitator defined</header><text display-inline="yes-display-inline">In this section, the term <quote>exchange
facilitator</quote> means a person that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBD95E731EC6247CEB2294B9EE39D22C5"><enum>(1)</enum><text display-inline="yes-display-inline">facilitates, for a fee, an exchange of
like-kind property by entering into an agreement with a taxpayer by which the
exchange facilitator acquires from the taxpayer the contractual rights to sell
the taxpayer's relinquished property and transfers a replacement property to
the taxpayer as a qualified intermediary (within the meaning of Treasury
Regulations section 1.1031(k)–1(g)(4)) or enters into an agreement with the
taxpayer to take title to a property as an exchange accommodation titleholder
(within the meaning of Revenue Procedure 2000–37) or enters into an agreement
with a taxpayer to act as a qualified trustee or qualified escrow holder
(within the meaning of Treasury Regulations section 1.1031(k)–1(g)(3));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD3B836D98BBE48F09D9F1CB16AFAEDB5"><enum>(2)</enum><text display-inline="yes-display-inline">maintains an office for the purpose of
soliciting business as an exchange facilitator; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1473C515DD624EB4AF34902B059C5AF0"><enum>(3)</enum><text display-inline="yes-display-inline">purports to be an exchange facilitator by
advertising any of the services listed in paragraph (1) or soliciting clients
in printed publications, direct mail, television or radio advertisements,
telephone calls, facsimile transmissions, or other electronic communications
directed to the general public for purposes of providing any such
services.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD2D462E12E26401E968A8987B6743651" section-type="subsequent-section"><enum>4315.</enum><header display-inline="yes-display-inline">Regulation of person-to-person
lending</header>
<subsection commented="no" display-inline="no-display-inline" id="HF1A114A7249047F0B1547120EF67DC0E"><enum>(a)</enum><header display-inline="yes-display-inline">Scope of exemption from Federal securities
regulation</header><text display-inline="yes-display-inline">Section 3(a) of
the Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H121E06F56B2D4B4EB6366E385579229C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H2A3DC4905B7F49B785F1F1461DCB44FF"><enum>(15)</enum><header display-inline="yes-display-inline">Person-to-person lending</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBA713A80A51B40628595CDEFF45A1151"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any consumer loan, and any note
representing a whole or fractional interest in any such loan, funded or sold
through a person-to-person lending platform.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF19C16FF7E4E4ADBB6E577C800E98178"><enum>(B)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this paragraph:</text>
<clause commented="no" display-inline="no-display-inline" id="H482B8D5EED484EAD8DD0A6D483454822"><enum>(i)</enum><header display-inline="yes-display-inline">Consumer loan</header><text display-inline="yes-display-inline">The term <quote>consumer loan</quote> means
a loan made to a natural person, the proceeds of which are intended primarily
for personal, family, educational, household, or business use.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H47E427110FF44269964B91347C980537"><enum>(ii)</enum><header display-inline="yes-display-inline">Person-to-person lending platform</header>
<subclause commented="no" display-inline="no-display-inline" id="H7102CC4B1BFF4090B99316445D9309F0"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>person-to-person lending
platform</quote> means an Internet website, the primary purpose of which is to
provide a transaction platform for the funding or sale of individual consumer
loans, or the sale of notes representing whole or fractional interests in
individual consumer loans, by matching natural persons who wish to obtain such
loans with persons who wish to fund them, or by matching persons who wish to
sell such loans or notes with persons who wish to purchase them.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H89989B460FC84F5095EB7CA064C2E943"><enum>(II)</enum><header display-inline="yes-display-inline">Prohibition on multiple loans in a single
transaction</header><text display-inline="yes-display-inline">The term
<quote>person-to-person lending platform</quote> does not include any platform
on which multiple loans may be funded or sold in a single transaction, or on
which a note representing an interest in multiple loans or other debt
obligations may be
sold.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HCC89B1C4E244448F8AE8220488E8DCF9"><enum>(b)</enum><header display-inline="yes-display-inline">Regulation by the Agency</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAB6706A3955C4BD2BCD2ED4A977CDA3F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Primary jurisdiction for the regulation of
the lending activities of person-to-person lending and person-to-person lending
platforms is hereby vested in the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63F36539D8DD4684A6AC496057E4DA75"><enum>(2)</enum><header display-inline="yes-display-inline">Interim requirements</header><text display-inline="yes-display-inline">Until the Director issues and adopts
disclosure requirements with respect to the sale of consumer loans, or notes
representing whole or fractional interests therein, on person-to-person lending
platforms, a person-to-person lending platform that registers the offer and
sale of any such notes under the Securities Act of 1933 shall, with respect to
such registered offer and sale, provide the disclosure required under the
Securities Act of 1933 to be contained in the registration statement and
prospectus and provide such disclosure required in any periodic reports
required to be filed by such person-to-person lender pursuant to section 13 or
section 15(d) of the Securities Exchange Act of 1934.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23EE9ED3BEF74F91B112B8CE8BD11AED"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the terms
<quote>consumer loan</quote>, <quote>person-to-person lending platform</quote>,
<quote>prospectus</quote>, and <quote>registration statement</quote> shall have
the meaning given such term under the Securities Act of 1933.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1F061B879F0143A8B896331065643D74"><enum>(c)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">The Director may prescribe such regulations
and issue such orders as the Director considers necessary or appropriate to
implement the provisions of this section and to provide borrower protection,
lender protection, consumer choice, and expanded consumer access to fair and
reasonable credit choices.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9269CBA1A94C413DAF70CD5E8E2CA8B7"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Notwithstanding section
4310, this section shall take effect on the date of the enactment of this
title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H83F7EB3B78524155A354F26911E72061" section-type="subsequent-section"><enum>4316.</enum><header display-inline="yes-display-inline">Treatment of reverse mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="HD888EF5CBFC14D62923F8A846AFA360D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director shall examine the practices of
covered persons in connection with any reverse mortgage transaction (as defined
in section 103(bb) of the Truth in Lending Act (15 U.S.C. 1602)) and shall
prescribe regulations identifying any acts or practices as unlawful, unfair,
deceptive, or abusive in connection with a reverse mortgage transaction or the
offering of a reverse mortgage.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H30B03B4F56014DBCA1AA762ACC6B5836"><enum>(b)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">In prescribing regulations under subsection
(a), the Director shall ensure that such regulations shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD14EE60F18E841729BC93A5673858DAD"><enum>(1)</enum><text display-inline="yes-display-inline">include requirements for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8BFB805D0EEA414691E96CDCC8A88847"><enum>(A)</enum><text display-inline="yes-display-inline">the purpose of preventing unlawful, unfair,
deceptive or abusive acts and practices in connection with a reverse mortgage
transaction; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F533B1C2462448FB3063FCDACC5CEC8"><enum>(B)</enum><text display-inline="yes-display-inline">the purpose of providing timely,
appropriate, and effective disclosure to consumers in connection with a reverse
mortgage transaction that are consistent with requirements prescribed by the
Director in connection with other consumer mortgage products or services under
this title;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCA24A62C9232482A961C8837BD90BE95"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to the requirements under
paragraph (1), be consistent with requirements prescribed by the Director in
connection with other consumer mortgage products or services under this title;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF19BC793F5F41EAA36092D74624AA72"><enum>(3)</enum><text display-inline="yes-display-inline">provide for an integrated disclosure
standard and model disclosures for reverse mortgage transactions, consistent
with section 4302(d), that combines the relevant disclosures required under the
Truth in Lending Act (15 U.S.C. 1601 et seq.) and the Real Estate Settlement
Procedures Act, with the disclosures required to be provided to consumers for
Home Equity Conversion Mortgages under section 255 of the National Housing
Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C76720E6C86482EA7B8E5CD2FCF57EB"><enum>(c)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">In connection with the issuance of any
regulations under this section, the Director shall consult with the Federal
banking agencies, State bank supervisors, the Federal Trade Commission, and the
Department of Housing and Urban Development, as appropriate, to ensure that any
proposed regulation—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAC2BD12CAC8246B7B0F75117441EF320"><enum>(1)</enum><text display-inline="yes-display-inline">imposes substantially similar requirements
on all covered persons; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB7F0DAF2C63F48329E1D76CB2B1DF3DA"><enum>(2)</enum><text display-inline="yes-display-inline">is consistent with prudential, consumer
protection, civil rights, market or systemic objectives administered by such
agencies or supervisors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70B95F48488E40FA8AC3BE5FD4F1A0FE"><enum>(d)</enum><header display-inline="yes-display-inline">Deadline for rulemaking</header><text display-inline="yes-display-inline">The Director shall commence the rulemaking
required under subsection (a) not later than 12 months after the date of the
enactment of this Act.</text>
</subsection></section></subtitle><subtitle commented="no" id="H6B9FC432579340C698B028226261FB5F" level-type="subsequent"><enum>D</enum><header display-inline="yes-display-inline">Preservation of State Law</header>
<section commented="no" display-inline="no-display-inline" id="H437B6E77ACD24BD89BD4D47B675AD1D1" section-type="subsequent-section"><enum>4401.</enum><header display-inline="yes-display-inline">Relation to State law</header>
<subsection commented="no" display-inline="no-display-inline" id="H865BBEA99CD04FA3B65E56EF27830394"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H94A892D143424D908B60840068FF04E8"><enum>(1)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6FE58224C52D4A93BACA6D1601284C08"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86E7625535534EA0B5E829E1FAF8DB5B"><enum>(b)</enum><header display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H85F8E4E3E38E4EF6B63A4217095CC243"><enum>(c)</enum><header display-inline="yes-display-inline">Additional consumer protection regulations
in response to state action</header>
<paragraph commented="no" display-inline="no-display-inline" id="H48F67BD73BE34724864DB944274824F9"><enum>(1)</enum><header display-inline="yes-display-inline">Notice of proposed rule
required</header><text display-inline="yes-display-inline">The Agency shall
issue a notice of proposed rulemaking whenever a majority of the States has
enacted a resolution in support of the establishment or modification of a
consumer protection regulation by the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5BA920A2F187473C8C5393078DE55904"><enum>(2)</enum><header display-inline="yes-display-inline">Agency considerations required for issuance
of final regulation</header><text display-inline="yes-display-inline">Before
prescribing a final regulation based upon a notice issued pursuant to paragraph
(1), the Agency shall take into account whether—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H833450E6508842D38037A8AC8C45370B"><enum>(A)</enum><text display-inline="yes-display-inline">the proposed regulation would afford
greater protection to consumers than any existing regulation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB63444D827DE475F85FD6DD4B9683D70"><enum>(B)</enum><text display-inline="yes-display-inline">the intended benefits of the proposed
regulation for consumers would outweigh any increased costs or inconveniences
for consumers, and would not discriminate unfairly against any category or
class of consumers; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6F306382247145E7AA333401D8FC4BC2"><enum>(C)</enum><text display-inline="yes-display-inline">a Federal banking agency has advised that
the proposed regulation is likely to present an unacceptable safety and
soundness risk to insured depository institutions.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H981B2A75B59246AF8FCAF93C25B90544"><enum>(3)</enum><header display-inline="yes-display-inline">Explanation of considerations</header><text display-inline="yes-display-inline">The Agency—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6D4B27EB9D9642378EE5BE76D2A9CD58"><enum>(A)</enum><text display-inline="yes-display-inline">shall include a discussion of the
considerations required in subsection (b) in the Federal Register notice of a
final regulation prescribed pursuant to this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2CCEBC67B40141E88EAE95F23476F555"><enum>(B)</enum><text display-inline="yes-display-inline">whenever the Agency determines not to
prescribe a final regulation, shall publish an explanation of such
determination in the Federal Register, and provide a copy of such explanation
to each State that enacted a resolution in support of the proposed regulation,
the Committee on Financial Services of the House of Representatives, and the
Committee on Banking, Housing, and Urban Affairs of the Senate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3C59813425B40B0B3AB540A4AECEA87"><enum>(4)</enum><header display-inline="yes-display-inline">Reservation of authority</header><text display-inline="yes-display-inline">No provision of this section shall be
construed as limiting or restricting the authority of the Agency to enhance
consumer protection standards established pursuant to this title in response to
its own motion or in response to a request by any other interested
person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A17837F2DFB4C84B0866B72A25FF661"><enum>(5)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">No provision of this section shall be
construed as exempt the Agency from complying with subchapter II of chapter 5
of title 5, United States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H680F1AE32A914BDD9718E029EE31CD29"><enum>(6)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>consumer protection regulation</quote> means a regulation that the
Agency is authorized to prescribe under this title, the enumerated consumer
laws, or any law or authority transferred under subtitle F or H.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H3D9D9F29E6F248EE9B4AE3F0DC83161B" section-type="subsequent-section"><enum>4402.</enum><header display-inline="yes-display-inline">Preservation of enforcement powers of
States</header>
<subsection commented="no" display-inline="no-display-inline" id="H69251883A89944E7B378149CF139AA98"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBD3D6405A0F848868C73FAA7D3E51A14"><enum>(1)</enum><header display-inline="yes-display-inline">Action by state</header><text display-inline="yes-display-inline">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 enforce and secure
remedies under provisions of this title or regulations issued thereunder, or
otherwise provided under other law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E18B0C92DAA406190A65D42B90AEEDA"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3AF0488401E745CA844B438DE150699A"><enum>(b)</enum><header display-inline="yes-display-inline">Consultation required</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3CACD2AB05D047AE90C71B11CEF71529"><enum>(1)</enum><header display-inline="yes-display-inline">Notice</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7220ECE5275444F7A3F38D15E3413A61"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75382706143F4FA8957D82E8895FCCEE"><enum>(B)</enum><header display-inline="yes-display-inline">Emergency action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD37FBDE3F4C34081AD960BC0D96E03E7"><enum>(C)</enum><header display-inline="yes-display-inline">Contents of notice</header><text display-inline="yes-display-inline">The notification required under this
section shall, at a minimum, describe—</text>
<clause commented="no" display-inline="no-display-inline" id="HEA56B49107344C3FA814AA1D1240FE3C"><enum>(i)</enum><text display-inline="yes-display-inline">the identity of the parties;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H710E7CCDDB0842E796F4A68E9B5AE2F6"><enum>(ii)</enum><text display-inline="yes-display-inline">the alleged facts underlying the
proceeding; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H03B1F31B3AB143D294D16655C38E1C1C"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB00E477EA6F48B8B7809BC9CCB8EC70"><enum>(2)</enum><header display-inline="yes-display-inline">Agency response</header><text display-inline="yes-display-inline">In any action described in paragraph (1),
the Agency may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA52C3662A1054257B8ABA17FEED09C35"><enum>(A)</enum><text display-inline="yes-display-inline">intervene in the action as a party;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8584D1BF5EA641528437AA1D1D83200F"><enum>(B)</enum><text display-inline="yes-display-inline">upon intervening—</text>
<clause commented="no" display-inline="no-display-inline" id="HBCB1B57A146B41E0838FD0F0B8F7F4B7"><enum>(i)</enum><text display-inline="yes-display-inline">remove the action to the appropriate United
States district court, if the action was not originally brought there;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA1F1A55168D54FE5BE9D36E60934DFF7"><enum>(ii)</enum><text display-inline="yes-display-inline">be heard on all matters arising in the
action; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H54367A303F004483932F5EB3689B60FE"><enum>(C)</enum><text display-inline="yes-display-inline">appeal any order or judgment to the same
extent as any other party in the proceeding may.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8A68DD50C88745EA8DF7FCD99D7017FE"><enum>(c)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6F7D16E8D5F14B69B9A3A7853FB86719"><enum>(d)</enum><header display-inline="yes-display-inline">Preservation of state authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="H67DFD7A8D70441B2BE1F53ED76AE4027"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB6CF326C80584C8DAE259CDF01FB702D"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H27FD4D726FA3450F8571A580A1503143"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB34857B5E6594E30A91D051F2C87063D" section-type="subsequent-section"><enum>4403.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H12DD7629262E4340AC0E487F0FD2F0CB" section-type="subsequent-section"><enum>4404.</enum><header display-inline="yes-display-inline">State law preemption standards for national
banks and subsidiaries clarified</header>
<subsection commented="no" display-inline="no-display-inline" id="HA6C2ACA9D42F434C9E330D1F9A6BF392"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter one of title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et 1 seq.) is amended by inserting
after section 5136B the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H40B42315451941A18303E4CD41BF16A3" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H43A10CE12D014A699936F0A8D9E08859" section-type="subsequent-section"><enum>5136C.</enum><header display-inline="yes-display-inline">State law preemption standards for national
banks and subsidiaries clarified</header>
<subsection commented="no" display-inline="no-display-inline" id="HC671B039384841ED9779D2F7BDA2A154"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H80BBB41C3447441AA139340D882B09BC"><enum>(1)</enum><header display-inline="yes-display-inline">National bank</header><text display-inline="yes-display-inline">The term <quote>national bank</quote>
includes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H88660C2815764823AF04299555E08163"><enum>(A)</enum><text display-inline="yes-display-inline">any bank organized under the laws of the
United States; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H167874C564394EA8A217EA6EDA3EE562"><enum>(B)</enum><text display-inline="yes-display-inline">any Federal branch established in
accordance with the International Banking Act of 1978.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66C91903F85F4FB799BD51B4B9E3CACF"><enum>(2)</enum><header display-inline="yes-display-inline">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 directly and specifically regulates the manner,
content, or terms and conditions of any financial transaction (as may be
authorized for national banks to engage in), or any account related thereto,
with respect to a consumer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H000A033DBA76498CB3FA017F10522097"><enum>(3)</enum><header display-inline="yes-display-inline">Other definitions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H85BCC4F125B04CCC808008A3006BDB83"><enum>(b)</enum><header display-inline="yes-display-inline">Preemption standard</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8AAFC93244A0482289DB6FD0FBD1001F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">State consumer financial laws are preempted
only if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H996D8F391BB24B7589F60D2E1CADFBC8"><enum>(A)</enum><text display-inline="yes-display-inline">application of a State consumer financial
law would have a discriminatory effect on national banks in comparison with the
effect of the law on a bank chartered by that State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4C4876203F6448A68920BDDEE1897C4D"><enum>(B)</enum><text display-inline="yes-display-inline">the State consumer financial law prevents,
significantly interferes with, or materially impairs the ability of an
institution chartered as a national bank to engage in the business of banking.
Any preemption determination under this subparagraph may be made by a court or
by regulation or order of the Comptroller of the Currency in accordance with
applicable law, on a case-by-case basis. Any such determination by a court
shall comply with the standards set forth in subsection (d) of this section,
with the court making the subsection (d) finding de novo; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF96385A1EAE143F5A62B955FA40899CE"><enum>(C)</enum><text display-inline="yes-display-inline">the State consumer financial law is
preempted by Federal law other than this Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H596B56EEB1C34C019FEAC15236114451"><enum>(2)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">This Act does not
preempt or alter the applicability of any State law to any subsidiary or
affiliate of a national bank (other than an institution chartered as a national
bank) that is not a depository institution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43BE5B92F9464E3BB5E6C785C21047EF"><enum>(3)</enum><header display-inline="yes-display-inline">Case-by-case determination</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC44956DA992F4919B6BB8AE5C186D308"><enum>(A)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">The term <quote>case-by-case determination
pursuant to this section</quote> means a determination made by the Comptroller
concerning the impact of a particular State consumer financial law on any
national bank that is subject to that law, or the law of any other State with
substantively equivalent terms.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7E8F82D182D34AB799A1F81BAD5A4F79"><enum>(B)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">When making case-by-case determination
pursuant to this section that a State consumer financial law of another State
has a substantively equivalent terms as one that the Comptroller is preempting,
the Comptroller shall first consult with the Consumer Financial Protection
Agency and shall take such Agency’s views into account when making the
determination.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F58558E9E55449688BDC4F0CF24CF6A"><enum>(4)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">This Act does not occupy the field in any
area of State law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC2886FDAA754184B5B8B9699D6CAF32"><enum>(5)</enum><header display-inline="yes-display-inline">Standards of review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEC50CD9C0E214AC591073C167233EFCD"><enum>(A)</enum><header display-inline="yes-display-inline">Preemption</header><text display-inline="yes-display-inline">A court reviewing any determinations made
by the Comptroller regarding preemption of a State law by this Act shall assess
the validity of such determinations depending upon the thoroughness evident in
the agency’s consideration, the validity of the agency’s reasoning, the
consistency with other valid determinations made by the agency, and other
factors which the court finds persuasive and relevant to its decision.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H67B702B9C54D463C84BEF6B6DD2A0A17"><enum>(B)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (A), nothing in this section shall affect the deference that a
court may afford to the Comptroller in making determinations regarding the
meaning or interpretation of title LXII of the Revised Statutes of the United
States or other Federal laws.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7714633038C04CD7BF780C696345C812"><enum>(6)</enum><header display-inline="yes-display-inline">Comptroller determination not
delegable</header><text display-inline="yes-display-inline">Any regulation,
order or determination made by the Comptroller of the Currency under subsection
(b)(1)(B) shall be made by the Comptroller and shall not be delegable to
another officer or employee of the Comptroller of the Currency.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H715E833ACD8D41698587E76392C46789"><enum>(c)</enum><header display-inline="yes-display-inline">Substantial evidence</header><text display-inline="yes-display-inline">No regulation or order of the Comptroller
of the Currency prescribed under subsection (b)(1)(B), shall be interpreted or
applied so as to invalidate, or otherwise declare inapplicable to a national
bank, the provision of the State consumer financial law unless substantial
evidence, made on the record of the proceeding, supports the specific finding
that the provision prevents, significantly interferes with, or materially
impairs the ability of a national bank to engage in the business of
banking.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDED5A62F1FAB4002A2ED58A5560071DB"><enum>(d)</enum><header display-inline="yes-display-inline">Other Federal laws</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the Comptroller of the Currency may not prescribe a regulation or order
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 commented="no" display-inline="no-display-inline" id="H38D20F3546C44643AF9E9865487A97F3"><enum>(e)</enum><header display-inline="yes-display-inline">Periodic review of preemption
determinations</header><text display-inline="yes-display-inline">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) and (b)).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0AA102CED8104677963616CDE0140500"><enum>(f)</enum><header display-inline="yes-display-inline">Application of state consumer financial law
to subsidiaries and affiliates</header><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="HAF848AC0EDFB4F9786608D766BE0ECC0"><enum>(g)</enum><header display-inline="yes-display-inline">Preservation of powers related to charging
interest</header><text display-inline="yes-display-inline">No provision of this
title shall be construed as altering or otherwise affecting the authority
conferred by section 5197 of the Revised Statutes of the United States (12
U.S.C. 85) for the charging of interest by a national bank at the rate allowed
by the laws of the State, territory or district where the bank is located,
including with respect to the meaning of <quote>interest</quote> under such
provision.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5DF70B5E13664642B2B38FC50463AC1C"><enum>(h)</enum><header display-inline="yes-display-inline">Transparency of occ preemption
determinations</header><text display-inline="yes-display-inline">The
Comptroller of the Currency shall publish and update no less frequently than
quarterly, a list of preemption determinations by the Comptroller of the
Currency then in effect that identifies the activities and practices covered by
each determination and the requirements and constraints determined to be
preempted.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H07ED67B33AC74566A740737C4C7208E9"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H687A5E051FA04E80BEA50FCFAECCCF95" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" 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 commented="no" display-inline="no-display-inline" id="HE1897002CD18408681F2C21947226B59" section-type="subsequent-section"><enum>4405.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H891AC53A49DA4EDBAD567DD3F650C2C6" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFECD165218EA4967880413C3679453C9"><enum>(g)</enum><header display-inline="yes-display-inline">Visitorial powers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H55FB879DE9D641DD915A47DD5C531478"><enum>(1)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">No provision of this title which relates to
visitorial powers or otherwise limits or restricts the visitorial authority to
which any national bank is subject shall be construed as limiting or
restricting the authority of any attorney general (or other chief law
enforcement officer) of any State to bring any action in any court of
appropriate jurisdiction—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCB4260D6FEE5437A98412AEAE5837D04"><enum>(A)</enum><text display-inline="yes-display-inline">to enforce any applicable Federal or State
law, as authorized by such law; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3A6C9E2371D4CAEB69B1B66DBF2E766"><enum>(B)</enum><text display-inline="yes-display-inline">on behalf of residents of such State, to
enforce any applicable provision of any Federal or nonpreempted State law
against a national bank, as authorized by such law, or to seek relief as
authorized by such law.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C5A04F106E548D387B1639BB2345A30"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40F11C85B05E41E7A60E7DA2CFE99B45"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1DE6029E0F234AD1A229F8259B2B3C5E" section-type="subsequent-section"><enum>4406.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H1FD8A5E4C81B44689C3CA7D75F9359D6" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H69F8A25E83FA43B09E4702E0A06462D7"><enum>(i)</enum><header display-inline="yes-display-inline">Clarification of law applicable to
nondepository institution subsidiaries and affiliates of national
banks</header>
<paragraph commented="no" display-inline="no-display-inline" id="H03297F49F9D944879AC58BEB782051F2"><enum>(1)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4AFC03879F5643FC91920B5925FFAC58"><enum>(A)</enum><header display-inline="yes-display-inline">Depository institution, subsidiary,
affiliate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7BF4B9307AED4C1D8E3B9F7753C25350"><enum>(B)</enum><header display-inline="yes-display-inline">Nondepository institution</header><text display-inline="yes-display-inline">The term <quote>nondepository
institution</quote> means any entity that is not a depository
institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF22DA2E9A04E469585AF0B2B52028FBB"><enum>(2)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA803E7AA3154422EA1461E369E06907D" section-type="subsequent-section"><enum>4407.</enum><header display-inline="yes-display-inline">State law preemption standards for Federal
savings associations and subsidiaries clarified</header>
<subsection commented="no" display-inline="no-display-inline" id="H084BECD41F3748E099FA4262B212E06F"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Home Owners’ Loan Act (12 U.S.C. 1461
et seq.) is amended by inserting after section 5 the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HA54DFE48C6F44C20A17C9F53158A5E18" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H480944A1C0764B958A7CB247ED1D8176" section-type="subsequent-section"><enum>6.</enum><header display-inline="yes-display-inline">State law preemption standards for Federal
savings associations clarified</header>
<subsection commented="no" display-inline="no-display-inline" id="H16B77CB711754542BFF4D8B0E4AC4120"><enum>(a)</enum><header display-inline="yes-display-inline">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 directly and specifically 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 commented="no" display-inline="no-display-inline" id="HEA7B35ED467643DD93FE46F1EC9F57A1"><enum>(b)</enum><header display-inline="yes-display-inline">Preemption standard</header>
<paragraph commented="no" display-inline="no-display-inline" id="H90A90B6D6C254162B1D70B25984B9A64"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">State consumer financial laws are preempted
only if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8FF3244E638B4D90AE0A59B082EBA352"><enum>(A)</enum><text display-inline="yes-display-inline">application of a State consumer financial
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 commented="no" display-inline="no-display-inline" id="H0C983BE01AD54AF48641C53A4291FE43"><enum>(B)</enum><text display-inline="yes-display-inline">the State consumer financial law prevents,
significantly interferes with, or materially impairs the ability of an
institution chartered as a Federal savings association to engage in the
business of banking. Any preemption determination under this subparagraph may
be made by a court or by regulation or order of the Director of the Office of
Thrift Supervision in accordance with applicable law, on a case-by-case basis.
Any such determination by a court shall comply with the standards set forth in
subsection (d) of this section, with the court making the subsection (d)
finding de novo; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BBE97C81D1B457CBFF9211654D5540F"><enum>(C)</enum><text display-inline="yes-display-inline">the State consumer financial law is
preempted by Federal law other than this Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66ADFEB6D66049D087F826A1CDF5A088"><enum>(2)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">This Act does not
preempt or alter the applicability of any State law to any subsidiary or
affiliate of a Federal savings association (other than an institution chartered
as a Federal savings association) that is not a depository institution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6C570AAFAD954E49B82402EC4FA83572"><enum>(3)</enum><header display-inline="yes-display-inline">Case-by-case determination</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2D4F9F1CBCBF4EEE857BD4750EF2B09A"><enum>(A)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">The term <quote>case-by-case determination
pursuant to this section</quote> means a determination made by the Director
concerning the impact of a particular State consumer financial law on any
Federal savings association that is subject to that law, or the law of any
other State with substantively equivalent terms.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA99100863786412C8327E6DA5522B6A3"><enum>(B)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">When making case-by-case determination
pursuant to this section that a State consumer financial law of another State
has a substantively equivalent terms as one that the Director of the Office of
Thrift Supervision is preempting, the Director shall first consult with the
Consumer Financial Protection Agency and shall take such Agency’s views into
account when making the determination.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC6A93C7BF5D54B1EAC6D21B5C3EABD79"><enum>(4)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">This Act does not occupy the field in any
area of State law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3CCE0CCCEFA141F8B1AF229AE3E192EC"><enum>(5)</enum><header display-inline="yes-display-inline">Standards of review</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6C782E82235F4537802014BE7E34DCD2"><enum>(A)</enum><header display-inline="yes-display-inline">Preemption</header><text display-inline="yes-display-inline">A court reviewing any determinations made
by the Director regarding preemption of a State law by this Act shall assess
the validity of such determinations depending upon the thoroughness evident in
the agency’s consideration, the validity of the agency’s reasoning, the
consistency with other valid determinations made by the agency, and other
factors which the court finds persuasive and relevant to its decision.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58BBADD2E0BA4132AFA77234DE63FB8B"><enum>(B)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (A), nothing in this section shall affect the deference that a
court may afford to the Director in making determinations regarding the meaning
or interpretation of the Home Owners’ Loan Act or other Federal laws.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4B62297FF04D40D781A361634DD137A6"><enum>(6)</enum><header display-inline="yes-display-inline">OTS determination not
delegable</header><text display-inline="yes-display-inline">Any regulation,
order, or determination made by the Director of the Office of Thrift
Supervision under subsection (b)(1)(B) shall be made by the Director and shall
not be delegable to another officer or employee of the Director of the Office
of Thrift Supervision.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB58F8D9C5E8A40C185103EBA28AF61A7"><enum>(c)</enum><header display-inline="yes-display-inline">Other Federal law</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the Director of the Office of Thrift Supervision may not prescribe any
regulation or order 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 commented="no" display-inline="no-display-inline" id="H2903F7C7B5D14703B6EADC1FD130001D"><enum>(d)</enum><header display-inline="yes-display-inline">Substantial evidence</header><text display-inline="yes-display-inline">No regulation or order 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,
significantly interferes with, or materially impairs the ability of a Federal
savings association to engage in the business of banking.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2C66F4FCAD6843E98CCA15BEC891E684"><enum>(e)</enum><header display-inline="yes-display-inline">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) and (b)).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H25F1E24F656340EA9CAC6389337153DE"><enum>(f)</enum><header display-inline="yes-display-inline">Application of state consumer financial law
to subsidiaries and affiliates</header><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H0F25784BEA5246D49A16C5DCB0183636"><enum>(g)</enum><header display-inline="yes-display-inline">Preservation of powers related to charging
of interest</header><text display-inline="yes-display-inline">No provision of
this title shall be construed as altering or otherwise affecting the authority
conferred by section 4(g) of the Home Owners’ Loan Act (12 U.S.C. 1463(g)) for
the charging of interest by a Federal savings association at the rate allowed
by the laws of the State, territory, or district where the bank is located,
including with respect to the meaning of <quote>interest</quote> under such
provision.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAF4946B92AE24BE9B255C29EBC098338"><enum>(h)</enum><header display-inline="yes-display-inline">Transparency of OTS preemption
determinations</header><text display-inline="yes-display-inline">The Director
of the Office of Thrift Supervision shall publish and update no less frequently
than quarterly, a list of preemption determinations by such Director then in
effect that identifies the activities and practices covered by each
determination and the requirements and constraints determined to be
preempted.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H08F10D9C36AC4F518156B1AEEE3DF7F5"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for the Home Owners’
Loan Act (12 U.S.C. 1461 et seq.) is amended by striking the item relating to
section 6 and inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H002F01A1F6174E18929EFDB28D216941" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" 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 commented="no" display-inline="no-display-inline" id="HCD79AA77D9CE42F797D8C05ADCA8D25A" section-type="subsequent-section"><enum>4408.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HEC6A6CF0860E4F07BEDDF2E405736D78" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFA78C34A56B3486EB4D181A8D5C8F970"><enum>(g)</enum><header display-inline="yes-display-inline">Visitorial powers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3D748604C5774C9DABA13CE4B7B41BFA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F33587DFF974C0C81140C16548266F5"><enum>(A)</enum><text display-inline="yes-display-inline">to enforce any applicable Federal or State
law, as authorized by such law; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE6A88E965C994C24957C079794D48B3D"><enum>(B)</enum><text display-inline="yes-display-inline">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 as authorized
by such law.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E80D83118DC41F8A7F629010C65912E"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H45E9A8C1FBE54CE3863D08B4FB860A79"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9FEF350C338C4EB5971CD3C264D0E961" section-type="subsequent-section"><enum>4409.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H590EB9AEC17043E39D4BB5ACC5116FEC" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HBB3DD261821541AFA3F5F062EB477D9A"><enum>(i)</enum><header display-inline="yes-display-inline">Clarification of law applicable to
nondepository institution subsidiaries and affiliates of federal savings
associations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE0DD341D8ED249A18C80D67672AD5781"><enum>(1)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4A3F326417334683B28B09F9552CF562"><enum>(A)</enum><header display-inline="yes-display-inline">Depository institution, subsidiary,
affiliate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD1F1055C29E44BA1B9B781444B8F5CD2"><enum>(B)</enum><header display-inline="yes-display-inline">Nondepository institution</header><text display-inline="yes-display-inline">The term <quote>nondepository
institution</quote> means any entity that is not a depository
institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5E0F0ED093B40DBA0633C5734E0D019"><enum>(2)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFBBADBBE47E14A31BD0142BF10A16076" section-type="subsequent-section"><enum>4410.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section></subtitle><subtitle commented="no" id="H0B09258603BF4976AB2DF2B6DA36D4CF" level-type="subsequent"><enum>E</enum><header display-inline="yes-display-inline">Enforcement Powers</header>
<section commented="no" display-inline="no-display-inline" id="H21AF2C81276648249D605AFE453E0ADF" section-type="subsequent-section"><enum>4501.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC8E3DE7FB43C468C86A4CED41C06D29E"><enum>(1)</enum><header display-inline="yes-display-inline">Agency investigation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0221FA23774843089D0C17D05550CE49"><enum>(2)</enum><header display-inline="yes-display-inline">Agency investigator</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H169866E622444514A1945E1AD2D6F353"><enum>(3)</enum><header display-inline="yes-display-inline">Covered employee</header><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H829268473C164A189A0836E619C84E9F"><enum>(4)</enum><header display-inline="yes-display-inline">Custodian</header><text display-inline="yes-display-inline">The term <quote>custodian</quote> means the
custodian or any deputy custodian designated by the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB405D9C8AD3E4B4D8EE5F2C3BB6A0CE0"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB8E954C3B1041348FF5893C127D2387"><enum>(6)</enum><header display-inline="yes-display-inline">Violation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCBBD0CD34DD2453F826C74371F7E5F0A" section-type="subsequent-section"><enum>4502.</enum><header display-inline="yes-display-inline">Investigations and administrative
discovery</header>
<subsection commented="no" display-inline="no-display-inline" id="HE2BAB1A736E0448A909992B050C52759"><enum>(a)</enum><header display-inline="yes-display-inline">Joint investigations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6D16D689C36240B59E52935972AE6400"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1EE10FD0158544098D2A86E4EA9D1B30"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6336BBF8B8FA4090800CDD2903025D40"><enum>(b)</enum><header display-inline="yes-display-inline">Subpoenas</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3D1F2024DE20408F872E6722E2D1AA46"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD37740305404A7F9BDD1FD29FE52579"><enum>(2)</enum><header display-inline="yes-display-inline">Failure to obey</header><text display-inline="yes-display-inline">In case of contumacy or refusal to obey a
subpoena issued pursuant to this paragraph and served upon any person, an
appropriate United States district court may, upon application by the Agency or
an Agency investigator and after notice to such person, issue an order
requiring such person to appear and give testimony or to appear and produce
documents or other material, or both.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H48FB4E0DC84D4C99A48596DD626904DC"><enum>(c)</enum><header display-inline="yes-display-inline">Demands</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFCD40AE56A8A42C88BBF0F544D40827B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HED41DDE5E9C84EC7B9CCF14C31E7E649"><enum>(B)</enum><text display-inline="yes-display-inline">submit such tangible things;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H529CB28E96E34C96BF981281366FE799"><enum>(C)</enum><text display-inline="yes-display-inline">file written reports or answers to
questions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEBAF86C0D0F243DEB82CE09EB2F46ADD"><enum>(D)</enum><text display-inline="yes-display-inline">give oral testimony concerning documentary
material or other information; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H63D4C7AB52DF42ABA78A69B687A5FA3A"><enum>(E)</enum><text display-inline="yes-display-inline">furnish any combination of such material,
answers, or testimony.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5203F04C147B4016B2E696350F1400B5"><enum>(2)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF841697441646B6AD9986116B2DE3F5"><enum>(3)</enum><header display-inline="yes-display-inline">Production of documents</header><text display-inline="yes-display-inline">Each civil investigative demand for the
production of documentary material shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H81010037A849415B84A47F5F7F0BD8DB"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17622A18FDCC4576A6723CDDA87FA967"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF200C3A9B5844CC4848BC042F334B332"><enum>(C)</enum><text display-inline="yes-display-inline">identify the custodian to whom such
material shall be made available.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD86852684B7E44F49824486423814CE2"><enum>(4)</enum><header display-inline="yes-display-inline">Production of things</header><text display-inline="yes-display-inline">Each civil investigative demand for the
submission of tangible things shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF2748C728BF04EA38C699F910796CC2A"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC0B615851B0240D5B00E44EB90867AA1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H280015A13A594C7D964EF151C4924770"><enum>(C)</enum><text display-inline="yes-display-inline">identify the custodian to whom such things
shall be submitted.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCFEF48CA6F15436E9A1392D014FD58F3"><enum>(5)</enum><header display-inline="yes-display-inline">Demand for written reports or
answers</header><text display-inline="yes-display-inline">Each civil
investigative demand for written reports or answers to questions shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2ECF0C6DDD214AC091D3A25A5EA18291"><enum>(A)</enum><text display-inline="yes-display-inline">propound with definiteness and certainty
the reports to be produced or the questions to be answered;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8F215C0ACB8E4C8286EB405E5E0440DB"><enum>(B)</enum><text display-inline="yes-display-inline">prescribe a date or dates at which time
written reports or answers to questions shall be submitted; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF40E60EA80D5455A8E3567D9190387D6"><enum>(C)</enum><text display-inline="yes-display-inline">identify the custodian to whom such reports
or answers shall be submitted.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8662E4F91C444CB38BB54A56EF73C24F"><enum>(6)</enum><header display-inline="yes-display-inline">Oral
testimony</header><text display-inline="yes-display-inline">Each civil
investigative demand for the giving of oral testimony shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDD0B3D56FC404CABA43573C4507BC5A8"><enum>(A)</enum><text display-inline="yes-display-inline">prescribe a date, time, and place at which
oral testimony shall be commenced; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8D1485096CCD4197BF2F9D87158060B1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDAECD6BF79EC4780AF86DC006C2E9736"><enum>(7)</enum><header display-inline="yes-display-inline">Service</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE2C845FAC3814A2AB4EA44B1E6B06501"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB795394BF03A4B32B6106B79ED0344CA"><enum>(B)</enum><text display-inline="yes-display-inline">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></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2955C6F2C19F497E8D796CAFA4B7F881"><enum>(8)</enum><header display-inline="yes-display-inline">Method of service</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6361CF2087C14DDA977BC82E8672FC42"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8F4D66B2F2FC48AD9E9485F3E49858F9"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5B1E842E7602457AA0FEEC1B2D253661"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9BBFC0C696964AF2B936A03EAE6397CF"><enum>(9)</enum><header display-inline="yes-display-inline">Proof of service</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9F3EB03C58264FFEB03C02E029EBF708"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD14EA15AF71841E7ADE333D4A0F63E4C"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF30049EA5104211B04ACBF6DEA2F112"><enum>(10)</enum><header display-inline="yes-display-inline">Production of documentary
material</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3D56170CD4964C5A94D44340266BCA1B"><enum>(11)</enum><header display-inline="yes-display-inline">Submission of tangible things</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H021804BFDAF948488B6A382F85F4C151"><enum>(12)</enum><header display-inline="yes-display-inline">Separate answers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2901C6468FEE4A1A99C20EAFC41EE0CC"><enum>(13)</enum><header display-inline="yes-display-inline">Testimony</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H39F6CF89C6B4485A8567D2C13CF1CED5"><enum>(A)</enum><header display-inline="yes-display-inline">Procedure</header>
<clause commented="no" display-inline="no-display-inline" id="HA6EBC045BF8F4EA1BAFE0BF66690635E"><enum>(i)</enum><header display-inline="yes-display-inline">Oath and recordation</header><text display-inline="yes-display-inline">The examination of any person pursuant to a
demand for oral testimony served under this subsection shall be taken before an
officer authorized to administer oaths and affirmations by the laws of the
United States or of the place where the examination is held. The officer before
whom oral testimony is to be taken shall put the witness on oath or affirmation
and shall personally, or by any individual acting under the direction of and in
the presence of the officer, record the testimony of the witness.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDAA83F3BB64344409ADEC0F0B3BFD242"><enum>(ii)</enum><header display-inline="yes-display-inline">Transcriptions</header><text display-inline="yes-display-inline">The testimony shall be taken
stenographically and transcribed.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB7D9683B46734B3CBEDD5C6B4734E310"><enum>(iii)</enum><header display-inline="yes-display-inline">Copy to custodian</header><text display-inline="yes-display-inline">After the testimony is fully transcribed,
the officer before whom the testimony is taken shall promptly transmit a copy
of the transcript of the testimony to the custodian.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H37C564EFD1734F51A63EAE2421594D65"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1A6F6DE8DC60449E9A8E1E8D8B178C1E"><enum>(C)</enum><header display-inline="yes-display-inline">Location</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17E890404D02472C9F8F004E51DC7539"><enum>(D)</enum><header display-inline="yes-display-inline">Attorney representation</header>
<clause commented="no" display-inline="no-display-inline" id="HF63F4862FD2B47C38D0F9C24B85F9457"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5DDD9465A174989AE2F2C7247B44437"><enum>(ii)</enum><header display-inline="yes-display-inline">Confidential advice</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAC132E34B04340CBB91C00102A5719A0"><enum>(iii)</enum><header display-inline="yes-display-inline">Objections</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47D7F60E19494A6B9624D56D56F45C97"><enum>(iv)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81F651ED59384E5A97AB825DB6D7F8B5"><enum>(v)</enum><header display-inline="yes-display-inline">Petition for order</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5AF1BB3BCE1D4F5FA0594666ABAF7E68"><enum>(vi)</enum><header display-inline="yes-display-inline">Basis for compelling
testimony</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4D6FA5C84DB34F74BF5A6E1011955147"><enum>(E)</enum><header display-inline="yes-display-inline">Transcripts</header>
<clause commented="no" display-inline="no-display-inline" id="H839AB873E0E3448D8E95B1DE2FD06F11"><enum>(i)</enum><header display-inline="yes-display-inline">Right to examine</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F53A8E0EE284FD2AEC319AD39FCA352"><enum>(ii)</enum><header display-inline="yes-display-inline">Reading the transcript</header><text display-inline="yes-display-inline">The transcript shall be read to or by the
witness, unless such examination and reading are waived by the witness.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H036BC4F8C471427C801D27F39FA5379E"><enum>(iii)</enum><header display-inline="yes-display-inline">Request for changes</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H024DA197552D4CD280CEF243F00E77FF"><enum>(iv)</enum><header display-inline="yes-display-inline">Signature</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF93DB264B2784FF784AC87638AA1DA95"><enum>(v)</enum><header display-inline="yes-display-inline">Agency action in lieu of
signature</header><text display-inline="yes-display-inline">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
officer or 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 commented="no" display-inline="no-display-inline" id="H148F9A9A0D754867B3AC315976B6B62F"><enum>(F)</enum><header display-inline="yes-display-inline">Certification by investigator</header><text display-inline="yes-display-inline">The officer 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 officer or the
Agency investigator shall promptly deliver the transcript or send it by
registered or certified mail to the custodian.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FABBE87F7FA44FF8FC915D81070343A"><enum>(G)</enum><header display-inline="yes-display-inline">Copy of transcript</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB4D3DFF7A51E419CAC105B125C60BD8F"><enum>(H)</enum><header display-inline="yes-display-inline">Witness fees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4262A97587404342AB0BC21AD7B0DC4A"><enum>(d)</enum><header display-inline="yes-display-inline">Confidential treatment of demand
material</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB5B3C4BFD0A44880A84037023EF49087"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF62FAED8D1B94EE681314D65E9C22FD1"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure to congress</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H715FF4F70BE94FD981FE0455EEC09DA1"><enum>(e)</enum><header display-inline="yes-display-inline">Petition for enforcement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H74C95AED94B84B7B847FC0DA772F75BD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8EA635512333405B96079DD501F71E56"><enum>(2)</enum><header display-inline="yes-display-inline">Service of process</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC5C929117C104DDA86842BCE4EC70E10"><enum>(f)</enum><header display-inline="yes-display-inline">Petition for order modifying or setting
aside demand</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2C2DB2D7CB5747678ABDF77F261FE168"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4361305BA8CB48648550905455E31A6B"><enum>(2)</enum><header display-inline="yes-display-inline">Compliance during pendency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H054AB9B4D27F48F09772F4816E246F4A"><enum>(3)</enum><header display-inline="yes-display-inline">Specific grounds</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7517912DEC5D4B01846B522AADEE8E5E"><enum>(g)</enum><header display-inline="yes-display-inline">Custodial control</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2727346476154E92BF02E52E46095692"><enum>(h)</enum><header display-inline="yes-display-inline">Jurisdiction of court</header>
<paragraph commented="no" display-inline="no-display-inline" id="H22345F05D99E47F29C659F886C0CD54B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H76AA593F056144B28A9861132DE0F956"><enum>(2)</enum><header display-inline="yes-display-inline">Appeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H54AD6A0C7794464685588EB1E59CEB86" section-type="subsequent-section"><enum>4503.</enum><header display-inline="yes-display-inline">Hearings and adjudication
proceedings</header>
<subsection commented="no" display-inline="no-display-inline" id="HE1EBB75805904D538322B1FD2F2C2AA8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC934429A322945CC96CB54804C12AA7A"><enum>(1)</enum><text display-inline="yes-display-inline">the provisions of this title, including any
regulations prescribed by the Director under this title; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H09B21495D78C4095B617C858A114E72D"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB169652C62F5442EA053042BC039ADAD"><enum>(b)</enum><header display-inline="yes-display-inline">Special rules for cease-and-desist
proceedings</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE96FD138EE34405FA154141045893DD2"><enum>(1)</enum><header display-inline="yes-display-inline">Issuance</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8CAFA805CB194431970ACF6903671ECB"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBE35CB6EDED3407E81BAEB86A9B57F52"><enum>(B)</enum><header display-inline="yes-display-inline">Contents of notice</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD771903228644518B5E4908F9093FC77"><enum>(C)</enum><header display-inline="yes-display-inline">Time of hearing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FB37D713FA64C81828497F10750E0AC"><enum>(D)</enum><header display-inline="yes-display-inline">Nonappearance deemed to be consent to
order</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF7F243C5AB1B4434AB0EC876F4342915"><enum>(E)</enum><header display-inline="yes-display-inline">Issuance of order</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4EDF2AD9595B4CCEB24CD63FD683B0FB"><enum>(F)</enum><header display-inline="yes-display-inline">Includes requirement for corrective
action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB9E7BB6EAA714BE98FAC4CCB98D03F1B"><enum>(2)</enum><header display-inline="yes-display-inline">Effectiveness of order</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E53B1AFF4314070BE2C42E793EAA12C"><enum>(3)</enum><header display-inline="yes-display-inline">Decision and appeal</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6DC3929639A44A728B1B03B9A4D0A668"><enum>(A)</enum><header display-inline="yes-display-inline">Place of and procedures for
hearing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBCBA0C85F619436CBCF4F8636609698C"><enum>(B)</enum><header display-inline="yes-display-inline">Time limit for decision</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0AD21D70833E41298BD69E17A0F147FE"><enum>(i)</enum><text display-inline="yes-display-inline">render its decision (which shall include
findings of fact upon which its decision is predicated) and shall issue;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD3118CB200B84AFFAE06F3466D351971"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDAC51FAB443648F7AC5DD485C3717742"><enum>(C)</enum><header display-inline="yes-display-inline">Modification of order
generally</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFDCB97058F4452BBA81D3AD1C4F0349"><enum>(D)</enum><header display-inline="yes-display-inline">Modification of order after filing record
on appeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA5DEA75297524B519DBC0E76E9948723"><enum>(4)</enum><header display-inline="yes-display-inline">Appeal to court of appeals</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3C23E410183A40CCBC165A47D2F09D00"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D526A9F25A844CDB1AEFF3480278AF3"><enum>(B)</enum><header display-inline="yes-display-inline">Transmittal of copy to the
Agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H322E49F8556A45099C4321C971931FC8"><enum>(C)</enum><header display-inline="yes-display-inline">Jurisdiction of court</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7DF95F84C43E48D4AAE2BE33C088B18A"><enum>(D)</enum><header display-inline="yes-display-inline">Scope of review</header><text display-inline="yes-display-inline">Review of such proceedings shall be had as
provided in chapter 7 of title 5 of the United States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5615B35D613046468EEA85410E4981AF"><enum>(E)</enum><header display-inline="yes-display-inline">Finality</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H27624C9D53F947AA86CDF494C709D18B"><enum>(5)</enum><header display-inline="yes-display-inline">No stay</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H32C50C3E16024BFD8CE4512DE3A7E70F"><enum>(c)</enum><header display-inline="yes-display-inline">Special rules for temporary
cease-and-desist proceedings</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE0EC6E6150A04FD1A77C66B4637B6C39"><enum>(1)</enum><header display-inline="yes-display-inline">Issuance</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H62527C59C5A34BE296B8140BA0F0FC6D"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95D6284885B5485CBC8C01E389268B08"><enum>(B)</enum><header display-inline="yes-display-inline">Other requirements</header><text display-inline="yes-display-inline">Any temporary order issued under this
paragraph may include any requirement authorized under this subtitle.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4836B4A10D864E6DA8BC049E16916068"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA6C19C1520F407B8AA1FFDC9B70998B"><enum>(2)</enum><header display-inline="yes-display-inline">Appeal</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H937C3560A22E44A8BE3A26BF42B42059"><enum>(3)</enum><header display-inline="yes-display-inline">Incomplete or inaccurate records</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCF03CDA32D7B49EAA6FB2CC424039A2F"><enum>(A)</enum><header display-inline="yes-display-inline">Temporary order</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7D0087C88AB343749D3089EA00DBCBAC"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16E8A40099774D0FAE24952DE32F619F"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF184A8FC7B6B47C788FE34F65D50EDDC"><enum>(B)</enum><header display-inline="yes-display-inline">Effective period</header><text display-inline="yes-display-inline">Any temporary order issued under
subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="HF9B99E2CA24C47FD887DEA87661D6FDC"><enum>(i)</enum><text display-inline="yes-display-inline">shall take effect upon service; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6ECB604F70974401BA78905A7C1FC09C"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E6D171773C94E3C9C2B6E86EC0F914F"><enum>(I)</enum><text display-inline="yes-display-inline">the completion of the proceeding initiated
under subsection (b) in connection with the notice of charges; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4C0A4EBBC4C64A36AFF899ACC80278C7"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEB4E2AD9AE494CF8B852293012BA094F"><enum>(d)</enum><header display-inline="yes-display-inline">Special rules for enforcement of
orders</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC133AAF123A243318898C97752B42EC3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H892218BA087C4FBF9663B1FE8AC246EA"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7684CD0C08B24648A5005D5AE38C31B8"><enum>(e)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Director shall prescribe regulations
establishing such procedures as may be necessary to carry out this
section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H976CD47309AC439D96DBE3E594FD5437" section-type="subsequent-section"><enum>4504.</enum><header display-inline="yes-display-inline">Litigation authority</header>
<subsection commented="no" display-inline="no-display-inline" id="HF25F53363F5D49D382A8ED7BC3E791EC"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCE05395D763E4BAE958469046A81A3D9"><enum>(b)</enum><header display-inline="yes-display-inline">Representation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCE3C3610608848598C7F6EF7013318A8"><enum>(c)</enum><header display-inline="yes-display-inline">Compromise of actions</header><text display-inline="yes-display-inline">The Agency may compromise or settle any
action if such compromise is approved by the court.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6EF927308D81417DBEFB7B32C0DAFC5E"><enum>(d)</enum><header display-inline="yes-display-inline">Notice to the attorney
general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H44B0FDD9D6094D2BBD34E200DE808644"><enum>(e)</enum><header display-inline="yes-display-inline">Appearance before the supreme
court</header><text display-inline="yes-display-inline">The Agency may
represent itself in its own name before the Supreme Court of the United States,
if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA4539AE48B4C4FB4BE71074CD78F2B73"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE819FB07BA4E482693281616DAF41A1C"><enum>(2)</enum><text display-inline="yes-display-inline">the Attorney General concurs with such
request or fails to take action within 60 days of the Agency’s request.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H47280F1D9DA44273A14CE44866E65783"><enum>(f)</enum><header display-inline="yes-display-inline">Forum</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H02118A7E93EA407A8BD2470C6A6E0FD3"><enum>(g)</enum><header display-inline="yes-display-inline">Time for bringing action</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBCF4E1A28DF445A7BD285B5E15F99690"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6683B9D0C1CC4A9CBDCBC6F3C86964A4"><enum>(2)</enum><header display-inline="yes-display-inline">Limitations under other federal
laws</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H72F3EF0C6C9A4215BD8278000BA6E0EB"><enum>(A)</enum><text display-inline="yes-display-inline">For purposes of this section, an action
arising under this title shall not include claims arising solely under
enumerated consumer laws.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD4F2CCD151014A91A86FDEC39C5562E4"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0E078791325049699D15944A436F3062"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE456BA35C8BD421B89E606F5A449D9A7" section-type="subsequent-section"><enum>4505.</enum><header display-inline="yes-display-inline">Relief available</header>
<subsection commented="no" display-inline="no-display-inline" id="HE27BCF2476F84B4C8DB1D17EFB6D2CC4"><enum>(a)</enum><header display-inline="yes-display-inline">Administrative proceedings or court
actions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H53F84B7F19B244EAB488FAC0AF9655D0"><enum>(1)</enum><header display-inline="yes-display-inline">Jurisdiction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6043C8E76F994900B52F45C468843AC7"><enum>(2)</enum><header display-inline="yes-display-inline">Relief</header><text display-inline="yes-display-inline">Such relief may include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H43C9F9CF8B0F4D7ABDCC234436133B53"><enum>(A)</enum><text display-inline="yes-display-inline">rescission or reformation of
contracts;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75CDC9541FF44162A4CA2DBFD3128385"><enum>(B)</enum><text display-inline="yes-display-inline">refund of moneys or return of real
property;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7866E7CF66A34CE8988418164DE6B9F1"><enum>(C)</enum><text display-inline="yes-display-inline">restitution;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDF46E7CF821947EFAF0A96AF7EAFFA03"><enum>(D)</enum><text display-inline="yes-display-inline">disgorgement or compensation for unjust
enrichment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0EE88153DC143599E9405FE94047716"><enum>(E)</enum><text display-inline="yes-display-inline">payment of damages;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBEC10DF8537C401FA1038D67561416EE"><enum>(F)</enum><text display-inline="yes-display-inline">public notification regarding the
violation, including the costs of notification;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H70D883FAF9A14072AD9F394301E5D775"><enum>(G)</enum><text display-inline="yes-display-inline">limits on the activities or functions of
the person; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBB86D212E8A84691B8AE62905F1959E2"><enum>(H)</enum><text display-inline="yes-display-inline">civil money penalties under subsection
(c).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H729A1B577C8D43CC84DDBB8550FD9CD0"><enum>(3)</enum><header display-inline="yes-display-inline">No exemplary or punitive
damages</header><text display-inline="yes-display-inline">Nothing in this
subsection shall be construed as authorizing the imposition of exemplary or
punitive damages.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBDA09D111FE34959950A55E4A3C9C8A3"><enum>(b)</enum><header display-inline="yes-display-inline">Recovery of costs</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H198B6FF517EF432BBC46A18BD0FE26AD"><enum>(c)</enum><header display-inline="yes-display-inline">Civil money penalty in court and
administrative actions</header>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H6F4D757E6622477B936CDE5F3C008713"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0C828B46589475B9FFEEF4A82FCAC90"><enum>(B)</enum><header display-inline="yes-display-inline">Second tier</header><text display-inline="yes-display-inline">Notwithstanding paragraph (A), 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 commented="no" display-inline="no-display-inline" id="H03646185A23F4BAC9549D838D1154BFC"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB1635BBAF7434019B1DD40C9C2AC1AE7"><enum>(2)</enum><header display-inline="yes-display-inline">Mitigating factors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29FF91CBE0B6436FB0874A003A00D956"><enum>(A)</enum><text display-inline="yes-display-inline">the size of financial resources and good
faith of the person charged;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7B4A3683E5BA492FAED89F04974D8B4A"><enum>(B)</enum><text display-inline="yes-display-inline">the gravity of the violation or failure to
pay;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1E1AD5D3258F415B808ADE6115E354CA"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF6F17C52E3A44D689CC1B312CB3C5984"><enum>(D)</enum><text display-inline="yes-display-inline">the history of previous violations;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2CBC82BAD9F547808CADA6594FB6B647"><enum>(E)</enum><text display-inline="yes-display-inline">such other matters as justice may
require.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50B5EAE74FF64921ABA60DABF4425954"><enum>(3)</enum><header display-inline="yes-display-inline">Authority to modify or remit
penalty</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC9D092BA08334FC1954D798D857941B5"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47DA265CBC2D4CC8A9FBE519250E4E4A"><enum>(A)</enum><text display-inline="yes-display-inline">the Agency gives notice and an opportunity
for a hearing to the person accused of the violation; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H11724D56351C4B7AACC779260F0FDBBF"><enum>(B)</enum><text display-inline="yes-display-inline">the appropriate court has ordered such
assessment and entered judgment in favor of the Agency.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H033909898918499E9A8249C1AFA77859" section-type="subsequent-section"><enum>4506.</enum><header display-inline="yes-display-inline">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 shall 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 commented="no" display-inline="no-display-inline" id="HB730C4EEC467465EA10C3E5F8BDA5F80" section-type="subsequent-section"><enum>4507.</enum><header display-inline="yes-display-inline">Employee protection</header>
<subsection commented="no" display-inline="no-display-inline" id="H615A2F465D8241DC94055737C71A00E5"><enum>(a)</enum><text display-inline="yes-display-inline">No covered person 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) has—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA27E985E59F944CF816F14099E11C9D6"><enum>(1)</enum><text display-inline="yes-display-inline">provided information to the Agency or to
any other state, local, Federal, or tribal government entity, filed, instituted
or caused to be filed or instituted any proceeding under this title, any
enumerated consumer law, any law for which authorities were transferred by
subtitles F and H, or has testified or is about to testify in any proceeding
resulting from the administration or enforcement of the provisions of this
title; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28E80D056DAA431EB90716BE3216EE23"><enum>(2)</enum><text display-inline="yes-display-inline">objected to, or refused to participate in,
any activity, policy, practice, or assigned task that the employee (or other
such person) reasonably believed to be in violation of any law, rule, or
regulation, or to be unfair, deceptive, or abusive and likely to cause specific
and substantial injury to one or more consumers.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7EC08FA6D2294FA38BAB307D494EEAAD"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H0D342C6E4D0540199BDB9A38CDBA825D"><enum>(1)</enum><text display-inline="yes-display-inline">A person who believes that he or she has
been discharged or otherwise discriminated against by any person in violation
of subsection (a) may, not later than 180 days after the date on which such
violation occurs, file (or have any person file on his or her behalf) a
complaint with the Secretary of Labor alleging such discharge or discrimination
and identifying the person responsible for such act. Upon receipt of such a
complaint, the Secretary shall notify, in writing, the person named in the
complaint of the filing of the complaint, of the allegations contained in the
complaint, of the substance of evidence supporting the complaint, and of the
opportunities that will be afforded to such person under paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H55517C7948CC418B82B6355C04AE4C9E" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9633F1C40F1A4EDB81FA057673F91AB2"><enum>(A)</enum><text display-inline="yes-display-inline">Not later than 60 days after the date of
receipt of a complaint filed under paragraph (1) and after affording the
complainant and the person named in the complaint 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. 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). Not
later than 30 days after the date of notification of findings under this
paragraph, either the person alleged to have committed the violation or the
complainant may file objections to the findings or preliminary order, or both,
and request a hearing on the record. The filing of such objections shall not
operate to stay any reinstatement remedy contained in the preliminary order.
Any such hearing shall be conducted expeditiously. If a hearing is not
requested in such 30-day period, the preliminary order shall be deemed a final
order that is not subject to judicial review.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A04B895A03244E69C6BA00EEDF75E4E" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H9A37AC9C530F49AA88A168CAE2696F2A"><enum>(i)</enum><text display-inline="yes-display-inline">The Secretary shall dismiss a complaint
filed under this subsection and shall not conduct an investigation otherwise
required under subparagraph (A) unless the complainant makes a prima facie
showing that any behavior described in paragraphs (1) through (4) of subsection
(a) was a contributing factor in the unfavorable personnel action alleged in
the complaint.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H27698FACD0934F04A985505C92AA3F61" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">Notwithstanding a finding by the Secretary
that the complainant has made the showing required under clause (i), no
investigation otherwise required under subparagraph (A) 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 commented="no" display-inline="no-display-inline" id="H920ABC2D9BB04A809A5EAD0CE009E025" indent="up1"><enum>(iii)</enum><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 paragraphs (1) through (4) of subsection (a) was
a contributing factor in the unfavorable personnel action alleged in the
complaint.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB6550CAFD12E4B16B6F67E2A43AD221D" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">Relief may not be ordered under
subparagraph (A) if the employer demonstrates by clear and convincing evidence
that the employer would have taken the same unfavorable personnel action in the
absence of that behavior.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06EAF6F2B6724683B52C697755024C7D" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H2163051831684BB996E94C29288DB759"><enum>(A)</enum><text display-inline="yes-display-inline">Not later than 120 days after the date of
conclusion of any hearing under paragraph (2), the Secretary shall issue a
final order providing the relief prescribed by this paragraph or denying the
complaint. At any time before issuance of a final order, a proceeding under
this subsection may be terminated on the basis of a settlement agreement
entered into by the Secretary, the complainant, and the person alleged to have
committed the violation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C7063D80FDB4D94BB4D9A57D93FC5CC" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBD9638E9BDD4428A1BBAF20FE3C1ECD"><enum>(i)</enum><text display-inline="yes-display-inline">to take affirmative action to abate the
violation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1A21019E26B844D68D1C1E4322A31B4F"><enum>(ii)</enum><text display-inline="yes-display-inline">to reinstate the complainant to his or her
former position together with compensation (including back pay) and restore the
terms, conditions, and privileges associated with his or her employment;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA13B480B0B0D49CBBF8F76586BB0192A"><enum>(iii)</enum><text display-inline="yes-display-inline">to provide compensatory damages to the
complainant. If such 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>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H38BD0B9F04BE4D899C2F5EE6B56A84EF" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFF5EEBC725C641AD846FB214D4188566" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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 may bring an action at
law or equity for de novo review in the appropriate district court of the
United States with jurisdiction, which shall have jurisdiction over such an
action without regard to the amount in controversy, and which action shall, at
the request of either party to such action, be tried by the court with a jury.
The proceedings shall be governed by the same legal burdens of proof specified
in paragraph (2)(B). The court shall have jurisdiction to grant all relief
necessary to make the employee whole, including injunctive relief and
compensatory damages, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFB155E57839649BD8E697F36A7C12286"><enum>(A)</enum><text display-inline="yes-display-inline">reinstatement with the same seniority
status that the employee would have had, but for the discharge or
discrimination;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE55F58E888B0422DA33F7666794A3BCE"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of back pay, with interest;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB58D09703DC546609990EA3B016A837C"><enum>(C)</enum><text display-inline="yes-display-inline">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>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE09DBDECC2B74B078DC45880C800E537" indent="up1"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAD8F4BC020454204B88D1E857F3F1042"><enum>(A)</enum><text display-inline="yes-display-inline">Unless the complainant brings an action
under paragraph (4), any person adversely affected or aggrieved by a final
order issued under paragraph (3) 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. The petition for review must
be filed not later than 60 days after the date of the issuance of the final
order of the Secretary. Review shall conform to chapter 7 of title 5, United
States Code. The commencement of proceedings under this subparagraph shall not,
unless ordered by the court, operate as a stay of the order.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC4035CBFE68343C1897D8882C4802FB1" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6B8901AC58B405DB634508A7B48DE12" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">Whenever any person has failed to comply
with an order issued under paragraph (3), 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. In actions brought under this paragraph, the
district courts shall have jurisdiction to grant all appropriate relief
including, but not limited to, injunctive relief and compensatory
damages.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H284C06E502A148508F14470A74B4513A" indent="up1"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H7C6CD38815A94F97AB0B530E3F602490"><enum>(A)</enum><text display-inline="yes-display-inline">A person on whose behalf an order was
issued under paragraph (3) may commence a civil action against the person to
whom such order was issued to require compliance with such order. The
appropriate United States district court shall have jurisdiction, without
regard to the amount in controversy or the citizenship of the parties, to
enforce such order.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE1C8EC6C77A4DA895629C6B27B51972" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H21DB427B29564B9DB788BC49D8E44830"><enum>(c)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A29A1C0A01A4B4BA3CA6317BCCDBE8A"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H566A95FF034E40EE9EB80C8BDDDF8A45"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE952FDC65FB0436793084D225FD32DFA" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Except as provided under paragraph (3), no
predispute arbitration agreement shall be valid or enforceable if it requires
arbitration of a dispute arising under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H498272253848429A90D438CD0601EB45"><enum>(e)</enum><text display-inline="yes-display-inline">Notwithstanding paragraphs (1) and (2), an
arbitration provision in a collective bargaining agreement shall be enforceable
as to disputes arising under paragraph (a)(2) of this section unless the Agency
determines by rule that such provision is inconsistent with the purposes of
this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAA9126701DAA4CF6AF1944FF75FE4AB1"><enum>(f)</enum><text display-inline="yes-display-inline">Any employer receiving covered funds shall
post notice of the rights and remedies provided under this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC961FB459A60442CBB00A107840435E5" section-type="subsequent-section"><enum>4508.</enum><header display-inline="yes-display-inline">No private right of action</header><text display-inline="no-display-inline">Nothing in this title shall be construed to
create a private right of action, but this section shall not be construed or
interpreted to deny any private right of action arising under the enumerated
consumer laws or the authorities transferred under subtitle F or H.</text>
</section><section commented="no" display-inline="no-display-inline" id="HB7D9380D968B4F5DB003B5B2B7DCF7AA" section-type="subsequent-section"><enum>4509.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section></subtitle><subtitle commented="no" id="H75776DED962F4EDDA5F628B2C127C85A" level-type="subsequent"><enum>F</enum><header display-inline="yes-display-inline">Transfer of Functions and Personnel;
Transitional Provisions</header>
<section commented="no" display-inline="no-display-inline" id="HCE1939CEC2054EC3AD74EACFBC7F3D3B" section-type="subsequent-section"><enum>4601.</enum><header display-inline="yes-display-inline">Transfer of certain functions</header>
<subsection commented="no" display-inline="no-display-inline" id="HDE008F1603464D7287B6EDB36F6086A2"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b),
consumer financial protection functions are transferred as follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4E7AEFD1219B4E86A0F254A3714B3E35"><enum>(1)</enum><header display-inline="yes-display-inline">Board of governors</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H749D2F5DB189419DAF8EEF7201C54903"><enum>(A)</enum><header display-inline="yes-display-inline">Transfer of functions</header><text display-inline="yes-display-inline">All consumer financial protection functions
of the Board of Governors are transferred to the Director.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9F36B4CEC69B4D3BA02C598AFB63133B"><enum>(B)</enum><header display-inline="yes-display-inline">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><subparagraph commented="no" display-inline="no-display-inline" id="H7547EA2121234090B4332C60563FED00"><enum>(C)</enum><header display-inline="yes-display-inline">Retention of Consumer Advisory
Council</header>
<clause commented="no" display-inline="no-display-inline" id="H69A84B0BD8FD425FA37B3FEB4DA5D0B3"><enum>(i)</enum><header display-inline="yes-display-inline">Retention and continuation</header><text display-inline="yes-display-inline">Notwithstanding the transfer of functions
under subparagraph (A), the Consumer Advisory Council established by the Board
of Governors pursuant to section 703(b) of Public Law 90–321 (15 U.S.C.
1691b(b)) shall continue as an entity within the Federal Reserve System.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFC881990893040EBAE96D0F7E0563E09"><enum>(ii)</enum><header display-inline="yes-display-inline">Additional functions</header><text display-inline="yes-display-inline">In addition to the functions performed by
the Consumer Advisory Council as of the designated transfer date, the Consumer
Advisory Council shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="HF0C3ECF5997D487ABF3C5BB198CA76F3"><enum>(I)</enum><text display-inline="yes-display-inline">submit to the Director (and make available
to the public) an annual set of recommendations for consumer protection
regulations and meet with the Director to discuss the annual
recommendations;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5CE99F5D915448C2A39DB24A87731CFE"><enum>(II)</enum><text display-inline="yes-display-inline">meet with the Board of Governors of the
Federal Reserve System at least once a year and provide oral or written
representations concerning matters within the jurisdiction of the Board;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H38533776219A4C19BCAF71474DC4CB7A"><enum>(III)</enum><text display-inline="yes-display-inline">call for information and make
recommendations in regard to consumer protection regulations.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HF61F32735F66449297DCD3B921868092"><enum>(iii)</enum><header display-inline="yes-display-inline">Response to recommendations</header><text display-inline="yes-display-inline">When the Chair of the Federal Reserve
testifies before Congress, the Chair shall also testify about the
recommendations of the Consumer Advisory Council under clause (ii)(II) and its
recommendations for consumer protection regulations.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4538AB7736D346F989B3511BA1F6214C"><enum>(2)</enum><header display-inline="yes-display-inline">Comptroller of the currency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBCD32838CC924AC9BDC24319EE4BA2FA"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B2BDA76E33D42A79F43C570C9872603"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6910101448F8437D9A3121E50EE341B3"><enum>(3)</enum><header display-inline="yes-display-inline">Director of the office of thrift
supervision</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD160B7F4C9DE4952AF1CFEA0CA7F1A3F"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4FADD071974473B8E72221C2448BDD8"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8FDBC78DFC6646BAA2A64E1AAAD0DAAB"><enum>(4)</enum><header display-inline="yes-display-inline">Federal deposit insurance
corporation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9AF772957ABA4A219CBDA6D7C6DE470B"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H55A1FF3FD3BD49D2B296404D780E6419"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2B899DD32BE4499AA8DC6EC0AB60FA0"><enum>(5)</enum><header display-inline="yes-display-inline">Federal trade commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB9CE1D7EF4B54180A5B0185033EE9B38"><enum>(A)</enum><header display-inline="yes-display-inline">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). This transfer shall not be
subject to the provisions of section 3503 of title 5, United States
Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A1470ABBF31450BAE0259F875645C1E"><enum>(B)</enum><header display-inline="yes-display-inline">Federal Trade Commission
authority</header><text display-inline="yes-display-inline">The Agency shall
have all powers and duties that were vested in the Federal Trade Commission
that were contained within the enumerated statutes, except as provided in
section 4202(e), on the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11B58F1E4B4142C68E5A6E5073DBD501"><enum>(6)</enum><header display-inline="yes-display-inline">National credit union
administration</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H50817F56FEE242518C2DCA66CCE287A5"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCB002CB05A58471FB8D9B88312A9EBE1"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2584E38165674ED98D431523B022FBDB"><enum>(7)</enum><header display-inline="yes-display-inline">Secretary of housing and urban
development</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6363B352B67343A6B0E0E05276C0DC59"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H394F11B9B0C343BBB651B9B78C401F70"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1166E7C8BCC447AC90F9824F7C49A6F3"><enum>(b)</enum><header display-inline="yes-display-inline">Transfers of functions subject to
enforcement authority remaining with transferor agencies</header><text display-inline="yes-display-inline">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
paragraph (2) or (3) of section 4202(e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE4BC01763AD34B88B84CCDBF32D7CE80"><enum>(c)</enum><header display-inline="yes-display-inline">Termination of authority of transferor
agencies To collect fees for consumer financial protection
purposes</header><text display-inline="yes-display-inline">Authorities of the
agencies identified in subsection (a) to assess and collect fees to cover the
cost of conducting consumer financial protection functions transferred under
subsection (a) shall terminate on the day before the designated transfer
date.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H66666D39DD5C455882DDE64F6CDC8C22"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H02024F322E8349BCA470723205FEA1B4"><enum>(e)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Subsections (a) and (b)
shall take effect on the designated transfer date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H292C3974327144228EF338E640446D93" section-type="subsequent-section"><enum>4602.</enum><header display-inline="yes-display-inline">Designated transfer date</header><text display-inline="no-display-inline">The designated transfer date shall be 180
days after the date of enactment of this title.</text>
</section><section commented="no" display-inline="no-display-inline" id="H6EA44E6C7F4B44B880582C904136E1E1" section-type="subsequent-section"><enum>4603.</enum><header display-inline="yes-display-inline">Savings provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="HF9F2BC910F124EE0A0BA16C6F9DC66B2"><enum>(a)</enum><header display-inline="yes-display-inline">Board of governors</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAAF91B6621E6401994D901C0ED8CD132"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H44875968915C4C3DAE226DC19C0F55C8"><enum>(B)</enum><text display-inline="yes-display-inline">existed on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H503806F974A140CA8E561937906E9898"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H9305D6B53F8E4E97B742064519703135"><enum>(b)</enum><header display-inline="yes-display-inline">Federal deposit insurance
corporation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H81E60905549842C89569D43EA4B3DB5C"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H688AC0C75FFA4C42BCEC0847CFC5616E"><enum>(B)</enum><text display-inline="yes-display-inline">existed on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF173D516DDE447C9BAB10A4A5C7A0293"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H6FFC4A0B97F5458AB816834201B094CD"><enum>(c)</enum><header display-inline="yes-display-inline">Federal Trade Commission</header><text display-inline="yes-display-inline">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>
<paragraph commented="no" display-inline="no-display-inline" id="H9AA71396F6D64170B07110B05EE8C42A"><enum>(1)</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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF577D954E4004E00A30147974F775537"><enum>(2)</enum><text display-inline="yes-display-inline">existed on the day before the designated
transfer date.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H16A87278D4D54A51BB6DCD2F347A036C"><enum>(d)</enum><header display-inline="yes-display-inline">National credit union
administration</header>
<paragraph commented="no" display-inline="no-display-inline" id="H50D89163405F4D51B224B0C8BFF45BA8"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H48F5215C50B1496F981394E4E6D680B9"><enum>(B)</enum><text display-inline="yes-display-inline">existed on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D9457A7F17640E986412ADF864A07DF"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H240DC855996A468B83A33CC984CF03D8"><enum>(e)</enum><header display-inline="yes-display-inline">Comptroller of the Currency</header>
<paragraph commented="no" display-inline="no-display-inline" id="H572ECBACAD4F45588C9A280177C0EB70"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA762436B3DC5494BA54B0011A148ABAD"><enum>(B)</enum><text display-inline="yes-display-inline">existed on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H68E4942E46844FA385AA716BF78D2A7D"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H003F794D619141E3A19570BE0E4E5FE8"><enum>(f)</enum><header display-inline="yes-display-inline">Director of the office of thrift
supervision</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1E0F469B6E2E4F219A08D319251A2D3F"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HAB3D55C07D80489FA21E64ABCE88D645"><enum>(B)</enum><text display-inline="yes-display-inline">that existed on the day before the
designated transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2BA0881FDAC4BF98ADC153A45DE0688"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H34360B5D24844928BEC267D4C6AFF093"><enum>(g)</enum><header display-inline="yes-display-inline">Secretary of housing and urban
development</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF1ADD2266B834182801F13169946847B"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HEC8E298A487944C6B547D4E25599E809"><enum>(B)</enum><text display-inline="yes-display-inline">that existed on the day before the
designated transfer date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2CC9856F8434155AAA83F965D400BF0"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">this title shall not abate any 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 commented="no" display-inline="no-display-inline" id="H9BA4D8503FE044A4A466D6AEDDC0E9E3"><enum>(h)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9A9CAB6BF313423A8F64930601D27FC9"><enum>(i)</enum><header display-inline="yes-display-inline">Identification of regulations
continued</header><text display-inline="yes-display-inline">Not later than the
designated transfer date, the Director—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC69273875F8C48E9A2FE831B90A073E9"><enum>(2)</enum><text display-inline="yes-display-inline">shall publish a list of such regulations in
the Federal Register.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB5B95C9CAD1246A6962B0F5F292187FD"><enum>(j)</enum><header display-inline="yes-display-inline">Status of regulations proposed or not yet
effective</header>
<paragraph commented="no" display-inline="no-display-inline" id="H41493B27A8B34FFBB4238BE8931F9BE1"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H53A39012DE664411A8BDBF2D0BA48FC2"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations not yet effective</header><text display-inline="yes-display-inline">Any interim or final regulation of 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 commented="no" display-inline="no-display-inline" id="H848F4813EAC146B1815AB257B1CF3F99" section-type="subsequent-section"><enum>4604.</enum><header display-inline="yes-display-inline">Transfer of certain personnel</header>
<subsection commented="no" display-inline="no-display-inline" id="HC285D185A263460F8AC281FDEB2A7DEC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7DDA353FEB7344C5B87BD7394FA583AB"><enum>(1)</enum><header display-inline="yes-display-inline">Certain federal reserve system employees
transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBACAA113EFBC493785478890CDD1CEA7"><enum>(A)</enum><header display-inline="yes-display-inline">Identifying employees for
transfer</header><text display-inline="yes-display-inline">The Director and the
Board of Governors shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H248C305820A346D6840F4B183EA3D916"><enum>(B)</enum><header display-inline="yes-display-inline">Identified employees
transferred</header><text display-inline="yes-display-inline">All employees of
the Board of Governors identified under subparagraph (A)(ii) shall be
transferred to the Agency for employment.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA183044FEA1D467492CCCECE57EF768C"><enum>(C)</enum><header display-inline="yes-display-inline">Federal reserve bank
employees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB98E7C69567947958ADEC3D7AC791182"><enum>(2)</enum><header display-inline="yes-display-inline">Certain fdic employees transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7A1641B700E64C1F9CCDD14FE1BEF6EA"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H48060CB35C7044409097D3345E29E1F6"><enum>(B)</enum><header display-inline="yes-display-inline">Identified employees
transferred</header><text display-inline="yes-display-inline">All employees of
the Corporation identified under subparagraph (A)(ii) shall be transferred to
the Agency for employment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HECA9DE98088F4CF5A8EAF4F618D0C530"><enum>(3)</enum><header display-inline="yes-display-inline">Certain ncua employees transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H868EAB503F92423999A218D09BA44C9B"><enum>(A)</enum><header display-inline="yes-display-inline">Identifying employees for
transfer</header><text display-inline="yes-display-inline">The Director and the
National Credit Union Administration Board shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H29F0141D40BA412A85E9E9BF656589A9"><enum>(B)</enum><header display-inline="yes-display-inline">Identified employees
transferred</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H69EFB39F1F3649048F610A5E20FD793C"><enum>(4)</enum><header display-inline="yes-display-inline">Certain hud employees transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA38FDE18CC645B286AAF7BA52944340"><enum>(A)</enum><header display-inline="yes-display-inline">Identifying employees for
transfer</header><text display-inline="yes-display-inline">The Director and the
Secretary of Housing and Urban Development shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H556708B5885C4D65A0BCE7CFC146D888"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFFF6A15DB5E741E285E344D19C483FFC"><enum>(5)</enum><header display-inline="yes-display-inline">Appointment authority for excepted service
and senior executive service transferred</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H976BA2BEDF1542F79E7E825884045D17"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD6B63D637B874B92B81675D630405DBC"><enum>(B)</enum><header display-inline="yes-display-inline">Declining transfers allowed</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFA7DF937F3A4C528296D44675CB8C5D"><enum>(b)</enum><header display-inline="yes-display-inline">Timing of transfers and position
assignments</header><text display-inline="yes-display-inline">Each employee to
be transferred under this section shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0F716BE287294214B1E4004B94CF5DEC"><enum>(1)</enum><text display-inline="yes-display-inline">be transferred not later than 90 days after
the designated transfer date; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H268DB1C627AA441DBB67B3C5845AA4E4"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29D2232B852C41DEB1C475B2500BE676"><enum>(c)</enum><header display-inline="yes-display-inline">Transfer of function</header>
<paragraph commented="no" display-inline="no-display-inline" id="H77EA1BEA088C4792A2C78D2F4AC5A12A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H891DBED13C05436F8A9B4B49ADC1338F"><enum>(2)</enum><header display-inline="yes-display-inline">Priority of this title</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C2F4D7E8C7F4141A6CED1B794469EDB"><enum>(d)</enum><header display-inline="yes-display-inline">Equal status and tenure positions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAFD8AE38BCB4485E8F7B6EDE2C763CF7"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52A0934737344C5D9F57D30D44DF5A71"><enum>(2)</enum><header display-inline="yes-display-inline">Employees transferred from the federal
reserve system</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF431869DE4B54483B368ACBFF96082C3"><enum>(A)</enum><header display-inline="yes-display-inline">Comparability</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8972249820E8491982C92674ADCCB93F"><enum>(B)</enum><header display-inline="yes-display-inline">Service periods credited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0A9791A2E5F54C06A5757415F104C7ED"><enum>(e)</enum><header display-inline="yes-display-inline">Additional certification requirements
limited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E572B9DEC8349778BD2B79112E002DB"><enum>(f)</enum><header display-inline="yes-display-inline">Personnel actions limited</header>
<paragraph commented="no" display-inline="no-display-inline" id="H739999EF0F80427CB32CE86915701258"><enum>(1)</enum><header display-inline="yes-display-inline">5-year protection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H71E98B9D48274B7A96BA23942633ED91"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Paragraph (1) shall not be construed as
limiting the right of the Director to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H74724F02E1754A958AAF872D767E4FD5"><enum>(A)</enum><text display-inline="yes-display-inline">separate an employee for cause or for
unacceptable performance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB8B4F1E9E72B4E8693C428C7D2BCB657"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H22D797B2A47140FB947FFBA65046AB71"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08E56A81589443CFA26E20E873CBA13C"><enum>(g)</enum><header display-inline="yes-display-inline">Pay</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF541FBC90F6941559581DE52D509E0C2"><enum>(1)</enum><header display-inline="yes-display-inline">1-year protection</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE2C90E851608474E881853840B19E266"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9D779B41C7504E9786BE0DA7192E0260"><enum>(A)</enum><text display-inline="yes-display-inline">for cause;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5AB06CCDBE3B4B13B89A2FF83BB6DCE3"><enum>(B)</enum><text display-inline="yes-display-inline">for unacceptable performance; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF7A3ADC4B38D434EBF55362092C64CB2"><enum>(C)</enum><text display-inline="yes-display-inline">with the employee’s consent.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBB4BECB0DB64BCB8200DC659941F82B"><enum>(3)</enum><header display-inline="yes-display-inline">Protection only while
employed</header><text display-inline="yes-display-inline">Paragraph (1)
applies to a transferred employee only while that employee remains employed by
the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B6C3C851DAF47B0843414E2AF9D624B"><enum>(4)</enum><header display-inline="yes-display-inline">Pay increases permitted</header><text display-inline="yes-display-inline">Paragraph (1) shall not be construed as
limiting the authority of the Agency to increase a transferred employee’s
pay.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H309123EBA55E4365B69BCFD49E21364A"><enum>(h)</enum><header display-inline="yes-display-inline">Reorganization</header>
<paragraph commented="no" display-inline="no-display-inline" id="H55FD47BBB60E4938A5223ABC5F3D81E9"><enum>(1)</enum><header display-inline="yes-display-inline">Between 1st and 3rd year</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F885EF3EE294653B8590671047CF3D6"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF31FD7AF09E74B0D875A59F2DB06BF1C"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H79FA17B721F3406481F1AC425211DD47"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA74FE232247645FD9689D974F750031B"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H361D19CAF09840E3B5C2ECDBAF2E596B"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H52EF14457DBC447C8C42CE92662328B8"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFEAA72747E545AC924EBD213EBF54DF"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H436718CA01194844B787604451B821D0"><enum>(B)</enum><header display-inline="yes-display-inline">Service credit for reductions in
force</header><text display-inline="yes-display-inline">For purposes of this
paragraph, periods of service with the Board of Governors, a Federal reserve
bank, the Federal Deposit Insurance Corporation, the National Credit Union
Administration, or the Federal Home Loan Bank Board or any successor to such
Board shall be credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB5AC094D7CA4468BE551B1D5FACFFD7"><enum>(2)</enum><header display-inline="yes-display-inline">After 3rd year</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H31C5EE05983B468B964EABAABA42D7F0"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29059418FDE64D84B6ADFFD5A9412EE4"><enum>(B)</enum><header display-inline="yes-display-inline">Service credit for reductions in
force</header><text display-inline="yes-display-inline">For purposes of this
paragraph, periods of service with the Board of Governors, a Federal reserve
bank, the Federal Deposit Insurance Corporation, the National Credit Union
Administration, or the Federal Home Loan Bank Board or any successor to such
Board shall be credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1DC9EAE0FAD24381916D91BB86532A61"><enum>(i)</enum><header display-inline="yes-display-inline">Benefits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1E80EDECE8934875B8952D6A8E9F0AA3"><enum>(1)</enum><header display-inline="yes-display-inline">Retirement benefits for transferred
employees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H21F643080D8749BC97CD584BAF9F3FA6"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header>
<clause commented="no" display-inline="no-display-inline" id="HF7A40B45DE034043B4B48473272FE52D"><enum>(i)</enum><header display-inline="yes-display-inline">Continuation of existing retirement
plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA6B61709BBBB4931BB97EE9871B36434"><enum>(ii)</enum><header display-inline="yes-display-inline">Employer’s contribution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4D4601340CB7403F967BA83ED00BAD8D"><enum>(B)</enum><header display-inline="yes-display-inline">Option for employees transferred from
federal reserve system to be subject to federal employee retirement
program</header>
<clause commented="no" display-inline="no-display-inline" id="H0ADDDBA822DA4728AC4B05012CEC4561"><enum>(i)</enum><header display-inline="yes-display-inline">Election</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFA2E8E3F80554451915A6757E3860666"><enum>(ii)</enum><header display-inline="yes-display-inline">Effective date of coverage</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H432A966F8AA94C01BA3A28AB9977C3E0"><enum>(C)</enum><header display-inline="yes-display-inline">Agency participation in federal reserve
system retirement plan</header>
<clause commented="no" display-inline="no-display-inline" id="HDDDA9A669F684E48BA87799619D0718C"><enum>(i)</enum><header display-inline="yes-display-inline">Separate account in federal reserve system
retirement plan established</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H32E8FEB911B1420CA0C864F4E09476EA"><enum>(ii)</enum><header display-inline="yes-display-inline">Funds attributable to transferred employees
remaining in federal reserve system retirement plan transferred</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7C7E9380B3C64E2EA8FDBC6BAC36606B"><enum>(iii)</enum><header display-inline="yes-display-inline">Employer contributions
deposited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H83B797CC67EC446C87154FD7C6F47483"><enum>(iv)</enum><header display-inline="yes-display-inline">Account administration</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H68DC01922B0449A2877ED77AB53AB9E7"><enum>(D)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this paragraph, the
following definitions shall apply:</text>
<clause commented="no" display-inline="no-display-inline" id="HA2A0F5D1305F43CB916020EE85B39F1A"><enum>(i)</enum><header display-inline="yes-display-inline">Existing retirement plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50FC0E43DBE843FCBF73A127F5D3B778"><enum>(ii)</enum><header display-inline="yes-display-inline">Federal employee retirement
plan</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H498EA91083044116869E0158D9761956"><enum>(2)</enum><header display-inline="yes-display-inline">Benefits other than retirement benefits for
transferred employees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H59FFE759D4464D6EAC246673A2F254C4"><enum>(A)</enum><header display-inline="yes-display-inline">During 1st year</header>
<clause commented="no" display-inline="no-display-inline" id="H87BDE2B652FB44EE80F86A5E89C0AD02"><enum>(i)</enum><header display-inline="yes-display-inline">Existing plans continue</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2CDB3A466F114EBD8E6A5B356F7A6141"><enum>(ii)</enum><header display-inline="yes-display-inline">Employer’s contribution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E4E8690E5A44C78B1A03B007CB6F926"><enum>(B)</enum><header display-inline="yes-display-inline">Dental, vision, or life insurance after 1st
year</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6400A837FBE34833A1E883484B2F104E"><enum>(i)</enum><text display-inline="yes-display-inline">the enhanced dental benefits established by
chapter 89A of title 5, United States Code;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H91565141E64149A48DE967670FA9259A"><enum>(ii)</enum><text display-inline="yes-display-inline">the enhanced vision benefits established by
chapter 89B of title 5, United States Code; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF595DC8282B444958A662398D7538F54"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF22160EFB4D3469E9B0AEDEB75CAFCA7"><enum>(C)</enum><header display-inline="yes-display-inline">Long-term care insurance after 1st
year</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB025AE95CAC046A3BDEC074EC214E646"><enum>(D)</enum><header display-inline="yes-display-inline">Employee’s contribution</header><text display-inline="yes-display-inline">An individual enrolled in the Federal
Employees Health Benefits program shall pay any employee contribution required
by the plan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5D1D2EB608C1426585179AFD56D72CEB"><enum>(E)</enum><header display-inline="yes-display-inline">Additional funding</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H90076289E3E54CD2BCFEC98E0DA01673"><enum>(F)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66C4A0EF2BE3452C8CE9911F5CBA4DB0"><enum>(G)</enum><header display-inline="yes-display-inline">Special provisions to ensure continuation
of life insurance benefits</header>
<clause commented="no" display-inline="no-display-inline" id="H7FE4C0AA0284406781ECCDEF236FA9F4"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H56FFFDC0218D4E2399BA018A6DF19106"><enum>(ii)</enum><header display-inline="yes-display-inline">Employee’s contribution</header><text display-inline="yes-display-inline">An individual enrolled in a life insurance
plan under this clause shall pay any employee contribution required by the
plan.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDC830A9289844BE88037E98718799356"><enum>(iii)</enum><header display-inline="yes-display-inline">Additional funding</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE405C34162044CC9AEB6F4646BAE175C"><enum>(iv)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF275DA6F3D74B8E97C7715D76834D5A"><enum>(j)</enum><header display-inline="yes-display-inline">Implementation of uniform pay and
classification system</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC942A25C583741B6BA41B012651DC265"><enum>(k)</enum><header display-inline="yes-display-inline">Equitable treatment</header><text display-inline="yes-display-inline">In administering the provisions of this
section, the Director—</text>
<paragraph commented="no" display-inline="no-display-inline" 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, the Federal Home Loan Bank Board or any successor to such Board,
a Federal home loan bank, or a joint office of the Federal home loan banks;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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, the Federal Home Loan
Bank Board or any successor to such Board, a Federal home loan bank, or a joint
office of the Federal home loan banks.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H00694E02C051450FB4C2D24E3D39DDA3"><enum>(l)</enum><header display-inline="yes-display-inline">Implementation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1963B6513CCF4B6EB026495CC047F04E" section-type="subsequent-section"><enum>4605.</enum><header display-inline="yes-display-inline">Incidental transfers</header>
<subsection commented="no" display-inline="no-display-inline" id="H856FE7BA20C44255B876A65A5894B272"><enum>(a)</enum><header display-inline="yes-display-inline">Incidental transfers
authorized</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB39263FCFCF45B1B8EF605882972C9F"><enum>(b)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">The authority provided in this section
shall terminate 5 years after the date of the enactment of this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB8913F2979BF444A95D2EA0AA9068E17" section-type="subsequent-section"><enum>4606.</enum><header display-inline="yes-display-inline">Interim authority of the Secretary</header>
<subsection commented="no" display-inline="no-display-inline" id="H137D86E1134D4FAEA18CF4CFA7021A41"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary is authorized to perform the
functions of the Director under this subtitle until the appointment of the
Director in accordance with section 4102.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3188A266C869483B87936A237631B236"><enum>(b)</enum><header display-inline="yes-display-inline">Interim administrative services by the
department of the treasury</header><text display-inline="yes-display-inline">The Secretary of the Treasury may provide
administrative services necessary to support the Agency during the 24-month
period beginning on the date of the enactment of this title.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2D102D6F4FBF499195CEE21EBF9CE993"><enum>(c)</enum><header display-inline="yes-display-inline">Interim funding for the department of the
treasury</header><text display-inline="yes-display-inline">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 commented="no" id="H0D279020439F44608161696565F79F22" level-type="subsequent"><enum>G</enum><header display-inline="yes-display-inline">Regulatory Improvements</header>
<section commented="no" display-inline="no-display-inline" id="HE2526DE24E694A6A801E4EA939399F6D" section-type="subsequent-section"><enum>4701.</enum><header display-inline="yes-display-inline">Collection of deposit account data</header>
<subsection commented="no" display-inline="no-display-inline" id="H7F1BF73E4DDF45A7AC035DBCABBA6006"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE74224A1719A4FA49DA0E5B9FE822769"><enum>(b)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H00B08302008244859AFE06839FE99992"><enum>(1)</enum><header display-inline="yes-display-inline">Records required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HED8FBBE2A642451B90CB83C61D41DE3E"><enum>(2)</enum><header display-inline="yes-display-inline">Geo-coded addresses of
depositors</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA1E9B26AC7B94FDE9A3B91F1E0D3058F"><enum>(3)</enum><header display-inline="yes-display-inline">Identification of depositor
type</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAC7AF9B5947C4EC984E9FA8CD2403A41"><enum>(4)</enum><header display-inline="yes-display-inline">Public availability</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H38E22453692048D99E33AEFF54EA07DC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The following information shall be publicly
available on an annual basis—</text>
<clause commented="no" display-inline="no-display-inline" id="H31F8F06331E84C489DA74904F0FFE810"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E21CC2D493C4FC9AA132D9E05739C65"><enum>(ii)</enum><text display-inline="yes-display-inline">the type of deposit account including
whether the account was a checking or savings account;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H00B63DA086DE4D7F91FB8D2D0C5A6AFE"><enum>(iii)</enum><text display-inline="yes-display-inline">data on the number and dollar amounts of
the accounts, presented by census tract location of the residential and
commercial customers; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFB234C59C74C479CB90C1A447BDDBA36"><enum>(iv)</enum><text display-inline="yes-display-inline">any other data deemed appropriate by the
Director.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD048721A39484932A252588D3DBCD79B"><enum>(B)</enum><header display-inline="yes-display-inline">Protection of identity</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0D49AC1936C949E3A0B995AE334409D5"><enum>(c)</enum><header display-inline="yes-display-inline">Availability of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD082D6C300A7465C881CA209E39B6BC6"><enum>(1)</enum><header display-inline="yes-display-inline">Submission to agencies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAA899D29021540C5A9A49B7A4C405059"><enum>(2)</enum><header display-inline="yes-display-inline">Availability of information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA72610D787624695B42243911B2EC79E"><enum>(d)</enum><header display-inline="yes-display-inline">Agency use</header><text display-inline="yes-display-inline">The Director—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H599DBA91EFF04262B80F2F8249D8EEEF"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2A4412EFF394DA8A490EE70C0E976A8"><enum>(2)</enum><text display-inline="yes-display-inline">may use the data for any other purpose as
permitted by law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5C9A1738232D44F589ADE451E4CB5B1F"><enum>(e)</enum><header display-inline="yes-display-inline">Regulations and guidance</header>
<paragraph commented="no" display-inline="no-display-inline" id="H10814E85A76B470DAF6ABC2F3FB383B3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE8C4B9B997FF48D481FBB8E98CB320AE"><enum>(2)</enum><header display-inline="yes-display-inline">Data compilation regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35D8DF71DF5D4DA8B4719BD1989730FD"><enum>(f)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0BF241BB54E4401A9E3E401BDA8023E1"><enum>(1)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0358340A51784046AB16571ECA9270C8"><enum>(2)</enum><header display-inline="yes-display-inline">Credit union</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF9E76A1284F44A8AE26EE0F8C3BE354"><enum>(3)</enum><header display-inline="yes-display-inline">Deposit account</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H97519FFD4492406D8B4B5B02401007A5"><enum>(4)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The term <quote>Director</quote> means the
Director of the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC94D102FA3B6462DB9441A7A24934F45"><enum>(5)</enum><header display-inline="yes-display-inline">Federal banking agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6D45AE5481574DE38465C3AB44260584"><enum>(6)</enum><header display-inline="yes-display-inline">Financial institution</header><text display-inline="yes-display-inline">The term <quote>financial
institution</quote>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3EAD776C07924283BA3C11D38B81D0D5"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H960B60CFD43F409DB5C5CF9F9532E092"><enum>(B)</enum><text display-inline="yes-display-inline">includes any credit union.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBC185BF83F104E6A8296BA72A1D92CBD"><enum>(g)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the designated transfer date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H830BB6AECF4A46A5AD9488C1BC2E8DDD" section-type="subsequent-section"><enum>4702.</enum><header display-inline="yes-display-inline">Small business data collection</header>
<subsection commented="no" display-inline="no-display-inline" id="HE2BB77A064F44051BC92222FFE6EDFEC"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H846C76504AA048FE85DB52E17F9FE8E2" section-type="subsequent-section"><enum>704B.</enum><header display-inline="yes-display-inline">Small business loan data
collection</header>
<subsection commented="no" display-inline="no-display-inline" id="H607B933C035C47DFBF21C1CBDB9CA6E3"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H681C3CBFB53244B4A92812AA1E9900B3"><enum>(b)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1683E2552C25446C9C2156804ACC226D"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H382EAA4E29F34451A8FDF9317001C047"><enum>(2)</enum><text display-inline="yes-display-inline">maintain a record of the responses to such
inquiry separate from the application and accompanying information.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H30D9D390BC844263803ACBF9DE0103B6"><enum>(c)</enum><header display-inline="yes-display-inline">Right to refuse</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6537A6F93D3474B98D1094AE506E6C0"><enum>(d)</enum><header display-inline="yes-display-inline">No access by underwriters</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1629A2726E784247B621FF225B0E2C75"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEB84C1033FF649FE95E75EC485874439"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBC0E1CC1340A451A98CB5E1961600B9F"><enum>(e)</enum><header display-inline="yes-display-inline">Form and manner of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="H319C67CB125E4098A746D56D5A9F52B5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC9E509871D294F2E91AF3F1D25C87542"><enum>(2)</enum><header display-inline="yes-display-inline">Itemization</header><text display-inline="yes-display-inline">Information compiled and maintained under
paragraph (1) shall also be itemized in order to clearly and conspicuously
disclose the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H47F3A5FA8C054905A3F78C173943079F"><enum>(A)</enum><text display-inline="yes-display-inline">The number of the application and the date
the application was received.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF49E9155599943BAB9CB80014EA3F206"><enum>(B)</enum><text display-inline="yes-display-inline">The type and purpose of the loan or other
credit being applied for.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H232C31858F0843D3A6E5A66DA9A0CF03"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC8FC66431F214303BDFAC5288C2F4C36"><enum>(D)</enum><text display-inline="yes-display-inline">The type of action taken with respect to
such application and the date of such action.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5CA591FBDDDF4CF78267F757858165CF"><enum>(E)</enum><text display-inline="yes-display-inline">The census tract in which is located the
principal place of business of the small business loan applicant.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3E710F8E2CF149488C72AB86A617BD33"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CA900896D1549B0BE600CBC3326592B"><enum>(G)</enum><text display-inline="yes-display-inline">The race, sex, and ethnicity of the
principal owners of the business.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE3193862D44F40E3B4B09318FF1A15AD"><enum>(H)</enum><text display-inline="yes-display-inline">Any additional data the Agency determines
would aid in fulfilling the purposes of this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBEAB0131C8204E6595AFB01893649CDC"><enum>(3)</enum><header display-inline="yes-display-inline">Inclusion of personally identifiable
information prohibited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEFE672BA06D4FCAB0E9027B7B8F186D"><enum>(4)</enum><header display-inline="yes-display-inline">Discretion to delete or modify publicly
available data</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H375A08D696E844A99EF641E49EA5893E"><enum>(f)</enum><header display-inline="yes-display-inline">Availability of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE74DAD0E929F40D4A9CCFDF13A2F3321"><enum>(1)</enum><header display-inline="yes-display-inline">Submission to agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H093A31970E7F48F7A6E6AFE4B686447E"><enum>(2)</enum><header display-inline="yes-display-inline">Availability of information</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HABF117B9410340C098CC3574E685FC45"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C4AC292BA4C4C69891C4CF99EB5A44A"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA56493C8A4D4BE697AAAB432EEC8F4D"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1FF8E6909E86486790BDD2DD3CB3E9FE"><enum>(3)</enum><header display-inline="yes-display-inline">Compilation of aggregate data</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD0572F5661AE426BA4480447644B278E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Agency may, in the discretion of the
Agency, compile for the Agency’s own use compilations of aggregate data.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1A137CC434BA4212B93933A6AC42207E"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCCBEC80EFA3849DE884A67B29AA740F4"><enum>(g)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCC50D1B04DB2446997B09B93F683EF2C"><enum>(1)</enum><header display-inline="yes-display-inline">Financial institution</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE60D2B8E61E448093919CDE0013E881"><enum>(2)</enum><header display-inline="yes-display-inline">Minority-owned business</header><text display-inline="yes-display-inline">The term <quote>minority-owned
business</quote> means a business—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5ADAD49516AA44ACBA797963E501BE13"><enum>(A)</enum><text display-inline="yes-display-inline">more than 50 percent of the ownership or
control of which is held by 1 or more minority individuals; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBACC2E0BC1DC46708C92C4D290BDAF31"><enum>(B)</enum><text display-inline="yes-display-inline">more than 50 percent of the net profit or
loss of which accrues to 1 or more minority individuals.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3DF3414A2DA94F6A847527C710B968C1"><enum>(3)</enum><header display-inline="yes-display-inline">Women-owned business</header><text display-inline="yes-display-inline">The term <quote>women-owned
business</quote> means a business—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEDC5D4350F3E4E45A424E38C89A6AD6F"><enum>(A)</enum><text display-inline="yes-display-inline">more than 50 percent of the ownership or
control of which is held by 1 or more women; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H69995F8397B140BBA81816DA9B81E9C1"><enum>(B)</enum><text display-inline="yes-display-inline">more than 50 percent of the net profit or
loss of which accrues to 1 or more women.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3CC51E1CAE004F40BC261166D6072E6A"><enum>(4)</enum><header display-inline="yes-display-inline">Minority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD309AEA063F042F1AFAC23F8A7566820"><enum>(5)</enum><header display-inline="yes-display-inline">Small business loan</header><text display-inline="yes-display-inline">The term ‘small business loan’ shall be
defined by the Agency, which may take into account—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEE6836ABAD4B46769E46522173FF8B68"><enum>(A)</enum><text display-inline="yes-display-inline">the gross revenues of the borrower;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC17ED4ED39BF4140AF8BA858CA350C87"><enum>(B)</enum><text display-inline="yes-display-inline">the total number of employees of the
borrower;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H296E967B6B784187A70E72EBA0ED2691"><enum>(C)</enum><text display-inline="yes-display-inline">the industry in which the borrower has its
primary operations; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFEAF4DE6EF6246388A5436C6ECD1E838"><enum>(D)</enum><text display-inline="yes-display-inline">the size of the loan.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H56BA7DBDFB9B4C84B084AC7954FDE1AE"><enum>(h)</enum><header display-inline="yes-display-inline">Agency action</header>
<paragraph commented="no" display-inline="no-display-inline" id="H42DC1DB7590B4CB8BCA68446FCE0246C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4358AA38EAC34BE38DD4213685539B2A"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E480BD7F8274D36A4C3A5FAD4FA518C"><enum>(3)</enum><header display-inline="yes-display-inline">Guidance</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5B0830B3E6D145929E8EB9D70A4E9407"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66E78D37B161435A90BE763721DA3F93"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> after the
semicolon at the end of paragraph (3);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42BD0A37B5344F48AF331BBF7554C164"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
paragraph (4) and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H39A86D2ACB674B3891974BBDE059BCAA"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (4), the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H087A85FE88C3447680B38FC5B785C089" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H438E96FAC2FF44CC9A3ACB5B62A8DF68"><enum>(c)</enum><header display-inline="yes-display-inline">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 bold="off" 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 commented="no" display-inline="no-display-inline" id="H2AB0CA4DF9E1473C9970054A2E83AFF3"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the designated transfer date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3EFDA935E7EE4E29A8274A6AE5BB3A04" section-type="subsequent-section"><enum>4703.</enum><header display-inline="yes-display-inline">Annual financial autopsy</header>
<subsection commented="no" display-inline="no-display-inline" id="HAC4756F17CB9443392FA28F2559BE3CF"><enum>(a)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">Not later than March
31 of each calendar year, the Director shall—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF25828687A2D4169B2B3A735E85F859A"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE372BEFCB8E144E0A83A5F726E2B9FD7"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">After the completion of each study required
under subsection (a), the Director shall submit a report to the Congress
containing—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5B24B94EB71E472AB28BC5B2A77F1DFE"><enum>(1)</enum><text display-inline="yes-display-inline">any conclusions made by the Director in
carrying out such study;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE5370CF4C3DB4783BB62D4642C76080E"><enum>(3)</enum><text display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="H01DA052D4BE24144BE85276B1132A4F3" section-type="subsequent-section"><enum>4704.</enum><header display-inline="yes-display-inline">Reporting of mortgage data by
State</header>
<subsection commented="no" display-inline="no-display-inline" id="H73327E5CF3B94B92B3CFB2AE99ED2762"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 104(a) of the Helping Families Save
Their Homes Act of 2009 (division A of Public Law 111–22) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H10D50E3287854BD397B05C0D277E960A"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>resulting</quote> and inserting <quote>in each State that
result</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBEFA5E15DA44366826F04B4C5E8E656"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3), by inserting <quote>each
State for</quote> after <quote>modifications in</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H381A71E28AD94705AB62B22F8426D3E2"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (4), by inserting <quote>in
each State</quote> after <quote>total number of loans</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H288BD184EF7D45188B28684060F2EBB9"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 104(b)(1)(A) of such Act is amended
by adding at the end the following sentence: <quote>Not later than 60 days
after the date of the enactment of the Wall Street Reform and Consumer
Protection Act of 2009, the Comptroller of the Currency and the Director of the
Office of Thrift Supervision shall update such requirements to reflect
amendments made to this section by such Act.</quote>.</text>
</subsection></section></subtitle><subtitle commented="no" id="HF902343C93404860B58847B53CDB31C6" level-type="subsequent"><enum>H</enum><header display-inline="yes-display-inline">Conforming Amendments</header>
<section commented="no" display-inline="no-display-inline" id="HC6DDD294276044C9841EE7EF9727E291" section-type="subsequent-section"><enum>4801.</enum><header display-inline="yes-display-inline">Amendments to the Inspector General Act of
1978</header>
<subsection commented="no" display-inline="no-display-inline" id="HB8FACB40F2264DC0960F5D7B2CFFE1C9"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4657C2942A54849A45D97B6EFBF6AB1"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the date of the enactment of this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7D2FF947BACE4B6196DF6B2E93045E71" section-type="subsequent-section"><enum>4802.</enum><header display-inline="yes-display-inline">Amendments to the Privacy Act of
1974</header>
<subsection commented="no" display-inline="no-display-inline" id="HC77E319AFFC84DC792B8E799627296B6"><enum>(a)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">Section 552a of title 5, United States
Code, is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0728E01776454DF594C4D5646F711789" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF11F8428F3974E689C5061A87C7C2CF2"><enum>(w)</enum><header display-inline="yes-display-inline">Applicability to consumer financial
protection agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H227DFC4CCBD84D47984086BA8B8BDBD0"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the date of the enactment of this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF61D755765544DCFA737907181D87A64" section-type="subsequent-section"><enum>4803.</enum><header display-inline="yes-display-inline">Amendments to the Alternative Mortgage
Transaction Parity Act of 1982</header>
<subsection commented="no" display-inline="no-display-inline" id="H45529F3203D14E34A38C2DA08A6E49C0"><enum>(a)</enum><header display-inline="yes-display-inline">Section
803<enum-in-header>(1)</enum-in-header></header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC279EA94C7DC4E15BF49AE0C9BACA580"><enum>(b)</enum><header display-inline="yes-display-inline">Section
804<enum-in-header>(a)</enum-in-header></header><text display-inline="yes-display-inline">Section 804(a) of the Alternative Mortgage
Transaction Parity Act of l982 (12 U.S.C. 3803(a)) is amended—</text>
<paragraph commented="no" 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 commented="no" display-inline="no-display-inline" id="H95051BB57AD24ABDA8847FAAC79A2843"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB4894D92D35A4EEB8C33F22A46978B25"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking the period at
the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE7ED9A7DEB224E5FB94BEE2D73B3C3A1"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC1A66A6DDD9146F3BB90E4983A8E65F7" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA08A14C1B74144FBA2E3FB2AF78E4B4C"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB224F8B03984FDB9F8C8325D09F6D5B"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50FD1D34FA664E0182E6D58F3E2A4068"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (c) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD555E67DE3F841CA8A6F23A850CC630A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1BEB1A1587E343BDBE889F8DF3DBAAD8"><enum>(c)</enum><header display-inline="yes-display-inline">Effect of state law</header>
<paragraph commented="no" display-inline="no-display-inline" id="H68CB2E24EDA64453892258E3678415D7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C2087FDBBFC47789FC8B7D6E8906CAB"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD295222AAD10455DB1BCD471FD7160B7"><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="HBC8C2ECF6991425CB69B0FA4A8B9CEF6" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC8CC5CD777554D0F874D1783F90CA9FB"><enum>(d)</enum><header display-inline="yes-display-inline">Duties of Consumer Financial Protection
Agency</header><text display-inline="yes-display-inline">The Consumer Financial
Protection Agency shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6DFAC7A361D64EC7A4AE1270D1062DDC"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2BD5F2EE2F86445888A4941074D6FE70"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC5AFA1AAD3744ED0909316971FE3E6B0"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9A7F29D01C564C049AAB6ECA44DF5408"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date and scope of
application</header>
<paragraph commented="no" display-inline="no-display-inline" id="H252DA6C73B4243C881EFA0162F55A96D"><enum>(1)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the designated transfer date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14CC7245C6194B28A1E0168B1AD157CF"><enum>(2)</enum><header display-inline="yes-display-inline">Scope of application</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF647B051CC842958FE2A32513A1C23C" section-type="subsequent-section"><enum>4804.</enum><header display-inline="yes-display-inline">Amendments to the Consumer Credit
Protection Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H062D4F2E9390457EA64FD1CC00F51D5D"><enum>(a)</enum><header display-inline="yes-display-inline">Truth in Lending Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8ACCF8155B4B48AB83C0D90501F8CDEA"><enum>(1)</enum><header display-inline="yes-display-inline">Section 103</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E79032F68674478AA8D52675FC3E0DA"><enum>(b)</enum><header display-inline="yes-display-inline">Agency definitions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H55BBBA98916B4865B14394F8F38C7102"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6A40992621EC409587019B74D809F548"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H191869037C7947439BBB38147E5C17CE"><enum>(2)</enum><header display-inline="yes-display-inline">Universal amendment relating to Board of
Governors of the Federal Reserve System</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD5941E49A0674921BF42F94532AAE515"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H12F6C2667104493BA1933C61948DBE63"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The amendment described in subparagraph (A)
shall not apply to sections 108(a) (as amended by paragraph (4)) and 140(d) and
shall not apply to the term <quote>Board</quote> when used in reference to the
Federal Deposit Insurance Corporation or the National Credit Union
Administration.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD67EAFC77F3146A2B2DDBFAAF3F842C0"><enum>(3)</enum><header display-inline="yes-display-inline">Section 105</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC28DF18323B24D08B9D1BE00D1BE0431"><enum>(4)</enum><header display-inline="yes-display-inline">Section 108</header><text display-inline="yes-display-inline">Section 108 of the Truth in Lending Act (15
U.S.C. 1607) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA5F41DD89AD3442B9A0C07D9A0DDC77A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (a) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H02A3C6F79FD7410A89AD581711AD99F3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB3BC65C97F004347914FF9ED4E945A93"><enum>(a)</enum><header display-inline="yes-display-inline">Enforcing agencies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9FA0AD8A92D946B5A4FE0E0DCDF9AC4A"><enum>(1)</enum><text display-inline="yes-display-inline">Under section 8 of the Federal Deposit
Insurance Act, in the case of—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HDD363B4ECA5D42B0A43C9F3A537C5586"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD40EDA12F21347D59AD22FC232C8679F"><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 commented="no" display-inline="no-display-inline" id="HAD52E44B2E5B48C8A8B690A0CB2D98AB"><enum>(2)</enum><text display-inline="yes-display-inline">Under subtitle E of the Consumer Financial
Protection Agency Act of 2009, by the Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D5E7A0076FC486FAFA091CC5614BAEB"><enum>(3)</enum><text display-inline="yes-display-inline">Under the Federal Credit Union Act, by the
head of the agency responsible for chartering and regulating Federal credit
unions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB34290EB30CB49A19220D92D2A9B85CE"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H378FB27E3E9B4D1F8A4EE9CE82FDEF93"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H39F5CF1A3B1F4525A8FCFC0E2BA2A6B1"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F7E31513E454C7D996FBDB5EAA9805B"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (c) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4837133416984C36A66F671C2E813739" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H47F84F92554640A3A024C8D97A033F22"><enum>(c)</enum><header display-inline="yes-display-inline">Overall enforcement authority of the
Federal Trade Commission</header><text display-inline="yes-display-inline">Except to the extent that enforcement of
the requirements imposed under this title is specifically committed to some
other Government agency (other than the Consumer Financial Protection 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 commented="no" display-inline="no-display-inline" id="H3A81E47B631E4A0FB99A0FE2576BBB10"><enum>(5)</enum><header display-inline="yes-display-inline">Universal amendment relating to the Federal
Trade Commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H37CCFE0EB27F457FB71B50846DEFDFBB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B) (and
except for any insertion of <quote>Federal Trade Commission</quote> made by
this subtitle), 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 commented="no" display-inline="no-display-inline" id="HEDF20683752748D88F8C59B1AB346429"><enum>(B)</enum><header display-inline="yes-display-inline">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)) 129(m) (as
amended by paragraph (7)), 140A, or 149 (as amended by paragraph (8)).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69986DF8465F4065AE9F0E510E6C6B41"><enum>(6)</enum><header display-inline="yes-display-inline">Section 127</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H53665FF5A3724C44B4F12C623C3A0BC0" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H4CD810ED7521480182D236E854F4E51E"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE3D6C5C3270E4C8799B33B2532735FFF"><enum>(7)</enum><header display-inline="yes-display-inline">Section 129</header><text display-inline="yes-display-inline">Section 129(m) of the Truth in Lending Act
(15 U.S.C. 1639(m)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3FAA977EA1004ED180229CBD68846DA3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H189095BFFFD14EEF8BAF10BC13F27291"><enum>(m)</enum><header display-inline="yes-display-inline">Civil penalties in federal trade commission
enforcement actions</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HCD70EA4599C34D4388B45FDD90E9AE48"><enum>(8)</enum><header display-inline="yes-display-inline">Section 149</header><text display-inline="yes-display-inline">Section 149(b) of the Truth in Lending Act
(15 U.S.C. 1665d(b)) is amended by inserting <quote>the Federal Trade
Commission,</quote> after <quote>in consultation with</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2CB186690AF046BC8DEFFCB4EB1BE4C1"><enum>(b)</enum><header display-inline="yes-display-inline">Fair Credit Reporting Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4F5700FDAC614EC7B5EFAFEDB7F000F6"><enum>(1)</enum><header display-inline="yes-display-inline">Section 603</header><text display-inline="yes-display-inline">Section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA433E1A9DCD64D2B8FEEC3C436D72EC4"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating subsections (w) and (x) as
subsections (x) and (y), respectively; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3D9FCC30458D46218A26ADB543926C72"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after subsection (v) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H82F54DBBA6F44242BCD7914B473A4713" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE5E2C4EB82E848058DA893EC52CA2DF9"><enum>(w)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H78D81E43CD7240C6871A0F8C9A90E745"><enum>(2)</enum><header display-inline="yes-display-inline">Universal amendments relating to the
Federal Trade Commission</header><text display-inline="yes-display-inline">Other than in connection with the amendment
made by paragraphs (7)(B), (8)(A), (8)(C), and (8)(D) of this subsection (and
except for any insertion of <quote>Federal Trade Commission</quote> made by
this subtitle), the Fair Credit Reporting Act (15 U.S.C. 1681a) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCF7B4D19745A4393AFCE66F6781AB2D2"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Federal Trade
Commission</quote> each place such term appears and inserting
<quote>Agency</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HAE11C0D007D74020AE2A61974CAD11C0"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4617A9CAB1D04DBF86FB18E0C97E3075"><enum>(3)</enum><header display-inline="yes-display-inline">Section 603</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBF0A6A4B3BC4318B4B2B811C1C86CD4"><enum>(4)</enum><header display-inline="yes-display-inline">Section 604</header><text display-inline="yes-display-inline">Subsection 604(g) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(g)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 display-inline="no-display-inline" id="HCBB0E477DC504E07B14CDE6BC2617EAC" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1BFD9948C8284CC3B51529447ACBC9D1"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6FA932DD74A54A9094A50D858FFA39B0"><enum>(B)</enum><text display-inline="yes-display-inline">by striking paragraph (5) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA3A1E44E6DA44A80A1E8316F35E100FC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC09EE39F4F304375B938F7ED10595224"><enum>(5)</enum><header display-inline="yes-display-inline">Regulations required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H17B0017D16EF4C07A1215A238F74393B"><enum>(5)</enum><header display-inline="yes-display-inline">Section 609</header><text display-inline="yes-display-inline">Section 609(d)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(d)(1)) is amended by inserting <quote>the
Federal Trade Commission,</quote> after <quote>in consultation
with</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBAAEC18289B432785DC4601301944B1"><enum>(6)</enum><header display-inline="yes-display-inline">Section 611</header><text display-inline="yes-display-inline">Section 611(e) of the Fair Credit Reporting
Act (15 U.S.C. 1681i(e)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCED2EDA3665C4AA68CB09AAD76377473"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (2) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H2859CD3EFD4F4FD38855A29D57E2C9C9" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB0A954B12AAB4657B7CA812C33B46CAC"><enum>(2)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">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>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE84C4C1AF39B463397FCB9F937E0685D"><enum>(B)</enum><text display-inline="yes-display-inline">in the heading of paragraph (3) by
inserting <quote><header-in-text level="paragraph" style="OLC">Consumer
reporting</header-in-text></quote> before
<header-in-text level="paragraph" style="OLC"><quote>agency</quote></header-in-text>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93B4C70CF2764329B2E77AED86BE0782"><enum>(7)</enum><header display-inline="yes-display-inline">Section 615</header><text display-inline="yes-display-inline">Section 615 of the Fair Credit Reporting
Act (15 U.S.C. 1681m) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3466C0729BE44C0784CEC46584E04DE6"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (d)(2)(B), by inserting
<quote>the Federal Trade Commission,</quote> after <quote>in consultation
with</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H973427FF5CBF40BABDDB18590891B3B8"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (e)(1), by striking
<quote>and the Commission</quote> and inserting <quote>the Federal Trade
Commission, the Securities and Exchange Commission, and the Commodities Futures
Trading Commission</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB447C5D5FE96414899716C69185F847E"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraph (A) of subsection
(h)(6) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H350242F447D64053BAFC3255F3F6493C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H4E927E86B65F429BBA00DB4AEF7E894C"><enum>(A)</enum><header display-inline="yes-display-inline">Rules
required</header><text display-inline="yes-display-inline">The Agency shall
prescribe
rules.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C70A4FC6BF54D039DD519F1EB178900"><enum>(8)</enum><header display-inline="yes-display-inline">Section 621</header><text display-inline="yes-display-inline">Section 621 of the Fair Credit Reporting
Act (15 U.S.C. 1681s) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H81925B604A6144C386C1F5DF870EFDE3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (a) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H5E9CE814B6504E44AE17B012C67DBB95" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA3FCC1E4D4AB46BBBC886A00374B2C64"><enum>(a)</enum><header display-inline="yes-display-inline">Enforcement by Federal Trade
Commission</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9FED267E540C4DC1A612A4578E33AF96"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 (other than the Consumer Financial Protection 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 commented="no" display-inline="no-display-inline" id="HDDC89B81039F4CCD8829BB98222A0A46"><enum>(2)</enum><header display-inline="yes-display-inline">Civil money penalties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H32EDD09C8A624595B781878FDB8A74B7"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H000C8605D921413AB36B8963F9D2457D"><enum>(B)</enum><header display-inline="yes-display-inline">Factors in determining amount</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDB337D744A3343869886A7343326E84B"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0038D2A5B0FE41DE845EDD2C3566E564"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC6576D1373184FE3A8E8E40774AC5B6C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H5FCBFAB6B13D4942B47B92852C16F693"><enum>(b)</enum><header display-inline="yes-display-inline">Enforcement by other agencies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C1D76A5055945E9BFACF351E128AC59"><enum>(1)</enum><text display-inline="yes-display-inline">Under section 8 of the Federal Deposit
Insurance Act, in the case of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5C389FA5E6943E0BE5DA0DA830A6E9A"><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 commented="no" display-inline="no-display-inline" id="H36637F61D20843E48AC871DA8F2308C0"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF0950083FF354F43913AE83A75DE1EDA"><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 commented="no" display-inline="no-display-inline" id="HE18F7D06DD234E13BBF0AEBA12C0150E"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF735E995E28421581066CDA6490CCF3"><enum>(3)</enum><text display-inline="yes-display-inline">Under the Federal Credit Union Act, by the
National Credit Union Administration Board with respect to any Federal credit
union.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47B566EF068E4E63AADF4F046AFB0B74"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0106FCE22874588A27C3E3CFDE16915"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H474BB2DFAEAB48188EA55B630C56CAC0"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H965594FBF18F47B28C5F659CC821D0E2"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2) of subsection (c)—</text>
<clause commented="no" display-inline="no-display-inline" id="H573E27FBEB72438D82B3D03EB62D8D6B"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>the Agency and</quote>
before <quote>the Federal Trade Commission</quote> in the first
sentence;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5C7125FA7BA3449CB06FC878D5F44643"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting <quote>Agency and the Federal
Trade</quote> after <quote>provide the</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2D5DBC7D4C2349A4ADCAC07A29B0F5C7"><enum>(iii)</enum><text display-inline="yes-display-inline">by inserting <quote>Agency,</quote> before
<quote>Federal Trade Commission</quote> in the second sentence;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BC9202DA83A487E8ABF485CC5CA6B2D"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4) of subsection (c)—</text>
<clause commented="no" display-inline="no-display-inline" id="HD8574998272041978128870A213818AC"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>Agency</quote>, before
<quote>the Federal Trade Commission</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H78296E4F6CA04F94BA9BF20BDF26C553"><enum>(ii)</enum><text display-inline="yes-display-inline">inserting <quote>Agency, the Federal
Trade</quote> after <quote>complaint of the</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA9A82D800B24A599816BD9E478B70DB"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (2) of subsection (f), by
inserting <quote>the Federal Trade Commission</quote> after <quote>in
consultation with</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H129702325A8D45B0AA319DF893B9A655"><enum>(F)</enum><text display-inline="yes-display-inline">by striking subsection (e) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H5887D46D6C20454582C6EB51542D1203" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6ED2A7F95554402FAEF1B42AD98A1896"><enum>(e)</enum><header display-inline="yes-display-inline">Regulatory authority</header><text display-inline="yes-display-inline">The Agency shall prescribe such regulations
as necessary to carry out the purposes of this Act, except that, with respect
to sections 615(e) and 628 of this title, the agencies identified in
subsections (a) and (b) of this section shall prescribe such regulations as
necessary to carry out the purposes of such sections with respect to entities
within their enforcement authority under such
subsections.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H64DB78A544594A3D936880DDB4CB7D6C"><enum>(G)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8B04B5243F8B447281BA81A2BB3BA469"><enum>(8)</enum><header display-inline="yes-display-inline">Section 623</header><text display-inline="yes-display-inline">Section 623 of the Fair Credit Reporting
Act (15 U.S.C. 1681s–2) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0E1CBB76A8424146B6676853391E66E1"><enum>(A)</enum><text display-inline="yes-display-inline">by amending subparagraph (a)(7)(D) to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBAC01D1C2E4A411DBDE0F56686B41DEA" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H06551248DAAD4E5199197DC3C6362087"><enum>(D)</enum><header display-inline="yes-display-inline">Model disclosure</header>
<clause commented="no" display-inline="no-display-inline" id="HBE5DC94798CA4851A4FC4F8F3C28EB85"><enum>(i)</enum><header display-inline="yes-display-inline">Duty of agency to prepare</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F6309B2C1044A3C9C5F944A68EF5A92"><enum>(ii)</enum><header display-inline="yes-display-inline">Use of model not required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2433D6A16B6E4FB993DABF2A8A79D1A7"><enum>(iii)</enum><header display-inline="yes-display-inline">Compliance using model</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD39A700726B041FA932CE2C4B2776501"><enum>(B)</enum><text display-inline="yes-display-inline">by amending subsection (e) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H1EBE6919D10347A6839FAC9D345E5FE3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFF23D519C85E4E66AF2E7CC12DC976D1"><enum>(e)</enum><header display-inline="yes-display-inline">Accuracy guidelines and regulations
required</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA80510FCF6E84946B8B22451D5AC7DC6"><enum>(1)</enum><header display-inline="yes-display-inline">Guidelines</header><text display-inline="yes-display-inline">The Agency shall, with respect to the
entities that are subject to its enforcement authority under section
621—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H17B9482043B542D49126491890C2DFEC"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD96A3685AA1A4A8493A33164A9BDECFA"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAE07699EF27F4E4496E6DA3FB17A8FD6"><enum>(2)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">In developing the guidelines required by
paragraph (1)(A), the Agency shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB405086B446F4A6E9BCA475367CED4DD"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1A2370071EA4703BD71C16146FE9DCD"><enum>(B)</enum><text display-inline="yes-display-inline">review the methods (including technological
means) used to furnish information relating to consumers to consumer reporting
agencies;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0148B78AE6A34DD79CA7CE95BDB335E5"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFFD67EBBA91407C81E77505AB4B0DA8"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD15AD0FD39EB4BC08906E6D27A78F996"><enum>(c)</enum><header display-inline="yes-display-inline">Equal Credit Opportunity Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="H17A84BA163DF4A64838BBDC21AB79E1B"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDEF12EDAB509448AB33765FABCF67476"><enum>(2)</enum><header display-inline="yes-display-inline">Section 702</header><text display-inline="yes-display-inline">Section 702(c) of the Equal Credit
Opportunity Act (15 U.S.C. 1691a) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5855AAA1CEA04949BFA9C5AA94E12846" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HDA387C89E7504CEC8A7E9402EC7EB48F"><enum>(c)</enum><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H856922CBCFB64D9D88ABFEC4086305F7"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2AFE12B025E74346A62753CAFAA1A4CA"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (b);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H12C9D5C4539348F9BE4687A80315DA09"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause commented="no" display-inline="no-display-inline" id="H30874A4C5345480E945A69653BF35A3A"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>(1)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1AD2638EB918479D88BF3507617AF045"><enum>(ii)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (2), (3), (4),
and (5) as subsections (b), (c), (d), and (e), respectively;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58F07071D4614E6D9CE18905C609EBE3"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (c) (as so
redesignated)—</text>
<clause commented="no" display-inline="no-display-inline" id="H9400B2C6546B47CE91581437988FCBD9"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>paragraph (2)</quote>
and inserting <quote>subsection (b)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H00546194C8EC45589D19C77ECF3C839D"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (d) (as so
redesignated)—</text>
<clause commented="no" display-inline="no-display-inline" id="HD9E97D4999804D0096D06A8EF58D6C32"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>subsection</quote> and
inserting <quote>section</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H901A420DFF5947A18EE0C3D6720D6C97"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>Act</quote> and
inserting <quote>title</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC72F378AF6D94B5591346F6289D5A408"><enum>(4)</enum><header display-inline="yes-display-inline">Section 704</header><text display-inline="yes-display-inline">Section 704 of the Equal Credit Opportunity
Act (15 U.S.C. 1691c) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1CF95A6C8956468DB88AE9BEB89A966A"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause commented="no" display-inline="no-display-inline" id="HF955B7EF6C3046E38F0FAC90B57B7780"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5E6F1FC0FB4344438465165EEE49A7AA"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H956C22EDBA64420DB7033104020E5D58"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H3473BBF2ECF94D4385F8AFEFB10CA608"><enum>(I)</enum><text display-inline="yes-display-inline">by inserting <quote>of Governors of the
Federal Reserve System</quote> after <quote>Board</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H31BE54CAEE164F05BAA9E33508C60132"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2595D1B0F85C4CF29919EB8710D86CF3"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (1)(C), by inserting
<quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H71D6AFA1416548AEB3070AF17E305C67"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBA260C93666C4653B63BDA839B03C142"><enum>(vi)</enum><text display-inline="yes-display-inline">by amending paragraph (2) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H20BCCCDF3A4C4051BFE51429C4415EA6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H756605B8B06C487C818BA81B04808402"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB1B3771662F6423AA4C5270BCE8A9553"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (c) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H26B6E92A725A4B9596B5C3D432A43A0D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC2F82B888E4F4851A5F9A663D1505E64"><enum>(c)</enum><header display-inline="yes-display-inline">Overall enforcement authority of Federal
Trade Commission</header><text display-inline="yes-display-inline">Except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency (other than the Consumer
Financial Protection 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 commented="no" display-inline="no-display-inline" id="HC65F820C161D410DBD568F25CEB71577"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (d), by striking
<quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDDFB163D044049A2871711F4CA1F423C"><enum>(5)</enum><header display-inline="yes-display-inline">Section
704<enum-in-header>A</enum-in-header></header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCE97209D9E53420DB6A285FFB93FDB86"><enum>(6)</enum><header display-inline="yes-display-inline">Section 705</header><text display-inline="yes-display-inline">Section 705 of the Equal Credit Opportunity
Act (15 U.S.C. 1691d) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6345FF90EC644DD4B76C72587188D8FA"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (f), by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7E78F1F684143BFA86FFB90A3F71654"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (g), by striking
<quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBFBEA3EC3D64420CB99D0EB6CF6C7A39"><enum>(7)</enum><header display-inline="yes-display-inline">Section 706</header><text display-inline="yes-display-inline">Section 706 of the Equal Credit Opportunity
Act (15 U.S.C. 1691e) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFFCEF8FB6AA14A8CB5A3610986500BD2"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<clause commented="no" display-inline="no-display-inline" id="H343B1798B7B14A22A2E2E61FF03A4E2E"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
such term appears and inserting <quote>Agency</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H09BC8F67696647898495ED0C38277A67"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>Federal Reserve
System</quote> and inserting <quote>Consumer Financial Protection
Agency</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBCB0B2BDB2124973951F1554957D67E6"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (f), by striking <quote>two
years</quote> each place such term appears and inserting <quote>5
years</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4B77A1F58CA5458385A52839929CF326"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (g)—</text>
<clause commented="no" display-inline="no-display-inline" id="HEA675B0A9BF14D1487725BDD0EC3DCE4"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>The agencies
having</quote>, in the 1st sentence, and inserting <quote>The Agency and the
agencies having</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD6A33D168BA44070AB7890EDABBF5135"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>Each agency
referred</quote>, in the 2nd sentence, and inserting <quote>The Agency and each
agency referred</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H9614FD0D4484486AB1E26C9534C37FC0"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (k)—</text>
<clause commented="no" display-inline="no-display-inline" id="H5F6ED1A5FC77440695B81ED559244FA1"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>Whenever an
agency</quote> and inserting <quote>Whenever the Agency or an agency</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC171C06AC4874416AEA96C0B018D334C"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H75E5C34C997F4DFAB83EAD9E718B264F"><enum>(8)</enum><header display-inline="yes-display-inline">Section 707</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9C6ECE917AB4554BA16B0392D831C55"><enum>(d)</enum><header display-inline="yes-display-inline">Fair Debt Collection Practices Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC84244706FBA4E3BA61775A638D01096"><enum>(1)</enum><header display-inline="yes-display-inline">Section 803</header><text display-inline="yes-display-inline">Section 803 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692a) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9401F13B67B748019B9E00BA2F6CEAD6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5F86CC82307D4F30AD2C0DE38C467717"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before paragraph (2) (as so
redesignated) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA23A30E869D244A492845F0A9DA6382A" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCCDB24B09F6F4DC9B853340641244AA8"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B363BB8DF01463AA15E6412390CA6C4"><enum>(2)</enum><header display-inline="yes-display-inline">Section 813</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36F9D7E1CBEC45058A073FE6BC0BE713"><enum>(3)</enum><header display-inline="yes-display-inline">Section 814</header><text display-inline="yes-display-inline">Section 814 of the Fair Debt Collection
Practices Act (15 U.S.C. 1692l) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4A1B81F7AB214DE89C2A532C1C0EEEEE"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (a) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H42129153DDBD4A96B373F07D154B20BB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6846E1D118904F6887587EB7FC00D5A2"><enum>(a)</enum><header display-inline="yes-display-inline">Federal Trade Commission</header><text display-inline="yes-display-inline">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 (other than the Consumer Financial Protection 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 commented="no" display-inline="no-display-inline" id="HAED5719ED6054383BBE6D78B383836EC"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2EEF184E34A241D18C6058FBD1B36637"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF0F6796455BD48C2BD52FE53B35D75A2"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC6246DF8CA1948649FE69AB30C887DE7"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by striking
<quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4001DB1387334CAD9E73903A7BEE96A6"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (1)(C), by inserting
<quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2D5DFDB6FBD44C5D8D7D0AC704451EC1"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HB721607669614E2E9F357517E8A8C9C9"><enum>(vi)</enum><text display-inline="yes-display-inline">by striking paragraph (2) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBD193D1143BE4E548234A2F6969503F8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE3F568B6854846D9BDC993015661870C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA8A74B7971634830A2F6929493FB9B22"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subsection (d) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H5A54581549804E4CA724B31057ED2D9A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HBC156417D9B14AACA6F7DA80CE088B61"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3D1409C712464F80ABC370C2C562575E"><enum>(4)</enum><header display-inline="yes-display-inline">Section 815</header><text display-inline="yes-display-inline">Section 815 (15 U.S.C. 1692m) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H051495DFD7F74B74AA33C6599BD11314"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41DE35756CE9474096EBBB6CC7C0CA45"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Commission</quote> each
place such term appears and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H12D209C678EB472F8CB7993265AABCC2"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C4F0870560D4F55BD3729BD5E827E3A"><enum>(e)</enum><header display-inline="yes-display-inline">Electronic Fund Transfer Act</header>
<paragraph commented="no" display-inline="no-display-inline" id="H61078E360DC845DABE9816912CFE0B6E"><enum>(1)</enum><header display-inline="yes-display-inline">Section 903</header><text display-inline="yes-display-inline">Section 903 of the Electronic Fund Transfer
Act (15 U.S.C. 1693a) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H958585871E8B449781AB34BB25D348EC"><enum>(A)</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="H24550A7106C2460EA8654A31C53EE0CE" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9C75CA77C93F43D88738BA8DC61E3C91"><enum>(3)</enum><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>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8233B7DB9AFD4E3B86D03D9E372BD35F"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (6), by striking
<quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFEC8ACCED712486BBE5EFF01C166F896"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6905B79449814458B0B5274D22F53A3D"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCFECDA0CE44941739AE5E1D829944871"><enum>(4)</enum><header display-inline="yes-display-inline">Section 906</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE9659E08308C4D3B9283061E8C28F793"><enum>(5)</enum><header display-inline="yes-display-inline">Section 907</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD73BE6FA9B8F4EEFA534A279DB579C04"><enum>(6)</enum><header display-inline="yes-display-inline">Section 908</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBFB001DEA9154C5BA156CA1A4B95EF00"><enum>(7)</enum><header display-inline="yes-display-inline">Section 910</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6004B11494004B388EE423E08506E4E5"><enum>(8)</enum><header display-inline="yes-display-inline">Section 911</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4BEA1685274F48BAA91100D558A5DD47"><enum>(9)</enum><header display-inline="yes-display-inline">Section 915</header><text display-inline="yes-display-inline">Section 915(d) of the Electronic Fund
Transfer Act (15 U.S.C. 1693m(d)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H362A1D4B0FCB46F48614000F4B9A3A60"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
such term appears and inserting <quote>Agency</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H31F78ED3935B4820A719CA1F6DCA5AFA"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Federal Reserve
System</quote> and inserting <quote>Consumer Financial Protection
Agency</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A63326A70AE4248A75ED9B308630098"><enum>(10)</enum><header display-inline="yes-display-inline">Section 917</header><text display-inline="yes-display-inline">Section 917 of the Electronic Fund Transfer
Act (15 U.S.C. 1693o) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7D16F00A7A4A46908A86FCD4A7F2E702"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause commented="no" display-inline="no-display-inline" id="H13993211B77345BE860E2F04CA610070"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9DF180B77D3F46A1A514EF5FED252CD4"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5182E799395143EFAF944160A23214F8"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (l)(B), by inserting <quote>of
Governors of the Federal Reserve System</quote> after <quote>Board</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8FB2AC5CADD34D748481FB9EA547EF98"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking paragraph (2) and
inserting:</text>
<quoted-block display-inline="no-display-inline" id="H0750A8B99C2E4DAA81E6825E59A24541" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H209035937B51419DA1974264004B5380"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3336DE8707414EF484C1C6E7D4E4343C"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (c) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H09410D3671EB4718B3E442E3092A4043" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8EAC64D0C4EF4748B313335062C0A169"><enum>(c)</enum><header display-inline="yes-display-inline">Overall enforcement authority of the
Federal Trade Commission</header><text display-inline="yes-display-inline">Except to the extent that enforcement of
the requirements imposed under this title is specifically committed to some
other Government agency (other than the Consumer Financial Protection 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 commented="no" display-inline="no-display-inline" id="H798483AD4E7640CD842FDFD7D120FF87"><enum>(11)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7FB5A903425B4911A0385C6C125DA505"><enum>(12)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H738198CC8A7849BAA23177B753458024"><enum>(13)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCAF0B65DCF584DA2AED589AB061E82BC"><enum>(f)</enum><header display-inline="yes-display-inline">Amendments to HOEPA relating to the Truth
in Lending Act</header><text display-inline="yes-display-inline">Section 158 of
the Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601 note)
(relating to hearings on home equity lending) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H99BBA3C3AAC940C1896B40B81786A92E"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H4732383410584FEBAD0E4DF244E063E7"><enum>(g)</enum><header display-inline="yes-display-inline">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 note) 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 commented="no" display-inline="no-display-inline" id="H737D830C63A54FC99898619ACB58A8FD" section-type="subsequent-section"><enum>4805.</enum><header display-inline="yes-display-inline">Amendments to the Expedited Funds
Availability Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H95A56093FE844C10856EAEC9322537BA"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1A5D197807934960A261049A473F57FA"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H602234F009A54B85B7728F75D17B1BCB" section-type="subsequent-section"><enum>4806.</enum><header display-inline="yes-display-inline">Amendments to the Federal Deposit Insurance
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="HB8DF5E47A2F54B3C9B2EC7038C821B50"><enum>(a)</enum><header display-inline="yes-display-inline">Section 8</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HC6B16B8CE53F4904AB8EBE56457C0FF8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H6976596F0C3B494EBEA6C8DACB08024E"><enum>(7)</enum><header display-inline="yes-display-inline">Referral to consumer financial protection
commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H30E401F14CE2460B84EE86E60219E044"><enum>(b)</enum><header display-inline="yes-display-inline">Section 43</header><text display-inline="yes-display-inline">Section 43 of the Federal Deposit Insurance
Act (12 U.S.C. 1831t) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H058E1CA4331940AD82B10670571DA547"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c), by striking
<quote>Federal Trade Commission</quote> and inserting
<quote>Agency</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7B8D3CB9C9444673B7074622CF6C5166"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by striking
<quote>Federal Trade Commission</quote> and inserting
<quote>Agency</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66C0F841A2A547329E93EEC46DC003CA"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H289B81A6EB5F4BBEA244B61221BA2637"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by striking
<quote>Federal Trade Commission</quote> and inserting <quote>Agency</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB63E5614526445E29D1462B5E562F535"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC2D09B1E0C1E483088654BFE3892DC07" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3E8B564F21AA40819A545F541F3D75FD"><enum>(5)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5E39B9CDE57541F4A7203A8EFA6BE71E"><enum>(c)</enum><header display-inline="yes-display-inline">Section
43<enum-in-header>(f)</enum-in-header></header><text display-inline="yes-display-inline">Section 43(f) of the Federal Deposit
Insurance Act (12 U.S.C. 1831t(f)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H84CDDB68D25A437A922538E1F20599A1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6F3E63FCB60F428FA149FFA7A63759C2" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H256005AD5E2C4F9C889B367E4C13FCEB"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 display-inline="no-display-inline" id="H9AA212453384401CA8AB85A548FD0B48" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H934AFCA0892D4310A94709BC4E6055B0"><enum>(C)</enum><header display-inline="yes-display-inline">Limitation on state action while federal
action pending</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H830C889EBECC4D468AA4080DB7D75014" section-type="subsequent-section"><enum>4807.</enum><header display-inline="yes-display-inline">Amendments to the Gramm-Leach-Bliley
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H109B0CC8FBC940D3B74B17B46E75F130"><enum>(a)</enum><header display-inline="yes-display-inline">Section 501</header><text display-inline="yes-display-inline">Section 501(b) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6801(b)) is amended by inserting <quote>(other than the Consumer
Financial Protection Agency)</quote> after <quote>title</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDC0365A12AB14436A66E32E82EA4602C"><enum>(b)</enum><header display-inline="yes-display-inline">Section 502</header><text display-inline="yes-display-inline">Section 502(e)(5) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6802(e)(5)) is amended by inserting <quote>the Consumer
Financial Protection Agency, </quote> after <quote>(including</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFACB5D2C125D4C388862FDAD9687EAB9"><enum>(c)</enum><header display-inline="yes-display-inline">Section 503</header><text display-inline="yes-display-inline">Section 503(e)(1) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6803(e)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H108B4A82733D4926B0F18E1E1CCBB677"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>Consumer Financial
Protection Agency in consultation with the other</quote> before
<quote>agencies</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F2CA26D59364D9A87C51012F1624BA0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>jointly</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3F5A00C0021A4225A88630DEAD0E36A9"><enum>(d)</enum><header display-inline="yes-display-inline">Section 504</header><text display-inline="yes-display-inline">Section 504(a)(1) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6804(a)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7D4D6EDF9A494F46B0F2619AE42A79B7"><enum>(1)</enum><text display-inline="yes-display-inline">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>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59545CC7AD1242309953923E1E443A70"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>, and the Federal Trade
Commission</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC0D157637E8B482FAA95162FAEF0589E"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting <quote>the Federal banking
agencies, the National Credit Union Administration, the Secretary of the
Treasury, the Federal Trade Commission, and</quote> before
<quote>representatives of State insurance authorities</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0DC636A2595042EC9466636642CD69DA"><enum>(e)</enum><header display-inline="yes-display-inline">Section 505</header>
<paragraph commented="no" display-inline="no-display-inline" id="H84C7A0AEAAFF480FAD89DB5F5141BF9F"><enum>(1)</enum><text display-inline="yes-display-inline">Section 505(a) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6805(a)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7B1B127DFD2540C9A36C9AED907BF1B9"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDA76922D57B545FB96D4526BB868D970"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after paragraph (7) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2A57413EE56B4910A49A346F389855AC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H70C9AB6C215646E6914448BAFF8FFDA8"><enum>(8)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H555927E71842468F9576E9E1E1C69D98"><enum>(2)</enum><text display-inline="yes-display-inline">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><subsection commented="no" display-inline="no-display-inline" id="H0C65F2FFA33B4CEDA992921C46D41DF2"><enum>(f)</enum><header display-inline="yes-display-inline">Section 507</header><text display-inline="yes-display-inline">Subsection 507(b) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6807(b)) is amended by striking <quote>Federal Trade
Commission</quote> and inserting <quote>Consumer Financial Protection Agency,
or in the case of a rule under section 501(b), the Federal Trade Commission or
the Securities and Exchange Commission</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2956F4296CC04A7DB9792704B1E35D79" section-type="subsequent-section"><enum>4808.</enum><header display-inline="yes-display-inline">Amendments to the Home Mortgage Disclosure
Act of 1975</header>
<subsection commented="no" display-inline="no-display-inline" id="H2F7668E0530F4969823368444F81D706"><enum>(a)</enum><header display-inline="yes-display-inline">Section 303</header><text display-inline="yes-display-inline">Section 303 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2802) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFB49A989CC6B42F0831523298065A73F"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1), (2), (3),
(4), (5), and (6) as paragraphs (2), (3), (4), (5), (6), and (7), respectively;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF5C8D11693B6494F990C8546526BBBE0"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting before paragraph (2) (as so
redesignated) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H34C99B4397C742C2A016C191344E3201" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H6AA6ED5F1EC0482E92D4FEDE6BC1C303"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H40EFDFB323CE48F6A7D1D38D876EEF56"><enum>(b)</enum><header display-inline="yes-display-inline">Universal amendment relating to
Agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC29B99FDC44403889A4BA22E518A064"><enum>(c)</enum><header display-inline="yes-display-inline">Section 304</header><text display-inline="yes-display-inline">Section 304 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803(h)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD74FE510871E4712B83DA809D37B0589"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFD959E9705D74843A2D38D9E18CF6A8E"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon at the end of paragraph (3);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D476B5DA87D415FB3C574A0A0849F4B"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and gender</quote> in
paragraph (4), and inserting <quote>age, and gender</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE5655C6A94444C11ABE86B38571F227F"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting after paragraph (4) the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HF70DBD2200E84C7ABBA36D418178322B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H343511D9B2C446A8A618DC73A50D455F"><enum>(5)</enum><text display-inline="yes-display-inline">the number and dollar amount of mortgage
loans grouped according to the following measurements:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBD4631D0194B4057887A7AB6F71C950E"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H19AF94D8E3EC42F8BD7F229CFABFD6B9"><enum>(B)</enum><text display-inline="yes-display-inline">the difference between the annual
percentage rate associated with the loan and a benchmark rate or rates for all
loans;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0CF76AB9B1E64776BE5D429562C118EA"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H874ECE761CAB405EA63F82FE0A1798E8"><enum>(D)</enum><text display-inline="yes-display-inline">such other information as the Agency may
require; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE05A4B72973644CAB3491AECA104E4E2"><enum>(6)</enum><text display-inline="yes-display-inline">the number and dollar amount of mortgage
loans and completed applications grouped according to the following
measurements:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H661E177F354C46D9A9E825D043BB42F7"><enum>(A)</enum><text display-inline="yes-display-inline">the value of the real property pledged or
proposed to be pledged as collateral;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1A7A4AB7F1AC42A7A78EA7A88CE55A2B"><enum>(B)</enum><text display-inline="yes-display-inline">the actual or proposed term in months of
any introductory period after which the rate of interest may change;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H583A25D0FF124B8DBC638FACE06B0264"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46BCF91A99764D5494A3BE2F69154948"><enum>(D)</enum><text display-inline="yes-display-inline">the actual or proposed term in months of
the mortgage loan;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0CF79BB87374487A2DF0BAF2B43B3F2"><enum>(E)</enum><text display-inline="yes-display-inline">the channel through which application was
made, including retail, broker, and other relevant categories;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H229A1A0823FF483ABF9DA22B5F9931DD"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F50547C8C144DE2A6698636C3190B30"><enum>(G)</enum><text display-inline="yes-display-inline">as the Agency may determine to be
appropriate, a universal loan identifier;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9754CF3A5A6341E8815B9049DA011966"><enum>(H)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H03384CBD956F4F4E87D19C00CC78DA75"><enum>(J)</enum><text display-inline="yes-display-inline">such other information as the Agency may
require.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H406E7714BDFA45DAA24FF22C196CBC02"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (h) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HEC29FBABDBC84590B34FD3AAEAE36201" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H9C4AEA31981B494D8D2F6B75656B0ACC"><enum>(h)</enum><header display-inline="yes-display-inline">Submission to agencies</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB637037578BF415AB22F6FD909E25D23"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6B1530DB8E6434589C94A3F15B9CBFA"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26B83D458EF2432097A5AE0054CE7972"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF27272D74F094B76B2C937F25E45B072"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6E6FD3453EB941D399530C1383E01C02"><enum>(C)</enum><text display-inline="yes-display-inline">the Director of the Office of Thrift
Supervision for Federal savings associations and savings and loan holding
companies;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H495DC7D459F3484B9A407FC694AFCAF3"><enum>(D)</enum><text display-inline="yes-display-inline">the National Credit Union Administration
Board for credit unions; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8302E5C2B25448AEA6E3816383132EEB"><enum>(E)</enum><text display-inline="yes-display-inline">the Secretary of Housing and Urban
Development for other lending institutions not regulated by an agency referred
to in subparagraph (A), (B), (C), or (D),</text>
</subparagraph><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="HE8391C3908ED47DF8DD27E9F09ACA574"><enum>(3)</enum><header display-inline="yes-display-inline">Required disclosures</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4A8DEFA2FA494E5B8682CB079BEC949D"><enum>(4)</enum><header display-inline="yes-display-inline">Additional data or
explanations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6218F31DDEDE41F99F6648FFBBD5F30F"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6966D43D2E3441CBA8CF959C0909B477"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (j)—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H179DA69061B04E5694CAF20069B37D69"><enum>(C)</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="H85314231B46E432DAE2C82E11F388BE5" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE0E177CFF30D4FCEA691F6B7311A77A7"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5980BBE8DD3546D1B0F81E651A170A6E"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2D0EF19631045BABE576278F30A5884"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC85A27B762B845A082BB9B0D2AC5E3B7"><enum>(d)</enum><header display-inline="yes-display-inline">Section 305</header><text display-inline="yes-display-inline">Section 305 of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2804) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H76E4DFD176F9478A9FB409E72B96F53A"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H68C254D949C24443B3E219A97A4D193A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7A9C9C7082BD4ACD87B24DDEAA651F36"><enum>(b)</enum><header display-inline="yes-display-inline">Powers of certain other
agencies</header><text display-inline="yes-display-inline">Compliance with the
requirements imposed under this title shall be enforced under—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1BF5C12945604E77AD8518B981F5D004"><enum>(1)</enum><text display-inline="yes-display-inline">section 8 of the Federal Deposit Insurance
Act, in the case of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6D41DD76AFDF4B948695C1FAD4B0146D"><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 commented="no" display-inline="no-display-inline" id="HB6828D2C99DD4791BE5BA4E5A24537AF"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC889F3387C404FC7A9AC65A83DE760C7"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2AB6EDB1C53E4AD6A4182FB87796673A"><enum>(2)</enum><text display-inline="yes-display-inline">subtitle E of the Consumer Financial
Protection Agency Act of 2009, by the Agency;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8FD81EEE80614B1DB4C2A78B861685F5"><enum>(3)</enum><text display-inline="yes-display-inline">the Federal Credit Union Act, by the
Administrator of the National Credit Union Administration with respect to any
credit union; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDFDD7576482B42C0B0B46D9112E3CD88"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HFA470587C8FB4FA4A976F4D456EFF78C"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting at the end of section 305 the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H45330D4D29AB42EF94EE83657583D277" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H51FBFF2A66FC43969CE4D726F0F886C7"><enum>(d)</enum><header display-inline="yes-display-inline">Overall enforcement authority of the
consumer financial protection agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC7D7493220604A5EB432F9BB0AC24DE4"><enum>(e)</enum><header display-inline="yes-display-inline">Section 306</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H8C5886FBA80945F5A932674ADCFDB0ED" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H4DF6DA0702244B54BFB9E0A8AA7663E3"><enum>(b)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC03BC4920B844CDB97C2F716316C6CC9"><enum>(f)</enum><header display-inline="yes-display-inline">Section 307</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H03AD4973EE3E46958C3AFC744A11E9DD" section-type="subsequent-section"><enum>307.</enum><header display-inline="yes-display-inline">Research and improved methods</header>
<subsection commented="no" display-inline="no-display-inline" id="HAF5F6E7BDB514E9982BFEB66BD42A5DD"><enum>(a)</enum><header display-inline="yes-display-inline">Enhanced compliance in economical
manner</header>
<paragraph commented="no" display-inline="no-display-inline" id="H37F5FA2BE38F479495A2BD043426E7B3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E40B47979C0442ABBBEB4481653C426"><enum>(2)</enum><header display-inline="yes-display-inline">Authorization of
appropriation</header><text display-inline="yes-display-inline">There is
authorized to be appropriated such sums as may be necessary to carry out this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3652D34FF3714E4E91C14DE4C21D7EBD"><enum>(3)</enum><header display-inline="yes-display-inline">Authority of agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD7858263B60748B8ADA66B69F3FE28E7"><enum>(b)</enum><header display-inline="yes-display-inline">Recommendations to the
Congress</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H52DEBDA3F75F4D04ADC46D8345144EA1" section-type="subsequent-section"><enum>4809.</enum><header display-inline="yes-display-inline">Amendments to division D of the Omnibus
Appropriations Act, 2009</header>
<subsection commented="no" display-inline="no-display-inline" id="H2C22824789D0451499FC465F53062F1E"><enum>(a)</enum><text display-inline="yes-display-inline">Section 626(a) of title VI of division D of
the Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 note) (as amended by the
Credit Card Accountability Responsibility and Disclosure Act of 2009) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H106E6566015D4C76877BD4ED58E18571"><enum>(1)</enum><text display-inline="yes-display-inline">by striking by paragraph (1) and inserting
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H33A31414A64643AEA2D58F4167E0CE2A" style="OLC">
<paragraph commented="no" display-inline="yes-display-inline" id="H615C6D7EB52A41AE9D845A716CD0F654"><enum>“(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HEFD96AE6E73049E996AF7938AE7EE4A4"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7E10C2BCFCD6482A8CD36C41786A153F"><enum>(3)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6CE33AD4087489AAD9451EC0094B20F"><enum>(4)</enum><text display-inline="yes-display-inline">by striking paragraph (4) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HEE00F6094357435D8257F7C764000B14" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7FEEF0438EFF47D28CA84785289268EC" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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 note) (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 commented="no" display-inline="no-display-inline" id="HA1DD43BD530B409C9769CA42882E325C" section-type="subsequent-section"><enum>4810.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF17B2A81ED6246AAAED75E22396FC929"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H683CCD094E3F48789CC8E39D5C38B4D9"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a)(2), by striking
<quote>and</quote> after the semicolon at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H88F6F2C63ED24D75B2661230B010EC45"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (a)(3), by striking the
period at the end and inserting <quote>; and</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H34DB5C1FEA8F4531B585D145BE46F0AD"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after subsection (a)(3), the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H385DCDB5B03041828C658FA4485F67BA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD2206145ED7C49ABA92D3F3B8328DAE8" section-type="subsequent-section"><enum>4811.</enum><header display-inline="yes-display-inline">Amendments to the Real Estate Settlement
Procedures Act of 1974</header>
<subsection commented="no" display-inline="no-display-inline" id="HF4D4F2E7BD8C4149B5A264F85CDAE3C0"><enum>(a)</enum><header display-inline="yes-display-inline">Section 3</header><text display-inline="yes-display-inline">Section 3 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2602) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFBBF1833EDFA4A978CE1F957E058EF35"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking
<quote>and</quote> after the semicolon at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E2DFAB0E7574B1D9EFBD282B0B67C90"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (8), by striking the period at
the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H12260973F8274D49B1F1E012F4789EE4"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H53BD51CE839D41ECA77477589ABE3D82" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3033E63B7A5C4619B02E158CEAD1CC0D"><enum>(9)</enum><text display-inline="yes-display-inline">the term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3E0EAEEB464A4836AA463C4D400856C7"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD4595919257C4EB8AACC4E05265204C1"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF1778D3C52A4260A5FE38A9ECC746E0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place such term appears and inserting <quote>Agency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5D648B206314FFEAFAD8ACF312CCC13"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>form</quote> each place
such term appears and inserting <quote>forms</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC7E05EFA845F4D979ED64B7C15B00D51"><enum>(c)</enum><header display-inline="yes-display-inline">Section 5</header><text display-inline="yes-display-inline">Section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEC9EB04744AD4A538196249030A4CBCD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place such term appears, and inserting <quote>Agency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCF1DA7A7F67A476FBD378A7639F5A59A"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEDADEA5F0C154F8C830CF3F78B897635"><enum>(d)</enum><header display-inline="yes-display-inline">Section 6</header><text display-inline="yes-display-inline">Section 6(j)(3) of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2605(j)(3)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBF6795BDC650409FB3C98010FBFD5821"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> and
inserting <quote>Director of the Agency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC107D08A39EF400C86032A2CE01B18E3"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC8E493158300462BA26872F70A7AAC29"><enum>(e)</enum><header display-inline="yes-display-inline">Section 7</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2D827AE9270A482B8F19941F59DC6155"><enum>(f)</enum><header display-inline="yes-display-inline">Section 8</header><text display-inline="yes-display-inline">Section 8 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2607) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC4F683918FC14210B2B46392297C1EF4"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)(4)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2215B5E0EC534A6383A62CAD30F1A457"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The Secretary,</quote>
and inserting <quote>The Agency, the Secretary,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFCE94DF0AF24D78A2181B6C2772A8CF"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6874B2458FC6416491533339296DF6D7"><enum>(g)</enum><header display-inline="yes-display-inline">Section 10</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB7929A5F4DDA4D7A8DE1A590353084B5"><enum>(h)</enum><header display-inline="yes-display-inline">Section 16</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAD420E856F224EB88A125423740B9FD8"><enum>(i)</enum><header display-inline="yes-display-inline">Section 18</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F7E36E962CA489BB92B8672325C11E1"><enum>(j)</enum><header display-inline="yes-display-inline">Section 19</header><text display-inline="yes-display-inline">Section 19 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2617) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5C411AB56AF54184B344AFD41CB74165"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA3916016D0064A4DB6FF5522FBB354CA"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place such term appears and inserting <quote>Agency</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB210A58A593C423AB7668B334CB05AF9" section-type="subsequent-section"><enum>4812.</enum><header display-inline="yes-display-inline">Amendments to the Right to Financial
Privacy Act of 1978</header>
<subsection commented="no" display-inline="no-display-inline" id="H0E8A84E7B999494B94A74E548AC82801"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 1101</header><text display-inline="yes-display-inline">Section 1101 of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3401) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6069555450A84B0D9C44258E0B077C5C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H480C57FF2E67454D800085C73140FFBF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE030338EAE19471F8AC1719BBE0C1D35"><enum>(1)</enum><text display-inline="yes-display-inline"><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 commented="no" display-inline="no-display-inline" id="H727B02F6ACBF4E2D927E8E37055E10FE"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (7), by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H37916C8A90DF425CBD65F09B752B0CA7" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HBE080A1DC1A446ACBCDDFC4D802B393E"><enum>(B)</enum><text display-inline="yes-display-inline">the Consumer Financial Protection
Agency;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H92E55FE2AA2847A4B0F729DAC84310D7"><enum>(b)</enum><header display-inline="yes-display-inline">Amendments to section 1112</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E9A31DE122A47458009D69A46E682BF"><enum>(c)</enum><header display-inline="yes-display-inline">Amendments to section 1113</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H20DD13180117424BB213BDD3DF743B2E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEEB03D74FB334536BC196F4D14195D78"><enum>(r)</enum><header display-inline="yes-display-inline">Disclosure to the consumer financial
protection agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA3FFDF63BC414432B63417738DADD01F" section-type="subsequent-section"><enum>4813.</enum><header display-inline="yes-display-inline">Amendments to the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008</header>
<subsection commented="no" display-inline="no-display-inline" id="HDCA33BC76F224FCB9ADABAA6CF2AF787"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEFEEF7F94EE24D23AD27FBA479E2465E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (9);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H51D6E216CF3841F2A358C7F4F8E9C0A2"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB166320B48C14290805C74C273015EAB"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6968F27F107E4DFCB110645B68AD69D4"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting before paragraph (2) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCE0327FB375B477884DB0EFE7943D337" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H45A7358AEA89481EA013B5F7835D9154"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H243CED68540945CF85A3A5994C9D5096"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9A26BB8024494861BC09E7040EF74409"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H7FF070D0BE9745DCBA8428C1AC6E966C"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2A7EDD1CA8F741C9B841C3AD54BBFAAF"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF639D3F72D1E41AC95F95A7BE9B27021"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBD4DE61D73624A37BB96FC93388FCB46" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4BC9481757F64F4FB5B4029C159BC3A6"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF8F99CDFA51141A0AD3D1175B2D0ACF5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7ADFCB908418497DAD96624A38328625"><enum>(d)</enum><header display-inline="yes-display-inline">Section 1508</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7B46B1CF491C48288929299E35BF47BD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H6EFF2212587241BE8508F70F2EA3D40C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H12678E1D5A9F4BF6B5BBFA91C251232F"><enum>(f)</enum><header display-inline="yes-display-inline">Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H215D321F838C48A19CBC1D55A2658CC9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9C021C322F004271B6C79ACE9B04B726"><enum>(2)</enum><header display-inline="yes-display-inline">Factors taken into account</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE5CD9F93BA50436D87D17FF9545E5AE3"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H62E6AC7D838646A78617EAAF3C7D6F70"><enum>(e)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HBA68BAEF75114045B59AAE134450F1F0" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H33584D37A753465D82823DFE9EC2425D" section-type="subsequent-section"><enum>1510.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC0D78C10118D457EB47715E604C90A62"><enum>(f)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HF25EAC61D3604C7880C99509C2F54E71" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HE2655ED0DB9C4E78AE784356ED51BBD3" section-type="subsequent-section"><enum>1513.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H263137FF31554159AB5EC79E616D3E61"><enum>(g)</enum><header display-inline="yes-display-inline">Section 1514</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF62339E725C444668965FD3F581CFA1F" section-type="subsequent-section"><enum>4814.</enum><header display-inline="yes-display-inline">Amendments to the Truth in Savings
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H032464AB9E5341529F5A8965D845F526"><enum>(a)</enum><header display-inline="yes-display-inline">Section 263</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95E22F0658184C2C8A132C04943EBDC4"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF2637FA5FD024BADBE281DC6540CB15E"><enum>(c)</enum><header display-inline="yes-display-inline">Section 266</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H74D1393370BB4AC2B62EA2A05335CBE0"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HABC10F78B66F468F92DEB52A88B56483"><enum>(e)</enum><header display-inline="yes-display-inline">Section 270</header><text display-inline="yes-display-inline">Section 270 of the Truth in Savings Act (12
U.S.C. 4309) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H70F05F3A97054713AAC3721A16D173A1"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC292C0A94124494A8E83CF98FFD4058F"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H600964F9323F4C0FBF79F42A118E7072"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE730A5E4DAC44015AA8C3E9E19DFDFF5"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end, the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H855F8783DBA644E58BDAAA3FFAF8A86A" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5BE81D445EA54531ABDD77E38F799827"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7CD195884F3542E0A3B2C1DC81F2C14A"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4CBC3DE051004CABA1AAEC73515C778D"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB0921CCABF646B89EF3B8EAD6600823"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> and
inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAB10CE5C5036482380BFDB8A4F8C84AD"><enum>(f)</enum><header display-inline="yes-display-inline">Section 272</header><text display-inline="yes-display-inline">Section 272 of the Truth in Savings Act (12
U.S.C. 4311) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8386524AC91040E1B108583D23018582"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H524F5AD716D047B681F39176F32E49E8"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0811EB4A8C314DC49ABBCA6BCD935BA4"><enum>(g)</enum><header display-inline="yes-display-inline">Section 273</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H43BA4F638C5F438DA0342F1FAD9EEFFE"><enum>(h)</enum><header display-inline="yes-display-inline">Section 274</header><text display-inline="yes-display-inline">Section 274 of the Truth in Savings Act (12
U.S.C. 4313) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA154D18E2C2C4C15AF7D57BA2F91D35D"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2) by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59F071721D7041B6B00B9D32E28999B7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (4) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H0208DF4BCE7D47CABAB02EB1137FEE9B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H621795D041AA414CB843663F73B6B9C5"><enum>(4)</enum><header display-inline="yes-display-inline">Agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2D67E9FAB74145469DD4901001E39C65" section-type="subsequent-section"><enum>4815.</enum><header display-inline="yes-display-inline">Amendments to the Telemarketing and
Consumer Fraud Abuse and Prevention Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H6A0F1AAD83F44086AEBFB5B25BB7596D"><enum>(a)</enum><text display-inline="yes-display-inline">Section 4 of the Telemarketing and Consumer
Fraud Abuse and Prevention Act (15 U.S.C. 6102) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0294CC9F99D9476D837A52A272AE393A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCF9ACCBD291C4DBAAB563B3B9FA59555"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>and the Consumer
Financial Protection Agency with respect to a person subject to the authority
of that Agency under the Consumer Financial Protection Agency Act</quote> after
<quote>Commission</quote> each of the first 2 places it appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE6130936C192447CB3888027A3B182C7"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or the Consumer
Financial Protection Agency</quote> after <quote>Commission</quote> the last
place it appears; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3CAE9DBBA44444584C1679FA70C0547"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d), by inserting <quote>or
the Consumer Financial Protection Agency</quote> after
<quote>Commission</quote> each place such term appears.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0565AFF0DD53498EAC1B14834DF8205C"><enum>(b)</enum><text display-inline="yes-display-inline">Section 5 of the Telemarketing and Consumer
Fraud Abuse and Prevention Act (15 U.S.C. 6102) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB126A8A2FBF244CDB0E635C95E31E248"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBE723E7627EB453EA6BE3CFB3A43F954"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>and the Consumer
Financial Protection Agency with respect to a person subject to the authority
of that Agency under the Consumer Financial Protection Agency Act</quote> after
<quote>Commission</quote> each of the first 2 places it appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD4307B819A64A52A528F14D2524A953"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or the Consumer
Financial Protection Agency</quote> after <quote>Commission</quote> the last
place it appears; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF2506A240BE414B90DF1EAD777C7074"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c), by inserting <quote>or
the Consumer Financial Protection Agency</quote> after
<quote>Commission</quote> each place such term appears.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3A113F9698044737971F078D645207F6"><enum>(c)</enum><text display-inline="yes-display-inline">Section 6 of the Telemarketing and Consumer
Fraud Abuse and Prevention Act (15 U.S.C. 6102) is amended by redesignating
subsection (c) as subsection (d) and inserting after subsection (b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H762E0D079D0F43E7A70C2FB710903C3E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFF4A2180ADDF45B4837330FDCDA05A88"><enum>(c)</enum><header display-inline="yes-display-inline">Enforcement by the Consumer Financial
Protection Agency</header><text display-inline="yes-display-inline">Subject to
section 4202 of the Consumer Financial Protection Agency Act of 2009, this Act
shall be enforced by the Consumer Financial Protection Agency, under subtitle E
of that Act, with respect to a person subject to the authority of that Agency
under that Act. For the purpose of the exercise by the Consumer Financial
Protection Agency of its powers under subtitle E, a violation of any
requirement imposed under this Act shall be deemed to be a violation of a
requirement imposed under the Consumer Financial Protection Agency Act. In
addition to its powers under subtitle E of that Act, the Agency may exercise,
for the purpose of enforcing compliance with any requirement imposed under this
Act, any other authority conferred on it by
law.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H833B03F112C04E13BF3387A3FC5C9B92" section-type="subsequent-section"><enum>4816.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92210860C95746D086B34D2A979398DB"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADDC5C158311442E900B3AEC06A58C0D"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (C) as
subparagraph (D); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB7FB88C7389048B3AF3523FA46153C1F"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (B) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4E264830DDEC47679350B41901EFA122" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF2DDD0043EF74ABB999FFB86411A73BF" section-type="subsequent-section"><enum>4817.</enum><header display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="HEAD12B55596541A793BA89B6C65953F0" section-type="subsequent-section"><enum>4818.</enum><header display-inline="yes-display-inline">Amendments to Truth in Lending Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H10DD9C90295D4CE08EFC6BEEEC987FD8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 128(e) of the Truth in Lending Act
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF4A0DF83841C4AF4A4FF20462DE0A939"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (3) and inserting the
following new paragraph (3):</text>
<quoted-block display-inline="no-display-inline" id="H31B99197DAC64A1BAAA1D2A3FD2907FA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA05A29010E034D3EAC28DD1C59CD92CE"><enum>(3)</enum><header display-inline="yes-display-inline">Institutional certification
required</header><subparagraph commented="no" display-inline="yes-display-inline" id="H86D83398EC234EAF8BB00700241B71B0"><enum>(A)</enum><text display-inline="yes-display-inline">Except as provided in subparagraph (B),
before a creditor may issue any funds with respect to an extension of credit
described in paragraph (1), the creditor shall obtain from the relevant
institution of higher education such institution's certification—</text>
<clause commented="no" display-inline="no-display-inline" id="H54BDEFD68A274B1D87A237B65F9D0E34" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">of the enrollment status of the
borrower;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE5B9AF7BC91A43BCA850C9ED32B92ABB" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">of the borrower’s cost of attendance at the
institution as determined by the institution under part F of title IV of the
Higher Education Act of 1965;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H21FE40F8534841C5813D25C3261D5A97" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">of the difference between the borrower’s
cost of attendance and the borrower's estimated financial assistance received
under title IV of the Higher Education Act of 1965 and other assistance known
to the institution, as applicable; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3F68A898B4DE471A9FD30F83C08A6D93" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">that the institution has—</text>
<subclause commented="no" display-inline="no-display-inline" id="H42F7C5096D6F44018F64EFB33285EC4A"><enum>(I)</enum><text display-inline="yes-display-inline">informed the borrower—</text>
<item commented="no" display-inline="no-display-inline" id="HC8F543BAEE17442D95F4DB1395C752CE"><enum>(aa)</enum><text display-inline="yes-display-inline">about the availability of, and the
borrower’s potential eligibility for, Federal financial assistance under this
title, including disclosing the terms, conditions, and interest rates of
Federal student loans;</text>
</item><item commented="no" display-inline="no-display-inline" id="H43731B35F70B4D859945A052187363FD"><enum>(bb)</enum><text display-inline="yes-display-inline">of the borrower’s ability to select a
private educational lender of the borrower’s choice;</text>
</item><item commented="no" display-inline="no-display-inline" id="H4D3CB011F7884188A938492817D442C4"><enum>(cc)</enum><text display-inline="yes-display-inline">about the impact of a proposed private
education loan on the borrowers’ potential eligibility for other financial
assistance, including Federal financial assistance under the Higher Education
Act of 1965; and</text>
</item><item commented="no" display-inline="no-display-inline" id="HC2F88B47BE3A4FD0BB1AB1D141506612"><enum>(dd)</enum><text display-inline="yes-display-inline">about a borrower’s right to accept or
reject a private education loan within the 30-day period following a private
educational lender’s approval of a borrower’s application and about a
borrower’s 3-day right to cancel altogether;</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HE7BF868FDC0C48FD861E10827EBA43D6"><enum>(II)</enum><text display-inline="yes-display-inline">determined whether the borrower has applied
for and exhausted the Federal financial assistance available to the borrower
under the Higher Education Act of 1965 and informed the borrower accordingly;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB3CC80C9D7734B28ACD5F3F14F7D8CE9"><enum>(III)</enum><text display-inline="yes-display-inline">counseled the borrower on the borrower’s
financial aid options.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE42EE033639E43BB8F25DA409DC1C520" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">A creditor may issue funds with respect to
an extension of credit described in paragraph (1) without obtaining from the
relevant institution of higher education such institution’s certification if
such institution fails to provide such certification within 21 calendar days or
15 business days, whichever comes first, of the creditor’s request for such
certification.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2FF6FBD4473E46C7A1923BA5826D5274"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (9), (10), and
(11) as paragraphs (10), (11), and (12), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE87ACEFA412E47169EE10DA58DFACBAA"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (8) the
following new paragraph (9):</text>
<quoted-block display-inline="no-display-inline" id="HBA78D0C303244B83AA3E8489E7F5D6CD" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H72E70770042A4D219410D53CE7AC6288"><enum>(9)</enum><header display-inline="yes-display-inline">Provision of information</header><text display-inline="yes-display-inline">On or before the date a creditor issues any
funds with respect to an extension of credit described in paragraph (1), the
creditor shall notify the relevant institution of higher education, in writing,
of the amount of the extension of credit and the student on whose behalf credit
is extended. The form of such written notification shall be subject to the
regulations of the
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1E6FBC01BE3B4E55B9DE95CFEAC7CFA0"><enum>(b)</enum><header display-inline="yes-display-inline">Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5AB2307FD6A840F98B8E29B47714F702"><enum>(1)</enum><header display-inline="yes-display-inline">Deadline for regulations</header><text display-inline="yes-display-inline">Not later than 365 days after the date of
enactment of this Act, the Agency shall issue regulations in final form to
implement paragraphs (3) and (9) of section 128(e) of the Truth in Lending Act,
as amended by subsection (a). Such regulations shall become effective not later
than 6 months after their date of issuance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF83316FE71F545A29EA70CA7F558AECC"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The regulations in
effect pursuant to section 128(e) of the Truth in Lending Act as of the date of
the enactment of this Act shall remain in effect until the effective date of
the regulations issued under paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2DC07300B2AC4DBE81353E005A9990F0"><enum>(c)</enum><header display-inline="yes-display-inline">Study and report on private education loans
and private educational lenders</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEBAF27DEC13C4694B4102D8087B0512A"><enum>(1)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
enactment of this Act, the Director and the Secretary of Education, in
consultation with the Commissioners of the Federal Trade Commission, and the
Attorney General, shall submit a report to the Committee on Financial Services
and the Committee on Education and Labor of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs and the Committee on
Health Education, Labor, and Pensions of the Senate on private education loans
(as that term is defined in section 140 of the Truth in Lending Act (15 U.S.C.
1650)) and private educational lenders (as that term is defined in such
section).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H991A76D77E294176B1F138AB05C69975"><enum>(2)</enum><header display-inline="yes-display-inline">Content</header><text display-inline="yes-display-inline">The report required by this subsection
shall examine, at a minimum, the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H29352ACF5E904794BA48BFB224CF353F"><enum>(A)</enum><text display-inline="yes-display-inline">the growth and changes of the private
education loan market in the United States;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCDD2D882B02040EA80D0D582D748C627"><enum>(B)</enum><text display-inline="yes-display-inline">factors influencing such growth and
changes;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF37E4FE29A3B4EBEBF3B333827E1CA4A"><enum>(C)</enum><text display-inline="yes-display-inline">the extent to which students and parents of
students rely on private education loans to finance postsecondary education and
the private education loan indebtedness of borrowers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68114131A7BF46CB8DB1A08951A8DA48"><enum>(D)</enum><text display-inline="yes-display-inline">the characteristics of private education
loan borrowers, including the types of institutions of higher education they
attend, socioeconomic characteristics (including income and education levels,
racial characteristics, geographical background, age, and gender), what other
forms of financing borrowers use to pay for education, whether they exhaust
their Federal loan options before taking out a private loan, whether such
borrowers are dependent or independent students (as determined under part F of
title IV of the Higher Education Act of 1965) or parents of such students,
whether such borrowers are students enrolled in a program leading to a
certificate, license or credential other than a degree, an associates degree, a
baccalaureate degree, or a graduate or professional degree and, if practicable,
employment and repayment behaviors;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFEE8B97ECCED43EC992088E31816B01B"><enum>(E)</enum><text display-inline="yes-display-inline">the characteristics of private educational
lenders, including whether such creditors are for-profit, non-profit, or
institutions of higher education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB6C43DD5F5EF4C178F1F9DC373C6A9AC"><enum>(F)</enum><text display-inline="yes-display-inline">the underwriting criteria used by private
educational lenders, including the use of cohort default rate (as such term is
defined in section 435(m) of the Higher Education Act of 1965);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B09B4C76D524FC387AEF214E6FC55E9"><enum>(G)</enum><text display-inline="yes-display-inline">the terms, conditions, and pricing of
private education loans;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A1B5681627C4E6A9467F46C5882CF80"><enum>(H)</enum><text display-inline="yes-display-inline">the consumer protections available to
private education loan borrowers, including the effectiveness of existing
disclosures and requirements and borrowers’ awareness and understanding about
terms and conditions of various financial products;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H34C490E76A2E446AB9F8FDDB5EC6FF43"><enum>(I)</enum><text display-inline="yes-display-inline">whether Federal regulators and the public
have access to information sufficient to provide them with assurances that
private education loans are provided in accord with the Nation’s fair lending
laws and that allows public officials to determine lenders’ compliance with
fair lending laws; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H57200FF98F8C4B40A6AE4434191F0D0A"><enum>(J)</enum><text display-inline="yes-display-inline">any statutory or legislative
recommendations necessary to improve consumer protections for private education
loan borrowers and to better enable Federal regulators and the public to
ascertain private educational lender compliance with fair lending laws.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE95891D0FE9A4236AF7D654D3F398FC4"><enum>(d)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 18 months after the issuance
of regulations under subsection (b)(1), the Consumer Financial Protection
Agency and the Secretary of Education shall jointly submit to Congress a report
on the compliance of institutions and private educational lenders with the
amendments made by this section. The report shall include the degree to which
specific institutions utilize certifications in effectively encouraging the
exhaustion of Federal student loan eligibility and lowering student
debt.</text>
</subsection></section></subtitle><subtitle commented="no" id="HD1AA13B8BC2D43CEB90FE3BAF6E8FEF2" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Improvements to the Federal Trade
Commission Act</header>
<section commented="no" display-inline="no-display-inline" id="HA141795800944572BFFE69FBD82E0AB4" section-type="subsequent-section"><enum>4901.</enum><header display-inline="yes-display-inline">Amendments to the Federal Trade Commission
Act</header>
<subsection commented="no" display-inline="no-display-inline" id="HFF54CED96FA946029785F29DC6D3248F"><enum>(a)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HABE9FAEDFE5C4504B5F6BFD5BD95F9F0"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>this Act or</quote>
after <quote>violates</quote> the first place such term appears;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9FB119DEADC74496B06F417F07C0B9CF"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting a comma after <quote>under
this Act</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8D67460AB61C4BEBAF382E4E680DAAB2"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting a comma after
<quote>subsection (a)(1))</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A93BBFC93FC41A1881FAEB49A4E8E86"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting <quote>a violation of this Act
or is</quote> before <quote>prohibited</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6DF4E17ACC22402286ED28800B3F4FC4"><enum>(b)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H51EC8C0D0752487B9CDDF2273102A2E1"><enum>(o)</enum><header display-inline="yes-display-inline">Unlawful assistance</header><text display-inline="yes-display-inline">It is unlawful for any person, partnership,
or corporation, 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. Nothing in this section shall be
construed as limiting or superseding the protection provided to any provider or
user qualifying for protection under section 230(c)(1) of the Communications
Act of 1934 (47 U.S.C.
230(c)(1)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9AF1F05046B24E5584DC24A66F62108D"><enum>(c)</enum><text display-inline="yes-display-inline">Section 18 of the Federal Trade Commission
Act (15 U.S.C. 57a) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD531D33BEB6941ABA75CB7565D4BA924"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>(h)</quote> and inserting <quote>(f)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H463F274B6A334F34BEE75F7C75163987"><enum>(2)</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" display-inline="no-display-inline" id="H2D9BE3188E8D4F69868BCA69392E5AEE"><enum>(b)</enum><header display-inline="yes-display-inline">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.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6C48872F4C774E97BCE220351852CCBE"><enum>(3)</enum><text display-inline="yes-display-inline">by striking subsection (c);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69B6D84483344FD3A8B868D29AB8372F"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (d), by striking
<quote>(d)(1) The Commission’s</quote> and all that follows through the end of
paragraph (2) and by redesignating paragraph (3) of such subsection as
subsection (c);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H92F826736AD24422B5446DA58E80A042"><enum>(5)</enum><text display-inline="yes-display-inline">In such subsection (c) (as so
redesignated), by inserting <quote>prescribed</quote> after <quote>any
rule</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1D3DA005EA94A79B62388DE1C8559BE"><enum>(6)</enum><text display-inline="yes-display-inline">by striking subsections (f), (i), and (j)
and redesignating subsections (e), (g), and (h) as subsections (d), (e), and
(f), respectively;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F97F08210CD4B2F89D2F99DEE80A4F7"><enum>(7)</enum><text display-inline="yes-display-inline">in subsection (c) (as redesignated), by
inserting <quote>prescribed</quote> after <quote>rule</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC15B57AA563D4C5F8969652D6E181168"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (d) (as redesignated)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA490D9CF8178426893998EB62B002FAE"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A) by striking
<quote>promulgated</quote> and inserting <quote>prescribed</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA86C862E333A44F1AB947B9F16CC72BE"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by striking <quote>the
transcript required by subsection (c)(5),</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1C0A1E45864A4F20BD6C172A62800D3F"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>The
court shall hold unlawful</quote> and all that follows through the end of the
paragraph; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE8EB0F0E5CCD4F5FA554F4ED23EF69FF"><enum>(D)</enum><text display-inline="yes-display-inline">by striking paragraphs (4) and (5) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC88385F131DD4324A5B2E76C952EB1AE" style="traditional">
<paragraph commented="no" display-inline="no-display-inline" id="HBA205E4E7AB1452DB245B9519BBFC246" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">The procedure set forth in this subsection
for judicial review of a rule prescribed under subsection (a)(1)(B) is the
exclusive means for such review, other than in an enforcement
proceeding.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF55F754C58374757A5D187EE33D8AE66"><enum>(9)</enum><text display-inline="yes-display-inline">in subsection (e)(2) (as so redesignated),
by striking <quote>class or persons</quote> and inserting <quote>class of
persons</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0488C160F5F7438591F6B5CB74063801"><enum>(d)</enum><text display-inline="yes-display-inline">Section 16(a)(2) of the Federal Trade
Commission Act (15 U.S.C. 56(a)(2)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6B68EA50259E4ABF8965F809920B8047"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking <quote>;
or</quote> and inserting a semicolon; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5B8809A8C91D48B1AF44FA13F2493843"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (E) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD502381BC9AB4C60B865F8699ACB8CA5" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HEB090F5B75C84EE6BBF8C7662BFBD90F"><enum>(F)</enum><text display-inline="yes-display-inline">to obtain a civil penalty authorized under
any provision of law enforced by the
Commission.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H43CA9E9C7AC64EE3BD6405A15B73D287"><enum>(e)</enum><text display-inline="yes-display-inline">Section 5(l) of the Federal Trade
Commission Act (15 U.S.C. 45(l)) is amended in the first sentence by inserting
<quote>the Commission or</quote> after <quote>brought by</quote>.</text>
</subsection></section></subtitle><subtitle commented="no" id="H2DD13A251B1848D8814B8FCB796CDAE7" level-type="subsequent"><enum>J</enum><header display-inline="yes-display-inline">Miscellaneous</header>
<section commented="no" display-inline="no-display-inline" id="HC32FA35F1DE4425CA778FE2BAD22B8E9" section-type="subsequent-section"><enum>4951.</enum><header display-inline="yes-display-inline">Requirements for State-licensed loan
originators</header><text display-inline="no-display-inline">Paragraph (2) of
section 1505 (b) of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C.
5104(b)(2)) is amended by inserting after and below subparagraph (B), the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA28337D0952C49E69270343BBDA6FC19" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">Notwithstanding the preceding
sentence, a State loan originator supervisory authority may provide for review
of applicants and for granting exceptions, on a case-by-case basis, to the
minimum standard under subparagraph (B), but only to the extent that any such
exception otherwise complies with the purposes of this
title.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>V</enum><header display-inline="yes-display-inline">Capital Markets</header>
<subtitle commented="no" id="HF7AAB3487FBD4F8BAB386D72877DEB68" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Private Fund Investment Advisers
Registration Act</header>
<section commented="no" display-inline="no-display-inline" id="HE8FD2649B2914D618FE965F6C1D20779" section-type="subsequent-section"><enum>5001.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5801F154D7914CC2969225ACF6345652" section-type="subsequent-section"><enum>5002.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H673E96C341D54281B2DE68A75C73070D"><enum>(29)</enum><header display-inline="yes-display-inline">Private fund</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H85D590A2AC2E49DAABEA5656A2868B05"><enum>(30)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41BBCC19524D494AB4888039D5275E01"><enum>(A)</enum><text display-inline="yes-display-inline">has no place of business in the United
States;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB0ABB017588E4995B555CD5A8F19EE90"><enum>(B)</enum><text display-inline="yes-display-inline">during the preceding 12 months has
had—</text>
<clause commented="no" display-inline="no-display-inline" id="H1F0BE61DE634469C8E6A079F95F2BEFA"><enum>(i)</enum><text display-inline="yes-display-inline">in total, fewer than 15 clients and
investors in the United States in private funds advised by the investment
adviser; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H59E81B20521B4BFEB2C70633B7358BCB"><enum>(ii)</enum><text display-inline="yes-display-inline">aggregate assets under management
attributable to clients and investors in the United States in private funds
advised by the investment adviser of less than $25,000,000, or such higher
amount as the Commission may, by rule, deem appropriate in the public interest
or for the protection of investors; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2B46BAD195A144639F5122C290069C32" section-type="subsequent-section"><enum>5003.</enum><header display-inline="yes-display-inline">Elimination of private adviser exemption;
Limited exemption for foreign private fund advisers; Limited intrastate
exemption</header>
<subsection commented="no" display-inline="no-display-inline" id="HF7D8479DBAFE441D8EC473894EC80BAA"><enum>(a)</enum><header display-inline="yes-display-inline">Exemption</header><text display-inline="yes-display-inline">Section 203(b) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(b)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HCE2DBF46D0DA4722A13B8C82CBFA4955"><enum>(2)</enum><text display-inline="yes-display-inline">by amending paragraph (3) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HFF847D600D7E4B6F8C611E38FCF359CC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HECC091F711094A2C91C935341EF665A5"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>or</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72CB760B063049FA93CBEDD6821E2D0B"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (6)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H28D94803268A450EA5C16BAE93EBB185"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>or</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H985FA1460DAE4C5188BC0F6F908AFD42"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period
at the end and adding <quote>; or</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D7882D29DA3464FB435E277664D0712"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H22B22B62F32A4DDB94A65184AC2C7E1C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2DBA466A1F3A4FB3A6D4AE774EA2D727"><enum>(5)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD3C58ECAD87D4D7190945C22FF9588B0" style="traditional">
<paragraph commented="no" display-inline="no-display-inline" id="HCA98F5505B964BF5A399C8F773FDBC9B"><enum>(7)</enum><text display-inline="yes-display-inline">any investment adviser who solely
advises—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H346D91CEC3CA4B909B6C8177C686F79C"><enum>(A)</enum><text display-inline="yes-display-inline">small business investment companies
licensed under the Small Business Investment Act of 1958;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H738EBE021E7C463CA2E630ADD98278FD"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HED8874176E2E4955BAEBAB3B533D9763"><enum>(C)</enum><text display-inline="yes-display-inline">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></subsection><subsection commented="no" display-inline="no-display-inline" id="H08B587B3E4DA482091D02A93896E7AED"><enum>(b)</enum><header display-inline="yes-display-inline">Consideration of risk</header><text display-inline="yes-display-inline">Section 203(c) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(c)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H79C0AC634CBB4579B7E547FF8D18DB6D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD02E10F48CCB4A21AD5DC07E68821F9D"><enum>(3)</enum><text display-inline="yes-display-inline">The Commission shall take into account the
relative risk profile of different classes of private funds as it establishes,
by rule or regulation, the registration requirements for private
funds.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB6A474F5DAE945CCBE8C51920743E07E" section-type="subsequent-section"><enum>5004.</enum><header display-inline="yes-display-inline">Collection of 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 commented="no" display-inline="no-display-inline" id="H36BEFB494EAA4452B7B2542D4BC36409"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE77D925040274398A5CBC7ED2DF425BD"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (a) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H119152482A97428B881E42978E027212" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H4F5C7DECA91F49F1A3A3D88283881E36"><enum>(b)</enum><header display-inline="yes-display-inline">Records and reports of private
funds</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAD77EFC906DD409CA162AD6E0F21F49A"><enum>(1)</enum><header display-inline="yes-display-inline">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 the
Financial Services Oversight Council, 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 commented="no" display-inline="no-display-inline" id="HDDDBA45997C14810A808D9A58B4EDA38"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEA6E1A2B700A4A3A85218885234BFBD6"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of assets under
management;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H757D18178EE544EA8D7B9018497A0562"><enum>(B)</enum><text display-inline="yes-display-inline">the use of leverage (including off-balance
sheet leverage);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82A4CDE96CC14A02A8D8D5A54257DEBE"><enum>(C)</enum><text display-inline="yes-display-inline">counterparty credit risk exposures;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B4FE674926B433090EF7C5E13B4FEAC"><enum>(D)</enum><text display-inline="yes-display-inline">trading and investment positions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF63127DF6B4A40939FFE749B0BBA5465"><enum>(E)</enum><text display-inline="yes-display-inline">trading practices; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2591A29B13684776AE2238D9A81AF7C5"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFCA70DC7CA8641849F57DD7D783C3AEA"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB8B0DEFE94F49EDB358F25667FAE46F"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEB18341E5C97434CA918DCD30DDE6BD7"><enum>(5)</enum><header display-inline="yes-display-inline">Examination of records</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA11ED24FB3D1464AA1A6D6A7E0547735"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3F18AFD7D45048DBBF7A3A5CBD0BC32A"><enum>(B)</enum><header display-inline="yes-display-inline">Availability of records</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H354C9882CE3B4B3DB9329FFFCDC43910"><enum>(6)</enum><header display-inline="yes-display-inline">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 the Financial Services
Oversight Council, copies of all reports, documents, records, and information
filed with or provided to the Commission by an investment adviser under this
subsection as the Board, or the Financial Services Oversight Council, 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 commented="no" display-inline="no-display-inline" id="HA7949990FCE142A0BCC273A9BB93554C"><enum>(7)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF1CBB4D023424A158D5791AA38CA3009"><enum>(8)</enum><header display-inline="yes-display-inline">Applicable privileges not
waived</header><text display-inline="yes-display-inline">An investment advisor,
and investment advisor to a private fund, a private fund, foreign private fund
advisor, a foreign private fund, an advisor to a venture capital fund, a
venture capital fund, or other person shall not be compelled to waive and 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 commented="no" display-inline="no-display-inline" id="H12177130D8EB474696383B21D5A94FE5"><enum>(A)</enum><text display-inline="yes-display-inline">the Financial Services Oversight
Council;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF9F7E6F6883443D8BC9047E2B4BE6EDF"><enum>(B)</enum><text display-inline="yes-display-inline">the Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9966737F44B64ECEB790730D0067185A"><enum>(C)</enum><text display-inline="yes-display-inline">any Federal financial regulator or State
financial regulator, in any capacity; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD1DCAC8B81EE4C15AED4A5FCE69D8A84"><enum>(D)</enum><text display-inline="yes-display-inline">any other agency of the Federal Government
(as defined in section 6 of title 18, United States Code).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB1BBC89878184EE1BEE185F90B962281"><enum>(9)</enum><header display-inline="yes-display-inline">Non-disclosure of certain proprietary
information and confidentiality of reports</header><text display-inline="yes-display-inline">Any proprietary information of an
investment adviser ascertained by the Commission from any report required to be
filed with the Commission pursuant to this section 204(b) shall be subject to
the same limitations on public disclosure as any facts ascertained during an
examination as provided by section 210(b) of this title. The Commission may not
compel the private fund to disclose such proprietary information to
counterparties and creditors. For purposes of this section, proprietary
information shall include sensitive, non-public information regarding the
investment adviser's investment or trading strategies, analytical or research
methodologies, trading data, computer hardware or software containing
intellectual property, and any additional information that the Commission
determines to be proprietary. 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 to 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 commented="no" display-inline="no-display-inline" id="HABABED5A14794071B25A05E501FFFD3F" section-type="subsequent-section"><enum>5005.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H68060DA14B26405CB49D0D1C671A57ED" section-type="subsequent-section"><enum>5006.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H95B7B2D883A140DAA7CBB9A4C9EFDE81"><enum>(l)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA060936FDB63401488DFBC9E135BC853" section-type="subsequent-section"><enum>5007.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E56EFA5752E4028B2DEA2999165129A"><enum>(m)</enum><header display-inline="yes-display-inline">Exemption of and reporting by certain
private fund advisers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0A22FFCDDE0B4F91BFD992A314E361F9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall provide an exemption
from the registration requirements under this section to any investment adviser
of private funds, if each of such investment adviser acts solely as an adviser
to private funds and has assets under management in the United States of less
than $150,000,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE8614A8884F84BAAB7421E791E6E407E"><enum>(2)</enum><header display-inline="yes-display-inline">Reporting</header><text display-inline="yes-display-inline">The Commission shall require investment
advisers exempted by reason of this subsection to maintain such records and
provide to the Commission such annual or other reports as the Commission
determines necessary or appropriate in the public interest or for the
protection of investors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9433F50960AF48A0832A5CC21025BEB9"><enum>(n)</enum><header display-inline="yes-display-inline">Registration and examination of mid-sized
private fund advisers</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H09190976BA1D42189FC16B09201F3C46" section-type="subsequent-section"><enum>5008.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD1E9683932B24E26838FB53DFF3A4947"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subsection (a) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HEA72D8A92DD041C69326AD48500AA9F8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H07341DF4C1764764B66AF67953AA3DD9"><enum>(A)</enum><text display-inline="yes-display-inline">size;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCA696E12155A4D66B0D7492624B52AF7"><enum>(B)</enum><text display-inline="yes-display-inline">scope;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC2A1F3DEA9DD4193AC67A0B9064F3F0B"><enum>(C)</enum><text display-inline="yes-display-inline">business model;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD59D8D0BC8864D8BAE1369EC6234D0DD"><enum>(D)</enum><text display-inline="yes-display-inline">compensation scheme; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5C32A19D1943480B847DA1866E6E21A7"><enum>(E)</enum><text display-inline="yes-display-inline">potential to create or increase systemic
risk;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8192C425A1894C5DA9CB0E90F39BA005"><enum>(2)</enum><text display-inline="yes-display-inline">prescribe different requirements for
different classes of persons or matters; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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), 203(m), 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 commented="no" display-inline="no-display-inline" id="H68B1B3674CCE488291875064F231D05F" section-type="subsequent-section"><enum>5009.</enum><header display-inline="yes-display-inline">GAO study</header>
<subsection commented="no" display-inline="no-display-inline" id="HD7B41782D5B54402B2A7C1AF19EDB55F"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H215F0444CC67421D8ABE2818F4732C29"><enum>(b)</enum><header display-inline="yes-display-inline">Report to the Congress</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1AC3CF3866AF42968EB792F00B765ED5" section-type="subsequent-section"><enum>5010.</enum><header display-inline="yes-display-inline">Effective date; Transition period</header>
<subsection commented="no" display-inline="no-display-inline" id="H6997D3F0C4DC4055AC792028FA0F88E2"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28D43D7995BC4DE4ABF6D7E2203BE137"><enum>(b)</enum><header display-inline="yes-display-inline">Transition period</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall prescribe rules and regulations to the extent necessary 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 commented="no" display-inline="no-display-inline" id="H061280A13C3B4DFBA67167B2294768D9" section-type="subsequent-section"><enum>5011.</enum><header display-inline="yes-display-inline">Qualified client standard</header><text display-inline="no-display-inline">Section 205(e) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–5(e)) is amended by adding at the end the following:
<quote>With respect to any factor used in any rule or regulation by the
Commission in making a determination under this subsection, if the Commission
uses a dollar amount test in connection with such factor, such as a net asset
threshold, the Commission shall, by order, not later than 1 year after the date
of 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 $100,000 shall be rounded
to the nearest multiple of $100,000.</quote>.</text>
</section></subtitle><subtitle commented="no" id="HA8D1B6FDE0754AC19CF3C1570DA42618" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Accountability and Transparency in Rating
Agencies Act</header>
<section commented="no" display-inline="no-display-inline" id="H9A480F686A80462897642610A37DD1DF" section-type="subsequent-section"><enum>6001.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA04572DF7A944AB697F976A53503C20A" section-type="subsequent-section"><enum>6002.</enum><header display-inline="yes-display-inline">Enhanced regulation of nationally
recognized statistical rating organizations</header>
<subsection commented="no" display-inline="no-display-inline" id="H0A9E4D36A8464787AC3A049621F7FD8D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 15E of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–7) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA13D71A3B0614A6E8F9F1EA0CBD2E160"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB9016A9865B14E4D8AAE3364229E4FC1"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (1)(A) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB2E96932012F4B8CBE01F13A695F2499" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8E329DD8F50E4AB280249D18492CA203"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each credit rating agency shall register as
a nationally recognized statistical rating organization for the purposes of
this title (in this section referred to as the ‘applicant’), and shall file
with the Commission an application for registration, in such form as the
Commission shall require, by rule or regulation issued in accordance with
subsection (n), and containing the information described in subparagraph
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H466ED6F34D2D4C3D87293C442FE6EF7C"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking
<quote>furnished to</quote> and inserting <quote>filed with</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BB09149141146D1B80E9D5A953A7FAB"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2)(B)(i)(II), by striking
<quote>furnished to</quote> and inserting <quote>filed with</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H305D370FF1AD47B7B5D55ED7898971C0"><enum>(D)</enum><text display-inline="yes-display-inline">by adding at the end of paragraph (1) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H2F585952C02E4BE4BFE7DD612CAF5EC8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H7FC046513C7340EDBAC26B5C9B282FA9"><enum>(F)</enum><header display-inline="yes-display-inline">Exemptions</header><text display-inline="yes-display-inline">The registration requirement in
subparagraph (A) shall not apply to—</text>
<clause commented="no" display-inline="no-display-inline" id="HBBA14718D5B94F3FB3134006B338EB1F"><enum>(i)</enum><text display-inline="yes-display-inline">a credit rating agency if the credit rating
agency—</text>
<subclause commented="no" display-inline="no-display-inline" id="H896A9767324E4AFB9B9ACFAC085CAFBF"><enum>(I)</enum><text display-inline="yes-display-inline">does not engage in the provision of credit
ratings to issuers of securities for a fee; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1F2A3299CADA4C3A9C9153DA13833236"><enum>(II)</enum><text display-inline="yes-display-inline">issues credit ratings only in any bona fide
newspaper, news magazine, or business or financial publication of general and
regular circulation; or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H10553F79FB854E938488B1D0409361DA"><enum>(ii)</enum><text display-inline="yes-display-inline">such other persons as the Commission may
designate by rules and regulations or order when in the public interest and for
the protection of
investors.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEA208D04281A44B0A6F5C366663B327D"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H01E7B2553C224E03A12CAC283B439210"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H659C6EB5C9004BDB88C6264580657845"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)(B), by striking
<quote>furnishing</quote> and inserting <quote>filing</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62A38EAD7E174E95A6A13DE7820551BF"><enum>(C)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HDDC3E291FD7549578705BF04D1802F13"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB1BB1F2D30F84857960BE093CAD72593"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2E7F878D29834E2DA2A3DC912B9CAC57"><enum>(i)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H3D0588810C8D4EDEAA92B6390EC3ED51"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7817807534CE4BEBA76C262B4CD37F46" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H36756A9943F54FF6930DC84ADC4D03A3"><enum>(3)</enum><header display-inline="yes-display-inline">Review of internal processes for
determining credit ratings</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H899BE2FBBAB14672B1206D692238DAED"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H25A4CC1B404E45DDB8AF6190CF6E676D"><enum>(i)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2B1BA949B6AA423DAC49C59447A145E5"><enum>(ii)</enum><text display-inline="yes-display-inline">the nationally recognized statistical
rating organization adheres to such system; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H12FFE84FCEE548A0B975B67C9D635AAC"><enum>(iii)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H4447235B893B403FA29FA2672CDE9789"><enum>(B)</enum><header display-inline="yes-display-inline">Manner and frequency</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0C64DE6D978942F29969C56CFB0A3B41"><enum>(4)</enum><header display-inline="yes-display-inline">Provision of information to the
commission</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF14891BD5DF349459489820D113B34F8"><enum>(5)</enum><header display-inline="yes-display-inline">Disclosures with respect to structured
securities</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6CBF3B62235C4007BC8044F533EA2F45"><enum>(A)</enum><header display-inline="yes-display-inline">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 disclosure of the
procedures and methodologies by which any nationally recognized statistical
rating organization determines credit ratings for structured securities—</text>
<clause commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H941FA021E47F451593EAC794BB3EBF0C"><enum>(B)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HDE0B4D2A848145BD97964506E5E02034"><enum>(6)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H3EC3CE90392D4B199B58D262AC26A070"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6E8BB2B2073B405E859CB7446DA6A9B2"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H457E57FED90949CB8F8991093E9A38B8"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HD161E3FBCD88419CA9B66E4585FCD3FA"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4)—</text>
<clause commented="no" display-inline="no-display-inline" id="HAC942FA31AE341CB8FEAD3BE434C65ED"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>furnish</quote> and
inserting <quote>file</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC8239848AD704B66B24772F027114D5B"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the
end;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFBDC478C08DA44769076244099B3444F"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking the period at
the end and inserting a semicolon; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBCA0F3D8999F4BB2A305122DA4471169"><enum>(F)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFA07E548AB074508A5174D20FB535BA4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H41BA562071184CFE9EC6D61921CCD130"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H9F061850F3EF4620A62A58413C59FE41"><enum>(7)</enum><text display-inline="yes-display-inline">fails to conduct sufficient surveillance to
ensure that credit ratings remain current, as
applicable.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H230D6B86642B47958B16C6DD46890122"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (e), by striking paragraph
(1) and inserting the following new paragraph (1):</text>
<quoted-block display-inline="no-display-inline" id="HB0CB83CDD18D4A2A8BAA086CA0AE7C4C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1D81D7AD77014971AF5DA9C81AE24E5F"><enum>(1)</enum><header display-inline="yes-display-inline">Voluntary withdrawal</header><text display-inline="yes-display-inline">A nationally recognized statistical rating
organization may, upon such terms and conditions as the Commission may
establish as necessary in the public interest or for the protection of
investors, withdraw from registration by furnishing a written notice of
withdrawal to the Commission, provided that such nationally recognized
statistical rating organization certifies that it received less than
$250,000,000 during its last full fiscal year in net revenue for providing
credit ratings on securities and money market instruments issued in the United
States.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8377EF228084DF28583530866722413"><enum>(6)</enum><text display-inline="yes-display-inline">by amending subsection (h) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H5605D917FC86468D867B33D29A383DF3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H84EADD3623924F95A223104CA062CFA0"><enum>(h)</enum><header display-inline="yes-display-inline">Corporate governance, organization, and
management of conflicts of interest</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1CE12A5B6E2B4EE39BD4D033F4EFC118"><enum>(1)</enum><header display-inline="yes-display-inline">Board of directors</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8BF76A53CEF4E9988CAA857CFEA2235"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each nationally recognized statistical
rating organization shall have a board of directors.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BCAC7DB9D7643469D66265809192CC1"><enum>(B)</enum><header display-inline="yes-display-inline">Independent directors</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H90426F2EF5BB48AA90BDCE01E2644214"><enum>(i)</enum><text display-inline="yes-display-inline">accept any consulting, advisory, or other
compensatory fee from the nationally recognized statistical rating
organization; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBE454F1D9D974840803F152B3537F59E"><enum>(ii)</enum><text display-inline="yes-display-inline">be a person associated with the nationally
recognized statistical rating organization or with any affiliated company
thereof.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F2BE72792C642A09E654C42C583AF21"><enum>(C)</enum><header display-inline="yes-display-inline">Compensation and term</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H95356A7EF8D3479CB712D40E93AD8081"><enum>(D)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">In addition to the overall responsibility
of the board of directors, the board shall oversee—</text>
<clause commented="no" display-inline="no-display-inline" id="H12EB1D4B4F9A4E7691FF9072955C75F2"><enum>(i)</enum><text display-inline="yes-display-inline">the establishment, maintenance, and
enforcement of policies and procedures for determining credit ratings;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA7D724DD8CA74CEBAC3FEB70BD238606"><enum>(ii)</enum><text display-inline="yes-display-inline">the establishment, maintenance, and
enforcement of policies and procedures to address, manage, and disclose any
conflicts of interest;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB1F021937A574A8082C8FF7571C0DE28"><enum>(iii)</enum><text display-inline="yes-display-inline">the effectiveness of the internal control
system with respect to policies and procedures for determining credit ratings;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD3A85F8C5DB64FDB912E793E91CF9EA9"><enum>(iv)</enum><text display-inline="yes-display-inline">the compensation and promotion policies and
practices of the nationally recognized statistical rating organization.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H035D77FF45A14150A99E216E3649A9BC"><enum>(2)</enum><header display-inline="yes-display-inline">Organization policies and
procedures</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HFBA5BC4AA441465B96FA0B06040A626E"><enum>(3)</enum><header display-inline="yes-display-inline">Commission rules</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB15266238B9F4BB59F5A73E0A9AD2648"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H683DDC5E11B24DF7B38E3DDFBABD640A"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H02C2EC904CBE49C1BB9FD41FDC3AAF15"><enum>(E)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H23A590DDF107409EB9A191C9BF81A7A6"><enum>(G)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC362895D22F146AD9D9BD1275AB969F1"><enum>(4)</enum><header display-inline="yes-display-inline">Look-back requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H63AE4665F05C433291754D5FF3E0409E"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H8A7D2CC0E5C0433495486156D3FF4025"><enum>(i)</enum><text display-inline="yes-display-inline">conduct a review to determine whether any
conflicts of interest of the employee influenced the credit rating; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA84154E4EB334860B9A51EB83DCAF436"><enum>(ii)</enum><text display-inline="yes-display-inline">take action to revise the rating if
appropriate, in accordance with such rules as the Commission shall
prescribe.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7778D27C871F4439B77250B7C6B0E077"><enum>(B)</enum><header display-inline="yes-display-inline">Review by commission</header>
<clause commented="no" display-inline="no-display-inline" id="H7F4BCB425D5E45AB888FA80829704D98"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H30F9B2DC164548E38E28D607EC7FF20D"><enum>(ii)</enum><header display-inline="yes-display-inline">Timing of reviews</header><text display-inline="yes-display-inline">The Commission shall review the code of
ethics and conflict of interest policy of each nationally recognized
statistical rating organization—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1CF9AA7132F84130B83D0FFA2C7390F9"><enum>(I)</enum><text display-inline="yes-display-inline">not less frequently than annually;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H272F96134BBA4C449E313BE00D27EB11"><enum>(II)</enum><text display-inline="yes-display-inline">whenever such policies are materially
modified or amended.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2A5744B6E023402FBB4237D99742F212"><enum>(5)</enum><header display-inline="yes-display-inline">Report to Commission on certain employment
transitions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4FE0A418CF7C40499DA0D6291354423C"><enum>(A)</enum><header display-inline="yes-display-inline">Report required</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0617B757820642F895B8992591F79495"><enum>(i)</enum><text display-inline="yes-display-inline">was a senior officer of such
organization;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H76B0A380598C4DE2AF00EC5B75D4FD69"><enum>(ii)</enum><text display-inline="yes-display-inline">participated in any capacity in determining
credit ratings for such obligor, issuer, underwriter, or sponsor; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC424C09DAC9E4B1F905022D761EFF900"><enum>(iii)</enum><text display-inline="yes-display-inline">supervised an employee described in clause
(ii).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H521C713F439144ECB6D6B8F65A9FEC0F"><enum>(B)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H4D62C31D721C4D0AA4085E8181EFB8B4"><enum>(7)</enum><text display-inline="yes-display-inline">by amending subsection (j) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HF6DBB2DA00704270A9D79C8B44347326" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H976C7A82E3764D4BA686BD1BF1AA1F02"><enum>(j)</enum><header display-inline="yes-display-inline">Designation of compliance officer</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE8453BC173A94D4388D714E4C9CE94A5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each nationally recognized statistical
rating organization shall designate an individual to serve as a compliance
officer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H243608C144974F29BB6257733FF503F1"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The compliance officer shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB091E3FCCD97479886ADD8C9566EA980"><enum>(A)</enum><text display-inline="yes-display-inline">report directly to the board of the
nationally recognized statistical rating organization;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCCC68A18EB3044BDBCB6B8D688EDE1F5"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H60A996935DEE44FEAA5877C0D3CA7A1C"><enum>(D)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H52DF10D5433845CAB19988C174031DF0"><enum>(E)</enum><text display-inline="yes-display-inline">be responsible for administering the
policies and procedures required to be established pursuant to this
section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7B6345D7CD6C4744921EB866483D7C16"><enum>(F)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HFAA55BC1171B4E8A8E8843DDC6ABCAD4"><enum>(G)</enum><text display-inline="yes-display-inline">establish procedures—</text>
<clause commented="no" display-inline="no-display-inline" id="H33EC48708EA241AB87DD17F3830CE393"><enum>(i)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HD4B86AF904B94C56ACB3D44FC18A1E70"><enum>(iii)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H162DE602477B4B7EBFB4688A585461C3"><enum>(3)</enum><header display-inline="yes-display-inline">Limitations</header><text display-inline="yes-display-inline">The compliance officer shall not, while
serving in that capacity—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HACD2CF8F456B428EAFB9F94EEC760833"><enum>(A)</enum><text display-inline="yes-display-inline">determine credit ratings;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HDDC1A0BD8A2B45F498C32E3595045506"><enum>(C)</enum><text display-inline="yes-display-inline">perform marketing or sales functions;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H137324D8B0A14C2492C30CCB05BE90E8"><enum>(D)</enum><text display-inline="yes-display-inline">participate in establishing compensation
levels, other than for employees working for the compliance officer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7ED8C6E71D04F9CBDE310086D31C195"><enum>(4)</enum><header display-inline="yes-display-inline">Annual reports required</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H89C7499A675A47C78C5FA274E0FB43B5"><enum>(5)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HDEA18E09669D4887A0FC3E1AFAA2A364"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (k)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H83CD4E089D0742A981526CF59782B9C5"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>, on a confidential
basis,</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5CB900EECE0F4BF2BCD70EDFFF7EF730"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>furnish to</quote> and
inserting <quote>file with</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA90F87E4A2DB4511B0F52F64501270C6"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>Each nationally</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2B59AB07CED249209F914B26F702323C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H8A7F43B2FBF743D7B43C674B4D892C17"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each
nationally</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H83791EA501404AECB52F78A77748BBF4"><enum>(D)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF1E3A2CCD1F9472DA26AEB3BA0F4DD38" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H2D5AD4A798CA420780C6FEED0C4C2DE6"><enum>(2)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H119762E94624445EB3A69CDBED2C14FA"><enum>(10)</enum><text display-inline="yes-display-inline">by amending subsection (p) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H65C0DCADE2D947EE87BA388719072C57" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD7F22E4ECB474A04ACE5D784AEB0BF7B"><enum>(p)</enum><header display-inline="yes-display-inline">Establishment of SEC office</header>
<paragraph commented="no" display-inline="no-display-inline" id="H132F8D4ADE374C299C1FC5A3A374BC58"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H886B63B2B7BA46C48BAED73F185D7AB8"><enum>(2)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H6E64422614494CE7A566849668F45188"><enum>(3)</enum><header display-inline="yes-display-inline">Rulemaking authority</header><text display-inline="yes-display-inline">The Commission shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H94DFF2AE4D7843658DD1F3B9FC530CCA"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H95DC00DBA06545EBAFFF95F48067FC28"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2EB29A53FC5549CFAC005A9D5D1B084D"><enum>(11)</enum><text display-inline="yes-display-inline">by adding after subsection (p) the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="HCF142955B24C48C7A34FF767724C2664" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA4264CA2F4674CDE89DFB56D9C8B1E0F"><enum>(q)</enum><header display-inline="yes-display-inline">Transparency of ratings
performance</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7CB40FCEAB4E4ACDAAD1888F026DA4A4"><enum>(1)</enum><header display-inline="yes-display-inline">Rulemaking required</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC87CEA227AB04E55B450C5FA2C202A22"><enum>(2)</enum><header display-inline="yes-display-inline">Content</header><text display-inline="yes-display-inline">The rules of the Commission under this
subsection shall require, at a minimum, disclosures that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8EA09E3991640C6ACFE3464573DDE77"><enum>(A)</enum><text display-inline="yes-display-inline">are comparable among nationally recognized
statistical rating organizations, so that investors can compare rating
performance across rating organizations;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2762612F125E46DFB93A503578FFAF72"><enum>(B)</enum><text display-inline="yes-display-inline">are clear and informative for a wide range
of investor sophistication;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7AF43F3A5F6B4022A9698158FE43165C"><enum>(C)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H6B761956D4284ED3AFF4BFD8C8F8BDAF"><enum>(D)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H6A6F3293C265496B9C7F9125BC71E83B"><enum>(r)</enum><header display-inline="yes-display-inline">Credit ratings methodologies</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFCC2096C545B4B7AA2C99D1DAF8B8C8B"><enum>(1)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4DA1B68577F34D7BA87AD95FBE4597F5"><enum>(2)</enum><header display-inline="yes-display-inline">Symbols</header><text display-inline="yes-display-inline">The Commission may prescribe rules that
require nationally recognized statistical rating organizations to establish
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, provided such rules do not prevent public pension funds or other
State regulated entities from investing in rated products.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H52051182CF7E4AE6BF7F0D3C1BF115D8"><enum>(3)</enum><header display-inline="yes-display-inline">Rating clarity and consistency</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H351C9E509038413C9541190F0018F1D6"><enum>(A)</enum><header display-inline="yes-display-inline">Commission obligation</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H52421719D7F14AB5AA02F018CC2351C6"><enum>(i)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2BC41AEE421A4CB9B7374BCC7C93675F"><enum>(ii)</enum><text display-inline="yes-display-inline">to define clearly any credit rating symbol
used by that organization; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H52E097A1673946938676F3ACBC48B6B0"><enum>(iii)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2D12EF40814943168C13572BE8FA4FCD"><enum>(B)</enum><header display-inline="yes-display-inline">Additional credit factors</header><text display-inline="yes-display-inline">Nothing in subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H1356410C50FC4AB5AD57EF82B0E4DA76"><enum>(i)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H967D96D9A465473BB2530340B1D4BEEA"><enum>(ii)</enum><text display-inline="yes-display-inline">prohibits a nationally recognized
statistical rating organization from considering credit factors that are unique
to municipal securities; or</text>
</clause><clause commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H92611B7AC7DE4FDBA68BF31CB563F254"><enum>(C)</enum><header display-inline="yes-display-inline">Complementary ratings</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H220B33EC000141E3A6B2C6782C0EAF63"><enum>(s)</enum><header display-inline="yes-display-inline">Transparency of credit rating methodologies
and information reviewed</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3EB2D5AF51DE41B7AE17446C9C62A7A9"><enum>(1)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HEC62C7D1D607403FA5B15065827F4F65"><enum>(2)</enum><header display-inline="yes-display-inline">Format</header><text display-inline="yes-display-inline">The Commission shall prescribe a form for
use under paragraph (1) that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H366C9E2959AB4C5E941FBD6DB3AB01AD"><enum>(A)</enum><text display-inline="yes-display-inline">is designed in a user-friendly and helpful
manner for investors to understand the information contained in the
report;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFBEBD1560DAC4034B34B987C488C0B3E"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H97F37929EA194FA282D714A25849EFC3"><enum>(3)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H45386CBD041845E285051A28C91143A0"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HE61CDBF61040490BB8F066DF47334ECB"><enum>(C)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0B065DE5B73449DB91386CF81B5A00C9"><enum>(D)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H00F77D60D5034ED9ACD4A68E043BD6F9"><enum>(E)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H1F6E1EA6237343BE83FF95988E32944F"><enum>(F)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H7E93581A7B764B988607B04904B8C0E4"><enum>(G)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0156E2C2A8AB4774AD11B4D170A5BAA7"><enum>(H)</enum><text display-inline="yes-display-inline">information on the content of the credit
rating, including—</text>
<clause commented="no" display-inline="no-display-inline" id="HFB767F4D1C2D4BD7AABCD5D423E7474A"><enum>(i)</enum><text display-inline="yes-display-inline">the expected default probability;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1161E4B26EF0488E99884DB923847348"><enum>(ii)</enum><text display-inline="yes-display-inline">the loss given default;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H0DC401BFBFAC4FDB83F8C2CA05970854"><enum>(J)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H7B61ACE7CBB14288963A52D6918FF786"><enum>(K)</enum><text display-inline="yes-display-inline">such additional information as may be
required by the Commission.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE5F250B7C1D4176894D4E38B51E6009"><enum>(4)</enum><header display-inline="yes-display-inline">Due diligence services</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD4E055497953498C8C6F8A1ABA1261BF"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF2DA6E1CB5B144F8A8BE27C3D9776A60"><enum>(B)</enum><header display-inline="yes-display-inline">Format and content</header><text display-inline="yes-display-inline">The Commission shall establish the
appropriate format and content for written certifications required under
subparagraph (A) to ensure that providers of due diligence services certify
that they 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" display-inline="no-display-inline" id="HECF9EDAA42A64C16A0B02736DD22D6FB"><enum>(C)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H4253B69C4FB54FDFAFF46A456FB8DB91"><enum>(t)</enum><header display-inline="yes-display-inline">Prohibited activities</header><text display-inline="yes-display-inline">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
to that issuer, underwriter, or placement agent in determining a credit rating,
including—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H072F3C5EACBE4488A99E45D3C25D52ED"><enum>(1)</enum><text display-inline="yes-display-inline">risk management advisory services;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD65D8FDEAF4848BE9C9DB482F2AC7E03"><enum>(2)</enum><text display-inline="yes-display-inline">advice or consultation relating to any
merger, sales, or disposition of assets of the issuer;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE35AC7A69E9F4741AD2811C893068CC2"><enum>(3)</enum><text display-inline="yes-display-inline">ancillary assistance, advice, or consulting
services unrelated to any specific credit rating issuance; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1571E66785434C23BD4A16CF1FE341E7"><enum>(4)</enum><text display-inline="yes-display-inline">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></subsection><subsection commented="no" display-inline="no-display-inline" id="H85D3B2419964482F93F648F54F3914F8"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 3(a)(62) of the Securities Exchange
Act of 1934 is amended by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA279FF34EAAD4A44B6CA1FE785C18064" section-type="subsequent-section"><enum>6003.</enum><header display-inline="yes-display-inline">Standards for private actions</header>
<subsection commented="no" display-inline="no-display-inline" id="H6FDDC892CD94484C8AB7017C17451762"><enum>(a)</enum><header display-inline="yes-display-inline">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 was
grossly negligent in violating the securities laws</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8DC2B12CB5B84498955AFCF0ECF43DF1"><enum>(b)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H69957BEC8F4C44A79FC70BCDE4CE57F9"><enum>(m)</enum><header display-inline="yes-display-inline">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 the securities
laws, the same pleading standards with respect to gross negligence shall apply
to the nationally recognized statistical rating organization as would apply to
any other person in the same private right of action against such
person.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2DA0AD6C0F2141F0BFB71863C61ACC59"><enum>(c)</enum><header display-inline="yes-display-inline">Requirements for liability</header><text display-inline="yes-display-inline">Section 21D of the Securities Exchange Act
of 1934 (15 U.S.C. 78u–4) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE974B12911514F13AD29DD34C909D2FE"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (c) through
(f) as subsections (d) through (g), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H167BE80F6E4A4A6DB586B61D5C93EB51"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H451CF6E00C864DFB927C0C8825122F56" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB4FF86CC6DA649B38EAF9F7598FA3A0D"><enum>(c)</enum><header display-inline="yes-display-inline">Requirements for liability</header><text display-inline="yes-display-inline">A purchaser of a security given a rating by
a nationally recognized statistical rating organization shall have the right to
recover for damages if the process of determining the credit rating was—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBDB206D3D25E483FB2D66EE8EF724DC2"><enum>(1)</enum><text display-inline="yes-display-inline">grossly negligent, based on the facts and
circumstances at the time the rating was issued; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE075DFFC31A4E7983553B980872CC65"><enum>(2)</enum><text display-inline="yes-display-inline">a substantial factor in the economic loss
suffered by the investor.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">No action shall be maintained to
enforce any liability created under this subsection unless brought within 2
years after the discovery of the facts constituting the violation and within 3
years after the initial issuance of the
rating.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">
</continuation-text></subsection></section><section commented="no" display-inline="no-display-inline" id="HB5C47D2408EA4F22BF4799A9979AD009" section-type="subsequent-section"><enum>6004.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H050A1FDF95A74F6297A27A3BA110A89F" section-type="subsequent-section"><enum>6005.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H1F77621190BC44599A6550F1A9F024C4" section-type="subsequent-section"><enum>6006.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H36287618F44641ED9B7041B7B7D9F8AF" section-type="subsequent-section"><enum>6007.</enum><header display-inline="yes-display-inline">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 CFR 243.100) to remove from such
regulation the exemption for entities whose primary business is the issuance of
credit ratings (17 CFR 243.100(b)(2)(iii)).</text>
</section><section commented="no" display-inline="no-display-inline" id="H5997055DA4CD48DEBF3D627C52D5EFB0" section-type="subsequent-section"><enum>6008.</enum><header display-inline="yes-display-inline">Advisory Board</header>
<subsection commented="no" display-inline="no-display-inline" id="H41F5CFE9C2D94C69B85D69A49B72999E"><enum>(a)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H772DC1A90543477081EBFF5D83711F97"><enum>(b)</enum><header display-inline="yes-display-inline">Appointment and terms of
service</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA3966A7151934C749949AD2761BC9DFD"><enum>(c)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The Board shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1DB6DAAADE65483E85002730D2788CEB"><enum>(1)</enum><text display-inline="yes-display-inline">advise the Commission concerning the rules
and regulations required by the amendments made by this subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H5007444185134269B1448800DE6F52DE" section-type="subsequent-section"><enum>6009.</enum><header display-inline="yes-display-inline">Removal of statutory references to credit
ratings</header>
<subsection commented="no" display-inline="no-display-inline" id="H5036331D50324AB88CB1BD3564FC6544"><enum>(a)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H330B178D961240E19A2E64136B53F45A"><enum>(1)</enum><text display-inline="yes-display-inline">in section 28(d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA38B1CE8D6FE498780C2F28C607E1A77"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA936380D0A1A4F149C3A2339ADD06A01"><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>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77D518F4EBE1494DB21F20CACB796387"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>not of
investment grade</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H20E08F2554984EC397F421CEA7327448"><enum>(D)</enum><text display-inline="yes-display-inline">by striking paragraph (3) and redesignating
paragraph (4) as paragraph (3); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5D16EB90B5C04C66B6F8927E0DFE6202"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3) (as so
redesignated)—</text>
<clause commented="no" display-inline="no-display-inline" id="H7FE2BF40146A450090A41AC3C8DD78E5"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraph (A) and
redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5CB477DF557244F2B605D60EC1E1B183"><enum>(ii)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H95B499D4063F48E7836E824F2156BA37"><enum>(2)</enum><text display-inline="yes-display-inline">in section 28(e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DBEDDEE4EC0488389E174B81BE88676"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H029A36CCB26945BBA1CA55A4E4F6219C"><enum>(C)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H5E70538D27684D189350E8F9C9294388"><enum>(3)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H107A056DDFBA4952AC03026EAC529E5E"><enum>(b)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H05174101499F4ABDA60B1F5FD8224D12"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB13AFAD0BC464F399597803C49C75088"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H85657FA889454F64816E9B7E3F9E4822"><enum>(c)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HBF1556D0EE7D4F278B08F362DC436984"><enum>(d)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HE9383C787D7F4BA0B624725D8254B5F7"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H77F6C9783BF342C6A72928760967CFB4"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HDD3B78E78EC946DFBF26D47668135DD9"><enum>(3)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC9C26B269A8D41A3B1D3BCFAD198887F"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2006EFA33778490498F4E16D3721BE15"><enum>(4)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H8DC50A3032BF449792940D35F900FB59"><enum>(e)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HD9E585056FD74A77A12729FF17A62C10"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H5323FF49B5724ECDB93AAD7B50B972FE"><enum>(f)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB352F61017C34A29BF2DEFFE854B5574"><enum>(g)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HFB928092F980433DB3C142B92B4B8EA6" section-type="subsequent-section"><enum>6010.</enum><header display-inline="yes-display-inline">Review of reliance on ratings</header>
<subsection commented="no" display-inline="no-display-inline" id="H8FB707BAAD0748E78B56FD6339DBCAC1"><enum>(a)</enum><header display-inline="yes-display-inline">Agency Review</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC7B59CD994CA4F97B932370C85BFCEB3"><enum>(1)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HEEAD43920C9343629D0DF8651C401C23"><enum>(A)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HC1B07AFF23AF4403A395D93675D4EDDE"><enum>(2)</enum><header display-inline="yes-display-inline">Modifications required</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H45092B4AECB04C008F08A45CAA84A0BC"><enum>(3)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HD3F206C41B444FA1979E5C8862BE5232"><enum>(4)</enum><header display-inline="yes-display-inline">Applicable agencies</header><text display-inline="yes-display-inline">The agencies required to conduct the review
and report required by this subsection are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E7548A438E544279DCAE4D387C77400"><enum>(A)</enum><text display-inline="yes-display-inline">the Securities and Exchange
Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBD9C73F3E383456AB731791CBFEE2209"><enum>(B)</enum><text display-inline="yes-display-inline">the Federal Deposit Insurance
Corporation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9CDA2CD3C85A4B20954230D926768A10"><enum>(C)</enum><text display-inline="yes-display-inline">the Office of Thrift Supervision;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD8892CEA6EAC49D39A43A8A252C63E5D"><enum>(D)</enum><text display-inline="yes-display-inline">the Office of the Comptroller of the
Currency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA2D39DCD1F5408B8B7370417516E0E2"><enum>(E)</enum><text display-inline="yes-display-inline">the Board of Governors of the Federal
Reserve;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H697F9BF9BDCB41CC86A002EB507C0AFF"><enum>(F)</enum><text display-inline="yes-display-inline">the National Credit Union Administration;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7F68340C503643638A4D98ED235B5B69"><enum>(G)</enum><text display-inline="yes-display-inline">the Federal Housing Finance Agency.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H932BE6F0C12F477E85F9801189EF1948"><enum>(b)</enum><header display-inline="yes-display-inline">GAO review of other agencies</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEE5E48333E724FC7AB8DB14BAF971344"><enum>(1)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HCD2047908C4642188478E84E9EBA626F"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 18 months 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" display-inline="no-display-inline" id="H739B8121FA394E6181EE724913C748D0" section-type="subsequent-section"><enum>6011.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H0C2724004A7044ABBBF33ECDBCC1ED88" section-type="subsequent-section"><enum>6012.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H5EDCC079F63B4CDFB6ED1B3D132291E5" section-type="subsequent-section"><enum>6013.</enum><header display-inline="yes-display-inline">Studies</header>
<subsection commented="no" display-inline="no-display-inline" id="HFBEA49BD0D024D92BDEB87DE2BF777F4"><enum>(a)</enum><header display-inline="yes-display-inline">GAO Study</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDC9F21B32EEA426A9C305CA44F120B8A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Comptroller General shall conduct a
study of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7581D435729347C28955F5A67E88C6F7"><enum>(A)</enum><text display-inline="yes-display-inline">the implementation of this subtitle and the
amendments made by this subtitle by the Securities and Exchange
Commission;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDC0056A6CFA244048B10C2F3BE650155"><enum>(B)</enum><text display-inline="yes-display-inline">the appropriateness of relying on ratings
for use in Federal, State, and local securities and banking regulations,
including for determining capital requirements;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H52FA0F69BA39410888EC2BBCA4F4C992"><enum>(C)</enum><text display-inline="yes-display-inline">the effect of liability in private actions
arising under the Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H09301DC2E74B4B08AA1AC3790585B819"><enum>(D)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H6B7AEE4932754F3E9553987ABB22C4DA"><enum>(E)</enum><text display-inline="yes-display-inline">alternative methodologies to assess credit
risk, including market-based measures.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA7FACE8940B24A4EBD7C6805058525BC"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="HFF7EB3BCD2E94A809A5EA36F932D12DE"><enum>(3)</enum><header display-inline="yes-display-inline">Access</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H59F9C4E4499449F0A39B2E2E008FF715"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of conducting the study
described in paragraph (1), the Comptroller General shall have access, upon
request and with the consent of the Securities and Exchange Commission, to any
information, data, schedules, books, accounts, financial records, reports,
files, electronic communications, or other papers, things, or property
belonging to or in use by each nationally recognized statistical rating
organization, and to the officers, directors, employees, independent public
accountants, financial advisors, staff and agents and representatives of the
organization (as related to the agent’s or representative’s activities on
behalf of the organization) at such reasonable times as the Comptroller General
may request. The Comptroller General may make and retain copies of books,
records, accounts, and other records as the Comptroller General deems
appropriate.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0062C86F5EEE4A7BA8D60C32659D851D"><enum>(B)</enum><header display-inline="yes-display-inline">Confidentiality</header><text display-inline="yes-display-inline">The Comptroller General may not disclose
reasonably designated proprietary, trade secret or business confidential
information obtained from the organization except that such information shall
be disclosed by the Comptroller General—</text>
<clause commented="no" display-inline="no-display-inline" id="H0C7E4B5691A746D38567DDDD11735E78"><enum>(i)</enum><text display-inline="yes-display-inline">to other Federal Government departments,
agencies, and officials for official use upon request;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5A435DFD3F404B7D8AF61342C11C846F"><enum>(ii)</enum><text display-inline="yes-display-inline">to committees of Congress upon request;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7647E9B2A622413883AE5D8704BFE7D9"><enum>(iii)</enum><text display-inline="yes-display-inline">to a court in any judicial proceeding under
court order.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">Nothing in this provision shall be
construed to limit the requirements imposed by section 1905 of title 18, United
States Code.</continuation-text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE6E25490C6AF41368C9977944E7D1CF7"><enum>(b)</enum><header display-inline="yes-display-inline">SEC Study on assigning credit rating
agencies on a rotating basis</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA469D32E4DE64F21BF63BBD102032081"><enum>(c)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H107D9E85EEDC4949A96780766CB45057"><enum>(d)</enum><header display-inline="yes-display-inline">Study of credit ratings of different
classes of bonds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6A899D30A7774E4C9BDBEAF2110A0026"><enum>(1)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H6128752BB29D47D7A98418C1BAFDC46F"><enum>(F)</enum><text display-inline="yes-display-inline">the extent to which retail investors could
be disadvantaged by a single ratings scale; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFC84186315F450BA4074708B3C330B3"><enum>(G)</enum><text display-inline="yes-display-inline">practices, policies, and methodologies by
the nationally recognized statistical rating organizations with respect to
rating municipal bonds.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE6C634FBB244B9DA563D086478EA0BC"><enum>(2)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H5749BF8F64BE4CBF8AC7627EFD83EFD5"><enum>(e)</enum><header display-inline="yes-display-inline">SEC study on Meaningful Multi-Digit Rating
Symbols</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5EA6E962E608419D9290C79E16CC236F"><enum>(1)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H4CB444C145AE4BF1AF9CCFAADC6BBED1"><enum>(2)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HC5201CD86FD24CE0A38FDB8C1E3B861B"><enum>(3)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC01CBB0470474C89AE99A1908BB94204"><enum>(f)</enum><header display-inline="yes-display-inline">SEC Study on ratings
standardization</header>
<paragraph commented="no" display-inline="no-display-inline" id="H106A274192D047E2B80CCE595CCD9BE1"><enum>(1)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H808A8BB8C13244628DD492BFA776D564"><enum>(B)</enum><text display-inline="yes-display-inline">standardizing the market stress conditions
under which ratings are evaluated;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H89FB638AE3E2416F95F7B97FA44286CA"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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 commented="no" id="HA08A79349BC5440193530B33027FF56A" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Investor Protection Act</header>
<section commented="no" display-inline="no-display-inline" id="HF4F00203C7D64F0BA5FEE65A0E7000E1" section-type="subsequent-section"><enum>7001.</enum><header display-inline="yes-display-inline">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 commented="no" id="H7291FD4DAA9745B188FE5B4C8A3E27B7" level-type="subsequent"><enum>1</enum><header display-inline="yes-display-inline">Disclosure</header>
<section commented="no" display-inline="no-display-inline" id="H14BD4E288F394F489E1F9B8E67F2B638" section-type="subsequent-section"><enum>7101.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H0F431AF91DD042D58B0C9CC9818ECE10" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HC4222BDDA44C4710AA55959FA3707935" section-type="subsequent-section"><enum>4D.</enum><header display-inline="yes-display-inline">Investor Advisory Committee</header>
<subsection commented="no" display-inline="no-display-inline" id="H001BAC4304F248B78C6EBD5F7D13A609"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA829BDC78C6948FD9D288B7002A75C33"><enum>(1)</enum><text display-inline="yes-display-inline">regulatory priorities and issues regarding
new products, trading strategies, fee structures and the effectiveness of
disclosures;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD51205BF76144DCEA935A2A2FF1274B7"><enum>(2)</enum><text display-inline="yes-display-inline">initiatives to protect investor interest;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD9A87A312907471CB7E14627B7104556"><enum>(3)</enum><text display-inline="yes-display-inline">initiatives to promote investor confidence
in the integrity of the marketplace.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA64BF9E30E174621BE25297C4BDD7115"><enum>(b)</enum><header display-inline="yes-display-inline">Membership</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9297A65EE65B45668D4E0C44F98A8F34"><enum>(1)</enum><header display-inline="yes-display-inline">Appointment</header><text display-inline="yes-display-inline">The Chairman of the Commission shall
appoint the members of the Committee, which members shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H385A75FA20D74A9AB51B90AB360EC592"><enum>(A)</enum><text display-inline="yes-display-inline">represent the interests of individual
investors;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3A09EADC3EBD4215B47EC5FB093436AB"><enum>(B)</enum><text display-inline="yes-display-inline">represent the interests of institutional
investors; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3E9AE44FB0054B6AA1622735D60C6126"><enum>(C)</enum><text display-inline="yes-display-inline">use a wide range of investment
approaches.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD2A03C6076304400B72313D571523727"><enum>(2)</enum><header display-inline="yes-display-inline">Members not commission
employees</header><text display-inline="yes-display-inline">Members shall not
be considered employees or agents of the Commission solely because of
membership on the Committee.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC7545B78D8144A95916D2AECB45163FB"><enum>(c)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0748E25588F34544B1B4B604CFA3202C"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0861207A39AC40FDA3D4405675F1F1FD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB33FCD600F074921A4DBE6E71BC43AB4"><enum>(2)</enum><text display-inline="yes-display-inline">be allowed travel expenses, including
transportation and subsistence, while away from their homes or regular places
of business.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H78A939D92E0943A1AAC23B634602A0B5"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92B668B12152444CACDF09A2123D897B"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8280A22885184F0FA043AE73901B48ED" section-type="subsequent-section"><enum>7102.</enum><header display-inline="yes-display-inline">Clarification of the Commission’s authority
to engage in consumer testing</header>
<subsection commented="no" display-inline="no-display-inline" id="HBBF9D67C5B754DF6A34626E297723D65"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to Securities Act of
1933</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H3F35A6EF1B2644269A67FC8D6672ECAD" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H84B46863FBBD49E89D22B1E12F58E759"><enum>(e)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16B8314C00DE42229B7BA041FE268B72"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HA36345E537C0418690E80C4923AE7BB3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB815BDDBC1634D9EB7B21D5224A83D86"><enum>(b)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC9801499E7A4BC988147AA8CD4E7BC8"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to Investment Company Act of
1940</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HAD622A51EDD647418BE8C97934724D19" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H431E2578866C4D46B56B26825F290058"><enum>(d)</enum><header display-inline="yes-display-inline">Gathering information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H09661EC1F5A04DCC9890E361FA993767"><enum>(d)</enum><header display-inline="yes-display-inline">Amendment to the Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H6CFC3A8AD31C4977BF28FC061C389B27" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7DF91353DC3C4CFC88481442F1589803"><enum>(f)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H62AAFAC9FB28457BAFBBADB259B799CD" section-type="subsequent-section"><enum>7103.</enum><header display-inline="yes-display-inline">Establishment of a fiduciary duty for
brokers, dealers, and investment advisers, and harmonization of
regulation</header>
<subsection commented="no" display-inline="no-display-inline" id="H5C01255A634F4B648A914F359D6FFFEA"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1B32A8CD391B4FC2BBD39C593872257F"><enum>(1)</enum><header display-inline="yes-display-inline">Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">Section 15 of the
Securities Exchange Act of 1934 (15 U.S.C. 78o) (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 commented="no" display-inline="no-display-inline" id="H1D68483EBFE6426D8E576E2BDEBAB376"><enum>(m)</enum><header display-inline="yes-display-inline">Standard of conduct</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF681F34BD3C64C7785E3023513950AD9"><enum>(1)</enum><header display-inline="yes-display-inline">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 section 211
of the Investment Advisers Act of 1940. The receipt of compensation based on
commission or other standard compensation for the sale of securities shall not,
in and of itself, be considered a violation of such standard applied to a
broker or dealer. Nothing in this section shall require a broker or dealer or
registered representative to have a continuing duty of care or loyalty to the
customer after providing personalized investment advice about
securities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0D31B81A82EA44479C7E887234E2072E"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H55D0B860583B4F72BB4F286A37F6C134"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91667E66DC5D4CB2B579EA1FEAE992F0"><enum>(A)</enum><text display-inline="yes-display-inline">receives personalized investment advice
about securities from a broker or dealer; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB07950C71A4340C3BB99F78902C5225A"><enum>(B)</enum><text display-inline="yes-display-inline">uses such advice primarily for personal,
family, or household purposes.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H64856D7591454C4CB088217C9E4266BE"><enum>(n)</enum><header display-inline="yes-display-inline">Other matters</header><text display-inline="yes-display-inline">The Commission shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6EB9F599AA3B427984277FB829C1A8FE"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H904EB24AB76D425887292E87B44ED5F0"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE637991ABB4441E5ACB30FBF3F145C8E"><enum>(2)</enum><header display-inline="yes-display-inline">Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE33C890E435B4A61A7C9799FCFC10C94"><enum>(g)</enum><header display-inline="yes-display-inline">Standard of conduct</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9D1082A065B947289EC2A0ED275FC344"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91662E6FF8D7461F8DFA368108F67F52"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H05A1F613892C4F37876A628B4B3A5526"><enum>(A)</enum><text display-inline="yes-display-inline">receives personalized investment advice
about securities from a broker, dealer, or investment adviser; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC57E40437B604085811125BBBF3DB218"><enum>(B)</enum><text display-inline="yes-display-inline">uses such advice primarily for personal,
family, or household purposes.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA4003922CA0B46079F9AB99FDF80E321"><enum>(h)</enum><header display-inline="yes-display-inline">Other matters</header><text display-inline="yes-display-inline">The Commission shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3B3C1069EF4E49B8A0EC20996CEF4D00"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0ECCA15138E441BDBE9492295246A197"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H257398DD703441A68BCDACD16EE55E2D"><enum>(b)</enum><header display-inline="yes-display-inline">Harmonization of enforcement</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA8BB2244445E40E98797C571B5B32FAC"><enum>(1)</enum><header display-inline="yes-display-inline">Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H01CB1B26E67149279D62C7EA44580463"><enum>(o)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HBDC1F2C2564447C0B8556AD9E071A280"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C17889DCB52431DA97B0E3EEA4FCC71"><enum>(i)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HA9CB4DF44E6B40709709B6FE5D7B2ACD" section-type="subsequent-section"><enum>7104.</enum><header display-inline="yes-display-inline">Commission study and rulemaking on
disclosure to retail customers before purchase of products or services</header>
<subsection commented="no" display-inline="no-display-inline" id="H95A43E9A35FD4FCDB7C648A1025EF463"><enum>(a)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">Prior to proposing
any rules or regulations pursuant to subsection (b)(1) regarding the provision
of documents or information to retail customers prior to the purchase of
investment 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBCAFCC3C4FEE46D3A34994479F0C3D15"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA48DFDF61BEA4C0BA771AB433C687AD8"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB5B977C4A39F4CED92BDA27EB8CBE2B3"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9883B33F22374CC08D4FBF91B445664A"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H33BC140BF94B45F4A10D54AB77BB00BD"><enum>(b)</enum><header display-inline="yes-display-inline">Rulemaking</header>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD68871D232244A06A0E642DBB3C9DAF7"><enum>(A)</enum><text display-inline="yes-display-inline">take into account the findings of the study
conducted pursuant to subsection (a);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HCEC4A7FA088F4078B1283CD9AFF254CC"><enum>(2)</enum><text display-inline="yes-display-inline">Notwithstanding paragraph (1), the
Commission is authorized to promulgate rules in connection with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBAC86ED4A30244E3981A975A5896E174"><enum>(A)</enum><text display-inline="yes-display-inline">the implementation of section 7103;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5E158C5CE37649AD8CBBBC12D5B567F7"><enum>(B)</enum><text display-inline="yes-display-inline">disclosure to retail customers other than
rules that require the provision of documents or information to retail
customers prior to the purchase of investment products or services.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7AA78A6C3B0247718D0CA4B6C610B708" section-type="subsequent-section"><enum>7105.</enum><header display-inline="yes-display-inline">Beneficial ownership and short-swing profit
reporting</header>
<subsection commented="no" display-inline="no-display-inline" id="H22973D75A8FC43D986DAD6872BC0B83B"><enum>(a)</enum><header display-inline="yes-display-inline">Beneficial ownership
reporting</header><text display-inline="yes-display-inline">Section 13 of the
Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HABB1ED9334074FF0B0EA6F198FBDBB3C"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H27411468676C4A6B9B3C689EA12EA1C8"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting after <quote>within ten days
after such acquisition</quote> the following: <quote>or within such shorter
time as the Commission may establish by rule</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3795D02C6B8D457CA6E6BF68263555FD"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>send to the issuer of
the security at its principal executive office, by registered or certified
mail, send to each exchange where the security is traded, and</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C6F049B46D249E4B48DEC9703875F2A"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDCA1CE6689FD4FBDA9BAD69091409C2B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>in the statements to the
issuer and the exchange, and</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H25ADA23F67B94B78AF17131FAD38E871"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>shall be transmitted to
the issuer and the exchange and</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF6BAF3E5A324521A93F3D90B2A55E56"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (g)(1), by striking
<quote>shall send to the issuer of the security and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1076FA0D9319478D86E55D8EEBC73CF4"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (g)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE11356315D5A4743AED75AD4F3AA2558"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>sent to the issuer
and</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62782C8C521243A59A41C860FB40F693"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>shall be transmitted to
the issuer and</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H324246CE2D16445ABB6ED620D9ABD1BE"><enum>(b)</enum><header display-inline="yes-display-inline">Short-swing profit reporting</header><text display-inline="yes-display-inline">Section 16(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78p(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1B617EBEF4EF458C821041BB8D203D13"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>(and,
if such security is registered on a national securities exchange, also with the
exchange)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H935E22F9BC984799B86598879E07D943" section-type="subsequent-section"><enum>7106.</enum><header display-inline="yes-display-inline">Revision to recordkeeping rules</header>
<subsection commented="no" display-inline="no-display-inline" id="HB87A956C8E7F4FC0ACE817928965A247"><enum>(a)</enum><header display-inline="yes-display-inline">Investment Company Act of 1940
amendments</header><text display-inline="yes-display-inline">Section 31 of the
Investment Company Act of 1940 (15 U.S.C. 80a–30) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A0AF222D37C4226909005157D8E3EC9"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF05CCEF20B24411B80EEEB8863BCC86"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81A033105F3243B0B6596949EC3F04CA"><enum>(4)</enum><header display-inline="yes-display-inline">Records of persons with custody or
use</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC5AFF20A47274C64AD698816A24CB605"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H836953FB5AE548E0B611AF9685B7E353"><enum>(B)</enum><header display-inline="yes-display-inline">Certain persons subject to other
regulation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6B3F34DC65A047BC8B193B45B7CAC569"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8E91046463CF4375A5599D2C58D74A63"><enum>(d)</enum><header display-inline="yes-display-inline">Records of persons with custody or
use</header>
<paragraph commented="no" display-inline="no-display-inline" id="H39E88DEFAE6F49969BB2D76FCCA210A9"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCA7D99CB78FF4FF99AA108DB5590645C"><enum>(2)</enum><header display-inline="yes-display-inline">Certain persons subject to other
regulation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H027C44333CE04571BA599028C081716D" section-type="subsequent-section"><enum>7107.</enum><header display-inline="yes-display-inline">Study on enhancing investment adviser
examinations</header>
<subsection commented="no" display-inline="no-display-inline" id="H9BCA70EB3AC24187ADA91CB49CF156F5"><enum>(a)</enum><header display-inline="yes-display-inline">Study required</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0B40801C8E9F4D6FBB5180983607A2DA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall review and analyze the
need for enhanced examination and enforcement resources for investment
advisers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75601C2620F145E4ADA737521CB291AA"><enum>(2)</enum><header display-inline="yes-display-inline">Areas of consideration</header><text display-inline="yes-display-inline">The study required by this subsection shall
examine—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB829F3D3BA334280B1B768AFDEFC6F3B"><enum>(A)</enum><text display-inline="yes-display-inline">the number and frequency of examinations of
investment advisers by the Commission over the 5 years preceding the date of
the enactment of this subtitle;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E4F587A162B46BF875669299C65F7E1"><enum>(B)</enum><text display-inline="yes-display-inline">the extent to which having Congress
authorize the Commission to designate one or more self-regulatory organizations
to augment the Commission’s efforts in overseeing investment advisers would
improve the frequency of examinations of investment advisers; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H65DC5E70603A45D7A7B567870EBA15BB"><enum>(C)</enum><text display-inline="yes-display-inline">current and potential approaches to
examining the investment advisory activities of dually registered
broker-dealers and investment advisers or affiliated broker-dealers and
investment advisers.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1B36092127D64A05AC2292C3EA476D5C"><enum>(b)</enum><header display-inline="yes-display-inline">Report required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H332D904779CB42B891A3BE0CCD724E0C" section-type="subsequent-section"><enum>7108.</enum><header display-inline="yes-display-inline">GAO study of financial planning</header>
<subsection commented="no" display-inline="no-display-inline" id="H98E04FDEEDBF44B49D9BE0A752AE9884"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2B9BC48B69EA4604A3DE364BDBC0E127"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H377FAA7C009648A7AADA64734616CEF0"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7CD1F4165DDE4C46B059D147C8695A26"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" id="H19E7C5B188DD4758B1CFDC197CA3F780" level-type="subsequent"><enum>2</enum><header display-inline="yes-display-inline">Enforcement and Remedies</header>
<section commented="no" display-inline="no-display-inline" id="H9E5ECD0B3C7E4AD38D62F2AB66DA4BDE" section-type="subsequent-section"><enum>7201.</enum><header display-inline="yes-display-inline">Authority to restrict mandatory pre-dispute
arbitration</header>
<subsection commented="no" display-inline="no-display-inline" id="H278AC07F39AB45579BB74167EBFCC23B"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">Section 15 of the
Securities Exchange Act of 1934 (15 U.S.C. 78o), as amended by section 7103, is
further amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD6F85DAC7AAD4983AF5E46B13E308243" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1C3888E2BB8442DEA150E94B08D2295E"><enum>(p)</enum><header display-inline="yes-display-inline">Authority to restrict mandatory pre-dispute
arbitration</header><text display-inline="yes-display-inline">The Commission,
by rule, may prohibit, or impose conditions or limitations on the use of,
agreements that require customers or clients of any broker, dealer, or
municipal securities dealer to arbitrate any future dispute between them
arising under the Federal securities laws, the rules and regulations
thereunder, or the rules of a self-regulatory organization if it finds that
such prohibition, imposition of conditions, or limitations are in the public
interest and for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9F4EFE6580E64422ABEC1E995B2CA0DB"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H48B8231A8196447FBEB027222459B380" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFF4F8DE2CCC5407A82761F903033E135"><enum>(f)</enum><header display-inline="yes-display-inline">Authority to restrict mandatory pre-dispute
arbitration</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2AD829988B5A450EA66721D6FC5A548E" section-type="subsequent-section"><enum>7202.</enum><header display-inline="yes-display-inline">Comptroller General study to review
securities arbitration system</header>
<subsection commented="no" display-inline="no-display-inline" id="HEE09C49B93A442CB80647F56CEF21D48"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study to review—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H8F6A63B045F74D78BF95833A072D1C57"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6DCF1CBB880D46778B983686A44F8BBF" section-type="subsequent-section"><enum>7203.</enum><header display-inline="yes-display-inline">Whistleblower protection</header>
<subsection commented="no" display-inline="no-display-inline" id="HFF647013BEAD447BA77168B5A3007EF4"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H219C6B731FB54477A8C79D09CC806CB7" section-type="subsequent-section"><enum>21F.</enum><header display-inline="yes-display-inline">Securities whistleblower incentives and
protection</header>
<subsection commented="no" display-inline="no-display-inline" id="HA5FAC1FEB08341D090DD77854C3410EF"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5338B897501E4983B13B94FE35849425"><enum>(b)</enum><header display-inline="yes-display-inline">Determination of amount of award; denial of
award</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB1FC50FE0E304E4D80E7EEF282DF1F84"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0352DBD2EE64DC2A634CD3E8E39AE60"><enum>(2)</enum><header display-inline="yes-display-inline">Denial of award</header><text display-inline="yes-display-inline">No award under subsection (a) shall be
made—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2E502935329E43648CCE561E261A153E"><enum>(A)</enum><text display-inline="yes-display-inline">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, law
enforcement agency, or a self-regulatory organization;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3D3A9F36B14F49B386CF6957DF1D57A4"><enum>(B)</enum><text display-inline="yes-display-inline">to any whistleblower who is convicted of a
criminal violation related to the judicial or administrative action for which
the whistleblower otherwise could receive an award under this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFCB298AAE47F46AC846087C902CDC78E"><enum>(C)</enum><text display-inline="yes-display-inline">to any whistleblower who gains the
information through the performance of an audit of financial statements
required under the securities laws; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7AE6110B1CDB4D5AB0445D5D9C28BC5F"><enum>(D)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H33A40DB30DCD4AFDA7EF8BE01457B7B3"><enum>(c)</enum><header display-inline="yes-display-inline">Representation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9B03033BBC534887904914CDBDC417B8"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35C4EF6300744F68A3F9C217A33175E6"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H084AB99A7CA141F898AB23981EF0C1B4"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8F39BC3DC7A244E69362DD123BB42DC8"><enum>(e)</enum><header display-inline="yes-display-inline">Appeals</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF0CC3923F23B4A0B8FA163561FEB961D"><enum>(f)</enum><header display-inline="yes-display-inline">Investor protection fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD366B6663BFA405BB4B8E03AD076AE35"><enum>(1)</enum><header display-inline="yes-display-inline">Fund established</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9AD500AC9B594FFC98D5EC8993393282"><enum>(2)</enum><header display-inline="yes-display-inline">Use of fund</header><text display-inline="yes-display-inline">The Fund shall be available to the
Commission, without further appropriation or fiscal year limitation, for the
following purposes:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H57A7641CBE9A47638E4D878B2F6A7849"><enum>(A)</enum><text display-inline="yes-display-inline">Paying awards to whistleblowers as provided
in subsection (a).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H156F847FC3264C2EBEE19FE2BD306E99"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1ED7E92CFA74431EAAA20FA4C579C25D"><enum>(3)</enum><header display-inline="yes-display-inline">Deposits and credits</header><text display-inline="yes-display-inline">There shall be deposited into or credited
to the Fund—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2449CB1871D94D5ABB8000EDC17F750B"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H340713EF464840998633A7A3E2A89B41"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H13216818440A41C8B169FA2D61A23630"><enum>(C)</enum><text display-inline="yes-display-inline">all income from investments made under
paragraph (4).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E7B5B91876B43F5BB896AB09CA81E2A"><enum>(4)</enum><header display-inline="yes-display-inline">Investments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA46E91BC80948A390E368CE106EADA1"><enum>(A)</enum><header display-inline="yes-display-inline">Amounts in fund may be
invested</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAFA4063846C74EABB7E53F040738E4C0"><enum>(B)</enum><header display-inline="yes-display-inline">Eligible investments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H177C780D6521420F8C5264CCCD022C02"><enum>(C)</enum><header display-inline="yes-display-inline">Interest and proceeds
credited</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36E5821112084925991E2914AFD16012"><enum>(5)</enum><header display-inline="yes-display-inline">Reports to Congress</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4B64157598FD44D696FEE3E640DDDB52"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50E1D8718AF34D2B96EC4F0E12F0A9EB"><enum>(B)</enum><text display-inline="yes-display-inline">investor education initiatives described in
paragraph (2)(B) that were funded by the Fund during the preceding fiscal
year;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF5A2055D906B4DF4AE44D97736C5E60F"><enum>(C)</enum><text display-inline="yes-display-inline">the balance of the Fund at the beginning of
the preceding fiscal year;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEC79EBA272DD412BA5CA259BDF52A574"><enum>(D)</enum><text display-inline="yes-display-inline">the amounts deposited into or credited to
the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H27B409F89D734677A0DA0FC9742253AB"><enum>(E)</enum><text display-inline="yes-display-inline">the amount of earnings on investments of
amounts in the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H10E1079F4A48451183C8D5AD0D29E899"><enum>(F)</enum><text display-inline="yes-display-inline">the amount paid from the Fund during the
preceding fiscal year to whistleblowers pursuant to subsection (a);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0A8E0083A2324F6993086BC4B9131393"><enum>(G)</enum><text display-inline="yes-display-inline">the amount paid from the Fund during the
preceding fiscal year for investor education initiatives described in paragraph
(1)(B);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81B14AA38097407AAA24DC25650EC6F3"><enum>(H)</enum><text display-inline="yes-display-inline">the balance of the Fund at the end of the
preceding fiscal year; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H66D87634E37B4527BF6125DAF7E39160"><enum>(I)</enum><text display-inline="yes-display-inline">a complete set of audited financial
statements, including a balance sheet, income statement, and cash flow
analysis.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBD9DE8400AD0480B9F589C3D45C0EE72"><enum>(g)</enum><header display-inline="yes-display-inline">Protection of whistleblowers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCC2E13E3434C4F93AE5779DB8F2BC08F"><enum>(1)</enum><header display-inline="yes-display-inline">Prohibition against retaliation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB995014E510840C19F088FF49FF8AA3F"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEFEA9FFE92B41BDAB1A2A581AE807D4"><enum>(B)</enum><header display-inline="yes-display-inline">Enforcement</header>
<clause commented="no" display-inline="no-display-inline" id="HF06D152835474B7AB5946EE2BCF5DDD2"><enum>(i)</enum><header display-inline="yes-display-inline">Cause of action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H756771DC0F04484B88D381E5CFBA4775"><enum>(ii)</enum><header display-inline="yes-display-inline">Subpoenas</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3DD787765A6E4471ACC62DEF2A7F35EF"><enum>(iii)</enum><header display-inline="yes-display-inline">Statute of limitations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H86ED9FEFF0C64257AAC69F885ACF9EA8"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD6A788D5F2914C4394597C38A477FDED"><enum>(2)</enum><header display-inline="yes-display-inline">Confidentiality</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF93AE01EB5A54EC996E9CFBE4521D7F5"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
Commission and any officer or employee of the Commission shall not disclose any
information, including information provided by a whistleblower to the
Commission, which could reasonably be expected to reveal the identity of a
whistleblower, except in accordance with the provisions of section 552a of
title 5, United States Code, unless and until required to be disclosed to a
defendant or respondent in connection with a public proceeding instituted by
the Commission or any entity described in subparagraph (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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H240E8B3C6C8942888B6EE953FF2FAEC4"><enum>(B)</enum><header display-inline="yes-display-inline">Availability to government
agencies</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBE7574DF72D2454491EB4E673760CBD7"><enum>(i)</enum><text display-inline="yes-display-inline">the Attorney General of the United
States,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H455FF0B378A140DAA0CF8BC782BCF685"><enum>(ii)</enum><text display-inline="yes-display-inline">an appropriate regulatory authority,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H68856FEE17824714A16769CF8DC4B815"><enum>(iii)</enum><text display-inline="yes-display-inline">a self-regulatory organization,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H847B87C4662240E7B8716128E1659507"><enum>(iv)</enum><text display-inline="yes-display-inline">State attorneys general in connection with
any criminal investigation, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCD5F4986905B4D3199CAA2A36BAF19EC"><enum>(v)</enum><text display-inline="yes-display-inline">any appropriate State regulatory
authority,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">each of which shall not disclose
such information in accordance with subparagraph (A).</continuation-text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC4015D89365F4C6AB7B93A53DA6EDC6B"><enum>(h)</enum><header display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA6890F94AF734E5992F8149C4173A2FD"><enum>(i)</enum><header display-inline="yes-display-inline">Rulemaking authority</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3F624F4918544E4F9FB9DECBC7398B55"><enum>(j)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
terms have the following meanings:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A8763241AB84B09905C9A5BEE3DA8E9"><enum>(1)</enum><header display-inline="yes-display-inline">Original information</header><text display-inline="yes-display-inline">The term <quote>original
information</quote> means information that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F802D1C83E54C54B732155A7616FE86"><enum>(A)</enum><text display-inline="yes-display-inline">is based on the direct and independent
knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB9DA076CE2034933AB7E1512B4981E09"><enum>(B)</enum><text display-inline="yes-display-inline">is not known to the Commission from any
other source, unless the whistleblower is the initial source of the
information; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE51B730E7FD42058964454D24446773"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H53B38187F3AB482EA8391220EF848DBD"><enum>(2)</enum><header display-inline="yes-display-inline">Monetary sanctions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HED2A40A2829E404AB5143F8BABBF92D8"><enum>(3)</enum><header display-inline="yes-display-inline">Related
action</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H94EC286DAF0447DF9486E56364C02647"><enum>(4)</enum><header display-inline="yes-display-inline">Whistleblower</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF13BBD29239475BAB8498E998151E6E"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA19D83A4D8514556BA5BBB1ABDFCA484" section-type="subsequent-section"><enum>7204.</enum><header display-inline="yes-display-inline">Conforming amendments for whistleblower
protection</header>
<subsection commented="no" display-inline="no-display-inline" id="HAD768150B5B6412CA088CF209352A0E5"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H57C4F4BAB4A047729E3711768AD2BF03"><enum>(1)</enum><text display-inline="yes-display-inline">Section 20(d)(3)(A) of the Securities Act
of 1933 (15 U.S.C. 77t(d)(3)(A)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H434F5F8D51554603AE10909A3782A0E5"><enum>(b)</enum><header display-inline="yes-display-inline">Securities Exchange Act</header><text display-inline="yes-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="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 commented="no" display-inline="no-display-inline" id="H36E52D96CAA841979AFCDFAD60EEE38C"><enum>(2)</enum><text display-inline="yes-display-inline">in section 21A(d)(1) (15 U.S.C.
78u–1(d)(1))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6CA242C0B7F24D6A87EF508AB7F66D00"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(subject to subsection
(e))</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7EFE6B9307940C38A3C6EB2D383F200"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>and section 21F of this
title</quote> after <quote>the Sarbanes-Oxley Act of 2002</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF7A7974060564D36804FC54AF307BA7E"><enum>(3)</enum><text display-inline="yes-display-inline">in section 21A, by striking subsection (e)
and redesignating subsections (f) and (g) as subsections (e) and (f),
respectively.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HAF123AC3E9664E939D663463FA1482E5" section-type="subsequent-section"><enum>7205.</enum><header display-inline="yes-display-inline">Implementation and transition provisions
for whistleblower protections</header>
<subsection commented="no" display-inline="no-display-inline" id="H845A60E1A9F442E7A1786C16B346A283"><enum>(a)</enum><header display-inline="yes-display-inline">Implementing rules</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9DBA9323C9EE40C9B4A585652D0EFF99"><enum>(b)</enum><header display-inline="yes-display-inline">Original information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H468F444FDD5B414694914235C8AB5B9D"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H48F3BB5FBB494FCD8E7C532AA6DB8AF7" section-type="subsequent-section"><enum>7206.</enum><header display-inline="yes-display-inline">Collateral bars</header>
<subsection commented="no" display-inline="no-display-inline" id="H7BBF856D236343FEADBA3D6A63B3B981"><enum>(a)</enum><header display-inline="yes-display-inline">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, municipal financial adviser, or
nationally recognized statistical rating organization,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H17995FB662F0476DB96819532C214131"><enum>(b)</enum><header display-inline="yes-display-inline">Section 15B of the Securities Exchange Act
of 1934</header><text display-inline="yes-display-inline">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, municipal financial
adviser, or nationally recognized statistical rating
organization,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD47F22AA72844451ACCF46250B528531"><enum>(c)</enum><header display-inline="yes-display-inline">Section 17A of the Securities Exchange Act
of 1934</header><text display-inline="yes-display-inline">Section 17A(c)(4)(C)
of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1(c)(4)(C)) is amended by
striking <quote>twelve months or bar any such person from being associated with
the transfer agent, </quote> and inserting <quote>12 months or bar any such
person from being associated with any transfer agent, broker, dealer,
investment adviser, municipal securities dealer, municipal financial adviser,
or nationally recognized statistical rating organization,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD3C32BDAAA1D4CC7AD69094F8547BDB2"><enum>(d)</enum><header display-inline="yes-display-inline">Section 203 of the Investment Advisers Act
of 1940</header><text display-inline="yes-display-inline">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, municipal financial adviser, or
nationally recognized statistical rating organization,</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE11678D89995445B908EE3D660A6CA67" section-type="subsequent-section"><enum>7207.</enum><header display-inline="yes-display-inline">Aiding and abetting authority under the
Securities Act and the Investment Company Act</header>
<subsection commented="no" display-inline="no-display-inline" id="H20BD8A267F234D47BC46381F51409E16"><enum>(a)</enum><header display-inline="yes-display-inline">Under the securities act of
1933</header><text display-inline="yes-display-inline">Section 15 of the
Securities Act of 1933 (15 U.S.C. 77o) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H25BE86B480D94159A0781A88945CEF09"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Every person who</quote>
and inserting <quote>(a) <header-in-text level="subsection" style="OLC">Controlling persons</header-in-text>.—Every person who</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0267D93D3EEB4824910FD5DD433D5E40"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9EF168B11A44456792829FAD047A7AD2" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD9F61F0F7B9948E9B25C725F5B010555"><enum>(b)</enum><header display-inline="yes-display-inline">Prosecution of persons who aid and abet
violations</header><text display-inline="yes-display-inline">For purposes of
any action brought by the Commission under subparagraph (b) or (d) of section
20, any person that knowingly or recklessly provides substantial assistance to
another person in violation of a provision of this Act, or of any rule or
regulation issued under this Act, shall be deemed to be in violation of such
provision to the same extent as the person to whom such assistance is
provided.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEEF9D6D57465442BB037372D47082EA3"><enum>(b)</enum><header display-inline="yes-display-inline">Under the Investment Company Act of
1940</header><text display-inline="yes-display-inline">Section 48 of the
Investment Company Act of 1940 (15 U.S.C. 80a–48) is amended by redesignating
subsection (b) as subsection (c) and inserting after subsection (a) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H13406DD83D2B47B28A884AB7C71B1946" style="traditional">
<subsection commented="no" display-inline="no-display-inline" id="H61BC0B2F8F084E2288EC3F2FE8DCF56A"><enum>(b)</enum><text display-inline="yes-display-inline">For purposes of any action brought by the
Commission under subsection (d) or (e) of section 42, any person that knowingly
or recklessly provides substantial assistance to another person in violation of
a provision of this Act, or of any rule or regulation issued under this Act,
shall be deemed to be in violation of such provision to the same extent as the
person to whom such assistance is
provided.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFFA4F8F78937414A991BFC13257817A0" section-type="subsequent-section"><enum>7208.</enum><header display-inline="yes-display-inline">Authority to impose penalties for aiding
and abetting violations of the Investment Advisers Act</header><text display-inline="no-display-inline">Section 209 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–9) is amended by inserting at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF071475E8EEB4CC28B94401979F8FBDA" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H94DDEDB5A852444FA869718C74D8C183"><enum>(f)</enum><header display-inline="yes-display-inline">Aiding and abetting</header><text display-inline="yes-display-inline">For purposes of any action brought by the
Commission under subsection (e), any person that knowingly or recklessly has
aided, abetted, counseled, commanded, induced, or procured a violation of any
provision of this Act, or of any rule, regulation, or order hereunder, shall be
deemed to be in violation of such provision, rule, regulation, or order to the
same extent as the person that committed such
violation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H59418BE40F0C4261A20E5982F41FA6C0" section-type="subsequent-section"><enum>7209.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0105621279F54C1CB2130883804CBD8F" section-type="subsequent-section"><enum>4E.</enum><header display-inline="yes-display-inline">Deadline for completing enforcement
investigations and compliance examinations and inspections</header>
<subsection commented="no" display-inline="no-display-inline" id="H5C443A2DF94540EBA39D3463268A2ED7"><enum>(a)</enum><header display-inline="yes-display-inline">Enforcement investigations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H98F47DCCC4B341E6A9DF844ABDCB1E8A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date on
which Commission staff provide a written Wells notification to any person, the
Commission staff shall either file an action against such person or provide
notice to the Director of the Division of Enforcement of its intent to not file
an action.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4A065AE8FFF14F53BB1751E1706B4995"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions for certain complex
actions</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (1), if the Director of the Division of Enforcement of the Commission
or the Director’s designee determines that a particular enforcement
investigation is sufficiently complex such that a determination regarding the
filing of an action against a person cannot be completed within the deadline
specified in paragraph (1), the Director of the Division of Enforcement of the
Commission or the Director’s designee may, after providing notice to the
Chairman of the Commission, extend such deadline as needed for one additional
180-day period. If after the additional 180-day period the Director of the
Division of Enforcement of the Commission or the Director’s designee determines
that a particular enforcement investigation is sufficiently complex such that a
determination regarding the filing of an action against a person cannot be
completed within the additional 180-day period, the Director of the Division of
Enforcement of the Commission or the Director’s designee may, after providing
notice to and receiving approval of the Commission, extend such deadline as
needed for one or more additional successive 180-day periods.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2C7D66E46D724900BD26F121F879B99D"><enum>(b)</enum><header display-inline="yes-display-inline">Compliance examinations and
inspections</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFE5F772BC1D84980BA4FFAD2157A1F22"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date on
which Commission staff completes the on-site portion of its compliance
examination or inspection or receives all records requested from the entity
being examined or inspected, whichever is later, Commission staff shall provide
the entity being examined or inspected with written notification indicating
either that the examination or inspection has concluded, has concluded without
findings, or that the staff requests the entity undertake corrective
action.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF6613AA7995547B293BFEA5BBF9BAB0F"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for certain complex
actions</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (1), if the head of any division or office within the Commission
responsible for compliance examinations and inspections or his designee
determines that a particular compliance examination or inspection is
sufficiently complex such that a determination regarding concluding the
examination or inspection, or regarding the staff requests the entity undertake
corrective action, cannot be completed within the deadline specified in
paragraph (1), the head of any division or office within the Commission
responsible for compliance examinations and inspections or his designee may,
after providing notice to the Chairman of the Commission, extend such deadline
as needed for one additional 180-day
period.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H9518DE2FC319478188E7450CB9D36862" section-type="subsequent-section"><enum>7210.</enum><header display-inline="yes-display-inline">Nationwide service of subpoenas</header>
<subsection commented="no" display-inline="no-display-inline" id="HFE8A2B35FDD54FB29D9EBEB069439C79"><enum>(a)</enum><header display-inline="yes-display-inline">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 civil action 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 any hearing or trial may be served at any place
within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil
Procedure does not apply to a subpoena so issued.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H04717E36FF874A17AD0F361A292DBA49"><enum>(b)</enum><header display-inline="yes-display-inline">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 civil action 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 any hearing or trial
may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of
the Federal Rules of Civil Procedure does not apply to a subpoena so
issued.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA3443985A1CC4757A86830B4D3EB7CC8"><enum>(c)</enum><header display-inline="yes-display-inline">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 civil action 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 any hearing or trial
may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of
the Federal Rules of Civil Procedure does not apply to a subpoena so
issued.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD106B2BBD03843ADBF8C68C391D42B5B"><enum>(d)</enum><header display-inline="yes-display-inline">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 civil action 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 any hearing or
trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii)
of the Federal Rules of Civil Procedure does not apply to a subpoena so
issued.</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H45D2030E94C64716B6D0BB889EB04DE8" section-type="subsequent-section"><enum>7211.</enum><header display-inline="yes-display-inline">Authority to impose civil penalties in
cease and desist proceedings</header>
<subsection commented="no" display-inline="no-display-inline" id="H5211CA734F0547A0A243F6E91DC2998B"><enum>(a)</enum><header display-inline="yes-display-inline">Under the Securities Act of
1933</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HAB63F741A4204ECE8817CB7E4324F7B8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC60C314CC68C4FFF8871D14753042885"><enum>(g)</enum><header display-inline="yes-display-inline">Authority to impose monetary
penalties</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD2B585AEC9054915885159DFAB5C042D"><enum>(1)</enum><header display-inline="yes-display-inline">Grounds for imposing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9884F83670D949D4927DD4080B0088DF"><enum>(A)</enum><text display-inline="yes-display-inline">such person—</text>
<clause commented="no" display-inline="no-display-inline" id="H2C465C6D511E4CFFAC6FC9FFA1E7004C"><enum>(i)</enum><text display-inline="yes-display-inline">is violating or has violated any provision
of this title, or any rule or regulation thereunder; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC78C4CA25C4D4050834491388874166B"><enum>(ii)</enum><text display-inline="yes-display-inline">is or was a cause of the violation of any
provision of this title, or any rule or regulation thereunder; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA42C736942E547EDA7F11A9A410FA460"><enum>(B)</enum><text display-inline="yes-display-inline">such penalty is in the public
interest.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE426361AE2E42C5ABA32BDDD2755F30"><enum>(2)</enum><header display-inline="yes-display-inline">Maximum amount of penalty</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7402A85C569C4FDC82737D2B9D8FD724"><enum>(A)</enum><header display-inline="yes-display-inline">First tier</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC1B4402FD9D34F71B13426BAB779649B"><enum>(B)</enum><header display-inline="yes-display-inline">Second tier</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H223E14D443AB456E8C0C4B8648C95044"><enum>(C)</enum><header display-inline="yes-display-inline">Third tier</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC82CD06B5FEB41B5B4F82AD1E524230F"><enum>(i)</enum><text display-inline="yes-display-inline">the act or omission described in paragraph
(1) involved fraud, deceit, manipulation, or deliberate or reckless disregard
of a regulatory requirement; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDD168D68E1944C689D14DBF847933DA5"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H36C6BABDBBCD47E6AB7AF9B0150180EE"><enum>(3)</enum><header display-inline="yes-display-inline">Evidence concerning ability to
pay</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4283D9A8CED34D6B963745F247265C74"><enum>(b)</enum><header display-inline="yes-display-inline">Under the Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">Subsection (a) of
section 21B of the Securities Exchange Act of 1934 (15 U.S.C. 78u–2(a)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H79C4261BE2B3497B86A1844F27C0DD35"><enum>(1)</enum><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H421EC9F1DE4C45F4B76FEC002C08A2C8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H5BAE7335E1AA4418AEA69DBE7675FF8F"><enum>(a)</enum><header display-inline="yes-display-inline">Commission authority to assess monetary
penalties</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDE662E482F6D42A1B88417B43C2ED7D1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In any
proceeding</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4803BA864B1449A8858581A8C81A101D"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAC1EA8F0AC4D4ACBA2C2FF1D32A7CACB"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end of such subsection the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2DE5C3E2D2BD4AF89C267FF03C8BE36D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE5F46A42C5A4482F9C3070406458D350"><enum>(2)</enum><header display-inline="yes-display-inline">Cease-and-desist proceedings</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H09781673BD694673A6B32EE71F9C713A"><enum>(A)</enum><text display-inline="yes-display-inline">is violating or has violated any provision
of this title, or any rule or regulation thereunder; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA6B6AA30AEB4193A44D644A84032BDB"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4797D51CCA2741CFA590F293F4BDBF59"><enum>(c)</enum><header display-inline="yes-display-inline">Under the Investment Company Act of
1940</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3899756A31964394B15C7B8C8B36169E"><enum>(1)</enum><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H1A4BA7AB61C241A0AC35C0175BCA08A2" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H45EE6951EF9843B1BBA895D4BE60C227"><enum>(1)</enum><header display-inline="yes-display-inline">Authority of commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H89E64A1FC6E04641A7AC40D8DC9D33E3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In any
proceeding</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4DBFD460735F40E69EACA5A2966A66F3"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E01988DF792414BB49B433DF8EC95FB"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end of such paragraph the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HCD377BCA425D44389FC33ED06EAE60DE" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H866E8D9E26254301A2BD230CCB19375A"><enum>(B)</enum><header display-inline="yes-display-inline">Cease-and-desist proceedings</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E94505F0D1E4E0191D42B1FD4FB6654"><enum>(i)</enum><text display-inline="yes-display-inline">is violating or has violated any provision
of this title, or any rule or regulation thereunder; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBE2EC0E9E0604AAAA712CA4EA6EBCBD5"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB55F348D0974ED2B5ADDF6F3C8BEDF6"><enum>(d)</enum><header display-inline="yes-display-inline">Under the Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA7F658C05BE443119AD83814C8726A6C"><enum>(1)</enum><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H2558F63FAD1D427DA96F5A064CDDDCAC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H47A3BC1C0DC848778141ED5AADA16939"><enum>(1)</enum><header display-inline="yes-display-inline">Authority of commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3BF59E40B5C849D9A426D93262FC72DB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In any
proceeding</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H46E62A7581D8403F8E8DEA0DA9696F33"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H97856327FE0642C1BDD8D657F136E082"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end of such paragraph the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H67893AE3E258448EB4C9F126ED1731AF" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HDDECB6DDA03648FF95A2F8303AD795E4"><enum>(B)</enum><header display-inline="yes-display-inline">Cease-and-desist proceedings</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3BA51EAAECFB47388ABA9FC85A80BA85"><enum>(i)</enum><text display-inline="yes-display-inline">is violating or has violated any provision
of this title, or any rule or regulation thereunder; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6F3C366997374C4F861B98436F4539B2"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H97E34DB45CFB4AD388A64A765E8678E7" section-type="subsequent-section"><enum>7212.</enum><header display-inline="yes-display-inline">Formerly associated persons</header>
<subsection commented="no" display-inline="no-display-inline" id="H8575B5A2EB9E433695D375A483C1EDFD"><enum>(a)</enum><header display-inline="yes-display-inline">Member or employee of the municipal
securities rulemaking board</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H77CCD95099AA40D8A277AB6833AB4383"><enum>(b)</enum><header display-inline="yes-display-inline">Person associated with a government
securities broker or dealer</header><text display-inline="yes-display-inline">Section 15C of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–5) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H406298164F0849C7BDBD638C113E5671"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3CA85EAA6AEC473FAEB2CBB10319CC6C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC648D96FCD264605B372BD229B6F597B"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91C044BDEEAD4707A5E938864DA99E8C"><enum>(c)</enum><header display-inline="yes-display-inline">Person associated with a member of a
national securities exchange or registered securities association</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 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 commented="no" display-inline="no-display-inline" id="HCE0B33447DB846689F3EE3CAF9356534"><enum>(d)</enum><header display-inline="yes-display-inline">Participant of a registered clearing
agency</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
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 commented="no" display-inline="no-display-inline" id="H97040679DA904E318E88E6CC9F9B6B77"><enum>(e)</enum><header display-inline="yes-display-inline">Officer or director of a self-regulatory
organization</header><text display-inline="yes-display-inline">Section 19(h)(4)
of the Securities Exchange Act of 1934 (15 U.S.C. 78s(h)(4)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H170BB9F24B7E47CFA6D3DBCBC14AA99F"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8DE41C9CC9F3462281F6AAC18AFB496B"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>such officer or
director</quote> and inserting <quote>such person</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBEBC4D09C611453EB9E57B8198A37DD9"><enum>(f)</enum><header display-inline="yes-display-inline">Officer or director of an investment
company</header><text display-inline="yes-display-inline">Section 36(a) of the
Investment Company Act of 1940 (15 U.S.C. 80a–35(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H258CFEA33D3E460888CE5CB51044A0BC"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDBFD371DB3C042FEA5B106C5DA6C1571"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H29C174D65BFE4D338E640AE1EB086551"><enum>(g)</enum><header display-inline="yes-display-inline">Person associated with a public accounting
firm</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2DEC8D8CC6274B7AAC35C0DCE25F4CEA"><enum>(1)</enum><header display-inline="yes-display-inline">Sarbanes-Oxley Act of 2002
amendment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBAC2CD0BCE67400E935FD20F89C20D2A"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC382DEFB9E174500B0203CF6E8373005"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H074C2BC4E91E49E4AC8653C081850D4E"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C9221D7BA614E9FA35ABFC8C6A31893"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H518C4B248F1E4CE281D58F0C396D0CF7"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H73E907AE57984225AF49F476D64D8E09"><enum>(h)</enum><header display-inline="yes-display-inline">Supervisory personnel of an audit
firm</header><text display-inline="yes-display-inline">Section 105(c)(6) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(6)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H557529CD82764464A62BB795B407AC10"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD5D194A3D4C34712A8262F9288C58C7E"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H68C4C78F0BFA4076A1B3F5C1BEC21CCC"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>No associated
person</quote> and inserting <quote>No current or former supervisory
person</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5DFAE56A1B8D4C448FDE2C19C9144F5F"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>any other person</quote>
and inserting <quote>any associated person</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H65EE5B033612487CB39C5D74810B2444"><enum>(i)</enum><header display-inline="yes-display-inline">Member of the Public Company Accounting
Oversight Board</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0FBBC51D2E4F42928EDABB49261BD836" section-type="subsequent-section"><enum>7213.</enum><header display-inline="yes-display-inline">Sharing privileged information with other
authorities</header><text display-inline="no-display-inline">Section 24 of the
Securities Exchange Act of 1934 (15 U.S.C. 78x) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA353866EFAD74BB783CD0366582222A6"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subsection (c) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1E71837FBE274CEB95D2F8F2F55D9722" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7ED0F8653CEE4B27BAEBBC12643D24B1"><enum>(d)</enum><header display-inline="yes-display-inline">Sharing privileged information with other
authorities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H084F6233AAA7442FA94192EBA8A4C258"><enum>(1)</enum><header display-inline="yes-display-inline">Privileged information provided by the
commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B1A9187746C46BCB823EA31BD007587"><enum>(A)</enum><text display-inline="yes-display-inline">any agency (as defined in section 6 of
title 18, United States Code);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2688597FF5E04F27AA2E6B91A2B02A3C"><enum>(B)</enum><text display-inline="yes-display-inline">any foreign securities authority;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAD5D3404CCFA48EBA0D102EE7F939137"><enum>(C)</enum><text display-inline="yes-display-inline">the Public Company Accounting Oversight
Board;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H84351CFE6F744B7C817BC2FBDA014F8F"><enum>(D)</enum><text display-inline="yes-display-inline">any self-regulatory organization;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H862410C69DBD4CC0ABBD4779708AFE6A"><enum>(E)</enum><text display-inline="yes-display-inline">any foreign law enforcement authority;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H668C620B704B40E9949F4473BFC27050"><enum>(F)</enum><text display-inline="yes-display-inline">any State securities or law enforcement
authority.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H973579C4B9AC4E3D9338A7E33A8E7C4B"><enum>(2)</enum><header display-inline="yes-display-inline">Non-disclosure of privileged information
provided to the commission</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF48B3D81D4F84F268AD8C54DA1177913"><enum>(3)</enum><header display-inline="yes-display-inline">Non-waiver of privileged information
provided to the commission</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5BF36EF19C74016BD352E026CA3FA4D"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC111182984854502BCC981CBFFA000B7"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCCB46B73405343FAA795C54E1276DDA3"><enum>(4)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3ED2DDDC64AE4B7ABC6D6BA278C4823A"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6546414C0524443B893EF0DAE8CEA25B"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA154AD112EA44D9FA5E12FD6FCBA7BCF"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H445F063D807E4A5CBFC2A17550AC046A" section-type="subsequent-section"><enum>7214.</enum><header display-inline="yes-display-inline">Expanded access to grand jury
information</header><text display-inline="no-display-inline">Subsection (b) of
section 3322 of title 18, United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H255D43E6F6AD4C6AAF7E4B895272E6FE"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>matters occurring before a grand jury</quote> and inserting <quote>grand
jury information obtained</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEA14FD1AA2E849A284E5AD8DE1B406EA"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (2) as paragraph
(3);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H566AB3603CE8406F9603CAC6798FD941"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3) (as so redesignated), by
inserting <quote>or (2)</quote> after <quote>(1)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD9D9F15F2624538806138B8277943E9"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1), the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB6C5673C33CC4983807236740D5BB7C2" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF16AA34A45E24D0A8A4F9C69504AC86C"><enum>(2)</enum><text display-inline="yes-display-inline">Upon motion of an attorney for the
government, a court may direct disclosure of grand jury information obtained
during an investigation of a securities law violation to identified personnel
of the Securities and Exchange Commission—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5AA217C00B2744708A440145CF8AAB93"><enum>(A)</enum><text display-inline="yes-display-inline">for use in relation to any matter within
the jurisdiction of the Commission; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68B61082884E48CF8E3A91F5301EE5A3"><enum>(B)</enum><text display-inline="yes-display-inline">to assist an attorney for the government to
whom matters have been disclosed under subsection
(a).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HD2955FB13639426B8F12EE5291F80471" section-type="subsequent-section"><enum>7215.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0DAB1B836D24425C987701A749D128D1" section-type="subsequent-section"><enum>7216.</enum><header display-inline="yes-display-inline">Extraterritorial jurisdiction of the
antifraud provisions of the Federal securities laws</header>
<subsection commented="no" display-inline="no-display-inline" id="H33357A6C68CF4D9DB314739EF99B7C32"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5CD12338AEB14E8D9851BCF7E428DE8E"><enum>(c)</enum><header display-inline="yes-display-inline">Extraterritorial jurisdiction</header><text display-inline="yes-display-inline">With respect to any actions or proceedings
brought or instituted by the Commission or the United States, this jurisdiction
includes violations of section 17(a) of this title, and all suits in equity and
actions at law under that section, involving—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3FFFDD35788E4F6AACA3A399077AA5AB"><enum>(1)</enum><text display-inline="yes-display-inline">conduct within the United States that
constitutes significant steps in furtherance of the violation, even if the
securities transaction occurs outside the United States and involves only
foreign investors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DFB1E86A0D94F0888F4E0E767351ED5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE385AE111B7B44588A26B068FE80CD5D"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H518DCC88BD474A4C9153C196BD3A25D1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The district</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5F1E8A78B3C446249CF7E58614A10D74" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE309451F92954E90B702D22373F32F74"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The
district</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H744095C2CB3A4019B9DAFF024B1191CF"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H87C8A328EBD5436882E24504ADD4073B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H305B457BAC434369948D46819F79FF92"><enum>(b)</enum><header display-inline="yes-display-inline">Extraterritorial jurisdiction</header><text display-inline="yes-display-inline">With respect to any actions or proceedings
brought or instituted by the Commission or the United States, this jurisdiction
includes violations of the antifraud provisions of this title, and all suits in
equity and actions at law under those provisions, involving—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1B1D1898A58049219B6AF3EB1A65153B"><enum>(1)</enum><text display-inline="yes-display-inline">conduct within the United States that
constitutes significant steps in furtherance of the violation, even if the
securities transaction occurs outside the United States and involves only
foreign investors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9783AF82CEE14843B9C6C2D05D5338BD"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93D957D19AB64599AEAD691734A728C7"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H70FC8263CFFC4937964AD1366A92067D"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The district</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE4C6C51AA711417F9C7775B7E8D507E1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H769FF2F1772E4B399A89381CF352AB62"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The
district</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01A95D62083B446AA257671056CA7A5A"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6DE77532437D41BE99394D2E3A030514" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H20DD6A5D81924CAF9B4EAE0C5C575E49"><enum>(b)</enum><header display-inline="yes-display-inline">Extraterritorial jurisdiction</header><text display-inline="yes-display-inline">With respect to any actions or proceedings
brought or instituted by the Commission or the United States, this jurisdiction
includes violations of section 206, and all suits in equity and actions at law
under that section, involving—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1FC86FCA892441DC8BDB6B0D15D4F02E"><enum>(1)</enum><text display-inline="yes-display-inline">conduct within the United States that
constitutes significant steps in furtherance of the violation, even if the
violation is committed by a foreign adviser and involves only foreign
investors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEA41E434D19B4C8896B3AAD74BFC5AA5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDF81CB088FC542D780AFD99F694C3E9F" section-type="subsequent-section"><enum>7217.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA97893FC6C3349E99CD2F7F5CEBC34E9"><enum>(g)</enum><header display-inline="yes-display-inline">Fidelity bonding</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB5A0EED1A71447D4945609925D0B5FCF"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H11CFA49790C246D7BDE713AB38E2E17D"><enum>(2)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8A978C0138DD4058AF8A44885B0A5E1F"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEDEADF60F524303B133DBFBBF80E21C"><enum>(B)</enum><header display-inline="yes-display-inline">Officer or employee</header><text display-inline="yes-display-inline">The term <term>officer or employee</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="HC455C45A05C743C1AADEB62354617A25"><enum>(i)</enum><text display-inline="yes-display-inline">any officer or employee of the management
company; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HDB2BDC4835034A338702390E8E68F657"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF98491175A1147E8809FC1813FC0152A" section-type="subsequent-section"><enum>7218.</enum><header display-inline="yes-display-inline">Enhanced SEC authority to conduct
surveillance and risk assessment</header>
<subsection commented="no" display-inline="no-display-inline" id="HDAD93049273A4D1B95E4A62291A6643A"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE53B973948044D968D4BA1960F833CC4"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H21B62C8352B44D7A892ACE273E0B3286"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H35DE6E28D99649F59457985DE2C00E77"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE88032DC93D34379A8DABBCF9C1FE2D2"><enum>(c)</enum><header display-inline="yes-display-inline">Investment Advisers Act of 1940
amendments</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H62B078566DA5493CB2A4A7D969A9413F"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H40E8AA22656446B98CDB2F54187607D2" section-type="subsequent-section"><enum>7219.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE944D6FD99464F3AA5767416194735F8"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H990ADACA504C4E1E991142DBE4B7C387" section-type="subsequent-section"><enum>7220.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H84C0C3FE972B47A4B27F0C1AA444F64C" section-type="subsequent-section"><enum>7221.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H34ECCD6A1EE941C3A198CCB8FD6623FD"><enum>(1)</enum><text display-inline="yes-display-inline">in section 9—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC1910BCCF4B44E06870C75FC91EDFCA2"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB4B9CC92F0A142F5BF80F89C089995E9"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>by
use of any facility of a national securities exchange,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H645A93AE4DDD4D979056FD8283CD070E"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (c), by inserting after
<quote>unlawful for any</quote> the following: <quote>broker, dealer,
or</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBCC3AD1C39AE48C8BD95BCA98EB49C9C"><enum>(3)</enum><text display-inline="yes-display-inline">in section 15(c)(1)(A), by striking
<quote>otherwise than on a national securities exchange of which it is a
member</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HD914993D997C4D689354E2D7B9331BDD" section-type="subsequent-section"><enum>7222.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D991B7676FC4E08B45D1FF17D0AF891"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)</quote> after
<quote>(a)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H44E5D5A8FD69471F816C0D9A70F9A57F"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H299818AD5AAE4B66A759E3F0D7CB3313" style="traditional">
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" id="HAEB48D3F922E45E68CEE0884C653C3E2" level-type="subsequent"><enum>3</enum><header display-inline="yes-display-inline">Commission funding and
organization</header>
<section commented="no" display-inline="no-display-inline" id="H397F02C711BF4564B6D424138C4C7190" section-type="subsequent-section"><enum>7301.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF6B6E35C61B94A308FF4A0FEE582A50D" section-type="subsequent-section"><enum>35.</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HD46D71C0A5654DC6A2ED1232C7B83D5B"><enum>(1)</enum><text display-inline="yes-display-inline">for fiscal year 2010,
$1,115,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H08D9E7BD55284D7AAB28E9B53B45253A"><enum>(2)</enum><text display-inline="yes-display-inline">for fiscal year 2011,
$1,300,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDAB02E2A6E1649E8A7C52DD19E26467A"><enum>(3)</enum><text display-inline="yes-display-inline">for fiscal year 2012,
$1,500,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0A5F11D242D4C32BB1BB15D6F7FCCE3"><enum>(4)</enum><text display-inline="yes-display-inline">for fiscal year 2013,
$1,750,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E1E3103036146DDBC983EAAFCB58745"><enum>(5)</enum><text display-inline="yes-display-inline">for fiscal year 2014, $2,000,000,000;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3739DCE12CC243B5AF56D2C017FB0162"><enum>(6)</enum><text display-inline="yes-display-inline">for fiscal year 2015,
$2,250,000,000.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H54300DCB53494DEFA60C4F7D107707DB" section-type="subsequent-section"><enum>7302.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28D682241CB14866BD16CC2059575975"><enum>(o)</enum><header display-inline="yes-display-inline">Annual assessment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3DD80DBB60D34E7986B0754B0EA580FC"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C392915601F4F96B9875A3767DD5366"><enum>(2)</enum><header display-inline="yes-display-inline">Fee payment required</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H013F351491FF46129CF6BFB06BF965C3"><enum>(A)</enum><text display-inline="yes-display-inline">the investment adviser’s size;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACAAEAEC16DC439088F3B14F9A6ED3E5"><enum>(B)</enum><text display-inline="yes-display-inline">the number of clients of the investment
adviser;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H73FCCD0B38C44109BF121395A00D73DF"><enum>(C)</enum><text display-inline="yes-display-inline">the types of clients of the investment
adviser; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H86B5C67EE4204EE18F8C90D1FE6AE969"><enum>(D)</enum><text display-inline="yes-display-inline">such other relevant factors as the
Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H435905AC9A34406BA3546EBB3C476A1A"><enum>(3)</enum><header display-inline="yes-display-inline">Amount and use of fees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA8C403E6D5548658B14CE275C36467E"><enum>(A)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HDF1FE9BD053F4DFFB7E98849428932AB"><enum>(B)</enum><header display-inline="yes-display-inline">Excess fees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5734B103A2B243B988952AE964D2141B"><enum>(4)</enum><header display-inline="yes-display-inline">Review and adjustment of fees</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H283F349556ED45D5B7E24456271C9144"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB25961AA8BA34B31B85B52410B285D0B"><enum>(6)</enum><header display-inline="yes-display-inline">Judicial review</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66A230ED50314C8A8AD2B3EA8632766C" section-type="subsequent-section"><enum>7303.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4687FF9210854A14923E51119AD1AC2A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (e)(2), by striking
<quote>September 30</quote> and inserting <quote>September 25</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA82A041E9190439C8B42AFD4E0FE25CC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>April
30</quote> and inserting <quote>August 31</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H40D29AC10CB14AEB8AEE3C36F99D3925"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (j)(2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8B636FAFA69D483D804E8C85D56EFF4E"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>5 months</quote> and
inserting <quote>4 months</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE4D4D80FF48D4FCA80CD0A54FC6646B9"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H47F38FEEA9464A3EB886A771C3967D6A" section-type="subsequent-section"><enum>7304.</enum><header display-inline="yes-display-inline">Commission organizational study and
reform</header>
<subsection commented="no" display-inline="no-display-inline" id="HDE9FB97596BD43DDA21A6CA07B840C87"><enum>(a)</enum><header display-inline="yes-display-inline">Study required</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB1CC5C3BDBC44282AEE9C8174DBACE56"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than the end of the 90-day period
beginning on the date of the enactment of this subtitle, the Securities and
Exchange Commission (hereinafter in this section referred to as the
<quote>SEC</quote>) shall hire an independent consultant of high caliber and
with expertise in organizational restructuring and the operations of capital
markets to examine the internal operations, structure, funding, and the need
for comprehensive reform of the SEC, as well as the SEC’s relationship with and
the reliance on self-regulatory organizations and other entities relevant to
the regulation of securities and the protection of securities investors that
are under the SEC’s oversight.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE6E0582530648848A554BB907EDC8FD"><enum>(2)</enum><header display-inline="yes-display-inline">Specific areas for study</header><text display-inline="yes-display-inline">The study required under paragraph (1)
shall, at a minimum, include the study of—</text>
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HD2C29B2448404163A09C0A19A600200B"><enum>(B)</enum><text display-inline="yes-display-inline">improving communications between SEC
offices and divisions;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HFF0FC9290E3E479994CFEE972E6B1076"><enum>(E)</enum><text display-inline="yes-display-inline">the SEC’s hiring authorities, workplace
policies, and personal practices, including—</text>
<clause commented="no" display-inline="no-display-inline" id="H2812B062F2C54CD38F679D8C97F01543"><enum>(i)</enum><text display-inline="yes-display-inline">whether there is a need to further
streamline hiring authorities for those who are not lawyers, accountants,
compliance examiners, or economists;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1C05756F6956431B8D3CAAAFCEFF44EE"><enum>(ii)</enum><text display-inline="yes-display-inline">whether there is a need for further pay
reforms;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H6FDD599A0F2047D4BD9A5037BC781C84"><enum>(iv)</enum><text display-inline="yes-display-inline">the application of civil service laws by
the SEC;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H10271A38620949388AEB3E9F02373BCB"><enum>(F)</enum><text display-inline="yes-display-inline">whether the SEC’s oversight and reliance on
self-regulatory organizations promotes efficient and effective governance for
the securities markets; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HAEEF1646BFF14326A7C407DD6F823F63"><enum>(b)</enum><header display-inline="yes-display-inline">Consultant report</header><text display-inline="yes-display-inline">Not later than the end of the 150-day
period after being retained, the independent consultant hired pursuant to
subsection (a)(1) shall issue a report to the SEC and the Congress
containing—</text>
<paragraph commented="no" display-inline="no-display-inline" 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);
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5120CF7CCF3047C9BCA6331E2E01202C"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBB2025CC06B9439192FC88DDCCE5746B"><enum>(c)</enum><header display-inline="yes-display-inline">SEC report</header><text display-inline="yes-display-inline">Not later than the end of the 6-month
period beginning on the date the consultant issues the report under subsection
(b), and every 6-months thereafter during the 2-year period following the date
on which the consultant issues such report, the SEC shall issue a report to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate describing the
SEC’s implementation of the regulatory and administrative recommendations
contained in the consultant’s report.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFA5F2EE9A15846A19A19B50453F6978D" section-type="subsequent-section"><enum>7305.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE82AFB7CEBBD4A69BC0DBE90A39DD4BF" section-type="subsequent-section"><enum>7306.</enum><header display-inline="yes-display-inline">Report on implementation of
<quote>post-Madoff reforms</quote></header>
<subsection commented="no" display-inline="no-display-inline" id="HAD5B2A6D255D4DE68667FE170950E711"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H711ED581F8854E9DA8E28BAED0DE72B5"><enum>(b)</enum><header display-inline="yes-display-inline">Contents of report</header><text display-inline="yes-display-inline">The report required by subsection (a) shall
include an analysis of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC3ACC30EB50B49FFBEA887680A25D6D4"><enum>(1)</enum><text display-inline="yes-display-inline">how many of the post-Madoff reforms have
been implemented and to what extent; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA18126EAB87C43B692B6F7E573646089"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAC0FAA55FA324DA09858C4DC09E1680A"><enum>(c)</enum><header display-inline="yes-display-inline">Publication of report</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9626E95ECBEA4BB1ADD4D84320ABACE1" section-type="subsequent-section"><enum>7307.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6951D056494344B8B3D6C19F9DF3E01F"><enum>(1)</enum><text display-inline="yes-display-inline">considering and developing solutions to
emerging and ongoing issues of common interest in the futures and securities
markets;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0998438B7284B5292ACA5199A5289BB"><enum>(2)</enum><text display-inline="yes-display-inline">identifying emerging regulatory risks and
assess and quantify their implications for investors and other market
participants, and provide recommendations for solutions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5DFFB670EB4C4A1A80E93DF6695D760E"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H54699C731DAD4F56ACB92126A04723E2"><enum>(4)</enum><text display-inline="yes-display-inline">reporting regularly to each Commission and
to Congress on its activities.</text>
</paragraph></section></part><part commented="no" id="H27267C7E5E1243598AF866E5ABCEC5A8" level-type="subsequent"><enum>4</enum><header display-inline="yes-display-inline">Additional Commission reforms</header>
<section commented="no" display-inline="no-display-inline" id="H3BF76CD7049648168528A332AD9CD297" section-type="subsequent-section"><enum>7401.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H507B8B8FC9F54A51837847C98F72EEA5"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HEB17B0E9317E4FD8AAD3E312E83CDB3E"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC15BEFA99DD24D639292E9F6DD410BD0" section-type="subsequent-section"><enum>7402.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF7AAE1DD32B143D0B6F878E8B5FC9557"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H178A476736B14960A80E9B176C9E5086" section-type="subsequent-section"><enum>7403.</enum><header display-inline="yes-display-inline">Fingerprinting</header><text display-inline="no-display-inline">Section 17(f)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78q(f)(2)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H424DE62B23A6441BB38EE6A75FC48DB3"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and registered clearing
agency,</quote> and inserting <quote>registered clearing agency, registered
securities information processor, national securities exchange, and national
securities association</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H54BCAE1CFD064C29B920B6BFB7DEFE98"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or clearing
agency,</quote> and inserting <quote>clearing agency, securities information
processor, national securities exchange, or national securities
association,</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H98FDC85CE5234E698E55B46DEF949185" section-type="subsequent-section"><enum>7404.</enum><header display-inline="yes-display-inline">Equal treatment of self-regulatory
organization rules</header><text display-inline="no-display-inline">Section
29(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78cc(a)) is amended by
striking <quote>an exchange required thereby</quote> and inserting <quote>a
self-regulatory organization,</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H9E34091C58C14589B84FE05E69B2E736" section-type="subsequent-section"><enum>7405.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H036CB9E550304524AFA8CC2DD9944F97"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1F39B303FA7343988A266C6D00C60486"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H055B0E0A7E454A7EA553C01E1D1A816A"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>to</quote> after
<quote>in any way</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H8F04E070BE3742C09D02BF968C500D5A" section-type="subsequent-section"><enum>7406.</enum><header display-inline="yes-display-inline">Conforming amendments for the repeal of the
Public Utility Holding Company Act of 1935</header>
<subsection commented="no" display-inline="no-display-inline" id="H6DDE4D29D104415CACD3A048C80D64BB"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H204FE61F263D49F8B881D5C92081E81A"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H03A88EDAB9E549F49C31BF1E18E4E27B"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H615B925FB0DA408FBAF44A1F708C3971"><enum>(7)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>emergency</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC2E52A9B550C4E64A62EA449F945C9D4"><enum>(A)</enum><text display-inline="yes-display-inline">a major market disturbance characterized by
or constituting—</text>
<clause commented="no" display-inline="no-display-inline" id="H5380DB6381D349CC89B646F766760AE1"><enum>(i)</enum><text display-inline="yes-display-inline">sudden and excessive fluctuations of
securities prices generally, or a substantial threat thereof, that threaten
fair and orderly markets; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9035BA5AFEE1434C87761D0EFEA7B580"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE056818CF09847B8A25BED98795FB028"><enum>(B)</enum><text display-inline="yes-display-inline">a major disturbance that substantially
disrupts, or threatens to substantially disrupt—</text>
<clause commented="no" display-inline="no-display-inline" id="H09421BB1D4F64ECDABCD09E1EE3F9E44"><enum>(i)</enum><text display-inline="yes-display-inline">the functioning of securities markets,
investment companies, or any other significant portion or segment of the
securities markets; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8FDDD20E08FD4E2894899DD5AC300950"><enum>(ii)</enum><text display-inline="yes-display-inline">the transmission or processing of
securities
transactions.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7758A23E2CED4948B07574255422A693"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A9C25C91B4C42DEA78A0F6DB452DA4C"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1CF606A7A61E400CA27402DD93780626"><enum>(17)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H2F20ADF59F6E478F99392C18BEDB4BFF"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HB1A43619F02243A3A182CE19AD7F3ADE"><enum>(8)</enum><text display-inline="yes-display-inline">[Repealed]</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC4399B778D3D498DA51FDB3D1E66879F"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5004C8ADF6CD424CB409B16768F793CC" section-type="subsequent-section"><enum>7407.</enum><header display-inline="yes-display-inline">Promoting transparency in financial
reporting</header>
<subsection commented="no" display-inline="no-display-inline" id="H0EAB35BBDBFD46969DF7A58DE70EF76A"><enum>(a)</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB4ECEA92CD4942AAB4118E3DA100C167"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H762815B5575D46CC90A2035925347A2D"><enum>(2)</enum><text display-inline="yes-display-inline">The increasing detail and volume of
accounting, auditing, and reporting guidance pose a major challenge.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA93CF79EF3842CE8BAF27589D69712C"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE3F35C2B8D44118B93CE2DCBF2A328C"><enum>(b)</enum><header display-inline="yes-display-inline">Testimony required on reducing complexity
in financial reporting</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC9024ED9FE3C428A90E6C7E502241EC0"><enum>(1)</enum><text display-inline="yes-display-inline">reassessing complex and outdated accounting
standards;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0DB72462D27E438C8D5120914BDA5B3B"><enum>(2)</enum><text display-inline="yes-display-inline">improving the understandability,
consistency, and overall usability of the existing accounting and auditing
literature;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2EF291BD24442E59B63850AA5CCABB4"><enum>(3)</enum><text display-inline="yes-display-inline">developing principles-based accounting
standards;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H78B75047FFCE4801A9D7CF50864506B4"><enum>(4)</enum><text display-inline="yes-display-inline">encouraging the use and acceptance of
interactive data; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9FEFB2865DCA4944A590B48E3F04300A"><enum>(5)</enum><text display-inline="yes-display-inline">promoting disclosures in <quote>plain
English</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H34F5F74628A74EB6B1BC38E17DCE120A" section-type="subsequent-section"><enum>7408.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7BCEC2D19AF04C7883E89E1EF7C9156A" section-type="subsequent-section"><enum>7409.</enum><header display-inline="yes-display-inline">Protecting confidentiality of materials
submitted to the Commission</header>
<subsection commented="no" display-inline="no-display-inline" id="H8CD6C0E3449045F2ACF4403AA00E8DD3"><enum>(a)</enum><header display-inline="yes-display-inline">Securities Exchange Act of
1934</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H6FE726CE3E93419A9C5F952D9015D1E3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1E9132EDDCF04007BC21E6E86114F7AE"><enum>(i)</enum><header display-inline="yes-display-inline">Authority To limit disclosure of
information</header>
<paragraph commented="no" display-inline="no-display-inline" id="H22E0D334D6FA46F79D6247BD35AF920C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE51C157328C74EABAFF3F33D4D7CFE5C"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H680A0E037F33480C908AC6F9563EE139"><enum>(3)</enum><header display-inline="yes-display-inline">Treatment under section 552 of title 5,
United States Code</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6BDB4B4A7EB743ABAB56C4F3D0E1717D"><enum>(4)</enum><header display-inline="yes-display-inline">Certain information to be
confidential</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA5C4145E871B4A988F4814D01AA8EF1D"><enum>(b)</enum><header display-inline="yes-display-inline">Investment Company Act of
1940</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 sections
7106(a)(2) and 7218(b)(4), is further amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HDEBD353F62CA4FADB553D10B0F5936C8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE74D2EBCDB7C428EB60B1E327FE7253F"><enum>(6)</enum><header display-inline="yes-display-inline">Confidentiality</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H158F63B1FF20469CB8E6159B372EB778"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H317F586233874D6185D4F776D069A3E8"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H542BD347D58A4145A61CBC9B41C5CF63"><enum>(C)</enum><header display-inline="yes-display-inline">Treatment under section 552 of title 5,
United States Code</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC5F28408BA45417C8031749FBFAA43EF"><enum>(c)</enum><header display-inline="yes-display-inline">Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HC956225CDBE245F7BB0503458F10FF00" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3F6B8376B55E4DD49D34085F70843C85"><enum>(f)</enum><header display-inline="yes-display-inline">Confidentiality</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCBFFD0D50C8C4F75890006616970A7D0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H50103BC6D32343BF907763E3E0ED4531"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H952E506B3B46482380D8F71A9E1982DF"><enum>(3)</enum><header display-inline="yes-display-inline">Treatment under section 552 of title 5,
United States Code</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H79739D74984C44E5AE3EFCCAEA44BC0C" section-type="subsequent-section"><enum>7410.</enum><header display-inline="yes-display-inline">Technical corrections</header>
<subsection commented="no" display-inline="no-display-inline" id="HC2AE5D9F1B074BD6A5E038EEEBC8507D"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAEF9CA68B1774E4FA7378EF8894C50BD"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H252C6C524C3B49A7A60EAC32E97F844A"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9BE8A7790D3845E8B6EC4CEAA2349943"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1A7BC9C343BD46F88B10E6D9BC4EC9C1"><enum>(A)</enum><text display-inline="yes-display-inline">by striking the sentence beginning
<quote>The order granting</quote> and ending <quote>from such
membership.</quote> in subparagraph (B); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H341652C3D2204DD99B296FE6BE420D12"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting such sentence in the matter
following such subparagraph after <quote>are satisfied.</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HCF99345B30B946058E25DC151C39FE46"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEFD64B64F9054809BE7D617F46000575"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6063754925634F00B93524DCCFEA1EA4"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting such sentence in the matter
following such redesignated subparagraph after <quote>are
satisfied.</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H5C50DD93049842D7920C7AEF99DCF9BD"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HFA10593449F04461A645B6F87FD255E0"><enum>(d)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H1A555BE1CB8A447FB67ACC1B40B45A66"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>paragraph (1) of section
205</quote> and inserting <quote>section 205(a)(1)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H000C271AEF6B411EA4352AED2B79B21F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F122406989F453E9A7DF2C4BBD28593"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H66951BD6BA1F4EE7B82A3C41D640995C" section-type="subsequent-section"><enum>7411.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HC0B5E75D2110451FB9D8B9161C62744C"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4467DD280A1943AC954BCDE5017B72D9"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H88A1003DCCBC411F80C1637A98F0725D"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEBDB75CD0DD54746A70A5CFFB5839498"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92061088ED954A4AA6D53E743779E635"><enum>(2)</enum><text display-inline="yes-display-inline">by amending paragraph (2)(B) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H39444551894A4504B106E617E76DAE3E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HDBD360C84A9C4A0C99BDC183F83AB01B"><enum>(i)</enum><text display-inline="yes-display-inline">shall establish requirements regarding the
independence of public representatives;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H20D80847D651446CBC6CD04712B09195"><enum>(ii)</enum><text display-inline="yes-display-inline">shall provide that the number of public
representatives of the Board shall at all times exceed the total number of
broker-dealer representatives and bank representatives;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H5F9FBF3F72F74E4A87EB2CFED71A0D2F"><enum>(iv)</enum><text display-inline="yes-display-inline">shall specify the term members shall serve;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAD679146E05F4F088024A273466F0ADB"><enum>(v)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD8084283FD464F2B95E4C1153BAC9D8C" section-type="subsequent-section"><enum>7412.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE0259CE21A5442B0908F33A1BB2C696E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking clauses (v) and (vi);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8DCB0E4C00244568853FE6EA8761AE63"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after clause (iv) the
following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HD0F676224A6849369859EAC6E9DC9A6A" style="OLC">
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0055920E702F4FAFAA56991C7510686D"><enum>(I)</enum><text display-inline="yes-display-inline">a material business or professional
relationship with such company or any affiliated person of such company;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6C2D113A07724BEA8614A47AEBB54750"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBDD350A689864FAC849CEF038A4614DE"><enum>(3)</enum><text display-inline="yes-display-inline">by redesignating clause (vii) as clause
(vi); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H81E8149AA68A4F40B662747E1965A482"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H058A83BB0E7F4E2EA1804D8F563C46D3" section-type="subsequent-section"><enum>7413.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F0A6B3AFA74406FB36AE54B29D636DE" section-type="subsequent-section"><enum>7414.</enum><header display-inline="yes-display-inline">Study on SEC revolving door</header>
<subsection commented="no" display-inline="no-display-inline" id="HF675FBFADD2B43D89FF5950ED03C2CA0"><enum>(a)</enum><header display-inline="yes-display-inline">Government Accountability Office
study</header><text display-inline="yes-display-inline">The Comptroller General
of the United States shall conduct a study that will—</text>
<paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H424FE69AD453403FA3688CA3FDE2B494"><enum>(2)</enum><text display-inline="yes-display-inline">determine how many employees who leave the
Securities and Exchange Commission worked on cases that involved financial
institutions regulated by such Commission;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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
assisted such institutions in circumventing Federal rules and regulations while
employed by such Commission;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H141B8B8DA49F415F8AFB632EB4B4D1F8"><enum>(9)</enum><text display-inline="yes-display-inline">review other additional issues as may be
raised during the course of the study conducted under this subsection.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H37E4BF195E7247CD91ED9F246EA11F05"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16EA43F092AD4136B6C11448F4648BCB" section-type="subsequent-section"><enum>7415.</enum><header display-inline="yes-display-inline">Study on internal control evaluation and
reporting cost burdens on smaller issuers</header>
<subsection commented="no" display-inline="no-display-inline" id="HA48D40E9CF024218898595B3FDA0D161"><enum>(a)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">The Government
Accountability Office shall 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 commented="no" display-inline="no-display-inline" id="H0339F9DC63914319B38C8D1AAEFA68F3"><enum>(1)</enum><text display-inline="yes-display-inline">include recommendations, administrative
reforms, and legislative proposals on implementation steps that could be taken
to reduce compliance burdens on these issuers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2019748E740A47819AD1A3B7F538D9CE"><enum>(2)</enum><text display-inline="yes-display-inline">determine the efficacy of the Securities
and Exchange Commission’s measures to limit the cost of compliance on smaller
issuers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H37CDE4A835C04CA6A91A115FBD17759F"><enum>(3)</enum><text display-inline="yes-display-inline">determine how to reduce the burden of
complying with section 404(b) of the Sarbanes-Oxley Act of 2002 for companies
whose market capitalization is less than $250,000,000 for the relevant
reporting period while maintaining investor protections for such companies;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H985F4DDD34E44430B0F14BD432E4C285"><enum>(4)</enum><text display-inline="yes-display-inline">determine whether various methods of
reducing the compliance burden or a complete exemption for such companies
(whose market capitalization is less than $250,000,000 for the relevant
reporting period) from such compliance would encourage companies to list on
exchanges in the United States in their initial public offerings.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA70BB12FD27048C19491BB414C54497F"><enum>(b)</enum><header display-inline="yes-display-inline">Reports required</header><text display-inline="yes-display-inline">Not later than 9 months after the date of
the enactment of this subtitle, the Government Accountability Office shall
submit a report 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 commented="no" display-inline="no-display-inline" id="HB29D91433DBF45EA817FF8AB800732B5"><enum>(c)</enum><header display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HC08FD27A582547D79D1E59021E26B5AF" section-type="subsequent-section"><enum>7416.</enum><header display-inline="yes-display-inline">Analysis of rule regarding smaller
reporting companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H46D6D4D90A95485C9920BE1C7CA99B3B"><enum>(a)</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3998C459E0384CDFAB6FF3677763E16A"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H138027E5C916400E8DD9F19C59C8AAB1"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H7AA8B26F22B444808993E40E0163D7E0"><enum>(3)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H37D6D04A46A4473384238A1A092B720A"><enum>(b)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16A8228B30834A6E8E09698A7C5944A4" section-type="subsequent-section"><enum>7417.</enum><header display-inline="yes-display-inline">Financial Reporting Forum</header>
<subsection commented="no" display-inline="no-display-inline" id="H5E631E093D9F464EAC5F88219C201FEB"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H6DF3C2F524F0452BAE0D89DDE9285291"><enum>(2)</enum><text display-inline="yes-display-inline">the head of the Financial Accounting
Standards Board;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56C7D8B577CD40968BB1FC2087942B72"><enum>(3)</enum><text display-inline="yes-display-inline">the Chairman of the Public Company
Accounting Oversight Board;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HE2269EA885BA48C9B571FEE77E12A757"><enum>(5)</enum><text display-inline="yes-display-inline">the Administrator of the National Credit
Union Administration;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A6856C0A7D046A2A3D19A1C23EDDD0D"><enum>(6)</enum><text display-inline="yes-display-inline">the Secretary of the Treasury;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H96B73505D27F43249A2651FEC6F5C454"><enum>(8)</enum><text display-inline="yes-display-inline">a representative of a financial
institution, appointed by the SEC;</text>
</paragraph><paragraph commented="no" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H87CD77CDB4E941B3B4B0248B7535CF1E"><enum>(b)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">The Forum shall meet no less often than
quarterly.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE7991EF4B4DE441A9AFBDC0266373ED7"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6CA342D119C84B289B758C88E4A01C15"><enum>(d)</enum><header display-inline="yes-display-inline">Reporting</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAFCF576386934E02B360D7DDE2162B48" section-type="subsequent-section"><enum>7418.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8AB3C26B97614277A5CB44146D0921C7"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraph (2) as paragraph
(3); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D79DA40346142AAB5B5D6F4F90AFF29"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBC782D7F84584E88A090B0E08F39BD0C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H85DF46A34FE444B99E83B8AE70406252"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment of certain mid-sized investment
advisers</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (1), an investment adviser that is not exempt from registration under
section 203 and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H30D0E422D8124FB49B96D3335C07AD36"><enum>(A)</enum><text display-inline="yes-display-inline">is regulated and examined, or required to
be regulated and examined, in the State where it maintains its principal office
and place of business; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9641D9B7E996487E90726CEFBE0CAD72"><enum>(B)</enum><text display-inline="yes-display-inline">has assets under management between—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" 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. If no
State in which an investment adviser described in subparagraph (B) is
registered conducts such an examination, the investment adviser must register
with the Commission. If, pursuant to this paragraph, an investment adviser
would be required to register with 5 or more States, then the adviser may
maintain its registration with the
Commission.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HAF28367A48B84F96AA4E2B45E84ADC58" section-type="subsequent-section"><enum>7419.</enum><header display-inline="yes-display-inline">Custodial requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H4C1F02E879C04C4EBC4E3209E09EF333"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this title, 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 that Act for an
investment adviser registered under such Act to have custody of funds or
securities of a client the value of which exceeds $10,000,000, unless—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF58EAD1729264C2490127FCCC92D5EC7"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3215A67F25C44829B1CF6596971CEAB2"><enum>(2)</enum><text display-inline="yes-display-inline">the qualified custodian does not directly
or indirectly provide investment advice with respect to such funds or
securities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7D06670AE6E24B52A0C4EA57F12BC081"><enum>(b)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The rule adopted under subsection (a) shall
include such exceptions as the Commission determines in the public interest and
consistent with the protection of investors. Any exemption granted under this
subsection shall ensure that at least once per year, a client described in
subsection (a) shall receive a report from an independent entity with a
fiduciary responsibility to the client to verify that the assets in the
client’s account are in accord with those stated on the client’s account
statement.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3C28030A05AE417B9EDE94E7D964FE9B"><enum>(c)</enum><header display-inline="yes-display-inline">No limits on other actions</header><text display-inline="yes-display-inline">Nothing in this section shall be construed
to limit other actions the Securities and Exchange Commission may take under
this Act to require the protection of client assets.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9C4AAC3AA0EA4F7EAF4F2CBFE9DA81E9" section-type="subsequent-section"><enum>7420.</enum><header display-inline="yes-display-inline">Ombudsman</header>
<subsection commented="no" display-inline="no-display-inline" id="H8C32B75D4E764BA78D660D4787F3ECCF"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H26C4035648BA43AC80FFAC99D40FBF01"><enum>(b)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The Ombudsman appointed under subsection
(a) shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H032CA50586B0425AB92F5B73D1BC28E8"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H60616EF21E3143989B4DA6583636F354"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H391917036A934FDD97D35CD259691EC0"><enum>(3)</enum><text display-inline="yes-display-inline">assure that safeguards exist to maintain
confidentiality of communications between such persons and the
Ombudsman.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCB42214564AB4661A2FAF32BD4E3F56F"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H572DD3EF78F74AFBAB173E064B4F5419"><enum>(d)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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 regard to the effectiveness of the
Ombudsman.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9C0A7B52F48541A6A4AA814F5701327F" section-type="subsequent-section"><enum>7421.</enum><header display-inline="yes-display-inline">Notice to missing security
holders</header><text display-inline="no-display-inline">Section 17A of the
Securities Exchange Act of 1934 (15 U.S.C. 78q–1) is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HED42B6C768C549F1B73243182E046236" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H56B98CD3438B4244A8F21FC3AE15D7B9"><enum>(g)</enum><header display-inline="yes-display-inline">Due diligence for the delivery of
dividends, interest, and other valuable property rights</header>
<paragraph commented="no" display-inline="no-display-inline" id="H43A3796BAEBA4753BC8CB678DBB71529"><enum>(1)</enum><header display-inline="yes-display-inline">Revision of rules required</header><text display-inline="yes-display-inline">The Commission shall revise its regulations
in section 240.17Ad–17 of title 17, Code of Federal Regulations, as in effect
on December 8, 1997, to extend the application of such section to brokers and
dealers and to provide for the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC084FED2E1E94AD284A2D45AF4509063"><enum>(A)</enum><text display-inline="yes-display-inline">A requirement that the paying agent provide
a single written notification to each missing security holder that the missing
security holder has been sent a check that has not yet been negotiated. The
written notification may be sent along with a check or other mailing
subsequently sent to the missing security holder but must be provided no later
than 7 months after the sending of the not yet negotiated check.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B4A55A7D9C043EC9779B208757AD12F"><enum>(B)</enum><text display-inline="yes-display-inline">An exclusion for paying agents from the
notification requirements when the value of the not yet negotiated check is
less than $25.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3DE0156D306047289FDA9605687C05EA"><enum>(C)</enum><text display-inline="yes-display-inline">A provision clarifying that the
requirements described in subparagraph (A) shall have no effect on State
escheatment laws.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2C1E5B465E6D451BA11241D4A36B502B"><enum>(D)</enum><text display-inline="yes-display-inline">For purposes of such revised
regulations—</text>
<clause commented="no" display-inline="no-display-inline" id="H2B56BA86A95D4ACD89AA836F31B3AF69"><enum>(i)</enum><text display-inline="yes-display-inline">a security holder shall be considered a
<quote>missing security holder</quote> if a check is sent to the security
holder and the check is not negotiated before the earlier of the paying agent
sending the next regularly scheduled check or the elapsing of 6 months after
the sending of the not yet negotiated check; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H65CD39BE5E2F499B92D6AB736914D816"><enum>(ii)</enum><text display-inline="yes-display-inline">the term <quote>paying agent</quote>
includes any issuer, transfer agent, broker, dealer, investment adviser,
indenture trustee, custodian, or any other person that accepts payments from
the issuer of a security and distributes the payments to the holders of the
security.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69876810A4FE451A98F927C060630ED5"><enum>(2)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">The Commission shall adopt such rules,
regulations, and orders necessary to implement this subsection no later than 1
year after the date of enactment of this subsection. In proposing such rules,
the Commission shall seek to minimize disruptions to current systems used by or
on behalf of paying agents to process payment to account holders and avoid
requiring multiple paying agents to send written notification to a missing
security holder regarding the same not yet negotiated
check.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H8ED08F5BB8EB4C61944D6AF5AA8A86C3" section-type="subsequent-section"><enum>7422.</enum><header display-inline="yes-display-inline">Short sale reforms</header>
<subsection commented="no" display-inline="no-display-inline" id="H9DB89203B5804AE6981AE6143E38E40F"><enum>(a)</enum><header display-inline="yes-display-inline">Short sale disclosure</header><text display-inline="yes-display-inline">Section 13(f) of the Securities Exchange
Act of 1934 (15 U.S.C. 78m(f)) is amended by redesignating paragraphs (2), (3),
(4), and (5) as paragraphs (3), (4), (5), and (6), respectively, and inserting
after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA28A527E11704ED98D2B21D17797DC9B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB4144C68FF854DC2B607F3CCD9E739F2"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H40973B5128574399BDA3D371B22D78A4"><enum>(A)</enum><text display-inline="yes-display-inline">Every institutional investment manager that
effects a short sale of an equity security shall also file a report on a daily
basis with the Commission in such form as the Commission, by rule, may
prescribe. Such report shall include, as applicable, the name of the
institution, the name of the institutional investment manager and the title,
class, CUSIP number, number of shares or principal amount, aggregate fair
market value of each security, and any additional information requested by the
Commission. For purposes of section 552 of title 5, United States Code, this
subparagraph shall be considered a statute described in subsection (b)(3)(B) of
such section. The information contained in reports of an institutional
investment manager filed with the Commission pursuant to this section, shall be
subject to the same non-disclosure and confidentiality protection provided
under section 204(b)(8) of the Investment Advisers Act of 1940.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA14515FDBEAB428FA8487D9850D1C4C7" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The Commission shall prescribe rules
providing for the public disclosure of the name of the issuer and the title,
class, CUSIP number, aggregate amount of the number of short sales of each
security, and any additional information determined by the Commission following
the end of the reporting period. At a minimum, such public disclosure shall
occur every
month.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC39D5395185D4F92B6BCD94058C59C72"><enum>(b)</enum><header display-inline="yes-display-inline">Short selling enforcement</header><text display-inline="yes-display-inline">Section 9 of the Securities Exchange Act of
1934 (15 U.S.C. 78i) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H67BABB724F81478FB17CE2DB29282AD0"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (d), (e), (f),
(g), (h), and (i) as subsections (e), (f), (g), (h), (i), and (j),
respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFCBB2AEBA76146F6BE566D391EE1A533"><enum>(2)</enum><text display-inline="yes-display-inline">inserting after subsection (c), the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9EB07098F9ED46C58DA907FF0DFBAF7B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3CE47AE50F834130ACFD6DF96AFC71C8"><enum>(d)</enum><header display-inline="yes-display-inline">Transactions relating to short sales of
securities</header><text display-inline="yes-display-inline">It shall be
unlawful for any person, directly or indirectly, by the use of the mails or any
means or instrumentality of interstate commerce, or of any facility of any
national securities exchange, or for any member of a national securities
exchange to effect, alone or with one or more other persons, a manipulative
short sale of any security. The Commission shall issue such other rules as are
necessary or appropriate to ensure that the appropriate enforcement options and
remedies are available for violations of this subsection in the public interest
or for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA74DEA9625FA4CDD9BE2593F9523C748"><enum>(c)</enum><header display-inline="yes-display-inline">Investor Notification</header><text display-inline="yes-display-inline">Section 15 of the Securities Exchange Act
of 1934 (15 U.S.C. 78o) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC5F46B5A0720434489DF8F421020695C"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (e), (f), (g),
(h), and (i) as subsections (f), (g), (h), (i), and (j), respectively;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5604EDC0F0824AB398EFF77D86A3B0BA"><enum>(2)</enum><text display-inline="yes-display-inline">inserting after subsection (d) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HB581400519884300BBEAAD5CB95050E9" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEA1C53C715F545948F2F25122133CD64"><enum>(e)</enum><header display-inline="yes-display-inline">Notices to customers regarding securities
lending</header><text display-inline="yes-display-inline">Every registered
broker or dealer shall provide notice to its customers that they may elect not
to allow their fully paid securities to be used in connection with short sales.
If a broker or dealer uses a customer’s securities in connection with short
sales, the broker or dealer shall provide notice to its customer that the
broker or dealer may receive compensation in connection with lending the
customer’s securities. The Commission, by rule, as it deems necessary or
appropriate in the public interest and for the protection of investors, may
prescribe the form, content, time, and manner of delivery of any notice
required under this
paragraph.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H5740FFEFDACC4393A51AB08A58D41415" section-type="subsequent-section"><enum>7423.</enum><header display-inline="yes-display-inline">Streamlining of SEC filing
procedures</header>
<subsection commented="no" display-inline="no-display-inline" id="H0AC01380169041699103DDC51DEC4A31"><enum>(a)</enum><header display-inline="yes-display-inline">Approval process</header><text display-inline="yes-display-inline">Section 19(b)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78s(b)(2)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBC739E3300C946849A8ECA01FEB733D4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC5D74DD287A7493083B018AE09805B97"><enum>(2)</enum><header display-inline="yes-display-inline">Filing procedures</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4838673C67F245CE90104F61F38698CB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Within thirty-five days of the date of
publication of notice of the filing of a proposed rule change in accordance
with paragraph (1) of this subsection, or within such longer period as the
Commission may designate up to ninety days of such date if it finds such longer
period to be appropriate and publishes its reasons for so finding or as to
which the self-regulatory organization consents, the Commission shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HF9551C4F9D96462F947752772C65C9A1"><enum>(i)</enum><text display-inline="yes-display-inline">by order approve such proposed rule change;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7F85721579A64BB48BD62C6F8087685F"><enum>(ii)</enum><text display-inline="yes-display-inline">institute proceedings under subparagraph
(B) to determine whether the proposed rule change should be disapproved.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1AE0FCBA04BB49A6863E5F7298413D35"><enum>(B)</enum><header display-inline="yes-display-inline">Proceedings</header><text display-inline="yes-display-inline">Proceedings to determine whether the
proposed rule change should be disapproved shall include notice of the grounds
for disapproval under consideration and opportunity for hearing and be
concluded within 200 days from the date of receipt of a proper filing. At the
conclusion of such proceedings the Commission, by order, shall approve or
disapprove such proposed rule change. The Commission may extend the time for
conclusion of such proceedings for up to 60 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 self-regulatory organization consents. The Commission
shall approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the requirements of
this title and the rules and regulations thereunder applicable to such
organization. The Commission shall disapprove a proposed rule change of a
self-regulatory organization if it does not make such finding. The Commission
shall not approve any proposed rule change prior to the thirtieth day after the
date of publication of notice of the filing thereof, unless the Commission
finds good cause for so doing and publishes its reasons for so
finding.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HCA275FE2BA454924AEBC4F38325D9F57"><enum>(b)</enum><header display-inline="yes-display-inline">Rules</header><text display-inline="yes-display-inline">Not later than 12 months after the date of
enactment of this Act, the Commission shall issue rules implementing a
disapproval process for filings submitted on or after the effective date of
such rules.</text>
</subsection></section></part><part commented="no" id="HEB6CF0C701AB4558A10FC09F36C46C9B" level-type="subsequent"><enum>5</enum><header display-inline="yes-display-inline">Securities Investor Protection Act
amendments</header>
<section commented="no" display-inline="no-display-inline" id="H4518A347C06E460C8731C81170B0FAF4" section-type="subsequent-section"><enum>7501.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H272CA9D9633B43BAA950E6A08B23CF60" section-type="subsequent-section"><enum>7502.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H215CAE3861A64C6D9CFE4797C534246C" section-type="subsequent-section"><enum>7503.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3BE9F2B8CC3547AFA72000DBFA617399"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>$100,000 for each such customer</quote> and inserting <quote>the
standard maximum cash advance amount for each such customer, as determined in
accordance with subsection (d)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD156DA1D90424F48B621A99FF2130B8D"><enum>(2)</enum><text display-inline="yes-display-inline">by adding the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="H29B99CAFBB404A4DACC366EC36E06A53" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC149A887676043728495C42763CBEEBF"><enum>(d)</enum><header display-inline="yes-display-inline">Standard maximum cash advance amount
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <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 commented="no" display-inline="no-display-inline" id="HBF13838672D34FFF8F60FB3C6FF4B30B"><enum>(e)</enum><header display-inline="yes-display-inline">Inflation adjustment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H24D9B010A87748DF8347CFD6F59EB4E1"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB276314C8E4047FF836D0B40F4A28078"><enum>(A)</enum><text display-inline="yes-display-inline">$250,000 multiplied by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3C967853C6C2412D9BDC96064A16B533"><enum>(B)</enum><text display-inline="yes-display-inline">the ratio of the annual value of the
Personal Consumption Expenditures Chain-Type Price Index (or any successor
index thereto), published by the Department of Commerce, for the calendar year
preceding the year in which such determination is made, to the published annual
value of such index for the calendar year preceding the year in which this
subsection was enacted.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The index values used in calculations
under this paragraph shall be, as of the date of the calculation, the values
most recently published by the Department of Commerce.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF55E904093FF4345B39B5039297B641A"><enum>(2)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If the standard maximum cash advance amount
determined under paragraph (1) for any period is not a multiple of $10,000, the
amount so determined shall be rounded down to the nearest $10,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H096B3EDC21B34108B5EC5422FC267ED3"><enum>(3)</enum><header display-inline="yes-display-inline">Publication and report to the
Congress</header><text display-inline="yes-display-inline">Not later than April
5 of any calendar year in which a determination is required to be made under
paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H709037E8F63A494591F3176F258F275C"><enum>(A)</enum><text display-inline="yes-display-inline">the Commission shall publish in the Federal
Register the standard maximum cash advance amount; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5CD18AB89B654465B6AD8264F9A9F90E"><enum>(B)</enum><text display-inline="yes-display-inline">the Board of Directors of SIPC shall submit
a report to the Congress stating the standard maximum cash advance
amount.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04EB8A6D8A4F4D5E99E8B91949AD042B"><enum>(4)</enum><header display-inline="yes-display-inline">Implementation period</header><text display-inline="yes-display-inline">Any adjustment to the standard maximum cash
advance amount shall take effect on January 1 of the year immediately
succeeding the calendar year in which such adjustment is made.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFAB77A7DA3AE452EADD0C2E712DCB4E9"><enum>(5)</enum><header display-inline="yes-display-inline">Inflation adjustment
considerations</header><text display-inline="yes-display-inline">In making any
determination under paragraph (1) to increase the standard maximum cash advance
amount, the Board of Directors of SIPC shall consider—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD7F8B42A96D24B0F9C1D16141AB7A6D0"><enum>(A)</enum><text display-inline="yes-display-inline">the overall state of the fund and the
economic conditions affecting members of SIPC;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE7FC2C550C9048E793DD57D2F6815A47"><enum>(B)</enum><text display-inline="yes-display-inline">the potential problems affecting members of
SIPC; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF140A02B006342A3BCB8C2EA814DE35E"><enum>(C)</enum><text display-inline="yes-display-inline">such other factors as the Board of
Directors of SIPC may determine
appropriate.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HD00518E2946D47A8ABDEB245FB5F78CE" section-type="subsequent-section"><enum>7504.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7C1B0ACB9C3141ED9BC2B2258E2F85EA"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5CF04D35EDA549ABB9EBD363BC93C9FD"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>five hundred</quote> and
inserting <quote>five thousand</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H68C2F8A811CC4991A5EED305A5CBB944" section-type="subsequent-section"><enum>7505.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1B06C55473C94A59B12B861712E257A3" section-type="subsequent-section"><enum>7506.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE4FF1527D04C466C915D3467F31F8993" section-type="subsequent-section"><enum>7507.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE53DDB079AD64E6497F771FB890CD9A2"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>$50,000</quote> and inserting <quote>$250,000</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38EE0A731935413888727B2F7C53C096"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>$50,000</quote> and inserting <quote>$250,000</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HEB0F9482A89E414397261D7E3B8B322F" section-type="subsequent-section"><enum>7508.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9DEF43B3B8554372938AC41AB50E9246"><enum>(d)</enum><header display-inline="yes-display-inline">Misrepresentation of SIPC membership or
protection</header>
<paragraph commented="no" display-inline="no-display-inline" id="H30BA482E5729404EA390DFE23E0ED4E0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any person who falsely represents by any
means (including, without limitation, through the Internet or any other medium
of mass communication), with actual knowledge of the falsity of the
representation and with an intent to deceive or cause injury to another, that
such person, or another person, is a member of SIPC or that any person or
account is protected or is eligible for protection under this Act or by SIPC,
shall be liable for any damages caused thereby and shall be fined not more than
$250,000 or imprisoned for not more than 5 years.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA0BD247FE0D49D0B77FE1A43C2FA461"><enum>(2)</enum><header display-inline="yes-display-inline">Injunctions</header><text display-inline="yes-display-inline">Any court having jurisdiction of a civil
action arising under this Act may grant temporary injunctions and final
injunctions on such terms as the court deems reasonable to prevent or restrain
any violation of paragraph (1). Any such injunction may be served anywhere in
the United States on the person enjoined, shall be operative throughout the
United States, and shall be enforceable, by proceedings in contempt or
otherwise, by any United States court having jurisdiction over that person. The
clerk of the court granting the injunction shall, when requested by any other
court in which enforcement of the injunction is sought, transmit promptly to
the other court a certified copy of all papers in the case on file in such
clerk’s
office.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HD6252A724A3248D6B52756402C6A0321" section-type="subsequent-section"><enum>7509.</enum><header display-inline="yes-display-inline">Futures held in a portfolio margin
securities account protection</header>
<subsection commented="no" display-inline="no-display-inline" id="H7D9CE3940E7047C19B86AFA5F05E70BE"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF5C8E916ED6D49C0BDF07CB06CE1CD1B"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 16 of such Act (15 U.S.C. 78lll) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7580B8B563BA449299ECE04A70C51C80"><enum>(1)</enum><text display-inline="yes-display-inline">by amending paragraph (2) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HE8DF11D2D6DC45C0880C9F65D9776E93" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H28769F4DE4844F3D87C1E58A4A4B57DB"><enum>(2)</enum><header display-inline="yes-display-inline">Customer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HABA348885FA94784B3DE0386056A9D9C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H25FF81797CB54570B2EA7BBCED705BF7"><enum>(B)</enum><header display-inline="yes-display-inline">Included persons</header><text display-inline="yes-display-inline">The term <term>customer</term>
includes—</text>
<clause commented="no" display-inline="no-display-inline" id="H1EF6624DFAC34D6A82DAEB5280FF1BE9"><enum>(i)</enum><text display-inline="yes-display-inline">any person who has deposited cash with the
debtor for the purpose of purchasing securities; and</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H959ACCF765674F0E899464D5E206A69C"><enum>(C)</enum><header display-inline="yes-display-inline">Excluded persons</header><text display-inline="yes-display-inline">The term <term>customer</term> does not
include—</text>
<clause commented="no" display-inline="no-display-inline" id="HFC7DFC11E65C43A1B72D032E6523981D"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4640CBBAB1C2494CBF7515AFAA1F52FC"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" 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 commented="no" display-inline="no-display-inline" id="HCD7F9B07539A4805A41C401F13BF12FF"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H199B1A79F69446DEA5890F0006F47F77"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA06FE16F340B418B83A9608975BFD873"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (11)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC8B35F1561E6482CBFD91FEDF0E1F3EF"><enum>(A)</enum><text display-inline="yes-display-inline">by amending subparagraph (A) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H6FB4FCC560FF47028460C2AD6F8F0275" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H0545D8E4EEC7470E8061FA7EE6AAE637"><enum>(i)</enum><text display-inline="yes-display-inline">all securities positions of such customer
(other than customer name securities reclaimed by such customer); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3FE387BEF67249D6A113D5A6211E5E6B"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16C0B204FAB846A8B474B6E9FFF754F5"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA57FBA91C7574267AF9333340358CF13" section-type="subsequent-section"><enum>7510.</enum><header display-inline="yes-display-inline">Study and report on the feasibility of
risk-based assessments for SIPC members</header>
<subsection commented="no" display-inline="no-display-inline" id="H82A18410AE7D4CFEB624DCD7754CC5C2"><enum>(a)</enum><header display-inline="yes-display-inline">Study
required</header><text display-inline="yes-display-inline">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 and to provide additional levels of coverage on an optional
basis.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD86D2C9A93DD4B47843CC67984F38836"><enum>(b)</enum><header display-inline="yes-display-inline">Content</header><text display-inline="yes-display-inline">The Comptroller General in conducting this
study shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H33F45EC2247248E2AF9241F24A0B549B"><enum>(1)</enum><text display-inline="yes-display-inline">identify and examine available approaches,
including modeling, to measure broker and dealer operational risk;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB094C935BFC641A285B800864431E34B"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8D45286ABEE644A4BE3AF0CAE7AB8C36"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H65DA465B42F441E39CF90B1D8785436D"><enum>(4)</enum><text display-inline="yes-display-inline">examine the impact that risk-based
assessments could have on large and small brokers and dealers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H453AB78CC01842A1A6B2D9DC2507174D"><enum>(5)</enum><text display-inline="yes-display-inline">examine the impact that risk-based
assessments could have on institutional and retail brokers and dealers;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC1519CAFF3F42AF8C047659CD16A9D0"><enum>(6)</enum><text display-inline="yes-display-inline">examine the feasibility of SIPC providing
additional levels of coverage on an optional basis, what those additional
levels of coverage should be, and the appropriate risked-based premium for
providing additional coverage.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0A06FD71BFAC482B8EFC33470A15F9EC"><enum>(c)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9F518DFED4124EFC8D368E663BBC4A4B"><enum>(d)</enum><header display-inline="yes-display-inline">Report required</header><text display-inline="yes-display-inline">Not later than 1 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></part><part commented="no" id="HA60F6927322D4CD48F44900D1086D9FC" level-type="subsequent"><enum>6</enum><header display-inline="yes-display-inline">Sarbanes-Oxley Act Amendments</header>
<section commented="no" display-inline="no-display-inline" id="HEF4CA8FA55E346C0B6AEA02E28D9220B" section-type="subsequent-section"><enum>7601.</enum><header display-inline="yes-display-inline">Public Company Accounting Oversight Board
oversight of auditors of brokers and dealers</header>
<subsection commented="no" display-inline="no-display-inline" id="H2E29BDBFC08444DD8ABE38514BF0024F"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><paragraph commented="no" display-inline="yes-display-inline" id="H5022F22E0EC4457A9E16D60831BCEBE8"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDC79D947FF6E41409E8C0236689CDAEC" section-type="subsequent-section"><enum>110.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For the purposes of this title, and
notwithstanding section 2:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD98115AF1E5445208456770D1294E12E"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H01644F86F0F84F51B4A9739632E180A1"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB85AA1F81FEE4907A6B5BCA9511362F2"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE8BD76BE07343429EF1044D02D08672"><enum>(B)</enum><text display-inline="yes-display-inline">in which a public accounting firm
either—</text>
<clause commented="no" display-inline="no-display-inline" id="HABF18B36E8EA4C0C94AF0AD055A8042E"><enum>(i)</enum><text display-inline="yes-display-inline">sets forth the opinion of that firm
regarding a financial statement, report, notice, other document, procedures, or
controls; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H321182EA40D846E7B57260F6BBADC807"><enum>(ii)</enum><text display-inline="yes-display-inline">asserts that no such opinion can be
expressed.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7475240C2AC341F08E1DEF047517B113"><enum>(3)</enum><header display-inline="yes-display-inline">Professional standards</header><text display-inline="yes-display-inline">The term <quote>professional
standards</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H987FAB0D3E42457397F28CD6AC61627E"><enum>(A)</enum><text display-inline="yes-display-inline">accounting principles that are—</text>
<clause commented="no" display-inline="no-display-inline" id="H1915DDB6A7F14EE78AB5635F8AE0FEA1"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H19F7F7A40B4A48CD8F58F0BF821FB48A"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0E5A2BF97E524347A2FF1AF8624657D4"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7CEC06E2F91A4883AF5863F81B084121"><enum>(i)</enum><text display-inline="yes-display-inline">relate to the preparation or issuance of
audit reports for issuers, brokers, or dealers; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H44F940E175AF4F1C8A9A6C7A22441D2F"><enum>(ii)</enum><text display-inline="yes-display-inline">are established or adopted by the Board
under section 103(a), or are promulgated as rules of the Commission.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC6DD42A74FF847CA842AB902843CDE2F"><enum>(4)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H473396EA75FE48E580DF8CA87A597E73"><enum>(5)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB74BEB25723458EA8E1D36A71BB10E4"><enum>(6)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8FC2F7175707475688BC12D4A0210320" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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 bold="off" level="section">Sec. 110.
Definitions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF18DAA7DBF3A43C09C3CEF1D85FB38F6"><enum>(b)</enum><header display-inline="yes-display-inline">Establishment and Administration of the
Public Company Accounting Oversight Board</header><text display-inline="yes-display-inline">Section 101 of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC0CC1CFB665A42C6A14C2B785680DCD0"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>issuers</quote> each
place it appears and inserting <quote>issuers, brokers, and
dealers</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3EB50E08F29E4602899F6475A3D8607D"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>public companies</quote> and inserting <quote>companies</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H08DC770943004FDC9D493932FC360973"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD2B86F13D87D4A10938EE6FF6CBAF931"><enum>(c)</enum><header display-inline="yes-display-inline">Registration with the Board</header><text display-inline="yes-display-inline">Section 102 of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF31C177F3B7440E18ED141EBBAF52075"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB1F8B27673994070A5930D1DAB45B6DC"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H57FC5065C1304ACC8ADBD232F6543340"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (b)(2)(A), by striking
<quote>issuers</quote> and inserting <quote>issuers, brokers, and
dealers</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9B50AF73F07A441F9D671475E5050662"><enum>(d)</enum><header display-inline="yes-display-inline">Auditing and independence</header><text display-inline="yes-display-inline">Section 103(a) of such Act is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0249857313AB4CD08FB07BC0985BBED7"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H937582800FA049E59B51D50854ABBDA1"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3FE262F7494A4BE9BEA9C880526ADE32"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (2)(B)(i), by striking
<quote>issuers</quote> and inserting <quote>issuers, brokers, and
dealers</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2FEAA6E6F66645EF800B52EFA0F3BC3D"><enum>(e)</enum><header display-inline="yes-display-inline">Inspections by registered accounting
firms</header><text display-inline="yes-display-inline">Subsection (a) of
Section 104 of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H35E71EBA65A542F7B4889FE2FF9CF739"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(a)
<header-in-text level="subsection" style="OLC">In General</header-in-text>.—The
Board shall</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF834E4C9D1974364B4D05A5E331A696B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8CADB1E938AF473A802D8668E4EDB919"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEAFB9C3C1ACF467AA21F8E2C9E2F9A7D"><enum>(1)</enum><text display-inline="yes-display-inline">The Board
shall</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC757E6533F9444A0B2D18FE8FE156428"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end of such subsection the
following:</text>
<quoted-block display-inline="no-display-inline" id="H7D11CD223FDD433FB017977078F7F6BE" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5AD6E6E0DE594B60A5BAECC1E31D09F9"><enum>(2)</enum><header display-inline="yes-display-inline">Inspections of audit report for brokers and
dealers</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="HADE4344AD91E47CDBE006A2D1B5D83D2"><enum>(A)</enum><text display-inline="yes-display-inline">The Board may, by rule, conduct and require
a program of inspection in accordance with paragraph (a)(1), on a basis to be
determined by the Board, of registered public accounting firms that provide one
or more audit reports for a broker or dealer. The Board, in establishing such a
program, may allow for differentiation among classes of brokers and dealers, as
appropriate.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5C9F7A6A47354A66824F93E658E577B2"><enum>(B)</enum><text display-inline="yes-display-inline">If the Board determines to establish a
program of inspection pursuant to subparagraph (A), the Board shall consider in
establishing any inspection schedules whether differing schedules would be
appropriate with respect to registered public accounting firms that issue audit
reports only for one or more brokers or dealers that do not receive, handle, or
hold customer securities or cash or are not a member of the Securities Investor
Protection Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACFB09AB07FC46E3B6C7659868C43B13"><enum>(C)</enum><text display-inline="yes-display-inline">Any rules of the Board pursuant to this
paragraph shall be subject to prior approval by the Commission pursuant to
section 107(b) before the rules become effective, including an opportunity for
public notice and comment.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A6BED62317149729B99D0191E04676A"><enum>(D)</enum><text display-inline="yes-display-inline">Notwithstanding anything to the contrary in
section 102 of this Act, a public accounting firm shall not be required to
register with the Board if the public accounting firm is exempt from the
inspection program which may be established by the Board under subparagraph
(a)(2)(A) of this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF62C0B44E1C5408E89970D5E420E7EF8"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming Amendment</header><text display-inline="yes-display-inline">Section 17 (e)(1)(A) of the Securities
Exchange Act of 1934 (15 U.S.C. 78q(e)(1)(A)) is amended by striking
<quote>registered public accounting firm</quote> and inserting
<quote>independent public accounting firm or by a registered public accounting
firm if registration is required under the Sarbanes-Oxley Act of 2002 as
amended.</quote>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBC6E8262E9F345F8BACF526FD55DF7A1"><enum>(f)</enum><header display-inline="yes-display-inline">Investigations and disciplinary
proceedings</header><text display-inline="yes-display-inline">Section
105(c)(7)(B) of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H71B85FF9DC6C4D18A7C3F5CDB363C5C3"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2D939074CF4A495A9D6B717E039D736A"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>any issuer</quote> each
place it appears and inserting <quote>any issuer, broker, or dealer</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H96037D93977A498A94E7B12BCB7AE919"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1C6560EDAE7B448DA5D08E534003E8B3"><enum>(g)</enum><header display-inline="yes-display-inline">Foreign public accounting
firms</header><text display-inline="yes-display-inline">Section 106 of such Act
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H65B8FA0E3F734E748FEB059789273602"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>issuer</quote> and inserting <quote>issuer, broker, or dealer</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32CFEC18FB0E4F5BAA1A90AD9C14A2FE"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a)(2), by striking
<quote>issuers</quote> and inserting <quote>issuers, brokers, or
dealers</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF57D688FA66744F9BD3AA70514D08EA8"><enum>(h)</enum><header display-inline="yes-display-inline">Funding</header><text display-inline="yes-display-inline">Section 109 of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD81723D7E07F4CEAA93D0C797DCA4BF4"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(2), by striking
<quote>subsection (i)</quote> and inserting <quote>subsection
(j)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H952298867A014AB39DB4060CA233D25F"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HA09535EC98EE4DE4896842B63EE5AA65"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H74CC4B763587465FBFB45138A283EE1D"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating subsections (h), (i), and
(j) as subsections (i), (j), and (k), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B676BCBBEE44F459FDDA377F2460C1C"><enum>(5)</enum><text display-inline="yes-display-inline">by inserting after subsection (g) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H545D634C1CAF4016AEEA52E1FDEDDA22" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEFC4BDC3E65E4E1EBF51E08AB9A2F11B"><enum>(h)</enum><header display-inline="yes-display-inline">Allocation of accounting support fees among
brokers and dealers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H65303210F8E546DBA326DAF7195DC921"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 dealers, in
accordance with the rules of the Board.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFA42ABB66B24AF289C83CA5D8A2E386"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2E97CA87D92E419E8BE0A4D7163DCD5E"><enum>(i)</enum><header display-inline="yes-display-inline">Referral of investigations to a
self-regulatory organization</header><text display-inline="yes-display-inline">Section 105(b)(4)(B) of the Sarbanes-Oxley
Act of 2002 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H472531AA0F3749E39442A7FDE4F57205"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H098E54639F574DFCB9B8CE9190F9566C"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after clause (i) the following
new clause:</text>
<quoted-block display-inline="no-display-inline" id="H008F026CF8BC42B18AD5FB3AF8529FD4" style="OLC">
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H63A2C0C382B64B79A465556C66F1197E"><enum>(j)</enum><header display-inline="yes-display-inline">Use of documents related to an inspection
or investigation</header><text display-inline="yes-display-inline">Section
105(b)(5)(B)(ii) of such Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD81F4BE578A64D59B005F54406CDDC13"><enum>(1)</enum><text display-inline="yes-display-inline">in subclause (III), by striking
<quote>and</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6E820A9E52774B25B30609306F7A137D"><enum>(2)</enum><text display-inline="yes-display-inline">in subclause (IV), by striking the comma
and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5F0DBD47ECF744E191D5A32DD4D47C40"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subclause (IV) the
following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H1BB5C81A8142426C9ED9B6F60E3B2B21" style="OLC">
<subclause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H184CBB11E4D94B7AA06D348C9A714DA3" section-type="subsequent-section"><enum>7602.</enum><header display-inline="yes-display-inline">Foreign regulatory information
sharing</header>
<subsection commented="no" display-inline="no-display-inline" id="H86A825ED110F471A9B89CC04C2C716D8"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE57ADC66D7548AB9E2460E2FFC1F0B8"><enum>(17)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H299337EA5B604231B3831AFAB006DF60"><enum>(b)</enum><header display-inline="yes-display-inline">Availability To Share
information</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBF17F306C97C433489B44678E5D1FB8A"><enum>(C)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6E53E6300D764768BCB1A457CD2E42F0"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 105(b)(5)(A) of the Sarbanes-Oxley
Act of 2002 (15 U.S.C. 7215(b)(5)(A)) is amended by striking
<quote>subparagraph (B)</quote> and inserting <quote>subparagraphs (B) and
(C)</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB6827BC52F7C4EA5AA0BD28EAE493ACD" section-type="subsequent-section"><enum>7603.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEE7B2FBFF3AA4BEDA6E2FB48887D5374"><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="HD530C70F403147AD83C55761F9A47CF5" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H94D92178726A40869E881074CACF3F47"><enum>(b)</enum><header display-inline="yes-display-inline">Production of documents</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0FFDE8D9154D4480AC854DFA21CDA65A"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2DD0C3D4E9544ACEA9B5BCC194ABA1FF"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1395CD8E17C747F8AF063D22F92CA1D3"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0E5FEAC2E32343C4A7F0F1DF7E899387"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6A84DB0BB4A24911BC6D82A39FC4C81F"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subsection (d) as
subsection (g); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H55EFF12EFE3749FA8B17A96D26B3F1D8"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subsection (c) the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H8FBD86A93F584742BEC93D8CD5FE1624" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H169C1CFB31B04E3FABD75FC340E5A2DD"><enum>(d)</enum><header display-inline="yes-display-inline">Service of requests or
process</header><text display-inline="yes-display-inline">Any foreign public
accounting firm that performs work for a domestically registered public
accounting firm shall furnish to the domestically 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 commented="no" display-inline="no-display-inline" id="HD6D0D896AE1246B5A36749D16B1CBC14"><enum>(e)</enum><header display-inline="yes-display-inline">Sanctions</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H46B499EDA063416CBAFB4FD0C0046B05"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93557098E1054807A3B34B216107B906" section-type="subsequent-section"><enum>7604.</enum><header display-inline="yes-display-inline">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.C. 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 commented="no" display-inline="no-display-inline" id="H2E78C379B0CA4A0DB16B17E1EF98124E" section-type="subsequent-section"><enum>7605.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H68C0BDA4B34F45FB8B62A2736A6A5ED4"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subsection (a) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HCC5919A18BD04118B93EE610CC23BD15" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H4AEE4C2A3CC54F26B4D4E5DAD2DA56FD"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFB7E8B606CC64940A3DD01DAE69A1EFB"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H421D9B6B8FAC412A98604AF0264217E4"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE73B86443BF477FA9C2E702F8172F2A"><enum>(B)</enum><text display-inline="yes-display-inline">striking <quote>in the disgorgement
fund</quote> and inserting <quote>in such fund</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8DDD70A3DE5846F2A9A53965290F4292"><enum>(3)</enum><text display-inline="yes-display-inline">by striking subsection (e).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HD700AFCE8AB94B988D16B0DCCACB0C17" section-type="subsequent-section"><enum>7606.</enum><header display-inline="yes-display-inline">Exemption for nonaccelerated
filers</header>
<subsection commented="no" display-inline="no-display-inline" id="H9754367E452546C79BF2DB832BB4CBEE"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0BDE923F7CA8450D99972EBC8971F198"><enum>(c)</enum><header display-inline="yes-display-inline">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 CFR
240.12b–2).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H75C3D00EF8CD45E1B672D8A59120E2D5"><enum>(b)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study to determine how the Commission could reduce the burden
of complying with section 404(b) of the Sarbanes-Oxley Act of 2002 for
companies whose market capitalization is between $75,000,000 and $250,000,000
for the relevant reporting period while maintaining investor protections for
such companies. The study shall also consider whether any such methods of
reducing the compliance burden or a complete exemption for such companies from
compliance with such section would encourage companies to list on exchanges in
the United States in their initial public offerings. Not later than 9 months
after the date of the enactment of this subtitle, the Commission shall transmit
a report of such study to Congress.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA3765333226D44EE82BCF556D1D06929" section-type="subsequent-section"><enum>7607.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H32DFF7CED9674051B7EBFC05C3816334" section-type="subsequent-section"><enum>7608.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4B432A7C70404424AAFE557D65B045B4"><enum>(i)</enum><header display-inline="yes-display-inline">Congressional access to
information</header><text display-inline="yes-display-inline">Nothing in this
section shall prevent the Board from responding to requests for reports from
the Committee’s specified under subsection (h) about the activities or programs
of the Board, provided that any confidential information contained therein
shall be subject to the provisions of section
105(b)(5).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H713CDBC4C05D4B0FB4C31C2FBE85E278" section-type="subsequent-section"><enum>7609.</enum><header display-inline="yes-display-inline">Creation of ombudsman for the
PCAOB</header>
<subsection commented="no" display-inline="no-display-inline" id="H491D875637E3449E81172D4CB1B2727B"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD8651B6A0DAE47D89852142D6F8DEA4C" section-type="subsequent-section"><enum>111.</enum><header display-inline="yes-display-inline">Ombudsman</header>
<subsection commented="no" display-inline="no-display-inline" id="H747F6D078AD44E4987F1B80D83A604D5"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC3E17502E23343C7B756E3EBB3839893"><enum>(b)</enum><header display-inline="yes-display-inline">Duties of Ombudsman</header><text display-inline="yes-display-inline">The ombudsman appointed in accordance with
subsection (a) for the Board shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H26B90E169697428AB0593156E02C01EA"><enum>(1)</enum><text display-inline="yes-display-inline">act as a liaison between the Board
and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF23C8ADAC3904C0E866BB84DFE2A73F2"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7E0DE8814C404DACBF3A95347438F404"><enum>(B)</enum><text display-inline="yes-display-inline">any affected registered public accounting
firm or issuer with respect to—</text>
<clause commented="no" display-inline="no-display-inline" id="H85581DCF32DE474DBFA296DED06BECDB"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H623EB0087CCC4AAE83D2ED7F1E45ECFB"><enum>(ii)</enum><text display-inline="yes-display-inline">issues caused by the relationships of
registered public accounting firms and issuers generally;</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82D15A05B70A402DBB21CA8C4DFFF17A"><enum>(2)</enum><text display-inline="yes-display-inline">assure that safeguards exist to encourage
complainants to come forward and to preserve confidentiality; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H55C029EFF7404F20B00FD53F9511F181"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H180C46DFA74B4BE5850B107582D3FE7B"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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 bold="off" level="section">Sec. 111.
Ombudsman.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5E04C2E67E3F453D8E68E6B7E6728AA9" section-type="subsequent-section"><enum>7610.</enum><header display-inline="yes-display-inline">Auditing Oversight Board</header><text display-inline="no-display-inline">The Sarbanes-Oxley Act of 2002 is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8E5D4BCB3B164F6FA59C59B93FFC559F"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(5), by striking
<quote>Public Company Accounting Oversight Board</quote> and inserting
<quote>Auditing Oversight Board</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" id="H8FD89CD500A34E538ED1EB0270935FD2" level-type="subsequent"><enum>7</enum><header display-inline="yes-display-inline">Senior Investment Protection</header>
<section commented="no" display-inline="no-display-inline" id="HEE4F8BADAC6E4BF3A390A8854BBA4D8F" section-type="subsequent-section"><enum>7701.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD1EAE964A6F14C178584A59B9A81289C"><enum>(1)</enum><text display-inline="yes-display-inline">many seniors are targeted by salespersons
and advisers using misleading certifications and professional
designations;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H33110970D3884A5C8523AC9413A94FFF"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4E9461A2924646E693D152778167FFA5"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDE5847099B5B4B2B9E9AC2F3303E6BAE"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7EDC9A06198543A7A3A8A15F68D4FC30"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H91559D7FD19640F4B1D3A5AF0A280140" section-type="subsequent-section"><enum>7702.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this part:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBBD8563A3C9F4CE6A898FCD64163D6EA"><enum>(1)</enum><header display-inline="yes-display-inline">Misleading designation</header><text display-inline="yes-display-inline">The term <term>misleading
designation</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA0DDF50E52B94377991EB4576FA862D3"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCEC48C804E824B8D8DB13EF6132058E9"><enum>(B)</enum><text display-inline="yes-display-inline">does not include any legitimate
certification, professional designation, license, or other credential,
if—</text>
<clause commented="no" display-inline="no-display-inline" id="H424649B7FCF54892A4AD18A33327D3B7"><enum>(i)</enum><text display-inline="yes-display-inline">it has been offered by an academic
institution having regional accreditation; or</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H62BF0BF8E352493C8BFF2207937FE356"><enum>(2)</enum><header display-inline="yes-display-inline">Financial product</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H14571463EE3548B18199C5DD60F6BEB2"><enum>(3)</enum><header display-inline="yes-display-inline">Misleading or fraudulent
marketing</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDDC7F07E7EDC42129D69DCCF464AC23E"><enum>(4)</enum><header display-inline="yes-display-inline">Senior</header><text display-inline="yes-display-inline">The term <term>senior</term> means any
individual who has attained the age of 62 years or more.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H771DD44011474A8B9DBDE65C43904750"><enum>(5)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8B0375829DC44226ACBA139802DF6F08" section-type="subsequent-section"><enum>7703.</enum><header display-inline="yes-display-inline">Grants to States for enhanced protection of
seniors from being misled by false designations</header>
<subsection commented="no" display-inline="no-display-inline" id="HA19660CEDECA4AF8A61300C01DEDD36F"><enum>(a)</enum><header display-inline="yes-display-inline">Grant program</header><text display-inline="yes-display-inline">The Securities and Exchange Commission (in
this part referred to as the <term>Commission</term>)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC6318F6DBD914EFCB129B58BBCD58331"><enum>(1)</enum><text display-inline="yes-display-inline">shall establish a program in accordance
with this part to provide grants to States—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB266F6B7359B415F83810A9F151F5E50"><enum>(A)</enum><text display-inline="yes-display-inline">to investigate and prosecute misleading and
fraudulent marketing practices; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H89F24EE53EB447EB8CDB9140AE52E442"><enum>(B)</enum><text display-inline="yes-display-inline">to develop educational materials and
training aimed at reducing misleading and fraudulent marketing of financial
products toward seniors; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7FB9E2EC36A6431D9CACC79AB9321C63"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8A53C6BDFD9B47139AD9B004A575E18C"><enum>(b)</enum><header display-inline="yes-display-inline">Use of grant amounts</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFE1FDAB5E11A4893A5EE3BA6BB713BDE"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7A891B94E8E842EC8D5E21C963B385B5"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA2E0E04993D94BF08D02717FA9A3CDA6"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5C0B00D3BAF3428CBC5E709524BAAB9A"><enum>(4)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to regulators on the appropriateness of the use of designations by
salespersons and advisers of financial products;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23E470F889324C3BBBDD591B5B6B55C8"><enum>(5)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to seniors to increase their awareness and understanding of
designations; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95FB061973F64DEFBCF2B9E1D6285A3C"><enum>(6)</enum><text display-inline="yes-display-inline">to develop comprehensive plans to combat
misleading or fraudulent marketing of financial products to seniors.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1754E774018A40689D9259B7DBAF6D23"><enum>(c)</enum><header display-inline="yes-display-inline">Grant requirements</header>
<paragraph commented="no" display-inline="no-display-inline" id="H03987910C69249B8AC910CADE43DD875"><enum>(1)</enum><header display-inline="yes-display-inline">Maximum</header><text display-inline="yes-display-inline">The amount of a grant under this part may
not exceed $1,000,000 per fiscal year per State, if all requirements of
paragraphs (2), (3), (4), and (5) are met. Such amount shall be limited to
$250,000 per fiscal year per State in any case in which the State meets the
requirements of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC3EC4BFB99B7432692E77BAB815BD467"><enum>(A)</enum><text display-inline="yes-display-inline">paragraphs (2) and (3), but not each of
paragraphs (4) and (5); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2E733B692FDC477EA5F5367C16A8DEB3"><enum>(B)</enum><text display-inline="yes-display-inline">paragraphs (4) and (5), but not each of
paragraphs (2) and (3).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE255C35D641244828FD313773E7A6D8F"><enum>(2)</enum><header display-inline="yes-display-inline">Standard designation rules for
securities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9BE83B50C0C64B7C86922090E3945D2B"><enum>(3)</enum><header display-inline="yes-display-inline">Suitability rules for
securities</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F383CC8E327488394DCEFBF6D02574A"><enum>(4)</enum><header display-inline="yes-display-inline">Application of fiduciary duty for
personalized investment advice about securities</header><text display-inline="yes-display-inline">Nothing in this section shall diminish in
any manner nor supersede the standard of conduct applicable to all brokers,
dealers and investment advisers providing personalized investment advice about
securities as set forth in section 7103 of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H165370F2AECF42779381D01FD43B373C"><enum>(5)</enum><header display-inline="yes-display-inline">Standard designation rules for insurance
products</header><text display-inline="yes-display-inline">A State shall have
adopted standard rules on the appropriate use of designations in the sale of
insurance products, which shall meet or exceed 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 commented="no" display-inline="no-display-inline" id="HC870BBAD3EF84D129E797FB2E9708D1C"><enum>(6)</enum><header display-inline="yes-display-inline">Suitability and supervision rules for
annuity products</header><text display-inline="yes-display-inline">A State
shall have adopted rules that govern suitability requirements in the sale of
annuities which shall meet or exceed the minimum requirements established by
the National Association of Insurance Commissioners Suitability in Annuity
Transactions Model Regulation in effect on the date of the enactment of this
Act, or any successor thereto.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H6C5DBD151F5749DEA9B01CC63012C987" section-type="subsequent-section"><enum>7704.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA7AE41D44BBE444AB1F590426A19C74E"><enum>(1)</enum><text display-inline="yes-display-inline">identify the scope of the problem;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25E440B523014381BA87CD091E82ADAE"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28DDCEF792BD4BA4AA733D88AB9A86F1"><enum>(A)</enum><text display-inline="yes-display-inline">by proactively identifying seniors who are
victims of misleading and fraudulent marketing in the offer and sale of
financial products;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0A4E54C3AB1443B98641AD6A1D7D5271"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H439A667ED4C6441A9F1425E97DEFE9E3"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4FBDA571F89A485EB3314386FF1530CF"><enum>(3)</enum><text display-inline="yes-display-inline">describe how the proposed program is to be
integrated with other existing State efforts.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4391158D7FBA450CA73745B2847582BD" section-type="subsequent-section"><enum>7705.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0F51ED9A4AD349798E2F6C43E2C154EE" section-type="subsequent-section"><enum>7706.</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated to carry out this part, $16,000,000 for each of
the fiscal years 2011 through 2015.</text>
</section></part><part commented="no" id="HB58FAE7D6E0F4460BB2C269F05463A30" level-type="subsequent"><enum>8</enum><header display-inline="yes-display-inline">Registration of Municipal Financial
Advisors</header>
<section commented="no" display-inline="no-display-inline" id="H9B0254BA9F4C45378DFD3EC1B3DFBD0B" section-type="subsequent-section"><enum>7801.</enum><header display-inline="yes-display-inline">Municipal financial adviser registration
requirement</header>
<subsection commented="no" display-inline="no-display-inline" id="H08B57BE015804804820DD2250EFCF296"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HEA239540E765476494C9661F1ACD871E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HDF5549BFCE4B46C99FAE6FB4C9DE9A11" section-type="subsequent-section"><enum>15G.</enum><header display-inline="yes-display-inline">Municipal financial adviser registration
requirement</header>
<subsection commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H7697B517C8394CC38D990D95789BB304" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4469D19AD9D847FBBEABC9408D6BC6DD"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HA2557D8A948041B8A689D9F80D37A6EC"><enum>(1)</enum><text display-inline="yes-display-inline">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 changed="added" commented="no" display-inline="no-display-inline" id="H48D4B3F5C5A041D58602A0BD57D17221" indent="up2"><enum>(A)</enum><text display-inline="yes-display-inline">by order grant registration; or</text>
</subparagraph><subparagraph changed="added" commented="no" display-inline="no-display-inline" id="H484AFF2044864D6B99756E84A2523EAF" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">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>
<continuation-text commented="no" continuation-text-level="subparagraph" indent="subparagraph">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></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H730964DA5C844929A758B24DA9A90D19" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB8FB8810E4BA41FEB83FAE824C7A144B" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD5C0867BE3DE4295A3A84377E1EBE9AC" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF999BE0B87442BFAC62A7D7E7AD2E72"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H08560CA3AC34431CB152FB409DFC0D27"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7F15EDE2DF094BABA84E4BE5934B9BC2"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0046805C91B4109A644FEC0C13A32FE"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H601940711E164F9096930B19E70986DD"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCBA46BC00EC441D99E2BE3DF1316D722"><enum>(iv)</enum><text display-inline="yes-display-inline">involves the violation of section 152,
1341, 1342, or 1343 or chapter 25 or 47 of title 18, United States Code, or a
violation of a substantially equivalent foreign statute;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B1845212D7A4149B5DE10158E3DDF6C"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C3F4C5E01A34A218EAC901214239F63"><enum>(D)</enum><text display-inline="yes-display-inline">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 the rules of the Municipal
Securities Rulemaking Board, or is unable to comply with any such
provision;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA499C83AF334982B497ED1BE7FD5646"><enum>(E)</enum><text display-inline="yes-display-inline">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 the rules of the Municipal
Securities Rulemaking Board, 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 commented="no" display-inline="no-display-inline" id="H44C8E8EC0D15474F939398F210A4106F"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2255499520424759A869AB817F2A0DFF"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6B844E550BE9407CBE5B138691A67097"><enum>(F)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2B39BB5E47654F62B47DD74289DA84F6"><enum>(G)</enum><text display-inline="yes-display-inline">has been found by a foreign financial
regulatory authority to have—</text>
<clause commented="no" display-inline="no-display-inline" id="HA258B4613EEB4FD7AD2BCF17E475F2A0"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5560CD587FD34074AD27D01F2C32FD50"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H42B538C758184DDB9F0DB8EE2C84743D"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9DA05200A2364637B7C658096D319657"><enum>(H)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H03236AD885C5435BBF39ED02B7BC74A3"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H28B16CB6089C4E1AACD232073A15B784"><enum>(ii)</enum><text display-inline="yes-display-inline">constitutes a final order based on
violations of any laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E7D691040B046DB805D1BD08BE3735D" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H13DF85E8294A4950977B3874B9390F24" indent="up1"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0C7A028C3AAB44D8B878CF53F274470F"><enum>(A)</enum><text display-inline="yes-display-inline">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
broker, dealer, investment adviser, municipal securities dealer, transfer
agent, nationally recognized statistical rating organization, or 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 commented="no" display-inline="no-display-inline" id="H3323FBA8D17F48DF94BDED18578ACA64" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">has committed or omitted any act, or is
subject to an order or finding, enumerated in subparagraph (A), (D), (E), (G),
or (H) of paragraph (4) of this subsection;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H25C777E30EA2438F9983BD9C2B2293E5" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H7B590F074AFB43C8B52BA132BB63FEBC" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">is enjoined from any action, conduct, or
practice specified in subparagraph (C) of such paragraph (4).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7FEA8F10038D4A1C8C8C0EDB722B7CC0" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">It shall be unlawful—</text>
<clause commented="no" display-inline="no-display-inline" id="H997E76457290432A808FE161055C2BA1"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4C3825E5EAD34035B33787A34B163DF1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H58840404C2A1443A93B6C0BB1AA9F60F" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HFDB9B13A2BCC433393644597770322B6"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3659A0417B5844F58ED7D3736A2AF096"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC77360DEF1C04B53A6F861634FA7A7BB"><enum>(C)</enum><text display-inline="yes-display-inline">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 commented="no" 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 commented="no" display-inline="no-display-inline" 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 display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC526C3C3CC1E4657BEBF04383AF385E8" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5D060CF32AE245B2ABACBA0B77391650" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0845ABAE62E94C0DB1BAB07C9BD0BEB3"><enum>(d)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC45FD7EB8BC44F31BFED958673DA3F56"><enum>(e)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E288C84B6DC4405BE4ACF44F710B092"><enum>(b)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H0FFCA1086701449AA21E9D95D5FA5C23" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H67CEB20A2D0043A8832939AD7CA258C6"><enum>(78)</enum><header display-inline="yes-display-inline">Municipal financial adviser</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9FA4B30E800C489895E36E50CEE2CFBC"><enum>(A)</enum><text display-inline="yes-display-inline">The term <quote>municipal financial
adviser</quote> means a person who, for compensation, engages in the business
of—</text>
<clause commented="no" display-inline="no-display-inline" id="HDC75DC18F7204AF6B4A9651C5820F7A0"><enum>(i)</enum><text display-inline="yes-display-inline">providing advice to a municipal securities
issuer with respect to—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA10A29120C734F86BA0B774578B8F4E7"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H001C66C2A3D74DA7B4E2465DC2D21FF3"><enum>(II)</enum><text display-inline="yes-display-inline">the investment of proceeds from securities
issued by such municipal securities issuer;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H30D898C891C844F1B152891808F36605"><enum>(III)</enum><text display-inline="yes-display-inline">the hedging of any risks associated with
subclause (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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HF818551AF2D9484EBAE418C8009D208A"><enum>(ii)</enum><text display-inline="yes-display-inline">assisting a municipal securities issuer in
selecting or negotiating guaranteed investment contracts or other investment
products; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5B93BC35D2574573970A3752143F38B6"><enum>(iii)</enum><text display-inline="yes-display-inline">assisting any municipal securities issuer
in the primary offering of securities not involving a public offering.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H73705D3B5249415C902D5433F66761DB"><enum>(B)</enum><text display-inline="yes-display-inline">Such term does not include—</text>
<clause commented="no" display-inline="no-display-inline" id="H721E010C14DD40A19A229F6DFF70F0F4"><enum>(i)</enum><text display-inline="yes-display-inline">an attorney, if the attorney is offering
advice or providing services that are of a traditional legal nature;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7CD80AED3493431580BA1C7237E244A0"><enum>(ii)</enum><text display-inline="yes-display-inline">a nationally recognized statistical rating
organization to the extent it is involved in the process of developing credit
ratings;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H057798941DFD4F3084E392E6180CFCDE"><enum>(iii)</enum><text display-inline="yes-display-inline">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. 77b(a)(11));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB9E6EA905D734B988F3A4B49EFD2B6C0"><enum>(iv)</enum><text display-inline="yes-display-inline">a State or any political subdivision
thereof; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD33F785C634B424BB71D23C0E8312C90"><enum>(v)</enum><text display-inline="yes-display-inline">the independent accountant that audits the
financial statements of the municipal securities issuer.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9337E7B556F545CEB546B4731D5C00C2"><enum>(79)</enum><header display-inline="yes-display-inline">Municipal securities issuer</header><text display-inline="yes-display-inline">The term <quote>municipal securities
issuer</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0E2AFD4BA14048569CBB37BAD536A770"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3643CCD7EA3E42C9B2F93BC048174F78"><enum>(B)</enum><text display-inline="yes-display-inline">any person who receives the proceeds
generated from the issuance of municipal securities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DB7A1CB504F44FABAC14A0DA5561A92"><enum>(80)</enum><header display-inline="yes-display-inline">Person associated with a municipal
financial adviser; associated person of a municipal financial
adviser</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HBB3E18EEAEEB4AE4AB564AA19486CDD4" section-type="subsequent-section"><enum>7802.</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="HF495B487FD2D445EAF92A7A6A6B04584"><enum>(a)</enum><header display-inline="yes-display-inline">Securities Exchange Act of 1934
</header><text display-inline="yes-display-inline">The Securities Exchange Act
of 1934 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H01E046A6CAC244219F10369279D20DFA"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB70B8CECD01743D4982569D9E31BE005"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC41F8E9975F04C40ADC3DEEBBA5A8309"><enum>(3)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H7F52EF59D73E481791ECC353CEED9D79"><enum>(b)</enum><header display-inline="yes-display-inline">Investment Company Act of
1940</header><text display-inline="yes-display-inline">The Investment Company
Act of 1940 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H28C5E955BEA54EE0B82A7730BC4E320C"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="HAF8CB481DDB44A339EC9B7E5BCD51F75"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HB628AA45AD374BD6B784426D98E88AD9"><enum>(3)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF29C093AAB514D47B6BEC3A7998F8D31"><enum>(c)</enum><header display-inline="yes-display-inline">Investment Advisers Act of
1940</header><text display-inline="yes-display-inline">The Investment Advisers
Act of 1940 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3E9F336393DF4837B43178B2B4B7EDB1"><enum>(1)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" 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" display-inline="no-display-inline" id="H8A882CDF37A6478B9D4C194C0EFD54E9"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HD04545057C2A40468AFAFFB82C0D0A91"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2662E5F80E674724A3A3848D81757338" section-type="subsequent-section"><enum>7803.</enum><header display-inline="yes-display-inline">Effective dates</header>
<subsection commented="no" display-inline="no-display-inline" id="H88A839242B04403599F1B0CD2E550D0D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The amendments made by this part shall take
effect 30 days after the date of the enactment of this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5A73901FC1E34D7D853D68E5D5F9331E"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date and requirements for
regulations</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0DC8272DCB142B497CED7905B3E563E"><enum>(c)</enum><header display-inline="yes-display-inline">Registration date</header><text display-inline="yes-display-inline">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 display-inline="yes-display-inline">Federal Insurance Office</header>
<section commented="no" display-inline="no-display-inline" id="HD1965BE40DA0499D8BC0BCAEF9D0EACA" section-type="subsequent-section"><enum>8001.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA1D11D923445426FA6CA7717E7C615B0" section-type="subsequent-section"><enum>8002.</enum><header display-inline="yes-display-inline">Federal Insurance Office
established</header>
<subsection commented="no" display-inline="no-display-inline" id="HA5ACD3AA0FDD44B28CDAB0D5E0431E1D"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of Office</header><text display-inline="yes-display-inline">Subchapter I of chapter 3 of title 31,
United States Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC89037F3F3E449A383A84A8FC3AE76C1"><enum>(1)</enum><text display-inline="yes-display-inline">by transferring and inserting section 312
after section 313;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30DEBC90493A455499AB033B3DB357F6"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating sections 313 and 312 (as
so transferred) as sections 312 and 315, respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE2CCF27EEF7B4830A43D002D44009CB5"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after section 312 (as so
redesignated) the following new sections:</text>
<quoted-block display-inline="no-display-inline" id="HF7D4973D71594EEAA053B8216A8ACC19" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H0C46AEEEFE104B8487CE4F4031C169F5" section-type="subsequent-section"><enum>313.</enum><header display-inline="yes-display-inline">Federal Insurance Office</header>
<subsection commented="no" display-inline="no-display-inline" id="HACF7DD0D566F4F4DBB80E79234AFF96F"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of Office</header><text display-inline="yes-display-inline">There is established the Federal Insurance
Office as an office in the Department of the Treasury.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1E1D8303274B428A9079C90872BF50C8"><enum>(b)</enum><header display-inline="yes-display-inline">Leadership</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1874420FAD404B50A1E3E71A9215C1FC"><enum>(c)</enum><header display-inline="yes-display-inline">Functions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7A9BC094C6C34F5A9849416BEE975FE4"><enum>(1)</enum><header display-inline="yes-display-inline">Authority pursuant to direction of
Secretary</header><text display-inline="yes-display-inline">The Office shall
have the authority, pursuant to the direction of the Secretary, as
follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H89B8D5D619BF45D0A9EA5EC3D72ACFDF"><enum>(A)</enum><text display-inline="yes-display-inline">To monitor the insurance industry to gain
expertise.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5B3922E284A747A2A60AC2E5D5BD95BC"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H70DF580F26614C4C896B3332153A9CA7"><enum>(C)</enum><text display-inline="yes-display-inline">To monitor the extent to which
traditionally underserved communities and consumers, minorities (as such term
is defined in 24 section 1204(c) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)), and low- and
moderate-income persons have access to affordable insurance products regarding
all lines of insurance, except health insurance.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC808FD80762B425A94E2FFD67EF76CA9"><enum>(D)</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 commented="no" display-inline="no-display-inline" id="HB35A0D3B9A6D4BD585D1020070F17A54"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF32A9E4D2E1945A0B2B88E3D9B3FE616"><enum>(F)</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 commented="no" display-inline="no-display-inline" id="H4AE3D194DB1F4EE79F284240FEF65FED"><enum>(G)</enum><text display-inline="yes-display-inline">To determine, in accordance with subsection
(f), whether State insurance measures are preempted by covered
agreements.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDE6D8C1444FD4CD6AAC1E8DFB645CDAF"><enum>(H)</enum><text display-inline="yes-display-inline">To consult with the States regarding
insurance matters of national importance and prudential insurance matters of
international importance.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H181E5DE154D64A319F566B62C3A90A64"><enum>(I)</enum><text display-inline="yes-display-inline">To perform such other related duties and
authorities as may be assigned to it by the Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H22BC2F6B73DD4CCAB5E46211E1BCCC11"><enum>(2)</enum><header display-inline="yes-display-inline">Advisory functions</header><text display-inline="yes-display-inline">The Office shall advise the Secretary on
major domestic and prudential international insurance policy issues.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3517F20245164D688B1762DA753799CE"><enum>(3)</enum><header display-inline="yes-display-inline">Advisory capacity on council</header><text display-inline="yes-display-inline">The Director shall serve in an advisory
capacity on the Financial Services Oversight Council established under the
Financial Stability Improvement Act of 2009.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H600C6BD1B7144EE0900393A0357DDA52"><enum>(d)</enum><header display-inline="yes-display-inline">Scope</header><text display-inline="yes-display-inline">The authority of the Office shall extend to
all lines of insurance except health insurance, as determined by the Secretary
in coordination with the Secretary of the Department of Health and Human
Services based on section 2791 of the Public Health Service Act (42 U.S.C.
300gg–91).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC5836E7F2EA49E1A3AE5208A43F1D9E"><enum>(e)</enum><header display-inline="yes-display-inline">Gathering of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE1953C78415F4D289AA10413954D3F7E"><enum>(1)</enum><header display-inline="yes-display-inline">General</header><text display-inline="yes-display-inline">In carrying out its functions under
subsection (c), the Office may request, receive, and collect data, including
financial 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 commented="no" display-inline="no-display-inline" id="HFB9C01A4926F47D09D193FF8A5486729"><enum>(2)</enum><header display-inline="yes-display-inline">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 writes
insurance or reinsures risks and issues contracts or policies in one or more
States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB49B28086ED14353A9B04D5A6A4E6856"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6262F66A28BC45B6AB1BB7B264206767"><enum>(4)</enum><header display-inline="yes-display-inline">Advance coordination</header><text display-inline="yes-display-inline">Before collecting any data or information
under paragraph (2) from an insurer, or affiliate of an insurer, the Office
shall coordinate with each relevant Federal agency and State insurance
regulator (or other relevant Federal or State regulatory agency, if any, in the
case of an affiliate of an insurer) and any publicly available sources to
determine if the information to be collected is available from, 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 commented="no" display-inline="no-display-inline" id="HC7AA3FA59F1F47F99010691B2049D3BE"><enum>(5)</enum><header display-inline="yes-display-inline">Confidentiality</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H23AA2FEC2F21402CA6E2F557CDABBE8B"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE239231E293F4A49ACB6A27BA33C35FB"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H979112985B4A43F199C958C84A864245"><enum>(f)</enum><header display-inline="yes-display-inline">Preemption of State insurance
measures</header>
<paragraph commented="no" display-inline="no-display-inline" id="H552DEC38146E46E08729239364C18A08"><enum>(1)</enum><header display-inline="yes-display-inline">Standard</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H478CE11D82264F5C8861961A63612AB5"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H63240C11BEF04B8989FE395A640204EB"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H63B30FC98D0E4D298FD0AFAA71351F1A"><enum>(2)</enum><header display-inline="yes-display-inline">Determination</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H99FA3B5A41754C32B5F871DFBCBFF1DC"><enum>(A)</enum><header display-inline="yes-display-inline">Notice of potential
inconsistency</header><text display-inline="yes-display-inline">Before making
any determination of inconsistency, the Director shall—</text>
<clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HBDFA88B16E584D2FAACB91195735906B"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H78171F63794B4266B62C44BCC0530420"><enum>(iv)</enum><text display-inline="yes-display-inline">provide interested parties a reasonable
opportunity to submit written comments to the Office;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H18F84EA24CAA4E1A80E9CD2D757BDDAE"><enum>(v)</enum><text display-inline="yes-display-inline">consider the effect of preemption
on—</text>
<subclause commented="no" display-inline="no-display-inline" id="H29FC43C79A754953A1754C315AC81ECA"><enum>(I)</enum><text display-inline="yes-display-inline">the protection of policyholders and policy
claimants;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB0EC6A87691045A4A92C47C316656055"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2FD7DDEF28DE43D6B54D6DAC37A4000F"><enum>(III)</enum><text display-inline="yes-display-inline">ensuring the integrity and stability of the
United States financial system; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H052362AE0F384B259662688455A5B522"><enum>(IV)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDBA6BF7B63F1493CB6C79C1F9F0C8AE7"><enum>(vi)</enum><text display-inline="yes-display-inline">consider any comments received.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">The Director shall provide the
notifications required under clauses (i), (ii), and (iii)
contemporaneously.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6CD4A58146BA4F65862E3F463F40D678"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9845525D532048388FE9C00499FC5A60"><enum>(C)</enum><header display-inline="yes-display-inline">Notice of determination of
inconsistency</header><text display-inline="yes-display-inline">Upon making any
determination of inconsistency, the Director shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HF23D4155F18B4F76A5D34D87DB16466D"><enum>(i)</enum><text display-inline="yes-display-inline">notify the appropriate State of the
determination and the extent of the inconsistency;</text>
</clause><clause commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="H9768E04A839D497CBB6B22F7787C8AFB"><enum>(iii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H33D648C6FF9B4A65A5DD017BF1D2816D"><enum>(3)</enum><header display-inline="yes-display-inline">Notice of effectiveness</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HDD4F0A4DC33F4234BD0FD407184134B4"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6449676D37E7453C8BBDEF71F2CE7A34"><enum>(B)</enum><text display-inline="yes-display-inline">notify the appropriate State.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5376AE9F42C14AA8900727C091392B0D"><enum>(4)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">No State may enforce a State insurance
measure to the extent that it has been preempted under this subsection.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2347F20C0BF94CDAA93A27D01BAADB9D"><enum>(g)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0C4868364D714592BF5C7A49057CCFC0"><enum>(h)</enum><header display-inline="yes-display-inline">Regulations, policies, and
procedures</header><text display-inline="yes-display-inline">The Secretary may
issue orders, regulations, policies and procedures to implement this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H90ED5755A625416A87BA569173DFFA19"><enum>(i)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3E7AE34BEB064C6E900A4D88F24A9BC2"><enum>(j)</enum><header display-inline="yes-display-inline">Savings provisions</header><text display-inline="yes-display-inline">Nothing in this section shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0E8DECEFF3A74D0A8BBBB8E61E6EFF25"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" 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" display-inline="no-display-inline" id="H9883E66F8C8F4F94B266D02BE7EB292B"><enum>(3)</enum><text display-inline="yes-display-inline">be construed to alter, amend, or limit the
responsibility of the Consumer Financial Protection Agency;</text>
</paragraph><paragraph commented="no" 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 commented="no" display-inline="no-display-inline" id="H6FABA42FB95D449AB57F09523CAC87E2"><enum>(5)</enum><text display-inline="yes-display-inline">affect the preemption of any State
insurance measure otherwise inconsistent with and preempted by Federal
law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H77EBDD8CCE144097997EF765C3755F30"><enum>(k)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA26ED3FE3E544621A3AADA8A3224A1B7"><enum>(l)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8782424590684CDE851DCFF4A6F88D63"><enum>(m)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H797D925E224F4D1FA379EDD5CEBBD96F"><enum>(n)</enum><header display-inline="yes-display-inline">Reports to Congress</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6852C70F27064DCDA40915F5556C3818"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6007051270C24EFB8896FB45EDAD6B0C"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3261D5B630974C86884AD28BD245B81B"><enum>(o)</enum><header display-inline="yes-display-inline">Use of existing resources</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H124AB97323D1420C8BD9DAE03C6897D6"><enum>(p)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section and section
314, the following definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H80B860EDAA564784971D02DA77EAB37B"><enum>(1)</enum><header display-inline="yes-display-inline">Affiliate</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB6ADECA1535341F19A2A35822865799E"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBCFD3E4DBA1446B88054F0210FEE24FC"><enum>(A)</enum><text display-inline="yes-display-inline">is entered into between the United States
and one or more foreign governments, authorities, or regulatory entities;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF47D6CC9B844F098DE73B85EE6AAC3F"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H386676AE56184F098F384C4CA114E3EB"><enum>(3)</enum><header display-inline="yes-display-inline">Determination of
inconsistency</header><text display-inline="yes-display-inline">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 display-inline="yes-display-inline">Federal financial regulatory
agency</header><text display-inline="yes-display-inline">The term
<quote>Federal financial regulatory agency</quote> means the Department of the
Treasury, the Board of Governors of the Federal Reserve System, the Office of
the Comptroller of the Currency, the Office of Thrift Supervision, the
Securities and Exchange Commission, the Commodity Futures Trading Commission,
the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency,
or the National Credit Union Administration.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0250D4D792D1423EB92B12D2B58D29EF"><enum>(5)</enum><header display-inline="yes-display-inline">Insurer</header><text display-inline="yes-display-inline">The term <quote>insurer</quote> means any
person engaged in the business of insurance, including reinsurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFF4A20E067DC4006B1320C1E5EBEC0BF"><enum>(6)</enum><header display-inline="yes-display-inline">Non-united states insurer</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB98F7A3D630456286288FCFFDA22F20"><enum>(7)</enum><header display-inline="yes-display-inline">Office</header><text display-inline="yes-display-inline">The term <quote>Office</quote> means the
Federal Insurance Office established by this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD0CE6799CA1462991FD557BD9221C07"><enum>(8)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the
Secretary of the Treasury.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB43615CB6084127958AFD4DB6F1F429"><enum>(9)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H495E194679454E1684CDC96D6F653431"><enum>(10)</enum><header display-inline="yes-display-inline">State insurance measure</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB6DEACF09D6A4761B80938781430CB8D"><enum>(11)</enum><header display-inline="yes-display-inline">State insurance regulator</header><text display-inline="yes-display-inline">The term <quote>State insurance
regulator</quote> means any State regulatory authority responsible for the
supervision of insurers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H540E394723214EE886ACC2863A3BA331"><enum>(12)</enum><header display-inline="yes-display-inline">United states insurer</header><text display-inline="yes-display-inline">The term <quote>United States
insurer</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3BCA63CB251A4266BE96F72191834C56"><enum>(A)</enum><text display-inline="yes-display-inline">an insurer that is organized under the laws
of a State; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDAC3E9C26AC94AE9B3C35BE4A773F03D"><enum>(B)</enum><text display-inline="yes-display-inline">a United States branch of a non-United
States insurer.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD7B545FB1E144391A2A2553BD6C80F2D"><enum>(q)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated for the Office such sums as may be necessary for
each fiscal year.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H12BCE20DD6C7481789F2E018067A941B" section-type="subsequent-section"><enum>314.</enum><header display-inline="yes-display-inline">Covered agreements</header>
<subsection commented="no" display-inline="no-display-inline" id="H1A47538621FD4725BEE5E4CFE6ECD570"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H92C34FD0687E44ED940958962DC62858"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements for consultation with
Congress</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE592E516C1FC46E8A3778F21F86F400A"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H24263BFBC7E24239B8B0714FFFC1ADEA"><enum>(2)</enum><header display-inline="yes-display-inline">Scope</header><text display-inline="yes-display-inline">The consultation described in paragraph (1)
shall include consultation with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF85FB715230F427E8006D56CCACE975A"><enum>(A)</enum><text display-inline="yes-display-inline">the nature of the agreement;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H771561F4595744098CFC89644B9EEFE1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB68B805830404440A203E8ECDE32D233"><enum>(C)</enum><text display-inline="yes-display-inline">the implementation of the agreement,
including the general effect of the agreement on existing State laws.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFF43617185B8417E9654DD1BAE64AF86"><enum>(c)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" 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 commented="no" display-inline="no-display-inline" id="HADD4780ADB734233A090CDB336FA7DDA"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE6878F07E8624CF08EEF9A4BD524962C"><enum>(b)</enum><header display-inline="yes-display-inline">Duties of Secretary</header><text display-inline="yes-display-inline">Section 321(a) of title 31, United States
Code, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HABF174FA3B2641B8B9361B6C2A960A52"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD29E526C5BCE491F863492EB681A087E"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (8)(C), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H37C0DDFF0A5B43758698C6939E7ADFEA"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H52B7C214714F42F9AE84CF3CA1FE7503" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HBB3C6877AFBC4A789326D36A86572CAB"><enum>(9)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H58A944C32C32495C9AE3581B1B796DC7"><enum>(c)</enum><header display-inline="yes-display-inline">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 bold="off" level="section">Sec. 312. Terrorism and
Financial Intelligence.</toc-entry>
<toc-entry bold="off" level="section">Sec. 313. Federal Insurance
Office.</toc-entry>
<toc-entry bold="off" level="section">Sec. 314. Covered
agreements.</toc-entry>
<toc-entry bold="off" level="section">Sec. 315. Continuing in
office.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5521A01770C2493C9E43F58A20F09597" section-type="subsequent-section"><enum>8003.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2B1E3B0B719140F2A2B78DF55E1D1F23" section-type="subsequent-section"><enum>8004.</enum><header display-inline="yes-display-inline">Study on modernization and improvement of
insurance regulation in the United States</header>
<subsection commented="no" display-inline="no-display-inline" id="H1BD57887D32442FAAFB23B25599F1CE3"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H6C23A0F85FB44364B5F8A636711AD581"><enum>(1)</enum><text display-inline="yes-display-inline">Effective systemic risk regulation with
respect to insurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0F6FE1F3F5444446BE9E18F49882C799"><enum>(2)</enum><text display-inline="yes-display-inline">Strong capital standards and an appropriate
match between capital allocation and liabilities for all risk.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H81737F9D5EC8484E861C3C4608CD1E09"><enum>(3)</enum><text display-inline="yes-display-inline">Meaningful and consistent consumer
protection for insurance products and practices.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H53C5AC8B74BC437284DAD5DEBE8BA117"><enum>(4)</enum><text display-inline="yes-display-inline">Increased national uniformity through
either a Federal charter or effective action by the States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB5E786F26B534684B4A8435A5B05AA86"><enum>(5)</enum><text display-inline="yes-display-inline">Improved regulation of insurance companies
and affiliates on a consolidated basis, including affiliates outside of the
traditional insurance business.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB7F5B626DDE643459FE23F04289D3A0F"><enum>(6)</enum><text display-inline="yes-display-inline">International coordination.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H045C32CCF11A41669D551E8CFCBB2215"><enum>(7)</enum><text display-inline="yes-display-inline">Geographic disparities in access to and
cost of insurance products.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H208AE9F2EB964F1F8F8B91E1C9177CA7"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 1 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 commented="no" display-inline="no-display-inline" id="H97F3165C5C6546A3AD2937F2B75CAEBD"><enum>(1)</enum><text display-inline="yes-display-inline">the results of the study conducted under
subsection (a); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB15F44EE8CE545E3AC93149A35542225"><enum>(2)</enum><text display-inline="yes-display-inline">any Federal or State legislative,
administrative, or regulatory recommendations that the Director considers
appropriate with respect to such study to modernize and improve the system of
insurance regulation in the United States.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFB9509C93A7D4D41A1172574C1F09D54"><enum>(c)</enum><header display-inline="yes-display-inline">Consultation</header><text display-inline="yes-display-inline">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><section commented="no" display-inline="no-display-inline" id="H089B20E6EA434AFFB94303537BC2F4B0" section-type="subsequent-section"><enum>8005.</enum><header display-inline="yes-display-inline">Sense of Congress regarding simplified
mortgage contract summaries</header><text display-inline="no-display-inline">It
is the sense of Congress that mortgage lenders should provide loan applicants
with a simplified summary of their loan contracts, including an easy-to-read
list of the basic loan terms, payment information, the existence of prepayment
penalties or balloon payments, and escrow information.</text>
</section><enum>VII</enum><header display-inline="yes-display-inline">Mortgage Reform and Anti-Predatory Lending
Act</header>
<section commented="no" display-inline="no-display-inline" id="H61B1DC8EC17D4F95881E9D9E9C83D68A" section-type="subsequent-section"><enum>9000.</enum><header display-inline="yes-display-inline">Short title; designation as enumerated
consumer law</header>
<subsection commented="no" display-inline="no-display-inline" id="H14F974D323234C8E9F94BCB11DE1441C"><enum>(a)</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="yes-display-inline">This title may be cited as the
<quote><short-title>Mortgage Reform and Anti-Predatory
Lending Act</short-title></quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE956B5C33EA54B01B4BF00065778564A"><enum>(b)</enum><header display-inline="yes-display-inline">Designation as enumerated consumer law
under the purview of the Consumer Financial Protection Agency</header><text display-inline="yes-display-inline">Subtitles A, B, C, and E and sections 9501,
9502, and 9506, and the amendments made by such subtitles and sections, shall
be enumerated consumer laws, as defined in section 4002(16), and come under the
purview of the Consumer Financial Protection Agency for purposes of title IV,
including the transfer of functions and personnel under subtitle F of title IV
and the savings provisions of such subtitle.</text>
</subsection></section><subtitle commented="no" id="H5BC0C3F032E243D2955CD4261D3111D9" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Residential Mortgage Loan Origination
Standards</header>
<section commented="no" display-inline="no-display-inline" id="HB0F720D24825430C95C2F908ADFD32A4" section-type="subsequent-section"><enum>9001.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">Section 103 of the Truth in Lending Act (15
U.S.C. 1602) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HB9C545715E7341ADBD8978C24E09116F" style="USC">
<subsection commented="no" display-inline="no-display-inline" id="HE7A34029BB694A07AC092FBDE7582B16"><enum>(cc)</enum><header display-inline="yes-display-inline">Definitions relating to mortgage
origination and residential mortgage loans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H51597DB45154459FB1F8623031B959CB"><enum>(1)</enum><header display-inline="yes-display-inline">Commission</header><text display-inline="yes-display-inline">Unless otherwise specified, the term
<term>Commission</term> means the Federal Trade Commission.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B6AD20661B64C8890556D5486E30F85"><enum>(2)</enum><header display-inline="yes-display-inline">Federal banking agencies</header><text display-inline="yes-display-inline">The term <term>Federal banking
agencies</term> means the Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Federal Deposit Insurance Corporation, and the National Credit Union
Administration Board. All rule writing by the <quote>Federal banking
agencies</quote> as designated by the Mortgage Reform and Anti-Predatory
Lending Act will be coordinated through the Financial Institutions Examination
Council in consultation with the Chairman of the State Liaison
Committee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCF7C655F4A284276A14DF6A085B82BD0"><enum>(3)</enum><header display-inline="yes-display-inline">Mortgage originator</header><text display-inline="yes-display-inline">The term <term>mortgage
originator</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1B0DD421AA264CBDA3A238E42332A022"><enum>(A)</enum><text display-inline="yes-display-inline">means any person who, for direct or
indirect compensation or gain, or in the expectation of direct or indirect
compensation or gain—</text>
<clause commented="no" display-inline="no-display-inline" id="H144079E8562742398097A6C2CAEC94B7"><enum>(i)</enum><text display-inline="yes-display-inline">takes a residential mortgage loan
application;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H99A0FD8B9DFB4AA0A21C4B6D19B0EFD1"><enum>(ii)</enum><text display-inline="yes-display-inline">assists a consumer in obtaining or applying
to obtain a residential mortgage loan; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7513F1B4273F47B2BA3D9FCE926CDDF3"><enum>(iii)</enum><text display-inline="yes-display-inline">offers or negotiates terms of a residential
mortgage loan;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE24966E6151743A9A317474A949BD6B2"><enum>(B)</enum><text display-inline="yes-display-inline">includes any person who represents to the
public, through advertising or other means of communicating or providing
information (including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items), that such person can or will provide
any of the services or perform any of the activities described in subparagraph
(A);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2904F7CA75194A3E926053679204121C"><enum>(C)</enum><text display-inline="yes-display-inline">does not include any person who is (i) not
otherwise described in subparagraph (A) or (B) and who performs purely
administrative or clerical tasks on behalf of a person who is described in any
such subparagraph, or (ii) an employee of a retailer of manufactured homes who
is not described in clause (i) or (iii) of subparagraph (A) and who does not
advise a consumer on loan terms (including rates, fees, and other
costs);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H84AF2FCD3B8C40489DB66DE5139DDE3E"><enum>(D)</enum><text display-inline="yes-display-inline">does not include a person or entity that
only performs real estate brokerage activities and is licensed or registered in
accordance with applicable State law, unless such person or entity is
compensated for performing such brokerage activities by a lender, a mortgage
broker, or other mortgage originator or by any agent of such lender, mortgage
broker, or other mortgage originator;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6982739F001D45C78E449F339DCB4E5E"><enum>(E)</enum><text display-inline="yes-display-inline">does not include, with respect to a
residential mortgage loan, a person, estate, or trust that provides mortgage
financing for the sale of 1 property in any 36-month period, provided that such
loan—</text>
<clause commented="no" display-inline="no-display-inline" id="H432195CD2B6949939ABB4E979DF972DA"><enum>(i)</enum><text display-inline="yes-display-inline">is fully amortizing;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCE8A563632B24DB792B05C2C5A0ABA96"><enum>(ii)</enum><text display-inline="yes-display-inline">is with respect to a sale for which the
seller determines in good faith and documents that the buyer has a reasonable
ability to repay the loan;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H08EF3C61316D4A86A2356524FAF470F8"><enum>(iii)</enum><text display-inline="yes-display-inline">has a fixed rate or an adjustable rate that
is adjustable after 5 or more years, subject to reasonable annual and lifetime
limitations on interest rate increases; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0D1EB19D9DF84DC8ACFF90A07C002507"><enum>(iv)</enum><text display-inline="yes-display-inline">meets any other criteria the Federal
banking agencies may prescribe; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD6EC924B02254BF8B897D166F0F59C63"><enum>(F)</enum><text display-inline="yes-display-inline">does not include a servicer or servicer
employees, agents and contractors, including but not limited to those who offer
or negotiate terms of a residential mortgage loan for purposes of
renegotiating, modifying, replacing and subordinating principal of existing
mortgages where borrowers are behind in their payments, in default or have a
reasonable likelihood of being in default or falling behind.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H129DEBBBD1A1487F87F595786824D8A5"><enum>(4)</enum><header display-inline="yes-display-inline">Nationwide Mortgage Licensing System and
Registry</header><text display-inline="yes-display-inline">The term
<term>Nationwide Mortgage Licensing System and Registry</term> has the same
meaning as in the Secure and Fair Enforcement for Mortgage Licensing Act of
2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC9DF4E2BAB104F7E89E639848A5110D4"><enum>(5)</enum><header display-inline="yes-display-inline">Other definitions relating to mortgage
originator</header><text display-inline="yes-display-inline">For purposes of
this subsection, a person <term>assists a consumer in obtaining or applying to
obtain a residential mortgage loan</term> by, among other things, advising on
residential mortgage loan terms (including rates, fees, and other costs),
preparing residential mortgage loan packages, or collecting information on
behalf of the consumer with regard to a residential mortgage loan.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H802EAC50DCFF415197CE0282CB7E7EC3"><enum>(6)</enum><header display-inline="yes-display-inline">Residential mortgage loan</header><text display-inline="yes-display-inline">The term <term>residential mortgage
loan</term> means any consumer credit transaction that is secured by a
mortgage, deed of trust, or other equivalent consensual security interest on a
dwelling or on residential real property that includes a dwelling, other than a
consumer credit transaction under an open end credit plan or, for purposes of
sections 129B and 129C and section 128(a) (16), (17), and (18), and 128(f) and
any regulations promulgated thereunder, an extension of credit relating to a
plan described in section 101(53D) of title 11, United States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H329E28B07AA445239C7E2A73EB3374D5"><enum>(7)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term>, when used
in connection with any transaction or person involved with a residential
mortgage loan, means the Secretary of Housing and Urban Development.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF3C55C918E94B8D9ADECA65F6995B8D"><enum>(8)</enum><header display-inline="yes-display-inline">Securitization vehicle</header><text display-inline="yes-display-inline">The term <term>securitization
vehicle</term> means a trust, corporation, partnership, limited liability
entity, special purpose entity, or other structure that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA0649E16C244E46A2454810C48B55B5"><enum>(A)</enum><text display-inline="yes-display-inline">is the issuer, or is created by the issuer,
of mortgage pass-through certificates, participation certificates,
mortgage-backed securities, or other similar securities backed by a pool of
assets that includes residential mortgage loans; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB6F2BE1ED2C418389A6F99E874E3E29"><enum>(B)</enum><text display-inline="yes-display-inline">holds such loans.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE04E39E021DA4A1183C14A6A30A1B03E"><enum>(9)</enum><header display-inline="yes-display-inline">Securitizer</header><text display-inline="yes-display-inline">The term <term>securitizer</term> means the
person that transfers, conveys, or assigns, or causes the transfer, conveyance,
or assignment of, residential mortgage loans, including through a special
purpose vehicle, to any securitization vehicle, excluding any trustee that
holds such loans solely for the benefit of the securitization vehicle.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB66C79EB1684579BADAEBCF692486FB"><enum>(10)</enum><header display-inline="yes-display-inline">Servicer</header><text display-inline="yes-display-inline">The term <term>servicer</term> has the same
meaning as in section 6(i)(2) of the Real Estate Settlement Procedures Act of
1974.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HD790967C178B4954ABE42F25752BF321" section-type="subsequent-section"><enum>9002.</enum><header display-inline="yes-display-inline">Residential mortgage loan
origination</header>
<subsection commented="no" display-inline="no-display-inline" id="H9BC7A2BC165143F590861C7E87E0C182"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129A the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="H9A4A7A5F4F6A465FA1FBB79B31F01067" style="USC">
<section commented="no" display-inline="no-display-inline" id="H4F98FF02FADD4BB1899665C96A7C708D" section-type="subsequent-section"><enum>129B.</enum><header display-inline="yes-display-inline">Residential mortgage loan
origination</header>
<subsection commented="no" display-inline="no-display-inline" id="H6709EB2E91E147D6A0B40F754E320E78"><enum>(a)</enum><header display-inline="yes-display-inline">Finding and purpose</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3955AEA4A22F4174AD4A2444FBD348FD"><enum>(1)</enum><header display-inline="yes-display-inline">Finding</header><text display-inline="yes-display-inline">The Congress finds that economic
stabilization would be enhanced by the protection, limitation, and regulation
of the terms of residential mortgage credit and the practices related to such
credit, while ensuring that responsible, affordable mortgage credit remains
available to consumers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EFE5AF5255442E9A182ADB8D078C88F"><enum>(2)</enum><header display-inline="yes-display-inline">Purpose</header><text display-inline="yes-display-inline">It is the purpose of this section and
section 129C to assure that consumers are offered and receive residential
mortgage loans on terms that reasonably reflect their ability to repay the
loans and that are understandable and not unfair, deceptive or abusive.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70E5F61485534CFCB2D8AB77917B8D88"><enum>(b)</enum><header display-inline="yes-display-inline">Duty of care</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6694E8D096E2445FB13813774BAC05A3"><enum>(1)</enum><header display-inline="yes-display-inline">Standard</header><text display-inline="yes-display-inline">Subject to regulations prescribed under
this subsection, each mortgage originator shall, in addition to the duties
imposed by otherwise applicable provisions of State or Federal law—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HECB61755316F40CEA4B2A54097C21106"><enum>(A)</enum><text display-inline="yes-display-inline">be qualified and, when required, registered
and licensed as a mortgage originator in accordance with applicable State or
Federal law, including the Secure and Fair Enforcement for Mortgage Licensing
Act of 2008;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEFCB64DEC3BA4FB0AC51FA97C6EE41FF"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to each consumer seeking or
inquiring about a residential mortgage loan, diligently work to present the
consumer with a range of residential mortgage loan products for which the
consumer likely qualifies and which are appropriate to the consumer’s existing
circumstances, based on information known by, or obtained in good faith by, the
originator;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EFAA07B360E489085AB49251EE8CB0A"><enum>(C)</enum><text display-inline="yes-display-inline">make full, complete, and timely disclosure
to each such consumer in writing, the receipt and understanding of which shall
be acknowledged by the signature of the mortgage originator and the consumer,
of—</text>
<clause commented="no" display-inline="no-display-inline" id="H4710F7ABEB484D26AF9B24C066E13FE4"><enum>(i)</enum><text display-inline="yes-display-inline">the comparative costs and benefits of each
residential mortgage loan product offered, discussed, or referred to by the
originator (and such comparative costs and benefits for each such product shall
be presented side by side and the disclosures for each such product shall have
equal prominence);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFBBD92593F4746F78BF978E04FEBE1E1"><enum>(ii)</enum><text display-inline="yes-display-inline">the nature of the originator’s relationship
to the consumer (including the cost of the services to be provided by the
originator and a statement that the mortgage originator is or is not acting as
an agent for the consumer, as the case may be); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H08A4A72F84D84D5198DD5537B53029BE"><enum>(iii)</enum><text display-inline="yes-display-inline">any relevant conflicts of interest between
the originator and the consumer;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H06B8FAAD20874426BA02C23E5368C9C4"><enum>(D)</enum><text display-inline="yes-display-inline">certify to the creditor, with respect to
any transaction involving a residential mortgage loan, that the mortgage
originator has fulfilled all requirements applicable to the originator under
this section with respect to the transaction; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0517ADC2468C4F30BD6AE66955E86561"><enum>(E)</enum><text display-inline="yes-display-inline">include on all loan documents any unique
identifier of the mortgage originator provided by the Nationwide Mortgage
Licensing System and Registry.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5AC05C6979B24B9B8691675307A0B67B"><enum>(2)</enum><header display-inline="yes-display-inline">Clarification of extent of duty to present
range of products and appropriate products</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC34B7A067C874830AF2EC089506D63FF"><enum>(A)</enum><header display-inline="yes-display-inline">No duty to offer products for which
originator is not authorized to take an application</header><text display-inline="yes-display-inline">Paragraph (1)(B) shall not be construed as
requiring—</text>
<clause commented="no" display-inline="no-display-inline" id="H3FE36BB674074498B3F3E28B8FD20872"><enum>(i)</enum><text display-inline="yes-display-inline">a mortgage originator to present to any
consumer any specific residential mortgage loan product that is offered by a
creditor which does not accept consumer referrals from, or consumer
applications submitted by or through, such originator; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4710068D02AD46F68892D4E710F30948"><enum>(ii)</enum><text display-inline="yes-display-inline">a creditor to offer products that the
creditor does not offer to the general public.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H93934652545F403D845D690A2C618810"><enum>(B)</enum><header display-inline="yes-display-inline">Appropriate loan product</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B), a
residential mortgage loan shall be presumed to be appropriate for a consumer
if—</text>
<clause commented="no" display-inline="no-display-inline" id="H8953BECCC41A4A0B82BB05597047779E"><enum>(i)</enum><text display-inline="yes-display-inline">the mortgage originator determines in good
faith, based on then existing information and without undergoing a full
underwriting process, that the consumer has a reasonable ability to repay and,
in the case of a refinancing of an existing residential mortgage loan, receives
a net tangible benefit, as determined in accordance with regulations prescribed
under subsections (a) and (b) of section 129C; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H02ACE210116A4D2192D538D99983DC67"><enum>(ii)</enum><text display-inline="yes-display-inline">the loan does not have predatory
characteristics or effects (such as equity stripping and excessive fees and
abusive terms) as determined in accordance with regulations prescribed under
paragraph (4).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H34955E6CAD5C45A18002827F8A259FA3"><enum>(3)</enum><header display-inline="yes-display-inline">Rules of construction</header><text display-inline="yes-display-inline">No provision of this subsection shall be
construed as—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H91B37752AA674F8588A0CFEF686A50B1"><enum>(A)</enum><text display-inline="yes-display-inline">creating an agency or fiduciary
relationship between a mortgage originator and a consumer if the originator
does not hold himself or herself out as such an agent or fiduciary; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE7354350142E462FA19B8A9EDB129965"><enum>(B)</enum><text display-inline="yes-display-inline">restricting a mortgage originator from
holding himself or herself out as an agent or fiduciary of a consumer subject
to any additional duty, requirement, or limitation applicable to agents or
fiduciaries under any Federal or State law.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD09CDFE02E4B4FCE81FD531F41988E85"><enum>(4)</enum><header display-inline="yes-display-inline">Regulations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H37973E9B0C56489C85E6B61E6C01C92C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Federal banking agencies, in
consultation with the Secretary, and the Commission, shall jointly prescribe
regulations to—</text>
<clause commented="no" display-inline="no-display-inline" id="H6778822F59AD468AA44D9D55E9096900"><enum>(i)</enum><text display-inline="yes-display-inline">further define the duty established under
paragraph (1);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4E72FCB762DE45F888F3EA71C313F48B"><enum>(ii)</enum><text display-inline="yes-display-inline">implement the requirements of this
subsection;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEF0166BBFED04A698E01D52DF2BC15CF"><enum>(iii)</enum><text display-inline="yes-display-inline">establish the time period within which any
disclosure required under paragraph (1) shall be made to the consumer;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0858EA3BAB014A2C85A277127F00BC0C"><enum>(iv)</enum><text display-inline="yes-display-inline">establish such other requirements for any
mortgage originator as such regulatory agencies may determine to be appropriate
to meet the purposes of this subsection.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB8E3011A153A43169971B48E8C97EDB8"><enum>(B)</enum><header display-inline="yes-display-inline">Complementary and nonduplicative
disclosures</header><text display-inline="yes-display-inline">The agencies
referred to in subparagraph (A) shall endeavor to make the required disclosures
to consumers under this subsection complementary and nonduplicative with other
disclosures for mortgage consumers to the extent such efforts—</text>
<clause commented="no" display-inline="no-display-inline" id="HADFC749DDEF64BD1BF78DF392985EACA"><enum>(i)</enum><text display-inline="yes-display-inline">are practicable; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDBAE87A84FEC40C99F20769666DDBC14"><enum>(ii)</enum><text display-inline="yes-display-inline">do not reduce the value of any such
disclosure to recipients of such disclosures.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H464ECBCA37B0402C93358B168D3F3C51"><enum>(5)</enum><header display-inline="yes-display-inline">Compliance procedures
required</header><text display-inline="yes-display-inline">The Federal banking
agencies shall prescribe regulations requiring depository institutions to
establish and maintain procedures reasonably designed to assure and monitor the
compliance of such depository institutions, the subsidiaries of such
institutions, and the employees of such institutions or subsidiaries with the
requirements of this section and the registration procedures established under
section 1507 of the Secure and Fair Enforcement for Mortgage Licensing Act of
2008.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9CB049F61AAD42BBA44290AE5EC90DB3"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to section
129 the following new items:</text>
<quoted-block display-inline="no-display-inline" id="H4C1B62D230834782AC90A312A30FFD95" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">129A. Fiduciary duty of
servicers of pooled residential mortgages.</toc-entry>
<toc-entry bold="off" level="section">129B. Residential mortgage loan
origination.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H57D7DDAFEEDF471E9678EB1EE9371ADA" section-type="subsequent-section"><enum>9003.</enum><header display-inline="yes-display-inline">Prohibition on steering
incentives</header><text display-inline="no-display-inline">Section 129B of the
Truth in Lending Act (as added by section 102(a)) is amended by inserting after
subsection (b) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HAEB4CEB1913346B5B7F116FCB35D57E9" style="USC">
<subsection commented="no" display-inline="no-display-inline" id="H74F2E1875489462EBF4C9F7F675BE64D"><enum>(c)</enum><header display-inline="yes-display-inline">Prohibition on steering incentives</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0D3AE1350AA2440497181A89DAE834AA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For any mortgage loan, the total amount of
direct and indirect compensation from all sources permitted to a mortgage
originator may not vary based on the terms of the loan (other than the amount
of the principal).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA652B48CC3E841F79218684D32B0DD03"><enum>(2)</enum><header display-inline="yes-display-inline">Restructuring of financing origination
fee</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB78315519A684BB0B0A8AD129BBE4ABF"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For any mortgage loan, a mortgage
originator may not arrange for a consumer to finance through rate any
origination fee or cost except bona fide third party settlement charges not
retained by the creditor or mortgage originator.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB831B821198A49B2840FC593C097A71A"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Notwithstanding paragraph subparagraph (A),
a mortgage originator may arrange for a consumer to finance through rate an
origination fee or cost if—</text>
<clause commented="no" display-inline="no-display-inline" id="HEA1A3A73DD654F23959FD18506EA5F7F"><enum>(i)</enum><text display-inline="yes-display-inline">the mortgage originator does not receive
any other compensation from the consumer except the compensation that is
financed through rate; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7D6B2413D43F4F17BCABA9E50D67260C"><enum>(ii)</enum><text display-inline="yes-display-inline">the mortgage is a qualified
mortgage.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1A831ED80E9A46E29581308BA57E580F"><enum>(3)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Federal banking agencies, in
consultation with the Secretary and the Commission, shall jointly prescribe
regulations to prohibit—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E3846BF5453459998FA4E2C3E92F53F"><enum>(A)</enum><text display-inline="yes-display-inline">mortgage originators from steering any
consumer to a residential mortgage loan that—</text>
<clause commented="no" display-inline="no-display-inline" id="H77BB02BA66BE415DA9B1E5BA7CCC2793"><enum>(i)</enum><text display-inline="yes-display-inline">the consumer lacks a reasonable ability to
repay (in accordance with regulations prescribed under section 129C(a));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5AEBDDEA8D2841B1A676011A8148D3BC"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a refinancing of a
residential mortgage loan, does not provide the consumer with a net tangible
benefit (in accordance with regulations prescribed under section 129C(b));
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAA54DCEBC31C40589AB60A36832FDECC"><enum>(iii)</enum><text display-inline="yes-display-inline">has predatory characteristics or effects
(such as equity stripping, excessive fees, or abusive terms);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE6339FADAD04927A5A3C4ACB1307AB0"><enum>(B)</enum><text display-inline="yes-display-inline">mortgage originators from steering any
consumer from a residential mortgage loan for which the consumer is qualified
that is a qualified mortgage (as defined in section 129C(c)(3)) to a
residential mortgage loan that is not a qualified mortgage;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF54C170F5D70438295914F531ACF04FC"><enum>(C)</enum><text display-inline="yes-display-inline">abusive or unfair lending practices that
promote disparities among consumers of equal credit worthiness but of different
race, ethnicity, gender, or age;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB89A7E6CAB4F4F4C90A060C2D7E9EFA3"><enum>(D)</enum><text display-inline="yes-display-inline">mortgage originators from assessing
excessive points and fees (as such term is described under section 103(aa)(4)
of the Truth in Lending Act (15 U.S.C. 1602(aa)(4))) to a consumer for the
origination of a residential mortgage loan based on such consumer’s decision to
finance all or part of the payment through the rate for such points and fees;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H47DF5EBE52E74C5D9C041C012834D118"><enum>(E)</enum><text display-inline="yes-display-inline">mortgage originators from—</text>
<clause commented="no" display-inline="no-display-inline" id="HE8120C0E5B384F62828E10A6AF64858B"><enum>(i)</enum><text display-inline="yes-display-inline">mischaracterizing the credit history of a
consumer or the residential mortgage loans available to a consumer;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3FC40CC736FA4505AFA2058981415429"><enum>(ii)</enum><text display-inline="yes-display-inline">mischaracterizing or suborning the
mischaracterization of the appraised value of the property securing the
extension of credit; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDA44C94DBFEB472CA08BA87B70F7F1FB"><enum>(iii)</enum><text display-inline="yes-display-inline">if unable to suggest, offer, or recommend
to a consumer a loan that is not more expensive than a loan for which the
consumer qualifies, discouraging a consumer from seeking a home mortgage loan
secured by a consumer’s principal dwelling from another mortgage
originator.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE437D082EDBC4084822BEE37D71BCCD5"><enum>(4)</enum><header display-inline="yes-display-inline">Rules of construction</header><text display-inline="yes-display-inline">No provision of this subsection shall be
construed as—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3EE0AD780EDB4309A4F5A8812C21BDF9"><enum>(A)</enum><text display-inline="yes-display-inline">permitting any yield spread premium or
other similar compensation that would, for any mortgage loan, permit the total
amount of direct and indirect compensation from all sources permitted to a
mortgage originator to vary based on the terms of the loan (other than the
amount of the principal);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2E0D8FCBDF0F4869A5C6F00FF39F0A43"><enum>(B)</enum><text display-inline="yes-display-inline">affecting the mechanism for providing the
total amount of direct and indirect compensation permitted to a mortgage
originator;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB9E1C76D12414EAFBAFE5AB531538B0D"><enum>(C)</enum><text display-inline="yes-display-inline">limiting or affecting the amount of
compensation received by a creditor upon the sale of a consummated loan to a
subsequent purchaser;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0FB97A171AEF4DF3B2C2145273AE7DA1"><enum>(D)</enum><text display-inline="yes-display-inline">restricting a consumer’s ability to
finance, at the option of the consumer, including through principal or rate,
any origination fees or costs permitted under this subsection, or the mortgage
originator’s ability to receive such fees or costs (including compensation)
from any person, so long as such fees or costs were limited by agreement with
the consumer and were fully and clearly disclosed to the consumer earlier in
the application process as required by 129B(b)(1)(C)(i) and do not vary based
on the terms of the loan (other than the amount of the principal) or the
consumer’s decision about whether to finance such fees or costs; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAC09C77925094E6B98E7B4BC6C18F494"><enum>(E)</enum><text display-inline="yes-display-inline">prohibiting incentive payments to a
mortgage originator based on the number of residential mortgage loans
originated within a specified period of
time.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H19C60B5BFEC046519D72E88752DB95EB" section-type="subsequent-section"><enum>9004.</enum><header display-inline="yes-display-inline">Liability</header><text display-inline="no-display-inline">Section 129B of the Truth in Lending Act is
amended by inserting after subsection (c) (as added by section 103) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H19F60A1E830E4EBF89BBC20CB3244549" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF77FEBA8597A433AA76211F39A40DF13"><enum>(d)</enum><header display-inline="yes-display-inline">Liability for violations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAE8B1C74D71A4DB8ACFDCEC81272EAEF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of providing a cause of action
for any failure by a mortgage originator to comply with any requirement imposed
under this section and any regulation prescribed under this section,
subsections (a) and (b) of section 130 shall be applied with respect to any
such failure by substituting <term>mortgage originator</term> for
<term>creditor</term> each place such term appears in each such
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE27DD048AF284CFCB487A1EDF08D2A0F"><enum>(2)</enum><header display-inline="yes-display-inline">Maximum</header><text display-inline="yes-display-inline">The maximum amount of any liability of a
mortgage originator under paragraph (1) to a consumer for any violation of this
section shall not exceed the greater of actual damages or an amount equal to 3
times the total amount of direct and indirect compensation or gain accruing to
the mortgage originator in connection with the residential mortgage loan
involved in the violation, plus the costs to the consumer of the action,
including a reasonable attorney’s
fee.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HC7E8E137EBFF4A58A0FBE6545C1C979C" section-type="subsequent-section"><enum>9005.</enum><header display-inline="yes-display-inline">Regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="H42B60E0B3F3E4B528E0CC94718B88B1C"><enum>(a)</enum><header display-inline="yes-display-inline">Discretionary regulatory
authority</header><text display-inline="yes-display-inline">Section 129B of the
Truth in Lending Act is amended by inserting after subsection (d) (as added by
section 104) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9431AD49D43F43FFB35F930D37C214A2" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H52440F4C38204A399314425F0D854334"><enum>(e)</enum><header display-inline="yes-display-inline">Discretionary regulatory authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF32BF4E9E29044F8A31391C292420429"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Federal banking agencies shall, by
regulations issued jointly, prohibit or condition terms, acts or practices
relating to residential mortgage loans that the agencies find to be abusive,
unfair, deceptive, predatory, inconsistent with reasonable underwriting
standards, necessary or proper to ensure that responsible, affordable mortgage
credit remains available to consumers in a manner consistent with the purposes
of this section and section 129B, necessary or proper to effectuate the
purposes of this section and section 129C, to prevent circumvention or evasion
thereof, or to facilitate compliance with such sections, or are not in the
interest of the borrower.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8777C5D6993F42938C18516BD6793EE9"><enum>(2)</enum><header display-inline="yes-display-inline">Application</header><text display-inline="yes-display-inline">The regulations prescribed under paragraph
(1) shall be applicable to all residential mortgage loans and shall be applied
in the same manner as regulations prescribed under section 105.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H839804F6E34B4F81AD173D981046B1E6"><enum>(f)</enum><text display-inline="yes-display-inline">Section 129B and any regulations
promulgated thereunder do not apply to an extension of credit relating to a
plan described in section 101(53D) of title 11, United States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H12C50157060041F88B3414EF8F886534"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The regulations required
or authorized to be prescribed under this subtitle or the amendments made by
this subtitle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H91C5562AE9EF4FA09E811F0C44412FF9"><enum>(1)</enum><text display-inline="yes-display-inline">shall be prescribed in final form before
the end of the 12-month period beginning on the date of the enactment of this
Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9AAA68306551475AB994BE1A3B614B60"><enum>(2)</enum><text display-inline="yes-display-inline">shall take effect not later than 18 months
after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1D4AE9F48AA8448D90169EDAB96EFC0D"><enum>(c)</enum><header display-inline="yes-display-inline">Technical and conforming
amendments</header><text display-inline="yes-display-inline">Section 129(l)(2)
of the Truth in Lending Act (15 U.S.C. 1639(l)(2)) is amended by inserting
<quote>referred to in section 103(aa)</quote> after <quote>loans</quote> each
place such term appears.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HCFCF0594EA9F4E45970AC4C621D2DDD6" section-type="subsequent-section"><enum>9006.</enum><header display-inline="yes-display-inline">Study of shared appreciation
mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H1A415AA798624E5198A25014ED58E9DA"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development, in consultation with the Secretary of the Treasury and other
relevant agencies, shall conduct a comprehensive study to determine prudent
statutory and regulatory requirements sufficient to provide for the widespread
use of shared appreciation mortgages to strengthen local housing markets,
provide new opportunities for affordable homeownership, and enable homeowners
at risk of foreclosure to refinance or modify their mortgages.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8644B63D1E574842BEAAB9DEFA3CD5B2"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than the expiration of the
6-month period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a report to the
Congress on the results of the study, which shall include recommendations for
the regulatory and legislative requirements referred to in subsection
(a).</text>
</subsection></section></subtitle><subtitle commented="no" id="HEC8181C414F24C249BF368D8E549B18A" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Minimum Standards For Mortgages</header>
<section commented="no" display-inline="no-display-inline" id="H206BBC20A89645D3821A588777CD87DA" section-type="subsequent-section"><enum>9101.</enum><header display-inline="yes-display-inline">Ability to repay</header>
<subsection commented="no" display-inline="no-display-inline" id="HA8002DFD7E144921B7904AF4FB1A4F6D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129B (as added by
section 102(a)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H56C224BECDDF4896AA42080CCE204474" style="USC">
<section commented="no" display-inline="no-display-inline" id="H7228B13CA64F4A78830A614EDFD967A8" section-type="subsequent-section"><enum>129C.</enum><header display-inline="yes-display-inline">Minimum standards for residential mortgage
loans</header>
<subsection commented="no" display-inline="no-display-inline" id="HC8BC446B5821440F92E328ECA8D13913"><enum>(a)</enum><header display-inline="yes-display-inline">Ability To repay</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDF47403B0E794CE68C6EA0E0DB2E12BF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In accordance with regulations prescribed
jointly by the Federal banking agencies, in consultation with the Commission,
no creditor may make a residential mortgage loan unless the creditor makes a
reasonable and good faith determination based on verified and documented
information that, at the time the loan is consummated, the consumer has a
reasonable ability to repay the loan, according to its terms, and all
applicable taxes, insurance, and assessments.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6EE1C2F787454F609327006DD128BCFA"><enum>(2)</enum><header display-inline="yes-display-inline">Multiple
loans</header><text display-inline="yes-display-inline">If the creditor knows,
or has reason to know, that 1 or more residential mortgage loans secured by the
same dwelling will be made to the same consumer, the creditor shall make a
reasonable and good faith determination, based on verified and documented
information, that the consumer has a reasonable ability to repay the combined
payments of all loans on the same dwelling according to the terms of those
loans and all applicable taxes, insurance, and assessments.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H80B3A56F6F8A412EB24DCCFC1FA6E26E"><enum>(3)</enum><header display-inline="yes-display-inline">Basis for determination</header><text display-inline="yes-display-inline">A determination under this subsection of a
consumer’s ability to repay a residential mortgage loan shall include
consideration of the consumer’s credit history, current income, expected income
the consumer is reasonably assured of receiving, current obligations,
debt-to-income ratio, employment status, and other financial resources other
than the consumer’s equity in the dwelling or real property that secures
repayment of the loan.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7898D8A8F9144CBB80E4B21DFBC7096"><enum>(4)</enum><header display-inline="yes-display-inline">Income verification</header><text display-inline="yes-display-inline">In order to safeguard against fraudulent
reporting, any consideration of a consumer's income history in making a
determination under this subsection shall include the verification of such
income by the use of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H54D2B81B5F75461FB45E984A6CAEE3DE"><enum>(A)</enum><text display-inline="yes-display-inline">Internal Revenue Service transcripts of tax
returns provided by a third party; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2DCDA20D245E4C06A7EE5F9AC3899A36"><enum>(B)</enum><text display-inline="yes-display-inline">such other similar method that quickly and
effectively verifies income documentation by a third party as the Federal
banking agencies may jointly prescribe.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB989C7123EB4C61B9F924CDBD3988AB"><enum>(5)</enum><header display-inline="yes-display-inline">Nonstandard loans</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H5DB09B2CC99F4AF6ABA3E182A885B27E"><enum>(A)</enum><header display-inline="yes-display-inline">Variable rate loans that defer repayment of
any principal or interest</header><text display-inline="yes-display-inline">For
purposes of determining, under this subsection, a consumer’s ability to repay a
variable rate residential mortgage loan that allows or requires the consumer to
defer the repayment of any principal or interest, the creditor shall use a
fully amortizing repayment schedule.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H641A32A4EDB94908A3024A6C2121C906"><enum>(B)</enum><header display-inline="yes-display-inline">Interest-only loans</header><text display-inline="yes-display-inline">For purposes of determining, under this
subsection, a consumer’s ability to repay a residential mortgage loan that
permits or requires the payment of interest only, the creditor shall use the
payment amount required to amortize the loan by its final maturity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAC97B4E4C55C48978B4D3C47FDC954C5"><enum>(C)</enum><header display-inline="yes-display-inline">Calculation for negative
amortization</header><text display-inline="yes-display-inline">In making any
determination under this subsection, a creditor shall also take into
consideration any balance increase that may accrue from any negative
amortization provision.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H302E059983A740FE843CD4A1EEBFCD19"><enum>(D)</enum><header display-inline="yes-display-inline">Calculation process</header><text display-inline="yes-display-inline">For purposes of making any determination
under this subsection, a creditor shall calculate the monthly payment amount
for principal and interest on any residential mortgage loan by assuming—</text>
<clause commented="no" display-inline="no-display-inline" id="H8B0DD7EB297E4D35A2358A029629BCF5"><enum>(i)</enum><text display-inline="yes-display-inline">the loan proceeds are fully disbursed on
the date of the consummation of the loan;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE9384D6427AE4C6B92F973204A50E728"><enum>(ii)</enum><text display-inline="yes-display-inline">the loan is to be repaid in substantially
equal monthly amortizing payments for principal and interest over the entire
term of the loan with no balloon payment, unless the loan contract requires
more rapid repayment (including balloon payment), in which case the calculation
shall be made (I) in accordance with regulations prescribed by the Federal
banking agencies, with respect to any loan which has an annual percentage rate
that does not exceed the average prime offer rate for a comparable transaction,
as of the date the interest rate is set, by 1.5 or more percentage points for a
first lien residential mortgage loan; and by 3.5 or more percentage points for
a subordinate lien residential mortgage loan; or (II) using the contract’s
repayment schedule, with respect to a loan which has an annual percentage rate,
as of the date the interest rate is set, that is at least 1.5 percentage points
above the average prime offer rate for a first lien residential mortgage loan;
and 3.5 percentage points above the average prime offer rate for a subordinate
lien residential mortgage loan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2547A12FEB744EE7A22D9A59EF5D6422"><enum>(iii)</enum><text display-inline="yes-display-inline">the interest rate over the entire term of
the loan is a fixed rate equal to the fully indexed rate at the time of the
loan closing, without considering the introductory rate.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA645975E71444FD6B2E7607ABC7DD7A8"><enum>(E)</enum><header display-inline="yes-display-inline">Refinance of hybrid loans with current
lender</header><text display-inline="yes-display-inline">In considering any
application for refinancing an existing hybrid loan by the creditor into a
standard loan to be made by the same creditor in any case in which the sole
net-tangible benefit to the mortgagor would be a reduction in monthly payment
and the mortgagor has not been delinquent on any payment on the existing hybrid
loan, the creditor may—</text>
<clause commented="no" display-inline="no-display-inline" id="H976B829779EF4DB9AAD04761F7F13AAD"><enum>(i)</enum><text display-inline="yes-display-inline">consider the mortgagor’s good standing on
the existing mortgage;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD2DAD5241578487FAF3622D215512B84"><enum>(ii)</enum><text display-inline="yes-display-inline">consider if the extension of new credit
would prevent a likely default should the original mortgage reset and give such
concerns a higher priority as an acceptable underwriting practice; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H72796B051E6D42E0A4F73A56CCE7BDF9"><enum>(iii)</enum><text display-inline="yes-display-inline">offer rate discounts and other favorable
terms to such mortgagor that would be available to new customers with high
credit ratings based on such underwriting practice.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9C18CA14369C48C0BAD56BB833C6CEAD"><enum>(6)</enum><header display-inline="yes-display-inline">Fully-indexed rate defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>fully indexed rate</term> means the index rate prevailing on a
residential mortgage loan at the time the loan is made plus the margin that
will apply after the expiration of any introductory interest rates.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3F693D10844F4CBEA78A0A9C02AD2BB2"><enum>(7)</enum><header display-inline="yes-display-inline">Reverse mortgages</header><text display-inline="yes-display-inline">This subsection shall not apply with
respect to any reverse
mortgage</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6AD5DEEA8CC94F669721BF262ADCB18A"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to section
129B (as added by section 102(b)) the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H24981BEE830C4068A2348B06EA6F306C" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">129C. Minimum standards for
residential mortgage
loans.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H744CCB9FAAE84A35B51003333A4EE68E" section-type="subsequent-section"><enum>9102.</enum><header display-inline="yes-display-inline">Net tangible benefit for refinancing of
residential mortgage loans</header><text display-inline="no-display-inline">Section 129C of the Truth in Lending Act (as
added by section 9101(a)) is amended by inserting after subsection (a) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD1978440B42C4823960BDEFF55D5A0C8" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2286287E0E594BA6B32187C639425AC2"><enum>(b)</enum><header display-inline="yes-display-inline">Net tangible benefit for refinancing of
residential mortgage loans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H174EADC68F7F445FA47A70A829DB222F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In accordance with regulations prescribed
under paragraph (3), no creditor may extend credit in connection with any
residential mortgage loan that involves a refinancing of a prior existing
residential mortgage loan unless the creditor reasonably and in good faith
determines, at the time the loan is consummated and on the basis of information
known by or obtained in good faith by the creditor, that the refinanced loan
will provide a net tangible benefit to the consumer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF9EAF0CDD72340BF83E7A54C19884FFE"><enum>(2)</enum><header display-inline="yes-display-inline">Certain loans providing no net tangible
benefit</header><text display-inline="yes-display-inline">A residential
mortgage loan that involves a refinancing of a prior existing residential
mortgage loan shall not be considered to provide a net tangible benefit to the
consumer if the costs of the refinanced loan, including points, fees and other
charges, exceed the amount of any newly advanced principal without any
corresponding changes in the terms of the refinanced loan that are advantageous
to the consumer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA091376A59B470186EFD935F2B12E1F"><enum>(3)</enum><header display-inline="yes-display-inline">Net tangible benefit</header><text display-inline="yes-display-inline">The Federal banking agencies shall jointly
prescribe regulations defining the term <term>net tangible benefit</term> for
purposes of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HCAED6164DE564F77B9D1B8DEAA40123C" section-type="subsequent-section"><enum>9103.</enum><header display-inline="yes-display-inline">Safe harbor and rebuttable
presumption</header><text display-inline="no-display-inline">Section 129C of
the Truth in Lending Act is amended by inserting after subsection (b) (as added
by section 9102) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4D6BEA987F364963BE28C6C4BE1DC481" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE611FD8DBEB149AB9FE54D4EF6A08E4D"><enum>(c)</enum><header display-inline="yes-display-inline">Presumption of ability To repay and net
tangible benefit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H03B178468D544C0D9B5E2B8D1F30950A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any creditor with respect to any
residential mortgage loan, and any assignee or securitizer of such loan, may
presume that the loan has met the requirements of subsections (a) and (b), if
the loan is a qualified mortgage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6479D79786504A0DA3767D7A570F0955"><enum>(2)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E559DA67EE14B0FBC431ED36230DB3D"><enum>(A)</enum><header display-inline="yes-display-inline">Qualified mortgage</header><text display-inline="yes-display-inline">The term <term>qualified mortgage</term>
means any residential mortgage loan—</text>
<clause commented="no" display-inline="no-display-inline" id="HEAF130E406C3465A8BC2A250677BC3DA"><enum>(i)</enum><text display-inline="yes-display-inline">that does not allow a consumer to defer
repayment of principal or interest, or is not otherwise deemed a
<quote>non-traditional mortgage</quote> under guidance, advisories, or
regulations prescribed by the Federal Banking Agencies;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H212D5B3165ED4D558D86E890BC32A481"><enum>(ii)</enum><text display-inline="yes-display-inline">that does not provide for a repayment
schedule that results in negative amortization at any time;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7A82F251EF084B439C8E16705AFFC8D5"><enum>(iii)</enum><text display-inline="yes-display-inline">for which the terms are fully amortizing
and which does not result in a balloon payment, where a <quote>balloon
payment</quote> is a scheduled payment that is more than twice as large as the
average of earlier scheduled payments;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6C75C129C8824661A916497DEE172678"><enum>(iv)</enum><text display-inline="yes-display-inline">which has an annual percentage rate that
does not exceed the average prime offer rate for a comparable transaction, as
of the date the interest rate is set—</text>
<subclause commented="no" display-inline="no-display-inline" id="HC2949D129FB946C280D7C4D56FE5281C"><enum>(I)</enum><text display-inline="yes-display-inline">by 1.5 or more percentage points, in the
case of a first lien residential mortgage loan having a original principal
obligation amount that is equal to or less than the amount of the maximum
limitation on the original principal obligation of mortgage in effect for a
residence of the applicable size, as of the date of such interest rate set,
pursuant to the sixth sentence of section 305(a)(2) the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5E8F8A4CE695412D922B5E64551E518F"><enum>(II)</enum><text display-inline="yes-display-inline">by 2.5 or more percentage points, in the
case of a first lien residential mortgage loan having a original principal
obligation amount that is more than the amount of the maximum limitation on the
original principal obligation of mortgage in effect for a residence of the
applicable size, as of the date of such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2)); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5F4C9741C91745C5B30922C4140E94AE"><enum>(III)</enum><text display-inline="yes-display-inline">by 3.5 or more percentage points, in the
case of a subordinate lien residential mortgage loan;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HC34C5F2A68EF4A178CE7D727BBB80A7C"><enum>(v)</enum><text display-inline="yes-display-inline">for which the income and financial
resources relied upon to qualify the obligors on the loan are verified and
documented;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H80E3189D32B14762B122A35A1BDAA752"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of a fixed rate loan, for which
the underwriting process is based on a payment schedule that fully amortizes
the loan over the loan term and takes into account all applicable taxes,
insurance, and assessments;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H72B5C6704590428681B7A650A415579F"><enum>(vii)</enum><text display-inline="yes-display-inline">in the case of an adjustable rate loan, for
which the underwriting is based on the maximum rate permitted under the loan
during the first seven years, and a payment schedule that fully amortizes the
loan over the loan term and takes into account all applicable taxes, insurance,
and assessments;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8B0C2C85C8514FEEB7ECBA6A72A7A7E2"><enum>(viii)</enum><text display-inline="yes-display-inline">that does not cause the consumer's total
monthly debts, including amounts under the loan, to exceed a percentage
established by regulation of the consumer's monthly gross income or such other
maximum percentage of such income as may be prescribed by regulation under
paragraph (4), and such rules shall also take into consideration the consumer’s
income available to pay regular expenses after payment of all installment and
revolving debt;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8D8579E1AAD443DE9B35C3090877B4B5"><enum>(ix)</enum><text display-inline="yes-display-inline">for which the total points and fees payable
in connection with the loan do not exceed 2 percent of the total loan amount,
where <term>points and fees</term> means points and fees as defined by Section
103(aa)(4) of the Truth in Lending Act (15 U.S.C. 1602(aa)(4)); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1FC2FEE9477049A293107C4EF3F1FB2F"><enum>(x)</enum><text display-inline="yes-display-inline">for which the term of the loan does not
exceed 30 years, except as such term may be extended under paragraph
(4).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H656CEFDA70C7484BAEBADB619547D4F2"><enum>(B)</enum><header display-inline="yes-display-inline">Average prime offer rate</header><text display-inline="yes-display-inline">The term <term>average prime offer
rate</term> means an annual percentage rate that is derived from average
interest rates, points, and other loan pricing terms currently offered to
consumers by a representative sample of creditors for mortgage transactions
that have low risk pricing characteristics.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7DE370F207824CBDAB81F2573179A0F3"><enum>(C)</enum><header display-inline="yes-display-inline">Reverse mortgages</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>qualified mortgage</quote> includes any reverse mortgage that is insured
by the Federal Housing Administration or complies with the condition
established in subparagraph (A)(iv).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27CAB85F5CC2424BA7850CE1EA444F8F"><enum>(3)</enum><header display-inline="yes-display-inline">Publication of average prime offer rate and
APR thresholds</header><text display-inline="yes-display-inline">The
Board—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD6970A2B8B824D548E89D67D7ECF6638"><enum>(A)</enum><text display-inline="yes-display-inline">shall publish, and update at least weekly,
average prime offer rates;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA6D1115E86D049B1AD607E7BEE018BB3"><enum>(B)</enum><text display-inline="yes-display-inline">may publish multiple rates based on varying
types of mortgage transactions; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFE4B61C9755643EC80BF774ED8DBD4E2"><enum>(C)</enum><text display-inline="yes-display-inline">shall adjust the thresholds of 1.50
percentage points in paragraph (2)(A)(iv)(I), 2.50 percentage points in
paragraph (2)(A)(iv)(II), and 3.50 percentage points in paragraph
(2)(A)(v)(III), as necessary to reflect significant changes in market
conditions and to effectuate the purposes of the Mortgage Reform and
Anti-Predatory Lending Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H96FDFFC365004166844BA44A77C3AC2F"><enum>(4)</enum><header display-inline="yes-display-inline">Regulations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBE97F29975D5457591B8A1593C73E22B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Federal banking agencies shall jointly
prescribe regulations to carry out the purposes of this subsection.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEF052811BCF34C66951036AD890CFA43"><enum>(B)</enum><header display-inline="yes-display-inline">Revision of safe harbor criteria</header>
<clause commented="no" display-inline="no-display-inline" id="H46D0A4E3A7E546A388C963E6BD13F03B"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Federal banking agencies may jointly
prescribe regulations that revise, add to, or subtract from the criteria that
define a qualified mortgage upon a finding that such regulations are necessary
or proper to ensure that responsible, affordable mortgage credit remains
available to consumers in a manner consistent with the purposes of this
section, necessary and appropriate to effectuate the purposes of this section
and section 129B, to prevent circumvention or evasion thereof, or to facilitate
compliance with such sections.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H01FC79A94AFE49B0A7DCCEE4E71C7EE2"><enum>(ii)</enum><header display-inline="yes-display-inline">Loan definition</header><text display-inline="yes-display-inline">The following agencies shall, in
consultation with the Federal banking agencies, prescribe rules defining the
types of loans they insure, guarantee or administer, as the case may be, that
are Qualified Mortgages for purposes of subsection (c)(1)(A) upon a finding
that such rules are consistent with the purposes of this section and section
129B, to prevent circumvention or evasion thereof, or to facilitate compliance
with such sections—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7F2E27B1D2984746AF4A00452FD556BF"><enum>(I)</enum><text display-inline="yes-display-inline">The Department of Housing and Urban
Development, with regard to mortgages insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBF25E96D7C2C4AD0BF61F57E24A22418"><enum>(II)</enum><text display-inline="yes-display-inline">The Secretary of Veterans Affairs, with
regard to a loan made or guaranteed by the Secretary of Veterans
Affairs;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD1775D1E18294F3EA0F9FE70488843ED"><enum>(III)</enum><text display-inline="yes-display-inline">The Secretary of Agriculture, with regard
loans guaranteed by the Secretary of Agriculture pursuant to 42 U.S.C.
1472(h);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HDA4A612FCBA742B7B8892C37A185391A"><enum>(IV)</enum><text display-inline="yes-display-inline">The Federal Housing Finance Agency, with
regard to loans meeting the conforming loan standards of the Federal National
Mortgage Corporation or the Federal Home Loan Mortgage Corporation; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBB37C056AEFA4287B1A67A4EF7E3B3FB"><enum>(V)</enum><text display-inline="yes-display-inline">The Rural Housing Service, with regard to
loans insured by the Rural Housing
Service.</text>
</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HC9A82D3A3CD54E3688700B9E34FD026D" section-type="subsequent-section"><enum>9104.</enum><header display-inline="yes-display-inline">Liability</header><text display-inline="no-display-inline">Section 129C of the Truth in Lending Act is
amended by inserting after subsection (c) (as added by section 9103) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HFDC184D9EA424750BB6E000EAA8F26AC" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD35E29D043CA484A9F50CD47B2268357"><enum>(d)</enum><header display-inline="yes-display-inline">Liability for violations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6C3BEC88ED0E4BFBA52685C939A922DD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F14B06A0262439BB380552B9CFF9B4F"><enum>(A)</enum><header display-inline="yes-display-inline">Rescission</header><text display-inline="yes-display-inline">In addition to any other liability under
this title for a violation by a creditor of subsection (a) or (b) (for example
under section 130) and subject to the statute of limitations in paragraph (9),
a civil action may be maintained against a creditor for a violation of
subsection (a) or (b) with respect to a residential mortgage loan for the
rescission of the loan, and such additional costs as the obligor may have
incurred as a result of the violation and in connection with obtaining a
rescission of the loan, including a reasonable attorney’s fee.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC07D9C79EDF149A49A799FB79E2512F9"><enum>(B)</enum><header display-inline="yes-display-inline">Cure</header><text display-inline="yes-display-inline">A creditor shall not be liable for
rescission under subparagraph (A) with respect to a residential mortgage loan
if, no later than 90 days after the receipt of notification from the consumer
that the loan violates subsection (a) or (b), the creditor, acting in good
faith, a cure.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66D92F6ECF174A248EEEADE62F4DCA77"><enum>(2)</enum><header display-inline="yes-display-inline">Limited assignee and securitizer
liability</header><text display-inline="yes-display-inline">Notwithstanding
sections 125(e) and 131 and except as provided in paragraph (3), a civil action
which may be maintained against a creditor with respect to a residential
mortgage loan for a violation of subsection (a) or (b) may be maintained
against any assignee or securitizer of such residential mortgage loan, who has
acted in good faith, for the following liabilities only:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFCFC89E0DE36488C8282638B00BFD44A"><enum>(A)</enum><text display-inline="yes-display-inline">Rescission of the loan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H565D6187FE7B4F78AF4649CE3F78A93D"><enum>(B)</enum><text display-inline="yes-display-inline">Such additional costs as the obligor may
have incurred as a result of the violation and in connection with obtaining a
rescission of the loan, including a reasonable attorney’s fee.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2265F35763484D85A4705D1BA0C7B76C"><enum>(3)</enum><header display-inline="yes-display-inline">Assignee and securitizer
exemption</header><text display-inline="yes-display-inline">No assignee or
securitizer of a residential mortgage loan that has exercised reasonable due
diligence in complying with the requirements of subsections (a) and (b),
consistent with reasonable due diligence practices prescribed by the Federal
banking agencies, shall be liable under paragraph (2) with respect to such loan
if, no later than 90 days after the receipt of notification from the consumer
that the loan violates subsection (a) or (b), the assignee or securitizer
provides a cure so that the loan satisfies the requirements of subsections (a)
and (b).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE462D24FCBFC4198A65DF14519C9A747"><enum>(4)</enum><header display-inline="yes-display-inline">Absent parties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4BEF97F8ADFB48AF9635E4D2FF6350E9"><enum>(A)</enum><header display-inline="yes-display-inline">Absent creditor</header><text display-inline="yes-display-inline">Notwithstanding the exemption provided in
paragraph (3), if the creditor with respect to a residential mortgage loan made
in violation of subsection (a) or (b) has ceased to exist as a matter of law or
has filed for bankruptcy protection under title 11, United States Code, or has
had a receiver, conservator, or liquidating agent appointed, a consumer may
maintain a civil action against an assignee to cure the residential mortgage
loan, plus the costs and reasonable attorney’s fees incurred in obtaining such
remedy.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED6210D254F04D9B903E770D546CCD82"><enum>(B)</enum><header display-inline="yes-display-inline">Absent creditor and assignee</header><text display-inline="yes-display-inline">Notwithstanding the exemption provided in
paragraph (3), if the creditor with respect to a residential mortgage loan made
in violation of subsection (a) or (b) and each assignee of such loan have
ceased to exist as a matter of law or have filed for bankruptcy protection
under title 11, United States Code, or have had receivers, conservators, or
liquidating agents appointed, the consumer may maintain the civil action
referred to in subparagraph (A) against the securitizer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA22ADF35575B4324B02057C19FE05CB1"><enum>(5)</enum><header display-inline="yes-display-inline">Cure defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>cure</term> means, with respect to a residential mortgage loan that
violates subsection (a) or (b), the modification or refinancing, at no cost to
the consumer, of the loan to provide terms that satisfy the requirements of
subsections (a) and (b) and the payment of such additional costs as the obligor
may have incurred in connection with obtaining a cure of the loan, including a
reasonable attorney’s fee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H446C59EA03B84A0798896F1E4B9BC7F8"><enum>(6)</enum><header display-inline="yes-display-inline">Disagreement over cure</header><text display-inline="yes-display-inline">If any creditor, assignee, or securitizer
and a consumer fail to reach agreement on a cure with respect to a residential
mortgage loan that violates subsection (a) or (b), or the consumer fails to
accept a cure proffered by a creditor, assignee, or securitizer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8577CDF50014D7EAF18878F36ABF6DA"><enum>(A)</enum><text display-inline="yes-display-inline">the creditor, assignee, or securitizer may
provide the cure; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE54BD4BA4D3F4FD497A5D540CE6D8155"><enum>(B)</enum><text display-inline="yes-display-inline">the consumer may challenge the adequacy of
the cure during the 6-month period beginning when the cure is provided.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">If the consumer’s challenge, under
this paragraph, of a cure is successful, the creditor, assignee, or securitizer
shall be liable to the consumer for rescission of the loan and such additional
costs under paragraph (2).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4FE5FA3A954E499FBFEE1F2150FAADC3"><enum>(7)</enum><header display-inline="yes-display-inline">Inability to provide or obtain
rescission</header><text display-inline="yes-display-inline">If a creditor,
assignee, or securitizer cannot provide, or a consumer cannot obtain,
rescission under paragraph (1) or (2), the liability of such creditor,
assignee, or securitizer shall be met by providing the financial equivalent of
a rescission, together with such additional costs as the obligor may have
incurred as a result of the violation and in connection with obtaining a
rescission of the loan, including a reasonable attorney’s fee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9BBDF965025A4D8087211234DCF5C724"><enum>(8)</enum><header display-inline="yes-display-inline">No class actions against assignee or
securitizer under paragraph <enum-in-header>(2)</enum-in-header></header><text display-inline="yes-display-inline">Only individual actions may be brought
against an assignee or securitizer of a residential mortgage loan for a
violation of subsection (a) or (b).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47545474A7974BEEB8F3EBB8E8517AB5"><enum>(9)</enum><header display-inline="yes-display-inline">Statute of limitations</header><text display-inline="yes-display-inline">The liability of a creditor, assignee, or
securitizer under this subsection shall apply in any original action against a
creditor under paragraph (1) or an assignee or securitizer under paragraph (2)
which is brought before—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H66B4980014394D2DB8AE5D9ADE1EA4EF"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of any residential mortgage
loan other than a loan to which subparagraph (B) applies, the end of the 3-year
period beginning on the date the loan is consummated; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC906B82364084A71A1179C96AE137C5B"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a residential mortgage loan
that provides for a fixed interest rate for an introductory period and then
resets or adjusts to a variable rate or that provides for a nonamortizing
payment schedule and then converts to an amortizing payment schedule, the
earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="HF3BC5DBC67834573AF30AA8C58ADE310"><enum>(i)</enum><text display-inline="yes-display-inline">the end of the 1-year period beginning on
the date of such reset, adjustment, or conversion; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD9FB40AA337A4D5F8F3C2F974A3C34DD"><enum>(ii)</enum><text display-inline="yes-display-inline">the end of the 6-year period beginning on
the date the loan is consummated.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2DE3AE2CD5742D898A12F0E3E576C85"><enum>(10)</enum><header display-inline="yes-display-inline">Trustees, pools, and investors in pools
excluded</header><text display-inline="yes-display-inline">In the case of
residential mortgage loans acquired or aggregated for the purpose of including
such loans in a pool of assets held for the purpose of issuing or selling
instruments representing interests in such pools including through a
securitization vehicle, the terms <term>assignee</term> and
<term>securitizer</term>, as used in this section, do not include the
securitization vehicle, any trustee that holds such loans solely for the
benefit of the securitization vehicle, the pools of such loans or any original
or subsequent purchaser of any interest in the securitization vehicle or any
instrument representing a direct or indirect interest in such pool.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB56CF16E6B9F4436A229C6195C2EB4EB"><enum>(e)</enum><header display-inline="yes-display-inline">Obligation of securitizers, and
preservation of borrower remedies</header>
<paragraph commented="no" display-inline="no-display-inline" id="H670C12D4A93E4A3C97B31E1B34F83FCB"><enum>(1)</enum><header display-inline="yes-display-inline">Obligation to retain access</header><text display-inline="yes-display-inline">Any securitizer of a residential mortgage
loan sold or to be sold as part of a securitization vehicle shall, in any
document or contract providing for the transfer, conveyance, or the
establishment of such securitization vehicle, reserve the right and preserve
the ability—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2919D3FC68EE46FC888382F875D775CA"><enum>(A)</enum><text display-inline="yes-display-inline">to identify and obtain access to any such
loan;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H33546FCAFF7A49BCA573198B0D48E4B6"><enum>(B)</enum><text display-inline="yes-display-inline">to acquire any such loan in the event of a
violation of subsection (a) or (b) of this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H13442D8DE82041148009A531A03DB76F"><enum>(C)</enum><text display-inline="yes-display-inline">to provide to the consumer any and all
remedies provided for under this title for any violation of this title.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9EC5D5ADD87341D097D60A3DBEB0878C"><enum>(2)</enum><header display-inline="yes-display-inline">Additional damages</header><text display-inline="yes-display-inline">Any creditor, assignee, or securitizer of a
residential mortgage loan that is subject to a remedy under subsection (d) and
has failed to comply with paragraph (1) shall be subject to additional
exemplary or punitive damages not to exceed the original principal balance of
such loan.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H589C5A10D42B4A3F91A8A6EC4C124311"><enum>(3)</enum><header display-inline="yes-display-inline">Contact information notice</header><text display-inline="yes-display-inline">The servicer with respect to a residential
mortgage loan shall provide a written notice to a consumer identifying the name
and contact information of the creditor or any assignee or securitizer who
should be contacted by the consumer for any reason concerning the consumer’s
rights with respect to the loan. Such notice shall be provided—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H07F7A8C387D847C592460BDBCD1E4601"><enum>(A)</enum><text display-inline="yes-display-inline">upon request of the consumer;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77ECCFBC643848B59BA7330455E49FAD"><enum>(B)</enum><text display-inline="yes-display-inline">whenever there is a change in ownership of
a residential mortgage loan; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DF48212C4D1498CA51D815F1E8BB236"><enum>(C)</enum><text display-inline="yes-display-inline">on a regular basis, not less than
annually.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD51C8739FB8F4788A5C137271418875C"><enum>(f)</enum><header display-inline="yes-display-inline">Rules To establish process</header><text display-inline="yes-display-inline">The Board shall promulgate rules to govern
the rescission process established for violations of subsections (a) and (b) of
this section. Such rules shall provide that notice given to a servicer or
holder is sufficient notice regardless of the identity of the party or the
parties liable under this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HA21FE085BBE240238C67A04345DF1042" section-type="subsequent-section"><enum>9105.</enum><header display-inline="yes-display-inline">Defense to foreclosure</header><text display-inline="no-display-inline">Section 129C of the Truth in Lending Act is
amended by inserting after subsection (f) (as added by section 9104) the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H151460AC31D9489C80C2E9D2BE403DED" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB2FA257C793B4301A006CFA0CE45DA99"><enum>(g)</enum><header display-inline="yes-display-inline">Defense to foreclosure</header><text display-inline="yes-display-inline">Notwithstanding any other provision of
law—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H02D2CC60F23842BD95373CEE51556EDA"><enum>(1)</enum><text display-inline="yes-display-inline">when the holder of a residential mortgage
loan or anyone acting for such holder initiates a judicial or nonjudicial
foreclosure—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA82B3E7C630482E88115DC53E29289B"><enum>(A)</enum><text display-inline="yes-display-inline">a consumer who has the right to rescind
under this section with respect to such loan against the creditor or any
assignee or securitizer may assert such right as a defense to foreclosure or
counterclaim to such foreclosure against the holder, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H972CB29A701543C79C5542A0079CB120"><enum>(B)</enum><text display-inline="yes-display-inline">if the foreclosure proceeding begins after
the end of the period during which a consumer may bring an action for
rescission under subsection (d) and the consumer would have had a valid basis
for such an action if it had been brought before the end of such period, the
consumer may seek actual damages incurred by reason of the violation which gave
rise to the right of rescission, together with costs of the action, including a
reasonable attorney’s fee against the creditor or any assignee or securitizer;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFEEA9430CCC648F7A8D776D00533EDB1"><enum>(2)</enum><text display-inline="yes-display-inline">such holder or anyone acting for such
holder or any other applicable third party may sell, transfer, convey, or
assign a residential mortgage loan to a creditor, any assignee, or any
securitizer, or their designees, subject to the rights of the consumer
described in this subsection, to effect a rescission or
cure.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H4CD810E306364693969116AB00E217D1" section-type="subsequent-section"><enum>9106.</enum><header display-inline="yes-display-inline">Additional standards and
requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="HE70BB76FFE5F4F5BB98B97BAA7D5D133"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 129C of the Truth in Lending Act is
amended by inserting after subsection (g) (as added by section 9105) the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H4F73FA0E68364CDC8DB1CFCFF1E178AB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H72377B48BBAF41A29D642BEB390BD356"><enum>(h)</enum><header display-inline="yes-display-inline">Prohibition on certain prepayment
penalties</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5C3C6A29E99846259BE77227C1B12269"><enum>(1)</enum><header display-inline="yes-display-inline">Prohibited on certain loans</header><text display-inline="yes-display-inline">A residential mortgage loan that is not a
<term>qualified mortgage</term> may not contain terms under which a consumer
must pay a prepayment penalty for paying all or part of the principal after the
loan is consummated. For purposes of this subsection, a <term>qualified
mortgage</term> may not include a residential mortgage loan that has an
adjustable rate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBB5EAA6569B4FF1BF10ADDDCCF4FEB0"><enum>(2)</enum><header display-inline="yes-display-inline">Phased-out penalties on qualified
mortgages</header><text display-inline="yes-display-inline">A qualified
mortgage (as defined in subsection (c)) may not contain terms under which a
consumer must pay a prepayment penalty for paying all or part of the principal
after the loan is consummated in excess of the following limitations:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H302D479037214207AC855D3B420FF99D"><enum>(A)</enum><text display-inline="yes-display-inline">During the 1-year period beginning on the
date the loan is consummated, the prepayment penalty shall not exceed an amount
equal to 3 percent of the outstanding balance on the loan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF36DA4E631834F1787A5EE76AB13E50F"><enum>(B)</enum><text display-inline="yes-display-inline">During the 1-year period beginning after
the period described in subparagraph (A), the prepayment penalty shall not
exceed an amount equal to 2 percent of the outstanding balance on the
loan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H301FDDE769D044CDB893234760536DB9"><enum>(C)</enum><text display-inline="yes-display-inline">During the 1-year period beginning after
the 1-year period described in subparagraph (B), the prepayment penalty shall
not exceed an amount equal to 1 percent of the outstanding balance on the
loan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8F45063B9C5A4B33BA13BC760F7C8C8C"><enum>(D)</enum><text display-inline="yes-display-inline">After the end of the 3-year period
beginning on the date the loan is consummated, no prepayment penalty may be
imposed on a qualified mortgage.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H012B850F6BE84CC4AA3192C8A0584ED3"><enum>(3)</enum><header display-inline="yes-display-inline">Option for no prepayment penalty
required</header><text display-inline="yes-display-inline">A creditor may not
offer a consumer a residential mortgage loan product that has a prepayment
penalty for paying all or part of the principal after the loan is consummated
as a term of the loan without offering the consumer a residential mortgage loan
product that does not have a prepayment penalty as a term of the loan.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF8DB297A66BB4270BDF98D18772335D2"><enum>(i)</enum><header display-inline="yes-display-inline">Single premium credit insurance
prohibited</header><text display-inline="yes-display-inline">No creditor may
finance, directly or indirectly, in connection with any residential mortgage
loan or with any extension of credit under an open end consumer credit plan
secured by the principal dwelling of the consumer (other than a reverse
mortgage), any credit life, credit disability, credit unemployment or credit
property insurance, or any other accident, loss-of-income, life or health
insurance, or any payments directly or indirectly for any debt cancellation or
suspension agreement or contract, except that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H87AF91FA99784BB4AB40A88E717F3F94"><enum>(1)</enum><text display-inline="yes-display-inline">insurance premiums or debt cancellation or
suspension fees calculated and paid in full on a monthly basis shall not be
considered financed by the creditor; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D0E7D178A7C484C84B2D28BDA06C345"><enum>(2)</enum><text display-inline="yes-display-inline">this subsection shall not apply to credit
unemployment insurance for which the unemployment insurance premiums are
reasonable, the creditor receives no direct or indirect compensation in
connection with the unemployment insurance premiums, and the unemployment
insurance premiums are paid pursuant to another insurance contract and not paid
to an affiliate of the creditor.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3C6D6AFD0AB9450E8945CB242CB66EBD"><enum>(j)</enum><header display-inline="yes-display-inline">Arbitration</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD3F6F1037B0246039C6ED2E77A5CD4C8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No residential mortgage loan and no
extension of credit under an open end consumer credit plan secured by the
principal dwelling of the consumer, other than a reverse mortgage, may include
terms which require arbitration or any other nonjudicial procedure as the
method for resolving any controversy or settling any claims arising out of the
transaction.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB6EAA7969FF4E8F9CBB6C3AE7A5A98B"><enum>(2)</enum><header display-inline="yes-display-inline">Post-controversy agreements</header><text display-inline="yes-display-inline">Subject to paragraph (3), paragraph (1)
shall not be construed as limiting the right of the consumer and the creditor,
any assignee, or any securitizer to agree to arbitration or any other
nonjudicial procedure as the method for resolving any controversy at any time
after a dispute or claim under the transaction arises.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC60FC1BF4A24A829B5B59ECF6445070"><enum>(3)</enum><header display-inline="yes-display-inline">No waiver of statutory cause of
action</header><text display-inline="yes-display-inline">No provision of any
residential mortgage loan or of any extension of credit under an open end
consumer credit plan secured by the principal dwelling of the consumer (other
than a reverse mortgage), and no other agreement between the consumer and the
creditor relating to the residential mortgage loan or extension of credit
referred to in paragraph (1), shall be applied or interpreted so as to bar a
consumer from bringing an action in an appropriate district court of the United
States, or any other court of competent jurisdiction, pursuant to section 130
or any other provision of law, for damages or other relief in connection with
any alleged violation of this section, any other provision of this title, or
any other Federal law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE19DFBFC96A64CFF9FCEC42ABC22D6FF"><enum>(k)</enum><header display-inline="yes-display-inline">Mortgages with negative
amortization</header><text display-inline="yes-display-inline">No creditor may
extend credit to a borrower in connection with a consumer credit transaction
under an open or closed end consumer credit plan secured by a dwelling or
residential real property that includes a dwelling, other than a reverse
mortgage, that provides or permits a payment plan that may, at any time over
the term of the extension of credit, result in negative amortization unless,
before such transaction is consummated—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3449247CDC9F4F93963C01F22CD85514"><enum>(1)</enum><text display-inline="yes-display-inline">the creditor provides the consumer with a
statement that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1190BD2154514241A8A48EBA96A61EEE"><enum>(A)</enum><text display-inline="yes-display-inline">the pending transaction will or may, as the
case may be, result in negative amortization;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC91D5E3B1CBB496D92A30730543FD3C0"><enum>(B)</enum><text display-inline="yes-display-inline">describes negative amortization in such
manner as the Federal banking agencies shall prescribe;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H48BAE981943742F887B90C5C9F3C7E77"><enum>(C)</enum><text display-inline="yes-display-inline">negative amortization increases the
outstanding principal balance of the account; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0624EFE0946144C89862D7E2F5CDDCAF"><enum>(D)</enum><text display-inline="yes-display-inline">negative amortization reduces the
consumer’s equity in the dwelling or real property; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA22B10F1039A47048DF0A8B85865FA19"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a first-time borrower with
respect to a residential mortgage loan that is not a qualified mortgage, the
first-time borrower provides the creditor with sufficient documentation to
demonstrate that the consumer received homeownership counseling from
organizations or counselors certified by the Secretary of Housing and Urban
Development as competent to provide such
counseling.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0C43A2EB67BC46C1AD2AF5D9889D042C"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment relating to
enforcement</header><text display-inline="yes-display-inline">Section 108(a) of
the Truth in Lending Act (15 U.S.C. 1607(a)) is amended by inserting after
paragraph (6) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCA24E4F906C0485D85AECBE31A920B47" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H586602FB57114D0894880E0FAD500F02"><enum>(7)</enum><text display-inline="yes-display-inline">sections 21B and 21C of the Securities
Exchange Act of 1934, in the case of a broker or dealer, other than a
depository institution, by the Securities and Exchange
Commission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5140A9CE66624A0BB57C63ABBE99D3E6"><enum>(c)</enum><header display-inline="yes-display-inline">Protection against loss of anti-deficiency
protection</header><text display-inline="yes-display-inline">Section 129C of
the Truth in Lending Act is amended by inserting after subsection (k) (as added
by subsection (a) of this section) the following new subsection (and designated
succeeding subsections accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H01D44015A68E44EEA8C5CA0D5F5C268C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H08D2E5EE635E49098E199AF80DE4669C"><enum>(l)</enum><header display-inline="yes-display-inline">Protection against loss of anti-deficiency
protection</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA9F64E61CBD7457AA4D234FFA9123910"><enum>(1)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>anti-deficiency law</quote> means the law of any State which provides
that, in the event of foreclosure on the residential property of a consumer
securing a mortgage, the consumer is not liable, in accordance with the terms
and limitations of such State law, for any deficiency between the sale price
obtained on such property through foreclosure and the outstanding balance of
the mortgage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H758DA46A05B146BBABBDF9C4B4B45D86"><enum>(2)</enum><header display-inline="yes-display-inline">Notice at time of
consummation</header><text display-inline="yes-display-inline">In the case of
any residential mortgage loan that is, or upon consummation will be, subject to
protection under an anti-deficiency law, the creditor or mortgage originator
shall provide a written notice to the consumer describing the protection
provided by the anti-deficiency law and the significance for the consumer of
the loss of such protection before such loan is consummated.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCB53FA7C7B62496A84A2F1341D4391E8"><enum>(3)</enum><header display-inline="yes-display-inline">Notice before refinancing that would cause
loss of protection</header><text display-inline="yes-display-inline">In the
case of any residential mortgage loan that is subject to protection under an
anti-deficiency law, if a creditor or mortgage originator provides an
application to a consumer, or receives an application from a consumer, for any
type of refinancing for such loan that would cause the loan to lose the
protection of such anti-deficiency law, the creditor or mortgage originator
shall provide a written notice to the consumer describing the protection
provided by the anti-deficiency law and the significance for the consumer of
the loss of such protection before any agreement for any such refinancing is
consummated.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4D80A97F27754B458A4573F7F99A0E1E"><enum>(d)</enum><header display-inline="yes-display-inline">Policy regarding acceptance of partial
payment</header><text display-inline="yes-display-inline">Section 129C of the
Truth in Lending Act is amended by inserting after subsection (l) (as added by
subsection (c)) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4C74C1F5C39F4119A1BC317F52BDC377" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6AB3811F0EA341EEB4943626ED2C39A4"><enum>(m)</enum><header display-inline="yes-display-inline">Policy regarding acceptance of partial
payment</header><text display-inline="yes-display-inline">In the case of any
residential mortgage loan, a creditor shall disclose prior to settlement or, in
the case of a person becoming a creditor with respect to an existing
residential mortgage loan, at the time such person becomes a creditor—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEF7EFCDA283748FCB44781E11896919A"><enum>(1)</enum><text display-inline="yes-display-inline">the creditor’s policy regarding the
acceptance of partial payments; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H46928F87F4474C6DA799A092230653A8"><enum>(2)</enum><text display-inline="yes-display-inline">if partial payments are accepted, how such
payments will be applied to such mortgage and if such payments will be placed
in
escrow.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3CDB4AFBE7E448A18CD97FD0772E3D92" section-type="subsequent-section"><enum>9107.</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="no-display-inline">Except as otherwise expressly provided in
section 129B or 129C of the Truth in Lending Act (as added by this subtitle),
no provision of such section 129B or 129C shall be construed as superseding,
repealing, or affecting any duty, right, obligation, privilege, or remedy of
any person under any other provision of the Truth in Lending Act or any other
provision of Federal or State law.</text>
</section><section commented="no" display-inline="no-display-inline" id="HD030AC73F6FF41F0A295F73968610D8A" section-type="subsequent-section"><enum>9108.</enum><header display-inline="yes-display-inline">Effect on State laws</header>
<subsection commented="no" display-inline="no-display-inline" id="H92CA052DEA184B3AB6CEB57489954271"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b),
section 129C(d) of the Truth in Lending Act (as added by section 9104) shall
supersede any State law to the extent that it provides additional remedies
against any assignee, securitizer, or securitization vehicle for a violation of
subsection (a) or (b) of section 129C of such Act or any other State law the
terms of which address the specific subject matter of subsection (a)
(determination of ability to repay) or (b) (requirement of a net tangible
benefit) of section 129C of such Act, and the remedies described in section
129C(d) shall constitute the sole remedies against any assignee, securitizer,
or securitization vehicle for such violations.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H677F51AEA9674C28BCDA3E60AC1987D4"><enum>(b)</enum><header display-inline="yes-display-inline">Rules of construction</header><text display-inline="yes-display-inline">No provision of this section shall be
construed as limiting—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H279CD068628642DF9D4E49A07411F3AE"><enum>(1)</enum><text display-inline="yes-display-inline">the application of any State law, or the
availability of remedies under such law, against a creditor for a particular
residential mortgage loan regardless of whether such creditor also acts as an
assignee, securitizer, or securitization vehicle for such loan;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8730872F15E845DC9F2D68DBCF2F3B91"><enum>(2)</enum><text display-inline="yes-display-inline">the application of any State law, or the
availability of remedies under such law, against an assignee, securitizer, or
securitization vehicle under State law, other than a provision of such law the
terms of which address the specific subject matter of subsection (a)
(determination of ability to repay) or (b) (requirement of a net tangible
benefit) of section 129C of such Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A08E872852E47108A7C241174D97618"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1A39E4F3CEAC46CC955A1D69B98339F7"><enum>(A)</enum><text display-inline="yes-display-inline">the application of any State law, or the
availability of remedies under such law, against an assignee, securitizer or
securitization vehicle for its participation in or direction of the credit or
underwriting decisions of a creditor relating to the making of a residential
mortgage loan; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE554F6C0633747DDB528ABB1C542119A" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">the ability of a consumer to assert any
rights against or obtain any remedies from an assignee, securitizer or
securitization vehicle with respect to a residential mortgage loan as a defense
to foreclosure under section 129C(g);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAAA2043F66D342FD923298D23CDB3009"><enum>(4)</enum><text display-inline="yes-display-inline">the availability of any equitable remedies,
including injunctive relief, under State law; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA827F2FCC0C8457A864453620046843D"><enum>(5)</enum><text display-inline="yes-display-inline">notwithstanding paragraph (2), the
availability of any remedies under State law against any assignee, securitizer
or securitization vehicle that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4F7C284E74F246848E2DC5CB22A3875A"><enum>(A)</enum><text display-inline="yes-display-inline">are in addition to those remedies provided
for in section 129C; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E954063FB7244D8963C875FA562409D"><enum>(B)</enum><text display-inline="yes-display-inline">were in effect on the date of enactment of
this Act.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEA2B621A48524CE9BF7620B2526773A8" section-type="subsequent-section"><enum>9109.</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="no-display-inline">Regulations required or authorized to be
prescribed under this subtitle or the amendments made by this subtitle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8190851DDDCF4415BDEBFD07F204864A"><enum>(1)</enum><text display-inline="yes-display-inline">shall be prescribed in final form before
the end of the 12-month period beginning on the date of the enactment of this
Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1BDFA26EC8214F0FB697DD7DE0C1E96C"><enum>(2)</enum><text display-inline="yes-display-inline">shall take effect not later than 18 months
after the date of the enactment of this Act.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H25C2E11BE8AA49C6A3F2067DAC30825F" section-type="subsequent-section"><enum>9110.</enum><header display-inline="yes-display-inline">Amendments to civil liability
provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="HA63DB1923D014BD59D52F1D9FF45676A"><enum>(a)</enum><header display-inline="yes-display-inline">Increase in amount of civil money penalties
for certain violations</header><text display-inline="yes-display-inline">Section 130(a)(2) of the Truth in Lending
Act (15 U.S.C. 1640(a)(2)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC5966CBA97D743F4ADD0AEB297A89AB6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>$100</quote> and
inserting <quote>$200</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H90BBA745916B4FC9BEB3A153396AE223"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>$1,000</quote> and
inserting <quote>$2,000</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H163E7259DF2949E69561333B07E34BCC"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>$500,000</quote> and
inserting <quote>$1,000,000</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H937625EDDE214E04BC0DE14ED8CC4886"><enum>(b)</enum><header display-inline="yes-display-inline">Statute of limitations extended for section
129 violations</header><text display-inline="yes-display-inline">Section 130(e)
of the Truth in Lending Act (15 U.S.C. 1640(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCB678B24EF864206A07FD0DF52FAA31E"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>Any action</quote> and inserting <quote>Except as provided in the
subsequent sentence, any action</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE734C0D97994C73AF2D6F76B5242539"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after the first sentence the
following new sentence: <quote>Any action under this section with respect to
any violation of section 129 may be brought in any United States district
court, or in any other court of competent jurisdiction, before the end of the
3-year period beginning on the date of the occurrence of the
violation.</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4BAC08AC1CD84EB78F816233ED4731F8" section-type="subsequent-section"><enum>9111.</enum><header display-inline="yes-display-inline">Lender rights in the context of borrower
deception</header><text display-inline="no-display-inline">Section 130 of the
Truth in Lending Act is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H08A5BA1690C540358D751432FBB9F519" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HDBDCA24CA224476789BCCA58D2FB7CB7"><enum>(k)</enum><header display-inline="yes-display-inline">Exemption from liability and rescission in
case of borrower fraud or deception</header><text display-inline="yes-display-inline">In addition to any other remedy available
by law or contract, no creditor, assignee, or securitizer shall be liable to an
obligor under this section, nor shall it be subject to the right of rescission
of any obligor under 129B, if such obligor, or co-obligor, knowingly, or
willfully and with actual knowledge furnished material information known to be
false for the purpose of obtaining such residential mortgage
loan.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H94C53AA3AC8A4A3C94269A22D09D4112" section-type="subsequent-section"><enum>9112.</enum><header display-inline="yes-display-inline">Six-month notice required before reset of
hybrid adjustable rate mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H2A9EDD92F3D14C0584DBCBFBC1A5A480"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 128 the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="HFACBBCC4AFB0414ABE0AE3061A345630" style="USC">
<section commented="no" display-inline="no-display-inline" id="HBCB905E49E204BABBD6BBF58727848E8" section-type="subsequent-section"><enum>128A.</enum><header display-inline="yes-display-inline">Reset of hybrid adjustable rate
mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H182A72BE18BD4D5286EFAAB6BFC4E89A"><enum>(a)</enum><header display-inline="yes-display-inline">Hybrid adjustable rate mortgages
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>hybrid adjustable rate mortgage</term> means a consumer
credit transaction secured by the consumer's principal residence with a fixed
interest rate for an introductory period that adjusts or resets to a variable
interest rate after such period.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA8AA5FF541154C17850088A400861E5A"><enum>(b)</enum><header display-inline="yes-display-inline">Notice of Reset and
alternatives</header><text display-inline="yes-display-inline">During the
1-month period that ends 6 months before the date on which the interest rate in
effect during the introductory period of a hybrid adjustable rate mortgage
adjusts or resets to a variable interest rate or, in the case of such an
adjustment or resetting that occurs within the first 6 months after
consummation of such loan, at consummation, the creditor or servicer of such
loan shall provide a written notice, separate and distinct from all other
correspondence to the consumer, that includes the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H61F6D54A6D4E4A96BA393E97CAB3D39F"><enum>(1)</enum><text display-inline="yes-display-inline">Any index or formula used in making
adjustments to or resetting the interest rate and a source of information about
the index or formula.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H57DAF267B15441829674791A2ACA0012"><enum>(2)</enum><text display-inline="yes-display-inline">An explanation of how the new interest rate
and payment would be determined, including an explanation of how the index was
adjusted, such as by the addition of a margin.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC22CDD173AB642AA8DF0B263E481BCDA"><enum>(3)</enum><text display-inline="yes-display-inline">A good faith estimate, based on accepted
industry standards, of the creditor or servicer of the amount of the monthly
payment that will apply after the date of the adjustment or reset, and the
assumptions on which this estimate is based.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6D061C23D6C34F39965B23BB18370390"><enum>(4)</enum><text display-inline="yes-display-inline">A list of alternatives consumers may pursue
before the date of adjustment or reset, and descriptions of the actions
consumers must take to pursue these alternatives, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFB3445E3BCCF4175839D95A631771F43"><enum>(A)</enum><text display-inline="yes-display-inline">refinancing;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1DCD6DFFCC8495985FC3ABC381BE2E2"><enum>(B)</enum><text display-inline="yes-display-inline">renegotiation of loan terms;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC13F9E041C3C4260A59B32D7CF50849C"><enum>(C)</enum><text display-inline="yes-display-inline">payment forbearances; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H36DB8824E6AB43BCB9D0C5512602B902"><enum>(D)</enum><text display-inline="yes-display-inline">pre-foreclosure sales.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H02E4EE025386458EAAEFBFD2936C9B2B"><enum>(5)</enum><text display-inline="yes-display-inline">The names, addresses, telephone numbers,
and Internet addresses of counseling agencies or programs reasonably available
to the consumer that have been certified or approved and made publicly
available by the Secretary of Housing and Urban Development or a State housing
finance authority (as defined in section 1301 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H420BE263591641F6BBAD32AA77831E98"><enum>(6)</enum><text display-inline="yes-display-inline">The address, telephone number, and Internet
address for the State housing finance authority (as so defined) for the State
in which the consumer
resides.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC0AD647570DB426C834465CA4D9D32B9"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to section
128 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H2B6169290FED4013BEB1185617A1F64E" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">128A. Reset of hybrid
adjustable rate
mortgages.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5EB4B8684DDC4D6FBF388B72D6D083F8" section-type="subsequent-section"><enum>9113.</enum><header display-inline="yes-display-inline">Required disclosures</header><text display-inline="no-display-inline">Section 128(a) of Truth in Lending Act (15
U.S.C. 1638(a)) is amended by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HA9EF8D6EFA024E56BB27D14EE9E4F928" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD7F75D9D27CC46B3AE4273477F7EBCE7"><enum>(16)</enum><text display-inline="yes-display-inline">In the case of a variable rate residential
mortgage loan for which an escrow or impound account will be established for
the payment of all applicable taxes, insurance, and assessments—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H08EEE8C0BABB4F38BD77B49B9DAEEB13"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of initial monthly payment due
under the loan for the payment of principal and interest, and the amount of
such initial monthly payment including the monthly payment deposited in the
account for the payment of all applicable taxes, insurance, and assessments;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFB72A3516954F719663C11B7ADC137C"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of the fully indexed monthly
payment due under the loan for the payment of principal and interest, and the
amount of such fully indexed monthly payment including the monthly payment
deposited in the account for the payment of all applicable taxes, insurance,
and assessments.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8A42EDEA2FC45E088E5CB9BE8561936"><enum>(17)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan,
the aggregate amount of settlement charges for all settlement services provided
in connection with the loan, the amount of charges that are included in the
loan and the amount of such charges the borrower must pay at closing, the
approximate amount of the wholesale rate of funds in connection with the loan,
and the aggregate amount of other fees or required payments in connection with
the loan.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E4A86763850417D88E7C0036884DEC1"><enum>(18)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan,
the aggregate amount of fees paid to the mortgage originator in connection with
the loan, the amount of such fees paid directly by the consumer, and any
additional amount received by the originator from the creditor.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE315D96E843640948FCEEF6F0F84B844"><enum>(19)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan,
the total amount of interest that the consumer will pay over the life of the
loan as a percentage of the principal of the loan. Such amount shall be
computed assuming the consumer makes each monthly payment in full and on-time,
and does not make any
over-payments.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HB80D94626B1E422DBCB8514823F51437" section-type="subsequent-section"><enum>9114.</enum><header display-inline="yes-display-inline">Disclosures required in monthly statements
for residential mortgage loans</header><text display-inline="no-display-inline">Section 128 of the Truth in Lending Act (15
U.S.C. 1638) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H64637865D73D429AAF44DA50E92A0F59" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H4912A0F5C2204C36AE05700EF2B1EADA"><enum>(f)</enum><header display-inline="yes-display-inline">Periodic statements for residential
mortgage loans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H125E98B4E8164C00BE199F594615AF04"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The creditor, assignee, or servicer with
respect to any residential mortgage loan shall transmit to the obligor, for
each billing cycle, a statement setting forth each of the following items, to
the extent applicable, in a conspicuous and prominent manner:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6036E160585A43008A58F11D13692D94"><enum>(A)</enum><text display-inline="yes-display-inline">The amount of the principal obligation
under the mortgage.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51349C2C3A164DCEAB41ADFF84D93CCD"><enum>(B)</enum><text display-inline="yes-display-inline">The current interest rate in effect for the
loan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFE0BA42B1A964EB3BB14DC243B2CFBD9"><enum>(C)</enum><text display-inline="yes-display-inline">The date on which the interest rate may
next reset or adjust.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD1353A3936194D5F9B649A738D455997"><enum>(D)</enum><text display-inline="yes-display-inline">The amount of any prepayment fee to be
charged, if any.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H29EB404E649C4F4A845FABE0F25BDF91"><enum>(E)</enum><text display-inline="yes-display-inline">A description of any late payment
fees.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA9DA812D9DB24CDF832F443EC8DF9453"><enum>(F)</enum><text display-inline="yes-display-inline">A telephone number and electronic mail
address that may be used by the obligor to obtain information regarding the
mortgage.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6ABC2E594F4446BB8990FC749B5116C9"><enum>(G)</enum><text display-inline="yes-display-inline">The names, addresses, telephone numbers,
and Internet addresses of counseling agencies or programs reasonably available
to the consumer that have been certified or approved and made publicly
available by the Secretary of Housing and Urban Development or a State housing
finance authority (as defined in section 1301 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3B83B3F1E58C48169062D1DDFB4DBD9D"><enum>(H)</enum><text display-inline="yes-display-inline">Such other information as the Board may
prescribe in regulations.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H67890C4818D04DF2BE6F5D639F43DDEE"><enum>(2)</enum><header display-inline="yes-display-inline">Development and use of standard
form</header><text display-inline="yes-display-inline">The Federal banking
agencies shall jointly develop and prescribe a standard form for the disclosure
required under this subsection, taking into account that the statements
required may be transmitted in writing or
electronically.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H7232F494637B4234A87EFFF560685952" section-type="subsequent-section"><enum>9115.</enum><header display-inline="yes-display-inline">Legal assistance for foreclosure-related
issues</header>
<subsection commented="no" display-inline="no-display-inline" id="H5E6EDD81F94148C483FAE6643D323381"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development (hereafter in this section referred to as the
<term>Secretary</term> shall establish a program for making grants for
providing a full range of foreclosure legal assistance to low- and
moderate-income homeowners and tenants related to home ownership preservation,
home foreclosure prevention, and tenancy associated with home
foreclosure.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6D9B339FC9BA49EA9B9352B5E8A6882B"><enum>(b)</enum><header display-inline="yes-display-inline">Competitive allocation</header><text display-inline="yes-display-inline">The Secretary shall allocate amounts made
available for grants under this section to State and local legal organizations
on the basis of a competitive process. For purposes of this subsection
<term>State and local legal organizations</term> are those State and local
organizations whose primary business or mission is to provide legal
assistance.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB1DB60CA4D1D4C829BB07D89EA4FC925"><enum>(c)</enum><header display-inline="yes-display-inline">Priority to certain areas</header><text display-inline="yes-display-inline">In allocating amounts in accordance with
subsection (b), the Secretary shall give priority consideration to State and
local legal organizations that are operating in the 100 metropolitan
statistical areas (as that term is defined by the Director of the Office of
Management and Budget) with the highest home foreclosure rates.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5D71DD27B3D849488A5E414ECBC5072F"><enum>(d)</enum><header display-inline="yes-display-inline">Legal assistance</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB3415C6283F4469D8E9792E11A7A1072"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any State or local legal organization that
receives financial assistance pursuant to this section may use such amounts
only to assist—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA9E4901EC5F04561A29F8D739B3ED3F4"><enum>(A)</enum><text display-inline="yes-display-inline">homeowners of owner-occupied homes with
mortgages in default, in danger of default, or subject to or at risk of
foreclosure; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E61781B2C9A488488C414F432F6752F"><enum>(B)</enum><text display-inline="yes-display-inline">tenants at risk of or subject to eviction
as a result of foreclosure of the property in which such tenant resides.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2F2A446940C6428187D0F8913F865CA2"><enum>(2)</enum><header display-inline="yes-display-inline">Commence use within 90 days</header><text display-inline="yes-display-inline">Any State or local legal organization that
receives financial assistance pursuant to this section shall begin using any
financial assistance received under this section within 90 days after receipt
of the assistance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCC7A45F25AA642A3A57B3773856F95A1"><enum>(3)</enum><header display-inline="yes-display-inline">Prohibition on class actions</header><text display-inline="yes-display-inline">No funds provided to a State or local legal
organization under this section may be used to support any class action
litigation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE414102D64824DB9927C81619CC7E740"><enum>(4)</enum><header display-inline="yes-display-inline">Limitation on legal
assistance</header><text display-inline="yes-display-inline">Legal assistance
funded with amounts provided under this section shall be limited to
mortgage-related default, eviction, or foreclosure proceedings, without regard
to whether such foreclosure is judicial or nonjudicial.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27524674CBCB43C48ACC19DA1AA63D9A"><enum>(5)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Notwithstanding section
9116, this subsection shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC1F65FDB969D42ADA78C5158F1FDEE38"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation on distribution of
assistance</header>
<paragraph commented="no" display-inline="no-display-inline" id="H95185798D73A4D1D93F861AAB8BA42F4"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">None of the amounts made available under
this section shall be distributed to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE5DA6B77921C4193B956D6F714974311"><enum>(A)</enum><text display-inline="yes-display-inline">any organization which has been convicted
for a violation under Federal law relating to an election for Federal office;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H45E97D133F7C421D9B3284F49B4D7788"><enum>(B)</enum><text display-inline="yes-display-inline">any organization which employs applicable
individuals.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF6663971B5F44D98A226A29649D3A80A"><enum>(2)</enum><header display-inline="yes-display-inline">Definition of applicable
individuals</header><text display-inline="yes-display-inline">In this
subsection, the term <quote>applicable individual</quote> means an individual
who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H181CAA534B9E498BBB68D809998EC868"><enum>(A)</enum><text display-inline="yes-display-inline">is—</text>
<clause commented="no" display-inline="no-display-inline" id="H7DB8A6F3F3E84635B5BA624B82F3CBFD"><enum>(i)</enum><text display-inline="yes-display-inline">employed by the organization in a permanent
or temporary capacity;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H34763B04536D405CB2F21321E4EF39C2"><enum>(ii)</enum><text display-inline="yes-display-inline">contracted or retained by the organization;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H96E57E0F552B4FBB815F1A09DA0FAD7F"><enum>(iii)</enum><text display-inline="yes-display-inline">acting on behalf of, or with the express or
apparent authority of, the organization; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H00175DC4EEBB48D98C81242B1B79EB75"><enum>(B)</enum><text display-inline="yes-display-inline">has been convicted for a violation under
Federal law relating to an election for Federal office.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB632F27041D9419BA679CB0332E8437D"><enum>(f)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary $35,000,000 for each of fiscal
years 2009 through 2012 for grants under this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBD95517AE7DF4B24A42301E744AB1EF4" section-type="subsequent-section"><enum>9116.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">The amendments made by
this subtitle shall apply to transactions consummated on or after the effective
date of the regulations specified in section 9109.</text>
</section><section commented="no" display-inline="no-display-inline" id="HD10A906F819F42448981DD26CDC8D329" section-type="subsequent-section"><enum>9117.</enum><header display-inline="yes-display-inline">Report by the GAO</header>
<subsection commented="no" display-inline="no-display-inline" id="H7A120717CCAF4DF0AEE5D5AA85CE6C7E"><enum>(a)</enum><header display-inline="yes-display-inline">Report required</header><text display-inline="yes-display-inline">The Comptroller General shall conduct a
study to determine the effects the enactment of this Act will have on the
availability and affordability of credit for consumers, small businesses,
homebuyers, and mortgage lending, including the effect—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDCAC038A06444F8C8A2579425E9A9D4B"><enum>(1)</enum><text display-inline="yes-display-inline">on the mortgage market for mortgages that
are not within the safe harbor provided in the amendments made by this
subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5D3FF3AB65654B11994E86E8935C5DFD"><enum>(2)</enum><text display-inline="yes-display-inline">on the ability of prospective homebuyers to
obtain financing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2B04E47757754286BC94F08C31F8AD9B"><enum>(3)</enum><text display-inline="yes-display-inline">on the ability of homeowners facing resets
or adjustments to refinance—for example, do they have fewer refinancing options
due to the unavailability of certain loan products that were available before
the enactment of this Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8496AE045E31403A871E621C5647795D"><enum>(4)</enum><text display-inline="yes-display-inline">on minorities’ ability to access affordable
credit compared with other prospective borrowers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEDE6B908FB3340DFAC06F79DD27268DC"><enum>(5)</enum><text display-inline="yes-display-inline">on home sales and construction;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE097D237C4D45D493DE96022EAE22AB"><enum>(6)</enum><text display-inline="yes-display-inline">of extending the rescission right, if any,
on adjustable rate loans and its impact on litigation;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H660088E0A6504AFBBF2BCB5A5C29347F"><enum>(7)</enum><text display-inline="yes-display-inline">of State foreclosure laws and, if any, an
investor’s ability to transfer a property after foreclosure;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0BD0EB07D803424DB6A739DD69C634B6"><enum>(8)</enum><text display-inline="yes-display-inline">of expanding the existing provisions of the
Home Ownership and Equity Protection Act of 1994;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H405959FE1F1648E8B04F983A13A355C0"><enum>(9)</enum><text display-inline="yes-display-inline">of prohibiting prepayment penalties on
high-cost mortgages; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7FADCA98857745AC894F780A21A35D4F"><enum>(10)</enum><text display-inline="yes-display-inline">of establishing counseling services under
the Department of Housing and Urban Development and offered through the Office
of Housing Counseling.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B3508C86E3548BB9303FEDBAAC6FBC1"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Before the end of the 1-year period
beginning on the date of the enactment of this Act, the Comptroller General
shall submit a report to the Congress containing the findings and conclusions
of the Comptroller General with respect to the study conducted pursuant to
subsection (a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H84286EC8AEF64CC3AC70D81EB973A289"><enum>(c)</enum><header display-inline="yes-display-inline">Examination related to certain credit risk
retention provisions</header><text display-inline="yes-display-inline">The
report required by subsection (b) shall also include an analysis by the
Comptroller General of the effect on the capital reserves and funding of
lenders of credit risk retention provisions for non-qualified mortgages,
including an analysis of the exceptions and adjustments authorized in section
129C(l)(3)(A) of the Truth in Lending Act and a recommendation on whether a
uniform standard is needed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC0D21C89C1CC44E8B1DFA56ABC6B9AEE"><enum>(d)</enum><header display-inline="yes-display-inline">Analysis of credit risk retention
provisions</header><text display-inline="yes-display-inline">The report
required by subsection (b) shall also include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H045AD7B1C9A54AE0B0BF28D90E0463A2"><enum>(1)</enum><text display-inline="yes-display-inline">an analysis by the Comptroller General of
whether the credit risk retention provisions have significantly reduced risks
to the larger credit market of the repackaging and selling of securitized loans
on a secondary market; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF49DC7437F5B48ADA979336989E35C12"><enum>(2)</enum><text display-inline="yes-display-inline">recommendations to the Congress on
adjustments that should be made, or additional measures that should be
undertaken.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HE6243D1760F443BF80096BCD591733A9" section-type="subsequent-section"><enum>9118.</enum><header display-inline="yes-display-inline">State Attorney General enforcement
authority</header><text display-inline="no-display-inline">Section 130(e) of
the Truth in Lending Act (15 U.S.C. 1640(e)) is amended by striking
<quote>section 129 may also</quote> and inserting <quote>section 129, 129B, or
129C of this Act may also</quote>.</text>
</section></subtitle><subtitle commented="no" id="H631420F37D8F46AF972BB08A7FB35596" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">High-Cost Mortgages</header>
<section commented="no" display-inline="no-display-inline" id="HB44D601A438C4971A7647780C65ABC56" section-type="subsequent-section"><enum>9201.</enum><header display-inline="yes-display-inline">Definitions relating to high-cost
mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="HEE90AB5CA2F04C72BA6A8028A1A6814D"><enum>(a)</enum><header display-inline="yes-display-inline">High-cost mortgage defined</header><text display-inline="yes-display-inline">Section 103(aa) of the Truth in Lending Act
(15 U.S.C. 1602(aa)) is amended by striking all that precedes paragraph (2) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H1BC118C0203741E8B0A13CDF5C324B73" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1AC744C0779B4F0DA8B1B0D43D7C5337"><enum>(aa)</enum><header display-inline="yes-display-inline">High-cost mortgage</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF22EADC227B44A779B88E3D63AA1ED78"><enum>(1)</enum><header display-inline="yes-display-inline">Definition</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8CB395BBD8B4A79A6517E4669EC97D6"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>high-cost mortgage</term>,
and a mortgage referred to in this subsection, means a consumer credit
transaction that is secured by the consumer's principal dwelling, other than a
reverse mortgage transaction, if—</text>
<clause commented="no" display-inline="no-display-inline" id="H0DFE05B6C4D64B33A49AE94CD73FCD8D"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a credit transaction
secured—</text>
<subclause commented="no" display-inline="no-display-inline" id="HFC99CEEF90394E41BEA22DFE0BF71D41"><enum>(I)</enum><text display-inline="yes-display-inline">by a first mortgage on the consumer’s
principal dwelling, the annual percentage rate at consummation of the
transaction will exceed by more than 6.5 percentage points (8.5 percentage
points, if the dwelling is personal property and the transaction is for less
than $50,000) the average prime offer rate, as defined in section
129C(c)(2)(B), for a comparable transaction; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H32D7BA364751400EA22CEDC4C1D136B0"><enum>(II)</enum><text display-inline="yes-display-inline">by a subordinate or junior mortgage on the
consumer’s principal dwelling, the annual percentage rate at consummation of
the transaction will exceed by more than 8.5 percentage points the average
prime offer rate, as defined in section 129C(c)(2)(B), for a comparable
transaction;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H59F79F1E1530400B816CA60082A680B3"><enum>(ii)</enum><text display-inline="yes-display-inline">the total points and fees payable in
connection with the transaction exceed—</text>
<subclause commented="no" display-inline="no-display-inline" id="HFFB561F2DEDA448EA72749717EE0BCD4"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a transaction for $20,000 or
more, 5 percent of the total transaction amount; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9C6F23C05298457AB8C72033D99957A1"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a transaction for less than
$20,000, the lesser of 8 percent of the total transaction amount or $1,000 (or
such other dollar amount as the Board shall prescribe by regulation); or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HEA68AB3A63D74DFA8F748D7CF289E0C4"><enum>(iii)</enum><text display-inline="yes-display-inline">the credit transaction documents permit the
creditor to charge or collect prepayment fees or penalties more than 36 months
after the transaction closing or such fees or penalties exceed, in the
aggregate, more than 2 percent of the amount prepaid.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD075AE9F0E546C8ACA964466DCAA67C"><enum>(B)</enum><header display-inline="yes-display-inline">Introductory rates taken into
account</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A)(i), the annual percentage rate of interest shall be determined
based on the following interest rate:</text>
<clause commented="no" display-inline="no-display-inline" id="H0D93DA1979944F4F9C5E001C09F0B701"><enum>(i)</enum><text display-inline="yes-display-inline">In the case of a fixed-rate transaction in
which the annual percentage rate will not vary during the term of the loan, the
interest rate in effect on the date of consummation of the transaction.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H225B3646594D4CBF922DD1D7F539557D"><enum>(ii)</enum><text display-inline="yes-display-inline">In the case of a transaction in which the
rate of interest varies solely in accordance with an index, the interest rate
determined by adding the index rate in effect on the date of consummation of
the transaction to the maximum margin permitted at any time during the
transaction agreement.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6DF4AB05CD8C4B9B989473865E382DA3"><enum>(iii)</enum><text display-inline="yes-display-inline">In the case of any other transaction in
which the rate may vary at any time during the term of the loan for any reason,
the interest charged on the transaction at the maximum rate that may be charged
during the term of the
transaction.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H52A6BC6943D14316A60B9758E0904A57"><enum>(b)</enum><header display-inline="yes-display-inline">Adjustment of percentage
points</header><text display-inline="yes-display-inline">Section 103(aa)(2) of
the Truth in Lending Act (15 U.S.C. 1602(aa)(2)) is amended by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H126433012AF94BFE996B4DF1ECAEC097" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H14AC01AA879448A2A5D5F4326A924178"><enum>(B)</enum><text display-inline="yes-display-inline">An increase or decrease under subparagraph
(A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H31EDFC6CF81C48C4B0B6FC71D342C739"><enum>(i)</enum><text display-inline="yes-display-inline">may not result in the number of percentage
points referred to in paragraph (1)(A)(i)(I) being less than 6 percentage
points or greater than 10 percentage points; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H11CCD816139F4BFD8E1E37BDEA16A2EC"><enum>(ii)</enum><text display-inline="yes-display-inline">may not result in the number of percentage
points referred to in paragraph (1)(A)(i)(II) being less than 8 percentage
points or greater than 12 percentage
points.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEA6454D557FF47BCB486BFF38FD0C236"><enum>(c)</enum><header display-inline="yes-display-inline">Points and fees defined</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF2A804A92927451C8205C02BAA7F1B3E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 103(aa)(4) of the Truth in Lending
Act (15 U.S.C. 1602(aa)(4)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6A792E8340CE4CCB9BD655868CD40501"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H7AC31C930F9743898AE4ED999D5D597A" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HFD17845A8498415A87D8D69379AEBBBB"><enum>(B)</enum><text display-inline="yes-display-inline">all compensation paid directly or
indirectly by a consumer or creditor to a mortgage originator from any source,
including a mortgage originator that originates a loan in the name of the
creditor in a table-funded
transaction;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED0DDB1B2F82406D902099797E716B03"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (C)(ii), by inserting
<quote>except where applied to the charges set forth in section 106(e)(1) where
a creditor may receive indirect compensation solely as a result of obtaining
distributions of profits from an affiliated entity based on its ownership
interest in compliance with section 8(c)(4) of the Real Estate Settlement
Procedures Act of 1974</quote> before the semicolon at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7B5DE7CA3FC7457CA1A772C5AE978E97"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (C)(iii), by striking
<quote>; and</quote> and inserting <quote>, except as provided for in clause
(ii);</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H45BC71143E834668BD18A750F3C80F60"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (D) as
subparagraph (G); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H113B9540162946A5A7CF0AD67001DF55"><enum>(E)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (C) the
following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HAE68A1AD701E43DC9C2C3AA42FFB8752" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H566F98048783496BB2FD10A57EFC06F5"><enum>(D)</enum><text display-inline="yes-display-inline">premiums or other charges payable at or
before closing for any credit life, credit disability, credit unemployment, or
credit property insurance, or any other accident, loss-of-income, life or
health insurance, or any payments directly or indirectly for any debt
cancellation or suspension agreement or contract, except that insurance
premiums or debt cancellation or suspension fees calculated and paid in full on
a monthly basis shall not be considered financed by the creditor;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F6D2FF971A94F7EA12D9B259C843A78"><enum>(E)</enum><text display-inline="yes-display-inline">except as provided in subsection (cc), the
maximum prepayment fees and penalties which may be charged or collected under
the terms of the credit transaction;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D8C8E940EF14D2FBA5349EBB7E5A3DF"><enum>(F)</enum><text display-inline="yes-display-inline">all prepayment fees or penalties that are
incurred by the consumer if the loan refinances a previous loan made or
currently held by the same creditor or an affiliate of the creditor;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H24D8EA05A02C4C67B10843103AC90A8E"><enum>(2)</enum><header display-inline="yes-display-inline">Calculation of points and fees for open-end
consumer credit plans</header><text display-inline="yes-display-inline">Section
103(aa) of the Truth in Lending Act (15 U.S.C. 1602(aa)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3AE5877C049A4518A7A57B72E9A1C3BC"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (5) as paragraph
(6); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD7B4143ECDE4177B8DA93AFE80F9CE4"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting after paragraph (4) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC764908ABB6448A9A022889DC00E202C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA1E85AF6B518402CA749999A5DB6A510"><enum>(5)</enum><header display-inline="yes-display-inline">Calculation of points and fees for open-end
consumer credit plans</header><text display-inline="yes-display-inline">In the
case of open-end consumer credit plans, points and fees shall be calculated,
for purposes of this section and section 129, by adding the total points and
fees known at or before closing, including the maximum prepayment penalties
which may be charged or collected under the terms of the credit transaction,
plus the minimum additional fees the consumer would be required to pay to draw
down an amount equal to the total credit
line.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE6F0ECAE820D45A0AA858ED14837B396"><enum>(d)</enum><header display-inline="yes-display-inline">Bona fide discount loan discount
points</header><text display-inline="yes-display-inline">Section 103 of the
Truth in Lending Act (15 U.S.C. 1602) is amended by inserting after subsection
(cc) (as added by section 101) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HEBAC9E64F6C94845AA0EE76911FEE208" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H730E33B902E44C14A4C3C56430A9FC1D"><enum>(dd)</enum><header display-inline="yes-display-inline">Bona fide discount points and prepayment
penalties</header><text display-inline="yes-display-inline">For the purposes of
determining the amount of points and fees for purposes of subsection (aa),
either the amounts described in paragraph (1) or (2) of the following
paragraphs, but not both, shall be excluded:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H881E37486A7C4429BD759EB2C40910F6"><enum>(1)</enum><text display-inline="yes-display-inline">Up to and including 2 bona fide discount
points payable by the consumer in connection with the mortgage, but only if the
interest rate from which the mortgage's interest rate will be discounted does
not exceed by more than 1 percentage point—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H753CE23B911749CB93A9072795B4A3BC"><enum>(A)</enum><text display-inline="yes-display-inline">the required net yield for a 90-day
standard mandatory delivery commitment for a reasonably comparable loan from
either the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation, whichever is greater; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H251CC255158C4BEDBF0EDFED38199ACB"><enum>(B)</enum><text display-inline="yes-display-inline">if secured by a personal property loan, the
average rate on a loan in connection with which insurance is provided under
title I of the National Housing Act (12 U.S.C. 1702 et seq.).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0298B025904741D2B6B226E93F710E3E"><enum>(2)</enum><text display-inline="yes-display-inline">Unless 2 bona fide discount points have
been excluded under paragraph (1), up to and including 1 bona fide discount
point payable by the consumer in connection with the mortgage, but only if the
interest rate from which the mortgage's interest rate will be discounted does
not exceed by more than 2 percentage points—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4A78CCEA2BAF4B1694BA5D7FB3EB89FA"><enum>(A)</enum><text display-inline="yes-display-inline">the required net yield for a 90-day
standard mandatory delivery commitment for a reasonably comparable loan from
either the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation, whichever is greater; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2BD352DF7ACB4F9F8A9AC0006C3745B0"><enum>(B)</enum><text display-inline="yes-display-inline">if secured by a personal property loan, the
average rate on a loan in connection with which insurance is provided under
title I of the National Housing Act (12 U.S.C. 1702 et seq.).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H00DFF19A0F414FE3849E9F053E46E903"><enum>(3)</enum><text display-inline="yes-display-inline">For purposes of paragraph (1), the term
<term>bona fide discount points</term> means loan discount points which are
knowingly paid by the consumer for the purpose of reducing, and which in fact
result in a bona fide reduction of, the interest rate or time-price
differential applicable to the mortgage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDFD270ECED884F9B9B9596F857091A1E"><enum>(4)</enum><text display-inline="yes-display-inline">Paragraphs (1) and (2) shall not apply to
discount points used to purchase an interest rate reduction unless the amount
of the interest rate reduction purchased is reasonably consistent with
established industry norms and practices for secondary mortgage market
transactions.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H8EBE4EECB6EF426E9F3D66C5ECD42513" section-type="subsequent-section"><enum>9202.</enum><header display-inline="yes-display-inline">Amendments to existing requirements for
certain mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="HE13F608AE4FE4A1199F2525ABE6E693F"><enum>(a)</enum><header display-inline="yes-display-inline">Prepayment penalty provisions</header><text display-inline="yes-display-inline">Section 129(c)(2) of the Truth in Lending
Act (15 U.S.C. 1639(c)(2)) is hereby repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H449A7055BE6143D985E283CA0C9F1CF9"><enum>(b)</enum><header display-inline="yes-display-inline">No balloon payments</header><text display-inline="yes-display-inline">Section 129(e) of the Truth in Lending Act
(15 U.S.C. 1639(e)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HDB233D1C8A2F471E872C4383A0F531D4" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H68957B1134A64F3B972C64BB347361D5"><enum>(e)</enum><header display-inline="yes-display-inline">No balloon payments</header><text display-inline="yes-display-inline">No high-cost mortgage may contain a
scheduled payment that is more than twice as large as the average of earlier
scheduled payments. This subsection shall not apply when the payment schedule
is adjusted to the seasonal or irregular income of the consumer or in the case
of a balance due under the customary terms of a reverse
mortgage.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H31170502D93B4804BCC1ED8D8418CD4B" section-type="subsequent-section"><enum>9203.</enum><header display-inline="yes-display-inline">Additional requirements for certain
mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H9F491DD65D0B43FD937002DB9A1214E0"><enum>(a)</enum><header display-inline="yes-display-inline">Additional Requirements for Certain
Mortgages</header><text display-inline="yes-display-inline">Section 129 of the
Truth in Lending Act (15 U.S.C. 1639) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6ED9E25930654AFDA6C554130A7F5CC3"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (j), (k) and
(l) as subsections (n), (o) and (p) respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5D9C6E3E2DA45A78BEFEC64B3E2C922"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (i) the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H6A545DF8CF7A4609B9AD1436839CA0EE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H31412A05BC684B67924BF82E85263121"><enum>(j)</enum><header display-inline="yes-display-inline">Recommended Default</header><text display-inline="yes-display-inline">No creditor shall recommend or encourage
default on an existing loan or other debt prior to and in connection with the
closing or planned closing of a high-cost mortgage that refinances all or any
portion of such existing loan or debt.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H66FEDBC980314DE881A09B259070AC27"><enum>(k)</enum><header display-inline="yes-display-inline">Late fees</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7C998AC49FFF49B796357B88D8752719"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No creditor may impose a late payment
charge or fee in connection with a high-cost mortgage—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F7489D6D71A40FEB1F842EAA80D2281"><enum>(A)</enum><text display-inline="yes-display-inline">in an amount in excess of 4 percent of the
amount of the payment past due;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H367A2AC835A64C738B57D68A4969B807"><enum>(B)</enum><text display-inline="yes-display-inline">unless the loan documents specifically
authorize the charge or fee;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA2B703DE6DDA4BA29CB85921B5DF0392"><enum>(C)</enum><text display-inline="yes-display-inline">before the end of the 15-day period
beginning on the date the payment is due, or in the case of a loan on which
interest on each installment is paid in advance, before the end of the 30-day
period beginning on the date the payment is due; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF2E579509E0A4FA3ADC1CC88951270AD"><enum>(D)</enum><text display-inline="yes-display-inline">more than once with respect to a single
late payment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H938EEDCDA5084D4FA4EB163A28449ABC"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with subsequent late
fees</header><text display-inline="yes-display-inline">If a payment is
otherwise a full payment for the applicable period and is paid on its due date
or within an applicable grace period, and the only delinquency or insufficiency
of payment is attributable to any late fee or delinquency charge assessed on
any earlier payment, no late fee or delinquency charge may be imposed on such
payment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1DC3D1F9C9CB4D6F9DAA1187CB9E7FEE"><enum>(3)</enum><header display-inline="yes-display-inline">Failure to make installment
payment</header><text display-inline="yes-display-inline">If, in the case of a
loan agreement the terms of which provide that any payment shall first be
applied to any past due principal balance, the consumer fails to make an
installment payment and the consumer subsequently resumes making installment
payments but has not paid all past due installments, the creditor may impose a
separate late payment charge or fee for any principal due (without deduction
due to late fees or related fees) until the default is cured.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3D613EAD07A04B6DB6D3D44C3F2FD65B"><enum>(l)</enum><header display-inline="yes-display-inline">Acceleration of Debt</header><text display-inline="yes-display-inline">No high-cost mortgage may contain a
provision which permits the creditor to accelerate the indebtedness, except
when repayment of the loan has been accelerated by default in payment, or
pursuant to a due-on-sale provision, or pursuant to a material violation of
some other provision of the loan document unrelated to payment schedule.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H11046C427ECC44CC99B854B14070D8AD"><enum>(m)</enum><header display-inline="yes-display-inline">Restriction on financing points and
fees</header><text display-inline="yes-display-inline">No creditor may directly
or indirectly finance, in connection with any high-cost mortgage, any of the
following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9E90A5F08C5D47448481B78D7C17C30F"><enum>(1)</enum><text display-inline="yes-display-inline">Any prepayment fee or penalty payable by
the consumer in a refinancing transaction if the creditor or an affiliate of
the creditor is the noteholder of the note being refinanced.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC54142D607744815AF5C8AEEB87FC759"><enum>(2)</enum><text display-inline="yes-display-inline">Any points or
fees.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5F2338A71AA7411A887E29B3B51C0E35"><enum>(b)</enum><header display-inline="yes-display-inline">Prohibitions on evasions</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (p) (as so redesignated
by subsection (a)(1)) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC5D7C1846B5A43C7BE0A030D04C60B7D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H22288A87D465408BA68CE478B85276F0"><enum>(q)</enum><header display-inline="yes-display-inline">Prohibitions on evasions, structuring of
transactions, and reciprocal arrangements</header><text display-inline="yes-display-inline">A creditor may not take any action in
connection with a high-cost mortgage—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5947B1588D80422BAD35810FB5CAE77D"><enum>(1)</enum><text display-inline="yes-display-inline">to structure a loan transaction as an
open-end credit plan or another form of loan for the purpose and with the
intent of evading the provisions of this title; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB71E48FDE9304225A829E60F73675780"><enum>(2)</enum><text display-inline="yes-display-inline">to divide any loan transaction into
separate parts for the purpose and with the intent of evading provisions of
this
title.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H049C7962531245B9ACA7FD94F59855B3"><enum>(c)</enum><header display-inline="yes-display-inline">Modification or Deferral Fees</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (q) (as added by
subsection (b) of this section) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H14A79E0F432F4A0FA265FAC6380E64E0" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE3FD3EEB3A8541A08E39FB769E8E5E72"><enum>(r)</enum><header display-inline="yes-display-inline">Modification and deferral fees
prohibited</header>
<paragraph commented="no" display-inline="no-display-inline" id="H48440CE63461450EB52A48CAE4DB7D16"><enum>(1)</enum><header display-inline="yes-display-inline">Creditors</header><text display-inline="yes-display-inline">A creditor may not charge a consumer any
fee to modify, renew, extend, or amend a high-cost mortgage, or to defer any
payment due under the terms of such mortgage, unless the modification, renewal,
extension or amendment results in a lower annual percentage rate on the
mortgage for the consumer and then only if the amount of the fee is comparable
to fees imposed for similar transactions in connection with consumer credit
transactions that are secured by a consumer's principal dwelling and are not
high-cost mortgages.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC986F5A32F594B428F91B51D519AD2CF"><enum>(2)</enum><header display-inline="yes-display-inline">Third parties</header><text display-inline="yes-display-inline">A third-party may not charge a consumer any
fee to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE1493EE5118F46D19EA5160E4CF0C890"><enum>(A)</enum><text display-inline="yes-display-inline">modify, renew, extend, or amend a high-cost
mortgage, or defer any payment due under the terms of such mortgage;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3AC67282B66B4396B345EE45A999F979"><enum>(B)</enum><text display-inline="yes-display-inline">negotiate with a creditor on behalf of a
consumer, the modification, renewal, extension, or amendment of a high-cost
mortgage; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA033C63A07264DF9B58AC5D76C478EE0"><enum>(C)</enum><text display-inline="yes-display-inline">negotiate with a creditor on behalf of a
consumer, the deferral of any payment due under the terms of such
mortgage,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">unless the modification renewal,
extension or amendment results in a significantly lower annual percentage rate
on the mortgage, or a significant reduction in the amount of the outstanding
principal on the mortgage, for the consumer and then only if the amount of the
fee is comparable to fees imposed for similar transactions in connection with
consumer credit transactions that are secured by a consumer's principal
dwelling and are not high-cost mortgages.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H18CD3E24F5464CA58112724BC99B25F9"><enum>(3)</enum><header display-inline="yes-display-inline">Enforcement</header><text display-inline="yes-display-inline">Section 130 shall be applied for purposes
of paragraph (2) by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC4A7FE0AFC824C3384C4947EB29897AB"><enum>(A)</enum><text display-inline="yes-display-inline">substituting <quote>third party</quote> for
<quote>creditor</quote>each place such term appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE51410A841F74DA0AF0A2D03022941EF"><enum>(B)</enum><text display-inline="yes-display-inline">substituting <quote>any fee charged by a
third party</quote> for <quote>finance charge</quote> each place such term
appears.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H70231F19C304442FAF7AD7703F4EE5A2"><enum>(d)</enum><header display-inline="yes-display-inline">Payoff statement</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (r) (as added by
subsection (c) of this section) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HACCA5482613241CEB5E2819061E411C0" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H57ED24EA4CF741AD942C780ECD2803CD"><enum>(s)</enum><header display-inline="yes-display-inline">Payoff statement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H317F507835F7474CAB861EBF12A7D5FC"><enum>(1)</enum><header display-inline="yes-display-inline">Fees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB567E02C0934471B0FD75395221829E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), no
creditor or servicer may charge a fee for informing or transmitting to any
person the balance due to pay off the outstanding balance on a high-cost
mortgage.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H094301F1748242A79535F39B03E31E63"><enum>(B)</enum><header display-inline="yes-display-inline">Transaction fee</header><text display-inline="yes-display-inline">When payoff information referred to in
subparagraph (A) is provided by facsimile transmission or by a courier service,
a creditor or servicer may charge a processing fee to cover the cost of such
transmission or service in an amount not to exceed an amount that is comparable
to fees imposed for similar services provided in connection with consumer
credit transactions that are secured by the consumer's principal dwelling and
are not high-cost mortgages.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H191DB461372C40368F87EC7849FF06BB"><enum>(C)</enum><header display-inline="yes-display-inline">Fee
disclosure</header><text display-inline="yes-display-inline">Prior to charging
a transaction fee as provided in subparagraph (B), a creditor or servicer shall
disclose that payoff balances are available for free pursuant to subparagraph
(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81ADA26CA99A4AFCB3D5A4CE49C51658"><enum>(D)</enum><header display-inline="yes-display-inline">Multiple requests</header><text display-inline="yes-display-inline">If a creditor or servicer has provided
payoff information referred to in subparagraph (A) without charge, other than
the transaction fee allowed by subparagraph (B), on 4 occasions during a
calendar year, the creditor or servicer may thereafter charge a reasonable fee
for providing such information during the remainder of the calendar
year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFD7FB9AD56F048B983A147663D5A0896"><enum>(2)</enum><header display-inline="yes-display-inline">Prompt delivery</header><text display-inline="yes-display-inline">Payoff balances shall be provided within 5
business days after receiving a request by a consumer or a person authorized by
the consumer to obtain such information.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5BEFC66442394A22B8E30B6129F1C036"><enum>(3)</enum><header display-inline="yes-display-inline">Services considered assignee</header><text display-inline="yes-display-inline">For the purposes of this subsection, a
servicer shall be considered an assignee under the Truth in Lending
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDAB7C60F6DCA431E94F0C121294DC9C7"><enum>(e)</enum><header display-inline="yes-display-inline">Pre-Loan Counseling Required</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (s) (as added by
subsection (d) of this section) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2671614F720B4C7E933FC6246463E521" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC733EFC6104342C7BFB7AE8EC57D01DB"><enum>(t)</enum><header display-inline="yes-display-inline">Pre-Loan Counseling</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCE601795837A4045BBD8A01D850176EC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A creditor may not extend credit to a
consumer under a high-cost mortgage without first receiving certification from
a counselor that is approved by the Secretary of Housing and Urban Development,
or at the discretion of the Secretary, a State housing finance authority, that
the consumer has received counseling on the advisability of the mortgage. Such
counselor shall not be employed by the creditor or an affiliate of the creditor
or be affiliated with the creditor.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB08CA58EE50549E0A0D35B67AFAB05A6"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosures required prior to
counseling</header><text display-inline="yes-display-inline">No counselor may
certify that a consumer has received counseling on the advisability of the
high-cost mortgage unless the counselor can verify that the consumer has
received each statement required (in connection with such loan) by this section
or the Real Estate Settlement Procedures Act of 1974 with respect to the
transaction.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF826BE9C5EE3441CADE2A4CCDF00DB2D"><enum>(3)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Board may prescribe such regulations as
the Board determines to be appropriate to carry out the requirements of
paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBF547166934A4F9E83CEBCCDC2F3A65B"><enum>(f)</enum><header display-inline="yes-display-inline">Flipping prohibited</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (t) (as added by
subsection (e)) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6149A26A141B4BC0B37BD2F0B64E35B7" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H97E9A95638AF401596A7283136A5651E"><enum>(u)</enum><header display-inline="yes-display-inline">Flipping</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5917CF8111C74455BD2CEDA4D8258DC2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No creditor may knowingly or intentionally
engage in the unfair act or practice of flipping in connection with a high-cost
mortgage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H285FE456094140C1A989F89F2C56835C"><enum>(2)</enum><header display-inline="yes-display-inline">Flipping defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>flipping</term> means the making of a loan or extension of credit in the
form a high-cost mortgage to a consumer which refinances an existing mortgage
when the new loan or extension of credit does not have reasonable, net tangible
benefit (as determined in accordance with regulations prescribed under section
129C(b)) to the consumer considering all of the circumstances, including the
terms of both the new and the refinanced loans or credit, the cost of the new
loan or credit, and the consumer's circumstances.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF60566BCE73041698405ABA9FFDB0838"><enum>(v)</enum><header display-inline="yes-display-inline">Corrections and unintentional
violations</header><text display-inline="yes-display-inline">A creditor or
assignee in a high cost loan who, when acting in good faith, fails to comply
with any requirement under this section will not be deemed to have violated
such requirement if the creditor or assignee establishes that either—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE460A98AC46546F296EC4B8171CF61E7"><enum>(1)</enum><text display-inline="yes-display-inline">within 30 days of the loan closing and
prior to the institution of any action, the consumer is notified of or
discovers the violation, appropriate restitution is made, and whatever
adjustments are necessary are made to the loan to either, at the choice of the
consumer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0DF569572DC643DDB380EEB8D1DDE4E0"><enum>(A)</enum><text display-inline="yes-display-inline">make the loan satisfy the requirements of
this chapter; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H068EF5CB09F94A64B9B21379BF111D01"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a high-cost mortgage, change
the terms of the loan in a manner beneficial to the consumer so that the loan
will no longer be a high-cost mortgage; or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3D9F0CCB928542CDA686EDB8A784FA31"><enum>(2)</enum><text display-inline="yes-display-inline">within 60 days of the creditor's discovery
or receipt of notification of an unintentional violation or bona fide error as
described in subsection (c) and prior to the institution of any action, the
consumer is notified of the compliance failure, appropriate restitution is
made, and whatever adjustments are necessary are made to the loan to either, at
the choice of the consumer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3F377289CDD94D41B85819020D54D86D"><enum>(A)</enum><text display-inline="yes-display-inline">make the loan satisfy the requirements of
this chapter; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE081631B4786484392F7245F99E0FCF7"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a high-cost mortgage, change
the terms of the loan in a manner beneficial so that the loan will no longer be
a high-cost
mortgage.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD4743D7158E94CA8A0270DFB1D3CDD68" section-type="subsequent-section"><enum>9204.</enum><header display-inline="yes-display-inline">Regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="H04A33CFC2B7443918AE2FD142490B8F8"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">The Board of Governors of the Federal
Reserve System shall publish regulations implementing this subtitle and the
amendments made by this subtitle in final form before the end of the 6-month
period beginning on the date of the enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDDA8ECC5B3E54ADFB15528CB9C25E866"><enum>(b)</enum><header display-inline="yes-display-inline">Consumer Mortgage Education</header>
<paragraph commented="no" display-inline="no-display-inline" id="H19032A52637F4214AD07903C635A3F8E"><enum>(1)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Board of Governors of the Federal
Reserve System may prescribe regulations requiring or encouraging creditors to
provide consumer mortgage education to prospective customers or direct such
customers to qualified consumer mortgage education or counseling programs in
the vicinity of the residence of the consumer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE5756A28CCAA4AFA83A398352FD74564"><enum>(2)</enum><header display-inline="yes-display-inline">Coordination with state law</header><text display-inline="yes-display-inline">No requirement established by the Board of
Governors of the Federal Reserve System pursuant to paragraph (1) shall be
construed as affecting or superseding any requirement under the law of any
State with respect to consumer mortgage counseling or education.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HF44211927FCA4297AC782803C00040F4" section-type="subsequent-section"><enum>9205.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">The amendments made by
this subtitle shall take effect at the end of the 6-month period beginning on
the date of the enactment of this Act and shall apply to mortgages referred to
in section 103(aa) of the Truth in Lending Act (15 U.S.C. 1602(aa)) for which
an application is received by the creditor after the end of such period.</text>
</section></subtitle><subtitle commented="no" id="H474A139045424DE5B7484198501E65BF" level-type="subsequent"><enum>D</enum><header display-inline="yes-display-inline">Office of Housing Counseling</header>
<section commented="no" display-inline="no-display-inline" id="HD5F97E7AEFD04682BE99DBC5514B4C48" section-type="subsequent-section"><enum>9301.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>Expand and Preserve Home Ownership
Through Counseling Act</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HCD08E3E5A24F4194B9197887CC701736" section-type="subsequent-section"><enum>9302.</enum><header display-inline="yes-display-inline">Establishment of Office of Housing
Counseling</header><text display-inline="no-display-inline">Section 4 of the
Department of <act-name parsable-cite="HUDA">Housing and Urban Development
Act</act-name> (42 U.S.C. 3533) is amended by adding at the end the following
new subsection:</text>
<quoted-block act-name="Housing" display-inline="no-display-inline" id="H17949C08C4C8423989FEAE9CFC64F80C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC142C4F4E186417DA232EBFC24206509"><enum>(g)</enum><header display-inline="yes-display-inline">Office of Housing Counseling</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8F1749656B5B4CBDA2249CFD4ED59AE5"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">There is established, in the Department,
the Office of Housing Counseling.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE190758EEF1945C8AEC43E75CC036BF2"><enum>(2)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">There is established the position of
Director of Housing Counseling. The Director shall be the head of the Office of
Housing Counseling and shall be appointed by, and shall report to, the
Secretary. Such position shall be a career-reserved position in the Senior
Executive Service.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA59D0EED17764FD2B77A9FCEB6E613DE"><enum>(3)</enum><header display-inline="yes-display-inline">Functions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9B6E4A75A5854FC299614F4A4690F890"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director shall have primary
responsibility within the Department for all activities and matters relating to
homeownership counseling and rental housing counseling, including—</text>
<clause commented="no" display-inline="no-display-inline" id="H0231725C4B2F494C862520DE6B7B7509"><enum>(i)</enum><text display-inline="yes-display-inline">research, grant administration, public
outreach, and policy development relating to such counseling; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H635A5F2C0942452C9B3935827F18DF0E"><enum>(ii)</enum><text display-inline="yes-display-inline">establishment, coordination, and
administration of all regulations, requirements, standards, and performance
measures under programs and laws administered by the Department that relate to
housing counseling, homeownership counseling (including maintenance of homes),
mortgage-related counseling (including home equity conversion mortgages and
credit protection options to avoid foreclosure), and rental housing counseling,
including the requirements, standards, and performance measures relating to
housing counseling.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H089E5402F2F74069AED224528081D0AD"><enum>(B)</enum><header display-inline="yes-display-inline">Specific functions</header><text display-inline="yes-display-inline">The Director shall carry out the functions
assigned to the Director and the Office under this section and any other
provisions of law. Such functions shall include establishing rules necessary
for—</text>
<clause commented="no" display-inline="no-display-inline" id="H066B9353789C42AB846CD2C8679030AE"><enum>(i)</enum><text display-inline="yes-display-inline">the counseling procedures under section
106(g)(1) of the <act-name parsable-cite="HUDA">Housing and Urban Development
Act</act-name> of 1968 (12 U.S.C. 1701x(h)(1));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H09A4134789F843D097F889E209447B59"><enum>(ii)</enum><text display-inline="yes-display-inline">carrying out all other functions of the
Secretary under section 106(g) of the <act-name parsable-cite="HUDA">Housing
and Urban Development Act</act-name> of 1968, including the establishment,
operation, and publication of the availability of the toll-free telephone
number under paragraph (2) of such section;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2FA4D252D2094F0489F8D47CA2F94586"><enum>(iii)</enum><text display-inline="yes-display-inline">contributing to the preparation and
distribution of home buying information booklets pursuant to section 5 of the
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAE9A81B0918544EEBEC4C51367355434"><enum>(iv)</enum><text display-inline="yes-display-inline">carrying out the certification program
under section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban
Development Act</act-name> of 1968 (12 U.S.C. 1701x(e));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFBA3E1CCF84F4B45879C78FECDBE7BE1"><enum>(v)</enum><text display-inline="yes-display-inline">carrying out the assistance program under
section 106(a)(4) of the <act-name parsable-cite="HUDA">Housing and Urban
Development Act</act-name> of 1968, including criteria for selection of
applications to receive assistance;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4EF6686CA48E4F2DBE61FC15AF74571F"><enum>(vi)</enum><text display-inline="yes-display-inline">carrying out any functions regarding
abusive, deceptive, or unscrupulous lending practices relating to residential
mortgage loans that the Secretary considers appropriate, which shall include
conducting the study under section 6 of the Expand and Preserve Home Ownership
Through Counseling Act;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H18C25BCFB45E43DEB635E20B857EB940"><enum>(vii)</enum><text display-inline="yes-display-inline">providing for operation of the advisory
committee established under paragraph (4) of this subsection;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF3BF7D7A0EF14E1A9350545666EFF296"><enum>(viii)</enum><text display-inline="yes-display-inline">collaborating with community-based
organizations with expertise in the field of housing counseling; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA380D85C96E1410DA719A002433DA7A1"><enum>(ix)</enum><text display-inline="yes-display-inline">providing for the building of capacity to
provide housing counseling services in areas that lack sufficient services,
including underdeveloped areas that lack basic water and sewer systems,
electricity services, and safe, sanitary housing.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3E6BAEE83E6C495692B0D8607037B3C7"><enum>(4)</enum><header display-inline="yes-display-inline">Advisory Committee</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0A5CFBBE8E9A4E388AA57E1B182C0534"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall appoint an advisory
committee to provide advice regarding the carrying out of the functions of the
Director.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H410C474E0C684B1D9F58D41FAB343628"><enum>(B)</enum><header display-inline="yes-display-inline">Members</header><text display-inline="yes-display-inline">Such advisory committee shall consist of
not more than 12 individuals, and the membership of the committee shall equally
represent the mortgage and real estate industry, including consumers and
housing counseling agencies certified by the Secretary.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEE360BD4632A4E06AA2362130F1BFF5B"><enum>(C)</enum><header display-inline="yes-display-inline">Terms</header><text display-inline="yes-display-inline">Except as provided in subparagraph (D),
each member of the advisory committee shall be appointed for a term of 3 years.
Members may be reappointed at the discretion of the Secretary.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H934516146A7542B184C770B50032F226"><enum>(D)</enum><header display-inline="yes-display-inline">Terms of initial appointees</header><text display-inline="yes-display-inline">As designated by the Secretary at the time
of appointment, of the members first appointed to the advisory committee, 4
shall be appointed for a term of 1 year and 4 shall be appointed for a term of
2 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H64D549CA31D244F9B0F01592269C239B"><enum>(E)</enum><header display-inline="yes-display-inline">Prohibition of pay; travel
expenses</header><text display-inline="yes-display-inline">Members of the
advisory committee shall serve without pay, but shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with applicable
provisions under subchapter I of chapter 57 of title 5, United States
Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3BDA57F14C204B33B9CB26AC2F6929E8"><enum>(F)</enum><header display-inline="yes-display-inline">Advisory role only</header><text display-inline="yes-display-inline">The advisory committee shall have no role
in reviewing or awarding housing counseling grants.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32AAE61AE392415E8F03250D9EBA19FF"><enum>(5)</enum><header display-inline="yes-display-inline">Scope of homeownership
counseling</header><text display-inline="yes-display-inline">In carrying out
the responsibilities of the Director, the Director shall ensure that
homeownership counseling provided by, in connection with, or pursuant to any
function, activity, or program of the Department addresses the entire process
of homeownership, including the decision to purchase a home, the selection and
purchase of a home, issues arising during or affecting the period of ownership
of a home (including refinancing, default and foreclosure, and other financial
decisions), and the sale or other disposition of a
home.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HAA7616D245B1474C9957F595A931851D" section-type="subsequent-section"><enum>9303.</enum><header display-inline="yes-display-inline">Counseling procedures</header>
<subsection commented="no" display-inline="no-display-inline" id="H95ED8278A7FC43208283A8097F634136"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 106 of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x) is amended by adding at the end the following new
subsection:</text>
<quoted-block act-name="Housing" display-inline="no-display-inline" id="HD1AE5B6614584996B95F1E68DF5F341B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7CBA0D85977E41D88F3037B2A56C19DB"><enum>(g)</enum><header display-inline="yes-display-inline">Procedures and activities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7ADA81C4526441A599FBA12FB501F6A0"><enum>(1)</enum><header display-inline="yes-display-inline">Counseling procedures</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H748AC2E17A934206B3FF6D51FDC2891D"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall establish, coordinate,
and monitor the administration by the Department of Housing and Urban
Development of the counseling procedures for homeownership counseling and
rental housing counseling provided in connection with any program of the
Department, including all requirements, standards, and performance measures
that relate to homeownership and rental housing counseling.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBEB0582A33A54010BED70D313C68C054"><enum>(B)</enum><header display-inline="yes-display-inline">Homeownership counseling</header><text display-inline="yes-display-inline">For purposes of this subsection and as used
in the provisions referred to in this subparagraph, the term
<term>homeownership counseling</term> means counseling related to homeownership
and residential mortgage loans. Such term includes counseling related to
homeownership and residential mortgage loans that is provided pursuant
to—</text>
<clause commented="no" display-inline="no-display-inline" id="H6B91D81A88F64942A36646AEC662A2A3"><enum>(i)</enum><text display-inline="yes-display-inline">section 105(a)(20) of the
<act-name parsable-cite="HCDA">Housing and Community Development Act of
1974</act-name> (42 U.S.C. 5305(a)(20));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1BF5A3E324B847D1AD0C5A84AEE75DB6"><enum>(ii)</enum><text display-inline="yes-display-inline">in the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>—</text>
<subclause commented="no" display-inline="no-display-inline" id="HB1F28D21CE934BE38FB908A1EBEF7504"><enum>(I)</enum><text display-inline="yes-display-inline">section 9(e) (42 U.S.C. 1437g(e));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD7195A2738214556B967A991590DE685"><enum>(II)</enum><text display-inline="yes-display-inline">section 8(y)(1)(D) (42 U.S.C.
1437f(y)(1)(D));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HCD63E544180A48CF9506A75D7CB67116"><enum>(III)</enum><text display-inline="yes-display-inline">section 18(a)(4)(D) (42 U.S.C.
1437p(a)(4)(D));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H7D1E3C1C5C5043D288AD84F9E4D94110"><enum>(IV)</enum><text display-inline="yes-display-inline">section 23(c)(4) (42 U.S.C.
1437u(c)(4));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H30B842C915994E6FB1010E03E2ADBD26"><enum>(V)</enum><text display-inline="yes-display-inline">section 32(e)(4) (42 U.S.C.
1437z–4(e)(4));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4926FF074014479DA1FA7E20D3BFDCB7"><enum>(VI)</enum><text display-inline="yes-display-inline">section 33(d)(2)(B) (42 U.S.C.
1437z–5(d)(2)(B));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H804C62A2CF1943A68488407933092341"><enum>(VII)</enum><text display-inline="yes-display-inline">sections 302(b)(6) and 303(b)(7) (42 U.S.C.
1437aaa–1(b)(6), 1437aaa–2(b)(7)); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H99EA7F42C0D94E3998A13FF8B2959A0A"><enum>(VIII)</enum><text display-inline="yes-display-inline">section 304(c)(4) (42 U.S.C.
1437aaa–3(c)(4));</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H3D27F1797503470BA46B45BC17DC7184"><enum>(iii)</enum><text display-inline="yes-display-inline">section 302(a)(4) of the American
Homeownership and Economic Opportunity Act of 2000 (42 U.S.C. 1437f
note);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H94E1AE7E2E7C4CA5A1C4331AEE140D92"><enum>(iv)</enum><text display-inline="yes-display-inline">sections 233(b)(2) and 258(b) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12773(b)(2), 12808(b));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB43827748F884A79B65DF59C489A8D64"><enum>(v)</enum><text display-inline="yes-display-inline">this section and section 101(e) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x, 1701w(e));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6681C5442B7A4C22B2CE4F864C3A6798"><enum>(vi)</enum><text display-inline="yes-display-inline">section 220(d)(2)(G) of the Low-Income
Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C.
4110(d)(2)(G));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0D47226207144117856C60062D04717D"><enum>(vii)</enum><text display-inline="yes-display-inline">sections 422(b)(6), 423(b)(7), 424(c)(4),
442(b)(6), and 443(b)(6) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), 12892(b)(6),
and 12893(b)(6));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H00FBF2F7B2474688968D8CF23A1ADCDE"><enum>(viii)</enum><text display-inline="yes-display-inline">section 491(b)(1)(F)(iii) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB0DDD87B22524542B936C916E5BD3F5F"><enum>(ix)</enum><text display-inline="yes-display-inline">sections 202(3) and 810(b)(2)(A) of the
Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3),
4229(b)(2)(A));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3F176B7AC52D499693ACD74D038469DE"><enum>(x)</enum><text display-inline="yes-display-inline">in the <act-name parsable-cite="NHA">National Housing Act</act-name>—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9C9671AEFAEF4A71845362B363F55451"><enum>(I)</enum><text display-inline="yes-display-inline">in section 203 (12 U.S.C. 1709), the
penultimate undesignated paragraph of paragraph (2) of subsection (b),
subsection (c)(2)(A), and subsection (r)(4);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0AFB5F6610F147D9871E6B546BA9EC01"><enum>(II)</enum><text display-inline="yes-display-inline">subsections (a) and (c)(3) of section 237
(12 U.S.C. 1715z–2); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HCD0D2C0A59124482BA03222292C30EC5"><enum>(III)</enum><text display-inline="yes-display-inline">subsections (d)(2)(B) and (m)(1) of section
255 (12 U.S.C. 1715z–20);</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HC1A591C15B7B4D1EBDAF1D141C00A67C"><enum>(xi)</enum><text display-inline="yes-display-inline">section 502(h)(4)(B) of the
<act-name parsable-cite="HA49">Housing Act of 1949</act-name> (42 U.S.C.
1472(h)(4)(B));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDF0C2E1D29124F1C892AD8678C3C71DA"><enum>(xii)</enum><text display-inline="yes-display-inline">section 508 of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1970 (12 U.S.C. 1701z–7); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H873EF07ED8D2408CB9BB7197F1AE52FA"><enum>(xiii)</enum><text display-inline="yes-display-inline">section 106 of the Energy Policy Act of
1992 (42 U.S.C. 12712 note).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H453B66DF291745F78FBDB8D0CAE0AF9F"><enum>(C)</enum><header display-inline="yes-display-inline">Rental housing counseling</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>rental housing counseling</term> means counseling related to rental of
residential property, which may include counseling regarding future
homeownership opportunities and providing referrals for renters and prospective
renters to entities providing counseling and shall include counseling related
to such topics that is provided pursuant to—</text>
<clause commented="no" display-inline="no-display-inline" id="HBD9A02FB4F504FD29B11B16747C30014"><enum>(i)</enum><text display-inline="yes-display-inline">section 105(a)(20) of the
<act-name parsable-cite="HCDA">Housing and Community Development Act of
1974</act-name> (42 U.S.C. 5305(a)(20));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H130FAF37CADD409A882DAC8596A7A5A4"><enum>(ii)</enum><text display-inline="yes-display-inline">in the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>—</text>
<subclause commented="no" display-inline="no-display-inline" id="HADE16B25B4FA492E83DE0E34C688E334"><enum>(I)</enum><text display-inline="yes-display-inline">section 9(e) (42 U.S.C. 1437g(e));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H531C503F5BC5473BB3E7C109E6475A98"><enum>(II)</enum><text display-inline="yes-display-inline">section 18(a)(4)(D) (42 U.S.C.
1437p(a)(4)(D));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5592752189D6414FAAA6D84A312066EF"><enum>(III)</enum><text display-inline="yes-display-inline">section 23(c)(4) (42 U.S.C.
1437u(c)(4));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA3E01D7F03174A2C8A18B3D00AF3405B"><enum>(IV)</enum><text display-inline="yes-display-inline">section 32(e)(4) (42 U.S.C.
1437z–4(e)(4));</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3F9D287391E9418A87C2EA3302F68719"><enum>(V)</enum><text display-inline="yes-display-inline">section 33(d)(2)(B) (42 U.S.C.
1437z–5(d)(2)(B)); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD6756386A7CE4CD596074CD5BF9F496B"><enum>(VI)</enum><text display-inline="yes-display-inline">section 302(b)(6) (42 U.S.C.
1437aaa–1(b)(6));</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HA7C2F3843D844EE0A4DFB27902765931"><enum>(iii)</enum><text display-inline="yes-display-inline">section 233(b)(2) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12773(b)(2));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6883AF6F6E31480B9EED695BC2BAFB25"><enum>(iv)</enum><text display-inline="yes-display-inline">section 106 of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD483A4E2857B45A7B085F0D4AC6824D1"><enum>(v)</enum><text display-inline="yes-display-inline">section 422(b)(6) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12872(b)(6));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA12D6A3F77164622A990740B78484D4A"><enum>(vi)</enum><text display-inline="yes-display-inline">section 491(b)(1)(F)(iii) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCAA1E4DB4199447D894891212246552F"><enum>(vii)</enum><text display-inline="yes-display-inline">sections 202(3) and 810(b)(2)(A) of the
Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3),
4229(b)(2)(A)); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3CD98E5AFA034B46BE4589E5E3DDB5B4"><enum>(viii)</enum><text display-inline="yes-display-inline">the rental assistance program under section
8 of the <act-name parsable-cite="USHA">United States Housing Act of
1937</act-name> (42 U.S.C. 1437f).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA7DF036E33434617915E979243C4F079"><enum>(2)</enum><header display-inline="yes-display-inline">Standards for materials</header><text display-inline="yes-display-inline">The Secretary, in consultation with the
advisory committee established under subsection (g)(4) of the Department of
Housing and Urban Development Act, shall establish standards for materials and
forms to be used, as appropriate, by organizations providing homeownership
counseling services, including any recipients of assistance pursuant to
subsection (a)(4).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5F615759CF24409FBFCD889ABD132090"><enum>(3)</enum><header display-inline="yes-display-inline">Mortgage software systems</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H4567EAB06DB04C19ABE7960207DE7B0A"><enum>(A)</enum><header display-inline="yes-display-inline">Certification</header><text display-inline="yes-display-inline">The Secretary shall provide for the
certification of various computer software programs for consumers to use in
evaluating different residential mortgage loan proposals. The Secretary shall
require, for such certification, that the mortgage software systems take into
account—</text>
<clause commented="no" display-inline="no-display-inline" id="HE69F2D3B1F8C46C58BD9986DA8AF2C3A"><enum>(i)</enum><text display-inline="yes-display-inline">the consumer’s financial situation and the
cost of maintaining a home, including insurance, taxes, and utilities;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9D86C2BC38B4468ABC4CD2EB948900B9"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of time the consumer expects to
remain in the home or expected time to maturity of the loan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAD5354D3DE004137A713C5AAA8AB595C"><enum>(iii)</enum><text display-inline="yes-display-inline">such other factors as the Secretary
considers appropriate to assist the consumer in evaluating whether to pay
points, to lock in an interest rate, to select an adjustable or fixed rate
loan, to select a conventional or government-insured or guaranteed loan and to
make other choices during the loan application process.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">If the Secretary determines that
available existing software is inadequate to assist consumers during the
residential mortgage loan application process, the Secretary shall arrange for
the development by private sector software companies of new mortgage software
systems that meet the Secretary’s specifications.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA31C74BA01674339BD06D4D0269CFD90"><enum>(B)</enum><header display-inline="yes-display-inline">Use and initial availability</header><text display-inline="yes-display-inline">Such certified computer software programs
shall be used to supplement, not replace, housing counseling. The Secretary
shall provide that such programs are initially used only in connection with the
assistance of housing counselors certified pursuant to subsection (e).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1A2A228D2E6425B8CB287A851358436"><enum>(C)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">After a period of initial availability
under subparagraph (B) as the Secretary considers appropriate, the Secretary
shall take reasonable steps to make mortgage software systems certified
pursuant to this paragraph widely available through the Internet and at public
locations, including public libraries, senior-citizen centers, public housing
sites, offices of public housing agencies that administer rental housing
assistance vouchers, and housing counseling centers.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H905ECA1AB4AE43F1A2F4973A27FA9926"><enum>(D)</enum><header display-inline="yes-display-inline">Budget compliance</header><text display-inline="yes-display-inline">This paragraph shall be effective only to
the extent that amounts to carry out this paragraph are made available in
advance in appropriations Acts.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3EED9E0B5ED4E7D8848B8181DECD20C"><enum>(4)</enum><header display-inline="yes-display-inline">National public service multimedia
campaigns to promote housing counseling</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA3469E3199634A1ABB32BF56BCFE6178"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director of Housing Counseling shall
develop, implement, and conduct national public service multimedia campaigns
designed to make persons facing mortgage foreclosure, persons considering a
subprime mortgage loan to purchase a home, elderly persons, persons who face
language barriers, low-income persons, minorities, and other potentially
vulnerable consumers aware that it is advisable, before seeking or maintaining
a residential mortgage loan, to obtain homeownership counseling from an
unbiased and reliable sources and that such homeownership counseling is
available, including through programs sponsored by the Secretary of Housing and
Urban Development.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H62696776F3E841329AEAFEA8F88AA58E"><enum>(B)</enum><header display-inline="yes-display-inline">Contact information</header><text display-inline="yes-display-inline">Each segment of the multimedia campaign
under subparagraph (A) shall publicize the toll-free telephone number and
website of the Department of Housing and Urban Development through which
persons seeking housing counseling can locate a housing counseling agency in
their State that is certified by the Secretary of Housing and Urban Development
and can provide advice on buying a home, renting, defaults, foreclosures,
credit issues, and reverse mortgages.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9ED232D59D1A4D7C804547DBAB83F885"><enum>(C)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary, not to exceed $3,000,000 for
fiscal years 2009, 2010, and 2011, for the development, implementation, and
conduct of national public service multimedia campaigns under this
paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1F19377093F648BE95DB4C78195373CA"><enum>(D)</enum><header display-inline="yes-display-inline">Foreclosure rescue education
programs</header>
<clause commented="no" display-inline="no-display-inline" id="H2142C71C36F349DC903261547978E4C3"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Ten percent of any funds appropriated
pursuant to the authorization under subparagraph (C) shall be used by the
Director of Housing Counseling to conduct an education program in areas that
have a high density of foreclosure. Such program shall involve direct mailings
to persons living in such areas describing—</text>
<subclause commented="no" display-inline="no-display-inline" id="HEFA7A122B54848FE8482D9C40FD6071A"><enum>(I)</enum><text display-inline="yes-display-inline">tips on avoiding foreclosure rescue
scams;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6D96E672D70D431DB614EC0A10C1407E"><enum>(II)</enum><text display-inline="yes-display-inline">tips on avoiding predatory lending mortgage
agreements;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H857D1D18B8B54CB0878C1BE6DF861912"><enum>(III)</enum><text display-inline="yes-display-inline">tips on avoiding for-profit foreclosure
counseling services; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HAECC721F53D74306B8A09E8CE457D9BB"><enum>(IV)</enum><text display-inline="yes-display-inline">local counseling resources that are
approved by the Department of Housing and Urban Development.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4073FEEE9303417FAE755042DB9795F1"><enum>(ii)</enum><header display-inline="yes-display-inline">Program emphasis</header><text display-inline="yes-display-inline">In conducting the education program
described under clause (i), the Director of Housing Counseling shall also place
an emphasis on serving communities that have a high percentage of retirement
communities or a high percentage of low-income minority communities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB7F75C8FC6CB431A86475F9BE8C958E3"><enum>(iii)</enum><header display-inline="yes-display-inline">Terms defined</header><text display-inline="yes-display-inline">For purposes of this subparagraph:</text>
<subclause commented="no" display-inline="no-display-inline" id="HB247AE7D82DB40B3BBDAF007A275AF11"><enum>(I)</enum><header display-inline="yes-display-inline">High density of foreclosures</header><text display-inline="yes-display-inline">An area has a <term>high density of
foreclosures</term> if such area is one of the metropolitan statistical areas
(as that term is defined by the Director of the Office of Management and
Budget) with the highest home foreclosure rates.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC26A31FF13244E278DE278872C265ED3"><enum>(II)</enum><header display-inline="yes-display-inline">High percentage of retirement
communities</header><text display-inline="yes-display-inline">An area has a
<term>high percentage of retirement communities</term> if such area is one of
the metropolitan statistical areas (as that term is defined by the Director of
the Office of Management and Budget) with the highest percentage of residents
aged 65 or older.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC86FE530D34B42EE9B51F3C5F69DE32A"><enum>(III)</enum><header display-inline="yes-display-inline">High percentage of low-income minority
communities</header><text display-inline="yes-display-inline">An area has a
<term>high percentage of low-income minority communities</term> if such area
contains a higher-than-normal percentage of residents who are both minorities
and low-income, as defined by the Director of Housing Counseling.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF5247B5FDFA414BB0271154D72E9F14"><enum>(5)</enum><header display-inline="yes-display-inline">Education programs</header><text display-inline="yes-display-inline">The Secretary shall provide advice and
technical assistance to States, units of general local government, and
nonprofit organizations regarding the establishment and operation of, including
assistance with the development of content and materials for, educational
programs to inform and educate consumers, particularly those most vulnerable
with respect to residential mortgage loans (such as elderly persons, persons
facing language barriers, low-income persons, minorities, and other potentially
vulnerable consumers), regarding home mortgages, mortgage refinancing, home
equity loans, home repair loans, and where appropriate by region, any
requirements and costs associated with obtaining flood or other
disaster-specific insurance
coverage.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD8037A77572F4745A44D1F2E26C28537"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments to grant program for
homeownership counseling organizations</header><text display-inline="yes-display-inline">Section 106(c)(5)(A)(ii) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H21389B7F41274B728E8B83B795EB7156"><enum>(1)</enum><text display-inline="yes-display-inline">in subclause (III), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1B4296E961B142709A1D1DBD8BBF2220"><enum>(2)</enum><text display-inline="yes-display-inline">in subclause (IV) by striking the period at
the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE415DBCF892342FCA6770FC3DD01B3D9"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subclause (IV) the
following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H0F036DF1C9B94BB98E0A4F34EA1A1FE9" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="H148405489123477BA4159843EAD70B90"><enum>(V)</enum><text display-inline="yes-display-inline">notify the housing or mortgage applicant of
the availability of mortgage software systems provided pursuant to subsection
(g)(3).</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H3D6CA70ABC5249DC9B9C78E3B1AF8A29" section-type="subsequent-section"><enum>9304.</enum><header display-inline="yes-display-inline">Grants for housing counseling
assistance</header><text display-inline="no-display-inline">Section 106(a) of
the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name>
of 1968 (12 U.S.C. 1701x(a)(3)) is amended by adding at the end the following
new paragraph:</text>
<quoted-block act-name="Housing" display-inline="no-display-inline" id="H8650931CF6C94EAC95395B20657EA203" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H65E5F3CECF1047AAAB12C15D4632D867" indent="up1"><enum>(4)</enum><header display-inline="yes-display-inline">Homeownership and rental counseling
assistance</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA4F9A60C18D941EEBE535E8870CE0FAA"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall make financial
assistance available under this paragraph to HUD-approved housing counseling
agencies and State housing finance agencies.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H743FDAC018E24EAEAAD1884374F6C41C"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified entities</header><text display-inline="yes-display-inline">The Secretary shall establish standards and
guidelines for eligibility of organizations (including governmental and
nonprofit organizations) to receive assistance under this paragraph, in
accordance with subparagraph (D).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H429FCFB32D37473688A237736A43256F"><enum>(C)</enum><header display-inline="yes-display-inline">Distribution</header><text display-inline="yes-display-inline">Assistance made available under this
paragraph shall be distributed in a manner that encourages efficient and
successful counseling programs and that ensures adequate distribution of
amounts for rural areas having traditionally low levels of access to such
counseling services, including areas with insufficient access to the Internet.
In distributing such assistance, the Secretary may give priority consideration
to entities serving areas with the highest home foreclosure rates.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8EE0FB6DBA554021845900A717DDCD53"><enum>(D)</enum><header display-inline="yes-display-inline">Limitation on distribution of
assistance</header>
<clause commented="no" display-inline="no-display-inline" id="H6A1B4EEEEFE744AB85094FFC0A72E3C0"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">None of the amounts made available under
this paragraph shall be distributed to—</text>
<subclause commented="no" display-inline="no-display-inline" id="H2C9B72A631BA4201A5AA63EA3C82A3D8"><enum>(I)</enum><text display-inline="yes-display-inline">any organization which has been convicted
for a violation under Federal law relating to an election for Federal office;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H41744237EC82468191B004699E51F9B3"><enum>(II)</enum><text display-inline="yes-display-inline">any organization which employs applicable
individuals.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H6941342C0C0441F8897FF293FE584894"><enum>(ii)</enum><header display-inline="yes-display-inline">Definition of applicable
individuals</header><text display-inline="yes-display-inline">In this
subparagraph, the term <quote>applicable individual</quote> means an individual
who—</text>
<subclause commented="no" display-inline="no-display-inline" id="H68E9038A212A4F288DBB5B9C114C610D"><enum>(I)</enum><text display-inline="yes-display-inline">is—</text>
<item commented="no" display-inline="no-display-inline" id="H13D9F430D1A8407EA5EEFA7CEC220A5B"><enum>(aa)</enum><text display-inline="yes-display-inline">employed by the organization in a permanent
or temporary capacity;</text>
</item><item commented="no" display-inline="no-display-inline" id="H6F314FD90DA2459FB16279E141B312AC"><enum>(bb)</enum><text display-inline="yes-display-inline">contracted or retained by the organization;
or</text>
</item><item commented="no" display-inline="no-display-inline" id="H322FB71F6A774613B1EF1B70DFBCBA10"><enum>(cc)</enum><text display-inline="yes-display-inline">acting on behalf of, or with the express or
apparent authority of, the organization; and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="H6AC0C17AC3D94F5F8E81E0FF35F3E98E"><enum>(II)</enum><text display-inline="yes-display-inline">has been convicted for a violation under
Federal law relating to an election for Federal office.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5170A510D05741BF854B736615680D23"><enum>(E)</enum><header display-inline="yes-display-inline">Grantmaking process</header><text display-inline="yes-display-inline">In making assistance available under this
paragraph, the Secretary shall consider appropriate ways of streamlining and
improving the processes for grant application, review, approval, and
award.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4950DE3EE99A4D2A97A9B6BAC352275F"><enum>(F)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated $45,000,000 for each of fiscal years 2009 through
2012 for—</text>
<clause commented="no" display-inline="no-display-inline" id="HA32F7B3F0C3047689ECD1728D10EA0A7"><enum>(i)</enum><text display-inline="yes-display-inline">the operations of the Office of Housing
Counseling of the Department of Housing and Urban Development;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD5E50DADF5E040D5B0B9BA202203E11C"><enum>(ii)</enum><text display-inline="yes-display-inline">the responsibilities of the Director of
Housing Counseling under paragraphs (2) through (5) of subsection (g);
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H476EFB47A1F0473996958718175F5D99"><enum>(iii)</enum><text display-inline="yes-display-inline">assistance pursuant to this paragraph for
entities providing homeownership and rental
counseling.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H40FCD9C258C040E29A434959BB4E7827" section-type="subsequent-section"><enum>9305.</enum><header display-inline="yes-display-inline">Requirements to use HUD-certified
counselors under HUD programs</header><text display-inline="no-display-inline">Section 106(e) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB97BAC5578EF4096959C935AACBBA792"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1D3A77E2B55047098B24ECDE4CE887FF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE4FA353DD47B42FDB2EF44C52190886C"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement for assistance</header><text display-inline="yes-display-inline">An organization may not receive assistance
for counseling activities under subsection (a)(1)(iii), (a)(2), (a)(4), (c), or
(d) of this section, or under section 101(e), unless the organization, or the
individuals through which the organization provides such counseling, has been
certified by the Secretary under this subsection as competent to provide such
counseling.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BB84F60735C4B3489079EBAF2BB8C2C"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5DA08BC9065846C990971B6C19442BBE"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>and for certifying
organizations</quote> before the period at the end of the first sentence;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A10834F0A374D8F8F44A0D71FCD8B91"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence by striking
<quote>for certification</quote> and inserting <quote>, for certification of an
organization, that each individual through which the organization provides
counseling shall demonstrate, and, for certification of an
individual,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H604FBAEB53AB427FA788D63FCC1A4AAD"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3), by inserting
<quote>organizations and</quote> before <quote>individuals</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1F08A5F60D4410E9202680071682A56"><enum>(4)</enum><text display-inline="yes-display-inline">by redesignating paragraph (3) as paragraph
(5); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0FC01CBF21D04A388107A2CFA07020DF"><enum>(5)</enum><text display-inline="yes-display-inline">by inserting after paragraph (2) the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H734CCBC000524E9D81E3386919768123" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H33EFC9BB56A245F58EC98E163F5A0243"><enum>(3)</enum><header display-inline="yes-display-inline">Requirement under hud
programs</header><text display-inline="yes-display-inline">Any homeownership
counseling or rental housing counseling (as such terms are defined in
subsection (g)(1)) required under, or provided in connection with, any program
administered by the Department of Housing and Urban Development shall be
provided only by organizations or counselors certified by the Secretary under
this subsection as competent to provide such counseling.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5732A3C2A71C48BEA96960ECA9BB32C4"><enum>(4)</enum><header display-inline="yes-display-inline">Outreach</header><text display-inline="yes-display-inline">The Secretary shall take such actions as
the Secretary considers appropriate to ensure that individuals and
organizations providing homeownership or rental housing counseling are aware of
the certification requirements and standards of this subsection and of the
training and certification programs under subsection
(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H5DB9CACDA55C4804B4F06DC49076E378" section-type="subsequent-section"><enum>9306.</enum><header display-inline="yes-display-inline">Study of defaults and
foreclosures</header><text display-inline="no-display-inline">The Secretary of
Housing and Urban Development shall conduct an extensive study of the root
causes of default and foreclosure of home loans, using as much empirical data
as are available. The study shall also examine the role of escrow accounts in
helping prime and nonprime borrowers to avoid defaults and foreclosures, and
the role of computer registries of mortgages, including those used for trading
mortgage loans. Not later than 12 months after the date of the enactment of
this Act, the Secretary shall submit to the Congress a preliminary report
regarding the study. Not later than 24 months after such date of enactment, the
Secretary shall submit a final report regarding the results of the study, which
shall include any recommended legislation relating to the study, and
recommendations for best practices and for a process to identify populations
that need counseling the most.</text>
</section><section commented="no" display-inline="no-display-inline" id="HE9F4C30F48BF4D809E12D35F9E9481F2" section-type="subsequent-section"><enum>9307.</enum><header display-inline="yes-display-inline">Default and foreclosure database</header>
<subsection commented="no" display-inline="no-display-inline" id="H8C8ACDBDB513471D8F2330531B2239A6"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development, in consultation with the Federal agencies responsible for
regulation of banking and financial institutions involved in residential
mortgage lending and servicing, shall establish and maintain a database of
information on foreclosures and defaults on mortgage loans for one- to
four-unit residential properties and shall make such information publicly
available.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE3428803F7754C20BB0AE7C63022EDD3"><enum>(b)</enum><header display-inline="yes-display-inline">Census tract data</header><text display-inline="yes-display-inline">Information in the database shall be
collected, aggregated, and made available on a census tract basis.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC3F19FCC14794185B4C22198322C6E16"><enum>(c)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">Information collected and made available
through the database shall include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H15C3D967137040A98A003EF1CB490BC6"><enum>(1)</enum><text display-inline="yes-display-inline">the number and percentage of such mortgage
loans that are delinquent by more than 30 days;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H983583C6364B4A9FAB753A5B1C2AF0C7"><enum>(2)</enum><text display-inline="yes-display-inline">the number and percentage of such mortgage
loans that are delinquent by more than 90 days;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC78ABF76AE914865972F6F30BD89B613"><enum>(3)</enum><text display-inline="yes-display-inline">the number and percentage of such
properties that are real estate-owned;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H39578EF9D6A7421E9D8A7733C93DDF0F"><enum>(4)</enum><text display-inline="yes-display-inline">number and percentage of such mortgage
loans that are in the foreclosure process;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H681D90351A8B48BA9BCAD9E799B52058"><enum>(5)</enum><text display-inline="yes-display-inline">the number and percentage of such mortgage
loans that have an outstanding principal obligation amount that is greater than
the value of the property for which the loan was made; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B68B29DC0AC4AFD8EB19D860069AD19"><enum>(6)</enum><text display-inline="yes-display-inline">such other information as the Secretary
considers appropriate.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H81CE7319125142D883457BCEA9F7DCB8" section-type="subsequent-section"><enum>9308.</enum><header display-inline="yes-display-inline">Definitions for counseling-related
programs</header><text display-inline="no-display-inline">Section 106 of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x), as amended by the preceding provisions of this
subtitle, is further amended by adding at the end the following new
subsection:</text>
<quoted-block act-name="Housing" display-inline="no-display-inline" id="H904017E53CDC4465B223DF05CD993567" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD77BEB93917D4D0296CA9EB9A93F0AF1"><enum>(h)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD11BEC585042409F90747E1156B31D4E"><enum>(1)</enum><header display-inline="yes-display-inline">Nonprofit organization</header><text display-inline="yes-display-inline">The term <term>nonprofit
organization</term> has the meaning given such term in section 104(5) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12704(5)), except that subparagraph (D) of such
section shall not apply for purposes of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C90A8366BA546FE8EF35B6650C413A0"><enum>(2)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">The term <term>State</term> means each of
the several States, the Commonwealth of Puerto Rico, the District of Columbia,
the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands,
American Samoa, the Trust Territories of the Pacific, or any other possession
of the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCD8D8A306F1C44D2961A7970B0330FCC"><enum>(3)</enum><header display-inline="yes-display-inline">Unit of general local
government</header><text display-inline="yes-display-inline">The term
<term>unit of general local government</term> means any city, county, parish,
town, township, borough, village, or other general purpose political
subdivision of a State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0FB7FE13BF614E298C8A1A91176C0AAE"><enum>(4)</enum><header display-inline="yes-display-inline">HUD-approved counseling
agency</header><text display-inline="yes-display-inline">The term
<term>HUD-approved counseling agency</term> means a private or public nonprofit
organization that is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB71C1621F1DA4E02A8A4F034F6DD9C2B"><enum>(A)</enum><text display-inline="yes-display-inline">exempt from taxation under section 501(c)
of the Internal Revenue Code of 1986; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H70343B795BA840FE816D171EFEB3CCE6"><enum>(B)</enum><text display-inline="yes-display-inline">certified by the Secretary to provide
housing counseling services.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42EDB8DFC5B14DDBA0FDDA385E358600"><enum>(5)</enum><header display-inline="yes-display-inline">State housing finance agency</header><text display-inline="yes-display-inline">The term <term>State housing finance
agency</term> means any public body, agency, or instrumentality specifically
created under State statute that is authorised to finance activities designed
to provide housing and related facilities throughout an entire State through
land acquisition, construction, or
rehabilitation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H4C3D8B7EE36C47B48042948FE10607B6" section-type="subsequent-section"><enum>9309.</enum><header display-inline="yes-display-inline">Accountability and transparency for grant
recipients</header><text display-inline="no-display-inline">Section 106 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), as amended by the
preceding provisions of this subtitle, is further amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HF8E3A8FC3A584019844B7C8246A44940" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF610546D14F946CEADE02CDF0A86D8D1"><enum>(i)</enum><header display-inline="yes-display-inline">Accountability for recipients of covered
assistance</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9E3689FA167C4ACDBE51EC4EEFF4C524"><enum>(1)</enum><header display-inline="yes-display-inline">Tracking of funds</header><text display-inline="yes-display-inline">The Secretary shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB5DB70EB9CAC45B68B12A80D02553B5F"><enum>(A)</enum><text display-inline="yes-display-inline">develop and maintain a system to ensure
that any organization or entity that receives any covered assistance uses all
amounts of covered assistance in accordance with this section or section 9115
of the Mortgage Reform and Anti-Predatory Lending Act, as applicable, the
regulations issued under this section or such section 9115, as applicable, and
any requirements or conditions under which such amounts were provided;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAF1A696E9F804DD0933CF4D28E3BF04B"><enum>(B)</enum><text display-inline="yes-display-inline">require any organization or entity, as a
condition of receipt of any covered assistance, to agree to comply with such
requirements regarding covered assistance as the Secretary shall establish,
which shall include—</text>
<clause commented="no" display-inline="no-display-inline" id="HFEACBE6C2A614B67A6D6D4821B1B66E1"><enum>(i)</enum><text display-inline="yes-display-inline">appropriate periodic financial and grant
activity reporting, record retention, and audit requirements for the duration
of the covered assistance to the organization or entity to ensure compliance
with the limitations and requirements of this section or section 9115 of the
Mortgage Reform and Anti-Predatory Lending Act, as applicable, the regulations
under this section or such section 9115, as applicable, and any requirements or
conditions under which such amounts were provided; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF42E4C2E123A40489A14EF2418694753"><enum>(ii)</enum><text display-inline="yes-display-inline">any other requirements that the Secretary
determines are necessary to ensure appropriate administration and
compliance.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2CBCA70DB69E419080CBA5C26246365F"><enum>(2)</enum><header display-inline="yes-display-inline">Misuse of funds</header><text display-inline="yes-display-inline">If any organization or entity that receives
any covered assistance is determined by the Secretary to have used any covered
assistance in a manner that is materially in violation of this section or
section 9115 of the Mortgage Reform and Anti-Predatory Lending Act, as
applicable, the regulations issued under this section or such section 9115, as
applicable, or any requirements or conditions under which such assistance was
provided—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3A9A71DD2C3B4131B91D596A38E6D143"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary shall require that, within 12
months after the determination of such misuse, the organization or entity shall
reimburse the Secretary for such misused amounts and return to the Secretary
any such amounts that remain unused or uncommitted for use; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB3631726E2E449FBA6C8F3F6CCE361D"><enum>(B)</enum><text display-inline="yes-display-inline">such organization or entity shall be
ineligible, at any time after such determination, to apply for or receive any
further covered assistance.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The remedies under this paragraph are
in addition to any other remedies that may be available under law.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HECF89FD6ECC04B3A919E4393F8AD07B6"><enum>(3)</enum><header display-inline="yes-display-inline">Covered assistance</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>covered assistance</quote> means any grant or other financial assistance
provided under—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H706345ADA1BD48CF9510C3B325104823"><enum>(A)</enum><text display-inline="yes-display-inline">this section; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0209581574234B13AA8951F237861914"><enum>(B)</enum><text display-inline="yes-display-inline">section 9115 of the Mortgage Reform and
Anti-Predatory Lending
Act.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H4D3A8482CF92438E95D015540F0476C2" section-type="subsequent-section"><enum>9310.</enum><header display-inline="yes-display-inline">Updating and simplification of mortgage
information booklet</header><text display-inline="no-display-inline">Section 5
of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0952631672C14663A2EF5F7890F5C5CE"><enum>(1)</enum><text display-inline="yes-display-inline">in the section heading, by striking
<quote><header-in-text level="section" style="traditional">special</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="traditional">home
buying</header-in-text></quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H193474BD8DA348499246AB516C70243C"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsections (a) and (b) and
inserting the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H70B5FEDD97DF4CCD84E773202C04848D" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2EBD7428645749AB80D48B2C1C6B8255"><enum>(a)</enum><header display-inline="yes-display-inline">Preparation and distribution</header><text display-inline="yes-display-inline">The Director of the Consumer Financial
Protection Agency (hereafter in this section referred to as the
<quote>Director</quote>) shall prepare, at least once every 5 years, a booklet
to help consumers applying for federally related mortgage loans to understand
the nature and costs of real estate settlement services. The Director shall
prepare the booklet in various languages and cultural styles, as the Director
determines to be appropriate, so that the booklet is understandable and
accessible to homebuyers of different ethnic and cultural backgrounds. The
Director shall distribute such booklets to all lenders that make federally
related mortgage loans. The Director shall also distribute to such lenders
lists, organized by location, of homeownership counselors certified under
section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban
Development Act</act-name> of 1968 (12 U.S.C. 1701x(e)) for use in complying
with the requirement under subsection (c) of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H831CF5B255014EE5930B90E494D352B0"><enum>(b)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">Each booklet shall be in such form and
detail as the Director shall prescribe and, in addition to such other
information as the Director may provide, shall include in plain and
understandable language the following information:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC334984731C54161A7832386FBE1384C"><enum>(1)</enum><text display-inline="yes-display-inline">A description and explanation of the nature
and purpose of the costs incident to a real estate settlement or a federally
related mortgage loan. The description and explanation shall provide general
information about the mortgage process as well as specific information
concerning, at a minimum—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFC1E77E9DD314FE1A4F7D5661174DE4B"><enum>(A)</enum><text display-inline="yes-display-inline">balloon payments;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H31CE8F1E8343499E956B777250C469E3"><enum>(B)</enum><text display-inline="yes-display-inline">prepayment penalties;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCBA653EC6AA84A4C918B6FCB44E09BCD"><enum>(C)</enum><text display-inline="yes-display-inline">the advantages of prepayment; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H80F7B5617AA34FE98FC9E3705F31E4CA"><enum>(D)</enum><text display-inline="yes-display-inline">the trade-off between closing costs and the
interest rate over the life of the loan.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE69CCB32C6B5431EB16C290933AC4CB8"><enum>(2)</enum><text display-inline="yes-display-inline">An explanation and sample of the uniform
settlement statement required by section 4.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC603A8002DBE42A5B1436126B6DD550F"><enum>(3)</enum><text display-inline="yes-display-inline">A list and explanation of lending
practices, including those prohibited by the Truth in Lending Act or other
applicable Federal law, and of other unfair practices and unreasonable or
unnecessary charges to be avoided by the prospective buyer with respect to a
real estate settlement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6882A8293F674CDE94A9BD1E04105D15"><enum>(4)</enum><text display-inline="yes-display-inline">A list and explanation of questions a
consumer obtaining a federally related mortgage loan should ask regarding the
loan, including whether the consumer will have the ability to repay the loan,
whether the consumer sufficiently shopped for the loan, whether the loan terms
include prepayment penalties or balloon payments, and whether the loan will
benefit the borrower.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2F0F430B579648019D64436DF05C9C7F"><enum>(5)</enum><text display-inline="yes-display-inline">An explanation of the right of rescission
as to certain transactions provided by sections 125 and 129 of the Truth in
Lending Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H62BBF72D0538490399019C24925C9EF8"><enum>(6)</enum><text display-inline="yes-display-inline">A brief explanation of the nature of a
variable rate mortgage and a reference to the booklet entitled <quote>Consumer
Handbook on Adjustable Rate Mortgages</quote>, published by the Director, or to
any suitable substitute of such booklet that the Director may subsequently
adopt pursuant to such section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5AB6292C8C9E4BB892037E07DC88041B"><enum>(7)</enum><text display-inline="yes-display-inline">A brief explanation of the nature of a home
equity line of credit and a reference to the pamphlet required to be provided
under section 127A of the Truth in Lending Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0216ED90E5E4D76922DE096BF947618"><enum>(8)</enum><text display-inline="yes-display-inline">Information about homeownership counseling
services made available pursuant to section 106(a)(4) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(a)(4)), a recommendation that the consumer use such
services, and notification that a list of certified providers of homeownership
counseling in the area, and their contact information, is available.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDD6948831AD349BA91D9F13419BE55D9"><enum>(9)</enum><text display-inline="yes-display-inline">An explanation of the nature and purpose of
escrow accounts when used in connection with loans secured by residential real
estate and the requirements under section 10 of this Act regarding such
accounts.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB480782269A948D5A48ED0A167AEC23F"><enum>(10)</enum><text display-inline="yes-display-inline">An explanation of the choices available to
buyers of residential real estate in selecting persons to provide necessary
services incidental to a real estate settlement.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11B65CEF6AD748D38DE49AE52B67447A"><enum>(11)</enum><text display-inline="yes-display-inline">An explanation of a consumer’s
responsibilities, liabilities, and obligations in a mortgage
transaction.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5DCAFE5AE3424C729D3FD4B24A688D7D"><enum>(12)</enum><text display-inline="yes-display-inline">An explanation of the nature and purpose of
real estate appraisals, including the difference between an appraisal and a
home inspection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9680C401B4DF4A05AB7EA64041E8F7A2"><enum>(13)</enum><text display-inline="yes-display-inline">Notice that the Office of Housing of the
Department of Housing and Urban Development has made publicly available a
brochure regarding loan fraud and a World Wide Web address and toll-free
telephone number for obtaining the brochure.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">The booklet prepared pursuant to
this section shall take into consideration differences in real estate
settlement procedures that may exist among the several States and territories
of the United States and among separate political subdivisions within the same
State and
territory.</continuation-text></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB79787C7E9DE45A5BB42A48682FF6EC9"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (c), by inserting at the end
the following new sentence: <quote>Each lender shall also include with the
booklet a reasonably complete or updated list of homeownership counselors who
are certified pursuant to section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (12
U.S.C. 1701x(e)) and located in the area of the lender.</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0362C583DA44FD88D12AF2C8EB2F79B"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (d), by inserting after the
period at the end of the first sentence the following: <quote>The lender shall
provide the HUD-issued booklet in the version that is most appropriate for the
person receiving it.</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H583B439DD9504FCB8207449F6E77D7BA" section-type="subsequent-section"><enum>9311.</enum><header display-inline="yes-display-inline">Home inspection counseling</header>
<subsection commented="no" display-inline="no-display-inline" id="H293806D663DA4FE08CBFCD94B69D50C1"><enum>(a)</enum><header display-inline="yes-display-inline">Public outreach</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2BA9D30CB8F84CFAAFF75BE50CA7B0F1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development (in this section referred to as the <quote>Secretary</quote>) shall
take such actions as may be necessary to inform potential homebuyers of the
availability and importance of obtaining an independent home inspection. Such
actions shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF57152F965A64CE9A2359EAFA7D8D455"><enum>(A)</enum><text display-inline="yes-display-inline">publication of the HUD/FHA form HUD
92564–CN entitled <quote>For Your Protection: Get a Home Inspection</quote>, in
both English and Spanish languages;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB8829CF9890D419BA3220D9B4DF34B06"><enum>(B)</enum><text display-inline="yes-display-inline">publication of the HUD/FHA booklet entitled
<quote>For Your Protection: Get a Home Inspection</quote>, in both English and
Spanish languages;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H848B012D375240C9926529E815F80E7E"><enum>(C)</enum><text display-inline="yes-display-inline">development and publication of a HUD
booklet entitled <quote>For Your Protection—Get a Home Inspection</quote> that
does not reference FHA-insured homes, in both English and Spanish languages;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H348458F6305F4CB481A5F9F9A0DE1773"><enum>(D)</enum><text display-inline="yes-display-inline">publication of the HUD document entitled
<quote>Ten Important Questions To Ask Your Home Inspector</quote>, in both
English and Spanish languages.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8DB1312568364CC8A05DB6460DA5C3A6"><enum>(2)</enum><header display-inline="yes-display-inline">Availability</header><text display-inline="yes-display-inline">The Secretary shall make the materials
specified in paragraph (1) available for electronic access and, where
appropriate, inform potential homebuyers of such availability through home
purchase counseling public service announcements and toll-free telephone
hotlines of the Department of Housing and Urban Development. The Secretary
shall give special emphasis to reaching first-time and low-income homebuyers
with these materials and efforts.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H557613B6954D43E5961917A55F252521"><enum>(3)</enum><header display-inline="yes-display-inline">Updating</header><text display-inline="yes-display-inline">The Secretary may periodically update and
revise such materials, as the Secretary determines to be appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H830C6E227511414E99342436764E9D4E"><enum>(b)</enum><header display-inline="yes-display-inline">Requirement for FHA-approved
lenders</header><text display-inline="yes-display-inline">Each mortgagee
approved for participation in the mortgage insurance programs under title II of
the National Housing Act shall provide prospective homebuyers, at first
contact, whether upon pre-qualification, pre-approval, or initial application,
the materials specified in subparagraphs (A), (B), and (D) of subsection
(a)(1).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0F6B3DF501A44CD4A919EA7AE09FB589"><enum>(c)</enum><header display-inline="yes-display-inline">Requirements for HUD-approved counseling
agencies</header><text display-inline="yes-display-inline">Each counseling
agency certified pursuant by the Secretary to provide housing counseling
services shall provide each of their clients, as part of the home purchase
counseling process, the materials specified in subparagraphs (C) and (D) of
subsection (a)(1).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF665B29346614542BB94DEA17CFE15DF"><enum>(d)</enum><header display-inline="yes-display-inline">Training</header><text display-inline="yes-display-inline">Training provided the Department of Housing
and Urban Development for housing counseling agencies, whether such training is
provided directly by the Department or otherwise, shall include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2EC6B0591F7A466F983F450815B57FA9"><enum>(1)</enum><text display-inline="yes-display-inline">providing information on counseling
potential homebuyers of the availability and importance of getting an
independent home inspection;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8F59687A1224CD7B2B81E38FD6D86C1"><enum>(2)</enum><text display-inline="yes-display-inline">providing information about the home
inspection process, including the reasons for specific inspections such as
radon and lead-based paint testing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38EF08D3FABF4CEBA9069F5C0EC2F861"><enum>(3)</enum><text display-inline="yes-display-inline">providing information about advising
potential homebuyers on how to locate and select a qualified home inspector;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H406D620A129A427B87B4DDFFE51799A9"><enum>(4)</enum><text display-inline="yes-display-inline">review of home inspection public outreach
materials of the Department.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H6AC78CF15A1349F2A5CFF6F39FF525A4" section-type="subsequent-section"><enum>9312.</enum><header display-inline="yes-display-inline">Warnings to homeowners of foreclosure
rescue scams</header>
<subsection commented="no" display-inline="no-display-inline" id="H461435017C6D4A6E9663BA2595A32854"><enum>(a)</enum><header display-inline="yes-display-inline">Assistance to NRC</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
of any amounts made available for any fiscal year pursuant to section
106(a)(4)(F) of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(a)(4)(F)) (as added by section 9304 of this title), 10 percent shall be
used only for assistance to the Neighborhood Reinvestment Corporation for
activities, in consultation with servicers of residential mortgage loans, to
provide notice to borrowers under such loans who are delinquent with respect to
payments due under such loans that makes such borrowers aware of the dangers of
fraudulent activities associated with foreclosure.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9506E171A8154875A013E5A1B12469D2"><enum>(b)</enum><header display-inline="yes-display-inline">Notice</header><text display-inline="yes-display-inline">The Neighborhood Reinvestment Corporation,
in consultation with servicers of residential mortgage loans, shall use the
amounts provided pursuant to subsection (a) to carry out activities to inform
borrowers under residential mortgage loans—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H619BBFB651E04FC4B8BE341291DB55D5"><enum>(1)</enum><text display-inline="yes-display-inline">that the foreclosure process is complex and
can be confusing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93874FDFDCD94109A1BE3A083A8FACD6"><enum>(2)</enum><text display-inline="yes-display-inline">that the borrower may be approached during
the foreclosure process by persons regarding saving their home and they should
use caution in any such dealings;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE9A4B714207748C69F14977B989077BF"><enum>(3)</enum><text display-inline="yes-display-inline">that there are Federal Government and
nonprofit agencies that may provide information about the foreclosure process,
including the Department of Housing and Urban Development;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D975427393448C4B3BD11A558F3B6EF"><enum>(4)</enum><text display-inline="yes-display-inline">that they should contact their lender
immediately, contact the Department of Housing and Urban Development to find a
housing counseling agency certified by the Department to assist in avoiding
foreclosure, or visit the Department’s website regarding tips for avoiding
foreclosure; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H55BE6125993D4481961C3F458107A9B2"><enum>(5)</enum><text display-inline="yes-display-inline">of the telephone number of the loan
servicer or successor, the telephone number of the Department of Housing and
Urban Development housing counseling line, and the Uniform Resource Locators
(URLs) for the Department of Housing and Urban Development Web sites for
housing counseling and for tips for avoiding foreclosure.</text>
</paragraph></subsection></section></subtitle><subtitle commented="no" id="HB5BCDCF8FB6949C3903825DAFA1B89DE" level-type="subsequent"><enum>E</enum><header display-inline="yes-display-inline">Mortgage Servicing</header>
<section commented="no" display-inline="no-display-inline" id="H22155D29BAEF49A8ACA943FF080993A4" section-type="subsequent-section"><enum>9401.</enum><header display-inline="yes-display-inline">Escrow and impound accounts relating to
certain consumer credit transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="HA5DA0405AB294D4B8B46974F48836650"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129C (as added by
section 9101) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H09143560E33B4E639E9CC854724B846D" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HEB8786F452554155BDBFBD2A1F138BBA" section-type="subsequent-section"><enum>129D.</enum><header display-inline="yes-display-inline">Escrow or impound accounts relating to
certain consumer credit transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="H31087DB4D89A498FB57CC6FD67F30184"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b), (c),
or (d) , a creditor, in connection with the formation or consummation of a
consumer credit transaction secured by a first lien on the principal dwelling
of the consumer, other than a consumer credit transaction under an open end
credit plan or a reverse mortgage, shall establish, before the consummation of
such transaction, an escrow or impound account for the payment of taxes and
hazard insurance, and, if applicable, flood insurance, mortgage insurance,
ground rents, and any other required periodic payments or premiums with respect
to the property or the loan terms, as provided in, and in accordance with, this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9E8BBA76989A457EA2D0C70F201733BA"><enum>(b)</enum><header display-inline="yes-display-inline">When required</header><text display-inline="yes-display-inline">No impound, trust, or other type of account
for the payment of property taxes, insurance premiums, or other purposes
relating to the property may be required as a condition of a real property sale
contract or a loan secured by a first deed of trust or mortgage on the
principal dwelling of the consumer, other than a consumer credit transaction
under an open end credit plan or a reverse mortgage, except when—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEA17D85C53BC431AA8380925DED8E92E"><enum>(1)</enum><text display-inline="yes-display-inline">any such impound, trust, or other type of
escrow or impound account for such purposes is required by Federal or State
law;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H429C1B3F770E4CF1B477AD8E6C610EEF"><enum>(2)</enum><text display-inline="yes-display-inline">a loan is made, guaranteed, or insured by a
State or Federal governmental lending or insuring agency;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B6E3DEBDD714AB79771264F9F19C63A"><enum>(3)</enum><text display-inline="yes-display-inline">the transaction is secured by a first
mortgage or lien on the consumer’s principal dwelling having an original
principal obligation amount that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H89C86AD14DB74B5486970557CE0654ED"><enum>(A)</enum><text display-inline="yes-display-inline">does not exceed the amount of the maximum
limitation on the original principal obligation of mortgage in effect for a
residence of the applicable size, as of the date such interest rate set,
pursuant to the sixth sentence of section 305(a)(2) the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the annual percentage rate
will exceed the average prime offer rate for a comparable transaction by 1.5 or
more percentage points; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H14E64C7C23D04DF3BA3312389093B708"><enum>(B)</enum><text display-inline="yes-display-inline">exceeds the amount of the maximum
limitation on the original principal obligation of mortgage in effect for a
residence of the applicable size, as of the date such interest rate set,
pursuant to the sixth sentence of section 305(a)(2) the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the annual percentage rate
will exceed the average prime offer rate for a comparable transaction by 2.5 or
more percentage points; or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0ABE257B45F4CCDB95CE2C25E308972"><enum>(4)</enum><text display-inline="yes-display-inline">so required pursuant to regulation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA716DF44662249BF972BDA0B169860EF"><enum>(c)</enum><header display-inline="yes-display-inline">Duration of mandatory escrow or impound
account</header><text display-inline="yes-display-inline">An escrow or impound
account established pursuant to subsection (b), shall remain in existence for a
minimum period of 5 years, beginning with the date of the consummation of the
loan, and until such borrower has sufficient equity in the dwelling securing
the consumer credit transaction so as to no longer be required to maintain
private mortgage insurance, or such other period as may be provided in
regulations to address situations such as borrower delinquency, unless the
underlying mortgage establishing the account is terminated.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE6E1AAB0AAA147C2B450225A1C71DE9F"><enum>(d)</enum><header display-inline="yes-display-inline">Limited exemptions for loans secured by
shares in a cooperative and for certain condominium units</header><text display-inline="yes-display-inline">Escrow accounts need not be established for
loans secured by shares in a cooperative. Insurance premiums need not be
included in escrow accounts for loans secured by condominium units, where the
condominium association has an obligation to the condominium unit owners to
maintain a master policy insuring condominium units.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF50149F8AAC348B7B4F17455FB08652E"><enum>(e)</enum><header display-inline="yes-display-inline">Clarification on escrow accounts for loans
not meeting statutory test</header><text display-inline="yes-display-inline">For mortgages not covered by the
requirements of subsection (b), no provision of this section shall be construed
as precluding the establishment of an impound, trust, or other type of account
for the payment of property taxes, insurance premiums, or other purposes
relating to the property—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEF217764897743D58EBF09D9E4578681"><enum>(1)</enum><text display-inline="yes-display-inline">on terms mutually agreeable to the parties
to the loan;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA5D6A2C40224B40BE5B41ED6CE90C34"><enum>(2)</enum><text display-inline="yes-display-inline">at the discretion of the lender or
servicer, as provided by the contract between the lender or servicer and the
borrower; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC84CABD19AFC4519A46266B8CF186F28"><enum>(3)</enum><text display-inline="yes-display-inline">pursuant to the requirements for the
escrowing of flood insurance payments for regulated lending institutions in
section 102(d) of the Flood Disaster Protection Act of 1973.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H270ADCA720EB4035B4E9286AF3C82EC6"><enum>(f)</enum><header display-inline="yes-display-inline">Administration of mandatory escrow or
impound accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2D88C0C3489746CEB97670CEF8E997F2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as may otherwise be provided for in
this title or in regulations prescribed by the Board, escrow or impound
accounts established pursuant to subsection (b) shall be established in a
federally insured depository institution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H932B21E1ECFE4C76B6296D9DC446E298"><enum>(2)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">Except as provided in this section or
regulations prescribed under this section, an escrow or impound account subject
to this section shall be administered in accordance with—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H62E41A7773F743B786FC4539C93D2CAD"><enum>(A)</enum><text display-inline="yes-display-inline">the Real Estate Settlement Procedures Act
of 1974 and regulations prescribed under such Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9FC073FC5B2412D98CFFBCB39BE3B36"><enum>(B)</enum><text display-inline="yes-display-inline">the Flood Disaster Protection Act of 1973
and regulations prescribed under such Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC451E6014D4B4AF788FEBC9CFB6848B9"><enum>(C)</enum><text display-inline="yes-display-inline">the law of the State, if applicable, where
the real property securing the consumer credit transaction is located.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6384B975972746CA940D6557F1D0CAFC"><enum>(3)</enum><header display-inline="yes-display-inline">Applicability of payment of
interest</header><text display-inline="yes-display-inline">If prescribed by
applicable State or Federal law, each creditor shall pay interest to the
consumer on the amount held in any impound, trust, or escrow account that is
subject to this section in the manner as prescribed by that applicable State or
Federal law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D93589286C4421ABF5C4372E0E673BB"><enum>(4)</enum><header display-inline="yes-display-inline">Penalty coordination with
RESPA</header><text display-inline="yes-display-inline">Any action or omission
on the part of any person which constitutes a violation of the Real Estate
Settlement Procedures Act of 1974 or any regulation prescribed under such Act
for which the person has paid any fine, civil money penalty, or other damages
shall not give rise to any additional fine, civil money penalty, or other
damages under this section, unless the action or omission also constitutes a
direct violation of this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D6C5FDF2E8B4B59B642C7CE4D041B43"><enum>(g)</enum><header display-inline="yes-display-inline">Disclosures relating to mandatory escrow or
impound account</header><text display-inline="yes-display-inline">In the case
of any impound, trust, or escrow account that is subject to this section, the
creditor shall disclose by written notice to the consumer at least 3 business
days before the consummation of the consumer credit transaction giving rise to
such account or in accordance with timeframes established in prescribed
regulations the following information:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4FC4C67C01034AD6BC57F224C1508923"><enum>(1)</enum><text display-inline="yes-display-inline">The fact that an escrow or impound account
will be established at consummation of the transaction.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3FEF4F2E26F4DFBB4DE34FF5CEB87B2"><enum>(2)</enum><text display-inline="yes-display-inline">The amount required at closing to initially
fund the escrow or impound account.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8FC3EF21C9EF48A18992BBB1254CB09B"><enum>(3)</enum><text display-inline="yes-display-inline">The amount, in the initial year after the
consummation of the transaction, of the estimated taxes and hazard insurance,
including flood insurance, if applicable, and any other required periodic
payments or premiums that reflects, as appropriate, either the taxable assessed
value of the real property securing the transaction, including the value of any
improvements on the property or to be constructed on the property (whether or
not such construction will be financed from the proceeds of the transaction) or
the replacement costs of the property.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H46716D9406174C09B730AED72D464F57"><enum>(4)</enum><text display-inline="yes-display-inline">The estimated monthly amount payable to be
escrowed for taxes, hazard insurance (including flood insurance, if applicable)
and any other required periodic payments or premiums.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA6B9B3A499F7489A8D47C8D0CDC44A9C"><enum>(5)</enum><text display-inline="yes-display-inline">The fact that, if the consumer chooses to
terminate the account at the appropriate time in the future, the consumer will
become responsible for the payment of all taxes, hazard insurance, and flood
insurance, if applicable, as well as any other required periodic payments or
premiums on the property unless a new escrow or impound account is
established.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB337410E449542698C1C94F41BE94FE5"><enum>(6)</enum><text display-inline="yes-display-inline">Such other information as the Federal
banking agencies jointly determine necessary for the protection of the
consumer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF82094554ED54F2A899987F276F1FE64"><enum>(h)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEBFB5B34AA784916B22882D09B594BC1"><enum>(1)</enum><header display-inline="yes-display-inline">Flood insurance</header><text display-inline="yes-display-inline">The term <term>flood insurance</term> means
flood insurance coverage provided under the national flood insurance program
pursuant to the National Flood Insurance Act of 1968.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDF80C127B8074C9DAB961A6814AE24D8"><enum>(2)</enum><header display-inline="yes-display-inline">Hazard insurance</header><text display-inline="yes-display-inline">The term <term>hazard insurance</term>
shall have the same meaning as provided for <term>hazard insurance</term>,
<term>casualty insurance</term>, <term>homeowner’s insurance</term>, or other
similar term under the law of the State where the real property securing the
consumer credit transaction is
located.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD2C5D7BAE0ED4F0BA523AA96B905832B"><enum>(b)</enum><header display-inline="yes-display-inline">Implementation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3F022FA8A4AD4427B217CF234C8FC42E"><enum>(1)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, the Federal Deposit Insurance Corporation, the National
Credit Union Administration Board, (hereafter in this title referred to as the
<quote>Federal banking agencies</quote>) and the Federal Trade Commission shall
prescribe, in final form, such regulations as determined to be necessary to
implement the amendments made by subsection (a) before the end of the 180-day
period beginning on the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04088427D49046C9BEBC747BEB0B4328"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall only apply to covered mortgage loans consummated after the
end of the 1-year period beginning on the date of the publication of final
regulations in the Federal Register.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAC94B48ED9B64AB0876588842C418837"><enum>(c)</enum><header display-inline="yes-display-inline">Clerical Amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to section
129C (as added by section 9101) the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H77D90817F99D4625900274BA5969FDAC" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">129D. Escrow or impound
accounts relating to certain consumer credit
transactions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBD531E60BDA84C399BCD5C00534573A4" section-type="subsequent-section"><enum>9402.</enum><header display-inline="yes-display-inline">Disclosure notice required for consumers
who waive escrow services</header>
<subsection commented="no" display-inline="no-display-inline" id="H8E7C5C36CEB14DDC8048E90B64DA8E8F"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 129D of the Truth in Lending Act
(as added by section 9401) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1CD2C9C64CAC4C3F942149A152174CF1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H17F5AD5972234C519C7FD2B20769EC58"><enum>(i)</enum><header display-inline="yes-display-inline">Disclosure notice required for consumers
who waive escrow services</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6D90C5B8F40A4A3BA5561DAAC8EC33B8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H82F6124F1E894803AAF8D9A26DB956A5"><enum>(A)</enum><text display-inline="yes-display-inline">an impound, trust, or other type of account
for the payment of property taxes, insurance premiums, or other purposes
relating to real property securing a consumer credit transaction is not
established in connection with the transaction; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0352E1DE757F48D48989887028DAED73"><enum>(B)</enum><text display-inline="yes-display-inline">a consumer chooses, and provides written
notice to the creditor or servicer of such choice, at any time after such an
account is established in connection with any such transaction and in
accordance with any statute, regulation, or contractual agreement, to close
such account,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">the creditor or servicer shall
provide a timely and clearly written disclosure to the consumer that advises
the consumer of the responsibilities of the consumer and implications for the
consumer in the absence of any such account.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA6DEBCB688FC4F28AC63C5A3C20377A6"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure requirements</header><text display-inline="yes-display-inline">Any disclosure provided to a consumer under
paragraph (1) shall include the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4B91E7973CFC41DE88A3F804847B19DA"><enum>(A)</enum><text display-inline="yes-display-inline">Information concerning any applicable fees
or costs associated with either the non-establishment of any such account at
the time of the transaction, or any subsequent closure of any such
account.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCA10BCF0C7304C4E80F1CE212307D6FE"><enum>(B)</enum><text display-inline="yes-display-inline">A clear and prominent notice that the
consumer is responsible for personally and directly paying the non-escrowed
items, in addition to paying the mortgage loan payment, in the absence of any
such account, and the fact that the costs for taxes, insurance, and related
fees can be substantial.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8055DD2A96F24B7DA8137476A2350EDA"><enum>(C)</enum><text display-inline="yes-display-inline">A clear explanation of the consequences of
any failure to pay non-escrowed items, including the possible requirement for
the forced placement of insurance by the creditor or servicer and the
potentially higher cost (including any potential commission payments to the
servicer) or reduced coverage for the consumer in the event of any such
creditor-placed insurance.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2D253B38493F4D66AA8A681000D10628"><enum>(D)</enum><text display-inline="yes-display-inline">Such other information as the Federal
banking agencies jointly determine necessary for the protection of the
consumer.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0CCBD282B98246C980C5104037DBE3B1"><enum>(b)</enum><header display-inline="yes-display-inline">Implementation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0F861CCB1B4C4A638791C26880EFC2B7"><enum>(1)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Federal banking agencies and the
Federal Trade Commission shall prescribe, in final form, such regulations as
such agencies determine to be necessary to implement the amendments made by
subsection (a) before the end of the 180-day period beginning on the date of
the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H87E00D8A667A4DEFA60F4A7630C9599D"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall only apply in accordance with the regulations established
in paragraph (1) and beginning on the date occurring 180-days after the date of
the publication of final regulations in the Federal Register.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD5CE5E63215A47FF9FDB9D2A92C1344D" section-type="subsequent-section"><enum>9403.</enum><header display-inline="yes-display-inline">Real Estate Settlement Procedures Act of
1974 amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="H22524F84753F489BACE890638E772C92"><enum>(a)</enum><header display-inline="yes-display-inline">Servicer prohibitions</header><text display-inline="yes-display-inline">Section 6 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H8B9F73B73197496EA8C6B1847C6BA136" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEF9E2564911B402AB4965B796741B443"><enum>(k)</enum><header display-inline="yes-display-inline">Servicer prohibitions</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1D6EC172A0584ACEA30F91CB10AFAB6A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A servicer of a federally related mortgage
shall not—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H688B49663FDF423C9A92D5403EC61600"><enum>(A)</enum><text display-inline="yes-display-inline">obtain force-placed hazard insurance unless
there is a reasonable basis to believe the borrower has failed to comply with
the loan contract’s requirements to maintain property insurance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD760EF5EFBCC45498B4EB6A889F70850"><enum>(B)</enum><text display-inline="yes-display-inline">charge fees for responding to valid
qualified written requests (as defined in regulations which the Secretary shall
prescribe) under this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3C3F252917F740239893717B894A5A28"><enum>(C)</enum><text display-inline="yes-display-inline">fail to take timely action to respond to a
borrower’s requests to correct errors relating to allocation of payments, final
balances for purposes of paying off the loan, or avoiding foreclosure, or other
standard servicer’s duties;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA2E9B1DD11B4C27828A797B3B73245C"><enum>(D)</enum><text display-inline="yes-display-inline">fail to respond within 10 business days to
a request from a borrower to provide the identity, address, and other relevant
contact information about the owner assignee of the loan; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEDB1EB16C070422B86196BA61BB1BB42"><enum>(E)</enum><text display-inline="yes-display-inline">fail to comply with any other obligation
found by the Secretary, by regulation, to be appropriate to carry out the
consumer protection purposes of this Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F494FD363BA4550A58B1AB7B29215CA"><enum>(2)</enum><header display-inline="yes-display-inline">Force-placed insurance
defined</header><text display-inline="yes-display-inline">For purposes of this
subsection and subsections (l) and (m), the term <term>force-placed
insurance</term> means hazard insurance coverage obtained by a servicer of a
federally related mortgage when the borrower has failed to maintain or renew
hazard insurance on such property as required of the borrower under the terms
of the mortgage.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1139DA07FB19435B998876AF311E98C2"><enum>(l)</enum><header display-inline="yes-display-inline">Requirements for force-placed
insurance</header><text display-inline="yes-display-inline">A servicer of a
federally related mortgage shall not be construed as having a reasonable basis
for obtaining force-placed insurance unless the requirements of this subsection
have been met.</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9FFBB0F3CCB14F3E8C858E599DE9755F"><enum>(1)</enum><header display-inline="yes-display-inline">Written notices to borrower</header><text display-inline="yes-display-inline">A servicer may not impose any charge on any
borrower for force-placed insurance with respect to any property securing a
federally related mortgage unless—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCB76F3F845554D0C87D6545399AC5924"><enum>(A)</enum><text display-inline="yes-display-inline">the servicer has sent, by first-class mail,
a written notice to the borrower containing—</text>
<clause commented="no" display-inline="no-display-inline" id="HDB78F546F7DD456895ABCE3E0A603488"><enum>(i)</enum><text display-inline="yes-display-inline">a reminder of the borrower’s obligation to
maintain hazard insurance on the property securing the federally related
mortgage;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H26EB089BF88049C28DE971068BDADEAB"><enum>(ii)</enum><text display-inline="yes-display-inline">a statement that the servicer does not have
evidence of insurance coverage of such property;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB45631B26F13402B95ABA6C84142AE7C"><enum>(iii)</enum><text display-inline="yes-display-inline">a clear and conspicuous statement of the
procedures by which the borrower may demonstrate that the borrower already has
insurance coverage; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H966B9AC362244E84BBF5DE47A7B39630"><enum>(iv)</enum><text display-inline="yes-display-inline">a statement that the servicer may obtain
such coverage at the borrower’s expense if the borrower does not provide such
demonstration of the borrower’s existing coverage in a timely manner;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7F964506DEB460591015A672226510C"><enum>(B)</enum><text display-inline="yes-display-inline">the servicer has sent, by first-class mail,
a second written notice, at least 30 days after the mailing of the notice under
subparagraph (A) that contains all the information described in each clause of
such subparagraph; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3085F03586F14B9BA317FB03819F167A"><enum>(C)</enum><text display-inline="yes-display-inline">the servicer has not received from the
borrower any demonstration of hazard insurance coverage for the property
securing the mortgage by the end of the 15-day period beginning on the date the
notice under subparagraph (B) was sent by the servicer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8803062363F9492690D5CD55E5FC503E"><enum>(2)</enum><header display-inline="yes-display-inline">Sufficiency of demonstration</header><text display-inline="yes-display-inline">A servicer of a federally related mortgage
shall accept any reasonable form of written confirmation from a borrower of
existing insurance coverage, which shall include the existing insurance policy
number along with the identity of, and contact information for, the insurance
company or agent.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27FDC8B24AD5420BAF0B4A8433F2C01F"><enum>(3)</enum><header display-inline="yes-display-inline">Termination of force-placed
insurance</header><text display-inline="yes-display-inline">Within 15 days of
the receipt by a servicer of confirmation of a borrower’s existing insurance
coverage, the servicer shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA1C9A4AE61234808A3B12959ADA676DF"><enum>(A)</enum><text display-inline="yes-display-inline">terminate the force-placed insurance;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H79D8E1EAF09D4FFFA26AA59EC9BA7B4F"><enum>(B)</enum><text display-inline="yes-display-inline">refund to the consumer all force-placed
insurance premiums paid by the borrower during any period during which the
borrower’s insurance coverage and the force-placed insurance coverage were each
in effect, and any related fees charged to the consumer’s account with respect
to the force-placed insurance during such period.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H48EBF3D5A7954AE4B60FFA700E5EFF36"><enum>(4)</enum><header display-inline="yes-display-inline">Clarification with respect to Flood
Disaster Protection Act</header><text display-inline="yes-display-inline">No
provision of this section shall be construed as prohibiting a servicer from
providing simultaneous or concurrent notice of a lack of flood insurance
pursuant to section 102(e) of the Flood Disaster Protection Act of 1973.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAD098AC774CB41F98832DDCEFFDA25EE"><enum>(m)</enum><header display-inline="yes-display-inline">Limitations on force-placed insurance
charges</header><text display-inline="yes-display-inline">All charges for
force-placed insurance premiums shall be bona fide and reasonable in
amount.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1F0A5E3EF51440BE99CF3A87F80ECC01"><enum>(b)</enum><header display-inline="yes-display-inline">Increase in penalty amounts</header><text display-inline="yes-display-inline">Section 6(f) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(f)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF1F8AE5FF63A4B458E38CA1F467BC20C"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraphs (1)(B) and (2)(B), by
striking <quote>$1,000</quote> each place such term appears and inserting
<quote>$2,000</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H18CEE200A7154F009CAFCF3D2E815FF8"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)(B)(i), by striking
<quote>$500,000</quote> and inserting <quote>$1,000,000</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA61775D5219B47E3A6C21F643C6ED3E4"><enum>(c)</enum><header display-inline="yes-display-inline">Decrease in response times</header><text display-inline="yes-display-inline">Section 6(e) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3906BA13E54E496BB55C155195C4374C"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), by striking <quote>20
days</quote> and inserting <quote>5 days</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D46B03476D544C195E957FDF2D2ED4B"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>60
days</quote> and inserting <quote>30 days</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H838AC56E6B0F4262B6E1BA40CF750BFC"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8D2A6CC19BA4461D8D91048F15DD258C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCF34B2F7FB30475F84197C4AD5349B15"><enum>(4)</enum><header display-inline="yes-display-inline">Limited extension of response
time</header><text display-inline="yes-display-inline">The 30-day period
described in paragraph (2) may be extended for not more than 15 days if, before
the end of such 30-day period, the servicer notifies the borrower of the
extension and the reasons for the delay in
responding.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCFDDC4F84D7342D2B654C10ECC4DBD55"><enum>(d)</enum><header display-inline="yes-display-inline">Prompt refund of escrow accounts upon
payoff</header><text display-inline="yes-display-inline">Section 6(g) of the
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(g)) is amended by
adding at the end the following new sentence: <quote>Any balance in any such
account that is within the servicer’s control at the time the loan is paid off
shall be promptly returned to the borrower within 20 business days or credited
to a similar account for a new mortgage loan to the borrower with the same
lender.</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBB755DFB4C2F4807949FE26163D09682" section-type="subsequent-section"><enum>9404.</enum><header display-inline="yes-display-inline">Truth in Lending Act amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="HF67D7FA53A904C1EA9C5DCF73C19696A"><enum>(a)</enum><header display-inline="yes-display-inline">Requirements for prompt crediting of home
loan payments</header><text display-inline="yes-display-inline">Chapter 2 of
the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after
section 129E (as added by section 9502) the following new section (and by
amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H8136280086A64E81903D2C85EEBED2F0" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H00F6E9DC940148E6BC4FF4B8CC71D3C3" section-type="subsequent-section"><enum>129F.</enum><header display-inline="yes-display-inline">Requirements for prompt crediting of home
loan payments</header>
<subsection commented="no" display-inline="no-display-inline" id="HF60944CF9A45472380880D5A1453625B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In connection with a consumer credit
transaction secured by a consumer’s principal dwelling, no servicer shall fail
to credit a payment to the consumer’s loan account as of the date of receipt,
except when a delay in crediting does not result in any charge to the consumer
or in the reporting of negative information to a consumer reporting agency,
except as required in subsection (b).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF76A29E1A7BE4F2F808015B9F294A0B6"><enum>(b)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">If a servicer specifies in writing
requirements for the consumer to follow in making payments, but accepts a
payment that does not conform to the requirements, the servicer shall credit
the payment as of 5 days after
receipt.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAF15E1A1314E424AA06D7FCE64F8A3F7"><enum>(b)</enum><header display-inline="yes-display-inline">Requests for payoff amounts</header><text display-inline="yes-display-inline">Chapter 2 of such Act is further amended by
inserting after section 129F (as added by subsection (a)) the following new
section (and by amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H750794E003034ECCAAEA1500647F132D" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H90EFDBAC13F14AC9837FA94BDD40974D" section-type="subsequent-section"><enum>129G.</enum><header display-inline="yes-display-inline">Requests for payoff amounts of home
loan</header><text display-inline="no-display-inline">A creditor or servicer of
a home loan shall send an accurate payoff balance within a reasonable time, but
in no case more than 7 business days, after the receipt of a written request
for such balance from or on behalf of the
borrower.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA544E14794F541849E6ADAD461B62E44" section-type="subsequent-section"><enum>9405.</enum><header display-inline="yes-display-inline">Escrows included in repayment
analysis</header><text display-inline="no-display-inline">Section 128(b) of the
Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HEB0CE73C62A04497BA9EECAF7AE94ACC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HBB0F1B99CCD54F4EB7461B79E63F9DA4"><enum>(4)</enum><header display-inline="yes-display-inline">Repayment analysis required to include
escrow payments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H751624046F204C62902CBCA5561E5BF4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any consumer credit
transaction secured by a first mortgage or lien on the principal dwelling of
the consumer, other than a consumer credit transaction under an open end credit
plan or a reverse mortgage, for which an impound, trust, or other type of
account has been or will be established in connection with the transaction for
the payment of property taxes, hazard and flood (if any) insurance premiums, or
other periodic payments or premiums with respect to the property, the
information required to be provided under subsection (a) with respect to the
number, amount, and due dates or period of payments scheduled to repay the
total of payments shall take into account the amount of any monthly payment to
such account for each such repayment in accordance with section 10(a)(2) of the
Real Estate Settlement Procedures Act of 1974.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD127E334F6DD426FB6FB232F0BD7AC21"><enum>(B)</enum><header display-inline="yes-display-inline">Assessment value</header><text display-inline="yes-display-inline">The amount taken into account under
subparagraph (A) for the payment of property taxes, hazard and flood (if any)
insurance premiums, or other periodic payments or premiums with respect to the
property shall reflect the taxable assessed value of the real property securing
the transaction after the consummation of the transaction, including the value
of any improvements on the property or to be constructed on the property
(whether or not such construction will be financed from the proceeds of the
transaction), if known, and the replacement costs of the property for hazard
insurance, in the initial year after the
transaction.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle commented="no" id="HF364F84B305A404BA6B40E204DC8E756" level-type="subsequent"><enum>F</enum><header display-inline="yes-display-inline">Appraisal Activities</header>
<section commented="no" display-inline="no-display-inline" id="HAFA5EB6B006C444997BEC6F5783C07F9" section-type="subsequent-section"><enum>9501.</enum><header display-inline="yes-display-inline">Property appraisal
requirements</header><text display-inline="no-display-inline">Chapter 2 of the
Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after
129G (as added by section 9404(b)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HF8611F8DFA76496897C9F052F799E320" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HF4FDAFF8C5804B179E628A0F7794720D" section-type="subsequent-section"><enum>129H</enum><header display-inline="yes-display-inline">Property appraisal requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H9D5AC785FC164A5B9F7296CF79CBA0AC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A creditor may not extend credit in the
form of a subprime mortgage to any consumer without first obtaining a written
appraisal of the property to be mortgaged prepared in accordance with the
requirements of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDA6A46ED2D5444309642F9D2683B1D3B"><enum>(b)</enum><header display-inline="yes-display-inline">Appraisal requirements</header><text display-inline="yes-display-inline"></text>
<paragraph commented="no" display-inline="no-display-inline" id="H61DE08C1723D4DF1B628E7F6AA1488D2"><enum>(1)</enum><header display-inline="yes-display-inline">Physical property visit</header><text display-inline="yes-display-inline">An appraisal of property to be secured by a
subprime mortgage does not meet the requirement of this section unless it is
performed by a qualified appraiser who conducts a physical property visit of
the interior of the mortgaged property.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H76A723804E614D5281FA6D801848CA2A"><enum>(2)</enum><header display-inline="yes-display-inline">Second appraisal under certain
circumstances</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" display-inline="no-display-inline" id="H761A33A4DE03492A836CA3F6F7BCB7BE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the purpose of a subprime mortgage is to
finance the purchase or acquisition of the mortgaged property from a person
within 180 days of the purchase or acquisition of such property by that person
at a price that was lower than the current sale price of the property, the
creditor shall obtain a second appraisal from a different qualified appraiser.
The second appraisal shall include an analysis of the difference in sale
prices, changes in market conditions, and any improvements made to the property
between the date of the previous sale and the current sale.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB977CAD9E5E6426BBD300EEB36069013"><enum>(B)</enum><header display-inline="yes-display-inline">No cost to applicant</header><text display-inline="yes-display-inline">The cost of any second appraisal required
under subparagraph (A) may not be charged to the applicant.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF56D74F952A4939803DFA0962D7DFFB"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified appraiser defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>qualified appraiser</quote> means a person who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAD7C68544ED84A5D86FCB0A8035D0842"><enum>(A)</enum><text display-inline="yes-display-inline">is, at a minimum, certified or licensed by
the State in which the property to be appraised is located; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC3AC9E0D1FFB4580ABBB04CF9F384FC8"><enum>(B)</enum><text display-inline="yes-display-inline">performs each appraisal in conformity with
the Uniform Standards of Professional Appraisal Practice and title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the
regulations prescribed under such title, as in effect on the date of the
appraisal.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA503E199D3534CB09203E918252B9317"><enum>(c)</enum><header display-inline="yes-display-inline">Free copy of appraisal</header><text display-inline="yes-display-inline">A creditor shall provide 1 copy of each
appraisal conducted in accordance with this section in connection with a
subprime mortgage to the applicant without charge, and at least 3 days prior to
the transaction closing date.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3F9FBB9AF6214C2AA10B9F4A7B31DA8E"><enum>(d)</enum><header display-inline="yes-display-inline">Consumer notification</header><text display-inline="yes-display-inline">At the time of the initial mortgage
application, the applicant shall be provided with a statement by the creditor
that any appraisal prepared for the mortgage is for the sole use of the
creditor, and that the applicant may choose to have a separate appraisal
conducted at their own expense.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H380E52DC6D1448318D0CC6C5497838DE"><enum>(e)</enum><header display-inline="yes-display-inline">Violations</header><text display-inline="yes-display-inline">In addition to any other liability to any
person under this title, a creditor found to have willfully failed to obtain an
appraisal as required in this section shall be liable to the applicant or
borrower for the sum of $2,000.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4E641DA11F4248FCB376465DC9A62700"><enum>(f)</enum><header display-inline="yes-display-inline">Subprime mortgage defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>subprime mortgage</quote> means a residential mortgage loan, other than
a reverse mortgage loan insured by the Federal Housing Administration, secured
by a principal dwelling with an annual percentage rate that exceeds the average
prime offer rate for a comparable transaction, as of the date the interest rate
is set—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAB41946A7F6441E8B99E9FB831E4A679"><enum>(1)</enum><text display-inline="yes-display-inline">by 1.5 or more percentage points, in the
case of a first lien residential mortgage loan having an original principal
obligation amount that does not exceed the amount of the maximum limitation on
the original principal obligation of mortgage in effect for a residence of the
applicable size, as of the date of such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97B2A208808742A4AC409DDF7983AC0F"><enum>(2)</enum><text display-inline="yes-display-inline">by 2.5 or more percentage points, in the
case of a first lien residential mortgage loan having an original principal
obligation amount that exceeds the amount of the maximum limitation on the
original principal obligation of mortgage in effect for a residence of the
applicable size, as of the date of such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2)); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A740439AA9E4352BB0B8D05270A1584"><enum>(3)</enum><text display-inline="yes-display-inline">by 3.5 or more percentage points for a
subordinate lien residential mortgage
loan.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H035A0AFCEAF04393B69F7532DE2B7C02" section-type="subsequent-section"><enum>9502.</enum><header display-inline="yes-display-inline">Unfair and deceptive practices and acts
relating to certain consumer credit transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="HA02F64B248DD4676AA8C24867A630727"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129D (as added by
section 9401(a)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC5AC485F9FB54B9C966DF69112798612" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H19509FE786C843F19C878E1983B821FF" section-type="subsequent-section"><enum>129E.</enum><header display-inline="yes-display-inline">Unfair and deceptive practices and acts
relating to certain consumer credit transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="H1EE501A158CD40528F877D298E2C7906"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">It shall be unlawful, in extending credit
or in providing any services for a consumer credit transaction secured by the
principal dwelling of the consumer, to engage in any unfair or deceptive act or
practice as described in or pursuant to regulations prescribed under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA136B668ACA94D28A4593695B7B352CA"><enum>(b)</enum><header display-inline="yes-display-inline">Appraisal independence</header><text display-inline="yes-display-inline">For purposes of subsection (a), unfair and
deceptive practices shall include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1C4F946AB599418D807E41DCADD786D2"><enum>(1)</enum><text display-inline="yes-display-inline">any appraisal of a property offered as
security for repayment of the consumer credit transaction that is conducted in
connection with such transaction in which a person with an interest in the
underlying transaction compensates, coerces, extorts, colludes, instructs,
induces, bribes, or intimidates a person conducting or involved in an
appraisal, or attempts, to compensate, coerce, extort, collude, instruct,
induce, bribe, or intimidate such a person, for the purpose of causing the
appraised value assigned, under the appraisal, to the property to be based on
any factor other than the independent judgment of the appraiser;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43445A9626D84C0ABE0ED648BFDE748A"><enum>(2)</enum><text display-inline="yes-display-inline">mischaracterizing, or suborning any
mischaracterization of, the appraised value of the property securing the
extension of the credit;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA06BED0BAC9A4A0C8AB5F9FAF8B614F5"><enum>(3)</enum><text display-inline="yes-display-inline">seeking to influence an appraiser or
otherwise to encourage a targeted value in order to facilitate the making or
pricing of the transaction; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD194097162AB46E6985EF6E82C5654E6"><enum>(4)</enum><text display-inline="yes-display-inline">withholding or threatening to withhold
timely payment for an appraisal report or for appraisal services
rendered.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA8167AA945D143888EA8018B9EA34205"><enum>(c)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">The requirements of subsection (b) shall
not be construed as prohibiting a mortgage lender, mortgage broker, mortgage
banker, real estate broker, appraisal management company, employee of an
appraisal management company, consumer, or any other person with an interest in
a real estate transaction from asking an appraiser to provide 1 or more of the
following services:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8D294F51B6AD40F4BFBE035BAE977C2E"><enum>(1)</enum><text display-inline="yes-display-inline">Consider additional, appropriate property
information, including the consideration of additional comparable properties to
make or support an appraisal.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H39D4B9334D9141F9A1968241F2E97B1C"><enum>(2)</enum><text display-inline="yes-display-inline">Provide further detail, substantiation, or
explanation for the appraiser’s value conclusion.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H604AE219D5644634BA0130C3D1F89391"><enum>(3)</enum><text display-inline="yes-display-inline">Correct errors in the appraisal
report.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4910714E55D04DB5A71833F25D7DC15F"><enum>(d)</enum><header display-inline="yes-display-inline">Prohibitions on conflicts of
interest</header><text display-inline="yes-display-inline">No certified or
licensed appraiser conducting, and no appraisal management company procuring or
facilitating, an appraisal in connection with a consumer credit transaction
secured by the principal dwelling of a consumer may have a direct or indirect
interest, financial or otherwise, in the property or transaction involving the
appraisal.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFAB1DA16497244088983F9163571857F"><enum>(e)</enum><header display-inline="yes-display-inline">Mandatory reporting</header><text display-inline="yes-display-inline">Any mortgage lender, mortgage broker,
mortgage banker, real estate broker, appraisal management company, employee of
an appraisal management company, or any other person involved in a real estate
transaction involving an appraisal in connection with a consumer credit
transaction secured by the principal dwelling of a consumer who has a
reasonable basis to believe an appraiser is failing to comply with the Uniform
Standards of Professional Appraisal Practice, is violating applicable laws, or
is otherwise engaging in unethical or unprofessional conduct, shall refer the
matter to the applicable State appraiser certifying and licensing
agency.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3744A6DE7FD744469D715F1B9CA9BF96"><enum>(f)</enum><header display-inline="yes-display-inline">No extension of credit</header><text display-inline="yes-display-inline">In connection with a consumer credit
transaction secured by a consumer’s principal dwelling, a creditor who knows,
at or before loan consummation, of a violation of the appraisal independence
standards established in subsections (b) or (d) shall not extend credit based
on such appraisal unless the creditor documents that the creditor has acted
with reasonable diligence to determine that the appraisal does not materially
misstate or misrepresent the value of such dwelling.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE85C3FDD1561470B8158F66A2E4EA148"><enum>(g)</enum><header display-inline="yes-display-inline">Rulemaking proceedings</header><text display-inline="yes-display-inline">The Board, the Comptroller of the Currency,
the Director of the Office of Thrift Supervision, the Federal Deposit Insurance
Corporation, the National Credit Union Administration Board, and the Federal
Trade Commission—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H71E2AD4BA68D4DEB87BDAE5CAD4E995A"><enum>(1)</enum><text display-inline="yes-display-inline">shall, for purposes of this section,
jointly prescribe regulations no later than 180 days after the date of the
enactment of this section, and where such regulations have an effective date of
no later than 1 year after the date of the enactment of this section, defining
with specificity acts or practices which are unfair or deceptive in the
provision of mortgage lending services for a consumer credit transaction
secured by the principal dwelling of the consumer or mortgage brokerage
services for such a transaction and defining any terms in this section or such
regulations; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF8E0F978A2E94286922E35BAEC520A92"><enum>(2)</enum><text display-inline="yes-display-inline">may jointly issue interpretive guidelines
and general statements of policy with respect to unfair or deceptive acts or
practices in the provision of mortgage lending services for a consumer credit
transaction secured by the principal dwelling of the consumer and mortgage
brokerage services for such a transaction, within the meaning of subsections
(a), (b), (c), (d), (e), and (f).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H73962C6BEC714A169A883860ECDCFABF"><enum>(h)</enum><header display-inline="yes-display-inline">Penalties</header>
<paragraph commented="no" display-inline="no-display-inline" id="H350D04F77079457497D0AA5B747CBD40"><enum>(1)</enum><header display-inline="yes-display-inline">First violation</header><text display-inline="yes-display-inline">In addition to the enforcement provisions
referred to in section 130, each person who violates this section shall forfeit
and pay a civil penalty of not more than $10,000 for each day any such
violation continues.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD13B7DA0D151488884C16C49C82DCA6E"><enum>(2)</enum><header display-inline="yes-display-inline">Subsequent violations</header><text display-inline="yes-display-inline">In the case of any person on whom a civil
penalty has been imposed under paragraph (1), paragraph (1) shall be applied by
substituting <quote>$20,000</quote> for <quote>$10,000</quote> with respect to
all subsequent violations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2119A5B1EE141529F80DB1776FD88EB"><enum>(3)</enum><header display-inline="yes-display-inline">Assessment</header><text display-inline="yes-display-inline">The agency referred to in subsection (a) or
(c) of section 108 with respect to any person described in paragraph (1) shall
assess any penalty under this subsection to which such person is
subject.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5FCED5290BA849729364C2AA5D48626D"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical Amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to section
129D (as added by section 9401(c)) the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H0A8D6F711E14401ABEFAE3D31A519947" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">129E. Unfair and deceptive
practices and acts relating to certain consumer credit
transactions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H46F50FFC471241EDAC40A419FD154C27" section-type="subsequent-section"><enum>9503.</enum><header display-inline="yes-display-inline">Amendments relating to Appraisal
Subcommittee of FIEC, Appraiser Independence Monitoring, Approved Appraiser
Education, Appraisal Management Companies, Appraiser Complaint Hotline,
Automated Valuation Models, and Broker Price Opinions</header>
<subsection commented="no" display-inline="no-display-inline" id="HF54D9F3869D64991821E2363614B2097"><enum>(a)</enum><header display-inline="yes-display-inline">Consumer protection mission</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD4B020EA17184084B0E1A5B693467270"><enum>(1)</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="yes-display-inline">Section 1101 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331) is amended by
inserting <quote>and to provide the Appraisal Subcommittee with a consumer
protection mandate</quote> before the period at the end.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H612BCEFDE78A42DEA281E71AF74071A5"><enum>(2)</enum><header display-inline="yes-display-inline">Functions of appraisal
subcommittee</header><text display-inline="yes-display-inline">Section 1103(a)
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3332(a)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0F980376864842EE8E71026A125591D3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of paragraph (3); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H40A72BB0478E49B0A1B12A4A42A2C434"><enum>(B)</enum><text display-inline="yes-display-inline">by amending paragraph (4) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H94D324ECC98D46299CB23DCACBFB41FC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEB631317584F4856808AAD2F06D2C5FD"><enum>(4)</enum><text display-inline="yes-display-inline">monitor the efforts of, and requirements
established by, States and the Federal financial institutions regulatory
agencies to protect consumers from improper appraisal practices and the
predations of unlicensed appraisers in consumer credit transactions that are
secured by a consumer’s principal dwelling;
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D58B5EEC9CD4A7295764D1B2BFF1E89"><enum>(3)</enum><header display-inline="yes-display-inline">Threshold levels</header><text display-inline="yes-display-inline">Section 1112(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b))
is amended by inserting before the period the following: <quote>, and that such
threshold level provides reasonable protection for consumers who purchase 1–4
unit single-family residences. In determining whether a threshold level
provides reasonable protection for consumers, each Federal financial
institutions regulatory agency shall consult with consumer groups and convene a
public hearing</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7D32D75D751E4D4AAADCBADA6EEF850C"><enum>(b)</enum><header display-inline="yes-display-inline">Annual report of Appraisal
Subcommittee</header><text display-inline="yes-display-inline">Section 1103(a)
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3332(a)) is amended at the end by inserting the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HEF9C1B6B7B8147E08EEDA6FAD8EDFEC2" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD636A2E790C1430C919BAE734F2D4F1E"><enum>(5)</enum><text display-inline="yes-display-inline">transmit an annual report to the Congress
not later than January 31 of each year that describes the manner in which each
function assigned to the Appraisal Subcommittee has been carried out during the
preceding year. The report shall also detail the activities of the Appraisal
Subcommittee, including the results of all audits of State appraiser regulatory
agencies, and provide an accounting of disapproved actions and warnings taken
in the previous year, including a description of the conditions causing the
disapproval and actions taken to achieve
compliance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H939422055CB64E2191AEC55433496C44"><enum>(c)</enum><header display-inline="yes-display-inline">Open meetings</header><text display-inline="yes-display-inline">Section 1104(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3333(b))
is amended by inserting <quote>in public session after notice in the Federal
Register</quote> after <quote>shall meet</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H41EB2E374E2F49F89AC1B1DDE5B71DCF"><enum>(d)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">Section 1106 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3335) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2DF68B269A334841A4A0ACA98D9568D2"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>prescribe regulations
after notice and opportunity for comment,</quote> after <quote>hold
hearings</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A240E8B2B424D75A49DD4C4A91FF75C"><enum>(2)</enum><text display-inline="yes-display-inline">at the end by inserting <quote>Any
regulations prescribed by the Appraisal Subcommittee shall (unless otherwise
provided in this title) be limited to the following functions: temporary
practice, national registry, information sharing, and enforcement. For purposes
of prescribing regulations, the Appraisal Subcommittee shall establish an
advisory committee of industry participants, including appraisers, lenders,
consumer advocates, and government agencies, and hold meetings as necessary to
support the development of regulations.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD2299EBA01A141C2A9224FB96BE73D73"><enum>(e)</enum><header display-inline="yes-display-inline">Appraisals and appraisal
reviews</header><text display-inline="yes-display-inline">Section 1113 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3342) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEBAC6945F67148D9BA805D64CDC6D8A1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>In determining</quote>
and inserting <quote><header-in-text level="subsection" style="OLC"><enum-in-header>(a)</enum-in-header> In
general</header-in-text>.—In determining</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFED761D734E343D6AC057D0D0DF4E648"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a) (as designated by
paragraph (1)), by inserting before the period the following: <quote>, where a
complex 1-to-4 unit single family residential appraisal means an appraisal for
which the property to be appraised, the form of ownership, the property
characteristics, or the market conditions are atypical</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFCBFD1669E3D419EB1EAC5B6D0C3405E"><enum>(3)</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="H2D8F46572B164D928640B279F78A05DC" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H457C31CBD4F744CF942252E946A65868"><enum>(b)</enum><header display-inline="yes-display-inline">Appraisals and appraisal
reviews</header><text display-inline="yes-display-inline">All appraisals
performed at a property within a State shall be prepared by appraisers licensed
or certified in the State where the property is located. All appraisal reviews,
including appraisal reviews by a lender, appraisal management company, or other
third party organization, shall be performed by an appraiser who is duly
licensed or certified by a State appraisal
board.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H558419D16EEA43E28138E5FA93C9AAF8"><enum>(f)</enum><header display-inline="yes-display-inline">Appraisal management services</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7E3D2C7F12AC49ACB3890AB502CA5143"><enum>(1)</enum><header display-inline="yes-display-inline">Supervision of third party providers of
appraisal management services</header><text display-inline="yes-display-inline">Section 1103(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a))
(as previously amended by this section) is further amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H71DC9A7906D44C3E8BAF567BC5D69406"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H24E6282F14D6447A9CC96F4B2B38A15E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD4A77848C1E544C0906FE40B505C7696"><enum>(1)</enum><text display-inline="yes-display-inline">monitor the requirements established by
States—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HABAD5B2184164C8D9DB4C5EC0294F750"><enum>(A)</enum><text display-inline="yes-display-inline">for the certification and licensing of
individuals who are qualified to perform appraisals in connection with
federally related transactions, including a code of professional
responsibility; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53CBD38A954F4DEE9D118733A7CA06D3"><enum>(B)</enum><text display-inline="yes-display-inline">for the registration and supervision of the
operations and activities of an appraisal management
company;</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC4006C50A0DE444DBC517900E7A09695"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H018265590C904B418D941048CB1D19E9" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEDEAA2E15BAB45E591D7F75FC1D33584"><enum>(7)</enum><text display-inline="yes-display-inline">maintain a national registry of appraisal
management companies that either are registered with and subject to supervision
of a State appraiser certifying and licensing agency or are operating
subsidiaries of a Federally regulated financial
institution.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H284350C1AC8846BCB4D0370A37326D74"><enum>(2)</enum><header display-inline="yes-display-inline">Appraisal management company minimum
qualifications</header><text display-inline="yes-display-inline">Title XI of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3331 et seq.) is amended by adding at the end the following new section
(and amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="HEEFA0E41706741FE8E65659986BA003E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H38CA17A0D0F5451C81CD0C475D52C64D" section-type="subsequent-section"><enum>1124.</enum><header display-inline="yes-display-inline">Appraisal management company minimum
qualifications</header>
<subsection commented="no" display-inline="no-display-inline" id="H69A2AA4EF0044A95B67CD252BFF24181"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Appraiser Qualifications Board of the
Appraisal Foundation shall establish minimum qualifications to be applied by a
State in the registration of appraisal management companies. Such
qualifications shall include a requirement that such companies—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H92C854FEA66841C2849485052C2820DB"><enum>(1)</enum><text display-inline="yes-display-inline">register with and be subject to supervision
by a State appraiser certifying and licensing agency in each State in which
such company operates;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H355392528686433A8954E7EF796BDC18"><enum>(2)</enum><text display-inline="yes-display-inline">verify that only licensed or certified
appraisers are used for federally related transactions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC1EA06574D243C9BF024EDC36757E04"><enum>(3)</enum><text display-inline="yes-display-inline">require that appraisals coordinated by an
appraisal management company comply with the Uniform Standards of Professional
Appraisal Practice; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5CD992C6192C47A09FD3EF1FCA05709D"><enum>(4)</enum><text display-inline="yes-display-inline">require that appraisals are conducted
independently and free from inappropriate influence and coercion pursuant to
the appraisal independence standards established under section 129E of the
Truth in Lending Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3CF4ED1736D2483684FE71748449A1E0"><enum>(b)</enum><header display-inline="yes-display-inline">Exception for federally regulated financial
institutions</header><text display-inline="yes-display-inline">The requirements
of subsection (a) shall not apply to an appraisal management company that is a
subsidiary owned and controlled by a financial institution and regulated by a
federal financial institution regulatory agency. In such case, the appropriate
federal financial institutions regulatory agency shall, at a minimum, develop
regulations affecting the operations of the appraisal management company
to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2CA9A1DCC16C4D9798AF1E2914A130BA"><enum>(1)</enum><text display-inline="yes-display-inline">verify that only licensed or certified
appraisers are used for federally related transactions;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE25A50494B1B4AA497135167FE4F7F32"><enum>(2)</enum><text display-inline="yes-display-inline">require that appraisals coordinated by an
institution or subsidiary providing appraisal management services comply with
the Uniform Standards of Professional Appraisal Practice; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86C395CD4CD449D7983EA23CCD5B2E49"><enum>(3)</enum><text display-inline="yes-display-inline">require that appraisals are conducted
independently and free from inappropriate influence and coercion pursuant to
the appraisal independence standards established under section 129E of the
Truth in Lending Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H648DB17C79154B3D9E28CD585787F305"><enum>(c)</enum><header display-inline="yes-display-inline">Registration limitations</header><text display-inline="yes-display-inline">An appraisal management company shall not
be registered by a State if such company, in whole or in part, directly or
indirectly, is owned by any person who has had an appraiser license or
certificate refused, denied, cancelled, surrendered in lieu of revocation, or
revoked in any State. Additionally, each person that owns more than 10 percent
of an appraisal management company shall be of good moral character, as
determined by the State appraiser certifying and licensing agency, and shall
submit to a background investigation carried out by the State appraiser
certifying and licensing agency.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H26A54B12E1AA49C3A0ECF9B9AB05B5A7"><enum>(d)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Appraisal Subcommittee shall promulgate
regulations to implement the minimum qualifications developed by the Appraiser
Qualifications Board under this section, as such qualifications relate to the
State appraiser certifying and licensing agencies. The Appraisal Subcommittee
shall also promulgate regulations for the reporting of the activities of
appraisal management companies in determining the payment of the annual
registry fee.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H787A7246CD98414DBA8DC8CBAE45FE92"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD070B88BA9294D9CBCAB2651F9CDC388"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No appraisal management company may perform
services related to a federally related transaction in a State after the date
that is 36 months after the date of the enactment of this section unless such
company is registered with such State or subject to oversight by a federal
financial institutions regulatory agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94993ABC97134B6AAD30F7CB86516338"><enum>(2)</enum><header display-inline="yes-display-inline">Extension of effective date</header><text display-inline="yes-display-inline">Subject to the approval of the Council, the
Appraisal Subcommittee may extend by an additional 12 months the requirements
for the registration and supervision of appraisal management companies if it
makes a written finding that a State has made substantial progress in
establishing a State appraisal management company registration and supervision
system that appears to conform with the provisions of this
title.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFEC3B7631B084B90B709AA928B9763C6"><enum>(3)</enum><header display-inline="yes-display-inline">State appraiser certifying and licensing
agency authority</header><text display-inline="yes-display-inline">Section 1117
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3346) is amended by adding at the end the following: <quote>The duties
of such agency may additionally include the registration and supervision of
appraisal management companies.</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFBF975C4C154F319DA91048366E17E8"><enum>(4)</enum><header display-inline="yes-display-inline">Appraisal management company
definition</header><text display-inline="yes-display-inline">Section 1121 of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3350) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H92D932C1500040BC800991263B1DDC78" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7AB820570EF84A6F8A28C4CED935DD7B"><enum>(11)</enum><header display-inline="yes-display-inline">Appraisal management company</header><text display-inline="yes-display-inline">The term <term>appraisal management
company</term> means, in connection with valuing properties collateralizing
mortgage loans or mortgages incorporated into a securitization, any external
third party authorized either by a creditor of a consumer credit transaction
secured by a consumer’s principal dwelling or by an underwriter of or other
principal in the secondary mortgage markets, that oversees a network or panel
of more than 15 certified or licensed appraisers in a State or 25 or more
nationally within a given year—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F573BDBA31341C2AEDA93C2BE86BCAD"><enum>(A)</enum><text display-inline="yes-display-inline">to recruit, select, and retain
appraisers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H987C3FDFBF0B4101B3E3773AE87EBAB3"><enum>(B)</enum><text display-inline="yes-display-inline">to contract with licensed and certified
appraisers to perform appraisal assignments;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F447EBCAE8F4DB3972A3AAAE6B67BDC"><enum>(C)</enum><text display-inline="yes-display-inline">to manage the process of having an
appraisal performed, including providing administrative duties such as
receiving appraisal orders and appraisal reports, submitting completed
appraisal reports to creditors and underwriters, collecting fees from creditors
and underwriters for services provided, and reimbursing appraisers for services
performed; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8A520F6E40254AC39A11D642ED473F3A"><enum>(D)</enum><text display-inline="yes-display-inline">to review and verify the work of
appraisers.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H17D68C3D1C1F4E5294E6EEDF6E8335C3"><enum>(g)</enum><header display-inline="yes-display-inline">State agency reporting
requirement</header><text display-inline="yes-display-inline">Section 1109(a)
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3338(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD9EC966DF24540E6B78F52BD4A66FBB4"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon in paragraph (1);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B7C0883802F40008131D182FB929A91"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (2) as paragraph
(4); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDFFA6E54806848B5BAB522E1519A3A41"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H96C74D18030E41369174593C5C4C6661" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H6B114923CF0B427EA929DE133F439C2C"><enum>(2)</enum><text display-inline="yes-display-inline">transmit reports on sanctions, disciplinary
actions, license and certification revocations, and license and certification
suspensions on a timely basis to the national registry of the Appraisal
Subcommittee;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E15C9152FBA48A994BE1F23753AA3FD"><enum>(3)</enum><text display-inline="yes-display-inline">transmit reports on a timely basis of
supervisory activities involving appraisal management companies or other
third-party providers of appraisals and appraisal management services,
including investigations initiated and disciplinary actions taken;
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAD2479769B354F68BE9B9162A8564FE4"><enum>(h)</enum><header display-inline="yes-display-inline">Registry fees modified</header>
<paragraph commented="no" display-inline="no-display-inline" id="H316D68BF84E6481F81E0BA738CF73FB0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1109(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(a))
is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H26512B2D041B4F818CF433245C70E6B3"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (4) (as modified by
section 9503(g)) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H460683DAE22448709728DC0B91C5EF25" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H39FE0B64CBBA4DC5B6F39657FA3E3D29"><enum>(4)</enum><text display-inline="yes-display-inline">collect—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC6A1E3F47CD047C2BF7C377ADCB25403"><enum>(A)</enum><text display-inline="yes-display-inline">from such individuals who perform or seek
to perform appraisals in federally related transactions, an annual registry fee
of not more than $40, such fees to be transmitted by the State agencies to the
Council on an annual basis; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H02B93072D0AB49B5909C805FF39AB573"><enum>(B)</enum><text display-inline="yes-display-inline">from an appraisal management company that
either has registered with a State appraiser certifying and licensing agency in
accordance with this title or operates as a subsidiary of a federally regulated
financial institution, an annual registry fee of—</text>
<clause commented="no" display-inline="no-display-inline" id="H26FEB38BEFED4CE7BDB2DA0330F78BCA"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of such a company that has been
in existence for more than a year, $25 multiplied by the number of appraisers
working for or contracting with such company in such State during the previous
year, but where such $25 amount may be adjusted, up to a maximum of $50, at the
discretion of the Appraisal Subcommittee, if necessary to carry out the
Subcommittee’s functions under this title; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6980B67343C64F58B63488C2B74A437F"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of such a company that has not
been in existence for more than a year, $25 multiplied by an appropriate number
to be determined by the Appraisal Subcommittee, and where such number will be
used for determining the fee of all such companies that were not in existence
for more than a year, but where such $25 amount may be adjusted, up to a
maximum of $50, at the discretion of the Appraisal Subcommittee, if necessary
to carry out the Subcommittee’s functions under this
title.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE8486C8C3CC546E7802AE65D5D48FC2D"><enum>(B)</enum><text display-inline="yes-display-inline">by amending the matter following paragraph
(4), as redesignated, to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8B9B6894F7F5499CA66C98D4C6045F68" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="subsection">Subject to the approval of the
Council, the Appraisal Subcommittee may adjust the dollar amount of registry
fees under paragraph (4)(A), up to a maximum of $80 per annum, as necessary to
carry out its functions under this title. The Appraisal Subcommittee shall
consider at least once every 5 years whether to adjust the dollar amount of the
registry fees to account for inflation. In implementing any change in registry
fees, the Appraisal Subcommittee shall provide flexibility to the States for
multi-year certifications and licenses already in place, as well as a
transition period to implement the changes in registry fees. In establishing
the amount of the annual registry fee for an appraisal management company, the
Appraisal Subcommittee shall have the discretion to impose a minimum annual
registry fee for an appraisal management company to protect against the under
reporting of the number of appraisers working for or contracted by the
appraisal management
company.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93F9633D6CCD4589819666B28A0EE9D8"><enum>(2)</enum><header display-inline="yes-display-inline">Incremental revenues</header><text display-inline="yes-display-inline">Incremental revenues collected pursuant to
the increases required by this subsection shall be placed in a separate account
at the United States Treasury, entitled the <quote>Appraisal Subcommittee
Account</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA4407C1F59C24F58B2C28B979CDF5A2B"><enum>(i)</enum><header display-inline="yes-display-inline">Grants and reports</header><text display-inline="yes-display-inline">Section 1109(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3348(b))
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD85B8D08A0564780AD75D1CB2F024FE6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon in paragraph (3);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0989C1C3E6BB409BA89410E24B3CA07E"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
paragraph (4) and inserting a semicolon;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H946799C66E8D4305B7B4D46A183DB883"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H4C177E08B4AA4149B2E9C36E712FB84D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4FF4CDB678CD404C8639DC00F36B1929"><enum>(5)</enum><text display-inline="yes-display-inline">to make grants to State appraiser
certifying and licensing agencies to support the efforts of such agencies to
comply with this title, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFC1496B9E19B4FAC80C79897E987A520"><enum>(A)</enum><text display-inline="yes-display-inline">the complaint process, complaint
investigations, and appraiser enforcement activities of such agencies;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6B950ADF5B3447AA93BC0E686D0EA838"><enum>(B)</enum><text display-inline="yes-display-inline">the submission of data on State licensed
and certified appraisers and appraisal management companies to the National
appraisal registry, including information affirming that the appraiser or
appraisal management company meets the required qualification criteria and
formal and informal disciplinary actions; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD03BB4D443594693910DD4D9592953F1"><enum>(6)</enum><text display-inline="yes-display-inline">to report to all State appraiser certifying
and licensing agencies when a license or certification is surrendered, revoked,
or
suspended.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">Obligations authorized under this
subsection may not exceed 75 percent of the fiscal year total of incremental
increase in fees collected and deposited in the <quote>Appraisal Subcommittee
Account</quote> pursuant to subsection (h).</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="H24B10E7F94264195ADA2CC3CDC9F79B6"><enum>(j)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">Section 1116 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H55038D7F93D94440AC14200A7EBEAF8D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c), by inserting
<quote>whose criteria for the licensing of a real estate appraiser currently
meet or exceed the minimum criteria issued by the Appraisal Qualifications
Board of The Appraisal Foundation for the licensing of real estate
appraisers</quote> before the period at the end; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB753DAEFA9FD472FB3ED10A528DAD3E9"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (e) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HACD896DF007E4C1C8853021E7A3BC980" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3811078D060B4DE991AB39D482EDDEE1"><enum>(e)</enum><header display-inline="yes-display-inline">Minimum qualification
requirements</header><text display-inline="yes-display-inline">Any requirements
established for individuals in the position of <quote>Trainee Appraiser</quote>
and <quote>Supervisory Appraiser</quote> shall meet or exceed the minimum
qualification requirements of the Appraiser Qualifications Board of The
Appraisal Foundation. The Appraisal Subcommittee shall have the authority to
enforce these
requirements.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HECC6F857CB074F7BB3602CC54155F059"><enum>(k)</enum><header display-inline="yes-display-inline">Monitoring of state appraiser certifying
and licensing agencies</header><text display-inline="yes-display-inline">Section 1118 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3347) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF8A105EFA3E546C089A30E7E7C00F2EF"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subsection (a) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB681271F35104EEB9C99CC980C1E6F56" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB806423D38DD4367871AADC249238199"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Appraisal Subcommittee shall monitor
each State appraiser certifying and licensing agency for the purposes of
determining whether such agency—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD236E410F7EB4543AD8068D5B3E90333"><enum>(1)</enum><text display-inline="yes-display-inline">has policies, practices, funding, staffing,
and procedures that are consistent with this title;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7BC20414B5F2450B8B74CA4F49502323"><enum>(2)</enum><text display-inline="yes-display-inline">processes complaints and completes
investigations in a reasonable time period;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E1A8A7E86944FA89229E35A03861EA5"><enum>(3)</enum><text display-inline="yes-display-inline">appropriately disciplines sanctioned
appraisers and appraisal management companies;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6F20B4F8D4CE474F9B9359A94D08BBD4"><enum>(4)</enum><text display-inline="yes-display-inline">maintains an effective regulatory program;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H041AC3868336447F88333C5E825B5213"><enum>(5)</enum><text display-inline="yes-display-inline">reports complaints and disciplinary actions
on a timely basis to the national registries on appraisers and appraisal
management companies maintained by the Appraisal Subcommittee.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">The Appraisal Subcommittee shall
have the authority to remove a State licensed or certified appraiser or a
registered appraisal management company from a national registry on an interim
basis pending State agency action on licensing, certification, registration,
and disciplinary proceedings. The Appraisal Subcommittee and all agencies,
instrumentalities, and Federally recognized entities under this title shall not
recognize appraiser certifications and licenses from States whose appraisal
policies, practices, funding, staffing, or procedures are found to be
inconsistent with this title. The Appraisal Subcommittee shall have the
authority to impose sanctions, as described in this section, against a State
agency that fails to have an effective appraiser regulatory program. In
determining whether such a program is effective, the Appraisal Subcommittee
shall include an analyses of the licensing and certification of appraisers, the
registration of appraisal management companies, the issuance of temporary
licenses and certifications for appraisers, the receiving and tracking of
submitted complaints against appraisers and appraisal management companies, the
investigation of complaints, and enforcement actions against appraisers and
appraisal management companies. The Appraisal Subcommittee shall have the
authority to impose interim actions and suspensions against a State agency as
an alternative to, or in advance of, the derecognition of a State
agency.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H37195094DA8445DAA5C6E0B5FAE85FCC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by inserting after
“authority” the following: “or sufficient funding”.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2EF5A7329B6C41408698F2FD07DCE993"><enum>(l)</enum><header display-inline="yes-display-inline">Reciprocity</header><text display-inline="yes-display-inline">Subsection (b) of section 1122 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3351(b)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HCEAE326748624A4A9854EBD136B794AA" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H131BB68446E445F2B8968E6CF48EDF3A"><enum>(b)</enum><header display-inline="yes-display-inline">Reciprocity</header><text display-inline="yes-display-inline">A State appraiser certifying or licensing
agency shall issue a reciprocal certification or license for an individual from
another State when—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9F2F9025E7904E91802D776EE16F54A3"><enum>(1)</enum><text display-inline="yes-display-inline">the appraiser licensing and certification
program of such other State is in compliance with the provisions of this title;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA48F8699E195468B83D55E9EF4B56922"><enum>(2)</enum><text display-inline="yes-display-inline">the appraiser holds a valid certification
from a State whose requirements for certification or licensing meet or exceed
the licensure standards established by the State where an individual seeks
appraisal
licensure.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3EE8CFA62EB34DCE90EB2F9FBB66BB31"><enum>(m)</enum><header display-inline="yes-display-inline">Consideration of professional appraisal
designations</header><text display-inline="yes-display-inline">Section 1122(d)
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3351(d)) is amended by striking <quote>shall not exclude</quote> and all
that follows through the end of the subsection and inserting the following:
<quote>may include education achieved, experience, sample appraisals, and
references from prior clients. Membership in a nationally recognized
professional appraisal organization may be a criteria considered, though lack
of membership therein shall not be the sole bar against consideration for an
assignment under these criteria.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2FFCDB6BF16C4A448A964D2647F5F0CD"><enum>(n)</enum><header display-inline="yes-display-inline">Appraiser independence</header><text display-inline="yes-display-inline">Section 1122 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H526D9B2C6B914D86B127754C44672F5B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H82F984F117F84D66B0112C2BE62B729E"><enum>(g)</enum><header display-inline="yes-display-inline">Appraiser independence
monitoring</header><text display-inline="yes-display-inline">The Appraisal
Subcommittee shall monitor each State appraiser certifying and licensing agency
for the purpose of determining whether such agency’s policies, practices, and
procedures are consistent with the purposes of maintaining appraiser
independence and whether such State has adopted and maintains effective laws,
regulations, and policies aimed at maintaining appraiser
independence.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HABB2FF9CFDA84BCDA5856A43D2BEB580"><enum>(o)</enum><header display-inline="yes-display-inline">Appraiser education</header><text display-inline="yes-display-inline">Section 1122 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by
inserting after subsection (g) (as added by subsection (l) of this section) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF49B3FC0ADDD4B7D99A791B7DFF31EC7" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2AFC5CEB417D44E9B1A189F76309E577"><enum>(h)</enum><header display-inline="yes-display-inline">Approved education</header><text display-inline="yes-display-inline">The Appraisal Subcommittee shall encourage
the States to accept courses approved by the Appraiser Qualification Board’s
Course Approval
Program.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H42194297DFCD45EA85306F6F99E7F32C"><enum>(p)</enum><header display-inline="yes-display-inline">Appraisal complaint hotline</header><text display-inline="yes-display-inline">Section 1122 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351), as amended by
this section, is further amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H41677EC7CC7E463782642091FD075EF7" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD3804D0D27CD4564808D49F06597452A"><enum>(i)</enum><header display-inline="yes-display-inline">Appraisal complaint national
hotline</header><text display-inline="yes-display-inline">If, 1 year after the
date of the enactment of this subsection, the Appraisal Subcommittee determines
that no national hotline exists to receive complaints of non-compliance with
appraisal independence standards and Uniform Standards of Professional
Appraisal Practice, including complaints from appraisers, individuals, or other
entities concerning the improper influencing or attempted improper influencing
of appraisers or the appraisal process, the Appraisal Subcommittee shall
establish and operate such a national hotline, which shall include a toll-free
telephone number and an email address. If the Appraisal Subcommittee operates
such a national hotline, the Appraisal Subcommittee shall refer complaints for
further action to appropriate governmental bodies, including a State appraiser
certifying and licensing agency, a financial institution regulator, or other
appropriate legal authorities. For complaints referred to State appraiser
certifying and licensing agencies or to Federal regulators, the Appraisal
Subcommittee shall have the authority to follow up such complaint referrals in
order to determine the status of the resolution of the
complaint.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H378947862CCE42FAA965AB132F71DAD0"><enum>(q)</enum><header display-inline="yes-display-inline">Automated valuation models</header><text display-inline="yes-display-inline">Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.), as
amended by this section, is further amended by adding at the end the following
new section (and amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H73E290A1399A46CFBF70721DE1E11D13" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H7C87D4332AB2476EAAD8F2B6C28C4456" section-type="subsequent-section"><enum>1125.</enum><header display-inline="yes-display-inline">Automated valuation models used to value
certain mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H133D215A270A419290ADA648C2998B33"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Automated valuation models shall adhere to
quality control standards designed to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1996B8381A04476696D1AB285AF69A49"><enum>(1)</enum><text display-inline="yes-display-inline">ensure a high level of confidence in the
estimates produced by automated valuation models;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA2B9823E119941CB965B7C108309D961"><enum>(2)</enum><text display-inline="yes-display-inline">protect against the manipulation of
data;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF4AEFDDD0FA547EA878CC7ADCEB28D89"><enum>(3)</enum><text display-inline="yes-display-inline">seek to avoid conflicts of interest;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H01C76E93953748CEB4FC7B9B58842BF0"><enum>(4)</enum><text display-inline="yes-display-inline">require random sample testing and reviews,
where such testing and reviews are performed by an appraiser who is licensed or
certified in the State where the testing and reviews take place.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFCEC1F28D7B84B8AA25A35446F910398"><enum>(b)</enum><header display-inline="yes-display-inline">Adoption of regulations</header><text display-inline="yes-display-inline">The Appraisal Subcommittee and its member
agencies, in consultation with the Appraisal Standards Board of the Appraisal
Foundation and other interested parties, shall promulgate regulations to
implement the quality control standards required under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0C4DA253A18543CFA2C36A57ED81F6C1"><enum>(c)</enum><header display-inline="yes-display-inline">Enforcement</header><text display-inline="yes-display-inline">Compliance with regulations issued under
this subsection shall be enforced by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4FF14DA04506414F973256D7AB0A76A7"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to a financial institution, or
subsidiary owned and controlled by a financial institution and regulated by a
Federal financial institution regulatory agency, the Federal financial
institution regulatory agency that acts as the primary Federal supervisor of
such financial institution or subsidiary; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H893918B550614ADFBCD6379600708A10"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to other persons, the
Appraisal Subcommittee.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H71EAE4F2E3E549DAA1B1D46AC70D3CC5"><enum>(d)</enum><header display-inline="yes-display-inline">Automated valuation model
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <quote>automated valuation model</quote> means any
computerized model used by mortgage originators and secondary market issuers to
determine the collateral worth of a mortgage secured by a consumer’s principal
dwelling.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA56EFD732F5F49E2A648312933AAFAFD"><enum>(r)</enum><header display-inline="yes-display-inline">Broker price opinions</header><text display-inline="yes-display-inline">Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.), as
amended by this section, is further amended by adding at the end the following
new section (and amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H38401D2EECE14523952D630115BDA258" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HEA13387AE9FF4964A8CEDB931438EC68" section-type="subsequent-section"><enum>1126.</enum><header display-inline="yes-display-inline">Broker price opinions</header>
<subsection commented="no" display-inline="no-display-inline" id="H18859782BF3744DE9CFCE7CD6296606E"><enum>(a)</enum><header display-inline="yes-display-inline">General prohibition</header><text display-inline="yes-display-inline">In conjunction with the purchase of a
consumer’s principal dwelling, broker price opinions may not be used as the
primary basis to determine the value of a piece of property for the purpose of
a loan origination of a residential mortgage loan secured by such piece of
property.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5892FA01B51A4204852A3BAAF3226EC4"><enum>(b)</enum><header display-inline="yes-display-inline">Broker price opinion defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>broker price opinion</quote> means an estimate prepared by a real estate
broker, agent, or sales person that details the probable selling price of a
particular piece of real estate property and provides a varying level of detail
about the property’s condition, market, and neighborhood, and information on
comparable sales, but does not include an automated valuation model, as defined
in section
1125(c).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2410429B1B9C45B5B7978AD1132D4123"><enum>(s)</enum><header display-inline="yes-display-inline">Amendments to appraisal
subcommittee</header><text display-inline="yes-display-inline">Section 1011 of
the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C.
3310) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBC6EA9F10F584A719EE19C09C00079FB"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence, by adding before the
period the following: <quote>and the Federal Housing Finance Agency</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H861C386F3FCC46EF978FB26C0FE5B9AC"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting at the end the following:
<quote>At all times at least one member of the Appraisal Subcommittee shall
have demonstrated knowledge and competence through licensure, certification, or
professional designation within the appraisal profession.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA73FB354F42041DFA9557D332E39FF67"><enum>(t)</enum><header display-inline="yes-display-inline">Technical corrections</header>
<paragraph commented="no" display-inline="no-display-inline" id="H85F58FBD28724051939CED3367B43A81"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1119(a)(2) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3348(a)(2)) is amended by striking <quote>council,</quote> and inserting
<quote>Council,</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF3D2E9E0A8842448AE46A26DA9351E9"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1121(6) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(6))
is amended by striking <quote>Corporations,</quote> and inserting
<quote>Corporation,</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF8EF4D20C454CE282DE458012A08923"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1121(8) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(8))
is amended by striking <quote>council</quote> and inserting
<quote>Council</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H66820552691F42ADB53677920E21CB10"><enum>(4)</enum><text display-inline="yes-display-inline">Section 1122 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H77B935AB0415402BB6D35438817B2E7C"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(1) by moving the left
margin of subparagraphs (A), (B), and (C) 2 ems to the right; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H43529EF3325B49B6A84AF11D98EDAE40"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2F869DB33AC84A61B1EADEB4F1D85C23"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>Federal Financial
Institutions Examination Council</quote> and inserting <quote>Financial
Institutions Examination Council</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEC0045671A42413A94402E48E2326E08"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>the council’s
functions</quote> and inserting <quote>the Council’s functions</quote>.</text>
</clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H317C3B4FEF2F4C64B67464B1A9997638" section-type="subsequent-section"><enum>9504.</enum><header display-inline="yes-display-inline">Study required on improvements in appraisal
process and compliance programs</header>
<subsection commented="no" display-inline="no-display-inline" id="HEC2FEA8DD672434CBABF1A0D182DA699"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Comptroller General shall conduct a
comprehensive study on possible improvements in the appraisal process
generally, and specifically on the consistency in and the effectiveness of, and
possible improvements in, State compliance efforts and programs in accordance
with title XI of the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989. In addition, this study shall examine the existing exemptions to
the use of certified appraisers issued by Federal financial institutions
regulatory agencies. The study shall also review the threshold level
established by Federal regulators for compliance under title XI and whether
there is a need to revise them to reflect the addition of consumer protection
to the purposes and functions of the Appraisal Subcommittee. The study shall
additionally examine the quality of different types of mortgage collateral
valuations produced by broker price opinions, automated valuation models,
licensed appraisals, and certified appraisals, among others, and the quality of
appraisals provided through different distribution channels, including
appraisal management companies, independent appraisal operations within a
mortgage originator, and fee-for-service appraisals. The study shall also
include an analysis and statistical breakdown of enforcement actions taken
during the last 10 years against different types of appraisers, including
certified, licensed, supervisory, and trainee appraisers. Furthermore, the
study shall examine the benefits and costs, as well as the advantages and
disadvantages, of establishing a national repository to collect data related to
real estate property collateral valuations performed in the United
States.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFF30E36369AB4BA5803AA7FB8577E3AB"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Before the end of the 18-month period
beginning on the date of the enactment of this Act, the Comptroller General
shall submit a report on the study under subsection (a) to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, together with such
recommendations for administrative or legislative action, at the Federal or
State level, as the Comptroller General may determine to be appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB406A85AB29F4B10B778239FB2785917"><enum>(c)</enum><header display-inline="yes-display-inline">Additional study required</header><text display-inline="yes-display-inline">The Comptroller General shall conduct an
additional study to determine the effects that the changes to the seller-guide
appraisal requirements of Fannie Mae and Freddie Mac contained in the Home
Valuation Code of Conduct have on small business, like mortgage brokers and
independent appraisers, and consumers, including the effect on the—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE769E29133F84F6D9B4B5DDE5119671D"><enum>(1)</enum><text display-inline="yes-display-inline">quality and costs of appraisals;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE11254B3367446DDB3167B9B6A6077BB"><enum>(2)</enum><text display-inline="yes-display-inline">length of time for obtaining
appraisals;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF7017CF63B8E43AA98C5A6EE1004D8E5"><enum>(3)</enum><text display-inline="yes-display-inline">impact on consumer protection, especially
regarding maintaining appraisal independence, abating appraisal inflation, and
mitigating acts of appraisal fraud;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE347164C38C4369967213E113B608B7"><enum>(4)</enum><text display-inline="yes-display-inline">structure of the appraisal industry,
especially regarding appraisal management companies, fee-for-service
appraisers, and the regulation of appraisal management companies by the states;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC6AD6765A761492DB0A141C90E05032A"><enum>(5)</enum><text display-inline="yes-display-inline">impact on mortgage brokers and other small
business professionals in the financial services industry.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H36A2D5FC177C427EBA17588AAB2D005F"><enum>(d)</enum><header display-inline="yes-display-inline">Additional report</header><text display-inline="yes-display-inline">Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Comptroller General
shall submit an additional report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing the findings and conclusions of the
Comptroller General with respect to the study conducted pursuant to subsection
(c). Such additional report shall take into consideration the Small Business
Administration's views on how small businesses are affected by the Home
Valuation Code of Conduct.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HCC1C73DA019B44E3BDEBAE50C92262FE" section-type="subsequent-section"><enum>9505.</enum><header display-inline="yes-display-inline">Equal Credit Opportunity Act
amendment</header><text display-inline="no-display-inline">Subsection (e) of
section 701 of the Equal Credit Opportunity Act (15 U.S.C. 1691) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3DDB58C62C8643E2844332F7F503045C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFC6D171972A944EAA990C7ACD885E7C4"><enum>(e)</enum><header display-inline="yes-display-inline">Copies furnished to applicants</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA35661249680447483E91652CE5F3AB8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each creditor shall furnish to an applicant
a copy of any and all written appraisals and valuations developed in connection
with the applicant’s application for a loan that is secured or would have been
secured by a first lien on a dwelling promptly upon completion, but in no case
later than 3 days prior to the closing of the loan, whether the creditor grants
or denies the applicant’s request for credit or the application is incomplete
or withdrawn.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE03329D41F14A92AB647A1057922184"><enum>(2)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The applicant may waive the 3 day
requirement provided for in paragraph (1), except where otherwise required in
law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC97605721B542A885C898EF07D5435E"><enum>(3)</enum><header display-inline="yes-display-inline">Reimbursement</header><text display-inline="yes-display-inline">The applicant may be required to pay a
reasonable fee to reimburse the creditor for the cost of the appraisal, except
where otherwise required in law.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA9D2660E2A6F4A5CBE6532861B40C423"><enum>(4)</enum><header display-inline="yes-display-inline">Free copy</header><text display-inline="yes-display-inline">Notwithstanding paragraph (3), the creditor
shall provide a copy of each written appraisal or valuation at no additional
cost to the applicant.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE3409460B56E42769DE639CFE6568B4F"><enum>(5)</enum><header display-inline="yes-display-inline">Notification to applicants</header><text display-inline="yes-display-inline">At the time of application, the creditor
shall notify an applicant in writing of the right to receive a copy of each
written appraisal and valuation under this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA46D89426A78400488B61715E501D08C"><enum>(6)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Board shall prescribe regulations to
implement this subsection within 1 year of the date of the enactment of this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H29E992B1551644AE8358E1CC9C58CCB1"><enum>(7)</enum><header display-inline="yes-display-inline">Valuation defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>valuation</term> shall include any estimate of the value of a dwelling
developed in connection with a creditor’s decision to provide credit, including
those values developed pursuant to a policy of a government sponsored
enterprise or by an automated valuation model, a broker price opinion, or other
methodology or
mechanism.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H421C3452030E451298CF40EB4EAF4B15" section-type="subsequent-section"><enum>9506.</enum><header display-inline="yes-display-inline">Real Estate Settlement Procedures Act of
1974 amendment relating to certain appraisal fees</header><text display-inline="no-display-inline">Section 4 of the Real Estate Settlement
Procedures Act of 1974 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H3CE2158D404149CF8095EB1097706068" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HAB86A28FE2074EF9A889408C0597B1F4"><enum>(c)</enum><text display-inline="yes-display-inline">The standard form described in subsection
(a) shall include, in the case of an appraisal coordinated by an appraisal
management company (as such term is defined in section 1121(11) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3350(11))), a clear disclosure of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDA38A4EB55304B0F883EB9075B573C43"><enum>(1)</enum><text display-inline="yes-display-inline">the fee paid directly to the appraiser by
such company; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C611AF9E51149A7904304C2E81ED2BF"><enum>(2)</enum><text display-inline="yes-display-inline">the administration fee charged by such
company.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle commented="no" id="HA0242C652F7B468A932D63128078EFAE" level-type="subsequent"><enum>G</enum><header display-inline="yes-display-inline">Sense of Congress regarding the importance
of government sponsored enterprises reform</header>
<section commented="no" display-inline="no-display-inline" id="HF2B4714EEF204D91BBFC1BC04818D8BA" section-type="subsequent-section"><enum>9601.</enum><header display-inline="yes-display-inline">Sense of Congress regarding the importance
of Government-sponsored enterprises reform to enhance the protection,
limitation, and regulation of the terms of residential mortgage credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H9CF6053A195D4CE18392FA895A73B764"><enum>(a)</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="yes-display-inline">The Congress finds as follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA2F85304446A47578502F852292A88A6"><enum>(1)</enum><text display-inline="yes-display-inline">The Government-sponsored enterprises,
Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan
Mortgage Corporation (Freddie Mac), were chartered by Congress to ensure a
reliable and affordable supply of mortgage funding, but enjoy a dual legal
status as privately owned corporations with Government mandated affordable
housing goals.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H096FA64D8D5A4FB0AC3EE022870980DE"><enum>(2)</enum><text display-inline="yes-display-inline">In 1996, the Department of Housing and
Urban Development required that 42 percent of Fannie Mae’s and Freddie Mac’s
mortgage financing should go to borrowers with income levels below the median
for a given area.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H238EF4C2FC1247F39FECC7CE725EB22A"><enum>(3)</enum><text display-inline="yes-display-inline">In 2004, the Department of Housing and
Urban Development revised those goals, increasing them to 56 percent of their
overall mortgage purchases by 2008, and additionally mandated that 12 percent
of all mortgage purchases by Fannie Mae and Freddie Mac be <quote>special
affordable</quote> loans made to borrowers with incomes less than 60 percent of
an area’s median income, a target that ultimately increased to 28 percent for
2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8D0B0CBF18F74059A33E79DD90194202"><enum>(4)</enum><text display-inline="yes-display-inline">To help fulfill those mandated affordable
housing goals, in 1995 the Department of Housing and Urban Development
authorized Fannie Mae and Freddie Mac to purchase subprime securities that
included loans made to low-income borrowers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD9556734191C40659D462EC24A302565"><enum>(5)</enum><text display-inline="yes-display-inline">After this authorization to purchase
subprime securities, subprime and near-prime loans increased from 9 percent of
securitized mortgages in 2001 to 40 percent in 2006, while the market share of
conventional mortgages dropped from 78.8 percent in 2003 to 50.1 percent by
2007 with a corresponding increase in subprime and Alt-A loans from 10.1
percent to 32.7 percent over the same period.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95F3D21FD1894BAB9F2398D348AB7852"><enum>(6)</enum><text display-inline="yes-display-inline">In 2004 alone, Fannie Mae and Freddie Mac
purchased $175,000,000,000 in subprime mortgage securities, which accounted for
44 percent of the market that year, and from 2005 through 2007, Fannie Mae and
Freddie Mac purchased approximately $1,000,000,000,000 in subprime and Alt-A
loans, while Fannie Mae’s acquisitions of mortgages with less than 10 percent
down payments almost tripled.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H10CB2BA2F1F44E509DBA29FF7DED928C"><enum>(7)</enum><text display-inline="yes-display-inline">According to data from the Federal Housing
Finance Agency (FHFA) for the fourth quarter of 2008, Fannie Mae and Freddie
Mac own or guarantee 75 percent of all newly originated mortgages, and Fannie
Mae and Freddie Mac currently own 13.3 percent of outstanding mortgage debt in
the United States and have issued mortgage-backed securities for 31.0 percent
of the residential debt market, a combined total of 44.3 percent of outstanding
mortgage debt in the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCA3C924DD6F44DA995B8BD2091A2F644"><enum>(8)</enum><text display-inline="yes-display-inline">On September 7, 2008, the FHFA placed
Fannie Mae and Freddie Mac into conservatorship, with the Treasury Department
subsequently agreeing to purchase at least $200,000,000,000 of preferred stock
from each enterprise in exchange for warrants for the purchase of 79.9 percent
of each enterprise’s common stock.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H91A004C95FCC4175A9D426B80D11CC0F"><enum>(9)</enum><text display-inline="yes-display-inline">The conservatorship for Fannie Mae and
Freddie Mac has potentially exposed taxpayers to upwards of $5,300,000,000,000
worth of risk.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EB46A55ADC74024AFF96D5389C0DF8E"><enum>(10)</enum><text display-inline="yes-display-inline">The hybrid public-private status of Fannie
Mae and Freddie Mac is untenable and must be resolved to assure that consumers
are offered and receive residential mortgage loans on terms that reasonably
reflect their ability to repay the loans and that are understandable and not
unfair, deceptive, or abusive.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC6E652E9EBE4D5D83113A0A23D46C1E"><enum>(b)</enum><header display-inline="yes-display-inline">Sense of the Congress</header><text display-inline="yes-display-inline">It is the sense of the Congress that
efforts to enhance by the protection, limitation, and regulation of the terms
of residential mortgage credit and the practices related to such credit would
be incomplete without enactment of meaningful structural reforms of Fannie Mae
and Freddie Mac.</text>
</subsection></section></subtitle><subtitle commented="no" id="HA90AE24ACD2C4892940F420A3CB33914" level-type="subsequent"><enum>H</enum><header display-inline="yes-display-inline">Reports and Data Collection</header>
<section commented="no" display-inline="no-display-inline" id="H75EA9007A9F1497993769B07BCCA2FED" section-type="subsequent-section"><enum>9701.</enum><header display-inline="yes-display-inline">GAO study report on government efforts to
combat mortgage foreclosure rescue scams and loan modification fraud</header>
<subsection commented="no" display-inline="no-display-inline" id="HB3CFD0FC4B3C4E41912CBB846FA48A2F"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study of the current inter-agency efforts of the
Secretary of the Treasury, the Secretary of Housing and Urban Development, the
Attorney General, and the Federal Trade Commission to crackdown on mortgage
foreclosure rescue scams and loan modification fraud in order to advise the
Congress to the risks and vulnerabilities of emerging schemes in the loan
modification arena.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7200B52C4B4D4691B0BFF1C879D2C050"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4993C71F52AA4576A1D26AA3723A833A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Comptroller General shall submit a
report to the Congress on the study conducted under subsection (a) containing
such recommendations for legislative and administrative actions as the
Comptroller General may determine to be appropriate in addition to the
recommendations required under paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6005D4986C5A4571873A893F15258263"><enum>(2)</enum><header display-inline="yes-display-inline">Specific topics</header><text display-inline="yes-display-inline">The report made under paragraph (1) shall
include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H595AAD00C24F49889185B00192F83A94"><enum>(A)</enum><text display-inline="yes-display-inline">an evaluation of the effectiveness of the
inter-agency task force current efforts to combat mortgage foreclosure rescue
scams and loan modification fraud scams;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9DA7FE40CBDC4D378777D487A2F0E0F5"><enum>(B)</enum><text display-inline="yes-display-inline">specific recommendations on agency or
legislative action that are essential to properly protect homeowners from
mortgage foreclosure rescue scams and loan modification fraud scams; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H186D3AA1547249EB9F388A9A8649010A"><enum>(C)</enum><text display-inline="yes-display-inline">the adequacy of financial resources that
the Federal Government is allocating to—</text>
<clause commented="no" display-inline="no-display-inline" id="HE52E9C57F82F47DF860FAEC054A63433"><enum>(i)</enum><text display-inline="yes-display-inline">crackdown on loan modification and
foreclosure rescue scams; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8A3304BC2BA14FDDA814528B6A618995"><enum>(ii)</enum><text display-inline="yes-display-inline">the education of homeowners about
fraudulent scams relating to loan modification and foreclosure rescues.</text>
</clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HFC05FA3F75444252B5F825EDF76381C6" section-type="subsequent-section"><enum>9702.</enum><header display-inline="yes-display-inline">Reporting of mortgage data by
State</header>
<subsection commented="no" display-inline="no-display-inline" id="H7D96B7DA4F9A45499C4BB43A6B9C598D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 104(a) of the Helping Families Save
Their Homes Act of 2009 (division A of Public Law 111–22) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE4404EBFDD5B4A6392646C8B98AD007A"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>resulting</quote> and inserting <quote>in each State that
result</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDDFC981F86CA4C7E8C5037EA2594255B"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3), by inserting <quote>each
State for</quote> after <quote>modifications in</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3537A9892C0496686F47E8715A9D191"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (4), by inserting <quote>in
each State</quote> after <quote>total number of loans</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H22F7679191D546CAA3B322587230BB1C"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 104(b)(1)(A) of such Act is amended
by adding at the end the following sentence: <quote>Not later than 60 days
after the date of the enactment of the Wall Street Reform and Consumer
Protection Act of 2009, the Comptroller of the Currency and the Director of the
Office of Thrift Supervision shall update such requirements to reflect
amendments made to this section by such Act.</quote>.</text>
</subsection></section></subtitle><subtitle commented="no" id="H297247A3207D4CCA86AE6094D8E62195" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Multifamily mortgage resolution</header>
<section commented="no" display-inline="no-display-inline" id="HAC871B991FF4454196B181EFB9337B1E" section-type="subsequent-section"><enum>9801.</enum><header display-inline="yes-display-inline">Multifamily mortgage resolution
program</header>
<subsection commented="no" display-inline="no-display-inline" id="H4D50D6DD422C4A65BD2F43FA104B495B"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall develop a program under this subsection to ensure the
protection of current and future tenants and at-risk multifamily properties,
where feasible, based on criteria that may include—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB389FDF292C84B27AFC6F7D1B38BFA51"><enum>(1)</enum><text display-inline="yes-display-inline">creating sustainable financing of such
properties, that may take into consideration such factors as—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H78060C6E91464FDBB991D6C12CD91DC3"><enum>(A)</enum><text display-inline="yes-display-inline">the rental income generated by such
properties; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C154355DB7E4BED988112434343DAED"><enum>(B)</enum><text display-inline="yes-display-inline">the preservation of adequate operating
reserves;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF9189D9704DB46DF84320F0D63F58422"><enum>(2)</enum><text display-inline="yes-display-inline">maintaining the level of Federal, State,
and city subsidies in effect as of the date of the enactment of this
Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H09DBD69A17BD4184A7E56EE3CDCB73F7"><enum>(3)</enum><text display-inline="yes-display-inline">providing funds for rehabilitation;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DA50102F304410E9E91FF1EC4BB88FA"><enum>(4)</enum><text display-inline="yes-display-inline">facilitating the transfer of such
properties, when appropriate and with the agreement of owners, to responsible
new owners and ensuring affordability of such properties.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HACA9B241649242888A6DB2DB78C4D480"><enum>(b)</enum><header display-inline="yes-display-inline">Coordination</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may, in carrying out the program developed under this section,
coordinate with the Secretary of the Treasury, the Federal Deposit Insurance
Corporation, the Board of Governors of the Federal Reserve System, the Federal
Housing Finance Agency, and any other Federal Government agency that the
Secretary considers appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1B8488E1EF0A4FCA8D87C78181D0E620"><enum>(c)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>multifamily properties</quote> means a residential structure that
consists of 5 or more dwelling units.</text>
</subsection></section></subtitle><subtitle commented="no" id="HB132157402D14AD383116A7AA8E8D642" level-type="subsequent"><enum>J</enum><header display-inline="yes-display-inline">Study of effect of drywall presence on
foreclosures</header>
<section commented="no" display-inline="no-display-inline" id="HC86A0FE6E90F4210810F8299879875C1" section-type="subsequent-section"><enum>9901.</enum><header display-inline="yes-display-inline">Study of effect of drywall presence on
foreclosures</header>
<subsection commented="no" display-inline="no-display-inline" id="HEC4FB379311144EBAA95424C979B2637"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development, in consultation with the Secretary of the Treasury, shall conduct
a study of the effect on residential mortgage loan foreclosures of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB40019353EE94CC0B60D94A79056672F"><enum>(1)</enum><text display-inline="yes-display-inline">the presence in residential structures
subject to such mortgage loans of drywall that was imported from China during
the period beginning with 2004 and ending at the end of 2007; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H941AF8852D194A08A423E35D716E839B"><enum>(2)</enum><text display-inline="yes-display-inline">the availability of property insurance for
residential structures in which such drywall is present.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3DDFA069970A4BAE9B99FC32CEA6F011"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than the expiration of the
120-day period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit to the Congress a
report on the study conducted under subsection (a) containing its findings,
conclusions, and recommendations.</text>
</subsection></section></subtitle><subtitle commented="no" id="HBD71B08BF68943809D1697EE103BB6DE" level-type="subsequent"><enum>K</enum><header display-inline="yes-display-inline">Home Affordable Modification
Program</header>
<section commented="no" display-inline="no-display-inline" id="H0D101686EF8B4F91969941B21371FCEB" section-type="subsequent-section"><enum>9911.</enum><header display-inline="yes-display-inline">Home Affordable Modification Program
guidelines</header>
<subsection commented="no" display-inline="no-display-inline" id="HB62C004A42B64AB9B214DC40C80DB6A1"><enum>(a)</enum><header display-inline="yes-display-inline">Net present value input data</header><text display-inline="yes-display-inline">The Secretary of the Treasury (in this
section referred to as the <quote>Secretary</quote>) shall revise the
supplemental directives and other guidelines for the Home Affordable
Modification Program of the Making Home Affordable initiative of the Secretary
of the Treasury, authorized under the Emergency Economic Stabilization Act of
2008 (Public Law 110–343), to require each mortgage servicer participating in
such program to provide each borrower under a mortgage whose request for a
mortgage modification under the Program is denied with all borrower-related and
mortgage-related input data used in any net present value (NPV) analyses
performed in connection with the subject mortgage. Such input data shall be
provided to the borrower at the time of such denial.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H45113A22705B4D6588163B0D1CFE27B0"><enum>(b)</enum><header display-inline="yes-display-inline">Web-based site for NPV calculator and
application</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE45D147A7F6D43BB9641213E40A08F8F"><enum>(1)</enum><header display-inline="yes-display-inline">NPV
calculator</header><text display-inline="yes-display-inline">In carrying out
the Home Affordable Modification Program, the Secretary shall establish and
maintain a site on the World Wide Web that provides a calculator for net
present value analyses of a mortgage, based on the Secretary’s methodology for
calculating such value, that mortgagors can use to enter information regarding
their own mortgages and that provides a determination after entering such
information regarding a mortgage of whether such mortgage would be accepted or
rejected for modification under the Program, using such methodology.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H72D3808E003641E68ECBBA5D01F0E330"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure</header><text display-inline="yes-display-inline">Such Web site shall also prominently
disclose that each mortgage servicer participating in such Program may use a
method for calculating net present value of a mortgage that is different than
the method used by such calculator.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28EA2D0310F94D37A83B71F73F320EEE"><enum>(3)</enum><header display-inline="yes-display-inline">Application</header><text display-inline="yes-display-inline">The Secretary shall make a reasonable
effort to include on such World Wide Web site a method for homeowners to apply
for a mortgage modification under the Home Affordable Modification
Program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6EDA77B079FB44BEBCB0EB68CDC91A5C"><enum>(c)</enum><header display-inline="yes-display-inline">Public availability of NPV methodology,
computer model, and variables</header><text display-inline="yes-display-inline">The Secretary shall make publicly
available, including by posting on a World Wide Web site of the
Secretary—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3CA29559B5EE461A85860A66C355D0D6"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary’s methodology and computer
model, including all formulae used in such computer model, used for calculating
net present value of a mortgage that is used by the calculator established
pursuant to subsection (b); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC9D1BFBAF27C44C1A59EB2411EA80723"><enum>(2)</enum><text display-inline="yes-display-inline">all variables used in such net present
value analysis.</text>
</paragraph></subsection></section></subtitle><subtitle commented="no" id="H60864F35DE354264B8CBAE18B9140D19" level-type="subsequent"><enum>L</enum><header display-inline="yes-display-inline">Making Home Affordable Program</header>
<section commented="no" display-inline="no-display-inline" id="H5F32D6F9B2EF456E93F9B1A831501593" section-type="subsequent-section"><enum>9921.</enum><header display-inline="yes-display-inline">Public availability of information</header>
<subsection commented="no" display-inline="no-display-inline" id="HE2F3F9917342456089035BBD0B9F2535"><enum>(a)</enum><header display-inline="yes-display-inline">Revisions to program
guidelines</header><text display-inline="yes-display-inline">The Secretary of
the Treasury (in this section referred to as the <quote>Secretary</quote>)
shall revise the guidelines for the Home Affordable Modification Program of the
Making Home Affordable initiative of the Secretary of the Treasury, authorized
under the Emergency Economic Stabilization Act of 2008 (Public Law 110–343), to
provide that the data being collected by the Secretary from each mortgage
servicer and lender participating in the Program is made public in accordance
with subsection (b).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8F3DA15706C3485A970882A2779F9A84"><enum>(b)</enum><header display-inline="yes-display-inline">Public availability</header><text display-inline="yes-display-inline">Data shall be made available according to
the following guidelines:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H77C547694B4E43BBBB7D47BB200351A4"><enum>(1)</enum><text display-inline="yes-display-inline">Not more than 14 days after each monthly
deadline for submission of data by mortgage servicers and lenders participating
in the Program, reports shall be made publicly available by means of a World
Wide Web site of the Secretary, and by submitting a report to the Congress,
that shall includes the following information:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H194CCFDFB2224D15B2884AD37FAEC2E2"><enum>(A)</enum><text display-inline="yes-display-inline">The number of requests for mortgage
modifications under the Program that the servicer or lender has
received.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H63B0858837B446C5AFA82AD31686EEE3"><enum>(B)</enum><text display-inline="yes-display-inline">The number of requests for mortgage
modifications under the Program that the servicer or lender has
processed.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0BAF358C911D4B7B9A51C7AA27C666C9"><enum>(C)</enum><text display-inline="yes-display-inline">The number of requests for mortgage
modifications under the Program that the servicer or lender has
approved.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFDAA563CDC104337B0E7AF3FAA384BF1"><enum>(D)</enum><text display-inline="yes-display-inline">The number of requests for mortgage
modifications under the Program that the servicer or lender has denied.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H71360A556B3C472E9A8EFC65D90746F1"><enum>(2)</enum><text display-inline="yes-display-inline">Not more than 60 days after each monthly
deadline for submission of data by mortgage servicers and lenders participating
in the Program, the Secretary shall make data tables available to the public at
the individual record level. The Secretary shall issue regulations
prescribing—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7BD36B86DC254173A0CF70559F12ADF2"><enum>(A)</enum><text display-inline="yes-display-inline">the procedures for disclosing such data to
the public; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5D79185BEE764E14A5886E31C93EC770"><enum>(B)</enum><text display-inline="yes-display-inline">such deletions as the Secretary may
determine to be appropriate to protect any privacy interest of any mortgage
modification applicant, including the deletion or alteration of the applicant's
name and identification number.</text>
</subparagraph></paragraph></subsection></section></subtitle><enum>VIII</enum><header display-inline="yes-display-inline">Foreclosure Avoidance and Affordable
Housing</header>
<section commented="no" display-inline="no-display-inline" id="H846ED3F973394C6E8DDEB118968FE03E" section-type="subsequent-section"><enum>10001.</enum><header display-inline="yes-display-inline">Emergency mortgage relief</header>
<subsection commented="no" display-inline="no-display-inline" id="H9A18C8398AF5403E8123183BC698D14B"><enum>(a)</enum><header display-inline="yes-display-inline">Use of TARP funds</header><text display-inline="yes-display-inline">Using the authority available under
sections 101(a) and 115(a) of division A of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary of the
Treasury shall transfer to the Secretary of Housing and Urban Development
$3,000,000,000, and the Secretary of Housing and Urban Development shall credit
such amount to the Emergency Homeowners’ Relief Fund, which such Secretary
shall establish pursuant to section 107 of the Emergency Housing Act of 1975
(12 U.S.C. 2706), as such Act is amended by this section, for use for emergency
mortgage assistance in accordance with title I of such Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF9D4A14D525F4CC1AE48271CF4EA1F0F"><enum>(b)</enum><header display-inline="yes-display-inline">Reauthorization of emergency mortgage
relief program</header><text display-inline="yes-display-inline">Title I of the
Emergency Housing Act of 1975 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H70132B57DF58492CB96622D1DCEF9F75"><enum>(1)</enum><text display-inline="yes-display-inline">in section 103 (12 U.S.C. 2702)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBDD82ADE40B749C194497EB7B940279A"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="HC9C01A0C0F8D402787CF720A57E3C851"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>have indicated</quote>
and all that follows through <quote>regulation of the holder</quote> and insert
<quote>have certified</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC3B3515500034AEE81AA6206D6624555"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>(such as the volume of
delinquent loans in its portfolio)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE669A0AC1087427381E17328C95043E6"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>, except that such
statement</quote> and all that follows through <quote>purposes of this
title</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2F094B8700D44678B465DDCC57BFE9E5"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (4), by inserting <quote>or
medical conditions</quote> after <quote>adverse economic
conditions</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H600E20C5B5654F9DB21FFE13782C3F68"><enum>(2)</enum><text display-inline="yes-display-inline">in section 104 (12 U.S.C. 2703)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H383C5DF9308C4EB193E0029AF0A6AB9F"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>, but
such assistance</quote> and all that follows through the period at the end and
inserting the following: <quote>. The amount of assistance provided to a
homeowner under this title shall be an amount that the Secretary determines is
reasonably necessary to supplement such amount as the homeowner is capable of
contributing toward such mortgage payment, except that the aggregate amount of
such assistance provided for any homeowner shall not exceed
$50,000.</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H191B5A5BDD5341A0ACE3DA8C49FBFFC3"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (d), by striking
<quote>interest on a loan or advance</quote>and all that follows through the
end of the subsection and inserting the following: <quote>(1) the rate of
interest on any loan or advance of credit insured under this title shall be
fixed for the life of the loan or advance of credit and shall not exceed the
rate of interest that is generally charged for mortgages on single-family
housing insured by the Secretary of Housing and Urban Development under title
II of the National Housing Act at the time such loan or advance of credit is
made, and (2) no interest shall be charged on interest which is deferred on a
loan or advance of credit made under this title. In establishing rates, terms
and conditions for loans or advances of credit made under this title, the
Secretary shall take into account a homeowner’s ability to repay such loan or
advance of credit.</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B7AE16C548643AA8E30BEAEE155F5D1"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (e), by inserting after the
period at the end of the first sentence the following: <quote>Any eligible
homeowner who receives a grant or an advance of credit under this title may
repay the loan in full, without penalty, by lump sum or by installment payments
at any time before the loan becomes due and payable.</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H37A0094755C24DB8B42B6F1DE4885EF0"><enum>(3)</enum><text display-inline="yes-display-inline">in section 105 (12 U.S.C. 2704)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H34C4E70217DA4351BC3DB1DF7ABFEF9F"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subsection (b);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5189131A8E5345588C871F85DD390F51"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2CE0B090D70642E18229272BDAD7B086"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>and emergency mortgage
relief payments made under section 106</quote> after <quote>insured under this
section</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H681CD1F89A8F4BB7A5D3AF4B6E3ECD05"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>$1,500,000,000 at any
one time</quote> and inserting <quote>$3,000,000,000</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D9D36A00ED440FA83DC5FA173857AC5"><enum>(C)</enum><text display-inline="yes-display-inline">by redesignating subsections (c), (d), and
(e) as subsections (b), (c), and (d), respectively; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H71E9FAFC5EBC4723AABBE5BF6A5B1760"><enum>(D)</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="H730068499292463C84128CE1F7289FAA" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H0BA57DBAC01E4AB99C779447E50D9DB2"><enum>(e)</enum><text display-inline="yes-display-inline">The Secretary shall establish underwriting
guidelines or procedures to allocate amounts made available for loans and
advances insured under this section and for emergency relief payments made
under section 106 based on the likelihood that a mortgagor will be able to
resume mortgage payments, pursuant to the requirement under section
103(5).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE697F83BACB44F449184A0CCDA624EA0"><enum>(4)</enum><text display-inline="yes-display-inline">in section 107—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA389F48AE4DC4718A89FFE47CEF0C11D"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(a)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE0891F3AFAB644F38B7C0F7F4D254632"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (b);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD3CE188FCD41418C8CA95CB3531DBD29"><enum>(5)</enum><text display-inline="yes-display-inline">in section 108 (12 U.S.C. 2707), by adding
at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1C92D6F9CC9344FA8A3D91AF0DA864A3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H78C56A157C17463A9391A8FA454F2A17"><enum>(d)</enum><header display-inline="yes-display-inline">Coverage of existing programs</header><text display-inline="yes-display-inline">The Secretary shall allow funds to be
administered by a State that has an existing program that is determined by the
Secretary to provide substantially similar assistance to homeowners. After such
determination is made such State shall not be required to modify such program
to comply with the provisions of this
title.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H18866DB6DCB24504B935B592EBAEE46F"><enum>(6)</enum><text display-inline="yes-display-inline">in section 109 (12 U.S.C. 2708)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3A5F1327E1C344409B332D1A9BB0EDEB"><enum>(A)</enum><text display-inline="yes-display-inline">in the section heading, by striking
<quote><header-in-text level="section" style="traditional">authorization
and</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F841E72F2AB4D9A83605CCA8B2E171B"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (a);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1A0D08984D3041D9AF0B0C2F2827CADE"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>(b)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0DB1100A1E79448F8424E22CD55ABCC3"><enum>(D)</enum><text display-inline="yes-display-inline">by striking <quote>1977</quote> and
inserting <quote>2011</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF58FA35DAA1422F92BB492EE4247AF7"><enum>(7)</enum><text display-inline="yes-display-inline">by striking sections 110, 111, and 113 (12
U.S.C. 2709, 2710, 2712); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF94CDBDCAA6E42B694DEAD0822F53C32"><enum>(8)</enum><text display-inline="yes-display-inline">by redesignating section 112 (12 U.S.C.
2711) as section 110.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HFCD738EE11F14B8B9A614242625252E4" section-type="subsequent-section"><enum>10002.</enum><header display-inline="yes-display-inline">Additional assistance for Neighborhood
Stabilization Program</header><text display-inline="no-display-inline">Using
the authority made available under sections 101(a) and 115(a) of division A of
the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)),
the Secretary of the Treasury shall transfer to the Secretary of Housing and
Urban Development $1,000,000,000, and the Secretary of Housing and Urban
Development shall use such amounts for assistance to States and units of
general local government for the redevelopment of abandoned and foreclosed
homes, in accordance with the same provisions applicable under the second
undesignated paragraph under the heading <quote>Community Planning and
Development—Community Development Fund</quote> in title XII of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat.
217) to amounts made available under such second undesignated paragraph, except
as follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H852076CAEEA54D5DA38AD9C2A7A0A9F9"><enum>(1)</enum><text display-inline="yes-display-inline">Notwithstanding the matter of such second
undesignated paragraph that precedes the first proviso, amounts made available
by this section shall remain available until expended.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF494ECD9CBBA4A15A65A23B6D2CF6968"><enum>(2)</enum><text display-inline="yes-display-inline">The 3rd, 4th, 5th, 6th, 7th, and 15th
provisos of such second undesignated paragraph shall not apply to amounts made
available by this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H783930C32339456CBA10057BC88F9854"><enum>(3)</enum><text display-inline="yes-display-inline">Amounts made available by this section
shall be allocated based on a funding formula for such amounts established by
the Secretary in accordance with section 2301(b) of the Housing and Economic
Recovery Act of 2008 (42 U.S.C. 5301 note), except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD26C29D6C4164EC18026DDCA43AAB667"><enum>(A)</enum><text display-inline="yes-display-inline">notwithstanding paragraph (2) of such
section 2301(b), the formula shall be established not later than 30 days after
the date of the enactment of this Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H42D1ACD535A04753986E1968779DBCA0"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary may not establish any minimum
grant amount or size for grants to States;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3C79DBC2D23C47628F67FF6661309362"><enum>(C)</enum><text display-inline="yes-display-inline">the Secretary may establish a minimum grant
amount for direct allocations to units of general local government located
within a State, which shall not exceed $1,000,000; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75690EC0C2F24D51A7501571FB65AA83"><enum>(D)</enum><text display-inline="yes-display-inline">each State and local government receiving
grant amounts shall establish procedures to create preferences for the
development of affordable rental housing for properties assisted with amounts
made available by this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5D045D34F0B4E36857A5B0383992F37"><enum>(4)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 2301(c) of the
Housing and Economic Recovery Act of 2008 shall not apply to amounts made
available by this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC4F66D276B28485380ACF89989AB349A"><enum>(5)</enum><text display-inline="yes-display-inline">Section 2302 of the Housing and Economic
Recovery Act of 2008 shall not apply to amounts made available by this
section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28873C4AEFC1463D875E8946E2B65433"><enum>(6)</enum><text display-inline="yes-display-inline">The fourth proviso from the end of such
second undesignated paragraph shall be applied to amounts made available by
this section by substituting <quote>2013</quote> for
<quote>2012</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04A3F254748B4FBCB58C28388C9DFDBB"><enum>(7)</enum><text display-inline="yes-display-inline">Notwithstanding section 2301(a) of the
Housing and Economic Recovery Act of 2008, the term <quote>State</quote> means
any State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin
Islands, American Samoa, and other territory or possession of the United States
for purposes of this section and title III of division B of such Act, as
applied to amounts made available by this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47519B3E4B9D4A5180664B25CFAA88F1"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H00B3C44BE15947989EEE92D4EEFB875D"><enum>(A)</enum><text display-inline="yes-display-inline">None of the amounts made available by this
section shall be distributed to—</text>
<clause commented="no" display-inline="no-display-inline" id="HFB48DDF5AF454687AF089417509A7860" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">any organization which has been convicted
for a violation under Federal law relating to an election for Federal office;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H04B59733BE814CA1902E1851F1612EDE" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">any organization which employs applicable
individuals.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H36D75C4F77E2461B81AE1CBE83C2E91B" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In this paragraph, the term
<quote>applicable individual</quote> means an individual who—</text>
<clause commented="no" display-inline="no-display-inline" id="H3951C0A9C5A04F3282972DE01239D3BA"><enum>(i)</enum><text display-inline="yes-display-inline">is—</text>
<subclause commented="no" display-inline="no-display-inline" id="H71F742FEE90649F9A912AD61741D58B2"><enum>(I)</enum><text display-inline="yes-display-inline">employed by the organization in a permanent
or temporary capacity;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HDD641AB6FB2445B3A3A4B2FD39FA1864"><enum>(II)</enum><text display-inline="yes-display-inline">contracted or retained by the organization;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H5342EDC86CC74C9DB98E446D70563526"><enum>(III)</enum><text display-inline="yes-display-inline">acting on behalf of, or with the express or
apparent authority of, the organization; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H96655712C9B4491A80DB80438D56FD3D"><enum>(ii)</enum><text display-inline="yes-display-inline">has been convicted for a violation under
Federal law relating to an election for Federal office.</text>
</clause></subparagraph></paragraph></section><enum>IX</enum><header display-inline="yes-display-inline">Nonadmitted and Reinsurance Reform
Act</header>
<section commented="no" display-inline="no-display-inline" id="H98BAD035C9634336B7B4858D17838CB1" section-type="subsequent-section"><enum>10051.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This title may be cited as the
<quote><short-title>Nonadmitted and Reinsurance Reform Act
of 2009</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H1B2EEFD685034D1FB1482419014B9182" section-type="subsequent-section"><enum>10052.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">Except as otherwise
specifically provided in this title, this title shall take effect upon the
expiration of the 12-month period beginning on the date of the enactment of
this Act.</text>
</section><subtitle commented="no" id="H033B7817AD9A479AA989EB1B1D8A574C" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Nonadmitted Insurance</header>
<section commented="no" display-inline="no-display-inline" id="HBB43D1DC132F4CFD83A1E6567AD5ABBD" section-type="subsequent-section"><enum>10101.</enum><header display-inline="yes-display-inline">Reporting, payment, and allocation of
premium taxes</header>
<subsection commented="no" display-inline="no-display-inline" id="H1CFD39935BFD49998308B4B4C33AEF2D"><enum>(a)</enum><header display-inline="yes-display-inline">Home State’s Exclusive
Authority</header><text display-inline="yes-display-inline">No State other than
the home State of an insured may require any premium tax payment for
nonadmitted insurance.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFC152165A0034167B3678D489885DED9"><enum>(b)</enum><header display-inline="yes-display-inline">Allocation of Nonadmitted Premium
Taxes</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA249C15AE34A418C96DFA3377ACB9C0F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The States may enter into a compact or
otherwise establish procedures to allocate among the States the premium taxes
paid to an insured’s home State described in subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H985051094C2A48039A8C0F969B40447E"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">Except as expressly
otherwise provided in such compact or other procedures, any such compact or
other procedures—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA47913FB9AF427791DEB1563B568A0C"><enum>(A)</enum><text display-inline="yes-display-inline">if adopted on or before the expiration of
the 330-day period that begins on the date of the enactment of this Act, shall
apply to any premium taxes that, on or after such date of enactment, are
required to be paid to any State that is subject to such compact or procedures;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4DECDEDF173D44B084EC9A8AA4D450E2"><enum>(B)</enum><text display-inline="yes-display-inline">if adopted after the expiration of such
330-day period, shall apply to any premium taxes that, on or after January 1 of
the first calendar year that begins after the expiration of such 330-day
period, are required to be paid to any State that is subject to such compact or
procedures.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD156DE93737B45E0B235B609478A4773"><enum>(3)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Upon the expiration of the 330-day period
referred to in paragraph (2), the NAIC may submit a report to the Committee on
Financial Services and Committee on the Judiciary of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate identifying and describing any compact or other procedures for
allocation among the States of premium taxes that have been adopted during such
period by any States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H834EDECDE5E5431986B3B36F10A74106"><enum>(4)</enum><header display-inline="yes-display-inline">Nationwide system</header><text display-inline="yes-display-inline">The Congress intends that each State adopt
nationwide uniform requirements, forms, and procedures, such as an interstate
compact, that provides for the reporting, payment, collection, and allocation
of premium taxes for nonadmitted insurance consistent with this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H443E255F028F49278821DD29EE486A6C"><enum>(c)</enum><header display-inline="yes-display-inline">Allocation Based on Tax Allocation
Report</header><text display-inline="yes-display-inline">To facilitate the
payment of premium taxes among the States, an insured’s home State may require
surplus lines brokers and insureds who have independently procured insurance to
annually file tax allocation reports with the insured’s home State detailing
the portion of the nonadmitted insurance policy premium or premiums
attributable to properties, risks or exposures located in each State. The
filing of a nonadmitted insurance tax allocation report and the payment of tax
may be made by a person authorized by the insured to act as its agent.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9BF3A0245F3A4B3785F573DDEF976500" section-type="subsequent-section"><enum>10102.</enum><header display-inline="yes-display-inline">Regulation of nonadmitted insurance by
insured’s home state</header>
<subsection commented="no" display-inline="no-display-inline" id="H851D1ABAE14441F3B0D6A6EB8B845646"><enum>(a)</enum><header display-inline="yes-display-inline">Home State Authority</header><text display-inline="yes-display-inline">Except as otherwise provided in this
section, the placement of nonadmitted insurance shall be subject to the
statutory and regulatory requirements solely of the insured’s home
State.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0A447A47ADE4498BB77426F6AF8B792B"><enum>(b)</enum><header display-inline="yes-display-inline">Broker Licensing</header><text display-inline="yes-display-inline">No State other than an insured’s home State
may require a surplus lines broker to be licensed in order to sell, solicit, or
negotiate nonadmitted insurance with respect to such insured.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H72B9123FBDF64A3BB05F9204BFAD5656"><enum>(c)</enum><header display-inline="yes-display-inline">Enforcement Provision</header><text display-inline="yes-display-inline">With respect to section 10101 and
subsections (a) and (b) of this section, any law, regulation, provision, or
action of any State that applies or purports to apply to nonadmitted insurance
sold to, solicited by, or negotiated with an insured whose home State is
another State shall be preempted with respect to such application.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H87F3C0D8B8DF4C35868B89056572FE12"><enum>(d)</enum><header display-inline="yes-display-inline">Workers’ Compensation
Exception</header><text display-inline="yes-display-inline">This section may
not be construed to preempt any State law, rule, or regulation that restricts
the placement of workers’ compensation insurance or excess insurance for
self-funded workers’ compensation plans with a nonadmitted insurer.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H006F7E4C18404355A71B99DCB1E54162" section-type="subsequent-section"><enum>10103.</enum><header display-inline="yes-display-inline">Participation in national producer
database</header><text display-inline="no-display-inline">After the expiration
of the 2-year period beginning on the date of the enactment of this Act, a
State may not collect any fees relating to licensing of an individual or entity
as a surplus lines broker in the State unless the State has in effect at such
time laws or regulations that provide for participation by the State in the
national insurance producer database of the NAIC, or any other equivalent
uniform national database, for the licensure of surplus lines brokers and the
renewal of such licenses.</text>
</section><section commented="no" display-inline="no-display-inline" id="H312A49A249954769B1D0C2D3EDF4C642" section-type="subsequent-section"><enum>10104.</enum><header display-inline="yes-display-inline">Uniform standards for surplus lines
eligibility</header><text display-inline="no-display-inline">A State may
not—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD99147EE9524449FB343EBBD5EC091CC"><enum>(1)</enum><text display-inline="yes-display-inline">impose eligibility requirements on, or
otherwise establish eligibility criteria for, nonadmitted insurers domiciled in
a United States jurisdiction, except in conformance with such requirements and
criteria in sections 5A(2) and 5C(2)(a) of the Non-Admitted Insurance Model
Act, unless the State has adopted nationwide uniform requirements, forms, and
procedures developed in accordance with section 10101(b) of this title that
include alternative nationwide uniform eligibility requirements; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5B026E69ED37469C92BA5E35C69ADA09"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit a surplus lines broker from
placing nonadmitted insurance with, or procuring nonadmitted insurance from, a
nonadmitted insurer domiciled outside the United States that is listed on the
Quarterly Listing of Alien Insurers maintained by the International Insurers
Department of the NAIC.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HF9096C3528B249088A0A60EACB728D51" section-type="subsequent-section"><enum>10105.</enum><header display-inline="yes-display-inline">Streamlined application for commercial
purchasers</header><text display-inline="no-display-inline">A surplus lines
broker seeking to procure or place nonadmitted insurance in a State for an
exempt commercial purchaser shall not be required to satisfy any State
requirement to make a due diligence search to determine whether the full amount
or type of insurance sought by such exempt commercial purchaser can be obtained
from admitted insurers if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H22575F6D35E4458C992A2513B104C1CA"><enum>(1)</enum><text display-inline="yes-display-inline">the broker procuring or placing the surplus
lines insurance has disclosed to the exempt commercial purchaser that such
insurance may or may not be available from the admitted market that may provide
greater protection with more regulatory oversight; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3880928F7D994156BB20DD66005E7ED4"><enum>(2)</enum><text display-inline="yes-display-inline">the exempt commercial purchaser has
subsequently requested in writing the broker to procure or place such insurance
from a nonadmitted insurer.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H0D6CD224E8C24F55920A87CB328CD68C" section-type="subsequent-section"><enum>10106.</enum><header display-inline="yes-display-inline">GAO study of nonadmitted insurance
market</header>
<subsection commented="no" display-inline="no-display-inline" id="HC00093D7CC384E089B997655647EDF73"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study of the nonadmitted insurance market to determine
the effect of the enactment of this subtitle on the size and market share of
the nonadmitted insurance market for providing coverage typically provided by
the admitted insurance market.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDEF9F14E12F24B7C991C5D5E59172F4A"><enum>(b)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">The study shall determine and
analyze—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H30A1340DDD1644B0A213C3CD2025DB19"><enum>(1)</enum><text display-inline="yes-display-inline">the change in the size and market share of
the nonadmitted insurance market and in the number of insurance companies and
insurance holding companies providing such business in the 18-month period that
begins upon the effective date of this Act;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0908C0F807714122B7780CA8FB246D9D"><enum>(2)</enum><text display-inline="yes-display-inline">the extent to which insurance coverage
typically provided by the admitted insurance market has shifted to the
nonadmitted insurance market;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF95BD6CC3D4742B395D1031E6E231563"><enum>(3)</enum><text display-inline="yes-display-inline">the consequences of any change in the size
and market share of the nonadmitted insurance market, including differences in
the price and availability of coverage available in both the admitted and
nonadmitted insurance markets;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H87128E2C3A534F15A0F58D9AB610908B"><enum>(4)</enum><text display-inline="yes-display-inline">the extent to which insurance companies and
insurance holding companies that provide both admitted and nonadmitted
insurance have experienced shifts in the volume of business between admitted
and nonadmitted insurance; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD26E9647E6F44E7E93F17957E9D30070"><enum>(5)</enum><text display-inline="yes-display-inline">the extent to which there has been a change
in the number of individuals who have nonadmitted insurance policies, the type
of coverage provided under such policies, and whether such coverage is
available in the admitted insurance market.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFD203D3B965942EC8A16B227E81A811C"><enum>(c)</enum><header display-inline="yes-display-inline">Consultation With NAIC</header><text display-inline="yes-display-inline">In conducting the study under this section,
the Comptroller General shall consult with the NAIC.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD3057D8C7C9B4363A3CA1B246FEC662C"><enum>(d)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">The Comptroller General shall complete the
study under this section and 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 regarding the findings of the study not later
than 30 months after the effective date of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD21A3C608E4C4D5D96BC6C290BD593B9" section-type="subsequent-section"><enum>10107.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H131FF42FD5144156A52AE8547C9545D7"><enum>(1)</enum><header display-inline="yes-display-inline">Admitted insurer</header><text display-inline="yes-display-inline">The term <term>admitted insurer</term>
means, with respect to a State, an insurer licensed to engage in the business
of insurance in such State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2BDFB4E1EF324327A03BBD89FF0232FE"><enum>(2)</enum><header display-inline="yes-display-inline">Affiliate</header><text display-inline="yes-display-inline">The term <term>affiliate</term> means, with
respect to an insured, any entity that controls, is controlled by, or is under
common control with the insured.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63DE878B09044C78B769E3BB412FB79F"><enum>(3)</enum><header display-inline="yes-display-inline">Affiliated group</header><text display-inline="yes-display-inline">The term <term>affiliated group</term>
means any group of entities that are all affiliated.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0B4A72F74CD4FFABB75EC0B8FDD6ECD"><enum>(4)</enum><header display-inline="yes-display-inline">Control</header><text display-inline="yes-display-inline">An entity has <quote>control</quote> over
another entity if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE7599F79745A41A4867D360D558DF5B1"><enum>(A)</enum><text display-inline="yes-display-inline">the entity directly or indirectly or acting
through one or more other persons owns, controls or has the power to vote 25
percent or more of any class of voting securities of the other entity;
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H00ADA15429574F24AD686D7E585A02ED"><enum>(B)</enum><text display-inline="yes-display-inline">the entity controls in any manner the
election of a majority of the directors or trustees of the other entity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H952027BAC7C34DA4B40948CB9EF96732"><enum>(5)</enum><header display-inline="yes-display-inline">Exempt commercial purchaser</header><text display-inline="yes-display-inline">The term <term>exempt commercial
purchaser</term> means any person purchasing commercial insurance that, at the
time of placement, meets the following requirements:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6B4FBD82C7E74E2EB7D4948D6F51B018"><enum>(A)</enum><text display-inline="yes-display-inline">The person employs or retains a qualified
risk manager to negotiate insurance coverage.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2502227C60194A6BA18E8D77D4618078"><enum>(B)</enum><text display-inline="yes-display-inline">The person has paid aggregate nationwide
commercial property and casualty insurance premiums in excess of $100,000 in
the immediately preceding 12 months.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB8ECC9D14F74CE2A7923F2DEBA7D8E4"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H3A4ACC4D8ED54C94B43C503FE3CC719F"><enum>(i)</enum><text display-inline="yes-display-inline">The person meets at least one of the
following criteria:</text>
<subclause commented="no" display-inline="no-display-inline" id="H5DFF7D06260F4BE28194645BB15AFFE7"><enum>(I)</enum><text display-inline="yes-display-inline">The person possesses a net worth in excess
of $20,000,000, as such amount is adjusted pursuant to clause (ii).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HCCE43EECB84F4017AD5D616630AFEFD3"><enum>(II)</enum><text display-inline="yes-display-inline">The person generates annual revenues in
excess of $50,000,000, as such amount is adjusted pursuant to clause
(ii).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6197A2283505476DA644FF8D01474051"><enum>(III)</enum><text display-inline="yes-display-inline">The person employs more than 500 full time
or full time equivalent employees per individual insured or is a member of an
affiliated group employing more than 1,000 employees in the aggregate.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8ADCB45BCC3B4A7F8806C36B1DC86B3D"><enum>(IV)</enum><text display-inline="yes-display-inline">The person is a not-for-profit organization
or public entity generating annual budgeted expenditures of at least
$30,000,000, as such amount is adjusted pursuant to clause (ii).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H9F6C6924B2CA47C1A9FA188D00C1D057"><enum>(V)</enum><text display-inline="yes-display-inline">The person is a municipality with a
population in excess of 50,000 persons.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H7F8DD931F8854063881B1B09F50F363D"><enum>(ii)</enum><text display-inline="yes-display-inline">Effective on the fifth January 1 occurring
after the date of the enactment of this Act and each fifth January 1 occurring
thereafter, the amounts in subclauses (I), (II), and (IV) of clause (i) shall
be adjusted to reflect the percentage change for such 5-year period in the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF823F734BB8E44D58FDC27E02609F181"><enum>(6)</enum><header display-inline="yes-display-inline">Home state</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA801591AD8CC44E4A3CD89D7C7BB5855"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the
term <term>home State</term> means, with respect to an insured—</text>
<clause commented="no" display-inline="no-display-inline" id="HF71AB02322814B489E80011BD865C1C1"><enum>(i)</enum><text display-inline="yes-display-inline">the State in which an insured maintains its
principal place of business or, in the case of an individual, the individual’s
principal residence; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA7849057633E4E14AA7A09A279780605"><enum>(ii)</enum><text display-inline="yes-display-inline">if 100 percent of the insured risk is
located out of the State referred to in subparagraph (A), the State to which
the greatest percentage of the insured’s taxable premium for that insurance
contract is allocated.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H827A5E3F4B1F4E8991C3543116B73A71"><enum>(B)</enum><header display-inline="yes-display-inline">Affiliated groups</header><text display-inline="yes-display-inline">If more than one insured from an affiliated
group are named insureds on a single nonadmitted insurance contract, the term
<term>home State</term> means the home State, as determined pursuant to
subparagraph (A), of the member of the affiliated group that has the largest
percentage of premium attributed to it under such insurance contract.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD483D6119071415DAA045DE44D5D977C"><enum>(7)</enum><header display-inline="yes-display-inline">Independently procured
insurance</header><text display-inline="yes-display-inline">The term
<term>independently procured insurance</term> means insurance procured directly
by an insured from a nonadmitted insurer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC657F08EBE724F9895586CE4AFA24D18"><enum>(8)</enum><header display-inline="yes-display-inline">NAIC</header><text display-inline="yes-display-inline">The term <term>NAIC</term> means the
National Association of Insurance Commissioners or any successor entity.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63FB70800EC34E778B90DA90FE00C6CE"><enum>(9)</enum><header display-inline="yes-display-inline">Nonadmitted insurance</header><text display-inline="yes-display-inline">The term <term>nonadmitted insurance</term>
means any property and casualty insurance permitted to be placed directly or
through a surplus lines broker with a nonadmitted insurer eligible to accept
such insurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25966D9E57BB4B48AB07C3C63D170380"><enum>(10)</enum><header display-inline="yes-display-inline">Non-Admitted Insurance Model
Act</header><text display-inline="yes-display-inline">The term
<term>Non-Admitted Insurance Model Act</term> means the provisions of the
Non-Admitted Insurance Model Act, as adopted by the NAIC on August 3, 1994, and
amended on September 30, 1996, December 6, 1997, October 2, 1999, and June 8,
2002.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6714607C5AEF4368A81C2333F5419AD6"><enum>(11)</enum><header display-inline="yes-display-inline">Nonadmitted insurer</header><text display-inline="yes-display-inline">The term <term>nonadmitted insurer</term>
means, with respect to a State, an insurer not licensed to engage in the
business of insurance in such State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H24D90F837BA5470ABD133A36FBB2470E"><enum>(12)</enum><header display-inline="yes-display-inline">Qualified risk manager</header><text display-inline="yes-display-inline">The term <term>qualified risk
manager</term> means, with respect to a policyholder of commercial insurance, a
person who meets all of the following requirements:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAC4ECF98266440E2BC991BF66E46BA17"><enum>(A)</enum><text display-inline="yes-display-inline">The person is an employee of, or third
party consultant retained by, the commercial policyholder.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H07A23171878446CBABD8DF1EDBDBC3FF"><enum>(B)</enum><text display-inline="yes-display-inline">The person provides skilled services in
loss prevention, loss reduction, or risk and insurance coverage analysis, and
purchase of insurance.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE1FD113D4DA845C7AF92D72FD0C40EDB"><enum>(C)</enum><text display-inline="yes-display-inline">The person—</text>
<clause commented="no" display-inline="no-display-inline" id="H59584FA127CA4549A2ADE93FBFDE0424"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="HCA1C92759D55471D87E5D79EE711D626"><enum>(I)</enum><text display-inline="yes-display-inline">has a bachelor’s degree or higher from an
accredited college or university in risk management, business administration,
finance, economics, or any other field determined by a State insurance
commissioner or other State regulatory official or entity to demonstrate
minimum competence in risk management; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H37195B39FC9C466E844AC4DB9B48AD94"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="H822FB09C83364788B49D2E36DD25FB65"><enum>(aa)</enum><text display-inline="yes-display-inline">has three years of experience in risk
financing, claims administration, loss prevention, risk and insurance analysis,
or purchasing commercial lines of insurance; or</text>
</item><item commented="no" display-inline="no-display-inline" id="H1937B6FB6FE64BF98C047055977F98C6"><enum>(bb)</enum><text display-inline="yes-display-inline">has one of the following
designations:</text>
<subitem commented="no" display-inline="no-display-inline" id="HA2FD766EF5654A6DA542DDE70EA92B9A"><enum>(AA)</enum><text display-inline="yes-display-inline">a designation as a Chartered Property and
Casualty Underwriter (in this subparagraph referred to as <quote>CPCU</quote>)
issued by the American Institute for CPCU/Insurance Institute of
America;</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="HE9F03AE3D3EF44BDA53DEC93F24C3CC2"><enum>(BB)</enum><text display-inline="yes-display-inline">a designation as an Associate in Risk
Management (ARM) issued by the American Institute for CPCU/Insurance Institute
of America;</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="HF6C9689358D94D729BC0735F11F97ACE"><enum>(CC)</enum><text display-inline="yes-display-inline">a designation as Certified Risk Manager
(CRM) issued by the National Alliance for Insurance Education &
Research;</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H4B469810B34B4997B1CE57BF1D42C113"><enum>(DD)</enum><text display-inline="yes-display-inline">a designation as a RIMS Fellow (RF) issued
by the Global Risk Management Institute; or</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H49A46E196F3D4A4687225DCF75420AAE"><enum>(EE)</enum><text display-inline="yes-display-inline">any other designation, certification, or
license determined by a State insurance commissioner or other State insurance
regulatory official or entity to demonstrate minimum competency in risk
management;</text>
</subitem></item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H523B0DCD04E64FACBEB7ECE0D1084CFF"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H4574569347FE4DF59BE10ACA6F27D7C9"><enum>(I)</enum><text display-inline="yes-display-inline">has at least seven years of experience in
risk financing, claims administration, loss prevention, risk and insurance
coverage analysis, or purchasing commercial lines of insurance; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H45C261443FD04CCBBB451A42672B130A"><enum>(II)</enum><text display-inline="yes-display-inline">has any one of the designations specified
in subitems (AA) through (EE) of clause (i)(II)(bb);</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1BF18EE2D3A9473D90D58289DF09699E"><enum>(iii)</enum><text display-inline="yes-display-inline">has at least 10 years of experience in risk
financing, claims administration, loss prevention, risk and insurance coverage
analysis, or purchasing commercial lines of insurance; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H97D7D7B90B054179B679CA302015DDBD"><enum>(iv)</enum><text display-inline="yes-display-inline">has a graduate degree from an accredited
college or university in risk management, business administration, finance,
economics, or any other field determined by a State insurance commissioner or
other State regulatory official or entity to demonstrate minimum competence in
risk management.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF18847580984450E8295FE3EC1727C2D"><enum>(13)</enum><header display-inline="yes-display-inline">Premium tax</header><text display-inline="yes-display-inline">The term <term>premium tax</term> means,
with respect to surplus lines or independently procured insurance coverage, any
tax, fee, assessment, or other charge imposed by a government entity directly
or indirectly based on any payment made as consideration for an insurance
contract for such insurance, including premium deposits, assessments,
registration fees, and any other compensation given in consideration for a
contract of insurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC6D7C371491A44EBBE1A455137C0DC74"><enum>(14)</enum><header display-inline="yes-display-inline">Surplus lines broker</header><text display-inline="yes-display-inline">The term <term>surplus lines broker</term>
means an individual, firm, or corporation which is licensed in a State to sell,
solicit, or negotiate insurance on properties, risks, or exposures located or
to be performed in a State with nonadmitted insurers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4ABF63E4724A4EE28480E467D41108FA"><enum>(15)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">The term <term>State</term> includes any
State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa.</text>
</paragraph></section></subtitle><subtitle commented="no" id="H46C792EC50F44E09B7C504D61643598A" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Reinsurance</header>
<section commented="no" display-inline="no-display-inline" id="H1AF7067B19324A89B7841B5584F01779" section-type="subsequent-section"><enum>10201.</enum><header display-inline="yes-display-inline">Regulation of credit for reinsurance and
reinsurance agreements</header>
<subsection commented="no" display-inline="no-display-inline" id="H984EF7AF90C3478CBDCB59AF75089B43"><enum>(a)</enum><header display-inline="yes-display-inline">Credit for Reinsurance</header><text display-inline="yes-display-inline">If the State of domicile of a ceding
insurer is an NAIC-accredited State, or has financial solvency requirements
substantially similar to the requirements necessary for NAIC accreditation, and
recognizes credit for reinsurance for the insurer’s ceded risk, then no other
State may deny such credit for reinsurance.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDCF4548605B04CCAB17FF152A5705663"><enum>(b)</enum><header display-inline="yes-display-inline">Additional Preemption of Extraterritorial
Application of State Law</header><text display-inline="yes-display-inline">In
addition to the application of subsection (a), all laws, regulations,
provisions, or other actions of a State that is not the domiciliary State of
the ceding insurer, except those with respect to taxes and assessments on
insurance companies or insurance income, are preempted to the extent that
they—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9835B40023524F80AD571388596762B4"><enum>(1)</enum><text display-inline="yes-display-inline">restrict or eliminate the rights of the
ceding insurer or the assuming insurer to resolve disputes pursuant to
contractual arbitration to the extent such contractual provision is not
inconsistent with the provisions of title 9, United States Code;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H104C8F4965F449C7ACD01AE3E93A29A7"><enum>(2)</enum><text display-inline="yes-display-inline">require that a certain State’s law shall
govern the reinsurance contract, disputes arising from the reinsurance
contract, or requirements of the reinsurance contract;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F0A821EFC394500834BFEF5F25DE02A"><enum>(3)</enum><text display-inline="yes-display-inline">attempt to enforce a reinsurance contract
on terms different than those set forth in the reinsurance contract, to the
extent that the terms are not inconsistent with this subtitle; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB494A693BAE14598957CF56020298EAE"><enum>(4)</enum><text display-inline="yes-display-inline">otherwise apply the laws of the State to
reinsurance agreements of ceding insurers not domiciled in that State.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H15BB1C228B3A43368CF4E4F4D8B86061" section-type="subsequent-section"><enum>10202.</enum><header display-inline="yes-display-inline">Regulation of reinsurer solvency</header>
<subsection commented="no" display-inline="no-display-inline" id="HAD7C3DAE223E48E5BC84DFDF199B0858"><enum>(a)</enum><header display-inline="yes-display-inline">Domiciliary State Regulation</header><text display-inline="yes-display-inline">If the State of domicile of a reinsurer is
an NAIC-accredited State or has financial solvency requirements substantially
similar to the requirements necessary for NAIC accreditation, such State shall
be solely responsible for regulating the financial solvency of the
reinsurer.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE27AD77E04984F75BB71553F370FDF4B"><enum>(b)</enum><header display-inline="yes-display-inline">Nondomiciliary States</header>
<paragraph commented="no" display-inline="no-display-inline" id="H71B71FA669D04E55949E8638F9478876"><enum>(1)</enum><header display-inline="yes-display-inline">Limitation on financial information
requirements</header><text display-inline="yes-display-inline">If the State of
domicile of a reinsurer is an NAIC-accredited State or has financial solvency
requirements substantially similar to the requirements necessary for NAIC
accreditation, no other State may require the reinsurer to provide any
additional financial information other than the information the reinsurer is
required to file with its domiciliary State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5FD3ED1D65AE4165B374D75D7ADC6CFF"><enum>(2)</enum><header display-inline="yes-display-inline">Receipt of information</header><text display-inline="yes-display-inline">No provision of this section shall be
construed as preventing or prohibiting a State that is not the State of
domicile of a reinsurer from receiving a copy of any financial statement filed
with its domiciliary State.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB21295E234BF40458D1A19898CE92E98" section-type="subsequent-section"><enum>10203.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA45106CC5A294C609A1E41A35933B19A"><enum>(1)</enum><header display-inline="yes-display-inline">Ceding
insurer</header><text display-inline="yes-display-inline">The term <term>ceding
insurer</term> means an insurer that purchases reinsurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA82E817D60EE4600B1761C8CFC2E6D5F"><enum>(2)</enum><header display-inline="yes-display-inline">Domiciliary state</header><text display-inline="yes-display-inline">The terms <term>State of domicile</term>
and <term>domiciliary State</term> means, with respect to an insurer or
reinsurer, the State in which the insurer or reinsurer is incorporated or
entered through, and licensed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF354A48A442F48BEB693FB344A8E6FAD"><enum>(3)</enum><header display-inline="yes-display-inline">Reinsurance</header><text display-inline="yes-display-inline">The term <term>reinsurance</term> means the
assumption by an insurer of all or part of a risk undertaken originally by
another insurer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07280B00CED048A5AF6D6817885A8B47"><enum>(4)</enum><header display-inline="yes-display-inline">Reinsurer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H25E5E4E67BCB404CBB69F2071E530D7B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>reinsurer</term> means an
insurer to the extent that the insurer—</text>
<clause commented="no" display-inline="no-display-inline" id="HF0D8728C3E3C4ACE8A90A91983096CC8"><enum>(i)</enum><text display-inline="yes-display-inline">is principally engaged in the business of
reinsurance;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF547FA84A8A84533A8BC171518378A2C"><enum>(ii)</enum><text display-inline="yes-display-inline">does not conduct significant amounts of
direct insurance as a percentage of its net premiums; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4F65C748431645D8B298161442B082B8"><enum>(iii)</enum><text display-inline="yes-display-inline">is not engaged in an ongoing basis in the
business of soliciting direct insurance.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4440537E04134D30BCAAAB3541470B8A"><enum>(B)</enum><header display-inline="yes-display-inline">Determination</header><text display-inline="yes-display-inline">A determination of whether an insurer is a
reinsurer shall be made under the laws of the State of domicile in accordance
with this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2842E87B95274DECAF6CA3A85F9DBDFD"><enum>(5)</enum><header display-inline="yes-display-inline">State</header><text display-inline="yes-display-inline">The term <term>State</term> includes any
State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa.</text>
</paragraph></section></subtitle><subtitle commented="no" id="H043DF534DB704D5A94DC2287C0F5FCF0" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Rule of Construction</header>
<section commented="no" display-inline="no-display-inline" id="H83B5649C45054F65912D503DB958B501" section-type="subsequent-section"><enum>10301.</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="no-display-inline">Nothing in this title or amendments to this
title shall be construed to modify, impair, or supersede the application of the
antitrust laws. Any implied or actual conflict between this title and any
amendments to this title and the antitrust laws shall be resolved in favor of
the operation of the antitrust laws.</text>
</section><section commented="no" display-inline="no-display-inline" id="H3B80E6A2A8B049438EF96F023429FC1A" section-type="subsequent-section"><enum>10302.</enum><header display-inline="yes-display-inline">Severability</header><text display-inline="no-display-inline">If any section or subsection of this title,
or any application of such provision to any person or circumstance, is held to
be unconstitutional, the remainder of this title, and the application of the
provision to any other person or circumstance, shall not be affected.</text>
</section></subtitle><enum>X</enum><header display-inline="yes-display-inline">Interest-bearing transaction accounts
authorized</header>
<section commented="no" display-inline="no-display-inline" id="H04CDBF3FB4A94804A1AE338A41891E51" section-type="subsequent-section"><enum>11001.</enum><header display-inline="yes-display-inline">Interest-bearing transaction accounts
authorized</header>
<subsection commented="no" display-inline="no-display-inline" id="H2B610093CDAF49738B371A1C9B6600E2"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal of prohibition on payment of
interest on demand deposits</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFDE3CE80A8F94016B728284F1E14FE40"><enum>(1)</enum><header display-inline="yes-display-inline"><act-name parsable-cite="FRA">Federal
Reserve Act</act-name></header><text display-inline="yes-display-inline">Section 19(i) of the
<act-name parsable-cite="FRA">Federal Reserve Act</act-name> (12 U.S.C. 371a)
is amended to read as follows:</text>
<quoted-block act-name="Federal" display-inline="no-display-inline" id="H289E42E83EB14D1DB7448783F6B937D0" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFAF65755FA7E4629B364A92E8C74245E"><enum>(i)</enum><text display-inline="yes-display-inline">[Repealed]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED61AB71D81345A9AF2DFB61C86A1878"><enum>(2)</enum><header display-inline="yes-display-inline">Home Owners’ Loan Act</header><text display-inline="yes-display-inline">The first sentence of section 5(b)(1)(B) of
the <act-name parsable-cite="HOLA">Home Owners’ Loan Act</act-name> (12 U.S.C.
1464(b)(1)(B)) is amended by striking <quote>savings association may
not—</quote> and all that follows through <quote>(ii) permit any</quote> and
inserting <quote>savings association may not permit any</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H878A7FC1DB4F4950B575633BFA719E8A"><enum>(3)</enum><header display-inline="yes-display-inline"><act-name parsable-cite="FDIA">Federal
Deposit Insurance Act</act-name></header><text display-inline="yes-display-inline">Section 18(g) of the
<act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12
U.S.C. 1828(g)) is amended to read as follows:</text>
<quoted-block act-name="Federal" display-inline="no-display-inline" id="H02B543CF77FC4BF897920E9A83C89681" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3B55330F5DE84D2AA22A7F1597B26847"><enum>(g)</enum><text display-inline="yes-display-inline">[Repealed]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE2046DAA6CFE4C288C5FAD34E152D2FA"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall take effect at the end of the 1-year period beginning on
the date of the enactment of this Act.</text>
</subsection></section>
Passed the House of
Representatives December 11, 2009.
Lorraine C. Miller,
Clerk.