Calendar No. 349AMENDMENT NO.
3739In the nature of a substitute.
IN THE SENATE OF THE UNITED STATES
111th Cong.
2d Sess.
S. 3217
To promote the financial stability of the United States by
improving accountability and transparency in the financial system, to end
too big to fail
, to protect the American taxpayer by ending
bailouts, to protect consumers from abusive financial services practices, and
for other purposes.
April 29, 2010
Ordered to be printed
Proposed by Mr. Reid for
(Mr. Dodd (for himself and
Mrs. Lincoln))
Strike all after the
enacting clause and insert the
following:
1.Short title; table of
contents
(a)This Act may be cited as the Restoring American Financial Stability Act of
2010
.
(b)The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Severability.
Sec. 4. Effective date.
TITLE I—Financial Stability
Sec. 101. Short title.
Sec. 102. Definitions.
Subtitle A—Financial Stability Oversight
Council
Sec. 111. Financial Stability Oversight
Council established.
Sec. 112. Council authority.
Sec. 113. Authority to require supervision and
regulation of certain nonbank financial companies.
Sec. 114. Registration of nonbank financial
companies supervised by the Board of Governors.
Sec. 115. Enhanced supervision and prudential
standards for nonbank financial companies supervised by the Board of Governors
and certain bank holding companies.
Sec. 116. Reports.
Sec. 117. Treatment of certain companies that
cease to be bank holding companies.
Sec. 118. Council funding.
Sec. 119. Resolution of supervisory
jurisdictional disputes among member agencies.
Sec. 120. Additional standards applicable to
activities or practices for financial stability purposes.
Sec. 121. Mitigation of risks to financial
stability.
Subtitle B—Office of Financial
Research
Sec. 151. Definitions.
Sec. 152. Office of Financial Research
established.
Sec. 153. Purpose and duties of the
Office.
Sec. 154. Organizational structure;
responsibilities of primary programmatic units.
Sec. 155. Funding.
Sec. 156. Transition oversight.
Subtitle C—Additional Board of Governors
authority for certain nonbank financial companies and bank holding
companies
Sec. 161. Reports by and examinations of
nonbank financial companies supervised by the Board of Governors.
Sec. 162. Enforcement.
Sec. 163. Acquisitions.
Sec. 164. Prohibition against management
interlocks between certain financial companies.
Sec. 165. Enhanced supervision and prudential
standards for nonbank financial companies supervised by the Board of Governors
and certain bank holding companies.
Sec. 166. Early remediation
requirements.
Sec. 167. Affiliations.
Sec. 168. Regulations.
Sec. 169. Avoiding duplication.
Sec. 170. Safe harbor.
TITLE II—Orderly liquidation
authority
Sec. 201. Definitions.
Sec. 202. Orderly Liquidation Authority
Panel.
Sec. 203. Systemic risk
determination.
Sec. 204. Orderly liquidation.
Sec. 205. Orderly liquidation of covered
brokers and dealers.
Sec. 206. Mandatory terms and conditions for
all orderly liquidation actions.
Sec. 207. Directors not liable for acquiescing
in appointment of receiver.
Sec. 208. Dismissal and exclusion of other
actions.
Sec. 209. Rulemaking; non-conflicting
law.
Sec. 210. Powers and duties of the
corporation.
Sec. 211. Miscellaneous
provisions.
TITLE III—Transfer of powers to the Comptroller
of the Currency, the Corporation, and the Board of Governors
Sec. 300. Short title.
Sec. 301. Purposes.
Sec. 302. Definition.
Subtitle A—Transfer of powers and
duties
Sec. 311. Transfer date.
Sec. 312. Powers and duties
transferred.
Sec. 313. Abolishment.
Sec. 314. Amendments to the Revised
Statutes.
Sec. 315. Federal information
policy.
Sec. 316. Savings provisions.
Sec. 317. References in Federal law to Federal
banking agencies.
Sec. 318. Funding.
Sec. 319. Contracting and leasing
authority.
Subtitle B—Transitional
provisions
Sec. 321. Interim use of funds, personnel, and
property.
Sec. 322. Transfer of employees.
Sec. 323. Property transferred.
Sec. 324. Funds transferred.
Sec. 325. Disposition of affairs.
Sec. 326. Continuation of
services.
Subtitle C—Federal Deposit Insurance
Corporation
Sec. 331. Deposit insurance
reforms.
Sec. 332. Management of the Federal Deposit
Insurance Corporation.
Subtitle D—Termination of Federal Thrift
Charter
Sec. 341. Termination of Federal savings
associations.
Sec. 342. Branching.
TITLE IV—Regulation of advisers to hedge funds
and others
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Elimination of private adviser
exemption; limited exemption for foreign private advisers; limited intrastate
exemption.
Sec. 404. Collection of systemic risk data;
reports; examinations; disclosures.
Sec. 405. Disclosure provision
eliminated.
Sec. 406. Clarification of rulemaking
authority.
Sec. 407. Exemption of venture capital fund
advisers.
Sec. 408. Exemption of and record keeping by
private equity fund advisers.
Sec. 409. Family offices.
Sec. 410. State and Federal responsibilities;
asset threshold for Federal registration of investment advisers.
Sec. 411. Custody of client
assets.
Sec. 412. Adjusting the accredited investor
standard for inflation.
Sec. 413. GAO study and report on accredited
investors.
Sec. 414. GAO study on self-regulatory
organization for private funds.
Sec. 415. Commission study and report on short
selling.
Sec. 416. Transition period.
TITLE V—Insurance
Subtitle A—Office of National
Insurance
Sec. 501. Short title.
Sec. 502. Establishment of Office of National
Insurance.
Subtitle B—State-based Insurance
Reform
Sec. 511. Short title.
Sec. 512. Effective date.
PART I—Nonadmitted insurance
Sec. 521. Reporting, payment, and allocation
of premium taxes.
Sec. 522. Regulation of nonadmitted insurance
by insured’s home State.
Sec. 523. Participation in national producer
database.
Sec. 524. Uniform standards for surplus lines
eligibility.
Sec. 525. Streamlined application for
commercial purchasers.
Sec. 526. GAO study of nonadmitted insurance
market.
Sec. 527. Definitions.
PART II—Reinsurance
Sec. 531. Regulation of credit for reinsurance
and reinsurance agreements.
Sec. 532. Regulation of reinsurer
solvency.
Sec. 533. Definitions.
PART III—Rule of construction
Sec. 541. Rule of construction.
Sec. 542. Severability.
TITLE VI—Improvements to regulation of bank and
savings association holding companies and depository institutions
Sec. 601. Short title.
Sec. 602. Definition.
Sec. 603. Moratorium and study on treatment of
credit card banks, industrial loan companies, and certain other companies under
the Bank Holding Company Act of 1956.
Sec. 604. Reports and examinations of holding
companies; regulation of functionally regulated subsidiaries.
Sec. 605. Assuring consistent oversight of
permissible activities of depository institution subsidiaries of holding
companies.
Sec. 606. Requirements for financial holding
companies to remain well capitalized and well managed.
Sec. 607. Standards for interstate
acquisitions.
Sec. 608. Enhancing existing restrictions on
bank transactions with affiliates.
Sec. 609. Eliminating exceptions for
transactions with financial subsidiaries.
Sec. 610. Lending limits applicable to credit
exposure on derivative transactions, repurchase agreements, reverse repurchase
agreements, and securities lending and borrowing transactions.
Sec. 611. Application of national bank lending
limits to insured State banks.
Sec. 612. Restriction on conversions of
troubled banks.
Sec. 613. De novo branching into
States.
Sec. 614. Lending limits to
insiders.
Sec. 615. Limitations on purchases of assets
from insiders.
Sec. 616. Regulations regarding capital levels
of holding companies.
Sec. 617. Elimination of elective investment
bank holding company framework.
Sec. 618. Securities holding
companies.
Sec. 619. Restrictions on capital market
activity by banks and bank holding companies.
Sec. 620. Concentration limits on large
financial firms.
TITLE VII—Wall Street Transparency and
Accountability
Sec. 701. Short title.
Subtitle A—Regulation of Over-the-Counter
Swaps Markets
PART I—Regulatory authority
Sec. 711. Definitions.
Sec. 712. Review of regulatory
authority.
Sec. 713. Recommendations for changes to
portfolio margining laws.
Sec. 714. Abusive swaps.
Sec. 715. Authority to prohibit participation
in swap activities.
Sec. 716. Prohibition against Federal
Government bailouts of swaps entities.
Sec. 717. New product approval – CFTC-SEC
process.
Sec. 718. Determining status of novel
derivative products.
PART II—Regulation of Swap Markets
Sec. 721. Definitions.
Sec. 722. Jurisdiction.
Sec. 723. Clearing.
Sec. 724. Swaps; segregation and bankruptcy
treatment.
Sec. 725. Derivatives clearing
organizations.
Sec. 726. Rulemaking on conflict of
interest.
Sec. 727. Public reporting of swap transaction
data.
Sec. 728. Swap data repositories.
Sec. 729. Reporting and
recordkeeping.
Sec. 730. Large swap trader
reporting.
Sec. 731. Registration and regulation of swap
dealers and major swap participants.
Sec. 732. Conflicts of interest.
Sec. 733. Swap execution
facilities.
Sec. 734. Derivatives transaction execution
facilities and exempt boards of trade.
Sec. 735. Designated contract
markets.
Sec. 736. Margin.
Sec. 737. Position limits.
Sec. 738. Foreign boards of trade.
Sec. 739. Legal certainty for
swaps.
Sec. 740. Multilateral clearing
organizations.
Sec. 741. Enforcement.
Sec. 742. Retail commodity
transactions.
Sec. 743. Other authority.
Sec. 744. Restitution remedies.
Sec. 745. Enhanced compliance by registered
entities.
Sec. 746. Insider trading.
Sec. 747. Antidisruptive practices
authority.
Sec. 748. Commodity whistleblower incentives
and protection.
Sec. 749. Conforming amendments.
Sec. 750. Study on oversight of carbon
markets.
Sec. 751. Energy and Environmental Markets
Advisory Committee.
Sec. 752. International
harmonization.
Sec. 753. Effective date.
Subtitle B—Regulation of Security-Based Swap
Markets
Sec. 761. Definitions under the Securities
Exchange Act of 1934.
Sec. 762. Repeal of prohibition on regulation
of security-based swap agreements.
Sec. 763. Amendments to the Securities
Exchange Act of 1934.
Sec. 764. Registration and regulation of
security-based swap dealers and major security-based swap
participants.
Sec. 765. Rulemaking on conflict of
interest.
Sec. 766. Reporting and
recordkeeping.
Sec. 767. State gaming and bucket shop
laws.
Sec. 768. Amendments to the Securities Act of
1933; treatment of security-based swaps.
Sec. 769. Definitions under the Investment
Company Act of 1940.
Sec. 770. Definitions under the Investment
Advisors Act of 1940.
Sec. 771. Other authority.
Sec. 772. Jurisdiction.
Sec. 773. Effective date.
TITLE VIII—Payment, clearing, and settlement
supervision
Sec. 801. Short title.
Sec. 802. Findings and purposes.
Sec. 803. Definitions.
Sec. 804. Designation of systemic
importance.
Sec. 805. Standards for systemically important
financial market utilities and payment, clearing, or settlement
activities.
Sec. 806. Operations of designated financial
market utilities.
Sec. 807. Examination of and enforcement
actions against designated financial market utilities.
Sec. 808. Examination of and enforcement
actions against financial institutions subject to standards for designated
activities.
Sec. 809. Requests for information, reports,
or records.
Sec. 810. Rulemaking.
Sec. 811. Other authority.
Sec. 812. Effective date.
TITLE IX—Investor protections and improvements
to the regulation of securities
Subtitle A—Increasing investor
protection
Sec. 911. Investor Advisory Committee
established.
Sec. 912. Clarification of authority of the
Commission to engage in investor testing.
Sec. 913. Study and rulemaking regarding
obligations of brokers, dealers, and investment advisers.
Sec. 914. Office of the Investor
Advocate.
Sec. 915. Streamlining of filing procedures
for self-regulatory organizations.
Sec. 916. Study regarding financial literacy
among investors.
Sec. 917. Study regarding mutual fund
advertising.
Sec. 918. Clarification of Commission
authority to require investor disclosures before purchase of investment
products and services.
Sec. 919. Study on conflicts of
interest.
Sec. 919A. Study on improved investor access
to information on investment advisers and broker-dealers.
Sec. 919B. Study on financial planners and the
use of financial designations.
Subtitle B—Increasing regulatory enforcement
and remedies
Sec. 921. Authority to issue rules related to
mandatory predispute arbitration.
Sec. 922. Whistleblower
protection.
Sec. 923. Conforming amendments for
whistleblower protection.
Sec. 924. Implementation and transition
provisions for whistleblower protection.
Sec. 925. Collateral bars.
Sec. 926. Authority of State regulators over
Regulation D offerings.
Sec. 927. Equal treatment of self-regulatory
organization rules.
Sec. 928. Clarification that Section 205 of
the Investment Advisers Act of 1940 does not apply to State-registered
advisers.
Sec. 929. Unlawful margin lending.
Sec. 929A. Protection for employees of
subsidiaries and affiliates of publicly traded companies.
Sec. 929B. FAIR Fund amendments.
Sec. 929C. Increasing the borrowing limit on
Treasury loans.
Subtitle C—Improvements to the Regulation of
Credit Rating Agencies
Sec. 931. Findings.
Sec. 932. Enhanced regulation, accountability,
and transparency of nationally recognized statistical rating
organizations.
Sec. 933. State of mind in private
actions.
Sec. 934. Referring tips to law enforcement or
regulatory authorities.
Sec. 935. Consideration of information from
sources other than the issuer in rating decisions.
Sec. 936. Qualification standards for credit
rating analysts.
Sec. 937. Timing of regulations.
Sec. 938. Universal ratings
symbols.
Sec. 939. Government Accountability Office
study and Federal agency review of required uses of nationally recognized
statistical rating organization ratings.
Sec. 939A. Securities and Exchange Commission
study on strengthening credit rating agency independence.
Sec. 939B. Government Accountability Office
study on alternative business models.
Sec. 939C. Government Accountability Office
study on the creation of an independent professional analyst
organization.
Subtitle D—Improvements to the Asset-Backed
Securitization Process
Sec. 941. Regulation of credit risk
retention.
Sec. 942. Disclosures and reporting for
asset-backed securities.
Sec. 943. Representations and warranties in
asset-backed offerings.
Sec. 944. Exempted transactions under the
Securities Act of 1933.
Sec. 945. Due diligence analysis and
disclosure in asset-backed securities issues.
Subtitle E—Accountability and Executive
Compensation
Sec. 951. Shareholder vote on executive
compensation disclosures.
Sec. 952. Compensation committee
independence.
Sec. 953. Executive compensation
disclosures.
Sec. 954. Recovery of erroneously awarded
compensation.
Sec. 955. Disclosure regarding employee and
director hedging.
Sec. 956. Excessive compensation by holding
companies of depository institutions.
Sec. 957. Voting by brokers.
Subtitle F—Improvements to the Management of
the Securities and Exchange Commission
Sec. 961. Report and certification of internal
supervisory controls.
Sec. 962. Triennial report on personnel
management.
Sec. 963. Annual financial controls
audit.
Sec. 964. Report on oversight of national
securities associations.
Sec. 965. Compliance examiners.
Sec. 966. Suggestion program for employees of
the Commission.
Subtitle G—Strengthening Corporate
Governance
Sec. 971. Election of directors by majority
vote in uncontested elections.
Sec. 972. Proxy access.
Sec. 973. Disclosures regarding chairman and
CEO structures.
Subtitle H—Municipal Securities
Sec. 975. Regulation of municipal securities
and changes to the board of the MSRB.
Sec. 976. Government Accountability Office
study of increased disclosure to investors.
Sec. 977. Government Accountability Office
study on the municipal securities markets.
Sec. 978. Study of funding for Government
Accounting Standards Board.
Sec. 979. Commission Office of Municipal
Securities.
Subtitle I—Public Company Accounting
Oversight Board, portfolio margining, and other matters
Sec. 981. Authority to share certain
information with foreign authorities.
Sec. 982. Oversight of brokers and
dealers.
Sec. 983. Portfolio margining.
Sec. 984. Loan or borrowing of
securities.
Sec. 985. Technical corrections to Federal
securities laws.
Sec. 986. Conforming amendments relating to
repeal of the Public Utility Holding Company Act of 1935.
Sec. 987. Amendment to definition of material
loss and nonmaterial losses to the Deposit Insurance Fund for purposes of
Inspector General reviews.
Sec. 988. Amendment to definition of material
loss and nonmaterial losses to the National Credit Union Share Insurance Fund
for purposes of Inspector General reviews.
Sec. 989. Government Accountability Office
study on proprietary trading.
Sec. 989A. Senior investor
protections.
Sec. 989B. Changes in appointment of certain
Inspectors General.
Subtitle J—Self-funding of the Securities and
Exchange Commission
Sec. 991. Securities and Exchange Commission
self-funding.
TITLE X—Bureau of Consumer Financial
Protection
Sec. 1001. Short title.
Sec. 1002. Definitions.
Subtitle A—Bureau of Consumer Financial
Protection
Sec. 1011. Establishment of the
Bureau.
Sec. 1012. Executive and administrative
powers.
Sec. 1013. Administration.
Sec. 1014. Consumer Advisory
Board.
Sec. 1015. Coordination.
Sec. 1016. Appearances before and reports to
Congress.
Sec. 1017. Funding; penalties and
fines.
Sec. 1018. Effective date.
Subtitle B—General Powers of the
Bureau
Sec. 1021. Purpose, objectives, and
functions.
Sec. 1022. Rulemaking authority.
Sec. 1023. Review of Bureau
regulations.
Sec. 1024. Supervision of nondepository
covered persons.
Sec. 1025. Supervision of very large banks,
savings associations, and credit unions.
Sec. 1026. Other banks, savings associations,
and credit unions.
Sec. 1027. Limitations on authorities of the
Bureau; preservation of authorities.
Sec. 1028. Authority to restrict mandatory
pre-dispute arbitration.
Sec. 1029. Effective date.
Subtitle C—Specific Bureau
Authorities
Sec. 1031. Prohibiting unfair, deceptive, or
abusive acts or practices.
Sec. 1032. Disclosures.
Sec. 1033. Consumer rights to access
information.
Sec. 1034. Response to consumer complaints and
inquiries.
Sec. 1035. Private education loan
ombudsman.
Sec. 1036. Prohibited acts.
Sec. 1037. Effective date.
Subtitle D—Preservation of State
Law
Sec. 1041. Relation to State law.
Sec. 1042. Preservation of enforcement powers
of States.
Sec. 1043. Preservation of existing
contracts.
Sec. 1044. State law preemption standards for
national banks and subsidiaries clarified.
Sec. 1045. Clarification of law applicable to
nondepository institution subsidiaries.
Sec. 1046. State law preemption standards for
Federal savings associations and subsidiaries clarified.
Sec. 1047. Visitorial standards for national
banks and savings associations.
Sec. 1048. Effective date.
Subtitle E—Enforcement Powers
Sec. 1051. Definitions.
Sec. 1052. Investigations and administrative
discovery.
Sec. 1053. Hearings and adjudication
proceedings.
Sec. 1054. Litigation authority.
Sec. 1055. Relief available.
Sec. 1056. Referrals for criminal
proceedings.
Sec. 1057. Employee protection.
Sec. 1058. Effective date.
Subtitle F—Transfer of Functions and
Personnel; Transitional Provisions
Sec. 1061. Transfer of consumer financial
protection functions.
Sec. 1062. Designated transfer
date.
Sec. 1063. Savings provisions.
Sec. 1064. Transfer of certain
personnel.
Sec. 1065. Incidental transfers.
Sec. 1066. Interim authority of the
Secretary.
Sec. 1067. Transition oversight.
Subtitle G—Regulatory
Improvements
Sec. 1071. Collection of deposit account
data.
Sec. 1072. Small business data
collection.
Sec. 1073. GAO study on the effectiveness and
impact of various appraisal methods.
Sec. 1074. Prohibition on certain prepayment
penalties.
Sec. 1075. Assistance for economically
vulnerable individuals and families.
Sec. 1076. Remittance transfers.
Subtitle H—Conforming Amendments
Sec. 1081. Amendments to the Inspector General
Act.
Sec. 1082. Amendments to the Privacy Act of
1974.
Sec. 1083. Amendments to the Alternative
Mortgage Transaction Parity Act of 1982.
Sec. 1084. Amendments to the Electronic Fund
Transfer Act.
Sec. 1085. Amendments to the Equal Credit
Opportunity Act.
Sec. 1086. Amendments to the Expedited Funds
Availability Act.
Sec. 1087. Amendments to the Fair Credit
Billing Act.
Sec. 1088. Amendments to the Fair Credit
Reporting Act and the Fair and Accurate Credit Transactions Act.
Sec. 1089. Amendments to the Fair Debt
Collection Practices Act.
Sec. 1090. Amendments to the Federal Deposit
Insurance Act.
Sec. 1091. Amendments to the
Gramm-Leach-Bliley Act.
Sec. 1092. Amendments to the Home Mortgage
Disclosure Act.
Sec. 1093. Amendments to the Homeowners
Protection Act of 1998.
Sec. 1094. Amendments to the Home Ownership
and Equity Protection Act of 1994.
Sec. 1095. Amendments to the Omnibus
Appropriations Act, 2009.
Sec. 1096. Amendments to the Real Estate
Settlement Procedures Act.
Sec. 1097. Amendments to the Right to
Financial Privacy Act of 1978.
Sec. 1098. Amendments to the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008.
Sec. 1099. Amendments to the Truth in Lending
Act.
Sec. 1100. Amendments to the Truth in Savings
Act.
Sec. 1101. Amendments to the Telemarketing and
Consumer Fraud and Abuse Prevention Act.
Sec. 1102. Amendments to the Paperwork
Reduction Act.
Sec. 1103. Adjustments for inflation in the
Truth in Lending Act.
Sec. 1104. Effective date.
TITLE XI—Federal Reserve System
provisions
Sec. 1151. Federal Reserve Act amendments on
emergency lending authority.
Sec. 1152. Reviews of special Federal Reserve
credit facilities.
Sec. 1153. Public access to
information.
Sec. 1154. Liquidity event
determination.
Sec. 1155. Emergency financial
stabilization.
Sec. 1156. Additional related
amendments.
Sec. 1157. Federal Reserve Act amendments on
Federal reserve bank governance.
Sec. 1158. Amendments to the Federal Reserve
Act relating to supervision and regulation policy.
TITLE XII—Improving access to mainstream
financial institutions
Sec. 1201. Short title.
Sec. 1202. Purpose.
Sec. 1203. Definitions.
Sec. 1204. Expanded access to mainstream
financial institutions.
Sec. 1205. Low-cost alternatives to payday
loans.
Sec. 1206. Grants to establish loan-loss
reserve funds.
Sec. 1207. Procedural provisions.
Sec. 1208. Authorization of
appropriations.
Sec. 1209. Regulations.
Sec. 1210. Evaluation and reports to
Congress.
2.As used in this Act, the following
definitions shall apply, except as the context otherwise requires or as
otherwise specifically provided in this Act:
(1)The
term affiliate means any company that controls, is controlled by,
or is under common control with another company.
(2)Appropriate
Federal banking agencyOn and after the transfer date, the term
appropriate Federal banking agency has the same meaning as in
section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), as
amended by title III.
(3)The term Board of Governors means the
Board of Governors of the Federal Reserve System.
(4)The
term Bureau means the Bureau of Consumer Financial Protection
established under title X.
(5)The
term Commission means the Securities and Exchange Commission,
except in the context of the Commodity Futures Trading Commission.
(6)The
term Corporation means the Federal Deposit Insurance
Corporation.
(7)The
term Council
means the Financial Stability Oversight Council
established under title I.
(8)The term credit union means a Federal credit
union, State credit union, or State-chartered credit union, as those terms are
defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
(9)The term—
(A)Federal
banking agency means, individually, the Board of Governors, the Office
of the Comptroller of the Currency, and the Corporation; and
(B)Federal
banking agencies means all of the agencies referred to in subparagraph
(A), collectively.
(10)Functionally
regulated subsidiaryThe term functionally regulated
subsidiary has the same meaning as in section 5(c)(5) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1844(c)(5)).
(11)Primary
financial regulatory agencyThe term primary financial
regulatory agency means—
(A)the appropriate
Federal banking agency, with respect to institutions described in section 3(q)
of the Federal Deposit Insurance Act, except to the extent that an institution
is or the activities of an institution are otherwise subject to the
jurisdiction of an agency listed in subparagraph (B), (C), (D), or (E);
(B)the Securities
and Exchange Commission, with respect to—
(i)any
broker or dealer that is registered with the Commission under the Securities
Exchange Act of 1934;
(ii)any
investment company that is registered with the Commission under the Investment
Company Act of 1940;
(iii)any
investment adviser that is registered with the Commission under the Investment
Advisers Act of 1940, with respect to the investment advisory activities of
such company and activities that are incidental to such advisory activities;
and
(iv)any
clearing agency registered with the Commission under the Securities Exchange
Act of 1934;
(C)the Commodity
Futures Trading Commission, with respect to any futures commission merchant,
any commodity trading adviser, and any commodity pool operator registered with
the Commodity Futures Trading Commission under the Commodity Exchange Act, with
respect to the commodities activities of such entity and activities that are
incidental to such commodities activities;
(D)the State
insurance authority of the State in which an insurance company is domiciled,
with respect to the insurance activities and activities that are incidental to
such insurance activities of an insurance company that is subject to
supervision by the State insurance authority under State insurance law;
and
(E)the Federal Housing Finance Agency, with
respect to Federal Home Loan Banks or the Federal Home Loan Bank System, and
with respect to the Federal National Mortgage Association or the Federal Home
Loan Mortgage Corporation.
(12)The term prudential standards means
enhanced supervision and regulatory standards developed by the Board of
Governors under section 115 or 165.
(13)The
term Secretary means the Secretary of the Treasury.
(14)The—
(A)terms
broker, dealer, issuer, nationally
recognized statistical ratings organization, security, and
securities laws have the same meanings as in section 3 of the
Securities Exchange Act of 1934 (15 U.S.C. 78c);
(B)term
investment adviser has the same meaning as in section 202 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b–2); and
(C)term
investment company has the same meaning as in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a–3).
(15)The
term State means any State, commonwealth, territory, or possession
of the United States, the District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam,
or the United States Virgin Islands.
(16)The term transfer date
means the date
established under section 311.
(17)Other
incorporated definitions
(A)Federal Deposit
insurance actThe terms affiliate
,
bank, bank holding company, control
(when used with respect to a depository institution), deposit,
depository institution, Federal depository
institution
, Federal savings association, foreign
bank
, including, insured branch,
insured depository institution, national member bank,
national nonmember bank, savings association,
State bank, State depository institution
,
State member bank, State nonmember bank, State
savings association, and subsidiary have the same meanings
as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(B)The term—
(i)bank
holding company
has the same meaning as in section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841);
(ii)financial
holding company
has the same meaning as in section 2(p) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(p)); and
(iii)savings
and loan holding company
has the same meaning as in section 10 of the
Home Owners' Loan Act (12 U.S.C. 1467a(a)).
3.If any provision of this Act, an amendment
made by this Act, or the application of such provision or amendment to any
person or circumstance is held to be unconstitutional, the remainder of this
Act, the amendments made by this Act, and the application of the provisions of
such to any person or circumstance shall not be affected thereby.
4.Except as otherwise
specifically provided in this Act or the amendments made by this Act, this Act
and such amendments shall take effect 1 day after the date of enactment of this
Act.
<enum>I</enum><header>Financial
Stability</header>
<section id="idBEF49FCAAD1344DFBE903CFD07343F95"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Financial Stability Act of 2010</quote>.</text>
</section><section id="ID43ff47703dd5409e9c53ab6b509f09c4"><enum>102.</enum><header>Definitions</header>
<subsection id="idD55BE637162F4F8FAF7E6372F02237AC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
title, unless the context otherwise requires, the following definitions shall
apply:</text>
<paragraph commented="no" id="id79040FD22BC8449F8AD9AA06E0923F03"><enum>(1)</enum><header>Bank holding
company</header><text>The term <term>bank holding company</term> has the same
meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.
1841). A foreign bank or company that is treated as a bank holding company for
purposes of the Bank Holding Company Act of 1956, pursuant to section 8(a) of
the International Banking Act of 1978 (12 U.S.C. 3106(a)), shall be treated as
a bank holding company for purposes of this title.</text>
</paragraph><paragraph commented="no" id="id7664CDAC310C43EE9105217B499364F1"><enum>(2)</enum><header>Chairperson</header><text>The
term <term>Chairperson</term> means the Chairperson of the Council.</text>
</paragraph><paragraph commented="no" id="id471E1E9D27114AF18580E5606591D05C"><enum>(3)</enum><header>Member
agency</header><text>The term <term>member agency</term> means an agency
represented by a voting member of the Council.</text>
</paragraph><paragraph commented="no" id="id241BB1EF01D24744B15106DD57033036"><enum>(4)</enum><header>Nonbank
financial company definitions</header>
<subparagraph id="ID06df6277da49470b9d50e810b929ec2d"><enum>(A)</enum><header>Foreign nonbank
financial company</header><text>The term <term>foreign nonbank financial
company</term> means a company (other than a company that is, or is treated in
the United States as, a bank holding company or a subsidiary thereof) that
is—</text>
<clause id="ID37aa497050314b499ae86523d317e544"><enum>(i)</enum><text>incorporated or
organized in a country other than the United States; and</text>
</clause><clause id="ID6113a5103bd542ff8e4614ad286c0829"><enum>(ii)</enum><text>substantially
engaged in, including through a branch in the United States, activities in the
United States that are financial in nature (as defined in section 4(k) of the
Bank Holding Company Act of 1956).</text>
</clause></subparagraph><subparagraph id="ID4242697eb5014a6b8e8be53858c72a9d"><enum>(B)</enum><header>U.S. nonbank
financial company</header><text>The term <term>U.S. nonbank financial
company</term> means a company (other than a bank holding company or a
subsidiary thereof, or a Farm Credit System institution chartered and subject
to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et. seq.))
that is—</text>
<clause id="ID72cadd8d14964409839d34ad9b2161c6"><enum>(i)</enum><text>incorporated or
organized under the laws of the United States or any State; and</text>
</clause><clause id="ID2902c82d598e4796b26183352ce57df4"><enum>(ii)</enum><text>substantially
engaged in activities in the United States that are financial in nature (as
defined in section 4(k) of the Bank Holding Company Act of 1956).</text>
</clause></subparagraph><subparagraph commented="no" id="id928291BBD6BA49DDBEF998E38B334D13"><enum>(C)</enum><header>Nonbank
Financial company</header><text>The term <term>nonbank financial company</term>
means a U.S. nonbank financial company and a foreign nonbank financial
company.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE8F20BAECFBC451CB42B9F3C065CC7F9"><enum>(D)</enum><header display-inline="yes-display-inline">Nonbank financial company supervised by the
Board of Governors</header><text display-inline="yes-display-inline">The term
<term>nonbank financial company supervised by the Board of Governors</term>
means a nonbank financial company that the Council has determined under section
113 shall be supervised by the Board of Governors.</text>
</subparagraph></paragraph><paragraph commented="no" id="id9A1DA78427D54E15A8D4D7791D277B57"><enum>(5)</enum><header>Office of
Financial Research</header><text>The term <quote>Office of Financial
Research</quote> means the office established under section 152.</text>
</paragraph><paragraph commented="no" id="id8310C02833FB48088D50BCCF569809C4"><enum>(6)</enum><header>Significant
institutions</header><text>The terms <term>significant nonbank financial
company</term> and <term>significant bank holding company</term> have the
meanings given those terms by rule of the Board of Governors.</text>
</paragraph></subsection><subsection id="ID8c0676c82b94461ea4767a2b95cbfb17"><enum>(b)</enum><header>Definitional
criteria</header><text display-inline="yes-display-inline">The Board of
Governors shall establish, by regulation, the criteria to determine whether a
company is substantially engaged in activities in the United States that are
financial in nature (as defined in section 4(k) of the Bank Holding Company Act
of 1956) for purposes of the definitions of the terms <quote>U.S. nonbank
financial company</quote> and <quote>foreign nonbank financial company</quote>
under subsection (a)(4).</text>
</subsection><subsection id="ID018141ea4fc549a7b914b3d781028811"><enum>(c)</enum><header>Foreign nonbank
financial companies</header><text>For purposes of the authority of the Board of
Governors under this title with respect to foreign nonbank financial companies,
references in this title to <quote>company</quote> or <quote>subsidiary</quote>
include only the United States activities and subsidiaries of such foreign
company.</text>
</subsection></section><subtitle id="idCE07D654DCC1452D91630977E1DD627B"><enum>A</enum><header>Financial
Stability Oversight Council</header>
<section id="IDa9aad67a289b4f1397d158d5e3939c8a"><enum>111.</enum><header>Financial
Stability Oversight Council established</header>
<subsection id="ID346f6df17fc04ada86afafa40ae6b7b6"><enum>(a)</enum><header>Establishment</header><text>Effective
on the date of enactment of this Act, there is established the Financial
Stability Oversight Council.</text>
</subsection><subsection id="ID828c38bfe86941a29ed749178a533d1c"><enum>(b)</enum><header>Membership</header><text>The
Council shall consist of the following members:</text>
<paragraph id="ID315a33abdb8448228e34c8e35677a20a"><enum>(1)</enum><header>Voting
members</header><text>The voting members, who shall each have 1 vote on the
Council shall be—</text>
<subparagraph id="idE4AD6FFC1E924BF6814714EB8C65F8E5"><enum>(A)</enum><text>the Secretary of
the Treasury, who shall serve as Chairperson of the Council;</text>
</subparagraph><subparagraph id="ID12fb1b2715cb4494ba1e9682fe9ba0d8"><enum>(B)</enum><text>the Chairman of
the Board of Governors;</text>
</subparagraph><subparagraph id="ID82179efd42a34318adb3de952e02392a"><enum>(C)</enum><text>the Comptroller
of the Currency;</text>
</subparagraph><subparagraph commented="no" id="ID2d915a62bdac4761a16462defe5e4eb9"><enum>(D)</enum><text>the Director of
the Bureau;</text>
</subparagraph><subparagraph id="IDa47826bacc384fa6bfacae0797bf303c"><enum>(E)</enum><text>the Chairman of
the Commission;</text>
</subparagraph><subparagraph id="IDa4c9d7ffeb604e27b8005ef92f675181"><enum>(F)</enum><text>the Chairperson
of the Corporation;</text>
</subparagraph><subparagraph id="id347E6CEB72EA44AD9FF0B7B4ADD876ED"><enum>(G)</enum><text>the Chairperson
of the Commodity Futures Trading Commission;</text>
</subparagraph><subparagraph id="idEBD4E198E9974509A15C203931AE7D33"><enum>(H)</enum><text>the Director of
the Federal Housing Finance Agency; and</text>
</subparagraph><subparagraph id="ID204dadedc4cd4221a8b0c1b977c14e08"><enum>(I)</enum><text>an independent
member appointed by the President, by and with the advice and consent of the
Senate, having insurance expertise.</text>
</subparagraph></paragraph><paragraph id="ID769cfeb9a3604288a1994b6a398db52c"><enum>(2)</enum><header>Nonvoting
Members</header><text>The Director of the Office of Financial Research—</text>
<subparagraph id="idC7EDAA1F70A344BC9A47339EC40EAE94"><enum>(A)</enum><text>shall serve in an
advisory capacity as a nonvoting member of the Council; and</text>
</subparagraph><subparagraph id="id6261C3F9E3214EB381CFFE25B6872E6D"><enum>(B)</enum><text>may not be
excluded from any of the proceedings, meetings, discussions, or deliberations
of the Council.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id3D978E64D373462B882A26C0558136C0"><enum>(c)</enum><header>Terms;
vacancy</header>
<paragraph commented="no" id="id8EA9212463B048EC8A69CCFDA496B691"><enum>(1)</enum><header>Terms</header><text>The
independent member of the Council shall serve for a term of 6 years.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4F32BD0996C24FE3BD30B0268D41D692"><enum>(2)</enum><header display-inline="yes-display-inline">Vacancy</header><text>Any vacancy on the
Council shall be filled in the manner in which the original appointment was
made.</text>
</paragraph><paragraph id="IDcec7215a810645fb94b5b4effeb87d68"><enum>(3)</enum><header>Acting
officials may serve</header><text>In the event of a vacancy in the office of
the head of a member agency or department, and pending the appointment of a
successor, or during the absence or disability of the head of a member agency
or department, the acting head of the member agency or department shall serve
as a member of the Council in the place of that agency or department
head.</text>
</paragraph></subsection><subsection id="idD03ADF86DBE44B738890229834648DF2"><enum>(d)</enum><header>Technical and
professional advisory committees</header><text display-inline="yes-display-inline">The Council may appoint such special
advisory, technical, or professional committees as may be useful in carrying
out the functions of the Council, including an advisory committee consisting of
State regulators, and the members of such committees may be members of the
Council, or other persons, or both.</text>
</subsection><subsection commented="no" id="idA929A329D0AD485486D8FA0D8F2C8C1F"><enum>(e)</enum><header>Meetings</header>
<paragraph commented="no" id="idCB3D38AD96D648E79C48F330D6F9FE08"><enum>(1)</enum><header>Timing</header><text display-inline="yes-display-inline">The Council shall meet at the call of the
Chairperson or a majority of the members then serving, but not less frequently
than quarterly.</text>
</paragraph><paragraph id="ID53735278198d4a4b98c30d311220cb18"><enum>(2)</enum><header>Rules for
conducting business</header><text>The Council shall adopt such rules as may be
necessary for the conduct of the business of the Council. Such rules shall be
rules of agency organization, procedure, or practice for purposes of section
553 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="IDfffb7ee0aa454181a7d6269ef75480ed"><enum>(f)</enum><header>Voting</header><text>Unless
otherwise specified, the Council shall make all decisions that it is authorized
or required to make by a majority vote of the members then serving.</text>
</subsection><subsection commented="no" id="IDa01be63e0a5348a1a3313b700b9a5a82"><enum>(g)</enum><header>Nonapplicability
of FACA</header><text display-inline="yes-display-inline">The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council, or to any special
advisory, technical, or professional committee appointed by the Council, except
that, if an advisory, technical, or professional committee has one or more
members who are not employees of or affiliated with the United States
Government, the Council shall publish a list of the names of the members of
such committee.</text>
</subsection><subsection commented="no" id="id97D11375F7CC4C57B48EDF802250B2DE"><enum>(h)</enum><header>Assistance from
Federal agencies</header><text display-inline="yes-display-inline">Any
department or agency of the United States may provide to the Council and any
special advisory, technical, or professional committee appointed by the
Council, such services, funds, facilities, staff, and other support services as
the Council may determine advisable.</text>
</subsection><subsection id="ID1d652f1cab4c45999086465bd8d1eb9b"><enum>(i)</enum><header>Compensation of
members</header>
<paragraph id="id6BDE4D4D7EFD4E05979188F91A062D59"><enum>(1)</enum><header>Federal
employee members</header><text>All members of the Council who are officers or
employees of the United States shall serve without compensation in addition to
that received for their services as officers or employees of the United
States.</text>
</paragraph><paragraph id="id7E461A8FA29440FFBC2B1B079041769F"><enum>(2)</enum><header>Compensation
for non-Federal member</header><text display-inline="yes-display-inline">Section 5314 of title 5, United States
Code, is amended by adding at the end the following:</text>
<list level="paragraph">
<list-item><quote>Independent Member of the Financial Stability
Oversight Council (1).</quote>.</list-item></list>
</paragraph></subsection><subsection commented="no" id="ID7F7DD010BD8E4726B1D5367A4FE1E1D4"><enum>(j)</enum><header>Detail of
Government employees</header><text>Any employee of the Federal Government may
be detailed to the Council without reimbursement, and such detail shall be
without interruption or loss of civil service status or privilege. An employee
of the Federal Government detailed to the Council shall report to and be
subject to oversight by the Council during the assignment to the Council, and
shall be compensated by the department or agency from which the employee was
detailed.</text>
</subsection></section><section id="id307581F2025145DBB85DDD4D867C9424"><enum>112.</enum><header>Council
authority</header>
<subsection commented="no" id="id0BFF8F0424AB4015B6779220A64F61E6"><enum>(a)</enum><header>Purposes and
duties of the Council</header>
<paragraph id="id6B5C5AC8CD2B496FB4DFFDBF9D7A4DFA"><enum>(1)</enum><header>In
general</header><text>The purposes of the Council are—</text>
<subparagraph id="id32C1381291E2464FBF84DBC4C1CD6147"><enum>(A)</enum><text>to identify risks
to the financial stability of the United States that could arise from the
material financial distress or failure of large, interconnected bank holding
companies or nonbank financial companies;</text>
</subparagraph><subparagraph id="id7647C922033349C9A665B83EFDB398FA"><enum>(B)</enum><text>to promote market
discipline, by eliminating expectations on the part of shareholders, creditors,
and counterparties of such companies that the Government will shield them from
losses in the event of failure; and</text>
</subparagraph><subparagraph id="idD2BC41E2661F40D3B89C86B511096159"><enum>(C)</enum><text>to respond to
emerging threats to the stability of the United States financial
markets.</text>
</subparagraph></paragraph><paragraph id="IDdf016aa9d91647adbddad6090acb5cbe"><enum>(2)</enum><header>Duties</header><text>The
Council shall, in accordance with this title—</text>
<subparagraph id="ID2cdef22e2abd44a2811579e93ed620e2"><enum>(A)</enum><text>collect
information from member agencies and other Federal and State financial
regulatory agencies and, if necessary to assess risks to the United States
financial system, direct the Office of Financial Research to collect
information from bank holding companies and nonbank financial companies;</text>
</subparagraph><subparagraph commented="no" id="ID3b993afbb7a64d7695d1c238fa3b5456"><enum>(B)</enum><text>provide direction
to, and request data and analyses from, the Office of Financial Research to
support the work of the Council;</text>
</subparagraph><subparagraph id="ID228b2d52dfdd4c5ba7049637126a9bf5"><enum>(C)</enum><text>monitor the
financial services marketplace in order to identify potential threats to the
financial stability of the United States;</text>
</subparagraph><subparagraph id="IDccf9210df2d749bc8c070c720ae4462a"><enum>(D)</enum><text>facilitate
information sharing and coordination among the member agencies and other
Federal and State agencies regarding domestic financial services policy
development, rulemaking, examinations, reporting requirements, and enforcement
actions;</text>
</subparagraph><subparagraph commented="no" id="ID6da4905b54f24682a8e0840922555f66"><enum>(E)</enum><text>recommend to the
member agencies general supervisory priorities and principles reflecting the
outcome of discussions among the member agencies;</text>
</subparagraph><subparagraph id="ID12532fdd72d64545b2409624a5ab0bf1"><enum>(F)</enum><text>identify gaps in
regulation that could pose risks to the financial stability of the United
States;</text>
</subparagraph><subparagraph id="IDf0d068e3c7b8426d906b9ec980aca734"><enum>(G)</enum><text>require
supervision by the Board of Governors for nonbank financial companies that may
pose risks to the financial stability of the United States in the event of
their material financial distress or failure, pursuant to section 113;</text>
</subparagraph><subparagraph id="IDa01cce578dc142cda8c57a926242ba46"><enum>(H)</enum><text>make
recommendations to the Board of Governors concerning the establishment of
heightened prudential standards for risk-based capital, leverage, liquidity,
contingent capital, resolution plans and credit exposure reports, concentration
limits, enhanced public disclosures, and overall risk management for nonbank
financial companies and large, interconnected bank holding companies supervised
by the Board of Governors;</text>
</subparagraph><subparagraph id="ID646bacb44bb045ae98c5e5a478f6e5eb"><enum>(I)</enum><text>identify
systemically important financial market utilities and payment, clearing, and
settlement activities (as that term is defined in title VIII), and require such
utilities and activities to be subject to standards established by the Board of
Governors;</text>
</subparagraph><subparagraph id="ID8fc781d9a65842e89d3d733cb35aee57"><enum>(J)</enum><text>make
recommendations to primary financial regulatory agencies to apply new or
heightened standards and safeguards for financial activities or practices that
could create or increase risks of significant liquidity, credit, or other
problems spreading among bank holding companies, nonbank financial companies,
and United States financial markets;</text>
</subparagraph><subparagraph id="id5C02333FEE6E4A5FBC34897F4EA94ECE"><enum>(K)</enum><text>make
determinations regarding exemptions in title VII, where necessary;</text>
</subparagraph><subparagraph id="ID915b039ebf0f4b2193283b8ed2667d28"><enum>(L)</enum><text>provide a forum
for—</text>
<clause id="idE3B5FDDB67E049E88A8DDE86FE4EB42F"><enum>(i)</enum><text>discussion and
analysis of emerging market developments and financial regulatory issues;
and</text>
</clause><clause id="idCB3FE5E721D3499588C83855755AB45B"><enum>(ii)</enum><text>resolution of
jurisdictional disputes among the members of the Council; and</text>
</clause></subparagraph><subparagraph id="IDcb39d79217cf4a88962cddfc66cfd682"><enum>(M)</enum><text>annually report
to and testify before Congress on—</text>
<clause id="id084AB344F2FC4AAC9E7C9F7E9BC84FFE"><enum>(i)</enum><text>the
activities of the Council;</text>
</clause><clause id="idBC27F8C374884350A2C0B06799B7E6B8"><enum>(ii)</enum><text>significant
financial market developments and potential emerging threats to the financial
stability of the United States;</text>
</clause><clause id="IDaee84593b7f5442cb5f2e97b6da45201"><enum>(iii)</enum><text>all
determinations made under section 113 or title VIII, and the basis for such
determinations; and</text>
</clause><clause id="id056306DED91D47B787F561BBF5381CAF"><enum>(iv)</enum><text>recommendations—</text>
<subclause id="id448D19DCFF0A40BEA833A9ECC75A0D4E"><enum>(I)</enum><text>to
enhance the integrity, efficiency, competitiveness, and stability of United
States financial markets;</text>
</subclause><subclause id="id13BFBAD488A847A09E613044F46205AE"><enum>(II)</enum><text>to
promote market discipline; and</text>
</subclause><subclause id="id6F52B9F5B5A84B35861AE147794AE2D3"><enum>(III)</enum><text>to
maintain investor confidence.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="ID69897924911e4615ab4d813144ac3fd4"><enum>(b)</enum><header>Authority To
obtain information</header>
<paragraph id="IDb41452539c6846b6adb9363cd0fa5b38"><enum>(1)</enum><header>In
general</header><text>The Council may receive, and may request the submission
of, any data or information from the Office of Financial Research and member
agencies, as necessary—</text>
<subparagraph id="IDd1a61147981c4fc5adb13a873a992b33"><enum>(A)</enum><text>to monitor the
financial services marketplace to identify potential risks to the financial
stability of the United States; or</text>
</subparagraph><subparagraph id="ID56b04400f5f1489f8243ebc90fecfa05"><enum>(B)</enum><text>to otherwise
carry out any of the provisions of this title.</text>
</subparagraph></paragraph><paragraph id="IDc23ec729b941459b98cdfe81a3ffd856"><enum>(2)</enum><header>Submissions by
the office and member agencies</header><text>Notwithstanding any other
provision of law, the Office of Financial Research and any member agency are
authorized to submit information to the Council.</text>
</paragraph><paragraph id="ID1cc639a292de4a85ab16f104b2a4e1a2"><enum>(3)</enum><header>Financial data
collection</header>
<subparagraph id="IDce550e802b6a4141ba812906f0fcf0f3"><enum>(A)</enum><header>In
general</header><text>The Council, acting through the Office of Financial
Research, may require the submission of periodic and other reports from any
nonbank financial company or bank holding company for the purpose of assessing
the extent to which a financial activity or financial market in which the
nonbank financial company or bank holding company participates, or the nonbank
financial company or bank holding company itself, poses a threat to the
financial stability of the United States.</text>
</subparagraph><subparagraph id="ID5d43aab0d7bf4744a666d4907f3a4b65"><enum>(B)</enum><header>Mitigation of
report burden</header><text>Before requiring the submission of reports from any
nonbank financial company or bank holding company that is regulated by a member
agency or any primary financial regulatory agency, the Council, acting through
the Office of Financial Research, shall coordinate with such agencies and
shall, whenever possible, rely on information available from the Office of
Financial Research or such agencies.</text>
</subparagraph></paragraph><paragraph id="ID03ba61d5fb7841f4a6dd424cb6fea1ad"><enum>(4)</enum><header>Back-up
examination by the Board of Governors</header><text>If the Council is unable to
determine whether the financial activities of a nonbank financial company pose
a threat to the financial stability of the United States, based on information
or reports obtained under paragraph (3), discussions with management, and
publicly available information, the Council may request the Board of Governors,
and the Board of Governors is authorized, to conduct an examination of the
nonbank financial company for the sole purpose of determining whether the
nonbank financial company should be supervised by the Board of Governors for
purposes of this title.</text>
</paragraph><paragraph id="ID23e3323cb62e452480683c1f66e55c0a"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="ID57c811e70d4443aa9c067c97d7436b8c"><enum>(A)</enum><header>In
general</header><text>The Council, the Office of Financial Research, and the
other member agencies shall maintain the confidentiality of any data,
information, and reports submitted under this subsection and subtitle B.</text>
</subparagraph><subparagraph id="ID7e1208027da04333ae85bfe2dead842c"><enum>(B)</enum><header>Retention of
privilege</header><text>The submission of any nonpublicly available data or
information under this subsection and subtitle B shall not constitute a waiver
of, or otherwise affect, any privilege arising under Federal or State law
(including the rules of any Federal or State court) to which the data or
information is otherwise subject.</text>
</subparagraph><subparagraph id="ID1b139d57a58448eda239bab520748bb7"><enum>(C)</enum><header>Freedom of
information Act</header><text>Section 552 of title 5, United States Code,
including the exceptions thereunder, shall apply to any data or information
submitted under this subsection and subtitle B.</text>
</subparagraph></paragraph></subsection></section><section id="ID5973885501e541b1ae164a49ce5af950"><enum>113.</enum><header>Authority to
require supervision and regulation of certain nonbank financial
companies</header>
<subsection id="ID38f53a20a58345eb9a3acb5f923f2e50"><enum>(a)</enum><header>U.S. Nonbank
Financial companies supervised by the Board of Governors</header>
<paragraph id="id55D637DE849547ED88300461DA3184F3"><enum>(1)</enum><header>Determination</header><text>The
Council, on a nondelegable basis and by a vote of not fewer than
<fraction>2/3</fraction> of the members then serving, including an affirmative
vote by the Chairperson, may determine that a U.S. nonbank financial company
shall be supervised by the Board of Governors and shall be subject to
prudential standards, in accordance with this title, if the Council determines
that material financial distress at the U.S. nonbank financial company would
pose a threat to the financial stability of the United States.</text>
</paragraph><paragraph id="id691CB9B59E414346B6BA1D05F86210DA"><enum>(2)</enum><header>Considerations</header><text>Each
determination under paragraph (1) shall be based on a consideration by the
Council of—</text>
<subparagraph id="idBFFAB01A2B0047308B299AC81C5BF192"><enum>(A)</enum><text>the degree of
leverage of the company;</text>
</subparagraph><subparagraph id="ID13fcfdcd404b4ab28c3813cf8b1905ac"><enum>(B)</enum><text>the amount and
nature of the financial assets of the company;</text>
</subparagraph><subparagraph id="ID247ac5fba39a402a8b26cf3ae60d803a"><enum>(C)</enum><text>the amount and
types of the liabilities of the company, including the degree of reliance on
short-term funding;</text>
</subparagraph><subparagraph id="IDb6094527b79b410dbab3221705721f86"><enum>(D)</enum><text>the extent and
types of the off-balance-sheet exposures of the company;</text>
</subparagraph><subparagraph id="ID5ebc8d130b7f4310bd1152cbf7343c0d"><enum>(E)</enum><text>the extent and
types of the transactions and relationships of the company with other
significant nonbank financial companies and significant bank holding
companies;</text>
</subparagraph><subparagraph id="IDc703573954534f7891d42e8eb11c8633"><enum>(F)</enum><text>the importance of
the company as a source of credit for households, businesses, and State and
local governments and as a source of liquidity for the United States financial
system;</text>
</subparagraph><subparagraph id="IDd074ec6f24d840cfba3d4190a719d815"><enum>(G)</enum><text>the
recommendation, if any, of a member of the Council;</text>
</subparagraph><subparagraph id="IDea0312ffa5e74e1783716b3436e475ca"><enum>(H)</enum><text>the operation of,
or ownership interest in, any clearing, settlement, or payment business of the
company;</text>
</subparagraph><subparagraph commented="no" id="ID431722011b9f42de8dfa49a020921860"><enum>(I)</enum><text>the extent to
which—</text>
<clause commented="no" id="id31F6DFC650F54C699248CA97066ADCFB"><enum>(i)</enum><text>assets are
managed rather than owned by the company; and</text>
</clause><clause commented="no" id="idCD9416DCDD6548A78DEEBBB7E06CC6AA"><enum>(ii)</enum><text>ownership of
assets under management is diffuse; and</text>
</clause></subparagraph><subparagraph id="ID91e0e39932b24ddea1b27b3ee55dc5c9"><enum>(J)</enum><text>any other factors
that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDc88c6477f1dd4d3db741eedc30785f0f"><enum>(b)</enum><header>Foreign Nonbank
Financial companies supervised by the Board of Governors</header>
<paragraph id="idCC4855B2BE024DA0A4E9839ABBE7A8E4"><enum>(1)</enum><header>Determination</header><text>The
Council, on a nondelegable basis and by a vote of not fewer than
<fraction>2/3</fraction> of the members then serving, including an affirmative
vote by the Chairperson, may determine that a foreign nonbank financial company
that has substantial assets or operations in the United States shall be
supervised by the Board of Governors and shall be subject to prudential
standards in accordance with this title, if the Council determines that
material financial distress at the foreign nonbank financial company would pose
a threat to the financial stability of the United States.</text>
</paragraph><paragraph id="idE2A7E23D86484F54894B2CB6698C4CC8"><enum>(2)</enum><header>Considerations</header><text>Each
determination under paragraph (1) shall be based on a consideration by the
Council of—</text>
<subparagraph id="id3FE1D21FABB54A67997464F41CDF0796"><enum>(A)</enum><text>the degree of
leverage of the company;</text>
</subparagraph><subparagraph id="ID38d1710431b74e208c51a417e6b0d145"><enum>(B)</enum><text>the amount and
nature of the United States financial assets of the company;</text>
</subparagraph><subparagraph id="IDbece4fc95e40414c94bc6856ca470d31"><enum>(C)</enum><text>the amount and
types of the liabilities of the company used to fund activities and operations
in the United States, including the degree of reliance on short-term
funding;</text>
</subparagraph><subparagraph id="IDcd315a72cf4a43fdb4558fa8f6e75bea"><enum>(D)</enum><text>the extent of the
United States-related off-balance-sheet exposure of the company;</text>
</subparagraph><subparagraph id="IDf2726471f47149f69fe4f4182a76668e"><enum>(E)</enum><text>the extent and
type of the transactions and relationships of the company with other
significant nonbank financial companies and bank holding companies;</text>
</subparagraph><subparagraph id="IDafd7c14b0b8e4056987a8d191cf910e1"><enum>(F)</enum><text>the importance of
the company as a source of credit for United States households, businesses, and
State and local governments, and as a source of liquidity for the United States
financial system;</text>
</subparagraph><subparagraph id="IDcdf5f937f03c4575aeee335cdacd364d"><enum>(G)</enum><text>the
recommendation, if any, of a member of the Council;</text>
</subparagraph><subparagraph commented="no" id="id8F7E1FAB304442B8A44887885DC447F0"><enum>(H)</enum><text>the extent to
which—</text>
<clause commented="no" id="id5C55EA8BC974404B91C69F922B03A885"><enum>(i)</enum><text>assets are
managed rather than owned by the company; and</text>
</clause><clause commented="no" id="idD7F87B005E3C4CAB8C02BD146B471030"><enum>(ii)</enum><text>ownership of
assets under management is diffuse; and</text>
</clause></subparagraph><subparagraph id="ID18933fff3c634d959a101fed65e7347f"><enum>(I)</enum><text>any other factors
that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDc34c3675f9614fa08d8325ad61ebdbc0"><enum>(c)</enum><header>Reevaluation
and rescission</header><text>The Council shall—</text>
<paragraph id="id9BF58B53311B44249E44BDA1BC9581C0"><enum>(1)</enum><text>not
less frequently than annually, reevaluate each determination made under
subsections (a) and (b) with respect to each nonbank financial company
supervised by the Board of Governors; and</text>
</paragraph><paragraph id="id13A438FE1990479CB281A5A9024536C2"><enum>(2)</enum><text>rescind any such
determination, if the Council, by a vote of not fewer than
<fraction>2/3</fraction> of the members then serving, including an affirmative
vote by the Chairperson, determines that the nonbank financial company no
longer meets the standards under subsection (a) or (b), as applicable.</text>
</paragraph></subsection><subsection id="IDf2de6fdb6d614290b8ca9baf39b0549a"><enum>(d)</enum><header>Notice and
opportunity for hearing and final determination</header>
<paragraph id="idE94EE6B7367A430C9AE5EF955DD38D2F"><enum>(1)</enum><header>In
general</header><text>The Council shall provide to a nonbank financial company
written notice of a proposed determination of the Council, including an
explanation of the basis of the proposed determination of the Council, that
such nonbank financial company shall be supervised by the Board of Governors
and shall be subject to prudential standards in accordance with this
title.</text>
</paragraph><paragraph id="idF1768A5EE2EB4E83BD5CBC80C248F506"><enum>(2)</enum><header>Hearing</header><text>Not
later than 30 days after the date of receipt of any notice of a proposed
determination under paragraph (1), the nonbank financial company may request,
in writing, an opportunity for a written or oral hearing before the Council to
contest the proposed determination. Upon receipt of a timely request, the
Council shall fix a time (not later than 30 days after the date of receipt of
the request) and place at which such company may appear, personally or through
counsel, to submit written materials (or, at the sole discretion of the
Council, oral testimony and oral argument).</text>
</paragraph><paragraph id="id58EF5617559C4205B82132A729622CD3"><enum>(3)</enum><header>Final
determination</header><text>Not later than 60 days after the date of a hearing
under paragraph (2), the Council shall notify the nonbank financial company of
the final determination of the Council, which shall contain a statement of the
basis for the decision of the Council.</text>
</paragraph><paragraph id="id31075B0FB8494C4F80E425FD1ED1493A"><enum>(4)</enum><header>No
hearing requested</header><text>If a nonbank financial company does not make a
timely request for a hearing, the Council shall notify the nonbank financial
company, in writing, of the final determination of the Council under subsection
(a) or (b), as applicable, not later than 10 days after the date by which the
company may request a hearing under paragraph (2).</text>
</paragraph></subsection><subsection id="IDd44b7ff9e5294c5884c21edb56740ddc"><enum>(e)</enum><header>Emergency
exception</header>
<paragraph id="idBBE084B56CF84C3981CF84FD918C0D28"><enum>(1)</enum><header>In
general</header><text>The Council may waive or modify the requirements of
subsection (d) with respect to a nonbank financial company, if the Council
determines, by a vote of not fewer than <fraction>2/3</fraction> of the members
then serving, including an affirmative vote by the Chairperson, that such
waiver or modification is necessary or appropriate to prevent or mitigate
threats posed by the nonbank financial company to the financial stability of
the United States.</text>
</paragraph><paragraph id="idCAEE9FD327614CD68B080C9894FC72D4"><enum>(2)</enum><header>Notice</header><text>The
Council shall provide notice of a waiver or modification under this paragraph
to the nonbank financial company concerned as soon as practicable, but not
later than 24 hours after the waiver or modification is granted.</text>
</paragraph><paragraph id="idFF51E10E251345238C1C8EAF4444E291"><enum>(3)</enum><header>Opportunity for
hearing</header><text>The Council shall allow a nonbank financial company to
request, in writing, an opportunity for a written or oral hearing before the
Council to contest a waiver or modification under this paragraph, not later
than 10 days after the date of receipt of notice of the waiver or modification
by the company. Upon receipt of a timely request, the Council shall fix a time
(not later than 15 days after the date of receipt of the request) and place at
which the nonbank financial company may appear, personally or through counsel,
to submit written materials (or, at the sole discretion of the Council, oral
testimony and oral argument).</text>
</paragraph><paragraph id="idEB11A4960B8F4AEF8398DCE7271F741B"><enum>(4)</enum><header>Notice of final
determination</header><text>Not later than 30 days after the date of any
hearing under paragraph (3), the Council shall notify the subject nonbank
financial company of the final determination of the Council under this
paragraph, which shall contain a statement of the basis for the decision of the
Council.</text>
</paragraph></subsection><subsection id="ID642e905a6cda4db49c3b5e5200197bd2"><enum>(f)</enum><header>Consultation</header><text>The
Council shall consult with the primary financial regulatory agency, if any, for
each nonbank financial company or subsidiary of a nonbank financial company
that is being considered for supervision by the Board of Governors under this
section before the Council makes any final determination with respect to such
nonbank financial company under subsection (a), (b), or (c).</text>
</subsection><subsection id="ID6bb27f99ea0d4f0b98457e020479014a"><enum>(g)</enum><header>Judicial
review</header><text>If the Council makes a final determination under this
section with respect to a nonbank financial company, such nonbank financial
company may, not later than 30 days after the date of receipt of the notice of
final determination under subsection (d)(3) or (e)(4), bring an action in the
United States district court for the judicial district in which the home office
of such nonbank financial company is located, or in the United States District
Court for the District of Columbia, for an order requiring that the final
determination be rescinded, and the court shall, upon review, dismiss such
action or direct the final determination to be rescinded. Review of such an
action shall be limited to whether the final determination made under this
section was arbitrary and capricious.</text>
</subsection></section><section id="IDf1b8127fe3384541be9c325b437313dc"><enum>114.</enum><header>Registration
of nonbank financial companies supervised by the Board of
Governors</header><text display-inline="no-display-inline">Not later than 180
days after the date of a final Council determination under section 113 that a
nonbank financial company is to be supervised by the Board of Governors, such
company shall register with the Board of Governors, on forms prescribed by the
Board of Governors, which shall include such information as the Board of
Governors, in consultation with the Council, may deem necessary or appropriate
to carry out this title.</text>
</section><section commented="no" id="id207F550C70AF4C2CBD522285CFB11C99"><enum>115.</enum><header>Enhanced
supervision and prudential standards for nonbank financial companies supervised
by the Board of Governors and certain bank holding companies</header>
<subsection id="IDe3eee1fec29442d0a60e38e14977e506"><enum>(a)</enum><header>In
general</header>
<paragraph id="id3BA67A4D4E3E41A8B8DD4C0C82D964C8"><enum>(1)</enum><header>Purpose</header><text>In
order to prevent or mitigate risks to the financial stability of the United
States that could arise from the material financial distress or failure of
large, interconnected financial institutions, the Council may make
recommendations to the Board of Governors concerning the establishment and
refinement of prudential standards and reporting and disclosure requirements
applicable to nonbank financial companies supervised by the Board of Governors
and large, interconnected bank holding companies, that—</text>
<subparagraph id="idEE2D0FFA08164168875AE0F6B9D84131"><enum>(A)</enum><text>are more
stringent than those applicable to other nonbank financial companies and bank
holding companies that do not present similar risks to the financial stability
of the United States; and</text>
</subparagraph><subparagraph id="id423D20329CCA45EDB1A54F8773E2B9D7"><enum>(B)</enum><text>increase in
stringency, based on the considerations identified in subsection (b)(3).</text>
</subparagraph></paragraph><paragraph id="id080F7CBDBC0948C1BFABE73BFAA1306D"><enum>(2)</enum><header>Limitation on
bank holding companies</header><text>Any standards recommended under
subsections (b) through (f) shall not apply to any bank holding company with
total consolidated assets of less than $50,000,000,000. The Council may
recommend an asset threshold greater than $50,000,000,000 for the applicability
of any particular standard under those subsections.</text>
</paragraph></subsection><subsection id="ID06b66d43a0e444b885dbeaf79b93bcbc"><enum>(b)</enum><header>Development of
prudential standards</header>
<paragraph id="idA037E4126AC14373AE157DA5FA8D1DED"><enum>(1)</enum><header>In
general</header><text>The recommendations of the Council under subsection (a)
may include—</text>
<subparagraph id="ID3caf67f5a9d144778b85d9ee8f95e65d"><enum>(A)</enum><text>risk-based
capital requirements;</text>
</subparagraph><subparagraph id="IDdcd5d1a6a6f348ab8fa421811f98a024"><enum>(B)</enum><text>leverage
limits;</text>
</subparagraph><subparagraph id="ID385258733a03453baeb9043d399da5d7"><enum>(C)</enum><text>liquidity
requirements;</text>
</subparagraph><subparagraph id="idD4935C3FF39D4C6DB9845A4E3DD7FFC3"><enum>(D)</enum><text>resolution plan
and credit exposure report requirements;</text>
</subparagraph><subparagraph id="id1AD6E158E5E1417390425C9B45132B36"><enum>(E)</enum><text>concentration
limits;</text>
</subparagraph><subparagraph id="id1A0550D283594B34A8C806607098C7E5"><enum>(F)</enum><text>a
contingent capital requirement;</text>
</subparagraph><subparagraph id="id5BE4E2D1D493411FADC9940EF66DEDD6"><enum>(G)</enum><text>enhanced public
disclosures; and</text>
</subparagraph><subparagraph id="ID55aa503176284911b685bca49e64d11a"><enum>(H)</enum><text>overall risk
management requirements.</text>
</subparagraph></paragraph><paragraph id="ID911aaac3021f4dbfb6bfbdbdadd1f2da"><enum>(2)</enum><header>Prudential
standards for foreign financial companies</header><text>In making
recommendations concerning the standards set forth in paragraph (1) that would
apply to foreign nonbank financial companies supervised by the Board of
Governors or foreign-based bank holding companies, the Council shall give due
regard to the principle of national treatment and competitive equity.</text>
</paragraph><paragraph id="idEE079847291548C8B80A5427B6C3E139"><enum>(3)</enum><header>Considerations</header><text>In
making recommendations concerning prudential standards under paragraph (1), the
Council shall—</text>
<subparagraph id="id19CC9D150312427897163FCB58D1B274"><enum>(A)</enum><text>take into account
differences among nonbank financial companies supervised by the Board of
Governors and bank holding companies described in subsection (a), based
on—</text>
<clause id="IDbc2e537e57164da89faf3d6c43c0d961"><enum>(i)</enum><text>the
factors described in subsections (a) and (b) of section 113;</text>
</clause><clause id="ID6fd73f207bcf434c8a1fb844b2691cde"><enum>(ii)</enum><text>whether the
company owns an insured depository institution;</text>
</clause><clause id="ID4b7d468f93f94b1398ad502a39ca641e"><enum>(iii)</enum><text>nonfinancial
activities and affiliations of the company; and</text>
</clause><clause id="ID7b77ae53953443ac90fa3fb6b060d4b9"><enum>(iv)</enum><text>any
other factors that the Council determines appropriate; and</text>
</clause></subparagraph><subparagraph id="IDc72c1131b48e488faec040729ce958f4"><enum>(B)</enum><text>to the extent
possible, ensure that small changes in the factors listed in subsections (a)
and (b) of section 113 would not result in sharp, discontinuous changes in the
prudential standards established under paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="IDd984965b4ad749ecb1eb29682ec07351"><enum>(c)</enum><header>Contingent
capital</header>
<paragraph id="ID7c57797f1b134c989cd5c1a8b0660259"><enum>(1)</enum><header>Study
required</header><text>The Council shall conduct a study of the feasibility,
benefits, costs, and structure of a contingent capital requirement for nonbank
financial companies supervised by the Board of Governors and bank holding
companies described in subsection (a), which study shall include—</text>
<subparagraph id="IDbdb9f8697298445dba17ac97eb46ff33"><enum>(A)</enum><text>an evaluation of
the degree to which such requirement would enhance the safety and soundness of
companies subject to the requirement, promote the financial stability of the
United States, and reduce risks to United States taxpayers;</text>
</subparagraph><subparagraph id="ID0c78370f922b4485875fdbf827f3e1ca"><enum>(B)</enum><text>an evaluation of
the characteristics and amounts of convertible debt that should be
required;</text>
</subparagraph><subparagraph id="ID552f70432d3b479fbc15203a537ae168"><enum>(C)</enum><text>an analysis of
potential prudential standards that should be used to determine whether the
contingent capital of a company would be converted to equity in times of
financial stress;</text>
</subparagraph><subparagraph id="ID29e602b6160a478bb583c92852a9a9fe"><enum>(D)</enum><text>an evaluation of
the costs to companies, the effects on the structure and operation of credit
and other financial markets, and other economic effects of requiring contingent
capital;</text>
</subparagraph><subparagraph id="ID98e53c0ac1a54b72bc940f7de4755d82"><enum>(E)</enum><text>an evaluation of
the effects of such requirement on the international competitiveness of
companies subject to the requirement and the prospects for international
coordination in establishing such requirement; and</text>
</subparagraph><subparagraph id="IDe2d18820192d48cc9c237d6e42b901f8"><enum>(F)</enum><text>recommendations
for implementing regulations.</text>
</subparagraph></paragraph><paragraph id="id3E7C9A1253294A90A2970CF65E85DBD5"><enum>(2)</enum><header>Report</header><text>The
Council shall submit a report to Congress regarding the study required by
paragraph (1) not later than 2 years after the date of enactment of this
Act.</text>
</paragraph><paragraph id="id01B25AE0F97C4D1FB1382D8B98046ECB"><enum>(3)</enum><header>Recommendations</header>
<subparagraph id="id5F095CF1C50B4370AB7029BF3A77623A"><enum>(A)</enum><header>In
general</header><text>Subsequent to submitting a report to Congress under
paragraph (2), the Council may make recommendations to the Board of Governors
to require any nonbank financial company supervised by the Board of Governors
and any bank holding company described in subsection (a) to maintain a minimum
amount of long-term hybrid debt that is convertible to equity in times of
financial stress.</text>
</subparagraph><subparagraph id="IDf53dd55ce7fd4d21bcb083eaa4594cbe"><enum>(B)</enum><header>Factors to
consider</header><text>In making recommendations under this subsection, the
Council shall consider—</text>
<clause id="IDcd0850a469654881ab45b6b20ba25b93"><enum>(i)</enum><text>an
appropriate transition period for implementation of a conversion under this
subsection;</text>
</clause><clause id="ID9c0308d657d34f0eaffa2dc6ef131399"><enum>(ii)</enum><text>the
factors described in subsection (b)(3);</text>
</clause><clause id="ID663c51561073442aadead464bf4c5fb2"><enum>(iii)</enum><text>capital
requirements applicable to a nonbank financial company supervised by the Board
of Governors or a bank holding company described in subsection (a), and
subsidiaries thereof;</text>
</clause><clause id="ID7019155126884e1aabd0fc4e3c9b645c"><enum>(iv)</enum><text>results of the
study required by paragraph (1); and</text>
</clause><clause id="id226EA0CAFAEF4EA6B109FC1164E59418"><enum>(v)</enum><text>any
other factor that the Council deems appropriate.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDf564c1659abb4d28b5989a4db13fd1fc"><enum>(d)</enum><header>Resolution plan
and credit exposure reports</header>
<paragraph id="ID9eb7cfe46773431ab044eb008b1f9735"><enum>(1)</enum><header>Resolution
plan</header><text>The Council may make recommendations to the Board of
Governors concerning the requirement that each nonbank financial company
supervised by the Board of Governors and each bank holding company described in
subsection (a) report periodically to the Council, the Board of Governors, and
the Corporation, the plan of such company for rapid and orderly resolution in
the event of material financial distress or failure.</text>
</paragraph><paragraph id="ID84f8d8e1d9444e20be5a681e024d5a54"><enum>(2)</enum><header>Credit exposure
report</header><text>The Council may make recommendations to the Board of
Governors concerning the advisability of requiring each nonbank financial
company supervised by the Board of Governors and bank holding company described
in subsection (a) to report periodically to the Council, the Board of
Governors, and the Corporation on—</text>
<subparagraph id="ID5c54d313c5e648f682558eca911ab4d5"><enum>(A)</enum><text>the nature and
extent to which the company has credit exposure to other significant nonbank
financial companies and significant bank holding companies; and</text>
</subparagraph><subparagraph id="IDc98763f05f8d4ceeafce32ed27db3016"><enum>(B)</enum><text>the nature and
extent to which other such significant nonbank financial companies and
significant bank holding companies have credit exposure to that company.</text>
</subparagraph></paragraph></subsection><subsection id="ID612f74aa53b243689849c000910bc59a"><enum>(e)</enum><header>Concentration
limits</header><text>In order to limit the risks that the failure of any
individual company could pose to nonbank financial companies supervised by the
Board of Governors or bank holding companies described in subsection (a), the
Council may make recommendations to the Board of Governors to prescribe
standards to limit such risks, as set forth in section 165.</text>
</subsection><subsection id="ID03b318c0cfb44f03a252750ab0e86e2a"><enum>(f)</enum><header>Enhanced public
disclosures</header><text>The Council may make recommendations to the Board of
Governors to require periodic public disclosures by bank holding companies
described in subsection (a) and by nonbank financial companies supervised by
the Board of Governors, in order to support market evaluation of the risk
profile, capital adequacy, and risk management capabilities thereof.</text>
</subsection></section><section id="ID06390ee5b8f84685affd0a4c562b93ae"><enum>116.</enum><header>Reports</header>
<subsection id="ID9a693de29f0643268d5477a39736ca28"><enum>(a)</enum><header>In
general</header><text>Subject to subsection (b), the Council, acting through
the Office of Financial Research, may require a bank holding company with total
consolidated assets of $50,000,000,000 or greater or a nonbank financial
company supervised by the Board of Governors, and any subsidiary thereof, to
submit certified reports to keep the Council informed as to—</text>
<paragraph id="id0984DE4A4CEF4BC1B775B2F7FC4AD18A"><enum>(1)</enum><text>the
financial condition of the company;</text>
</paragraph><paragraph id="id6537E987486F4361B1A8FE4A36A2AD72"><enum>(2)</enum><text>systems for
monitoring and controlling financial, operating, and other risks;</text>
</paragraph><paragraph id="idC43ECA806D6E408FA2B00454CDC20967"><enum>(3)</enum><text>transactions with
any subsidiary that is a depository institution; and</text>
</paragraph><paragraph id="idBADA0815545545C0AF53169E06B67A94"><enum>(4)</enum><text>the
extent to which the activities and operations of the company and any subsidiary
thereof, could, under adverse circumstances, have the potential to disrupt
financial markets or affect the overall financial stability of the United
States.</text>
</paragraph></subsection><subsection id="ID3ab181fcf55848fcb9e2bd59660bbdf3"><enum>(b)</enum><header>Use of existing
reports</header>
<paragraph id="ID34ece810673c4026881d386931823eab"><enum>(1)</enum><header>In
general</header><text>For purposes of compliance with subsection (a), the
Council, acting through the Office of Financial Research, shall, to the fullest
extent possible, use—</text>
<subparagraph id="IDdc2ccccb68924e8391b7f0de9a9bb4be"><enum>(A)</enum><text>reports that a
bank holding company, nonbank financial company supervised by the Board of
Governors, or any functionally regulated subsidiary of such company has been
required to provide to other Federal or State regulatory agencies;</text>
</subparagraph><subparagraph id="IDe53311b1355f4ed89726de9d6e9fd392"><enum>(B)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subparagraph><subparagraph id="IDacf5306808b64c34bc5967a5a9f3466c"><enum>(C)</enum><text>externally
audited financial statements.</text>
</subparagraph></paragraph><paragraph id="ID4fcb08ccb53846b69f5b52a669cbe2ed"><enum>(2)</enum><header>Availability</header><text>Each
bank holding company described in subsection (a) and nonbank financial company
supervised by the Board of Governors, and any subsidiary thereof, shall provide
to the Council, at the request of the Council, copies of all reports referred
to in paragraph (1).</text>
</paragraph><paragraph id="ID5d4b7eec85594b39bcae011caa8c47f3"><enum>(3)</enum><header>Confidentiality</header><text>The
Council shall maintain the confidentiality of the reports obtained under
subsection (a) and paragraph (1)(A) of this subsection.</text>
</paragraph></subsection></section><section id="id466F79DF66EC44CCBB27CD2C563FC822"><enum>117.</enum><header>Treatment of
certain companies that cease to be bank holding companies</header>
<subsection id="ID0fd108cbd6c04562aacd718e3683e83a"><enum>(a)</enum><header>Applicability</header><text>This
section shall apply to any entity or a successor entity that—</text>
<paragraph id="ID307331d857c34155a37474c799a29468"><enum>(1)</enum><text>was
a bank holding company having total consolidated assets equal to or greater
than $50,000,000,000 as of January 1, 2010; and</text>
</paragraph><paragraph id="IDf5e72a77031543f092c6954e29424bea"><enum>(2)</enum><text>received
financial assistance under or participated in the Capital Purchase Program
established under the Troubled Asset Relief Program authorized by the Emergency
Economic Stabilization Act of 2008.</text>
</paragraph></subsection><subsection id="ID42f8974b5b4747dba4fc812b674bc5f4"><enum>(b)</enum><header>Treatment</header><text>If
an entity described in subsection (a) ceases to be a bank holding company at
any time after January 1, 2010, then such entity shall be treated as a nonbank
financial company supervised by the Board of Governors, as if the Council had
made a determination under section 113 with respect to that entity.</text>
</subsection><subsection id="ID8cf1d4feb1f9411d8e35676a38c4c0f2"><enum>(c)</enum><header>Appeal</header>
<paragraph id="ID3288c9a097b24c23ba1cd77749b97da9"><enum>(1)</enum><header>Request for
hearing</header><text>An entity may request, in writing, an opportunity for a
written or oral hearing before the Council to appeal its treatment as a nonbank
financial company supervised by the Board of Governors in accordance with this
section. Upon receipt of the request, the Council shall fix a time (not later
than 30 days after the date of receipt of the request) and place at which such
entity may appear, personally or through counsel, to submit written materials
(or, at the sole discretion of the Council, oral testimony and oral
argument).</text>
</paragraph><paragraph id="IDc28c8359cd8b4923ab20b14b827e5fdb"><enum>(2)</enum><header>Decision</header>
<subparagraph id="ID80121f282f5e4081bea71b279956d6f6"><enum>(A)</enum><header>Proposed
decision</header><text>Not later than 60 days after the date of a hearing under
paragraph (1), the Council shall submit a report to, and may testify before,
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the proposed
decision of the Council regarding an appeal under paragraph (1), which report
shall include a statement of the basis for the proposed decision of the
Council.</text>
</subparagraph><subparagraph id="ID7b42eed85d18448193fd1e2c14229736"><enum>(B)</enum><header>Notice of final
decision</header><text>The Council shall notify the subject entity of the final
decision of the Council regarding an appeal under paragraph (1), which notice
shall contain a statement of the basis for the final decision of the Council,
not later than 60 days after the later of—</text>
<clause id="id36939C4989EF49BC9FA0B1352D4D042D"><enum>(i)</enum><text>the
date of the submission of the report under subparagraph (A); or</text>
</clause><clause id="id70F177499A2B4A788154BFE7FA6CBA68"><enum>(ii)</enum><text>if the
Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee
on Financial Services of the House of Representatives holds one or more
hearings regarding such report, the date of the last such hearing.</text>
</clause></subparagraph><subparagraph id="idEE9F76738D1D4AD5A4FA3E8246D07100"><enum>(C)</enum><header>Considerations</header><text>In
making a decision regarding an appeal under paragraph (1), the Council shall
consider whether the company meets the standards under section 113(a) or
113(b), as applicable, and the definition of the term <quote>nonbank financial
company</quote> under section 102. The decision of the Council shall be final,
subject to the review under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="ID272419a7f72d48cebc43015300e9693a"><enum>(3)</enum><header>Review</header><text>If
the Council denies an appeal under this subsection, the Council shall, not less
frequently than annually, review and reevaluate the decision.</text>
</paragraph></subsection></section><section id="id67965F8CF6C042DBAE3E939358BB3946"><enum>118.</enum><header>Council
funding</header><text display-inline="no-display-inline">Any expenses of the
Council shall be treated as expenses of, and paid by, the Office of Financial
Research.</text>
</section><section commented="no" id="id07983F535B7245818B51F6B7A40CAA6C"><enum>119.</enum><header>Resolution of
supervisory jurisdictional disputes among member agencies</header>
<subsection commented="no" id="ID22adc7e4560f4cf8adaa96c8f110b800"><enum>(a)</enum><header>Request for
dispute resolution</header><text>The Council shall resolve a dispute among 2 or
more member agencies, if—</text>
<paragraph commented="no" id="ID231f5aa2b61143e4b69d579dc35613e1"><enum>(1)</enum><text>a member agency
has a dispute with another member agency about the respective jurisdiction over
a particular bank holding company, nonbank financial company, or financial
activity or product (excluding matters for which another dispute mechanism
specifically has been provided under Federal law);</text>
</paragraph><paragraph commented="no" id="IDf19acead8679476eba7db119bfe99b5a"><enum>(2)</enum><text>the Council
determines that the disputing agencies cannot, after a demonstrated good faith
effort, resolve the dispute without the intervention of the Council; and</text>
</paragraph><paragraph commented="no" id="ID3c6638fae4c74f6f9059a24c697205f7"><enum>(3)</enum><text>any of the member
agencies involved in the dispute—</text>
<subparagraph commented="no" id="ID294bdd380d5f47e9a28dc37146dfa45d"><enum>(A)</enum><text>provides all
other disputants prior notice of the intent to request dispute resolution by
the Council; and</text>
</subparagraph><subparagraph commented="no" id="IDc1da06b68f5744f8b0694bbd77c0899a"><enum>(B)</enum><text>requests in
writing, not earlier than 14 days after providing the notice described in
subparagraph (A), that the Council resolve the dispute.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID74f010da4bfd4a409f3912ce11a7d163"><enum>(b)</enum><header>Council
decision</header><text>The Council shall resolve each dispute described in
subsection (a)—</text>
<paragraph commented="no" id="ID79fb7b48a85c4b5dad42eb97343d5fa8"><enum>(1)</enum><text>within a
reasonable time after receiving the dispute resolution request;</text>
</paragraph><paragraph commented="no" id="ID8c87b8ba108b46acbb1e932ca4a42e84"><enum>(2)</enum><text>after
consideration of relevant information provided by each agency party to the
dispute; and</text>
</paragraph><paragraph commented="no" id="IDba51653e2ebd4b298eb4f1ec6fc9a23a"><enum>(3)</enum><text>by agreeing with
1 of the disputants regarding the entirety of the matter, or by determining a
compromise position.</text>
</paragraph></subsection><subsection commented="no" id="IDc78aed743683425fbea1b83d39412a99"><enum>(c)</enum><header>Form and
binding effect</header><text>A Council decision under this section
shall—</text>
<paragraph commented="no" id="id940BA586D4B747378E6B8BEE3D9068B8"><enum>(1)</enum><text>be in
writing;</text>
</paragraph><paragraph commented="no" id="idCA06E06076384E7EA4E0DFB1BAB539B9"><enum>(2)</enum><text>include an
explanation of the reasons therefor; and</text>
</paragraph><paragraph commented="no" id="id705EC2E9AEAB42C6BE46D176DBAB6C3E"><enum>(3)</enum><text>be binding on all
Federal agencies that are parties to the dispute.</text>
</paragraph></subsection></section><section id="ID44bcd761af3c497286ba5567b3943603"><enum>120.</enum><header>Additional
standards applicable to activities or practices for financial stability
purposes</header>
<subsection id="IDc230c0d2204444d9804765a9f437a0af"><enum>(a)</enum><header>In
general</header><text>The Council may issue recommendations to the primary
financial regulatory agencies to apply new or heightened standards and
safeguards, including standards enumerated in section 115, for a financial
activity or practice conducted by bank holding companies or nonbank financial
companies under their respective jurisdictions, if the Council determines that
the conduct of such activity or practice could create or increase the risk of
significant liquidity, credit, or other problems spreading among bank holding
companies and nonbank financial companies or the financial markets of the
United States.</text>
</subsection><subsection id="IDffa9011526d147a9a3c62dc30bdd8847"><enum>(b)</enum><header>Procedure for
recommendations to regulators</header>
<paragraph id="ID5584f98fc163461286f035dd1afc5b18"><enum>(1)</enum><header>Notice and
opportunity for comment</header><text>The Council shall consult with the
primary financial regulatory agencies and provide notice to the public and
opportunity for comment for any proposed recommendation that the primary
financial regulatory agencies apply new or heightened standards and safeguards
for a financial activity or practice.</text>
</paragraph><paragraph id="ID31cd870af43a4b04a1ffe75ed130c9c4"><enum>(2)</enum><header>Criteria</header><text>The
new or heightened standards and safeguards for a financial activity or practice
recommended under paragraph (1)—</text>
<subparagraph id="ID2b6de13526c64cde8f7403a48be686d2"><enum>(A)</enum><text>shall take costs
to long-term economic growth into account; and</text>
</subparagraph><subparagraph id="ID5bcdf37435aa489099412aaf6e417df0"><enum>(B)</enum><text>may include
prescribing the conduct of the activity or practice in specific ways (such as
by limiting its scope, or applying particular capital or risk management
requirements to the conduct of the activity) or prohibiting the activity or
practice.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="IDdc9c1acb2b834557bb09877dfda5dfe2"><enum>(c)</enum><header>Implementation
of recommended standards</header>
<paragraph commented="no" id="ID94d2672d5e75446fb62d9be95f9c71c7"><enum>(1)</enum><header>Role of primary
financial regulatory agency</header>
<subparagraph commented="no" id="idD70E7543E3704617972E05FC34B502F7"><enum>(A)</enum><header>In
general</header><text>Each primary financial regulatory agency may impose,
require reports regarding, examine for compliance with, and enforce standards
in accordance with this section with respect to those entities for which it is
the primary financial regulatory agency.</text>
</subparagraph><subparagraph commented="no" id="id3996A7C050D04C7083A5977E139AE8C4"><enum>(B)</enum><header>Rule of
construction</header><text>The authority under this paragraph is in addition
to, and does not limit, any other authority of a primary financial regulatory
agency. Compliance by an entity with actions taken by a primary financial
regulatory agency under this section shall be enforceable in accordance with
the statutes governing the respective jurisdiction of the primary financial
regulatory agency over the entity, as if the agency action were taken under
those statutes.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID7a4f11769e2c45a2b2447bbdab20a488"><enum>(2)</enum><header>Imposition of
standards</header><text>The primary financial regulatory agency shall impose
the standards recommended by the Council in accordance with subsection (a), or
similar standards that the Council deems acceptable, or shall explain in
writing to the Council, not later than 90 days after the date on which the
Council issues the recommendation, why the agency has determined not to follow
the recommendation of the Council.</text>
</paragraph></subsection><subsection id="ID38e6716e3d7a4b81bccf7b65ab3e6100"><enum>(d)</enum><header>Report to
Congress</header><text>The Council shall report to Congress on—</text>
<paragraph id="ID6a7cf6ad3cd24753b4ba8bbf58b206bf"><enum>(1)</enum><text>any
recommendations issued by the Council under this section;</text>
</paragraph><paragraph id="ID9e0e0794903e455c95452fa7982a1574"><enum>(2)</enum><text>the
implementation of, or failure to implement such recommendation on the part of a
primary financial regulatory agency; and</text>
</paragraph><paragraph id="IDed06f5bc00494ffcb04fe92a8825625f"><enum>(3)</enum><text>in
any case in which no primary financial regulatory agency exists for the nonbank
financial company conducting financial activities or practices referred to in
subsection (a), recommendations for legislation that would prevent such
activities or practices from threatening the stability of the financial system
of the United States.</text>
</paragraph></subsection><subsection id="ID5cc94f98a9da4e66a5ebb95af1d4d1fa"><enum>(e)</enum><header>Effect of
rescission of identification</header>
<paragraph commented="no" id="IDbbda780343b64673bbd0b3ad0db5434d"><enum>(1)</enum><header>Notice</header><text>The
Council may recommend to the relevant primary financial regulatory agency that
a financial activity or practice no longer requires any standards or safeguards
implemented under this section.</text>
</paragraph><paragraph commented="no" id="ID3de5f2fcf6944f2da645fd81b39e00f8"><enum>(2)</enum><header>Determination
of primary financial regulatory agency to continue</header>
<subparagraph commented="no" id="id9FD449D4944F41C98DFF016E959147D0"><enum>(A)</enum><header>In
general</header><text>Upon receipt of a recommendation under paragraph (1), a
primary financial regulatory agency that has imposed standards under this
section shall determine whether standards that it has imposed under this
section should remain in effect.</text>
</subparagraph><subparagraph commented="no" id="idB6AFBC1AFFCD452780F16EB9A6D32BCF"><enum>(B)</enum><header>Appeal
process</header><text>Each primary financial regulatory agency that has imposed
standards under this section shall promulgate regulations to establish a
procedure under which entities under its jurisdiction may appeal a
determination by such agency under this paragraph that standards imposed under
this section should remain in effect.</text>
</subparagraph></paragraph></subsection></section><section id="ID1025f649af8d40e1a5020e43c5f3cc34"><enum>121.</enum><header>Mitigation of
risks to financial stability</header>
<subsection id="IDf5be5ea7e309441fb14f31e3235a2e74"><enum>(a)</enum><header>Mitigatory
actions</header><text>If the Board of Governors determines that a bank holding
company with total consolidated assets of $50,000,000,000 or more, or a nonbank
financial company supervised by the Board of Governors, poses a grave threat to
the financial stability of the United States, the Board of Governors, upon an
affirmative vote of not fewer than <fraction>2/3</fraction> of the Council
members then serving, shall require the subject company—</text>
<paragraph id="id67CF9D91C9FA40E6B6EA89F142AF0BB0"><enum>(1)</enum><text>to
terminate one or more activities;</text>
</paragraph><paragraph id="idF4422E628ED446EB8A74C27DDBFBF7A0"><enum>(2)</enum><text>to
impose conditions on the manner in which the company conducts one or more
activities; or</text>
</paragraph><paragraph id="id11E922523CCF424AA4A6D230E4D534C5"><enum>(3)</enum><text>if
the Board of Governors determines that such action is inadequate to mitigate a
threat to the financial stability of the United States in its recommendation,
to sell or otherwise transfer assets or off-balance-sheet items to unaffiliated
entities.</text>
</paragraph></subsection><subsection id="ID1a30dbaf86a74eb386f06e2266258352"><enum>(b)</enum><header>Notice and
hearing</header>
<paragraph id="IDe54630ca4f264cea8ecfd463688ff5e4"><enum>(1)</enum><header>In
general</header><text>The Board of Governors, in consultation with the Council,
shall provide to a company described in subsection (a) written notice that such
company is being considered for mitigatory action pursuant to this section,
including an explanation of the basis for, and description of, the proposed
mitigatory action.</text>
</paragraph><paragraph id="IDa64ae5547cc440b79adfe07af6f4cbd7"><enum>(2)</enum><header>Hearing</header><text>Not
later than 30 days after the date of receipt of notice under paragraph (1), the
company may request, in writing, an opportunity for a written or oral hearing
before the Board of Governors to contest the proposed mitigatory action. Upon
receipt of a timely request, the Board of Governors shall fix a time (not later
than 30 days after the date of receipt of the request) and place at which such
company may appear, personally or through counsel, to submit written materials
(or, at the discretion of the Board of Governors, in consultation with the
Council, oral testimony and oral argument).</text>
</paragraph><paragraph id="IDd4d9a8a0a92f4fc5bc864de9a54471ae"><enum>(3)</enum><header>Decision</header><text>Not
later than 60 days after the date of a hearing under paragraph (2), or not
later than 60 days after the provision of a notice under paragraph (1) if no
hearing was held, the Board of Governors shall notify the company of the final
decision of the Board of Governors, including the results of the vote of the
Council, as described in subsection (a).</text>
</paragraph></subsection><subsection id="ID6b4963dfff5044cea46d2ff066c1f678"><enum>(c)</enum><header>Factors for
consideration</header><text>The Board of Governors and the Council shall take
into consideration the factors set forth in subsection (a) or (b) of section
113, as applicable, in a determination described in subsection (a) and in a
decision described in subsection (b).</text>
</subsection><subsection id="IDc0a906ecd0b844e78901bfbb1da684f2"><enum>(d)</enum><header>Application to
foreign financial companies</header><text>The Board of Governors may prescribe
regulations regarding the application of this section to foreign nonbank
financial companies supervised by the Board of Governors and foreign-based bank
holding companies, giving due regard to the principle of national treatment and
competitive equity.</text>
</subsection></section></subtitle><subtitle id="id140A67DFF0934A2F8DB268F4B6F4F041"><enum>B</enum><header>Office of
Financial Research</header>
<section id="id90E76FF1B6344EC186EBA45A87AD7E0D"><enum>151.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle—</text>
<paragraph id="idBF758C24924A447EB963A16B292EA91D"><enum>(1)</enum><text>the
terms <term>Office</term> and <term>Director</term> mean the Office of
Financial Research established under this subtitle and the Director thereof,
respectively;</text>
</paragraph><paragraph id="id2A50F418A5BA4B15AC3B1C6A8B681918"><enum>(2)</enum><text>the
term <term>financial company</term> has the same meaning as in title II, and
includes an insured depository institution and an insurance company;</text>
</paragraph><paragraph id="idF9EAB41C70C04AF1B4ECA56A738A78D9"><enum>(3)</enum><text>the
term <term>Data Center</term> means the data center established under section
154;</text>
</paragraph><paragraph id="id465A2214312D49E290D9386A06E9AC57"><enum>(4)</enum><text>the
term <term>Research and Analysis Center</term> means the research and analysis
center established under section 154;</text>
</paragraph><paragraph id="ID7cf2c308236e4a9ba78bfcc19f3df6db"><enum>(5)</enum><text>the
term <term>financial transaction data</term> means the structure and legal
description of a financial contract, with sufficient detail to describe the
rights and obligations between counterparties and make possible an independent
valuation;</text>
</paragraph><paragraph id="ID13499d05b6ea48cb9ca53468a9d13571"><enum>(6)</enum><text>the
term <term>position data</term>—</text>
<subparagraph id="idFBB20D7888B44FAFB9FB6EC1EAD7654C"><enum>(A)</enum><text>means data on
financial assets or liabilities held on the balance sheet of a financial
company, where positions are created or changed by the execution of a financial
transaction; and</text>
</subparagraph><subparagraph id="id29F361420C38429C8685CBBC42033163"><enum>(B)</enum><text>includes
information that identifies counterparties, the valuation by the financial
company of the position, and information that makes possible an independent
valuation of the position;</text>
</subparagraph></paragraph><paragraph id="IDde65725646ba41bebe11d4d32fc1aba4"><enum>(7)</enum><text>the
term <term>financial contract</term> means a legally binding agreement between
2 or more counterparties, describing rights and obligations relating to the
future delivery of items of intrinsic or extrinsic value among the
counterparties; and</text>
</paragraph><paragraph id="IDdf8bcab9f04b4c43bf694b5714c79f92"><enum>(8)</enum><text>the
term <term>financial instrument</term> means a financial contract in which the
terms and conditions are publicly available, and the roles of one or more of
the counterparties are assignable without the consent of any of the other
counterparties (including common stock of a publicly traded company, government
bonds, or exchange traded futures and options contracts).</text>
</paragraph></section><section id="IDc6d7767736e342d7a2a94d1cdbdfb5dd"><enum>152.</enum><header>Office of
Financial Research established</header>
<subsection id="IDad19a9fb1da14ea0840ab221b7e0abf6"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Department of the Treasury the Office of Financial
Research.</text>
</subsection><subsection id="IDaaaf9cdd3c124c0abebfa3d398c273cc"><enum>(b)</enum><header>Director</header>
<paragraph id="ID62aedbfacc924e9f827fa2999edd161d"><enum>(1)</enum><header>In
general</header><text>The Office shall be headed by a Director, who shall be
appointed by the President, by and with the advice and consent of the
Senate.</text>
</paragraph><paragraph id="ID52e056b63932493da58a35efb5e45058"><enum>(2)</enum><header>Term of
service</header><text>The Director shall serve for a term of 6 years, except
that, in the event that a successor is not nominated and confirmed by the end
of the term of service of a Director, the Director may continue to serve until
such time as the next Director is appointed and confirmed.</text>
</paragraph><paragraph id="ID623ad09c86de4d5296e463c112113bf2"><enum>(3)</enum><header>Executive
level</header><text>The Director shall be compensated at level III of the
Executive Schedule.</text>
</paragraph><paragraph id="IDa279d8acff0746e29fd1d9691e6d4b61"><enum>(4)</enum><header>Prohibition on
dual service</header><text>The individual serving in the position of Director
may not, during such service, also serve as the head of any financial
regulatory agency.</text>
</paragraph><paragraph id="IDde7644ff958848519326478dbe3b7861"><enum>(5)</enum><header>Responsibilities,
duties, and authority</header><text>The Director shall have sole discretion in
the manner in which the Director fulfills the responsibilities and duties and
exercises the authorities described in this subtitle.</text>
</paragraph></subsection><subsection id="ID7d023c87e2b441bdaf5b26f370cf36bf"><enum>(c)</enum><header>Budget</header><text>The
Director, in consultation with the Chairperson, shall establish the annual
budget of the Office.</text>
</subsection><subsection id="ID6cc67004a6ab4059a5de34b68bbcf70e"><enum>(d)</enum><header>Office
Personnel</header>
<paragraph id="ID4202a348bc93430db41c0609927a2993"><enum>(1)</enum><header>In
general</header><text>The Director, in consultation with the Chairperson, may
fix the number of, and appoint and direct, all employees of the Office.</text>
</paragraph><paragraph id="IDc0d12653e6b04abb94cc10f3ecfea501"><enum>(2)</enum><header>Compensation</header><text>The
Director, in consultation with the Chairperson, shall fix, adjust, and
administer the pay for all employees of the Office, without regard to chapter
51 or subchapter III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates.</text>
</paragraph><paragraph commented="no" id="IDcb1404b80ca14627ae7ca27586cecbbb"><enum>(3)</enum><header>Comparability</header><text>Section
1206(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1833b(a)) is amended—</text>
<subparagraph commented="no" id="IDb053159bc9794181b670712170b05a52"><enum>(A)</enum><text>by striking
<quote>Finance Board,</quote> and inserting <quote>Finance Board, the Office of
Financial Research, and the Bureau of Consumer Financial Protection</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="ID9b07e2902b764459af2ab1fb9983bb94"><enum>(B)</enum><text>by striking
<quote>and the Office of Thrift Supervision,</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID3acf0fa00e4445948646e049a4b54be4"><enum>(e)</enum><header>Assistance from
Federal agencies</header><text>Any department or agency of the United States
may provide to the Office and any special advisory, technical, or professional
committees appointed by the Office, such services, funds, facilities, staff,
and other support services as the Office may determine advisable. Any Federal
Government employee may be detailed to the Office without reimbursement, and
such detail shall be without interruption or loss of civil service status or
privilege.</text>
</subsection><subsection id="ID494ba5a84aed40e2bf0a7cc15bfa4313"><enum>(f)</enum><header>Procurement of
temporary and intermittent services</header><text>The Director may procure
temporary and intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the daily equivalent
of the annual rate of basic pay prescribed for level V of the Executive
Schedule under section 5316 of such title.</text>
</subsection><subsection id="ID1aff7e9ec0eb494db3841a2cf3a2ebe2"><enum>(g)</enum><header>Contracting and
leasing authority</header><text>Notwithstanding the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or any other
provision of law, the Director may—</text>
<paragraph id="ID9eb7bffc135f4e1998445c2f4cb2c9eb"><enum>(1)</enum><text>enter into and
perform contracts, execute instruments, and acquire, in any lawful manner, such
goods and services, or personal or real property (or property interest), as the
Director deems necessary to carry out the duties and responsibilities of the
Office; and</text>
</paragraph><paragraph id="IDc744608f1f2243bf88a44d3c92e3b691"><enum>(2)</enum><text>hold, maintain,
sell, lease, or otherwise dispose of the property (or property interest)
acquired under paragraph (1).</text>
</paragraph></subsection><subsection id="ID5391aaf69c3a467ea518eac5f7465cb4"><enum>(h)</enum><header>Non-compete</header><text>The
Director and any staff of the Office who has had access to the transaction or
position data maintained by the Data Center or other business confidential
information about financial entities required to report to the Office, may not,
for a period of 1 year after last having access to such transaction or position
data or business confidential information, be employed by or provide advice or
consulting services to a financial company, regardless of whether that entity
is required to report to the Office. For staff whose access to business
confidential information was limited, the Director may provide, on a
case-by-case basis, for a shorter period of post-employment prohibition,
provided that the shorter period does not compromise business confidential
information.</text>
</subsection><subsection commented="no" id="ID187b300b685a409cab869ed5b6614dd3"><enum>(i)</enum><header>Technical and
professional advisory committees</header><text>The Office, in consultation with
the Chairperson, may appoint such special advisory, technical, or professional
committees as may be useful in carrying out the functions of the Office, and
the members of such committees may be staff of the Office, or other persons, or
both.</text>
</subsection><subsection id="IDade0e9aee3be41b688dec3f0003ea7f8"><enum>(j)</enum><header>Fellowship
Program</header><text>The Office, in consultation with the Chairperson, may
establish and maintain an academic and professional fellowship program, under
which qualified academics and professionals shall be invited to spend not
longer than 2 years at the Office, to perform research and to provide advanced
training for Office personnel.</text>
</subsection><subsection id="ID645107706f6e4f2ebba6023c3be25e46"><enum>(k)</enum><header>Executive
schedule compensation</header><text>Section 5314 of title 5, United States
Code, is amended by adding at the end the following new item:</text>
<paragraph id="ID0d7398e05b884a14830f62623de9a7ce"><enum></enum><text><quote>Director of
the Office of Financial Research.</quote>.</text>
</paragraph></subsection></section><section id="ID4821919fbb104b07b8d033d55c29ab8f"><enum>153.</enum><header>Purpose and
duties of the Office</header>
<subsection id="IDf9c030a4724d4251a93aad4a63cc57f6"><enum>(a)</enum><header>Purpose and
duties</header><text>The purpose of the Office is to support the Council in
fulfilling the purposes and duties of the Council, as set forth in subtitle A,
and to support member agencies, by—</text>
<paragraph id="ID6ebc013df34c45c3b45215f65ccaf8cc"><enum>(1)</enum><text>collecting data
on behalf of the Council, and providing such data to the Council and member
agencies;</text>
</paragraph><paragraph id="ID13ff446bfeb44982bd9d1c17425abbc7"><enum>(2)</enum><text>standardizing the
types and formats of data reported and collected;</text>
</paragraph><paragraph id="IDc6983bda19014e65a554cb040486c262"><enum>(3)</enum><text>performing
applied research and essential long-term research;</text>
</paragraph><paragraph id="ID4f66848d5bbc4a38935f955017eb5f08"><enum>(4)</enum><text>developing tools
for risk measurement and monitoring;</text>
</paragraph><paragraph id="IDa5b503f3b1654a969d596caedcaeb97a"><enum>(5)</enum><text>performing other
related services;</text>
</paragraph><paragraph id="IDfcacece584ba4d76871c417fe97430e7"><enum>(6)</enum><text>making the
results of the activities of the Office available to financial regulatory
agencies; and</text>
</paragraph><paragraph id="IDc74fca3d12c24e68b376678f2e660ea2"><enum>(7)</enum><text>assisting such
member agencies in determining the types and formats of data authorized by this
Act to be collected by such member agencies.</text>
</paragraph></subsection><subsection id="ID79ba032e2dfe4a779259460d433aaa7b"><enum>(b)</enum><header>Administrative
authority</header><text>The Office may—</text>
<paragraph id="ID292202eee1454708aed5f0f735856e40"><enum>(1)</enum><text>share data and
information, including software developed by the Office, with the Council and
member agencies, which shared data, information, and software—</text>
<subparagraph id="idCFE3A5B8CAAE428DAD9F4856CB7A4D2F"><enum>(A)</enum><text>shall be
maintained with at least the same level of security as is used by the Office;
and</text>
</subparagraph><subparagraph id="id7197793A7AB54DE0AAB8B0210F0CEF9A"><enum>(B)</enum><text>may not be shared
with any individual or entity without the permission of the Council;</text>
</subparagraph></paragraph><paragraph id="ID388c1149a2fa4f78a9c85c72a76ad48c"><enum>(2)</enum><text>sponsor and
conduct research projects; and</text>
</paragraph><paragraph id="ID0b0299b47ebd42089e6aa0245b2a8871"><enum>(3)</enum><text>assist, on a
reimbursable basis, with financial analyses undertaken at the request of other
Federal agencies that are not member agencies.</text>
</paragraph></subsection><subsection id="id8342B024B5EF4B7593D48D1119C70EA5"><enum>(c)</enum><header>Rulemaking
authority</header>
<paragraph id="id34A5CE5CD04042F3A4EDFE8FEE9C861D"><enum>(1)</enum><header>Scope</header><text>The
Office, in consultation with the Chairperson, shall issue rules, regulations,
and orders only to the extent necessary to carry out the purposes and duties
described in paragraphs (1), (2), and (7) of subsection (a).</text>
</paragraph><paragraph id="idD0095C07926C45D2AAC759C7728C3F3E"><enum>(2)</enum><header>Standardization</header><text>Member
agencies, in consultation with the Office, shall implement regulations
promulgated by the Office under paragraph (1) to standardize the types and
formats of data reported and collected on behalf of the Council, as described
in subsection (a)(2). If a member agency fails to implement such regulations
prior to the expiration of the 3-year period following the date of publication
of final regulations, the Office, in consultation with the Chairperson, may
implement such regulations with respect to the financial entities under the
jurisdiction of the member agency.</text>
</paragraph></subsection><subsection id="id070D1759C4654C548E21B45648562D04"><enum>(d)</enum><header>Testimony</header>
<paragraph id="id20D8EED3FB66427FBC150116320D5BF1"><enum>(1)</enum><header>In
general</header><text>The Director of the Office shall report to and testify
before the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives annually on
the activities of the Office, including the work of the Data Center and the
Research and Analysis Center, and the assessment of the Office of significant
financial market developments and potential emerging threats to the financial
stability of the United States.</text>
</paragraph><paragraph id="IDb91276196be740eea0c30808a4a1bfa5"><enum>(2)</enum><header>No
prior review</header><text>No officer or agency of the United States shall have
any authority to require the Director to submit the testimony required under
paragraph (1) or other Congressional testimony to any officer or agency of the
United States for approval, comment, or review prior to the submission of such
testimony. Any such testimony to Congress shall include a statement that the
views expressed therein are those of the Director and do not necessarily
represent the views of the President.</text>
</paragraph></subsection><subsection commented="no" id="IDcf6eaed981a64a65bd5e9e18874caabe"><enum>(e)</enum><header>Additional
reports</header><text>The Director may provide additional reports to Congress
concerning the financial stability of the United States. The Director shall
notify the Council of any such additional reports provided to Congress.</text>
</subsection><subsection commented="no" id="ID58f93d3a742045cb9b978fecb469045f"><enum>(f)</enum><header>Subpoena</header>
<paragraph commented="no" id="id917FD4B2B5D148DAB73A8CEA4C8EABBA"><enum>(1)</enum><header>In
general</header><text>The Director may require, by subpoena, the production of
the data requested under subsection (a)(1) and section 154(b)(1), but only upon
a written finding by the Director that—</text>
<subparagraph commented="no" id="idDFAC59133DBC47ABBA316B704BBAA202"><enum>(A)</enum><text>such data is
required to carry out the functions described under this subtitle; and</text>
</subparagraph><subparagraph commented="no" id="idC00209C8F1134CE1AE7AFA8BCD7F0627"><enum>(B)</enum><text>the Office has
coordinated with such agency, as required under section
154(b)(1)(B)(ii).</text>
</subparagraph></paragraph><paragraph commented="no" id="id703663A5871849B697FE0E2AFB18D07E"><enum>(2)</enum><header>Format</header><text>Subpoenas
under paragraph (1) shall bear the signature of the Director, and shall be
served by any person or class of persons designated by the Director for that
purpose.</text>
</paragraph><paragraph commented="no" id="id32B0F0C9BB364B88975217BD8FF1D2E9"><enum>(3)</enum><header>Enforcement</header><text>In
the case of contumacy or failure to obey a subpoena, the subpoena shall be
enforceable by order of any appropriate district court of the United States.
Any failure to obey the order of the court may be punished by the court as a
contempt of court.</text>
</paragraph></subsection></section><section id="ID91fdbac6a65948d2bf78965f4725bdb9"><enum>154.</enum><header>Organizational
structure; responsibilities of primary programmatic units</header>
<subsection id="id451E93132C1D45C198A07A0F7D86F354"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There are established
within the Office, to carry out the programmatic responsibilities of the
Office—</text>
<paragraph id="ID71470bf7e3164df5aa1f8335b34f24e3"><enum>(1)</enum><text>the
Data Center; and</text>
</paragraph><paragraph id="ID5ddfc59a6ab74441a2c309e10a33d235"><enum>(2)</enum><text>the
Research and Analysis Center.</text>
</paragraph></subsection><subsection id="IDda5c88a8782d4c8ab92a346e15a17d4d"><enum>(b)</enum><header>Data
Center</header>
<paragraph id="IDa9a3dd7db0054346b47af9969a6a4fa0"><enum>(1)</enum><header>General
duties</header>
<subparagraph id="idA9FFCF9BEA1B44D7A0FC8B74B6AF9959"><enum>(A)</enum><header>Data
collection</header><text>The Data Center, on behalf of the Council, shall
collect, validate, and maintain all data necessary to carry out the duties of
the Data Center, as described in this subtitle. The data assembled shall be
obtained from member agencies, commercial data providers, publicly available
data sources, and financial entities under subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="ID5517673da3294848adf98aad6a45e8ee"><enum>(B)</enum><header>Authority</header>
<clause commented="no" id="ID9910cc3e5e974698a8b81d6ce7a3a1c9"><enum>(i)</enum><header>In
general</header><text>The Office may, as determined by the Council or by the
Director in consultation with the Council, require the submission of periodic
and other reports from any financial company for the purpose of assessing the
extent to which a financial activity or financial market in which the financial
company participates, or the financial company itself, poses a threat to the
financial stability of the United States.</text>
</clause><clause commented="no" id="IDebb32d78a53a4ca6938488843d7d9f1d"><enum>(ii)</enum><header>Mitigation of
report burden</header><text>Before requiring the submission of a report from
any financial company that is regulated by a member agency or any primary
financial regulatory agency, the Office shall coordinate with such agencies and
shall, whenever possible, rely on information available from such
agencies.</text>
</clause></subparagraph><subparagraph id="IDc2c03d33840f43d3869e723719bbf1d9"><enum>(C)</enum><header>Rulemaking</header><text>The
Office shall promulgate regulations pursuant to subsections (a)(1), (a)(2),
(a)(7), and (c)(1) of section 153 regarding the type and scope of the data to
be collected by the Data Center under this paragraph.</text>
</subparagraph></paragraph><paragraph id="IDf9c696df8fdd4ca0a668c74c0d51c8a1"><enum>(2)</enum><header>Responsibilities</header>
<subparagraph id="idE934017F2F9143649ECD48F4658FEC49"><enum>(A)</enum><header>Publication</header><text>The
Data Center shall prepare and publish, in a manner that is easily accessible to
the public—</text>
<clause id="ID9df54289cdce4d8c938a267cdaa4bad5"><enum>(i)</enum><text>a
financial company reference database;</text>
</clause><clause id="ID70c83e1ec38647f7ad22910e74dabba4"><enum>(ii)</enum><text>a
financial instrument reference database; and</text>
</clause><clause id="IDb8a1d48709c44d009fd64f217803b676"><enum>(iii)</enum><text>formats and
standards for Office data, including standards for reporting financial
transaction and position data to the Office.</text>
</clause></subparagraph><subparagraph id="idA18CEA57B9D34C0CAFCBA65A78522E65"><enum>(B)</enum><header>Confidentiality</header><text>The
Data Center shall not publish any confidential data under subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="ID779c389109bf454fab015a602e194e3f"><enum>(3)</enum><header>Information
security</header><text>The Director shall ensure that data collected and
maintained by the Data Center are kept secure and protected against
unauthorized disclosure.</text>
</paragraph><paragraph id="ID0fdc3c0fa9fe4bbdb6a812c6a6a5421b"><enum>(4)</enum><header>Catalog of
financial entities and instruments</header><text>The Data Center shall maintain
a catalog of the financial entities and instruments reported to the
Office.</text>
</paragraph><paragraph id="ID43f7885c6e4d46899b8bbca2660ef5a7"><enum>(5)</enum><header>Availability to
the council and member agencies</header><text>The Data Center shall make data
collected and maintained by the Data Center available to the Council and member
agencies, as necessary to support their regulatory responsibilities.</text>
</paragraph><paragraph id="IDb1b23f3ce4d1415d973b4ae2eefc7bc8"><enum>(6)</enum><header>Other
authority</header><text>The Office shall, after consultation with the member
agencies, provide certain data to financial industry participants and to the
general public to increase market transparency and facilitate research on the
financial system, to the extent that intellectual property rights are not
violated, business confidential information is properly protected, and the
sharing of such information poses no significant threats to the financial
system of the United States.</text>
</paragraph></subsection><subsection id="ID67683f85dd034fb6900a30cfb4d59964"><enum>(c)</enum><header>Research and
analysis center</header>
<paragraph commented="no" display-inline="no-display-inline" id="id0091C0276F0C4651B464624010CF3D20"><enum>(1)</enum><header display-inline="yes-display-inline">General duties</header><text>The Research
and Analysis Center, on behalf of the Council, shall develop and maintain
independent analytical capabilities and computing resources—</text>
<subparagraph id="ID2aaa5553de914b4cab4acd41755adad0"><enum>(A)</enum><text>to develop and
maintain metrics and reporting systems for risks to the financial stability of
the United States;</text>
</subparagraph><subparagraph id="ID16d9f2bbc9d24fae9b1093b7fbfcd30a"><enum>(B)</enum><text>to monitor,
investigate, and report on changes in system-wide risk levels and patterns to
the Council and Congress;</text>
</subparagraph><subparagraph id="ID426f9cf0313f4a5ea75db56b53c22632"><enum>(C)</enum><text>to conduct,
coordinate, and sponsor research to support and improve regulation of financial
entities and markets;</text>
</subparagraph><subparagraph id="ID9a92fcf0f2b04c179ce2a3d285d0ed45"><enum>(D)</enum><text>to evaluate and
report on stress tests or other stability-related evaluations of financial
entities overseen by the member agencies;</text>
</subparagraph><subparagraph id="ID236d22c252a949dd96c5da49f486e7d6"><enum>(E)</enum><text>to maintain
expertise in such areas as may be necessary to support specific requests for
advice and assistance from financial regulators;</text>
</subparagraph><subparagraph id="IDd1e9983a6f134e8f94f812214ea0310b"><enum>(F)</enum><text>to investigate
disruptions and failures in the financial markets, report findings, and make
recommendations to the Council based on those findings;</text>
</subparagraph><subparagraph id="ID32c663debab844da8ed9cfa9ca2bea8f"><enum>(G)</enum><text>to conduct
studies and provide advice on the impact of policies related to systemic risk;
and</text>
</subparagraph><subparagraph id="id78F8C091AA7A46A1A2A0EE14B86A91B4"><enum>(H)</enum><text>to promote best
practices for financial risk management.</text>
</subparagraph></paragraph></subsection><subsection id="IDdd0b9d8b529a4964b59d42e91db1444b"><enum>(d)</enum><header>Reporting
responsibilities</header>
<paragraph id="ID99c5ae4ca0b6479bac8fc9a93fefe206"><enum>(1)</enum><header>Required
reports</header><text>Not later than 2 years after the date of enactment of
this Act, and not later than 120 days after the end of each fiscal year
thereafter, the Office shall prepare and submit a report to Congress.</text>
</paragraph><paragraph id="IDcc33b0baf0ba489a9d321ab46b11ae0e"><enum>(2)</enum><header>Content</header><text>Each
report required by this subsection shall assess the state of the United States
financial system, including—</text>
<subparagraph id="id90039730280D42E98FC74165D3AE6212"><enum>(A)</enum><text>an analysis of
any threats to the financial stability of the United States;</text>
</subparagraph><subparagraph id="idC3E45A3B72F949ABB3A02097AD18E658"><enum>(B)</enum><text>the status of the
efforts of the Office in meeting the mission of the Office; and</text>
</subparagraph><subparagraph id="id4263CF4D783C4DA6A7CA06BD2839383D"><enum>(C)</enum><text>key findings from
the research and analysis of the financial system by the Office.</text>
</subparagraph></paragraph></subsection></section><section id="ID121bf35483a34c83917ccda5b5fac062"><enum>155.</enum><header>Funding</header>
<subsection id="IDec33b1a92d6a4fb9a7131283025ecfc2"><enum>(a)</enum><header>Financial
research fund</header>
<paragraph id="ID3e25372905d14aff88d6268cd7e9e0ce"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a separate fund to be known as the <quote>Financial Research
Fund</quote>.</text>
</paragraph><paragraph id="IDe0e82a01af084f7abfe7882d35b09c2e"><enum>(2)</enum><header>Fund
receipts</header><text>All amounts provided to the Office under subsection (c),
and all assessments that the Office receives under subsection (d) shall be
deposited into the Financial Research Fund.</text>
</paragraph><paragraph id="IDe3e5d5494395454699355cc68bd47915"><enum>(3)</enum><header>Investments
authorized</header>
<subparagraph id="ID1f8a54825c4d45b79e2afd4664ba0ca8"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Director may request the Secretary to invest
the portion of the Financial Research Fund that is not, in the judgment of the
Director, required to meet the needs of the Office.</text>
</subparagraph><subparagraph id="ID3568d3a3029b429e883799cc69a8540e"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary in
obligations of the United States or obligations that are guaranteed as to
principal and interest by the United States, with maturities suitable to the
needs of the Financial Research Fund, as determined by the Director.</text>
</subparagraph></paragraph><paragraph id="IDa726f49b446d45b4a866ff9453b3be22"><enum>(4)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Financial Research Fund shall be
credited to and form a part of the Financial Research Fund.</text>
</paragraph></subsection><subsection id="ID7b37c8a52f63420cb90af9853df01f87"><enum>(b)</enum><header>Use of
funds</header>
<paragraph id="ID84774d2393144349857ec162a7cee9d7"><enum>(1)</enum><header>In
general</header><text>Funds obtained by, transferred to, or credited to the
Financial Research Fund shall be immediately available to the Office, and shall
remain available until expended, to pay the expenses of the Office in carrying
out the duties and responsibilities of the Office.</text>
</paragraph><paragraph id="ID86cb398c9f694d52bd93edb4d4ec7465"><enum>(2)</enum><header>Fees,
assessments, and other funds not government funds</header><text>Funds obtained
by, transferred to, or credited to the Financial Research Fund shall not be
construed to be Government funds or appropriated monies.</text>
</paragraph><paragraph id="IDeeb8410e9f9b4114b7c4229fb26c875c"><enum>(3)</enum><header>Amounts not
subject to apportionment</header><text>Notwithstanding any other provision of
law, amounts in the Financial Research Fund shall not be subject to
apportionment for purposes of chapter 15 of title 31, United States Code, or
under any other authority, or for any other purpose.</text>
</paragraph></subsection><subsection id="IDca6761557a554d958e2988a81cb1df40"><enum>(c)</enum><header>Interim
funding</header><text>During the 2-year period following the date of enactment
of this Act, the Board of Governors shall provide to the Office an amount
sufficient to cover the expenses of the Office.</text>
</subsection><subsection id="IDaa64937190014f8da476304a33093831"><enum>(d)</enum><header>Permanent
self-funding</header>
<paragraph id="ID698fe331e2c548cf985dc0312be51538"><enum>(1)</enum><header>In
general</header><text>Beginning 2 years after the date of enactment of this
Act, the Secretary shall establish, by regulation, and with the approval of the
Council, an assessment schedule, including the assessment base and rates,
applicable to bank holding companies with total consolidated assets of
$50,000,000,000 or greater and nonbank financial companies supervised by the
Board of Governors, that takes into account differences among such companies,
based on the considerations for establishing the prudential standards under
section 115, to collect assessments equal to the estimated total expenses of
the Office.</text>
</paragraph><paragraph id="ID4034aa162db94d9b97114b760aafb062"><enum>(2)</enum><header>Shortfall</header><text>To
the extent that the assessments under paragraph (1) do not fully cover the
total expenses of the Office, the Board of Governors shall provide to the
Office an amount sufficient to cover the difference.</text>
</paragraph></subsection></section><section id="IDf26610b1f3c54c3f94fbf051cacd4ba7"><enum>156.</enum><header>Transition
oversight</header>
<subsection id="ID35a909d0ecb74225a2f88341c235b23e"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to ensure that the Office—</text>
<paragraph id="IDec67619ea8cd4d37ae8905c33d1f99a1"><enum>(1)</enum><text>has
an orderly and organized startup;</text>
</paragraph><paragraph id="ID994c792dcfb549a6a4fe6ac8423ef549"><enum>(2)</enum><text>attracts and
retains a qualified workforce; and</text>
</paragraph><paragraph id="IDe678c959fe1f417792c62e0e9e3e07a4"><enum>(3)</enum><text>establishes
comprehensive employee training and benefits programs.</text>
</paragraph></subsection><subsection id="IDf1ed49c8851a4f18b4a740fde0598b8b"><enum>(b)</enum><header>Reporting
requirement</header>
<paragraph id="ID00d4da149a014df1a9ad8b072ba41f9a"><enum>(1)</enum><header>In
general</header><text>The Office shall submit an annual report to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that includes the plans
described in paragraph (2).</text>
</paragraph><paragraph id="id2BD88EC30DFA48A1A485A5CBE959D3E0"><enum>(2)</enum><header>Plans</header><text>The
plans described in this paragraph are as follows:</text>
<subparagraph id="ID733b00efd1fe4997925325c0b47db4c7"><enum>(A)</enum><header>Training and
workforce development plan</header><text>The Office shall submit a training and
workforce development plan that includes, to the extent practicable—</text>
<clause id="ID236194c1fb1d411faa4e8fa693677f28"><enum>(i)</enum><text>identification of
skill and technical expertise needs and actions taken to meet those
requirements;</text>
</clause><clause id="IDc7521e92cab545948735f37e29fee2ef"><enum>(ii)</enum><text>steps
taken to foster innovation and creativity;</text>
</clause><clause id="IDd4446e4a3f224a7882cf61f18365c3aa"><enum>(iii)</enum><text>leadership
development and succession planning; and</text>
</clause><clause id="ID242e436f82be4004ab44903d081c8283"><enum>(iv)</enum><text>effective use of
technology by employees.</text>
</clause></subparagraph><subparagraph id="ID39696dd1b4064732b62a41c521dc0d6b"><enum>(B)</enum><header>Workplace
flexibility plan</header><text>The Office shall submit a workforce flexibility
plan that includes, to the extent practicable—</text>
<clause id="ID573f4f86995b40b59f97c02bb3d23442"><enum>(i)</enum><text>telework;</text>
</clause><clause id="ID774e905fa4084cc6992b05d564b4e4dc"><enum>(ii)</enum><text>flexible work
schedules;</text>
</clause><clause id="IDbd8afe5f134a4fb199cfec6299eba343"><enum>(iii)</enum><text>phased
retirement;</text>
</clause><clause id="ID6bba2c1762b14470a5204b2f1dd8b6c6"><enum>(iv)</enum><text>reemployed
annuitants;</text>
</clause><clause id="ID819af94fd5ce442582b0bb2bb56c101c"><enum>(v)</enum><text>part-time
work;</text>
</clause><clause id="ID4edd664d45a8425eb9a419db1e69c628"><enum>(vi)</enum><text>job
sharing;</text>
</clause><clause id="IDc0e624e985e44931bbc9220a7a8edb40"><enum>(vii)</enum><text>parental leave
benefits and childcare assistance;</text>
</clause><clause id="ID2bc617f9d6994171a8e9dd5aa4ae38c1"><enum>(viii)</enum><text>domestic
partner benefits;</text>
</clause><clause id="ID59251f69bc2f4999a2fde5f75e501192"><enum>(ix)</enum><text>other
workplace flexibilities; or</text>
</clause><clause id="IDefca83db22e34c0dbdc7b599dc3bf84d"><enum>(x)</enum><text>any
combination of the items described in clauses (i) through (ix).</text>
</clause></subparagraph><subparagraph id="IDee9bed709e8e4d6297a91cf4d70ae749"><enum>(C)</enum><header>Recruitment and
retention plan</header><text>The Office shall submit a recruitment and
retention plan that includes, to the extent practicable, provisions relating
to—</text>
<clause id="ID207d7746d7a7407e8dd950aa081ee3ea"><enum>(i)</enum><text>the
steps necessary to target highly qualified applicant pools with diverse
backgrounds;</text>
</clause><clause id="IDc7a34c0654b049b6856e800d6eeea6b4"><enum>(ii)</enum><text>streamlined
employment application processes;</text>
</clause><clause id="ID5a03ac185b0a4c4681218a64d12824ba"><enum>(iii)</enum><text>the
provision of timely notification of the status of employment applications to
applicants; and</text>
</clause><clause id="IDead2c9dbad4d4eaf93b71ff69fd8b669"><enum>(iv)</enum><text>the
collection of information to measure indicators of hiring effectiveness.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID6ebe55c8ec9849b49d28e0584b3e3fda"><enum>(c)</enum><header>Expiration</header><text>The
reporting requirement under subsection (b) shall terminate 5 years after the
date of enactment of this Act.</text>
</subsection><subsection id="ID6d84533cedd74aabaac3c8b9f9dc51b7"><enum>(d)</enum><header>Rule of
construction</header><text>Nothing in this section may be construed to
affect—</text>
<paragraph id="ID76d5585e9fcc471f9a14dee2d46d33de"><enum>(1)</enum><text>a
collective bargaining agreement, as that term is defined in section 7103(a)(8)
of title 5, United States Code, that is in effect on the date of enactment of
this Act; or</text>
</paragraph><paragraph id="IDc88d8107a4fb4d369728c13ddbcc30d9"><enum>(2)</enum><text>the
rights of employees under chapter 71 of title 5, United States Code.</text>
</paragraph></subsection></section></subtitle><subtitle id="idA12C32A268914A6C92A7204EDA64E46F"><enum>C</enum><header>Additional Board
of Governors authority for certain nonbank financial companies and bank holding
companies</header>
<section id="id42C11493266347A0A1DEA34AA67452E0"><enum>161.</enum><header>Reports by and
examinations of nonbank financial companies by the Board of Governors</header>
<subsection id="ID9f2cb63e3f3644f7b5776527d100f421"><enum>(a)</enum><header>Reports</header>
<paragraph id="ID2ef3b7326c0b477eb436066697b060bd"><enum>(1)</enum><header>In
General</header><text>The Board of Governors may require each nonbank financial
company supervised by the Board of Governors, and any subsidiary thereof, to
submit reports under oath, to keep the Board of Governors informed as
to—</text>
<subparagraph id="ID16b304d1a38f4eb693b083d44ab520e6"><enum>(A)</enum><text>the financial
condition of the company or subsidiary, systems of the company or subsidiary
for monitoring and controlling financial, operating, and other risks, and the
extent to which the activities and operations of the company or subsidiary pose
a threat to the financial stability of the United States; and</text>
</subparagraph><subparagraph id="ID029adeb5d49c4a6fa1326abb360b62ce"><enum>(B)</enum><text>compliance by the
company or subsidiary with the requirements of this subtitle.</text>
</subparagraph></paragraph><paragraph id="ID528d68205cc540da940239688098e2ca"><enum>(2)</enum><header>Use of existing
reports and information</header><text>In carrying out subsection (a), the Board
of Governors shall, to the fullest extent possible, use—</text>
<subparagraph id="ID97f42c807d37424f8b418da8bc9b7004"><enum>(A)</enum><text>reports and
supervisory information that a nonbank financial company or subsidiary thereof
has been required to provide to other Federal or State regulatory
agencies;</text>
</subparagraph><subparagraph id="ID963301a417984ce7b32957593624faf6"><enum>(B)</enum><text>information
otherwise obtainable from Federal or State regulatory agencies;</text>
</subparagraph><subparagraph id="ID273141b8d35447879e1862474dcad045"><enum>(C)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subparagraph><subparagraph id="ID57cece10fe484926aa21c3252311cb11"><enum>(D)</enum><text>externally
audited financial statements of such company or subsidiary.</text>
</subparagraph></paragraph><paragraph id="IDb24e87d699df4eb8bd621a18b75b91c1"><enum>(3)</enum><header>Availability</header><text>Upon
the request of the Board of Governors, a nonbank financial company supervised
by the Board of Governors, or a subsidiary thereof, shall promptly provide to
the Board of Governors any information described in paragraph (2).</text>
</paragraph></subsection><subsection commented="no" id="ID7f2dd7e2c0444cc48af3429a7765f16d"><enum>(b)</enum><header>Examinations</header>
<paragraph commented="no" id="id245B227A13024067AFB1B74664AC0318"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Board of Governors may
examine any nonbank financial company supervised by the Board of Governors and
any subsidiary of such company, to determine—</text>
<subparagraph commented="no" id="ID7782e1a4f49f42c6b3cb7e0c009fb8a0"><enum>(A)</enum><text>the nature of the
operations and financial condition of the company and such subsidiary;</text>
</subparagraph><subparagraph commented="no" id="ID37a14b9aae0a454d97bc9385b4cabc62"><enum>(B)</enum><text>the financial,
operational, and other risks within the company that may pose a threat to the
safety and soundness of such company or to the financial stability of the
United States;</text>
</subparagraph><subparagraph commented="no" id="IDeaec952d888c44d8bb2c0651bd88d5d4"><enum>(C)</enum><text>the systems for
monitoring and controlling such risks; and</text>
</subparagraph><subparagraph commented="no" id="ID81826630037d4559a90dfbe5b0fd2ee5"><enum>(D)</enum><text>compliance by the
company with the requirements of this subtitle.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDcd471f287f33417ab7ea632e75c6ff7c"><enum>(2)</enum><header>Use of
examination reports and information</header><text>For purposes of this
subsection, the Board of Governors shall, to the fullest extent possible, rely
on reports of examination of any depository institution subsidiary or
functionally regulated subsidiary made by the primary financial regulatory
agency for that subsidiary, and on information described in subsection
(a)(2).</text>
</paragraph></subsection><subsection id="IDf891c4eddd7a41ce80f70ec2068067b9"><enum>(c)</enum><header>Coordination
with primary financial regulatory agency</header><text>The Board of Governors
shall—</text>
<paragraph id="id427E55FF2FE8428C9B2B29876C1A57E4"><enum>(1)</enum><text>provide to the
primary financial regulatory agency for any company or subsidiary, reasonable
notice before requiring a report, requesting information, or commencing an
examination of such subsidiary under this section; and</text>
</paragraph><paragraph id="id1F29333F088940AF99822559928A04DA"><enum>(2)</enum><text>avoid duplication
of examination activities, reporting requirements, and requests for
information, to the extent possible.</text>
</paragraph></subsection></section><section id="IDe339ee32cdaa4ac68387673de03b42c0"><enum>162.</enum><header>Enforcement</header>
<subsection id="IDb44d9b63a08f4547bf1111c203cbb0af"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b), a nonbank financial
company supervised by the Board of Governors and any subsidiaries of such
company (other than any depository institution subsidiary) shall be subject to
the provisions of subsections (b) through (n) of section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818), in the same manner and to the same
extent as if the company were a bank holding company, as provided in section
8(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)(3)).</text>
</subsection><subsection id="IDe64c52778aa64916957a41f94ce17309"><enum>(b)</enum><header>Enforcement
authority for functionally regulated subsidiaries</header>
<paragraph id="ID501a91592e394a379d9897aa1d61262b"><enum>(1)</enum><header>Referral</header><text>If
the Board of Governors determines that a condition, practice, or activity of a
depository institution subsidiary or functionally regulated subsidiary of a
nonbank financial company supervised by the Board of Governors does not comply
with the regulations or orders prescribed by the Board of Governors under this
Act, or otherwise poses a threat to the financial stability of the United
States, the Board of Governors may recommend, in writing, to the primary
financial regulatory agency for the subsidiary that such agency initiate a
supervisory action or enforcement proceeding. The recommendation shall be
accompanied by a written explanation of the concerns giving rise to the
recommendation.</text>
</paragraph><paragraph id="IDe454a7adcfc843c78df72f6e4a3cb077"><enum>(2)</enum><header>Back-up
authority of the Board of Governors</header><text>If, during the 60-day period
beginning on the date on which the primary financial regulatory agency receives
a recommendation under paragraph (1), the primary financial regulatory agency
does not take supervisory or enforcement action against a subsidiary that is
acceptable to the Board of Governors, the Board of Governors (upon a vote of
its members) may take the recommended supervisory or enforcement action, as if
the subsidiary were a bank holding company subject to supervision by the Board
of Governors.</text>
</paragraph></subsection></section><section commented="no" id="ID493adc090f1f47a8bc700b5ffdbf2d08"><enum>163.</enum><header>Acquisitions</header>
<subsection commented="no" id="ID11bce29f705e47b7a3a8b87fda3350ef"><enum>(a)</enum><header>Acquisitions of
banks; treatment as a bank holding company</header><text>For purposes of
section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842), a nonbank
financial company supervised by the Board of Governors shall be deemed to be,
and shall be treated as, a bank holding company.</text>
</subsection><subsection commented="no" id="ID8a890c14e94744319e920225a4afae3b"><enum>(b)</enum><header>Acquisition of
nonbank companies</header>
<paragraph commented="no" id="ID66a87ae46f66481995ef1215f1aae0fc"><enum>(1)</enum><header>Prior notice
for large acquisitions</header><text>Notwithstanding section 4(k)(6)(B) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)), a bank holding
company with total consolidated assets equal to or greater than $50,000,000,000
or a nonbank financial company supervised by the Board of Governors shall not
acquire direct or indirect ownership or control of any voting shares of any
company (other than an insured depository institution) that is engaged in
activities described in section 4(k) of the Bank Holding Company Act of 1956
having total consolidated assets of $10,000,000,000 or more, without providing
written notice to the Board of Governors in advance of the transaction.</text>
</paragraph><paragraph commented="no" id="IDfbc9edd0a0ea48008ae912e8aca60699"><enum>(2)</enum><header>Exemptions</header><text>The
prior notice requirement in paragraph (1) shall not apply with regard to the
acquisition of shares that would qualify for the exemptions in section 4(c) or
section 4(k)(4)(E) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)
and (k)(4)(E)).</text>
</paragraph><paragraph commented="no" id="ID1989b25cd9b6470b864ea8523fa6bf3e"><enum>(3)</enum><header>Notice
procedures</header><text>The notice procedures set forth in section 4(j)(1) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)(1)), without regard to
section 4(j)(3) of that Act, shall apply to an acquisition of any company
(other than an insured depository institution) by a bank holding company with
total consolidated assets equal to or greater than $50,000,000,000 or a nonbank
financial company supervised by the Board of Governors, as described in
paragraph (1), including any such company engaged in activities described in
section 4(k) of that Act.</text>
</paragraph><paragraph commented="no" id="IDeb1fc379dc3149a98b253e69ebae4ec3"><enum>(4)</enum><header>Standards for
review</header><text>In addition to the standards provided in section 4(j)(2)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)(2)), the Board of
Governors shall consider the extent to which the proposed acquisition would
result in greater or more concentrated risks to global or United States
financial stability or the United States economy.</text>
</paragraph></subsection></section><section commented="no" id="IDc92c8ee04e9a49f895079b3fad705f88"><enum>164.</enum><header>Prohibition
against management interlocks between certain financial companies</header><text display-inline="no-display-inline">A nonbank financial company supervised by
the Board of Governors shall be treated as a bank holding company for purposes
of the Depository Institutions Management Interlocks Act (12 U.S.C. 3201 et
seq.), except that the Board of Governors shall not exercise the authority
provided in section 7 of that Act (12 U.S.C. 3207) to permit service by a
management official of a nonbank financial company supervised by the Board of
Governors as a management official of any bank holding company with total
consolidated assets equal to or greater than $50,000,000,000, or other
nonaffiliated nonbank financial company supervised by the Board of Governors
(other than to provide a temporary exemption for interlocks resulting from a
merger, acquisition, or consolidation).</text>
</section><section commented="no" id="idECDA6EA47A0646C99BE083A152B2890F"><enum>165.</enum><header>Enhanced
supervision and prudential standards for nonbank financial companies supervised
by the Board of Governors and certain bank holding companies</header>
<subsection commented="no" id="id4A517872398B4EDC89DA0C11584B5E3B"><enum>(a)</enum><header>In
general</header>
<paragraph id="idDC6D2271143640EE8C13A561F2445150"><enum>(1)</enum><header>Purpose</header><text>In
order to prevent or mitigate risks to the financial stability of the United
States that could arise from the material financial distress or failure of
large, interconnected financial institutions, the Board of Governors shall, on
its own or pursuant to recommendations by the Council under section 115,
establish prudential standards and reporting and disclosure requirements
applicable to nonbank financial companies supervised by the Board of Governors
and large, interconnected bank holding companies that—</text>
<subparagraph id="id0B4E0E52C5994118A9F8B28FE8FE2FCF"><enum>(A)</enum><text>are more
stringent than the standards and requirements applicable to nonbank financial
companies and bank holding companies that do not present similar risks to the
financial stability of the United States; and</text>
</subparagraph><subparagraph id="idC45C6E443A4C474CB181B6847EC4985F"><enum>(B)</enum><text>increase in
stringency, based on the considerations identified in subsection (b)(3).</text>
</subparagraph></paragraph><paragraph id="idD6E100D3972E45758597A9D52556C7D9"><enum>(2)</enum><header>Limitation on
bank holding companies</header><text>Any standards established under
subsections (b) through (f) shall not apply to any bank holding company with
total consolidated assets of less than $50,000,000,000, but the Board of
Governors may establish an asset threshold greater than $50,000,000,000 for the
applicability of any particular standard under subsections (b) through
(f).</text>
</paragraph></subsection><subsection id="id04296FA6078E46BB9AB152875035F127"><enum>(b)</enum><header>Development of
prudential standards</header>
<paragraph id="id31338A0AA7E448CFA41C6BA9C4AB2C69"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id99D2D3C0ECEA482296AE4EF3AC9D6D89"><enum>(A)</enum><header>Required
standards</header><text>The Board of Governors shall, by regulation or order,
establish prudential standards for nonbank financial companies supervised by
the Board of Governors and bank holding companies described in subsection (a),
that shall include—</text>
<clause id="id5F29CEDAE1E449E594123C25B4201889"><enum>(i)</enum><text>risk-based
capital requirements;</text>
</clause><clause id="id95640C670E7040D8B1948C792CCFE9CA"><enum>(ii)</enum><text>leverage
limits;</text>
</clause><clause id="id3C0CAAFA0120451A8EB352C97D21FBCE"><enum>(iii)</enum><text>liquidity
requirements;</text>
</clause><clause id="id7E3F2F3DA31D421F959500BCC938B6C5"><enum>(iv)</enum><text>resolution plan
and credit exposure report requirements; and</text>
</clause><clause id="id72834BF43EDB43838217C370A59724B7"><enum>(v)</enum><text>concentration
limits.</text>
</clause></subparagraph><subparagraph id="ID3bf64a08dfba462bbe23797fca9761db"><enum>(B)</enum><header>Additional
standards authorized</header><text>The Board of Governors may, by regulation or
order, establish prudential standards for nonbank financial companies
supervised by the Board of Governors and bank holding companies described in
subsection (a), that include—</text>
<clause id="IDdc67107b439348c2b6408a78db231bf4"><enum>(i)</enum><text>a
contingent capital requirement;</text>
</clause><clause id="ID31d6e715689a4dc0824dfccf69853afd"><enum>(ii)</enum><text>enhanced public
disclosures; and</text>
</clause><clause id="IDb378eccead794d6faac8ae19e63a1994"><enum>(iii)</enum><text>overall risk
management requirements.</text>
</clause></subparagraph></paragraph><paragraph id="id740DCE7CE1E34A3884EE2EB3A472F0C2"><enum>(2)</enum><header>Prudential
standards for foreign financial companies</header><text>In applying the
standards set forth in paragraph (1) to foreign nonbank financial companies
supervised by the Board of Governors and to foreign-based bank holding
companies, the Board of Governors shall give due regard to the principle of
national treatment and competitive equity.</text>
</paragraph><paragraph id="id28F78C0E2A0F41D7AA638B6C92442B17"><enum>(3)</enum><header>Considerations</header><text>In
prescribing prudential standards under paragraph (1), the Board of Governors
shall—</text>
<subparagraph id="idEE8E1507B5CD4CFF98BA72D19CB52CA5"><enum>(A)</enum><text>take into account
differences among nonbank financial companies supervised by the Board of
Governors and bank holding companies described in subsection (a), based
on—</text>
<clause id="id5D5D11F7474A494CA1DC2260DB793387"><enum>(i)</enum><text>the
factors described in subsections (a) and (b) of section 113;</text>
</clause><clause id="idA71F95465704411D8EEF4CD145119E8C"><enum>(ii)</enum><text>whether the
company owns an insured depository institution;</text>
</clause><clause id="id8D1D3B8A21454925AC90F3DE9B919E8D"><enum>(iii)</enum><text>nonfinancial
activities and affiliations of the company; and</text>
</clause><clause id="id7DCDAF86703942EA98E9EBA0AC8F731C"><enum>(iv)</enum><text>any
other factors that the Board of Governors determines appropriate;</text>
</clause></subparagraph><subparagraph id="idF994C55DFB31442AAC9B6D11271D5B7D"><enum>(B)</enum><text>to the extent
possible, ensure that small changes in the factors listed in subsections (a)
and (b) of section 113 would not result in sharp, discontinuous changes in the
prudential standards established under paragraph (1) of this subsection;
and</text>
</subparagraph><subparagraph id="id8661946958CE46DD9C03E1B27540628D"><enum>(C)</enum><text>take into account
any recommendations of the Council under section 115.</text>
</subparagraph></paragraph><paragraph id="ID870dbabc6009482a9f4db3b99b9cf8e7"><enum>(4)</enum><header>Report</header><text>The
Board of Governors shall submit an annual report to Congress regarding the
implementation of the prudential standards required pursuant to paragraph (1),
including the use of such standards to mitigate risks to the financial
stability of the United States.</text>
</paragraph></subsection><subsection id="idD815BADA012B44AFA36D9D1E62A8C523"><enum>(c)</enum><header>Contingent
capital</header>
<paragraph id="id97F51A1FC885408F9D927D04D9DCDAAE"><enum>(1)</enum><header>In
general</header><text>Subsequent to submission by the Council of a report to
Congress under section 115(c), the Board of Governors may promulgate
regulations that require each nonbank financial company supervised by the Board
of Governors and bank holding companies described in subsection (a) to maintain
a minimum amount of long-term hybrid debt that is convertible to equity in
times of financial stress.</text>
</paragraph><paragraph id="id48B120D4FDEA4532898BDBE9BE0F8025"><enum>(2)</enum><header>Factors to
consider</header><text>In establishing regulations under this subsection, the
Board of Governors shall consider—</text>
<subparagraph id="ID90f0e5f96dc741ad8205d9c2f6014acd"><enum>(A)</enum><text>the results of
the study undertaken by the Council, and any recommendations of the Council,
under section 115(c);</text>
</subparagraph><subparagraph id="idF06E6B2BE0584E8C854554F1D2A85EA5"><enum>(B)</enum><text>an appropriate
transition period for implementation of a conversion under this
subsection;</text>
</subparagraph><subparagraph id="id9C25312321A647C8BC2C87B608CF0354"><enum>(C)</enum><text>the factors
described in subsection (b)(3)(A);</text>
</subparagraph><subparagraph id="id03C0A68D22D24E149819124261A2FA59"><enum>(D)</enum><text>capital
requirements applicable to the nonbank financial company supervised by the
Board of Governors or a bank holding company described in subsection (a), and
subsidiaries thereof; and</text>
</subparagraph><subparagraph id="id02478FB7E8F74092AF8D89CC00C6B35A"><enum>(E)</enum><text>any other factor
that the Board of Governors deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="idBBFE08499D044BB48FBC390F69EEA3A3"><enum>(d)</enum><header>Resolution plan
and credit exposure reports</header>
<paragraph id="id8E0063AD4DEA423198F762B9DE6F186C"><enum>(1)</enum><header>Resolution
plan</header><text>The Board of Governors shall require each nonbank financial
company supervised by the Board of Governors and bank holding companies
described in subsection (a) to report periodically to the Board of Governors,
the Council, and the Corporation the plan of such company for rapid and orderly
resolution in the event of material financial distress or failure.</text>
</paragraph><paragraph id="id729C28B752064F649ED462FFCA72C9AF"><enum>(2)</enum><header>Credit exposure
report</header><text>The Board of Governors shall require each nonbank
financial company supervised by the Board of Governors and bank holding
companies described in subsection (a) to report periodically to the Board of
Governors, the Council, and the Corporation on—</text>
<subparagraph id="id49E0B6EAF7B24BF8B938ECEC2BCA866C"><enum>(A)</enum><text>the nature and
extent to which the company has credit exposure to other significant nonbank
financial companies and significant bank holding companies; and</text>
</subparagraph><subparagraph id="id6BB0D437B0C54ED2B32DE0B41F3541C4"><enum>(B)</enum><text>the nature and
extent to which other significant nonbank financial companies and significant
bank holding companies have credit exposure to that company.</text>
</subparagraph></paragraph><paragraph id="IDa0d5ca3e534c4c54b9744811ff4c813a"><enum>(3)</enum><header>Review</header><text>The
Board of Governors and the Corporation shall review the information provided in
accordance with this section by each nonbank financial company supervised by
the Board of Governors and bank holding company described in subsection
(a).</text>
</paragraph><paragraph id="ID14cbbd0ef2be467b8262f48b05363436"><enum>(4)</enum><header>Notice of
deficiencies</header><text>If the Board of Governors and the Corporation
jointly determine, based on their review under paragraph (3), that the
resolution plan of a nonbank financial company supervised by the Board of
Governors or a bank holding company described in subsection (a) is not credible
or would not facilitate an orderly resolution of the company under title 11,
United States Code—</text>
<subparagraph id="IDf8742ee9db944c42b9f2b75f017e9fba"><enum>(A)</enum><text>the Board of
Governors and the Corporation shall notify the company, as applicable, of the
deficiencies in the resolution plan; and</text>
</subparagraph><subparagraph id="IDfb29bb674ad648748f0e481a68a02135"><enum>(B)</enum><text>the company shall
resubmit the resolution plan within a time frame determined by the Board of
Governors and the Corporation, with revisions demonstrating that the plan is
credible and would result in an orderly resolution under title 11, United
States Code, including any proposed changes in business operations and
corporate structure to facilitate implementation of the plan.</text>
</subparagraph></paragraph><paragraph id="IDe451a8ecc8894e1d97a6e8916d7b6e77"><enum>(5)</enum><header>Failure to
resubmit credible plan</header>
<subparagraph id="ID56f9e6699f56403db167d3fba46f411f"><enum>(A)</enum><header>In
general</header><text>If a nonbank financial company supervised by the Board of
Governors or a bank holding company described in subsection (a) fails to timely
resubmit the resolution plan as required under paragraph (4), with such
revisions as are required under subparagraph (B), the Board of Governors and
the Corporation may jointly impose more stringent capital, leverage, or
liquidity requirements, or restrictions on the growth, activities, or
operations of the company, or any subsidiary thereof, until such time as the
company resubmits a plan that remedies the deficiencies.</text>
</subparagraph><subparagraph id="IDf02d0f0d87ca427e845dd5a9a4cc7dc0"><enum>(B)</enum><header>Divestiture</header><text>The
Board of Governors and the Corporation, in consultation with the Council, may
direct a nonbank financial company supervised by the Board of Governors or a
bank holding company described in subsection (a), by order, to divest certain
assets or operations identified by the Board of Governors and the Corporation,
to facilitate an orderly resolution of such company under title 11, United
States Code, in the event of the failure of such company, in any case in
which—</text>
<clause id="id23A88D847BE945708F07072920999AEE"><enum>(i)</enum><text>the
Board of Governors and the Corporation have jointly imposed more stringent
requirements on the company pursuant to subparagraph (A); and</text>
</clause><clause id="idA190EE9A57954F798F56E9F04AB8D8B9"><enum>(ii)</enum><text>the
company has failed, within the 2-year period beginning on the date of the
imposition of such requirements under subparagraph (A), to resubmit the
resolution plan with such revisions as were required under paragraph
(4)(B).</text>
</clause></subparagraph></paragraph><paragraph id="ID84edd99be9f04631bb850466b61739d2"><enum>(6)</enum><header>Rules</header><text>Not
later than 18 months after the date of enactment of this Act, the Board of
Governors and the Corporation shall jointly issue final rules implementing this
subsection.</text>
</paragraph></subsection><subsection id="id51DB465BD27B4D229D8F0A7713DC3EA0"><enum>(e)</enum><header>Concentration
limits</header>
<paragraph id="ID50fdf3cb3f0847b7995d2d44e73434e3"><enum>(1)</enum><header>Standards</header><text>In
order to limit the risks that the failure of any individual company could pose
to a nonbank financial company supervised by the Board of Governors or a bank
holding company described in subsection (a), the Board of Governors, by
regulation, shall prescribe standards that limit such risks.</text>
</paragraph><paragraph id="ID45cad5d62bcf4da3a2f2bff4bdfc3323"><enum>(2)</enum><header>Limitation on
credit exposure</header><text>The regulations prescribed by the Board of
Governors under paragraph (1) shall prohibit each nonbank financial company
supervised by the Board of Governors and bank holding company described in
subsection (a) from having credit exposure to any unaffiliated company that
exceeds 25 percent of the capital stock and surplus (or such lower amount as
the Board of Governors may determine by regulation to be necessary to mitigate
risks to the financial stability of the United States) of the company.</text>
</paragraph><paragraph id="ID717eb4214c1d4c87bcb96b392728ab37"><enum>(3)</enum><header>Credit
exposure</header><text>For purposes of paragraph (2), <quote>credit
exposure</quote> to a company means—</text>
<subparagraph id="ID8cfb337ac1d242a9bd91a7fbe1764aa5"><enum>(A)</enum><text>all extensions of
credit to the company, including loans, deposits, and lines of credit;</text>
</subparagraph><subparagraph id="ID22140d7943b645f2836eb36c1b386459"><enum>(B)</enum><text>all repurchase
agreements and reverse repurchase agreements with the company;</text>
</subparagraph><subparagraph id="ID690cd3f9e7f24a1fa0e09d613c5b11b6"><enum>(C)</enum><text>all securities
borrowing and lending transactions with the company, to the extent that such
transactions create credit exposure for the nonbank financial company
supervised by the Board of Governors or a bank holding company described in
subsection (a);</text>
</subparagraph><subparagraph id="ID76a5c71e59774bf68bd25e6cf99f769c"><enum>(D)</enum><text>all guarantees,
acceptances, or letters of credit (including endorsement or standby letters of
credit) issued on behalf of the company;</text>
</subparagraph><subparagraph id="IDc888c7a5a1274b2cab500d0f7ea87fcd"><enum>(E)</enum><text>all purchases of
or investment in securities issued by the company;</text>
</subparagraph><subparagraph id="ID1afe7c2d52db4afa81e97e2fc51758c8"><enum>(F)</enum><text>counterparty
credit exposure to the company in connection with a derivative transaction
between the nonbank financial company supervised by the Board of Governors or a
bank holding company described in subsection (a) and the company; and</text>
</subparagraph><subparagraph id="ID4eed2fbab87b4e3e9172c66465bf87be"><enum>(G)</enum><text>any other similar
transactions that the Board of Governors, by regulation, determines to be a
credit exposure for purposes of this section.</text>
</subparagraph></paragraph><paragraph id="ID567f80dcc7114dac92f3ae42d1e7d167"><enum>(4)</enum><header>Attribution
rule</header><text>For purposes of this subsection, any transaction by a
nonbank financial company supervised by the Board of Governors or a bank
holding company described in subsection (a) with any person is a transaction
with a company, to the extent that the proceeds of the transaction are used for
the benefit of, or transferred to, that company.</text>
</paragraph><paragraph id="ID3dd777e2846f42da8d72e4fb9680579d"><enum>(5)</enum><header>Rulemaking</header><text>The
Board of Governors may issue such regulations and orders, including definitions
consistent with this section, as may be necessary to administer and carry out
this subsection.</text>
</paragraph><paragraph id="ID97aabd233cb944f6bed185f1566c3ade"><enum>(6)</enum><header>Exemptions</header><text>The
Board of Governors may, by regulation or order, exempt transactions, in whole
or in part, from the definition of <quote>credit exposure</quote> for purposes
of this subsection, if the Board of Governors finds that the exemption is in
the public interest and is consistent with the purpose of this
subsection.</text>
</paragraph><paragraph id="IDd1a545c8841e4420984818f774151bb6"><enum>(7)</enum><header>Transition
period</header>
<subparagraph id="idE70F5FBE61B54C30B341FD28C38F8CCA"><enum>(A)</enum><header>In
general</header><text>This subsection and any regulations and orders of the
Board of Governors under this subsection shall not be effective until 3 years
after the date of enactment of this Act.</text>
</subparagraph><subparagraph id="idCB453C93DAD5403B8230306F0D0656E8"><enum>(B)</enum><header>Extension
authorized</header><text>The Board of Governors may extend the period specified
in subparagraph (A) for not longer than an additional 2 years.</text>
</subparagraph></paragraph></subsection><subsection id="ID862809a536884cad9b428096a2ffd29e"><enum>(f)</enum><header>Enhanced public
disclosures</header><text>The Board of Governors may prescribe, by regulation,
periodic public disclosures by nonbank financial companies supervised by the
Board of Governors and bank holding companies described in subsection (a) in
order to support market evaluation of the risk profile, capital adequacy, and
risk management capabilities thereof.</text>
</subsection><subsection id="ID01454c8a2cc04321b080f1e2c6ad1fc5"><enum>(g)</enum><header>Risk
committee</header>
<paragraph id="id98EE38DEA6014153A6421D32B0916D4A"><enum>(1)</enum><header>Nonbank
financial companies supervised by the Board of Governors</header><text>The
Board of Governors shall require each nonbank financial company supervised by
the Board of Governors that is a publicly traded company to establish a risk
committee, as set forth in paragraph (3), not later than 1 year after the date
of receipt of a notice of final determination under section 113(d)(3) with
respect to such nonbank financial company supervised by the Board of
Governors.</text>
</paragraph><paragraph commented="no" id="idC2F7F3327D0A4982952B7ED196282EBB"><enum>(2)</enum><header>Certain bank
holding companies</header>
<subparagraph commented="no" id="id6ED392E8342142CFB6AE85DD21C96666"><enum>(A)</enum><header>Mandatory
regulations</header><text>The Board of Governors shall issue regulations
requiring each bank holding company that is a publicly traded company and that
has total consolidated assets of not less than $10,000,000,000 to establish a
risk committee, as set forth in paragraph (3).</text>
</subparagraph><subparagraph commented="no" id="idBF13F48D4CDD4CA78253DF2E8B182869"><enum>(B)</enum><header>Permissive
regulations</header><text>The Board of Governors may require each bank holding
company that is a publicly traded company and that has total consolidated
assets of less than $10,000,000,000 to establish a risk committee, as set forth
in paragraph (3), as determined necessary or appropriate by the Board of
Governors to promote sound risk management practices.</text>
</subparagraph></paragraph><paragraph id="ID2a6e52acecba447dbccf5be014c0a0ff"><enum>(3)</enum><header>Risk
committee</header><text>A risk committee required by this subsection
shall—</text>
<subparagraph id="ID448d6d83e41b4513a4b8ec3465894b4f"><enum>(A)</enum><text>be responsible
for the oversight of the enterprise-wide risk management practices of the
nonbank financial company supervised by the Board of Governors or bank holding
company described in subsection (a), as applicable;</text>
</subparagraph><subparagraph id="ID17c0fdff6cc94a41902364273bb27821"><enum>(B)</enum><text>include such
number of independent directors as the Board of Governors may determine
appropriate, based on the nature of operations, size of assets, and other
appropriate criteria related to the nonbank financial company supervised by the
Board of Governors or a bank holding company described in subsection (a), as
applicable; and</text>
</subparagraph><subparagraph id="IDd8f683c7673f4cd284bf0b0eb431e18e"><enum>(C)</enum><text>include at least
1 risk management expert having experience in identifying, assessing, and
managing risk exposures of large, complex firms.</text>
</subparagraph></paragraph><paragraph id="IDe5bc63626be142329cfe4cee47763374"><enum>(4)</enum><header>Rulemaking</header><text>The
Board of Governors shall issue final rules to carry out this subsection, not
later than 1 year after the transfer date, to take effect not later than 15
months after the transfer date.</text>
</paragraph></subsection><subsection id="IDdfb93ea7012e4fd7a2ee434e69e49d87"><enum>(h)</enum><header>Stress
tests</header><text>The Board of Governors shall conduct analyses in which
nonbank financial companies supervised by the Board of Governors and bank
holding companies described in subsection (a) are subject to evaluation of
whether the companies have the capital, on a total consolidated basis,
necessary to absorb losses as a result of adverse economic conditions. The
Board of Governors may develop and apply such other analytic techniques as are
necessary to identify, measure, and monitor risks to the financial stability of
the United States.</text>
</subsection></section><section id="IDe62ecad33c704f76be84b35d9a44f6cb"><enum>166.</enum><header>Early
remediation requirements</header>
<subsection id="ID7b35fbe4c45c4d9d938ca21b996df381"><enum>(a)</enum><header>In
general</header><text>The Board of Governors, in consultation with the Council
and the Corporation, shall prescribe regulations establishing requirements to
provide for the early remediation of financial distress of a nonbank financial
company supervised by the Board of Governors or a bank holding company
described in section 165(a), except that nothing in this subsection authorizes
the provision of financial assistance from the Federal Government.</text>
</subsection><subsection id="ID2adc42183e6e4609a7419847d0ce45c1"><enum>(b)</enum><header>Purpose of the
early remediation requirements</header><text>The purpose of the early
remediation requirements under subsection (a) shall be to establish a series of
specific remedial actions to be taken by a nonbank financial company supervised
by the Board of Governors or a bank holding company described in section 165(a)
that is experiencing increasing financial distress, in order to minimize the
probability that the company will become insolvent and the potential harm of
such insolvency to the financial stability of the United States.</text>
</subsection><subsection id="IDc7ff6b3f1efb4e88b356fce91040b626"><enum>(c)</enum><header>Remediation
requirements</header><text>The regulations prescribed by the Board of Governors
under subsection (a) shall—</text>
<paragraph id="ID63660e1029504fa68dbd4cb2d7c54293"><enum>(1)</enum><text>define measures
of the financial condition of the company, including regulatory capital,
liquidity measures, and other forward-looking indicators; and</text>
</paragraph><paragraph id="IDe87ebe92afc54bce8d1ddbb089c9aaea"><enum>(2)</enum><text>establish
requirements that increase in stringency as the financial condition of the
company declines, including—</text>
<subparagraph id="ID9683b994280c4d3488beffa2a6ed1ba0"><enum>(A)</enum><text>requirements in
the initial stages of financial decline, including limits on capital
distributions, acquisitions, and asset growth; and</text>
</subparagraph><subparagraph id="ID08af5975990b4548821b15cbdb09f9d1"><enum>(B)</enum><text>requirements at
later stages of financial decline, including a capital restoration plan and
capital-raising requirements, limits on transactions with affiliates,
management changes, and asset sales.</text>
</subparagraph></paragraph></subsection></section><section id="idC2E12D84CDF24D568E4CE4381EB25169"><enum>167.</enum><header>Affiliations</header>
<subsection id="ID9cc46a0b0e1c4a478f26b40f6de3721e"><enum>(a)</enum><header>Affiliations</header><text>Nothing
in this subtitle shall be construed to require a nonbank financial company
supervised by the Board of Governors, or a company that controls a nonbank
financial company supervised by the Board of Governors, to conform the
activities thereof to the requirements of section 4 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843).</text>
</subsection><subsection id="IDbb966e0ed2fe4dbdb5bfae07dd0602cb"><enum>(b)</enum><header>Requirement</header>
<paragraph id="ID36d6897386ee4905aeb77235d1850277"><enum>(1)</enum><header>In
general</header><text>If a nonbank financial company supervised by the Board of
Governors conducts activities other than those that are determined to be
financial in nature or incidental thereto under section 4(k) of the Bank
Holding Company Act of 1956, the Board of Governors may require such company to
establish and conduct such activities that are determined to be financial in
nature or incidental thereto in an intermediate holding company established
pursuant to regulation of the Board of Governors, not later than 90 days after
the date on which the nonbank financial company supervised by the Board of
Governors was notified of the determination under section 113(a).</text>
</paragraph><paragraph id="ID16f8ee384fe348fea06b13d07d18b20e"><enum>(2)</enum><header>Internal
financial activities</header><text>For purposes of this subsection, activities
that are determined to be financial in nature or incidental thereto under
section 4(k) of the Bank Holding Company Act of 1956, as described in paragraph
(1), shall not include internal financial activities conducted for a nonbank
financial company supervised by the Board of Governors or any affiliate,
including internal treasury, investment, and employee benefit functions. With
respect to any internal financial activity of such company during the year
prior to the date of enactment of this Act, such company may continue to engage
in such activity as long as 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 such company, subject to review by the Board of Governors,
to determine whether engaging in such activity presents undue risk to such
company or to the financial stability of the United States.</text>
</paragraph></subsection><subsection id="id79968A501A5E4177B4951E5D56A40EA9"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Board of Governors—</text>
<paragraph id="IDb72bfed1f4ab4bb1a6ce4736423bf2d6"><enum>(1)</enum><text>shall promulgate
regulations to establish the criteria for determining whether to require a
nonbank financial company supervised by the Board of Governors to establish an
intermediate holding company under subsection (a); and</text>
</paragraph><paragraph id="IDca169e99e6f14ecc819c10e6b18db151"><enum>(2)</enum><text>may
promulgate regulations to establish any restrictions or limitations on
transactions between an intermediate holding company or a nonbank financial
company supervised by the Board of Governors and its affiliates, as necessary
to prevent unsafe and unsound practices in connection with transactions between
such company, or any subsidiary thereof, and its parent company or affiliates
that are not subsidiaries of such company, except that such regulations shall
not restrict or limit any transaction in connection with the bona fide
acquisition or lease by an unaffiliated person of assets, goods, or
services.</text>
</paragraph></subsection></section><section commented="no" id="ID1e186906ffd0481ea97ecd29a2347b37"><enum>168.</enum><header>Regulations</header><text display-inline="no-display-inline">Except as otherwise specified in this
subtitle, not later than 18 months after the transfer date, the Board of
Governors shall issue final regulations to implement this subtitle and the
amendments made by this subtitle.</text>
</section><section commented="no" id="ID3e13afc190b64d29946a768f6dec04e2"><enum>169.</enum><header>Avoiding
duplication</header><text display-inline="no-display-inline">The Board of
Governors shall take any action that the Board of Governors deems appropriate
to avoid imposing requirements under this subtitle that are duplicative of
requirements applicable to bank holding companies and nonbank financial
companies under other provisions of law.</text>
</section><section commented="no" id="id860FD53FE1F04A778DB86006CC3DCEB1"><enum>170.</enum><header>Safe
harbor</header>
<subsection id="IDbdb1130076654ad895a3130899361ecc"><enum>(a)</enum><header>Regulations</header><text>The
Board of Governors shall promulgate regulations on behalf of, and in
consultation with, the Council setting forth the criteria for exempting certain
types or classes of U.S. nonbank financial companies or foreign nonbank
financial companies from supervision by the Board of Governors.</text>
</subsection><subsection id="ID805c08f8e54c49ef8cc8e07630e29ebc"><enum>(b)</enum><header>Considerations</header><text>In
developing the criteria under subsection (a), the Board of Governors shall take
into account the factors for consideration described in subsections (a) and (b)
of section 113 in determining whether a U.S. nonbank financial company or
foreign nonbank financial company shall be supervised by the Board of
Governors.</text>
</subsection><subsection id="ID1c38c47675de4880a10cd848eb178d66"><enum>(c)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to
require supervision by the Board of Governors of a U.S. nonbank financial
company or foreign nonbank financial company, if such company does not meet the
criteria for exemption established under subsection (a).</text>
</subsection><subsection id="ID3464dbd2929143829a3b8e3591b57a34"><enum>(d)</enum><header>Update</header><text>The
Board of Governors shall, in consultation with the Council, review the
regulations promulgated under subsection (a), not less frequently than every 5
years, and based upon the review, the Board of Governors may revise such
regulations on behalf of, and in consultation with, the Council to update as
necessary the criteria set forth in such regulations.</text>
</subsection><subsection id="ID374e3c33c9c34aa4a8ba60e49630c6ec"><enum>(e)</enum><header>Transition
period</header><text>No revisions under subsection (d) shall take effect before
the end of the 2-year period after the date of publication of such revisions in
final form.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe54a58b931304c039c06bf05cfc4e9a8"><enum>(f)</enum><header>Report</header><text>The
Chairperson of the Board of Governors and the Chairperson of the Council shall
submit a joint report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives not later than 30 days after the date of the issuance in final
form of the regulations under subsection (a), or any subsequent revision to
such regulations under subsection (d), as applicable. Such report shall
include, at a minimum, the rationale for exemption and empirical evidence to
support the criteria for exemption.</text>
</subsection></section></subtitle><enum>II</enum><header>Orderly
liquidation authority</header>
<section id="ID5d94b38c22a74642b9717c714bb50ed5"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="IDacec689363a74830bf9c119e9c240963"><enum>(1)</enum><header>Administrative
expenses of the receiver</header><text>The term <term>administrative expenses
of the receiver</term> includes—</text>
<subparagraph id="IDe1415d8036624f679aaefec9afb2c0a5"><enum>(A)</enum><text>the actual,
necessary costs and expenses incurred by the Corporation as receiver for a
covered financial company in liquidating a covered financial company;
and</text>
</subparagraph><subparagraph id="IDad304c256f4e4157bfd64f34ba95f33b"><enum>(B)</enum><text>any obligations
that the Corporation as receiver for a covered financial company determines are
necessary and appropriate to facilitate the smooth and orderly liquidation of
the covered financial company.</text>
</subparagraph></paragraph><paragraph id="ID60587d7a888148699717bef4419a5b44"><enum>(2)</enum><header>Bankruptcy
code</header><text>The term <term>Bankruptcy Code</term> means title 11, United
States Code.</text>
</paragraph><paragraph id="ID4f55a61b2d614a0d82ff23c468bc0936"><enum>(3)</enum><header>Bridge
financial company</header><text>The term <term>bridge financial company</term>
means a new financial company organized by the Corporation in accordance with
section 210(h) for the purpose of resolving a covered financial company.</text>
</paragraph><paragraph id="IDb860865f41a54c9ea7e890a295af8660"><enum>(4)</enum><header>Claim</header><text>The
term <term>claim</term> means any right of payment, whether or not such right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or
unsecured.</text>
</paragraph><paragraph commented="no" id="ID52ac79ce6e784bf8905cbf86404ca08d"><enum>(5)</enum><header>Company</header><text>The
term <term>company</term> has the same meaning as in section 2(b) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(b)), except that such term includes
any company described in paragraph (11), the majority of the securities of
which are owned by the United States or any State.</text>
</paragraph><paragraph commented="no" id="IDe192652b932149e79edadd4b60606a81"><enum>(6)</enum><header>Covered broker
or dealer</header><text>The term <quote>covered broker or dealer</quote> means
a covered financial company that is a broker or dealer that—</text>
<subparagraph commented="no" id="id7C01C2A0AE09484C9843B1B8E7348C22"><enum>(A)</enum><text>is registered
with the Commission under section 15(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78o(b)); and</text>
</subparagraph><subparagraph commented="no" id="idF9DB7991BE1D453A979C1D80BEE2A3D4"><enum>(B)</enum><text>is a member of
SIPC.</text>
</subparagraph></paragraph><paragraph id="idC972A7BDB71C4ADEA8ACC2FF9933A48E"><enum>(7)</enum><header>Covered
financial company</header><text>The term <term>covered financial
company</term>—</text>
<subparagraph id="id98A3C95B4352464A926CC5C0AAEAC4FB"><enum>(A)</enum><text>means a financial
company for which a determination has been made under section 203(b);
and</text>
</subparagraph><subparagraph id="id713701FAD5254BB6821361209B80CB49"><enum>(B)</enum><text>does not include
an insured depository institution.</text>
</subparagraph></paragraph><paragraph id="ID10bea620cd544a7ead46f328e8d3a9f5"><enum>(8)</enum><header>Covered
subsidiary</header><text>The term <term>covered subsidiary</term> means a
subsidiary of a covered financial company, other than—</text>
<subparagraph id="ID2bc1d146d5f9442193280fed7597f56f"><enum>(A)</enum><text>an insured
depository institution;</text>
</subparagraph><subparagraph commented="no" id="ID00af3114c0004abeb025f3fdbc321f05"><enum>(B)</enum><text>an insurance
company; or</text>
</subparagraph><subparagraph id="ID04f2403447574c8e86e5f9bad50fee48"><enum>(C)</enum><text>a
covered broker or dealer.</text>
</subparagraph></paragraph><paragraph id="ID5d359cb3407e4eb1be4e0e0a3285d589"><enum>(9)</enum><header>Definitions
relating to covered brokers and dealers</header><text>The terms
<term>customer</term>, <term>customer name securities</term>, <term>customer
property</term>, and <term>net equity</term> in the context of a covered broker
or dealer, have the same meanings as in section 16 of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78lll).</text>
</paragraph><paragraph id="ID382a03895b9145e690c638fb29feba8a"><enum>(10)</enum><header>Financial
company</header><text>The term <term>financial company</term> means any company
that—</text>
<subparagraph id="IDd4fce797157e4d92802392b6ae2c4cc1"><enum>(A)</enum><text>is incorporated
or organized under any provision of Federal law or the laws of any
State;</text>
</subparagraph><subparagraph id="ID1bbca9fb4652463d927154e95d77f806"><enum>(B)</enum><text>is—</text>
<clause id="IDa5ef16f202e2466a899c72d373f180aa"><enum>(i)</enum><text>a bank
holding company, as defined in section 2(a) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(a)), and including any company described in paragraph
(5);</text>
</clause><clause id="ID08b0f0dd8aa24c15bf918f89491d8213"><enum>(ii)</enum><text>a
nonbank financial company supervised by the Board of Governors;</text>
</clause><clause id="IDbdf80941c7d9402ab0c209419912f916"><enum>(iii)</enum><text>any
company that is predominantly engaged in activities that the Board of Governors
has determined are financial in nature or incidental thereto for purposes of
section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) other
than a company described in clause (i) or (ii); or</text>
</clause><clause id="IDd8ce03988d284d19ae391d4bd177cdb3"><enum>(iv)</enum><text>any
subsidiary of any company described in any of clauses (i) through (iii) (other
than a subsidiary that is an insured depository institution or an insurance
company); and</text>
</clause></subparagraph><subparagraph id="idECECFBAB4D4B4FB2B1E998996D66468E"><enum>(C)</enum><text>is not a Farm
Credit System institution chartered under and subject to the provisions of the
Farm Credit Act of 1971, as amended (12 U.S.C. 2001 et seq.).</text>
</subparagraph></paragraph><paragraph id="IDe9ff2b4e53944feaae1a91e9e1867030"><enum>(11)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Orderly Liquidation Fund established under
section 210(n).</text>
</paragraph><paragraph id="IDfb192bd94fe14adfa915b4db48d3f536"><enum>(12)</enum><header>Insurance
company</header><text>The term <term>insurance company</term> means any entity
that is—</text>
<subparagraph id="idD07EC265D8BF4D74B3EDF687345619E1"><enum>(A)</enum><text>engaged in the
business of insurance;</text>
</subparagraph><subparagraph id="id943F270C3C724A4C9F8A1C36E19D9691"><enum>(B)</enum><text>subject to
regulation by a State insurance regulator; and</text>
</subparagraph><subparagraph commented="no" id="id71ECD6C099064E03B13C6AFBF2420346"><enum>(C)</enum><text>covered by a
State law that is designed to specifically deal with the rehabilitation,
liquidation, or insolvency of an insurance company.</text>
</subparagraph></paragraph><paragraph id="idEB633692F8A646D9A15A4160A5B281A9"><enum>(13)</enum><header>Nonbank
financial company</header><text>The term <term>nonbank financial company</term>
has the same meaning as in section 102(a)(4)(C).</text>
</paragraph><paragraph id="idEF9F1F251F6A4D80BF5D3355681B24C6"><enum>(14)</enum><header>Nonbank
financial company supervised by the board of governors</header><text>The term
<term>nonbank financial company supervised by the Board of Governors</term> has
the same meaning as in section 102(a)(3)(D).</text>
</paragraph><paragraph commented="no" id="idD1B2E6C1BF8B44F480782F3B35E82007"><enum>(15)</enum><header>Panel</header><text>The
term <term>Panel</term> means the Orderly Liquidation Authority Panel
established under section 202.</text>
</paragraph><paragraph id="id0C32275D8BFD4514BF0807AB3F046E16"><enum>(16)</enum><header>SIPC</header><text>The
term <term>SIPC</term> means the Securities Investor Protection
Corporation.</text>
</paragraph></section><section id="ID0f042d86940c4194a8cb2f03face8d88"><enum>202.</enum><header>Orderly
Liquidation Authority Panel</header>
<subsection id="IDa6fcab2764894445bf7e60042d265e42"><enum>(a)</enum><header>Orderly
Liquidation Authority Panel</header>
<paragraph id="IDb437a7d0c15b4f5b99bed57fbd18ed44"><enum>(1)</enum><header>Establishment</header><text>There
is established in the United States Bankruptcy Court for the District of
Delaware, an Orderly Liquidation Authority Panel. The Chief Judge of the United
States Bankruptcy Court for the District of Delaware shall appoint judges to
the Panel, consistent with paragraph (2). In making such appointments, the
Chief Judge shall consider the expertise in financial matters of each
judge.</text>
</paragraph><paragraph id="ID4bab4683b40c403da14fd5817d528790"><enum>(2)</enum><header>Composition</header><text>The
Panel shall be composed of 3 judges from the United States Bankruptcy Court for
the District of Delaware.</text>
</paragraph><paragraph id="IDd1adb6523b32425a9542f7d3441751b1"><enum>(3)</enum><header>Jurisdiction</header><text>The
Panel shall have original and exclusive jurisdiction of proceedings to consider
petitions by the Secretary under subsection (b)(1).</text>
</paragraph></subsection><subsection id="IDc75b664ca5034968bbdfcdd5ff78b1fa"><enum>(b)</enum><header>Commencement of
orderly liquidation</header>
<paragraph id="IDb51991bc7bd7432cb19cfb1e8ff016c7"><enum>(1)</enum><header>Petition to
panel</header>
<subparagraph id="ID88bc3d8dbaf144e0850983cbc03175d5"><enum>(A)</enum><header>Orderly
liquidation authority panel</header>
<clause id="IDf6b92894a4ff432d976bce6f9345bfec"><enum>(i)</enum><header>Petition to
panel</header><text>Subsequent to a determination by the Secretary under
section 203 that a financial company meets the criteria in section 203(b), the
Secretary, upon notice to the Corporation and the covered financial company,
shall petition the Panel for an order authorizing the Secretary to appoint the
Corporation as receiver.</text>
</clause><clause id="ID1fe67008bf8648ea8bad5a5aa0be4621"><enum>(ii)</enum><header>Form
and content of order</header><text>The Secretary shall present all relevant
findings and the recommendation made pursuant to section 203(a) to the Panel.
The petition shall be filed under seal.</text>
</clause><clause id="ID7569c9e7fe544cd09c376c10b13f3e8c"><enum>(iii)</enum><header>Determination</header><text>On
a strictly confidential basis, and without any prior public disclosure, the
Panel, after notice to the covered financial company and a hearing in which the
covered financial company may oppose the petition, shall determine, within 24
hours of receipt of the petition filed by the Secretary, whether the
determination of the Secretary that the covered financial company is in default
or in danger of default is supported by substantial evidence.</text>
</clause><clause id="IDf699021607a2473296c4104a897a4e26"><enum>(iv)</enum><header>Issuance of
order</header><text>If the Panel determines that the determination of the
Secretary that the covered financial company is in default or in danger of
default—</text>
<subclause id="id62ECA202EDF742DDADE55233E4BC7DE0"><enum>(I)</enum><text>is
supported by substantial evidence, the Panel shall issue an order immediately
authorizing the Secretary to appoint the Corporation as receiver of the covered
financial company; or</text>
</subclause><subclause id="id4912E0979050434895F1A59AF08DBF81"><enum>(II)</enum><text>is
not supported by substantial evidence, the Panel shall immediately provide to
the Secretary a written statement of each reason supporting its determination,
and afford the Secretary an immediate opportunity to amend and refile the
petition under clause (i).</text>
</subclause></clause></subparagraph><subparagraph id="IDf5f7414cd9974b0ba9c525b9cbca418a"><enum>(B)</enum><header>Effect of
determination</header><text>The determination of the Panel under subparagraph
(A) shall be final, and shall be subject to appeal only in accordance with
paragraph (2). The decision shall not be subject to any stay or injunction
pending appeal. Upon conclusion of its proceedings under subparagraph (A), the
Panel shall provide immediately for the record a written statement of each
reason supporting the decision of the Panel, and shall provide copies thereof
to the Secretary and the covered financial company.</text>
</subparagraph><subparagraph id="ID69e3cd98fb9248189d060090747f83e3"><enum>(C)</enum><header>Criminal
penalties</header><text>A person who recklessly discloses a determination of
the Secretary under section 203(b) or a petition of the Secretary under
subparagraph (A), or the pendency of court proceedings as provided for under
subparagraph (A), shall be fined not more than $250,000, or imprisoned for not
more than 5 years, or both.</text>
</subparagraph></paragraph><paragraph id="ID4c63fbcc880045749c3cfea9cc2d18f8"><enum>(2)</enum><header>Appeal of
decisions of the panel</header>
<subparagraph id="ID681bc59aa8024fbb9d8446d7383f8587"><enum>(A)</enum><header>Appeal to court
of appeals</header>
<clause id="IDed829191de5940708361cab8cbba540e"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), the United States Court of
Appeals for the Third Circuit shall have jurisdiction of an appeal of a final
decision of the Panel filed by the Secretary or a covered financial company,
through its board of directors, notwithstanding section 210(a)(1)(A)(i), not
later than 30 days after the date on which the decision of the Panel is
rendered or deemed rendered under this subsection.</text>
</clause><clause id="ID2dfad3f1fb4f4fb5b5371f66079485da"><enum>(ii)</enum><header>Condition of
jurisdiction</header><text>The Court of Appeals shall have jurisdiction of an
appeal by a covered financial company only if the covered financial company did
not acquiesce or consent to the appointment of a receiver by the Secretary
under paragraph (1)(A).</text>
</clause><clause id="IDadd5c33ec877445fb34ec1ed88f43ad5"><enum>(iii)</enum><header>Expedition</header><text>The
Court of Appeals shall consider any appeal under this subparagraph on an
expedited basis.</text>
</clause><clause id="IDc31e7e4194084afb9f41b5f8ec0dd90f"><enum>(iv)</enum><header>Scope of
review</header><text>For an appeal taken under this subparagraph, review shall
be limited to whether the determination of the Secretary that a covered
financial company is in default or in danger of default is supported by
substantial evidence.</text>
</clause></subparagraph><subparagraph id="IDe5266a2d70bd4ed081c559778f9137cc"><enum>(B)</enum><header>Appeal to the
supreme court</header>
<clause id="IDc65e22916ba842f0b012b65aa0d7aca2"><enum>(i)</enum><header>In
general</header><text>A petition for a writ of certiorari to review a decision
of the Court of Appeals under subparagraph (A) may be filed by the Secretary or
the covered financial company, through its board of directors, notwithstanding
section 210(a)(1)(A)(i), with the Supreme Court of the United States, not later
than 30 days after the date of the final decision of the Court of Appeals, and
the Supreme Court shall have discretionary jurisdiction to review such
decision.</text>
</clause><clause id="IDf31b0b56571e462fbf76c5ec3fc61a0b"><enum>(ii)</enum><header>Written
statement</header><text>In the event of a petition under clause (i), the Court
of Appeals shall immediately provide for the record a written statement of each
reason for its decision.</text>
</clause><clause id="IDe23f3bc1b734422a828468a2879aec15"><enum>(iii)</enum><header>Expedition</header><text>The
Supreme Court shall consider any petition under this subparagraph on an
expedited basis.</text>
</clause><clause id="IDb704f26d48664e74b4c0ab6d6fdb3863"><enum>(iv)</enum><header>Scope of
review</header><text>Review by the Supreme Court under this subparagraph shall
be limited to whether the determination of the Secretary that the covered
financial company is in default or in danger of default is supported by
substantial evidence.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID9fa9f8057e1741dda6a6e5bc4fa3a316"><enum>(c)</enum><header>Establishment
and transmittal of rules and procedures</header>
<paragraph id="IDb2c1878c24d246238ab835a62acbf85e"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the date of enactment of
this Act, the Panel shall establish such rules and procedures as may be
necessary to ensure the orderly conduct of proceedings, including rules and
procedures to ensure that the 24-hour deadline is met and that the Secretary
shall have an ongoing opportunity to amend and refile petitions under
subsection (b)(1). The rules and procedures shall include provisions for the
appointment of judges to the Panel, such that the composition of the Panel is
established in advance of the filing of a petition under subsection (b).</text>
</paragraph><paragraph id="IDb31f9e8281af465182ccc69f3b7d6885"><enum>(2)</enum><header>Publication of
rules</header><text>The rules and procedures established under paragraph (1),
and any modifications of such rules and procedures, shall be recorded and shall
be transmitted to—</text>
<subparagraph id="ID4b3fb3c842cb49ae8997483ed7c24047"><enum>(A)</enum><text>each judge of the
Panel;</text>
</subparagraph><subparagraph id="IDe0cb875dea6b4035b0fc6bb73a329d59"><enum>(B)</enum><text>the Chief Judge
of the United States Bankruptcy Court for the District of Delaware;</text>
</subparagraph><subparagraph id="ID71d7229911944ea6abdddb391cec0624"><enum>(C)</enum><text>the Committee on
the Judiciary of the Senate;</text>
</subparagraph><subparagraph id="IDf68fd531ddc04992997a5ded3b43c6b8"><enum>(D)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate;</text>
</subparagraph><subparagraph id="IDce742c68d6fd4d9895105008b833c7e6"><enum>(E)</enum><text>the Committee on
the Judiciary of the House of Representatives; and</text>
</subparagraph><subparagraph id="ID29629c01ef9d4d578a318a034bc25f19"><enum>(F)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph></subsection><subsection id="IDd3ab19ec8c4c4d84be4acb7819b88fa1"><enum>(d)</enum><header>Provisions
applicable to financial companies</header>
<paragraph id="IDa4ea6e0a09eb4b2d996d3ac8b8016177"><enum>(1)</enum><header>Bankruptcy
code</header><text>Except as provided in this subsection, the provisions of the
Bankruptcy Code and rules issued thereunder, and not the provisions of this
title, shall apply to financial companies that are not covered financial
companies for which the Corporation has been appointed as receiver.</text>
</paragraph><paragraph id="ID8083c516aa2c4c67a9a9f2cdc7e64916"><enum>(2)</enum><header>This
title</header><text>The provisions of this title shall exclusively apply to and
govern all matters relating to covered financial companies for which the
Corporation is appointed as receiver, and no provisions of the Bankruptcy Code
or the rules issued thereunder shall apply in such cases.</text>
</paragraph></subsection><subsection id="ID1bdf136e1739400aa1d1eeb11a85806a"><enum>(e)</enum><header>Study of
bankruptcy and orderly liquidation process for financial companies</header>
<paragraph id="ID1a77a48f937e4dc6bf3eda35c77cd73a"><enum>(1)</enum><header>Study</header>
<subparagraph id="ID7ea152ba8a294badb3d79cc83c80da98"><enum>(A)</enum><header>In
general</header><text>The Administrative Office of the United States Courts and
the Comptroller General of the United States shall each monitor the activities
of the Panel, and each such Office shall conduct separate studies regarding the
bankruptcy and orderly liquidation process for financial companies under the
Bankruptcy Code.</text>
</subparagraph><subparagraph id="IDaed59ebe184e461bad0767a5497cb0b5"><enum>(B)</enum><header>Issues to be
studied</header><text>In conducting the study under subparagraph (A), the
Administrative Office of the United States Courts and the Comptroller General
of the United States each shall evaluate—</text>
<clause id="IDe5b797b5a91a421580821e5b846fd2dd"><enum>(i)</enum><text>the
effectiveness of chapter 7 or chapter 11 of the Bankruptcy Code in facilitating
the orderly liquidation or reorganization of financial companies;</text>
</clause><clause id="ID64e769adc5de46b886774c0e7cb245d2"><enum>(ii)</enum><text>ways
to maximize the efficiency and effectiveness of the Panel; and</text>
</clause><clause id="ID5b4d305f1bb04001815270be6dda45cb"><enum>(iii)</enum><text>ways
to make the orderly liquidation process under the Bankruptcy Code for financial
companies more effective.</text>
</clause></subparagraph></paragraph><paragraph id="IDa30c634671b048df83f4126c69841883"><enum>(2)</enum><header>Reports</header><text>Not
later than 1 year after the date of enactment of this Act, in each successive
year until the third year, and every fifth year after that date of enactment,
the Administrative Office of the United States Courts and the Comptroller
General of the United States shall submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on the Judiciary of the Senate and the
Committee on Financial Services and the Committee on the Judiciary of the House
of Representatives separate reports summarizing the results of the studies
conducted under paragraph (1).</text>
</paragraph></subsection><subsection id="ID914c4311f99745278efa8d541f28d2c2"><enum>(f)</enum><header>Study of
international coordination relating to bankruptcy process for financial
companies</header>
<paragraph id="IDa593290668104ba4b3e190c199283044"><enum>(1)</enum><header>Study</header>
<subparagraph id="ID2a9b82044d4b4174bb6cefae0449db77"><enum>(A)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study regarding international coordination relating to the orderly
liquidation of financial companies under the Bankruptcy Code.</text>
</subparagraph><subparagraph id="IDefd4582bdf3944c4a1fe7f3eabbbaab8"><enum>(B)</enum><header>Issues to be
studied</header><text>In conducting the study under subparagraph (A), the
Comptroller General of the United States shall evaluate, with respect to the
bankruptcy process for financial companies—</text>
<clause id="ID6900447687bb4e4eaa81e82a1eeee8a0"><enum>(i)</enum><text>the
extent to which international coordination currently exists;</text>
</clause><clause id="ID653ee5bd65ca4a75a5697669504da1cb"><enum>(ii)</enum><text>current
mechanisms and structures for facilitating international cooperation;</text>
</clause><clause id="ID984cef67175a4c8e8d00f805fc7960f0"><enum>(iii)</enum><text>barriers to
effective international coordination; and</text>
</clause><clause id="IDd832d08d80b346d0b0395b8d8a2299ad"><enum>(iv)</enum><text>ways
to increase and make more effective international coordination.</text>
</clause></subparagraph></paragraph><paragraph id="ID53f328ce56e54ece87591a87fb7d74bb"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General of the United States shall submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on the Judiciary of the Senate and the
Committee on Financial Services and the Committee on the Judiciary of the House
of Representatives and the Secretary a report summarizing the results of the
study conducted under paragraph (1).</text>
</paragraph></subsection></section><section id="ID34f378e5325b46d39f3f44d726f79ee0"><enum>203.</enum><header>Systemic risk
determination</header>
<subsection id="IDefc72a32ee7d4d61a105736e8eedeeb8"><enum>(a)</enum><header>Written
recommendation and determination</header>
<paragraph id="IDfb4d48e829df4b52b7b4e8d145033e15"><enum>(1)</enum><header>Vote
required</header>
<subparagraph id="ID6303396d045a4f28959e0b0222d73f45"><enum>(A)</enum><header>In
general</header><text>On their own initiative, or at the request of the
Secretary, the Corporation and the Board of Governors shall consider whether to
make a written recommendation described in paragraph (2) with respect to
whether the Secretary should appoint the Corporation as receiver for a
financial company. Such recommendation shall be made upon a vote of not fewer
than <fraction>2/3</fraction> of the members of the Board of Governors then
serving and <fraction>2/3</fraction> of the members of the board of directors
of the Corporation then serving.</text>
</subparagraph><subparagraph id="IDb8a9ea4938ef45b69b11af9f130241a7"><enum>(B)</enum><header>Cases involving
covered brokers or dealers</header><text>In the case of a covered broker or
dealer, or in which the largest United States subsidiary (as measured by total
assets as of the end of the previous calendar quarter) of a financial company
is a covered broker or dealer, the Commission and the Board of Governors, at
the request of the Secretary, or on their own initiative, shall consider
whether to make the written recommendation described in paragraph (2) with
respect to the financial company. Subject to the requirements in paragraph (2),
such recommendation shall be made upon a vote of not fewer than
<fraction>2/3</fraction> of the members of the Board of Governors then serving
and the members of the Commission then serving, and in consultation with the
Corporation.</text>
</subparagraph></paragraph><paragraph id="ID2c614701e1c34faa803d98499533ec10"><enum>(2)</enum><header>Recommendation
required</header><text>Any written recommendation pursuant to paragraph (1)
shall contain—</text>
<subparagraph id="IDef1008dfe92a43f498c158beb4133ec9"><enum>(A)</enum><text>an evaluation of
whether the financial company is in default or in danger of default;</text>
</subparagraph><subparagraph id="IDa8e408bf49874613944c21588d1394df"><enum>(B)</enum><text>a
description of the effect that the default of the financial company would have
on financial stability in the United States;</text>
</subparagraph><subparagraph id="IDb32b7ca9d9cf400884d3435a52c3ca56"><enum>(C)</enum><text>a
recommendation regarding the nature and the extent of actions to be taken under
this title regarding the financial company;</text>
</subparagraph><subparagraph id="ID82988fada28b4411b5cb1cfc5fcab8a5"><enum>(D)</enum><text>an evaluation of
the likelihood of a private sector alternative to prevent the default of the
financial company;</text>
</subparagraph><subparagraph id="ID95f2f09b53584bc09edc14ab05f3579b"><enum>(E)</enum><text>an evaluation of
why a case under the Bankruptcy Code is not appropriate for the financial
company; and</text>
</subparagraph><subparagraph id="ID4103f60f08224f198e415beeda2efb0f"><enum>(F)</enum><text>an evaluation of
the effects on creditors, counterparties, and shareholders of the financial
company and other market participants.</text>
</subparagraph></paragraph></subsection><subsection id="ID0fc1b6ccda0a43e0a7ae6739262b7180"><enum>(b)</enum><header>Determination
by the Secretary</header><text>Notwithstanding any other provision of Federal
or State law, the Secretary shall take action in accordance with section
202(b)(1)(A), if, upon the written recommendation under subsection (a), the
Secretary (in consultation with the President) determines that—</text>
<paragraph id="IDcfeb46683c0f48e980b56260ac823ef2"><enum>(1)</enum><text>the
financial company is in default or in danger of default;</text>
</paragraph><paragraph id="ID35d1d0d5386e41ac833795f10cc5f471"><enum>(2)</enum><text>the
failure of the financial company and its resolution under otherwise applicable
Federal or State law would have serious adverse effects on financial stability
in the United States;</text>
</paragraph><paragraph id="IDee1beedb61274dde809298b95c18377b"><enum>(3)</enum><text>no
viable private sector alternative is available to prevent the default of the
financial company;</text>
</paragraph><paragraph id="ID104dfd460d69456a87dbfab0f399e5c4"><enum>(4)</enum><text>any
effect on the claims or interests of creditors, counterparties, and
shareholders of the financial company and other market participants as a result
of actions to be taken under this title is appropriate, given the impact that
any action taken under this title would have on financial stability in the
United States;</text>
</paragraph><paragraph id="IDee9e6ab9ddb8450c98a7fba5f70badde"><enum>(5)</enum><text>any
action under section 204 would avoid or mitigate such adverse effects, taking
into consideration the effectiveness of the action in mitigating potential
adverse effects on the financial system, the cost to the general fund of the
Treasury, and the potential to increase excessive risk taking on the part of
creditors, counterparties, and shareholders in the financial company;
and</text>
</paragraph><paragraph commented="no" id="IDb7b8edb8cfd24c698e7fe4f6b2e24db4"><enum>(6)</enum><text>a Federal
regulatory agency has ordered the financial company to convert all of its
convertible debt instruments that are subject to the regulatory order.</text>
</paragraph></subsection><subsection id="IDb1795765f6f34c269fbbc7e0fbee2a07"><enum>(c)</enum><header>Documentation
and review</header>
<paragraph id="IDdf884bf7e0a94958a901913953c7b179"><enum>(1)</enum><header>In
general</header><text>The Secretary shall—</text>
<subparagraph id="ID623dc81f786444b2a021e4caf918ed5d"><enum>(A)</enum><text>document any
determination under subsection (b);</text>
</subparagraph><subparagraph id="IDe3b68c2e121648f884d1e50538f5889e"><enum>(B)</enum><text>retain the
documentation for review under paragraph (2); and</text>
</subparagraph><subparagraph id="IDeca02977e10448f1ab99eef6e980156c"><enum>(C)</enum><text>notify the
covered financial company and the Corporation of such determination.</text>
</subparagraph></paragraph><paragraph id="IDbd5cf04f2dba439198b5720ff7324d45"><enum>(2)</enum><header>Report to
congress</header><text>Not later than 24 hours after the date of appointment of
the Corporation as receiver for a covered financial company, the Secretary
shall provide written notice of the recommendations and determinations reached
in accordance with subsections (a) and (b) to the Majority Leader and the
Minority Leader of the Senate and the Speaker and the Minority Leader of the
House of Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Committee on Financial Services of the House of
Representatives, which shall consist of a summary of the basis for the
determination, including, to the extent available at the time of the
determination—</text>
<subparagraph id="IDaa5454359098418e8f51d4caaf7b08fa"><enum>(A)</enum><text>the size and
financial condition of the covered financial company;</text>
</subparagraph><subparagraph id="ID91bda9e24e0447a68afc46a377abbf1c"><enum>(B)</enum><text>the sources of
capital and credit support that were available to the covered financial
company;</text>
</subparagraph><subparagraph id="ID2159f0adeeff45f5b07110e8daf568e9"><enum>(C)</enum><text>the operations of
the covered financial company that could have had a significant impact on
financial stability, markets, or both;</text>
</subparagraph><subparagraph id="ID0ab42c79783e4359857bf27bfa65e11d"><enum>(D)</enum><text>identification of
the banks and financial companies which may be able to provide the services
offered by the covered financial company;</text>
</subparagraph><subparagraph id="IDc2e945976cc746dbadca61ba66906f37"><enum>(E)</enum><text>any potential
international ramifications of resolution of the covered financial company
under other applicable insolvency law;</text>
</subparagraph><subparagraph id="ID16a67204daa74db1848a4786c8738b01"><enum>(F)</enum><text>an estimate of
the potential effect of the resolution of the covered financial company under
other applicable insolvency law on the financial stability of the United
States;</text>
</subparagraph><subparagraph id="ID62d60b85fae84b919bd6f68eeee89ad4"><enum>(G)</enum><text>the potential
effect of the appointment of a receiver by the Secretary on consumers;</text>
</subparagraph><subparagraph id="IDa9941bcf87974f9fad095dbee7233916"><enum>(H)</enum><text>the potential
effect of the appointment of a receiver by the Secretary on the financial
system, financial markets, and banks and other financial companies; and</text>
</subparagraph><subparagraph id="ID693d29c2e1be4d13acb4df09e91bf1ab"><enum>(I)</enum><text>whether
resolution of the covered financial company under other applicable insolvency
law would cause banks or other financial companies to experience severe
liquidity distress.</text>
</subparagraph></paragraph><paragraph id="ID1fc3163911784cd3aa672aed55de06b9"><enum>(3)</enum><header>Reports to
Congress and the public</header>
<subparagraph id="id9F905C89D895412E8244A1981F518CA7"><enum>(A)</enum><header>In
general</header><text>Not later than 60 days after the date of appointment of
the Corporation as receiver for a covered financial company, the Corporation,
as receiver, shall—</text>
<clause id="id6CED6B83E74740B18DC5F7D281E92767"><enum>(i)</enum><text>prepare
reports setting forth information on the assets and liabilities of the covered
financial company as of the date of the appointment;</text>
</clause><clause id="idAC43009300D84EEDBC5D4457C9E24C5B"><enum>(ii)</enum><text>file
such reports with the Committee on Banking, Housing, and Urban Affairs of the
Senate, and the Committee on Financial Services of the House of
Representatives; and</text>
</clause><clause id="idCBFEBD714AEF45E29EA95B2B83AD405F"><enum>(iii)</enum><text>publish such
reports on an online website maintained by the Corporation.</text>
</clause></subparagraph><subparagraph id="id7A44D58DB77343EA97E4802A2C988055"><enum>(B)</enum><header>Amendments</header><text>The
Corporation shall, on a timely basis, not less frequently than quarterly, amend
or revise and resubmit the reports prepared under this paragraph, as
necessary.</text>
</subparagraph></paragraph><paragraph id="ID60ff15fe4ea1440abd7e467025bf44b4"><enum>(4)</enum><header>Default or in
danger of default</header><text>For purposes of this title, a financial company
shall be considered to be in default or in danger of default if, as determined
in accordance with subsection (b)—</text>
<subparagraph id="ID5f475869d242489f994dcad9c8977570"><enum>(A)</enum><text>a
case has been, or likely will promptly be, commenced with respect to the
financial company under the Bankruptcy Code;</text>
</subparagraph><subparagraph id="IDfd5389f6cbb44a9892d49971b419e0b4"><enum>(B)</enum><text>the financial
company has incurred, or is likely to incur, losses that will deplete all or
substantially all of its capital, and there is no reasonable prospect for the
company to avoid such depletion;</text>
</subparagraph><subparagraph id="ID2c610d06ac75479e8ebc32dd27fe6613"><enum>(C)</enum><text>the assets of the
financial company are, or are likely to be, less than its obligations to
creditors and others; or</text>
</subparagraph><subparagraph id="IDd432bf5c9b0040e59741618b45d7c654"><enum>(D)</enum><text>the financial
company is, or is likely to be, unable to pay its obligations (other than those
subject to a bona fide dispute) in the normal course of business.</text>
</subparagraph></paragraph><paragraph id="ID37c323f6ffcc408aa475d03da3bd3710"><enum>(5)</enum><header>GAO
review</header><text>The Comptroller General of the United States shall review
and report to Congress on any determination under subsection (b), that results
in the appointment of the Corporation as receiver, including—</text>
<subparagraph id="ID270f8d1c81f74fd4aeb0de65b8f44a7b"><enum>(A)</enum><text>the basis for the
determination;</text>
</subparagraph><subparagraph id="ID4a232cb76adb4cc1a3e3f7d5a1fba978"><enum>(B)</enum><text>the purpose for
which any action was taken pursuant thereto;</text>
</subparagraph><subparagraph id="ID808867b1e02f4c0db0d807b4d0a4b4bc"><enum>(C)</enum><text>the likely effect
of the determination and such action on the incentives and conduct of financial
companies and their creditors, counterparties, and shareholders; and</text>
</subparagraph><subparagraph id="IDa88198485d744fac9dcdcec37a8fddcc"><enum>(D)</enum><text>the likely
disruptive effect of the determination and such action on the reasonable
expectations of creditors, counterparties, and shareholders, taking into
account the impact any action under this title would have on financial
stability in the United States, including whether the rights of such parties
will be disrupted.</text>
</subparagraph></paragraph></subsection><subsection id="ID46f7ff40f569420d92d86e1d9f29159a"><enum>(d)</enum><header>Corporation
policies and procedures</header><text>As soon as is practicable after the date
of enactment of this Act, the Corporation shall establish policies and
procedures that are acceptable to the Secretary governing the use of funds
available to the Corporation to carry out this title, including the terms and
conditions for the provision and use of funds under sections 204(d),
210(h)(2)(G)(iv), and 210(h)(9).</text>
</subsection><subsection id="ID85cf9b92b5ef42cda363963246667bbb"><enum>(e)</enum><header>Treatment of
insurance companies and insurance company subsidiaries</header>
<paragraph id="IDb3ffc522b32747ccbe9c287c00be3b7a"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsection (b), if an insurance company
is a covered financial company or a subsidiary or affiliate of a covered
financial company, the liquidation or rehabilitation of such insurance company,
and any subsidiary or affiliate of such company that is not excepted under
paragraph (2), shall be conducted as provided under such State law.</text>
</paragraph><paragraph id="ID12a942227d034117b2ac64fab8575fe6"><enum>(2)</enum><header>Exception for
subsidiaries and affiliates</header><text>The requirement of paragraph (1)
shall not apply with respect to any subsidiary or affiliate of an insurance
company that is not itself an insurance company.</text>
</paragraph><paragraph id="IDe04c84dcd9924b1b82f237ad1ac4a539"><enum>(3)</enum><header>Backup
authority</header><text>Notwithstanding paragraph (1), with respect to a
covered financial company described in paragraph (1), if, after the end of the
60-day period beginning on the date on which a determination is made under
section 202(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 orderly liquidation under the laws and requirements of
the State, the Corporation shall have the authority to stand in the place of
the appropriate regulatory agency and file the appropriate judicial action in
the appropriate State court to place such company into orderly liquidation
under the laws and requirements of the State.</text>
</paragraph></subsection></section><section id="ID1ec759fbce914228826879e435b0fcc8"><enum>204.</enum><header>Orderly
liquidation</header>
<subsection id="IDea73d34e5d6c4e1f8d72e09319d9afe2"><enum>(a)</enum><header>Purpose of
orderly liquidation authority</header><text>It is the purpose of this title to
provide the necessary authority to liquidate failing financial companies that
pose a significant risk to the financial stability of the United States in a
manner that mitigates such risk and minimizes moral hazard. The authority
provided in this title shall be exercised in the manner that best fulfills such
purpose, with the strong presumption that—</text>
<paragraph id="idEE281FED2C5B4003AFC12468D883DADE"><enum>(1)</enum><text>creditors and
shareholders will bear the losses of the financial company;</text>
</paragraph><paragraph id="idB056FC372A3249CA81AD292D60DFF339"><enum>(2)</enum><text>management
responsible for the condition of the financial company will not be retained;
and</text>
</paragraph><paragraph id="idC629532AE4954B35AD076A84E4AAD30C"><enum>(3)</enum><text>the
Corporation and other appropriate agencies will take all steps necessary and
appropriate to assure that all parties, including management and third parties,
having responsibility for the condition of the financial company bear losses
consistent with their responsibility, including actions for damages,
restitution, and recoupment of compensation and other gains not compatible with
such responsibility.</text>
</paragraph></subsection><subsection id="IDdb3d21c18ff44ec2b23eb8b7188e5987"><enum>(b)</enum><header>Corporation as
receiver</header><text>Upon the appointment of the Corporation under section
202, the Corporation shall act as the receiver for the covered financial
company, with all of the rights and obligations set forth in this title.</text>
</subsection><subsection id="ID9d67abbc01874e0797d09b559a2d2d85"><enum>(c)</enum><header>Consultation</header><text>The
Corporation, as receiver—</text>
<paragraph id="ID23141ef88bc24988a8e303316017899d"><enum>(1)</enum><text>shall consult
with the primary financial regulatory agency or agencies of the covered
financial company and its covered subsidiaries for purposes of ensuring an
orderly liquidation of the covered financial company;</text>
</paragraph><paragraph id="IDe4f670f22c9a4d63ae392c21e5663cfc"><enum>(2)</enum><text>may
consult with, or under subsection (a)(1)(B)(v) or (a)(1)(L) of section 210,
acquire the services of, any outside experts, as appropriate to inform and aid
the Corporation in the orderly liquidation process;</text>
</paragraph><paragraph id="ID18f7b476d42f47358b2a53e4c89e53af"><enum>(3)</enum><text>shall consult
with the primary financial regulatory agency or agencies of any subsidiaries of
the covered financial company that are not covered subsidiaries, and coordinate
with such regulators regarding the treatment of such solvent subsidiaries and
the separate resolution of any such insolvent subsidiaries under other
governmental authority, as appropriate; and</text>
</paragraph><paragraph id="IDa952fc96fda04c8d9b1927d622984708"><enum>(4)</enum><text>shall consult
with the Commission and the Securities Investor Protection Corporation in the
case of any covered financial company for which the Corporation has been
appointed as receiver that is a broker or dealer registered with the Commission
under section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b))
and is a member of the Securities Investor Protection Corporation, for the
purpose of determining whether to transfer to a bridge financial company
organized by the Corporation as receiver, without consent of any customer,
customer accounts of the covered financial company.</text>
</paragraph></subsection><subsection id="ID7ba1440496ec45d0b5f4453e9438691b"><enum>(d)</enum><header>Funding for
orderly liquidation</header><text>Upon its appointment as receiver for a
covered financial company, and thereafter as the Corporation may, in its
discretion, determine to be necessary or appropriate, the Corporation may make
available to the receivership, subject to the conditions set forth in section
206 and subject to the plan described in section 210(n)(13), funds for the
orderly liquidation of the covered financial company.</text>
</subsection></section><section id="ID1923e41b9bb44567a5579c6085148b4e"><enum>205.</enum><header>Orderly
liquidation of covered brokers and dealers</header>
<subsection id="IDd875868b85fa43f887842ce668451a6a"><enum>(a)</enum><header>Appointment of
SIPC as trustee for protection of customer securities and
property</header><text>Upon the appointment of the Corporation as receiver for
any covered broker or dealer, the Corporation shall appoint, without any need
for court approval, the Securities Investor Protection Corporation to act as
trustee for liquidation under the Securities Investor Protection Act of 1970
(15 U.S.C. 78aaa et seq.) of the covered broker or dealer.</text>
</subsection><subsection id="IDb314673870f84fd58c44ae98a0b004f5"><enum>(b)</enum><header>Powers and
duties of SIPC</header>
<paragraph id="ID794a6d6e46ca4c6093bcec3719eab105"><enum>(1)</enum><header>In
general</header><text>Except as provided in this section, upon its appointment
as trustee for the liquidation of a covered broker or dealer, SIPC shall have
all of the powers and duties provided by the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa et seq.), including, without limitation, all rights of
action against third parties, but shall have no powers or duties with respect
to assets and liabilities transferred by the Corporation from the covered
broker or dealer to any bridge financial company established in accordance with
this title.</text>
</paragraph><paragraph id="ID111d87603ec546469ba5ae30f96b135b"><enum>(2)</enum><header>Limitation of
powers</header><text>The exercise by SIPC of powers and functions as trustee
under subsection (a) shall not impair or impede the exercise of the powers and
duties of the Corporation with regard to—</text>
<subparagraph id="ID0387537b627748b9b9207ed560b40247"><enum>(A)</enum><text>any action,
except as otherwise provided in this title—</text>
<clause id="idA4075C2EA54042EB8056CE1FC5B6911C"><enum>(i)</enum><text>to make
funds available under section 204(d);</text>
</clause><clause id="id9B10AF2550FE454286C671A6889AC156"><enum>(ii)</enum><text>to
organize, establish, operate, or terminate any bridge financial company;</text>
</clause><clause id="id3E326E209F8C4081992584A27E1ADEB9"><enum>(iii)</enum><text>to
transfer assets and liabilities;</text>
</clause><clause id="idC7434C39A18E442EB67F3F16BAD2A25E"><enum>(iv)</enum><text>to
enforce or repudiate contracts; or</text>
</clause><clause id="idD529CA070D3840238197FA28C36E2D19"><enum>(v)</enum><text>to take
any other action relating to such bridge financial company under section 210;
or</text>
</clause></subparagraph><subparagraph id="ID5b75b26dfcfe4fbca87d853044a1286b"><enum>(B)</enum><text>determining
claims under subsection (d).</text>
</subparagraph></paragraph><paragraph id="ID19ddc5a0418a46119e3d984faf78155c"><enum>(3)</enum><header>Qualified
financial contracts</header><text>Notwithstanding any provision of the
Securities Investor Protection Act of 1970 to the contrary (including section
5(b)(2)(C) of that Act (15 U.S.C. 78eee(b)(2)(C))), the rights and obligations
of any party to a qualified financial contract (as that term is defined in
section 210(c)(8)) to which a covered broker or dealer described in subsection
(a) is a party shall be governed exclusively by section 210, including the
limitations and restrictions contained in section 210(c)(10)(B).</text>
</paragraph></subsection><subsection id="ID218fd40fcade4f78bdab119dd725ecbf"><enum>(c)</enum><header>Limitation on
court action</header><text>Except as otherwise provided in this title, no court
may take any action, including any action pursuant to the Securities Investor
Protection Act of 1970 or the Bankruptcy Code, to restrain or affect the
exercise of powers or functions of the Corporation as receiver for a covered
broker or dealer and any claims against the Corporation as such receiver shall
be determined in accordance with subsection (e) and such claims shall be
limited to money damages.</text>
</subsection><subsection id="ID35c68aa70e134b89ac7c9ee0159436dd"><enum>(d)</enum><header>Actions by
corporation as receiver</header>
<paragraph id="id84E8386B5DE542B1AE31AE2D023AD9DC"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this title, no
action taken by the Corporation, as receiver with respect to a covered broker
or dealer, shall—</text>
<subparagraph id="idC3E1E3EAF5D2481EA4CC5C942AE7AD9F"><enum>(A)</enum><text>adversely affect
the rights of a customer to customer property or customer name
securities;</text>
</subparagraph><subparagraph id="id0119841825FE4978B985A39D98DF3F22"><enum>(B)</enum><text>diminish the
amount or timely payment of net equity claims of customers; or</text>
</subparagraph><subparagraph id="id819F826DA75C4B6A88A9209642402281"><enum>(C)</enum><text>otherwise impair
the recoveries provided to a customer under the Securities Investor Protection
Act of 1970 (15 U.S.C. 78aaa et seq.).</text>
</subparagraph></paragraph><paragraph id="idE214DEC18F084AC9971BE2B0025116F7"><enum>(2)</enum><header>net
proceeds</header><text>The net proceeds from any transfer, sale, or disposition
of assets by the Corporation as receiver for the covered broker or dealer shall
be for the benefit of the estate of the covered broker or dealer, as provided
in this title.</text>
</paragraph></subsection><subsection id="ID4ed6eac3acdb46c4a9232163f91af112"><enum>(e)</enum><header>Claims against
the corporation as receiver</header><text>Any claim against the Corporation as
receiver for a covered broker or dealer for assets transferred to a bridge
financial company established with respect to such covered broker or
dealer—</text>
<paragraph id="IDe3cbf904e46a40ab87ce5c4b946425d5"><enum>(1)</enum><text>shall be
determined in accordance with section 210(a)(2); and</text>
</paragraph><paragraph id="ID439a462dbc5d47ef9da0007531c77578"><enum>(2)</enum><text>may
be reviewed by the appropriate district or territorial court of the United
States in accordance with section 210(a)(5).</text>
</paragraph></subsection><subsection id="IDec5add68250e4f5a8120c97879bae3b4"><enum>(f)</enum><header>Satisfaction of
customer claims</header>
<paragraph id="id1E49C271505D47BB99BCD9A7EB68173D"><enum>(1)</enum><header>Obligations to
customers</header><text>Notwithstanding any other provision of this title, all
obligations of a covered broker or dealer or of any bridge financial company
established with respect to such covered broker or dealer to a customer
relating to, or net equity claims based upon, customer property shall be
promptly discharged by the delivery of securities or the making of payments to
or for the account of such customer, in a manner and in an amount at least as
beneficial to the customer as would have been the case had the covered broker
or dealer been subject to a proceeding under the Securities Investor Protection
Act of 1970 (15 U.S.C. 78aaa et seq.) without the appointment of the
Corporation as receiver, and with a filing date as of the date on which the
Corporation is appointed as receiver.</text>
</paragraph><paragraph id="idFBF260C2CF994F0283ECDD60972DAF54"><enum>(2)</enum><header>Satisfaction of
claims by SIPC</header><text>SIPC, as trustee for a covered broker or dealer,
shall satisfy customer claims in the manner and amount provided under the
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), as if the
appointment of the Corporation as receiver had not occurred, and with a filing
date as of the date on which the Corporation is appointed as receiver. The
Corporation shall satisfy customer claims, to the extent that a customer would
have received more securities or cash with respect to the allocation of
customer property had the covered financial company been subject to a
proceeding under the Securities Investor Protection Act (15 U.S.C. 78aaa et
seq.) without the appointment of the Corporation as receiver, and with a filing
date as of the date on which the Corporation is appointed as receiver.</text>
</paragraph></subsection><subsection commented="no" id="IDcb6a45995161427c9f4c02821ed4eb98"><enum>(g)</enum><header>Priorities</header>
<paragraph id="IDef114c1d881b43e79f9cbf57c3c93b0c"><enum>(1)</enum><header>Customer
property</header><text>As trustee for a covered broker or dealer, SIPC shall
allocate customer property and deliver customer name securities in accordance
with section 8(c) of the Securities Investor Protection Act of 1970 (15 U.S.C.
78fff–2(c)).</text>
</paragraph><paragraph id="ID2048e9663b8e47009bc7dc17e1a44113"><enum>(2)</enum><header>Other
claims</header><text>All claims other than those described in paragraph (1)
(including any unpaid claim by a customer for the allowed net equity claim of
such customer from customer property) shall be paid in accordance with the
priorities in section 210(b).</text>
</paragraph></subsection><subsection id="ID024fad40eb224112ac40df5475408ba5"><enum>(h)</enum><header>Rulemaking</header><text>The
Commission and the Corporation, after consultation with SIPC, shall jointly
issue rules to implement this section.</text>
</subsection></section><section id="id1DE08EB9F6284321A6E7A7CF374E7A6A"><enum>206.</enum><header>Mandatory
terms and conditions for all orderly liquidation actions</header><text display-inline="no-display-inline">In taking action under this title, the
Corporation shall—</text>
<paragraph id="IDdcf4b6dca86b48d9a91355931f6c4a3c"><enum>(1)</enum><text>determine that
such action is necessary for purposes of the financial stability of the United
States, and not for the purpose of preserving the covered financial
company;</text>
</paragraph><paragraph id="IDf1350d2ba5e442cf81601736d12a5302"><enum>(2)</enum><text>ensure that the
shareholders of a covered financial company do not receive payment until after
all other claims and the Fund are fully paid;</text>
</paragraph><paragraph id="IDc46d3ece9cab4f729773409a0fbf63bb"><enum>(3)</enum><text>ensure that
unsecured creditors bear losses in accordance with the priority of claim
provisions in section 210;</text>
</paragraph><paragraph id="IDb8692ce826ed4b1989cb9addeae795fc"><enum>(4)</enum><text>ensure that
management responsible for the failed condition of the covered financial
company is removed (if such management has not already been removed at the time
at which the Corporation is appointed receiver); and</text>
</paragraph><paragraph id="id834773F7694E4B768BD26F40C123BFBF"><enum>(5)</enum><text>not
take an equity interest in or become a shareholder of any covered financial
company or any covered subsidiary.</text>
</paragraph></section><section id="ID4e8f1291b7074fecb50329bbb6b56688"><enum>207.</enum><header>Directors not
liable for acquiescing in appointment of receiver</header><text display-inline="no-display-inline">The members of the board of directors (or
body performing similar functions) of a covered financial company shall not be
liable to the shareholders or creditors thereof for acquiescing in or
consenting in good faith to the appointment of the Corporation as receiver for
the covered financial company under section 203.</text>
</section><section id="IDcf5c1097f6874b458ddf67e92a48957b"><enum>208.</enum><header>Dismissal and
exclusion of other actions</header>
<subsection id="idF7105B63D9184E858907F4D354CD81BB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Effective as of the
date of the appointment of the Corporation as receiver for the covered
financial company under section 202 or the appointment of SIPC as trustee for a
covered broker or dealer under section 205, as applicable, any case or
proceeding commenced with respect to the covered financial company under the
Bankruptcy Code or the Securities Investor Protection Act of 1970 shall be
dismissed, upon notice to the Bankruptcy Court (with respect to a case
commenced under the Bankruptcy Code), and upon notice to SIPC (with respect to
a covered broker or dealer) and no such case or proceeding may be commenced
with respect to a covered financial company at any time while the orderly
liquidation is pending.</text>
</subsection><subsection id="id6CE0D1F3E0D947BDB0A1E817B3F4986E"><enum>(b)</enum><header>Revesting of
assets</header><text display-inline="yes-display-inline">Effective as of the
date of appointment of the Corporation as receiver, the assets of a covered
financial company shall, to the extent they have vested in any entity other
than the covered financial company as a result of any case or proceeding
commenced with respect to the covered financial company under the Bankruptcy
Code, the Securities Investor Protection Act of 1970, or any similar provision
of State liquidation or insolvency law applicable to the covered financial
company, revest in the covered financial company.</text>
</subsection><subsection id="IDb7f1728ef8a44d28aa35ba5891916f18"><enum>(c)</enum><header>Limitation</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b),
any order entered or other relief granted by a bankruptcy court prior to the
date of appointment of the Corporation as receiver shall continue with the same
validity as if an orderly liquidation had not been commenced.</text>
</subsection></section><section id="IDe0a8335a48894df58a47c517d97a87ec"><enum>209.</enum><header>Rulemaking;
non-conflicting law</header><text display-inline="no-display-inline">The
Corporation shall, in consultation with the Council, prescribe such rules or
regulations as the Corporation considers necessary or appropriate to implement
this title, including rules and regulations with respect to the rights,
interests, and priorities of creditors, counterparties, security entitlement
holders, or other persons with respect to any covered financial company or any
assets or other property of or held by such covered financial company. To the
extent possible, the Corporation shall seek to harmonize applicable rules and
regulations promulgated under this section with the insolvency laws that would
otherwise apply to a covered financial company.</text>
</section><section id="IDa9786f7505504656920acd368ddda49c"><enum>210.</enum><header>Powers and
duties of the corporation</header>
<subsection id="ID580052496fa94776910515c4cbc19ebc"><enum>(a)</enum><header>Powers and
authorities</header>
<paragraph id="ID9607c0a5986143aab3ae922ee4c3e4a9"><enum>(1)</enum><header>General
powers</header>
<subparagraph id="ID59ed94393763424daef598dbbaa91446"><enum>(A)</enum><header>Successor to
covered financial company</header><text>The Corporation shall, upon appointment
as receiver for a covered financial company under this title, succeed
to—</text>
<clause id="IDe0654f72fb8f4f439ab32032b6bd3f1e"><enum>(i)</enum><text>all
rights, titles, powers, and privileges of the covered financial company and its
assets, and of any stockholder, member, officer, or director of such company;
and</text>
</clause><clause id="IDd353323cf5e442419bb14b3095c11119"><enum>(ii)</enum><text>title
to the books, records, and assets of any previous receiver or other legal
custodian of such covered financial company.</text>
</clause></subparagraph><subparagraph id="IDbcc5166d257a4936817a82beb5e22139"><enum>(B)</enum><header>Operation of
the covered financial company during the period of orderly
liquidation</header><text>The Corporation, as receiver for a covered financial
company, may—</text>
<clause id="ID99efe9689e654a199993c17667a8e9a0"><enum>(i)</enum><text>take
over the assets of and operate the covered financial company with all of the
powers of the members or shareholders, the directors, and the officers of the
covered financial company, and conduct all business of the covered financial
company;</text>
</clause><clause id="ID296bb0e42e4746aba0e64ae4581ce50a"><enum>(ii)</enum><text>collect all
obligations and money owed to the covered financial company;</text>
</clause><clause id="ID7d00dfe164c543a79892ef22fda7c4d7"><enum>(iii)</enum><text>perform all
functions of the covered financial company, in the name of the covered
financial company;</text>
</clause><clause id="ID2cd692a4502641efb87dd0bffdcd13f1"><enum>(iv)</enum><text>manage
the assets and property of the covered financial company, consistent with
maximization of the value of the assets in the context of the orderly
liquidation; and</text>
</clause><clause id="ID408629bce0e24f7f95707db560f024fb"><enum>(v)</enum><text>provide
by contract for assistance in fulfilling any function, activity, action, or
duty of the Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="ID1e180e3dde5245bbbb922790ea2c5073"><enum>(C)</enum><header>Functions of
covered financial company officers, directors, and shareholders</header>
<clause id="ID943f61c471dc477f8facd67ccf8c094c"><enum>(i)</enum><header>In
general</header><text>The Corporation may provide for the exercise of any
function by any member or stockholder, director, or officer of any covered
financial company for which the Corporation has been appointed as receiver
under this title.</text>
</clause><clause id="ID1c9eedbe976e48dea10e0b1ed410de66"><enum>(ii)</enum><header>Presumption</header><text>There
shall be a strong presumption that the Corporation, as receiver for a covered
financial company, will remove management responsible for the failed condition
of the covered financial company.</text>
</clause></subparagraph><subparagraph id="ID67a4b9ab2319465fbfad82333688936f"><enum>(D)</enum><header>Additional
powers as receiver</header><text>The Corporation shall, as receiver for a
covered financial company, and subject to all legally enforceable and perfected
security interests and all legally enforceable security entitlements in respect
of assets held by the covered financial company, liquidate, and wind-up the
affairs of a covered financial company, including taking steps to realize upon
the assets of the covered financial company, in such manner as the Corporation
deems appropriate, including through the sale of assets, the transfer of assets
to a bridge financial company established under subsection (h), or the exercise
of any other rights or privileges granted to the receiver under this
section.</text>
</subparagraph><subparagraph id="ID0301c830d11b4610ad9576d632e5a69f"><enum>(E)</enum><header>Additional
powers with respect to failing subsidiaries of a covered financial
company</header>
<clause id="IDc7850f2217024faab86bee1671976aa6"><enum>(i)</enum><header>In
general</header><text>In any case in which a receiver is appointed for a
covered financial company under section 202, the Corporation may appoint itself
as receiver of any subsidiary (other than an insured depository institution,
any covered broker or dealer, or an insurance company) of the covered financial
company that is organized under Federal law or the laws of any State, if the
Corporation and the Secretary jointly determine that—</text>
<subclause id="ID33399690c936488f9ff6a3e6a6a1a2ab"><enum>(I)</enum><text>the
subsidiary is in default or in danger of default;</text>
</subclause><subclause id="ID7d20222258fc43bdb0dbaf16bd63fe67"><enum>(II)</enum><text>such action
would avoid or mitigate serious adverse effects on the financial stability or
economic conditions of the United States; and</text>
</subclause><subclause id="IDf6330b8afb754139825bafeffc4ff57c"><enum>(III)</enum><text>such action
would facilitate the orderly liquidation of the covered financial
company.</text>
</subclause></clause><clause id="ID2c473089182845d7b46cebfecc2d3990"><enum>(ii)</enum><header>Treatment as
covered financial company</header><text>If the Corporation is appointed as
receiver of a subsidiary of a covered financial company under clause (i), the
subsidiary shall thereafter be considered a covered financial company under
this title, and the Corporation shall thereafter have all the powers and rights
with respect to that subsidiary as it has with respect to a covered financial
company under this title.</text>
</clause></subparagraph><subparagraph id="ID4df1aab81dc34a11b03ec49ecbfde817"><enum>(F)</enum><header>Organization of
bridge companies</header><text>The Corporation, as receiver for a covered
financial company, may organize a bridge financial company under subsection
(h).</text>
</subparagraph><subparagraph id="ID4cecd92c4fda482395ac58c2b9079f9d"><enum>(G)</enum><header>Merger;
transfer of assets and liabilities</header>
<clause id="IDe0011364d94d43228201700561c3233e"><enum>(i)</enum><header>In
general</header><text>Subject to clauses (ii) and (iii), the Corporation, as
receiver for a covered financial company, may—</text>
<subclause id="ID0c79df1353ee4ec3b2119ed573fdd2c8"><enum>(I)</enum><text>merge the covered
financial company with another company; or</text>
</subclause><subclause id="IDb1de05e86de4428a97ecd13ae655607c"><enum>(II)</enum><text>transfer any
asset or liability of the covered financial company (including any assets and
liabilities held by the covered financial company for security entitlement
holders, any customer property, or any assets and liabilities associated with
any trust or custody business) without obtaining any approval, assignment, or
consent with respect to such transfer.</text>
</subclause></clause><clause id="ID057f9bafcaa841fd86b8f72a87048173"><enum>(ii)</enum><header>Federal agency
approval; antitrust review</header><text>With respect to a transaction
described in clause (i)(I) that requires approval by a Federal agency—</text>
<subclause id="ID0e6ccabbf02546e0b7a5e7d2bb113586"><enum>(I)</enum><text>the
transaction may not be consummated before the 5th calendar day after the date
of approval by the Federal agency responsible for such approval;</text>
</subclause><subclause id="ID8a3ebe7d2a09424e83d2437354158759"><enum>(II)</enum><text>if,
in connection with any such approval, a report on competitive factors is
required, the Federal agency responsible for such approval shall promptly
notify the Attorney General of the United States of the proposed transaction,
and the Attorney General shall provide the required report not later than 10
days after the date of the request; and</text>
</subclause><subclause id="ID5e69642e4e124cb7b873e9edb8333a4f"><enum>(III)</enum><text>if
notification under section 7A of the Clayton Act is required with respect to
such transaction, then the required waiting period shall end on the 15th day
after the date on which the Attorney General and the Federal Trade Commission
receive such notification, unless the waiting period is terminated earlier
under subsection (b)(2) of such section 7A, or is extended pursuant to
subsection (e)(2) of such section 7A.</text>
</subclause></clause><clause id="ID17dc90fbb55140c489cdfad37c98078a"><enum>(iii)</enum><header>Setoff</header><text>Subject
to the other provisions of this title, any transferee of assets from a
receiver, including a bridge financial company, shall be subject to such claims
or rights as would prevail over the rights of such transferee in such assets
under applicable noninsolvency law.</text>
</clause></subparagraph><subparagraph id="ID6d7b5aeb2f2643d9a6b9d93ec33c5a2f"><enum>(H)</enum><header>Payment of
valid obligations</header><text>The Corporation, as receiver for a covered
financial company, shall, to the extent that funds are available, pay all valid
obligations of the covered financial company that are due and payable at the
time of the appointment of the Corporation as receiver, in accordance with the
prescriptions and limitations of this title.</text>
</subparagraph><subparagraph id="ID9bca048c935340e4ad58dd42cd67d82e"><enum>(I)</enum><header>Applicable
noninsolvency law</header><text>Except as may otherwise be provided in this
title, the applicable noninsolvency law shall be determined by the
noninsolvency choice of law rules otherwise applicable to the claims, rights,
titles, persons, or entities at issue.</text>
</subparagraph><subparagraph id="IDde9219d07f094c5395ac471ae8be9b1d"><enum>(J)</enum><header>Subpoena
authority</header>
<clause id="ID44ed07db2afe4a89a27855f18738d4d5"><enum>(i)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, may, for purposes of carrying out any power, authority, or duty with
respect to the covered financial company (including determining any claim
against the covered financial company and determining and realizing upon any
asset of any person in the course of collecting money due the covered financial
company), exercise any power established under section 8(n) of the Federal
Deposit Insurance Act, as if the Corporation were the appropriate Federal
banking agency for the covered financial company, and the covered financial
company were an insured depository institution.</text>
</clause><clause id="ID9be95fd2df4d4b8593248e615b95e963"><enum>(ii)</enum><header>Rule
of construction</header><text>This subparagraph may not be construed as
limiting any rights that the Corporation, in any capacity, might otherwise have
to exercise any powers described in clause (i) or under any other provision of
law.</text>
</clause></subparagraph><subparagraph id="IDe4c21cf950084e5eb52c2fb6e87856ac"><enum>(K)</enum><header>Incidental
powers</header><text>The Corporation, as receiver for a covered financial
company, may exercise all powers and authorities specifically granted to
receivers under this title, and such incidental powers as shall be necessary to
carry out such powers under this title.</text>
</subparagraph><subparagraph id="ID43a8184ac6bd4b3a87fd7dc3ec024a66"><enum>(L)</enum><header>Utilization of
private sector</header><text>In carrying out its responsibilities in the
management and disposition of assets from the covered financial company, the
Corporation, as receiver for a covered financial company, may utilize the
services of private persons, including real estate and loan portfolio asset
management, property management, auction marketing, legal, and brokerage
services, if such services are available in the private sector, and the
Corporation determines that utilization of such services is practicable,
efficient, and cost effective.</text>
</subparagraph><subparagraph id="ID4fe627d29d1542eca8a5da167c01d5dc"><enum>(M)</enum><header>Shareholders
and creditors of covered financial company</header><text>Notwithstanding any
other provision of law, the Corporation, as receiver for a covered financial
company, shall succeed by operation of law to the rights, titles, powers, and
privileges described in subparagraph (A), and shall terminate all rights and
claims that the stockholders and creditors of the covered financial company may
have against the assets of the covered financial company or the Corporation
arising out of their status as stockholders or creditors, except for their
right to payment, resolution, or other satisfaction of their claims, as
permitted under this section. The Corporation shall ensure that shareholders
and unsecured creditors bear losses, consistent with the priority of claims
provisions under this section.</text>
</subparagraph><subparagraph id="ID058aacb766224bde8ce920a5ddcdb89f"><enum>(N)</enum><header>Coordination
with foreign financial authorities</header><text>The Corporation, as receiver
for a covered financial company, shall coordinate, to the maximum extent
possible, with the appropriate foreign financial authorities regarding the
orderly liquidation of any covered financial company that has assets or
operations in a country other than the United States.</text>
</subparagraph><subparagraph id="IDfe1994b4573d4a6e8496f2ddf6200e6c"><enum>(O)</enum><header>Restriction on
transfers to bridge financial company</header>
<clause id="ID9e88461e37094166b14c93d124ddc391"><enum>(i)</enum><header>Section of
accounts for transfer</header><text>If the Corporation establishes one or more
bridge financial companies with respect to a covered broker or dealer, the
Corporation shall transfer to a bridge financial company, all customer accounts
of the covered financial company, unless the Corporation, after consulting with
the Commission and SIPC, determines that—</text>
<subclause id="IDa75af1c6c63e4885bd8db3f21fccee37"><enum>(I)</enum><text>the
customer accounts are likely to be promptly transferred to another covered
broker or dealer; or</text>
</subclause><subclause id="IDd1d0d994fdca46c486ce8a4eed48f656"><enum>(II)</enum><text>the
transfer of the accounts to a bridge financial company would materially
interfere with the ability of the Corporation to avoid or mitigate serious
adverse effects on financial stability or economic conditions in the United
States.</text>
</subclause></clause><clause id="ID9a47e9904990421da55ea0349bc76e7b"><enum>(ii)</enum><header>Transfer of
property</header><text>SIPC, as trustee for the liquidation of the covered
broker or dealer, and the Commission, shall provide any and all reasonable
assistance necessary to complete such transfers by the Corporation.</text>
</clause><clause id="ID6187c2d4ce4748e6a1ba1e8516acf25e"><enum>(iii)</enum><header>Customer
consent and court approval not required</header><text>Neither customer consent
nor court approval shall be required to transfer any customer accounts and
associated customer property to a bridge financial company in accordance with
this section.</text>
</clause><clause id="ID286cd4cf00fb4924a7e74f764c0ef85f"><enum>(iv)</enum><header>Notification
of sipc and sharing of information</header><text>The Corporation shall identify
to SIPC the customer accounts and associated customer property transferred to
the bridge financial company. The Corporation and SIPC shall cooperate in the
sharing of any information necessary for each entity to discharge its
obligations under this title and under the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa et seq.) including by providing access to the books
and records of the covered financial company and any bridge financial company
established in accordance with this title.</text>
</clause></subparagraph></paragraph><paragraph id="ID4766004a693640c783e5e59057e5af87"><enum>(2)</enum><header>Determination
of claims</header>
<subparagraph id="ID05f7234a2e4740228dc18fb23ee82d49"><enum>(A)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, shall report on claims, as set forth in section 203(c)(3). Subject to
paragraph (4) of this subsection, the Corporation, as receiver for a covered
financial company, shall determine claims in accordance with the requirements
of this subsection and regulations prescribed under section 209.</text>
</subparagraph><subparagraph id="ID61de1d3576fb42cc926be838b4ee9452"><enum>(B)</enum><header>Notice
requirements</header><text>The Corporation, as receiver for a covered financial
company, in any case involving the liquidation or winding up of the affairs of
a covered financial company, shall—</text>
<clause id="IDdcb36f616b544221b0f7cf4e4e14bd61"><enum>(i)</enum><text>promptly publish
a notice to the creditors of the covered financial company to present their
claims, together with proof, to the receiver by a date specified in the notice,
which shall be not earlier than 90 days after the date of publication of such
notice; and</text>
</clause><clause id="ID80ec1974d0f24619bd0a9f7fd7375164"><enum>(ii)</enum><text>republish such
notice 1 month and 2 months, respectively, after the date of publication under
clause (i).</text>
</clause></subparagraph><subparagraph id="ID2d9e28baf6a4427aa80c291a76a6e241"><enum>(C)</enum><header>Mailing
required</header><text>The Corporation as receiver shall mail a notice similar
to the notice published under clause (i) or (ii) of subparagraph (B), at the
time of such publication, to any creditor shown on the books and records of the
covered financial company—</text>
<clause id="ID6e84aaf4095942de8e70db08bfb589c9"><enum>(i)</enum><text>at the
last address of the creditor appearing in such books;</text>
</clause><clause id="IDe61c02bb76cb4e90b916a8865a706875"><enum>(ii)</enum><text>in any
claim filed by the claimant; or</text>
</clause><clause id="ID0ac05e00a80b49d08537b18ea42a4e15"><enum>(iii)</enum><text>upon
discovery of the name and address of a claimant not appearing on the books and
records of the covered financial company, not later than 30 days after the date
of the discovery of such name and address.</text>
</clause></subparagraph></paragraph><paragraph id="ID5ea936e63aff494bae07dcd574b0fb48"><enum>(3)</enum><header>Procedures for
resolution of claims</header>
<subparagraph id="ID58101c9733c9408ab9892266dbc55033"><enum>(A)</enum><header>Decision
period</header>
<clause id="ID65dd6d782df54016a405a998469436a4"><enum>(i)</enum><header>In
general</header><text>Prior to the 180th day after the date on which a claim
against a covered financial company is filed with the Corporation as receiver,
or such later date as may be agreed as provided in clause (ii), the Corporation
shall notify the claimant whether it accepts or objects to the claim, in
accordance with subparagraphs (B), (C), and (D).</text>
</clause><clause id="ID2f030d75503247b48460b3cd15cfab4e"><enum>(ii)</enum><header>Extension of
time</header><text>By written agreement executed not later than 180 days after
the date on which a claim against a covered financial company is filed with the
Corporation, the period described in clause (i) may be extended by written
agreement between the claimant and the Corporation. Failure to notify the
claimant of any disallowance within the time period set forth in clause (i), as
it may be extended by agreement under this clause, shall be deemed to be a
disallowance of such claim, and the claimant may file or continue an action in
court, as provided in paragraph (4).</text>
</clause><clause id="ID88b85d6cbc4540129bc5665f1c85c5f2"><enum>(iii)</enum><header>Mailing of
notice sufficient</header><text>The requirements of clause (i) shall be deemed
to be satisfied if the notice of any decision with respect to any claim is
mailed to the last address of the claimant which appears—</text>
<subclause id="IDdd934374f52a4515aadaa0513e46fe8a"><enum>(I)</enum><text>on
the books, records, or both of the covered financial company;</text>
</subclause><subclause id="ID47ec484031f9433d8433d9478a5a41a7"><enum>(II)</enum><text>in
the claim filed by the claimant; or</text>
</subclause><subclause id="ID115f287692244d3c9a0f97b520869fa6"><enum>(III)</enum><text>in
documents submitted in proof of the claim.</text>
</subclause></clause><clause id="ID7a532763bb6b42adbcc0e5aa8df89950"><enum>(iv)</enum><header>Contents of
notice of disallowance</header><text>If the Corporation as receiver objects to
any claim filed under clause (i), the notice to the claimant shall
contain—</text>
<subclause id="IDf1a93a0bc90044e6a3232cf2664b0823"><enum>(I)</enum><text>a
statement of each reason for the disallowance; and</text>
</subclause><subclause id="ID40fba77f005e421da5c8c00a603d7299"><enum>(II)</enum><text>the
procedures required to file or continue an action in court, as provided in
paragraph (4).</text>
</subclause></clause></subparagraph><subparagraph id="ID62f2ffe7e4f54817ac39244ed1adabc8"><enum>(B)</enum><header>Allowance of
proven claim</header><text>The receiver shall allow any claim received by the
receiver on or before the date specified in the notice under paragraph
(2)(B)(i), which is proved to the satisfaction of the receiver.</text>
</subparagraph><subparagraph id="ID245a048cafe14b199f55b8a629e6debc"><enum>(C)</enum><header>Disallowance of
claims filed after end of filing period</header>
<clause id="IDc84285f9b00347d09416226c5d547c37"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), claims filed after the
date specified in the notice published under paragraph (2)(B)(i) shall be
disallowed, and such disallowance shall be final.</text>
</clause><clause id="IDc054a5c4032c40a1a1dec3b138d5886d"><enum>(ii)</enum><header>Certain
exceptions</header><text>Clause (i) shall not apply with respect to any claim
filed by a claimant after the date specified in the notice published under
paragraph (2)(B)(i), and such claim may be considered by the receiver under
subparagraph (B), if—</text>
<subclause id="ID6c48402dc13b45d2a844c507cd9243a8"><enum>(I)</enum><text>the
claimant did not receive notice of the appointment of the receiver in time to
file such claim before such date; and</text>
</subclause><subclause id="ID53f304df99014059b455cff50c4e8857"><enum>(II)</enum><text>such claim is
filed in time to permit payment of such claim.</text>
</subclause></clause></subparagraph><subparagraph id="ID28a1365cf11b436c95bc3e892ee4b160"><enum>(D)</enum><header>Authority to
disallow claims</header>
<clause id="ID2a2569d6875d4fa68fd0ef174fb511fa"><enum>(i)</enum><header>In
general</header><text>The Corporation may object to any portion of any claim by
a creditor or claim of a security, preference, setoff, or priority which is not
proved to the satisfaction of the Corporation.</text>
</clause><clause id="IDbd8918754817427aa4903213bf0ce380"><enum>(ii)</enum><header>Payments to
undersecured creditors</header><text>In the case of a claim against a covered
financial company that is secured by any property or other asset of such
covered financial company, the receiver—</text>
<subclause id="ID25a9d9207546470d874eb15e6f603b7d"><enum>(I)</enum><text>may
treat the portion of such claim which exceeds an amount equal to the fair
market value of such property or other asset as an unsecured claim; and</text>
</subclause><subclause id="ID219f02b4a72540cf89d055e3aaf97e9e"><enum>(II)</enum><text>may
not make any payment with respect to such unsecured portion of the claim, other
than in connection with the disposition of all claims of unsecured creditors of
the covered financial company.</text>
</subclause></clause><clause id="IDdd464e61298b48e3b5fd161bf4caaf66"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="IDfa3ba968db0442cf8bec02557dda4b31"><enum>(I)</enum><text>any
extension of credit from any Federal reserve bank, or the Corporation, to any
covered financial company; or</text>
</subclause><subclause id="IDacea3d7b3e2647f59a39fe0c3fdbe6e1"><enum>(II)</enum><text>subject to
clause (ii), any legally enforceable and perfected security interest in the
assets of the covered financial company securing any such extension of
credit.</text>
</subclause></clause></subparagraph><subparagraph id="ID9fb51d579ac0453bbf993bbc51e2a7b4"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="IDa0d98ad0cbcb4b809557a78e92aa6752"><enum>(i)</enum><header>Statute of
limitations tolled</header><text>For purposes of any applicable statute of
limitations, the filing of a claim with the receiver shall constitute a
commencement of an action.</text>
</clause><clause id="IDdef46d5c62254dc59cbf77f258de7e3f"><enum>(ii)</enum><header>No
prejudice to other actions</header><text>Subject to paragraph (8), the filing
of a claim with the receiver shall not prejudice any right of the claimant to
continue any action which was filed before the date of appointment of the
receiver for the covered financial company.</text>
</clause></subparagraph></paragraph><paragraph id="ID32fa20b7f0c843a396cfbe919e4d2405"><enum>(4)</enum><header>Judicial
determination of claims</header>
<subparagraph id="idC929170A87354CB98A49392DB3F93E9B"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), a claimant may file suit on
a claim (or continue an action commenced before the date of appointment of the
Corporation as receiver) in the district or territorial court of the United
States for the district within which the principal place of business of the
covered financial company is located (and such court shall have jurisdiction to
hear such claim).</text>
</subparagraph><subparagraph id="ID203f03c13e794c8fae09433227d23fd1"><enum>(B)</enum><header>Timing</header><text>A
claim under subparagraph (A) may be filed before the end of the 60-day period
beginning on the earlier of—</text>
<clause id="IDef9f7a5dce0f4d9394fc7d742ea774d8"><enum>(i)</enum><text>the end
of the period described in paragraph (3)(A)(i) (or, if extended by agreement of
the Corporation and the claimant, the period described in paragraph (3)(A)(ii))
with respect to any claim against a covered financial company for which the
Corporation is receiver; or</text>
</clause><clause id="ID73e3b9461f884034b6ebb514d63a3c26"><enum>(ii)</enum><text>the
date of any notice of disallowance of such claim pursuant to paragraph
(3)(A)(i).</text>
</clause></subparagraph><subparagraph id="ID75d0c0a846f648a0a5702421558b70a3"><enum>(C)</enum><header>Statute of
limitations</header><text>If any claimant fails to file suit on such claim (or
to continue an action on such claim commenced before the date of appointment of
the Corporation as receiver) prior to the end of the 60-day period described in
subparagraph (B), the claim shall be deemed to be disallowed (other than any
portion of such claim which was allowed by the receiver) as of the end of such
period, such disallowance shall be final, and the claimant shall have no
further rights or remedies with respect to such claim.</text>
</subparagraph></paragraph><paragraph id="IDa320556aafa147989acfbbbad2e67e64"><enum>(5)</enum><header>Expedited
determination of claims</header>
<subparagraph id="IDb395f70ccf1c490097d08489835636b6"><enum>(A)</enum><header>Procedure
required</header><text>The Corporation shall establish a procedure for
expedited relief outside of the claims process established under paragraph (3),
for any claimant that alleges—</text>
<clause id="IDde8bbcc6b06149dc86d9f8f4b8bf13a4"><enum>(i)</enum><text>the
existence of a legally valid and enforceable or perfected security interest in
property of a covered financial company, or is an entitlement holder that has
obtained control of any legally valid and enforceable security entitlement in
respect of any asset held by the covered financial company for which the
Corporation has been appointed receiver; and</text>
</clause><clause id="ID319933c9649547fc9b89d855d1d6694f"><enum>(ii)</enum><text>that
irreparable injury will occur if the claims procedure established under
paragraph (3) is followed.</text>
</clause></subparagraph><subparagraph id="ID5b4e3267263e471c83762279a010c2bb"><enum>(B)</enum><header>Determination
period</header><text>Prior to the end of the 90-day period beginning on the
date on which a claim is filed in accordance with the procedures established
pursuant to subparagraph (A), the Corporation shall—</text>
<clause id="IDdfe353e5a7984a61b3938efba2716bf2"><enum>(i)</enum><text>determine—</text>
<subclause id="IDb7e1601a63ec4d5ca850b25f657f5034"><enum>(I)</enum><text>whether to allow
or disallow such claim, or any portion thereof; or</text>
</subclause><subclause id="ID9261a12fbaf942bc888612e3025c16af"><enum>(II)</enum><text>whether such
claim should be determined pursuant to the procedures established pursuant to
paragraph (3);</text>
</subclause></clause><clause id="ID04fa2786496642feb732a3f08518125b"><enum>(ii)</enum><text>notify
the claimant of the determination; and</text>
</clause><clause id="ID16522a64a8cd42af98bcb55865b928a9"><enum>(iii)</enum><text>if
the claim is disallowed, provide a statement of each reason for the
disallowance and the procedure for obtaining a judicial determination.</text>
</clause></subparagraph><subparagraph id="ID1b304076c71a4d0ea37560583a372c29"><enum>(C)</enum><header>Period for
filing or renewing suit</header><text>Any claimant who files a request for
expedited relief shall be permitted to file suit (or continue a suit filed
before the date of appointment of the Corporation as receiver seeking a
determination of the rights of the claimant with respect to such security
interest (or such security entitlement) after the earlier of—</text>
<clause id="IDf1c89b9bf8f746eda2de71c6e83bc3ab"><enum>(i)</enum><text>the end
of the 90-day period beginning on the date of the filing of a request for
expedited relief; or</text>
</clause><clause id="IDd7d64e781939462cae731e2f1d6b309e"><enum>(ii)</enum><text>the
date on which the Corporation denies the claim or a portion thereof.</text>
</clause></subparagraph><subparagraph id="ID4d01a2d3d72449aba9a172c2ce813171"><enum>(D)</enum><header>Statute of
limitations</header><text>If an action described in subparagraph (C) is not
filed, or the motion to renew a previously filed suit is not made, before the
end of the 30-day period beginning on the date on which such action or motion
may be filed in accordance with subparagraph (C), the claim shall be deemed to
be disallowed as of the end of such period (other than any portion of such
claim which was allowed by the receiver), such disallowance shall be final, and
the claimant shall have no further rights or remedies with respect to such
claim.</text>
</subparagraph><subparagraph id="IDf762500e25dd47549c1337ed0cc6fad9"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="ID14b99f9684fe40888d88aeebee0834a4"><enum>(i)</enum><header>Statute of
limitations tolled</header><text>For purposes of any applicable statute of
limitations, the filing of a claim with the receiver shall constitute a
commencement of an action.</text>
</clause><clause id="ID54b52cdc71294612a50216c69e5bc8c1"><enum>(ii)</enum><header>No
prejudice to other actions</header><text>Subject to paragraph (8), the filing
of a claim with the receiver shall not prejudice any right of the claimant to
continue any action which was filed before the appointment of the Corporation
as receiver for the covered financial company.</text>
</clause></subparagraph></paragraph><paragraph id="IDf35ae8bb4ddf4152876a05a309ec349e"><enum>(6)</enum><header>Agreements
against interest of the receiver</header><text>No agreement that tends to
diminish or defeat the interest of the Corporation as receiver in any asset
acquired by the receiver under this section shall be valid against the
receiver, unless such agreement—</text>
<subparagraph id="idF92ABC37AB37475BA930A0B138530B5C"><enum>(A)</enum><text>is in
writing;</text>
</subparagraph><subparagraph id="id5854353B7DA94460813243BDA941D9F4"><enum>(B)</enum><text>was executed by
an authorized officer or representative of the covered financial company, or
confirmed in the ordinary course of business by the covered financial company;
and</text>
</subparagraph><subparagraph id="id59013B821EC64FF5A90DB61687E3E852"><enum>(C)</enum><text>has been, since
the time of its execution, an official record of the company or the party
claiming under the agreement provides documentation, acceptable to the
receiver, of such agreement and its authorized execution or confirmation by the
covered financial company.</text>
</subparagraph></paragraph><paragraph id="IDb1af25164fef4de2bca884f235c8b5f4"><enum>(7)</enum><header>Payment of
claims</header>
<subparagraph id="ID6ae2d3bc37114526832f8f5971834240"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the Corporation as receiver
may, in its discretion and to the extent that funds are available, pay creditor
claims, in such manner and amounts as are authorized under this section, which
are—</text>
<clause id="ID429edd09235f4977a481ef7321eaaa34"><enum>(i)</enum><text>allowed
by the receiver;</text>
</clause><clause id="IDaeae74897b9b4367a8b90a22091db401"><enum>(ii)</enum><text>approved by the
receiver pursuant to a final determination pursuant to paragraph (3) or (5), as
applicable; or</text>
</clause><clause id="ID9a836ad2fbfe4a7bb6ead3eafff78125"><enum>(iii)</enum><text>determined by
the final judgment of a court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="id9FD73195C34C402CBFD58A6D1CB736E0"><enum>(B)</enum><header>Limitation</header><text>A
creditor shall, in no event, receive less than the amount that the creditor is
entitled to receive under paragraphs (2) and (3) of subsection (d), as
applicable.</text>
</subparagraph><subparagraph id="ID7c28a1199a9f42b581d80fcc5a3a5af9"><enum>(C)</enum><header>Payment of
dividends on claims</header><text>The Corporation as receiver may, in its sole
discretion, and to the extent otherwise permitted by this section, pay
dividends on proven claims at any time, and no liability shall attach to the
Corporation as receiver, by reason of any such payment or for failure to pay
dividends to a claimant whose claim is not proved at the time of any such
payment.</text>
</subparagraph><subparagraph id="IDd92a6caa2da049cbb9bb42a7ee9293e3"><enum>(D)</enum><header>Rulemaking by
the corporation</header><text>The Corporation may prescribe such rules,
including definitions of terms, as the Corporation deems appropriate to
establish an interest rate for or to make payments of post-insolvency interest
to creditors holding proven claims against the receivership estate of a covered
financial company, except that no such interest shall be paid until the
Corporation as receiver has satisfied the principal amount of all creditor
claims.</text>
</subparagraph></paragraph><paragraph id="ID2cd19eb65c9f4c2e9e94e7ed704016e9"><enum>(8)</enum><header>Suspension of
legal actions</header>
<subparagraph id="IDeb396ec4de3c439ea1533c22ab16d6dc"><enum>(A)</enum><header>In
general</header><text>After the appointment of the Corporation as receiver for
a covered financial company, the Corporation may request a stay in any judicial
action or proceeding in which such covered financial company is or becomes a
party, for a period of not to exceed 90 days.</text>
</subparagraph><subparagraph id="IDb49c71a73af24207bc62f24628e32cfb"><enum>(B)</enum><header>Grant of stay
by all courts required</header><text>Upon receipt of a request by the
Corporation pursuant to subparagraph (A), the court shall grant such stay as to
all parties.</text>
</subparagraph></paragraph><paragraph id="ID2ab1ccc2761d4de4aedbadb6781300a4"><enum>(9)</enum><header>Additional
rights and duties</header>
<subparagraph id="ID9ad6b0190aed43508835ba804f0a3f14"><enum>(A)</enum><header>Prior final
adjudication</header><text>The Corporation shall abide by any final,
non-appealable judgment of any court of competent jurisdiction that was
rendered before the appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph id="ID8b7b8c516dec4dc9ba32bd4ba45bf1a2"><enum>(B)</enum><header>Rights and
remedies of receiver</header><text>In the event of any appealable judgment, the
Corporation as receiver shall—</text>
<clause id="ID4f38c84ac0a5409fb1e0636cd5fb55d2"><enum>(i)</enum><text>have
all the rights and remedies available to the covered financial company (before
the date of appointment of the Corporation as receiver under section 202) and
the Corporation, including removal to Federal court and all appellate rights;
and</text>
</clause><clause id="ID5e3ce13d3e474575b534bf7135b91797"><enum>(ii)</enum><text>not be
required to post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="ID8e322b46e4b64d6fb6675473cc792c40"><enum>(C)</enum><header>No attachment
or execution</header><text>No attachment or execution may be issued by any
court upon assets in the possession of the Corporation as receiver for a
covered financial company.</text>
</subparagraph><subparagraph id="IDdd99983d05484ad2b72f13edce7c3887"><enum>(D)</enum><header>Limitation on
judicial review</header><text>Except as otherwise provided in this title, no
court shall have jurisdiction over—</text>
<clause id="ID21a88aaeffae4fcf839967a46a266a8f"><enum>(i)</enum><text>any
claim or action for payment from, or any action seeking a determination of
rights with respect to, the assets of any covered financial company for which
the Corporation has been appointed receiver, including any assets which the
Corporation may acquire from itself as such receiver; or</text>
</clause><clause id="ID6a95f77f69ea4e2fa3daee5028d77da2"><enum>(ii)</enum><text>any
claim relating to any act or omission of such covered financial company or the
Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="ID2e64e8afbd114851a7adbe79f6846559"><enum>(E)</enum><header>Disposition of
assets</header><text>In exercising any right, power, privilege, or authority as
receiver in connection with any covered financial company for which the
Corporation is acting as receiver under this section, the Corporation shall, to
the greatest extent practicable, conduct its operations in a manner
that—</text>
<clause id="ID60fc124225e94cc6bb7b0a30f3bc82af"><enum>(i)</enum><text>maximizes the net
present value return from the sale or disposition of such assets;</text>
</clause><clause id="ID3537767cd73f4c3b8b755c39009f02da"><enum>(ii)</enum><text>minimizes the
amount of any loss realized in the resolution of cases;</text>
</clause><clause id="ID433289046e1944a8b194c04080705e4b"><enum>(iii)</enum><text>mitigates the
potential for serious adverse effects to the financial system;</text>
</clause><clause id="IDe26cbaa9a7b1438687be5c0f04b47bd4"><enum>(iv)</enum><text>ensures timely
and adequate competition and fair and consistent treatment of offerors;
and</text>
</clause><clause id="ID289009bfb2af446ba0b2428a260df538"><enum>(v)</enum><text>prohibits
discrimination on the basis of race, sex, or ethnic group in the solicitation
and consideration of offers.</text>
</clause></subparagraph></paragraph><paragraph id="ID39ed30f752434582bdf9b175bd1cc243"><enum>(10)</enum><header>Statute of
limitations for actions brought by receiver</header>
<subparagraph id="ID32a2a8fd800244da9196130b3498f812"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any provision of any contract, the
applicable statute of limitations with regard to any action brought by the
Corporation as receiver for a covered financial company shall be—</text>
<clause id="ID2939cbac0ff14e3e8f73fa33b1438602"><enum>(i)</enum><text>in the
case of any contract claim, the longer of—</text>
<subclause id="ID66b48a4dfd9d4b9fae0fcfbaad750502"><enum>(I)</enum><text>the
6-year period beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="IDda8616a8202b414fb2a43d4c0d66ef5b"><enum>(II)</enum><text>the
period applicable under State law; and</text>
</subclause></clause><clause id="ID149f9c8acf27453993baef0dd76aae22"><enum>(ii)</enum><text>in the
case of any tort claim, the longer of—</text>
<subclause id="ID31af5dd1693c46e9b182d20086e7dfae"><enum>(I)</enum><text>the
3-year period beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="IDa52dee2c96b54c53a9dc531d51588732"><enum>(II)</enum><text>the
period applicable under State law.</text>
</subclause></clause></subparagraph><subparagraph id="IDf313416c2b0b41fe899452e84e16f910"><enum>(B)</enum><header>Date on which a
claim accrues</header><text>For purposes of subparagraph (A), the date on which
the statute of limitations begins to run on any claim described in subparagraph
(A) shall be the later of—</text>
<clause id="ID391df935e7964eec8a2532f4e6ba0c1a"><enum>(i)</enum><text>the
date of the appointment of the Corporation as receiver under this title;
or</text>
</clause><clause id="ID00de7d941b3f4584bff029ea4476d801"><enum>(ii)</enum><text>the
date on which the cause of action accrues.</text>
</clause></subparagraph><subparagraph id="ID3c4ff6a192e7466a98ba4b0dfc18e82b"><enum>(C)</enum><header>Revival of
expired State causes of action</header>
<clause id="IDd5ecd6f997af47849a1e44c22d52b113"><enum>(i)</enum><header>In
general</header><text>In the case of any tort claim described in clause (ii)
for which the applicable statute of limitations under State law has expired not
more than 5 years before the date of appointment of the Corporation as receiver
for a covered financial company, the Corporation may bring an action as
receiver on such claim without regard to the expiration of the statute of
limitations.</text>
</clause><clause id="ID82731384b7b94c4d9e57a49ed1ccae48"><enum>(ii)</enum><header>Claims
described</header><text>A tort claim referred to in clause (i) is a claim
arising from fraud, intentional misconduct resulting in unjust enrichment, or
intentional misconduct resulting in substantial loss to the covered financial
company.</text>
</clause></subparagraph></paragraph><paragraph id="ID5564509352584dcf815d00339092035d"><enum>(11)</enum><header>Avoidable
transfers</header>
<subparagraph id="IDf5e5517c68d8487eb886d790362d36bb"><enum>(A)</enum><header>Fraudulent
transfers</header><text>The Corporation, as receiver for any covered financial
company, may avoid a transfer of any interest of the covered financial company
in property, or any obligation incurred by the covered financial company, that
was made or incurred at or within 2 years before the time of commencement,
if—</text>
<clause id="id3E8AFAFB9AAD46BFBB8F6FE3DD22912C"><enum>(i)</enum><text>the
covered financial company voluntarily or involuntarily—</text>
<subclause id="IDf86141a9d8084274a8d27639314bf882"><enum>(I)</enum><text>made
such transfer or incurred such obligation with actual intent to hinder, delay,
or defraud any entity to which the covered financial company was or became, on
or after the date on which such transfer was made or such obligation was
incurred, indebted; or</text>
</subclause><subclause id="ID249e5d3b4908425e8e383b027734c279"><enum>(II)</enum><text>received less
than a reasonably equivalent value in exchange for such transferor obligation;
and</text>
</subclause></clause><clause id="IDd58d22161f6247b18d3411e0c8d8f66c"><enum>(ii)</enum><text>the
covered financial company voluntarily or involuntarily—</text>
<subclause id="idB87A4BEB71B54A1585748802CC3AE734"><enum>(I)</enum><text>was
insolvent on the date that such transfer was made or such obligation was
incurred, or became insolvent as a result of such transfer or
obligation;</text>
</subclause><subclause id="idE927EE28F888450F90C78A869A983FDB"><enum>(II)</enum><text>was
engaged in business or a transaction, or was about to engage in business or a
transaction, for which any property remaining with the covered financial
company was an unreasonably small capital;</text>
</subclause><subclause id="id7241507F2F8E43EC8BCE969D0DA3556B"><enum>(III)</enum><text>intended to
incur, or believed that the covered financial company would incur, debts that
would be beyond the ability of the covered financial company to pay as such
debts matured; or</text>
</subclause><subclause id="id4EC26C4ED03C47C18254A4ADDF88C6E3"><enum>(IV)</enum><text>made such
transfer to or for the benefit of an insider, or incurred such obligation to or
for the benefit of an insider, under an employment contract and not in the
ordinary course of business.</text>
</subclause></clause></subparagraph><subparagraph id="IDa877dddcf7e74d89883833aeef716d7f"><enum>(B)</enum><header>Preferential
transfers</header><text>The Corporation as receiver for any covered financial
company may avoid a transfer of an interest of the covered financial company in
property—</text>
<clause id="ID011308415372438a9ebeeb35ab15cdae"><enum>(i)</enum><text>to or
for the benefit of a creditor;</text>
</clause><clause id="ID40dff61268404f6d8102aced62c2b40f"><enum>(ii)</enum><text>for or
on account of an antecedent debt that was owed by the covered financial company
before the transfer was made;</text>
</clause><clause id="IDd139f9c3bab941a38b84f186156d804b"><enum>(iii)</enum><text>that
was made while the covered financial company was insolvent;</text>
</clause><clause id="ID4523e8df78c14abd935da98a0924aa14"><enum>(iv)</enum><text>that
was made—</text>
<subclause id="ID5ec4204854854b9a850d5ac05d6ec6de"><enum>(I)</enum><text>90
days or less before the date on which the Corporation was appointed receiver;
or</text>
</subclause><subclause id="ID4af60c90a2e94989b04ef272e82238a3"><enum>(II)</enum><text>more than 90
days, but less than 1 year before the date on which the Corporation was
appointed receiver, if such creditor at the time of the transfer was an
insider; and</text>
</subclause></clause><clause id="ID024bf251cade4efda94046041ddfaed9"><enum>(v)</enum><text>that
enables the creditor to receive more than the creditor would receive if—</text>
<subclause id="ID69c67db95133404bbb6254623f787044"><enum>(I)</enum><text>the
covered financial company had been liquidated under chapter 7 of the Bankruptcy
Code;</text>
</subclause><subclause id="IDf687b69b79394ec7a85729680c8b4c7d"><enum>(II)</enum><text>the
transfer had not been made; and</text>
</subclause><subclause id="IDc31d791a927448dfa9e258ad3d70cbc0"><enum>(III)</enum><text>the creditor
received payment of such debt to the extent provided by the provisions of
chapter 7 of the Bankruptcy Code.</text>
</subclause></clause></subparagraph><subparagraph id="IDebea84b5f45845b385b76edd15e8f4c0"><enum>(C)</enum><header>Post-receivership
transactions</header><text>The Corporation as receiver for any covered
financial company may avoid a transfer of property of the receivership that
occurred after the Corporation was appointed receiver that was not authorized
under this title by the Corporation as receiver.</text>
</subparagraph><subparagraph id="ID9938ff98f4be4098b8eaa326653ec8e2"><enum>(D)</enum><header>Right of
recovery</header><text>To the extent that a transfer is avoided under
subparagraph (A), (B), or (C), the Corporation may recover, for the benefit of
the covered financial company, the property transferred or, if a court so
orders, the value of such property (at the time of such transfer) from—</text>
<clause id="ID2d52f785f0bf459687b5bad928103902"><enum>(i)</enum><text>the
initial transferee of such transfer or the person for whose benefit such
transfer was made; or</text>
</clause><clause id="IDc18a05433d4e499eb620e38cf5d979e9"><enum>(ii)</enum><text>any
immediate or mediate transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="IDd61021ec38e945d0a09f9795db080907"><enum>(E)</enum><header>Rights of
transferee or obligee</header><text>The Corporation may not recover under
subparagraph (D)(ii) from—</text>
<clause id="ID0a8d4610fdb140bc91636028d42de3ef"><enum>(i)</enum><text>any
transferee that takes for value, including in satisfaction of or to secure a
present or antecedent debt, in good faith, and without knowledge of the
voidability of the transfer avoided; or</text>
</clause><clause id="ID36b64f99dd684e538e740b307cadebb9"><enum>(ii)</enum><text>any
immediate or mediate good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="IDd990c198f6954f28afccc556e4ddd9e8"><enum>(F)</enum><header>Defenses</header><text>Subject
to the other provisions of this title—</text>
<clause id="idAD7436D826104E0FAF17FB9BEBBDDA7A"><enum>(i)</enum><text>a
transferee or obligee from which the Corporation seeks to recover a transfer or
to avoid an obligation under subparagraph (A), (B), (C), or (D) shall have the
same defenses available to a transferee or obligee from which a trustee seeks
to recover a transfer or avoid an obligation under; and</text>
</clause><clause id="id5351576304C24A019FF9C6EE25B4B62A"><enum>(ii)</enum><text>the
authority of the Corporation to recover a transfer or avoid an obligation shall
be subject to subsections (b) and (c) of section 546, section 547(c), and
section 548(c) of the Bankruptcy Code.</text>
</clause></subparagraph><subparagraph id="IDde6d86ff1be140569e8ab5700db39e9d"><enum>(G)</enum><header>Rights under
this section</header><text>The rights of the Corporation as receiver under this
section shall be superior to any rights of a trustee or any other party (other
than a Federal agency) under the Bankruptcy Code.</text>
</subparagraph><subparagraph id="ID9bf9ebcb7ef74718852dc83b08693fc5"><enum>(H)</enum><header>Rules of
construction; definitions</header><text>For purposes of—</text>
<clause id="id98C5B95CD090453FAEEA25FBFEC58B4A"><enum>(i)</enum><text>subparagraphs (A)
and (B)—</text>
<subclause id="IDc0dbc31221584dcaa41c841b361969d2"><enum>(I)</enum><text>the
term <term>insider</term> has the same meaning as in section 101(31) of the
Bankruptcy Code;</text>
</subclause><subclause id="ID7c151d30b801467bba224408fd9af419"><enum>(II)</enum><text>a
transfer is made when such transfer is so perfected that a bona fide purchaser
from the covered financial company against whom applicable law permits such
transfer to be perfected cannot acquire an interest in the property transferred
that is superior to the interest in such property of the transferee, but if
such transfer is not so perfected before the date on which the Corporation is
appointed as receiver for the covered financial company, such transfer is made
immediately before the date of such appointment; and</text>
</subclause><subclause id="IDa9c6ecb632b64cb49c68e0b42157bce1"><enum>(III)</enum><text>the term
<term>value</term> means property, or satisfaction or securing of a present or
antecedent debt of the covered financial company, but does not include an
unperformed promise to furnish support to the covered financial company;
and</text>
</subclause></clause><clause id="IDbd99da032e6f490b87f02a99cce27159"><enum>(ii)</enum><text>subparagraph
(B)—</text>
<subclause id="id9DA0AA4464F34BCE95F969D3CA8E2610"><enum>(I)</enum><text>the
covered financial company is presumed to have been insolvent on and during the
90-day period immediately preceding the date of appointment of the Corporation
as receiver; and</text>
</subclause><subclause id="id8AFC83B4A79A4F64BD382DF4C2F9F009"><enum>(II)</enum><text>the
term <term>insolvent</term> has the same meaning as in section 101(32) of the
Bankruptcy Code.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID6e99796874124e45a3705bab7a9601ac"><enum>(12)</enum><header>Setoff</header>
<subparagraph id="IDe4c5aff4341443eb91db67657207b1b4"><enum>(A)</enum><header>Generally</header><text>Except
as otherwise provided in this title, any right of a creditor to offset a mutual
debt owed by the creditor to any covered financial company that arose before
the Corporation was appointed as receiver for the covered financial company
against a claim of such creditor may be asserted if enforceable under
applicable noninsolvency law, except to the extent that—</text>
<clause id="ID43e4b764efa545c4a1635387e416d5ac"><enum>(i)</enum><text>the
claim of the creditor against the covered financial company is
disallowed;</text>
</clause><clause id="IDf1cc9ff9b03e4de994d796a70b4d0c2a"><enum>(ii)</enum><text>the
claim was transferred, by an entity other than the covered financial company,
to the creditor—</text>
<subclause id="ID9b0a5c29043648f180772c2172fddd3f"><enum>(I)</enum><text>after the
Corporation was appointed as receiver of the covered financial company;
or</text>
</subclause><subclause id="IDefc8747356794445a61dcbd6f47dd910"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="id3FA3AD0CE12C402096271E6893FD7229"><enum>(aa)</enum><text>after the 90-day
period preceding the date on which the Corporation was appointed as receiver
for the covered financial company; and</text>
</item><item id="id91629B33F6124B4099C94754D68B0451" indent="up1"><enum>(bb)</enum><text>while the covered financial company
was insolvent (except for a setoff in connection with a qualified financial
contract); or</text>
</item></subclause></clause><clause id="ID17408518ba604cb4945c5f8338c16408"><enum>(iii)</enum><text>the
debt owed to the covered financial company was incurred by the covered
financial company—</text>
<subclause id="IDef1707aa30b0469fb721c870501948f9"><enum>(I)</enum><text>after the 90-day
period preceding the date on which the Corporation was appointed as receiver
for the covered financial company;</text>
</subclause><subclause id="IDa42cb3ef412445d590a395f81605e053"><enum>(II)</enum><text>while the
covered financial company was insolvent; and</text>
</subclause><subclause id="ID94be7d08ab454fcb8a72d590937a9b77"><enum>(III)</enum><text>for the purpose
of obtaining a right of setoff against the covered financial company (except
for a setoff in connection with a qualified financial contract).</text>
</subclause></clause></subparagraph><subparagraph id="IDb006c4269f4842b4ab5bd82eaa709f7e"><enum>(B)</enum><header>Insufficiency</header>
<clause id="IDea833b6412ed4f14a89a611e830d0660"><enum>(i)</enum><header>In
general</header><text>Except with respect to a setoff in connection with a
qualified financial contract, if a creditor offsets a mutual debt owed to the
covered financial company against a claim of the covered financial company on
or within the 90-day period preceding the date on which the Corporation is
appointed as receiver for the covered financial company, the Corporation may
recover from the creditor the amount so offset, to the extent that any
insufficiency on the date of such setoff is less than the insufficiency on the
later of—</text>
<subclause id="IDe22b50297816430c9e7ded041910e64d"><enum>(I)</enum><text>the
date that is 90 days before the date on which the Corporation is appointed as
receiver for the covered financial company; or</text>
</subclause><subclause id="IDf6e5d8f1128a40c198d0bbb64350bb69"><enum>(II)</enum><text>the
first day on which there is an insufficiency during the 90-day period preceding
the date on which the Corporation is appointed as receiver for the covered
financial company.</text>
</subclause></clause><clause id="IDa58f995242fd44d9b8fae4f6a7e299fc"><enum>(ii)</enum><header>Definition of
insufficiency</header><text>In this subparagraph, the term
<quote>insufficiency</quote> means the amount, if any, by which a claim against
the covered financial company exceeds a mutual debt owed to the covered
financial company by the holder of such claim.</text>
</clause></subparagraph><subparagraph id="idEDEB814B541548C3AE04A008F3A5A87D"><enum>(C)</enum><header>Insolvency</header><text>The
term <term>insolvent</term> has the same meaning as in section 101(32) of the
Bankruptcy Code.</text>
</subparagraph><subparagraph id="ID03dd97c23a3845f78b04e073d39e8c5a"><enum>(D)</enum><header>Presumption of
insolvency</header><text>For purposes of this paragraph, the covered financial
company is presumed to have been insolvent on and during the 90-day period
preceding the date of appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph id="ID3236b0dbd580415c9d1c49b90065554b"><enum>(E)</enum><header>Limitation</header><text>Nothing
in this paragraph (12) shall be the basis for any right of setoff where no such
right exists under applicable noninsolvency law.</text>
</subparagraph><subparagraph id="IDfc2a4a2a40e940598c422d45584e6ee5"><enum>(F)</enum><header>Priority
claim</header><text>Except as otherwise provided in this title, the Corporation
as receiver for the covered financial company may sell or transfer any assets
free and clear of the setoff rights of any party, except that such party shall
be entitled to a claim, subordinate to the claims payable under subparagraphs
(A), (B), and (C) of subsection (b)(1), but senior to all other unsecured
liabilities defined in subsection (b)(1)(D), in an amount equal to the value of
such setoff rights.</text>
</subparagraph></paragraph><paragraph id="ID733aaf6a74bb4e039d86382bf6b9f540"><enum>(13)</enum><header>Attachment of
assets and other injunctive relief</header><text>Subject to paragraph (14), any
court of competent jurisdiction may, at the request of the Corporation as
receiver for a covered financial company, issue an order in accordance with
Rule 65 of the Federal Rules of Civil Procedure, including an order placing the
assets of any person designated by the Corporation under the control of the
court and appointing a trustee to hold such assets.</text>
</paragraph><paragraph id="ID468125b4d5054a11a50ac35e0fdd3638"><enum>(14)</enum><header>Standards</header>
<subparagraph id="ID99daf4b4accd43478a641d45a09de2dc"><enum>(A)</enum><header>Showing</header><text>Rule
65 of the Federal Rules of Civil Procedure shall apply with respect to any
proceeding under paragraph (13), without regard to the requirement that the
applicant show that the injury, loss, or damage is irreparable and
immediate.</text>
</subparagraph><subparagraph id="ID4095e24a12874de082589adf1b1e093a"><enum>(B)</enum><header>State
proceeding</header><text>If, in the case of any proceeding in a State court,
the court determines that rules of civil procedure available under the laws of
the State provide substantially similar protections of the right of the parties
to due process as provided under Rule 65 (as modified with respect to such
proceeding by subparagraph (A)), the relief sought by the Corporation pursuant
to paragraph (14) may be requested under the laws of such State.</text>
</subparagraph></paragraph><paragraph id="ID90ffcba451af4c499fc68cb9a2317e3b"><enum>(15)</enum><header>Treatment of
claims arising from breach of contracts executed by the corporation as
receiver</header><text>Notwithstanding any other provision of this title, any
final and non-appealable judgment for monetary damages entered against the
Corporation as receiver for a covered financial company for the breach of an
agreement executed or approved by the Corporation after the date of its
appointment shall be paid as an administrative expense of the receiver. Nothing
in this paragraph shall be construed to limit the power of a receiver to
exercise any rights under contract or law, including to terminate, breach,
cancel, or otherwise discontinue such agreement.</text>
</paragraph><paragraph id="ID7ecf415a083948e895167d7fca24ea85"><enum>(16)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="IDa616344c254b44fb9a8b22b2ecf97d39"><enum>(A)</enum><header>In
general</header><text>The Corporation as receiver for a covered financial
company shall, consistent with the accounting and reporting practices and
procedures established by the Corporation, maintain a full accounting of each
receivership or other disposition of any covered financial company.</text>
</subparagraph><subparagraph id="IDdc132dd335224c759af7fc52260b25ee"><enum>(B)</enum><header>Annual
accounting or report</header><text>With respect to each receivership to which
the Corporation is appointed, the Corporation shall make an annual accounting
or report, as appropriate, available to the Secretary and the Comptroller
General of the United States.</text>
</subparagraph><subparagraph id="ID022ce252039f43f98c61770eddcb6230"><enum>(C)</enum><header>Availability of
reports</header><text>Any report prepared pursuant to subparagraph (B) and
section 203(c)(3) shall be made available to the public by the
Corporation.</text>
</subparagraph><subparagraph id="ID259ec9392deb4002b803c2c7ab57cb7f"><enum>(D)</enum><header>Recordkeeping
requirement</header>
<clause commented="no" id="IDad74565d36bc45dfb96f20aa44e86127"><enum>(i)</enum><header>In
general</header><text>The Corporation shall prescribe such regulations and
establish such retention schedules as are necessary to maintain the documents
and records of the Corporation generated in exercising the authorities of this
title and the records of a covered financial company for which the Corporation
is appointed receiver, with due regard for—</text>
<subclause commented="no" id="ID0234902199fa48a3b7717bc6f2a36bc7"><enum>(I)</enum><text>the avoidance of
duplicative record retention; and</text>
</subclause><subclause commented="no" id="IDff16ed13f61849a7bb73dcc57b0ca86d"><enum>(II)</enum><text>the expected
evidentiary needs of the Corporation as receiver for a covered financial
company and the public regarding the records of covered financial
companies.</text>
</subclause></clause><clause commented="no" id="ID08ecec7fbff14690844c701d8410915e"><enum>(ii)</enum><header>Retention of
records</header><text>Unless otherwise required by applicable Federal law or
court order, the Corporation may not, at any time, destroy any records that are
subject to clause (i).</text>
</clause><clause id="ID0723933ef1004f46918f797710676e01"><enum>(iii)</enum><header>Records
defined</header><text>As used in this subparagraph, the terms
<term>records</term> and <term>records of a covered financial company</term>
mean any document, book, paper, map, photograph, microfiche, microfilm,
computer or electronically-created record generated or maintained by the
covered financial company in the course of and necessary to its transaction of
business.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID51e5e0fbc9c44c64829c2127679237c5"><enum>(b)</enum><header>Priority of
expenses and unsecured claims</header>
<paragraph id="ID1fae47b7e45649689fa418b03c800846"><enum>(1)</enum><header>In
general</header><text>Unsecured claims against a covered financial company, or
the Corporation as receiver for such covered financial company under this
section, that are proven to the satisfaction of the receiver shall have
priority in the following order:</text>
<subparagraph id="IDd8ff047ec37a42148a743c24d914281a"><enum>(A)</enum><text>Administrative
expenses of the receiver.</text>
</subparagraph><subparagraph id="IDaec817ae21604959b3fba0eb8201589a"><enum>(B)</enum><text>Any amounts owed
to the United States, unless the United States agrees or consents
otherwise.</text>
</subparagraph><subparagraph id="ID48cb702f4a8e4089b4041eea38d66365"><enum>(C)</enum><text>Any other general
or senior liability of the covered financial company (which is not a liability
described under subparagraph (D) or (E)).</text>
</subparagraph><subparagraph id="IDde929aaff7f44187b913c04215be01e6"><enum>(D)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (E)).</text>
</subparagraph><subparagraph id="IDca7ccad3ab6841a4a05b7b29ee37dc07"><enum>(E)</enum><text>Any obligation to
shareholders, members, general partners, limited partners, or other persons,
with interests in the equity of the covered financial company arising as a
result of their status as shareholders, members, general partners, limited
partners, or other persons with interests in the equity of the covered
financial company.</text>
</subparagraph></paragraph><paragraph id="IDa76758ac318841fcb8851da3dbab0ee2"><enum>(2)</enum><header>Post-receivership
financing priority</header><text>In the event that the Corporation, as receiver
for a covered financial company, is unable to obtain unsecured credit for the
covered financial company from commercial sources, the Corporation as receiver
may obtain credit or incur debt on the part of the covered financial company,
which shall have priority over any or all administrative expenses of the
receiver under paragraph (1)(A).</text>
</paragraph><paragraph id="ID67c8c274d4594cf4bc1751742228c9cc"><enum>(3)</enum><header>Claims of the
United States</header><text>Unsecured claims of the United States shall, at a
minimum, have a higher priority than liabilities of the covered financial
company that count as regulatory capital.</text>
</paragraph><paragraph id="ID0cf0c46885a843d6b010026a9ed2fca8"><enum>(4)</enum><header>Creditors
similarly situated</header><text>All claimants of a covered financial company
that are similarly situated under paragraph (1) shall be treated in a similar
manner, except that the Corporation as receiver may take any action (including
making payments, subject to subsection (o)(1)(E)(ii)) that does not comply with
this subsection, if—</text>
<subparagraph id="ID03b01dd041224e428e1a567fbb48312e"><enum>(A)</enum><text>the Corporation
determines that such action is necessary—</text>
<clause id="ID95228600faff4226956a82171c3b04aa"><enum>(i)</enum><text>to
maximize the value of the assets of the covered financial company;</text>
</clause><clause id="ID67585c4faa294dbfb070d2ba53791ca1"><enum>(ii)</enum><text>to
maximize the present value return from the sale or other disposition of the
assets of the covered financial company; or</text>
</clause><clause id="ID299a0897eb8d4d3c9a6167ee63cbff9d"><enum>(iii)</enum><text>to
minimize the amount of any loss realized upon the sale or other disposition of
the assets of the covered financial company; and</text>
</clause></subparagraph><subparagraph id="IDc47e8b4a33ad4aa09536b0f60b39e1e5"><enum>(B)</enum><text>all claimants
that are similarly situated under paragraph (1) receive not less than the
amount provided in paragraphs (2) and (3) of subsection (d).</text>
</subparagraph></paragraph><paragraph id="IDcb1baf40d84d4000a9c3a2f6681e8218"><enum>(5)</enum><header>Secured claims
unaffected</header><text>This section shall not affect secured claims or
security entitlements in respect of assets or property held by the covered
financial company, except to the extent that the security is insufficient to
satisfy the claim, and then only with regard to the difference between the
claim and the amount realized from the security.</text>
</paragraph><paragraph id="IDad139667d7204859bb4acf75ea9d37b2"><enum>(6)</enum><header>Priority of
expenses and unsecured claims in the orderly liquidation of sipc
member</header><text>Where the Corporation is appointed as receiver for a
covered broker or dealer, unsecured claims against such covered broker or
dealer, or the Corporation as receiver for such covered broker or dealer under
this section, that are proven to the satisfaction of the receiver under section
205(e), shall have the priority prescribed in paragraph (1), except
that—</text>
<subparagraph id="ID5599ba7fcdcd441a833f39e8adcf70cf"><enum>(A)</enum><text>SIPC shall be
entitled to recover administrative expenses incurred in performing its
responsibilities under section 205 on an equal basis with the Corporation, in
accordance with paragraph (1)(A);</text>
</subparagraph><subparagraph id="IDb595f40e70674dafbdcdbfe231d895bb"><enum>(B)</enum><text>the Corporation
shall be entitled to recover any amounts paid to customers or to SIPC pursuant
to section 205(f), in accordance with paragraph (1)(B);</text>
</subparagraph><subparagraph id="IDb714b8734a2843ba823f1155560fc0f9"><enum>(C)</enum><text>SIPC shall be
entitled to recover any amounts paid out of the SIPC Fund to meet its
obligations under section 205 and under the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa et seq.), which claim shall be subordinate to the
claims payable under subparagraphs (A) and (B) of paragraph (1), but senior to
all other claims; and</text>
</subparagraph><subparagraph id="IDd60e8dfbb38b4236a0a6293e4a70df97"><enum>(D)</enum><text>the Corporation
may, after paying any proven claims to customers under section 205 and the
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), and as
provided above, pay dividends on other proven claims, in its discretion, and to
the extent that funds are available, in accordance with the priorities set
forth in paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="IDd247137845424a058eaa3197e2d2dff8"><enum>(c)</enum><header>Provisions
relating to contracts entered into before appointment of receiver</header>
<paragraph id="ID0ea510cf91324e6aad567e38ba74b446"><enum>(1)</enum><header>Authority to
repudiate contracts</header><text>In addition to any other rights that a
receiver may have, the Corporation as receiver for any covered financial
company may disaffirm or repudiate any contract or lease—</text>
<subparagraph id="IDffd7bdd89a4c4f59a4485fd42e0c9b02"><enum>(A)</enum><text>to which the
covered financial company is a party;</text>
</subparagraph><subparagraph id="IDb9f67d487b15416496ec4cacda6c2f2a"><enum>(B)</enum><text>the performance
of which the Corporation as receiver, in the discretion of the Corporation,
determines to be burdensome; and</text>
</subparagraph><subparagraph id="IDa212b73588eb4cdf86509785c7cd0f4e"><enum>(C)</enum><text>the disaffirmance
or repudiation of which the Corporation as receiver determines, in the
discretion of the Corporation, will promote the orderly administration of the
affairs of the covered financial company.</text>
</subparagraph></paragraph><paragraph id="ID531bcc1323b0402aa37b5bf2d1502ae6"><enum>(2)</enum><header>Timing of
repudiation</header><text>The Corporation, as receiver for any covered
financial company, shall determine whether or not to exercise the rights of
repudiation under this section within a reasonable period of time.</text>
</paragraph><paragraph id="ID3f4bc85d05b64b85809dbffc6fb295e2"><enum>(3)</enum><header>Claims for
damages for repudiation</header>
<subparagraph id="ID5380f67eb1674b76a7925acd0cd8d409"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraphs (4), (5), and (6) and in
subparagraphs (C), (D), and (E) of this paragraph, the liability of the
Corporation as receiver for a covered financial company for the disaffirmance
or repudiation of any contract pursuant to paragraph (1) shall be—</text>
<clause id="IDfba047be7d064687ba3ad672ea794aaf"><enum>(i)</enum><text>limited
to actual direct compensatory damages; and</text>
</clause><clause id="IDb51a2569ffc84d459031f0417df1f8ef"><enum>(ii)</enum><text>determined as
of—</text>
<subclause id="ID51bdbf0cf4654c75a72b00be3db22f2b"><enum>(I)</enum><text>the
date of the appointment of the Corporation as receiver; or</text>
</subclause><subclause id="IDf7f5260bf98942518c9733ff4e67cddb"><enum>(II)</enum><text>in
the case of any contract or agreement referred to in paragraph (8), the date of
the disaffirmance or repudiation of such contract or agreement.</text>
</subclause></clause></subparagraph><subparagraph id="ID85caa8fecd0c4dd3b2518374c90900d5"><enum>(B)</enum><header>No liability
for other damages</header><text>For purposes of subparagraph (A), the term
<quote>actual direct compensatory damages</quote> does not include—</text>
<clause id="IDd1fb5e0b9c344a38b8113daed2d2ab40"><enum>(i)</enum><text>punitive or
exemplary damages;</text>
</clause><clause id="IDea06df1a2bfa47c2acf8c1301b56d552"><enum>(ii)</enum><text>damages for lost
profits or opportunity; or</text>
</clause><clause id="IDd5e0339197da455db7017b1dd8d5472a"><enum>(iii)</enum><text>damages for
pain and suffering.</text>
</clause></subparagraph><subparagraph id="IDedb8f2dc60a94ae4904d7c8f2434d0da"><enum>(C)</enum><header>Measure of
damages for repudiation of qualified financial contracts</header><text>In the
case of any qualified financial contract or agreement to which paragraph (8)
applies, compensatory damages shall be—</text>
<clause id="IDaeea8740de5043cb83b129dbe335198f"><enum>(i)</enum><text>deemed
to include normal and reasonable costs of cover or other reasonable measures of
damages utilized in the industries for such contract and agreement claims;
and</text>
</clause><clause id="IDb851eb2f00944cf486027665abd6a19b"><enum>(ii)</enum><text>paid
in accordance with this paragraph and subsection (d), except as otherwise
specifically provided in this subsection.</text>
</clause></subparagraph><subparagraph id="ID6457eb8fe9074ad0a61ed21d7ec1f1b7"><enum>(D)</enum><header>Measure of
damages for repudiation or disaffirmance of debt obligation</header><text>In
the case of any debt for borrowed money or evidenced by a security, actual
direct compensatory damages shall be no less than the amount lent plus accrued
interest plus any accreted original issue discount as of the date the
Corporation was appointed receiver of the covered financial company and, to the
extent that an allowed secured claim is secured by property the value of which
is greater than the amount of such claim and any accrued interest through the
date of repudiation or disaffirmance, such accrued interest pursuant to
paragraph (1).</text>
</subparagraph><subparagraph id="IDdf34dfd906f547ce8355e39045ad14f4"><enum>(E)</enum><header>Measure of
damages for repudiation or disaffirmance of contingent
obligation</header><text>In the case of any contingent obligation of a covered
financial company consisting of any obligation under a guarantee, letter of
credit, loan commitment, or similar credit obligation, the Corporation may, by
rule or regulation, prescribe that actual direct compensatory damages shall be
no less than the estimated value of the claim as of the date the Corporation
was appointed receiver of the covered financial company, as such value is
measured based on the likelihood that such contingent claim would become fixed
and the probable magnitude thereof.</text>
</subparagraph></paragraph><paragraph id="IDac0b26ec7f614597876e80da6a06b18b"><enum>(4)</enum><header>Leases under
which the covered financial company is the lessee</header>
<subparagraph id="ID4cfddbc0f2ee4168b1a9c110236698e3"><enum>(A)</enum><header>In
general</header><text>If the Corporation as receiver disaffirms or repudiates a
lease under which the covered financial company is the lessee, the receiver
shall not be liable for any damages (other than damages determined pursuant to
subparagraph (B)) for the disaffirmance or repudiation of such lease.</text>
</subparagraph><subparagraph id="IDf52b6dde095b4c698341019adf655421"><enum>(B)</enum><header>Payments of
rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease
to which subparagraph (A) would otherwise apply shall—</text>
<clause id="ID32895b0bc4234cfe82c718ac8ded309d"><enum>(i)</enum><text>be
entitled to the contractual rent accruing before the later of the date on
which—</text>
<subclause id="ID05346f86a7e54b058359791faf8b5c48"><enum>(I)</enum><text>the
notice of disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="IDfdf3ac6b4ec049a197a11450fe668646"><enum>(II)</enum><text>the
disaffirmance or repudiation becomes effective, unless the lessor is in default
or breach of the terms of the lease;</text>
</subclause></clause><clause id="ID658f940b43d146268e61c16ecd4de713"><enum>(ii)</enum><text>have
no claim for damages under any acceleration clause or other penalty provision
in the lease; and</text>
</clause><clause id="ID21d483f75efa489c94ac084df41c9f14"><enum>(iii)</enum><text>have
a claim for any unpaid rent, subject to all appropriate offsets and defenses,
due as of the date of the appointment which shall be paid in accordance with
this paragraph and subsection (d).</text>
</clause></subparagraph></paragraph><paragraph id="ID585ab513a4bf498c9950a3e86754ed44"><enum>(5)</enum><header>Leases under
which the covered financial company is the lessor</header>
<subparagraph id="ID9353507b0a4c4225bb84be2ab6ed09f9"><enum>(A)</enum><header>In
general</header><text>If the Corporation as receiver for a covered financial
company repudiates an unexpired written lease of real property of the covered
financial company under which the covered financial company is the lessor and
the lessee is not, as of the date of such repudiation, in default, the lessee
under such lease may either—</text>
<clause id="IDc54bda6cf7ed4ef3b0fb37abebe3860c"><enum>(i)</enum><text>treat
the lease as terminated by such repudiation; or</text>
</clause><clause id="IDec7b50d7c47b4796845dd6566f3735ba"><enum>(ii)</enum><text>remain
in possession of the leasehold interest for the balance of the term of the
lease, unless the lessee defaults under the terms of the lease after the date
of such repudiation.</text>
</clause></subparagraph><subparagraph id="IDd1b5c9d92ad44d979ea50d471045ce24"><enum>(B)</enum><header>Provisions
applicable to lessee remaining in possession</header><text>If any lessee under
a lease described in subparagraph (A) remains in possession of a leasehold
interest pursuant to clause (ii) of subparagraph (A)—</text>
<clause id="ID3501a6521c404da292fa6f57bc26d16e"><enum>(i)</enum><text>the
lessee—</text>
<subclause id="IDdc9f89fb81584294aa4ce335f684caea"><enum>(I)</enum><text>shall continue to
pay the contractual rent pursuant to the terms of the lease after the date of
the repudiation of such lease; and</text>
</subclause><subclause id="IDe2a67c0116184dea803fa784b255ba30"><enum>(II)</enum><text>may
offset against any rent payment which accrues after the date of the repudiation
of the lease, any damages which accrue after such date due to the
nonperformance of any obligation of the covered financial company under the
lease after such date; and</text>
</subclause></clause><clause id="IDc859cc9563414276a48c065a09699bff"><enum>(ii)</enum><text>the
Corporation as receiver shall not be liable to the lessee for any damages
arising after such date as a result of the repudiation, other than the amount
of any offset allowed under clause (i)(II).</text>
</clause></subparagraph></paragraph><paragraph id="ID1d5688c95d754b088b60f24a2e850028"><enum>(6)</enum><header>Contracts for
the sale of real property</header>
<subparagraph id="ID0d56dd65319e4ff186d19037a81e258c"><enum>(A)</enum><header>In
general</header><text>If the receiver repudiates any contract (which meets the
requirements of subsection (a)(6)) for the sale of real property, and the
purchaser of such real property under such contract is in possession and is
not, as of the date of such repudiation, in default, such purchaser may
either—</text>
<clause id="ID820d489c5093475c89895e207894e81c"><enum>(i)</enum><text>treat
the contract as terminated by such repudiation; or</text>
</clause><clause id="ID0e50be96e53a420f94019b2951f5bf56"><enum>(ii)</enum><text>remain
in possession of such real property.</text>
</clause></subparagraph><subparagraph id="ID2aee923ee439445c8cd68e73c268360f"><enum>(B)</enum><header>Provisions
applicable to purchaser remaining in possession</header><text>If any purchaser
of real property under any contract described in subparagraph (A) remains in
possession of such property pursuant to clause (ii) of subparagraph (A)—</text>
<clause id="ID6bc8e12bf298496aa36443657ec75034"><enum>(i)</enum><text>the
purchaser—</text>
<subclause id="ID2fea5b61e50d4b4dba9f9c3b3444926b"><enum>(I)</enum><text>shall continue to
make all payments due under the contract after the date of the repudiation of
the contract; and</text>
</subclause><subclause id="IDcfac396e5590429f9ce5d09b9be9df2e"><enum>(II)</enum><text>may
offset against any such payments any damages which accrue after such date due
to the nonperformance (after such date) of any obligation of the covered
financial company under the contract; and</text>
</subclause></clause><clause id="ID69d82f658c2f4e0688d61204eaaa7579"><enum>(ii)</enum><text>the
Corporation as receiver shall—</text>
<subclause id="IDfd68d9f9272c424fbc3e284ef242002e"><enum>(I)</enum><text>not
be liable to the purchaser for any damages arising after such date as a result
of the repudiation, other than the amount of any offset allowed under clause
(i)(II);</text>
</subclause><subclause id="IDcb7cafca4b27494b97fa6f6df3edd828"><enum>(II)</enum><text>deliver title to
the purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="ID263f343fe5694f3b8d9da7f03e81e925"><enum>(III)</enum><text>have no
obligation under the contract other than the performance required under
subclause (II).</text>
</subclause></clause></subparagraph><subparagraph id="ID44206711bd0342e09969e0611c377bff"><enum>(C)</enum><header>Assignment and
sale allowed</header>
<clause id="IDc7003a3951194c86a93e85a06c7d51b8"><enum>(i)</enum><header>In
general</header><text>No provision of this paragraph shall be construed as
limiting the right of the Corporation as receiver to assign the contract
described in subparagraph (A) and sell the property, subject to the contract
and the provisions of this paragraph.</text>
</clause><clause id="ID41ed40c8a6ab469696c5440895ea5f0d"><enum>(ii)</enum><header>No
liability after assignment and sale</header><text>If an assignment and sale
described in clause (i) is consummated, the Corporation as receiver shall have
no further liability under the contract described in subparagraph (A) or with
respect to the real property which was the subject of such contract.</text>
</clause></subparagraph></paragraph><paragraph id="ID96444b8f980940258a026f4daafc12e7"><enum>(7)</enum><header>Provisions
applicable to service contracts</header>
<subparagraph id="ID1af31cd90ce64f6999635919ce6df5c5"><enum>(A)</enum><header>Services
performed before appointment</header><text>In the case of any contract for
services between any person and any covered financial company for which the
Corporation has been appointed receiver, any claim of such person for services
performed before the date of appointment shall be—</text>
<clause id="ID0ee374865f7e486ab6aba51280fc3228"><enum>(i)</enum><text>a claim
to be paid in accordance with subsections (a), (b), and (d); and</text>
</clause><clause id="IDe3bb258293494e78963f839c2be987cd"><enum>(ii)</enum><text>deemed
to have arisen as of the date on which the receiver was appointed.</text>
</clause></subparagraph><subparagraph id="ID3ffde239ab844c1fba81299510a91be6"><enum>(B)</enum><header>Services
performed after appointment and prior to repudiation</header><text>If, in the
case of any contract for services described in subparagraph (A), the
Corporation as receiver accepts performance by the other person before making
any determination to exercise the right of repudiation of such contract under
this section—</text>
<clause id="ID15bd04dee2ca4255a95a9c55b7c4ac6a"><enum>(i)</enum><text>the
other party shall be paid under the terms of the contract for the services
performed; and</text>
</clause><clause id="IDb99470ac16da4e5ba921dba8629db966"><enum>(ii)</enum><text>the
amount of such payment shall be treated as an administrative expense of the
receivership.</text>
</clause></subparagraph><subparagraph id="ID1f061be2de0d43c2b077a820ca57b12c"><enum>(C)</enum><header>Acceptance of
performance no bar to subsequent repudiation</header><text>The acceptance by
the Corporation as receiver for services referred to in subparagraph (B) in
connection with a contract described in subparagraph (B) shall not affect the
right of the Corporation as receiver to repudiate such contract under this
section at any time after such performance.</text>
</subparagraph></paragraph><paragraph id="IDf29706c8adfb451d95c2e70af2dc8040"><enum>(8)</enum><header>Certain
qualified financial contracts</header>
<subparagraph id="ID60c7e69e537d45528149648f745c7ad5"><enum>(A)</enum><header>Rights of
parties to contracts</header><text>Subject to subsection (a)(8) and paragraphs
(9) and (10) of this subsection, and notwithstanding any other provision of
this section, any other provision of Federal law, or the law of any State, no
person shall be stayed or prohibited from exercising—</text>
<clause id="IDa5f3544dd0db48899c4012b41656dbb4"><enum>(i)</enum><text>any
right that such person has to cause the termination, liquidation, or
acceleration of any qualified financial contract with a covered financial
company which arises upon the date of appointment of the Corporation as
receiver for such covered financial company at any time after such
appointment;</text>
</clause><clause id="IDdfc5c0f442f54338aed91b9bb416ec89"><enum>(ii)</enum><text>any
right under any security agreement or arrangement or other credit enhancement
related to one or more qualified financial contracts described in clause (i);
or</text>
</clause><clause id="ID22d55843e1cf4c44a1dfb1845b601d1e"><enum>(iii)</enum><text>any
right to offset or net out any termination value, payment amount, or other
transfer obligation arising under or in connection with 1 or more contracts or
agreements described in clause (i), including any master agreement for such
contracts or agreements.</text>
</clause></subparagraph><subparagraph id="IDaa6cd9bd722a4cf4a1586d693533ef4c"><enum>(B)</enum><header>Applicability
of other provisions</header><text>Subsection (a)(8) shall apply in the case of
any judicial action or proceeding brought against the Corporation as receiver
referred to in subparagraph (A), or the subject covered financial company, by
any party to a contract or agreement described in subparagraph (A)(i) with such
covered financial company.</text>
</subparagraph><subparagraph id="IDda27617a38414635b878f2e9a77b3378"><enum>(C)</enum><header>Certain
transfers not avoidable</header>
<clause id="IDe2b63b1223f7485aa7ccf550a69a5c8f"><enum>(i)</enum><header>In
general</header><text>Notwithstanding subsection (a)(11), (a)(12), or (c)(12),
section 5242 of the Revised Statutes of the United States, or any other
provision of Federal or State law relating to the avoidance of preferential or
fraudulent transfers, the Corporation, whether acting as the Corporation or as
receiver for a covered financial company, may not avoid any transfer of money
or other property in connection with any qualified financial contract with a
covered financial company.</text>
</clause><clause id="IDb8e3977be0544643b96e473569fbcc02"><enum>(ii)</enum><header>Exception for
certain transfers</header><text>Clause (i) shall not apply to any transfer of
money or other property in connection with any qualified financial contract
with a covered financial company if the transferee had actual intent to hinder,
delay, or defraud such company, the creditors of such company, or the
Corporation as receiver appointed for such company.</text>
</clause></subparagraph><subparagraph id="IDba5b1cb1c06e457a9cf202cfe8cdf14f"><enum>(D)</enum><header>Certain
contracts and agreements defined</header><text>For purposes of this subsection,
the following definitions shall apply:</text>
<clause id="IDc78a629c36434e6795264d339e6ed4d3"><enum>(i)</enum><header>Qualified
financial contract</header><text>The term <term>qualified financial
contract</term> means any securities contract, commodity contract, forward
contract, repurchase agreement, swap agreement, and any similar agreement that
the Corporation determines by regulation, resolution, or order to be a
qualified financial contract for purposes of this paragraph.</text>
</clause><clause id="IDdb105bc649264166b018de75ba2ec24a"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="ID2cc2c49a11dc45f5bf05c9d7bdf09384"><enum>(I)</enum><text>means a contract
for the purchase, sale, or loan of a security, a certificate of deposit, a
mortgage loan, any interest in a mortgage loan, a group or index of securities,
certificates of deposit, or mortgage loans or interests therein (including any
interest therein or based on the value thereof), or any option on any of the
foregoing, including any option to purchase or sell any such security,
certificate of deposit, mortgage loan, interest, group or index, or option, and
including any repurchase or reverse repurchase transaction on any such
security, certificate of deposit, mortgage loan, interest, group or index, or
option (whether or not such repurchase or reverse repurchase transaction is a
<quote>repurchase agreement</quote>, as defined in clause (v));</text>
</subclause><subclause id="IDd1329572d76c46ca8d98db6a137bf059"><enum>(II)</enum><text>does not include
any purchase, sale, or repurchase obligation under a participation in a
commercial mortgage loan unless the Corporation determines by regulation,
resolution, or order to include any such agreement within the meaning of such
term;</text>
</subclause><subclause id="ID1a0ad7a1747d49498ad499e19f55c50d"><enum>(III)</enum><text>means any
option entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="IDefcba79b3574439392522a6ec9b1fe68"><enum>(IV)</enum><text>means the
guarantee (including by novation) by or to any securities clearing agency of
any settlement of cash, securities, certificates of deposit, mortgage loans or
interests therein, group or index of securities, certificates of deposit or
mortgage loans or interests therein (including any interest therein or based on
the value thereof) or an option on any of the foregoing, including any option
to purchase or sell any such security, certificate of deposit, mortgage loan,
interest, group or index, or option (whether or not such settlement is in
connection with any agreement or transaction referred to in subclauses (I)
through (XII) (other than subclause (II)));</text>
</subclause><subclause id="IDe4460152c8d24d1a8eff70a6052c1c38"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="IDc9158ab772d94231b1044418a059e4ad"><enum>(VI)</enum><text>means any
extension of credit for the clearance or settlement of securities
transactions;</text>
</subclause><subclause id="ID9689ea2e15574debb0244ad85b2f3fc9"><enum>(VII)</enum><text>means any loan
transaction coupled with a securities collar transaction, any prepaid
securities forward transaction, or any total return swap transaction coupled
with a securities sale transaction;</text>
</subclause><subclause id="IDa5cf02baa6a94668a82d2b4ed54f19ec"><enum>(VIII)</enum><text>means any
other agreement or transaction that is similar to any agreement or transaction
referred to in this clause;</text>
</subclause><subclause id="IDfdf9dfbdf18b493f8735878a5474c3ec"><enum>(IX)</enum><text>means any
combination of the agreements or transactions referred to in this
clause;</text>
</subclause><subclause id="IDd0be77b1491744439cf6ef2176b2f1e0"><enum>(X)</enum><text>means any option
to enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="IDf6c0cad17beb459db5150ff5ffd8722c"><enum>(XI)</enum><text>means a master
agreement that provides for an agreement or transaction referred to in any of
subclauses (I) through (X), other than subclause (II), together with all
supplements to any such master agreement, without regard to whether the master
agreement provides for an agreement or transaction that is not a securities
contract under this clause, except that the master agreement shall be
considered to be a securities contract under this clause only with respect to
each agreement or transaction under the master agreement that is referred to in
any of subclauses (I) through (X), other than subclause (II); and</text>
</subclause><subclause id="IDa3f7ef58acbc4557bce97eaf720eac05"><enum>(XII)</enum><text>means any
security agreement or arrangement or other credit enhancement related to any
agreement or transaction referred to in this clause, including any guarantee or
reimbursement obligation in connection with any agreement or transaction
referred to in this clause.</text>
</subclause></clause><clause id="ID4dce4babb9024454a20a704c44fb8011"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="IDdea8ef67a2b342a1b8a1c7e97335554e"><enum>(I)</enum><text>with
respect to a futures commission merchant, a contract for the purchase or sale
of a commodity for future delivery on, or subject to the rules of, a contract
market or board of trade;</text>
</subclause><subclause id="ID41dd2b02f3b74e088e889a1a0242ce9b"><enum>(II)</enum><text>with respect to
a foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="ID349b5109edc748f7bc5d25c987d87cdc"><enum>(III)</enum><text>with respect to
a leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="ID8c52d8627cff484b9ff73a7209f1b7d7"><enum>(IV)</enum><text>with respect to
a clearing organization, a contract for the purchase or sale of a commodity for
future delivery on, or subject to the rules of, a contract market or board of
trade that is cleared by such clearing organization, or commodity option traded
on, or subject to the rules of, a contract market or board of trade that is
cleared by such clearing organization;</text>
</subclause><subclause id="ID486150a99c244856b67beab4edf2a154"><enum>(V)</enum><text>with
respect to a commodity options dealer, a commodity option;</text>
</subclause><subclause id="ID8017bfec3ab845e4bce43515936244c7"><enum>(VI)</enum><text>any
other agreement or transaction that is similar to any agreement or transaction
referred to in this clause;</text>
</subclause><subclause id="ID9effd0d7a10c40848e0745e3c88c52da"><enum>(VII)</enum><text>any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="ID74d65a9bad994f0db83550d20a8c0a2a"><enum>(VIII)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="ID383cbd23e84641d2a7a5f8ef318f3273"><enum>(IX)</enum><text>a
master agreement that provides for an agreement or transaction referred to in
any of subclauses (I) through (VIII), together with all supplements to any such
master agreement, without regard to whether the master agreement provides for
an agreement or transaction that is not a commodity contract under this clause,
except that the master agreement shall be considered to be a commodity contract
under this clause only with respect to each agreement or transaction under the
master agreement that is referred to in any of subclauses (I) through (VIII);
or</text>
</subclause><subclause id="IDb829d224d46a475ab83211110fe5310b"><enum>(X)</enum><text>any
security agreement or arrangement or other credit enhancement related to any
agreement or transaction referred to in this clause, including any guarantee or
reimbursement obligation in connection with any agreement or transaction
referred to in this clause.</text>
</subclause></clause><clause id="ID14e01b6518f7434db0914e7e518d18dc"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="ID75e906e050ff45d2837248e34380156c"><enum>(I)</enum><text>a
contract (other than a commodity contract) for the purchase, sale, or transfer
of a commodity or any similar good, article, service, right, or interest which
is presently or in the future becomes the subject of dealing in the forward
contract trade, or product or byproduct thereof, with a maturity date that is
more than 10 days after the date on which the contract is entered into,
including a repurchase or reverse repurchase transaction (whether or not such
repurchase or reverse repurchase transaction is a <quote>repurchase
agreement</quote>, as defined in clause (v)), consignment, lease, swap, hedge
transaction, deposit, loan, option, allocated transaction, unallocated
transaction, or any other similar agreement;</text>
</subclause><subclause id="IDe76108d055f44f448438bfbaebcb4384"><enum>(II)</enum><text>any
combination of agreements or transactions referred to in subclauses (I) and
(III);</text>
</subclause><subclause id="IDece1b5bc060349cb9ec54c809cba114c"><enum>(III)</enum><text>any option to
enter into any agreement or transaction referred to in subclause (I) or
(II);</text>
</subclause><subclause id="IDdb54c9824954485bad40682fd878895d"><enum>(IV)</enum><text>a
master agreement that provides for an agreement or transaction referred to in
subclause (I), (II), or (III), together with all supplements to any such master
agreement, without regard to whether the master agreement provides for an
agreement or transaction that is not a forward contract under this clause,
except that the master agreement shall be considered to be a forward contract
under this clause only with respect to each agreement or transaction under the
master agreement that is referred to in subclause (I), (II), or (III);
or</text>
</subclause><subclause id="IDffd695a77ad241e29b3867d6f71eae4d"><enum>(V)</enum><text>any
security agreement or arrangement or other credit enhancement related to any
agreement or transaction referred to in subclause (I), (II), (III), or (IV),
including any guarantee or reimbursement obligation in connection with any
agreement or transaction referred to in any such subclause.</text>
</subclause></clause><clause id="ID76729b0fc1d0421fa1acb81b72ccfbbc"><enum>(v)</enum><header>Repurchase
agreement</header><text>The term <term>repurchase agreement</term> (which
definition also applies to a reverse repurchase agreement)—</text>
<subclause id="ID9a9c236e2ef747bca1a34878243c06ea"><enum>(I)</enum><text>means an
agreement, including related terms, which provides for the transfer of one or
more certificates of deposit, mortgage related securities (as such term is
defined in section 3 of the Securities Exchange Act of 1934), mortgage loans,
interests in mortgage-related securities or mortgage loans, eligible bankers’
acceptances, qualified foreign government securities (which, for purposes of
this clause, means a security that is a direct obligation of, or that is fully
guaranteed by, the central government of a member of the Organization for
Economic Cooperation and Development, as determined by regulation or order
adopted by the Board of Governors), or securities that are direct obligations
of, or that are fully guaranteed by, the United States or any agency of the
United States against the transfer of funds by the transferee of such
certificates of deposit, eligible bankers’ acceptances, securities, mortgage
loans, or interests with a simultaneous agreement by such transferee to
transfer to the transferor thereof certificates of deposit, eligible bankers’
acceptances, securities, mortgage loans, or interests as described above, at a
date certain not later than 1 year after such transfers or on demand, against
the transfer of funds, or any other similar agreement;</text>
</subclause><subclause id="ID9f6e59681f414b5caa45f05299ce3021"><enum>(II)</enum><text>does not include
any repurchase obligation under a participation in a commercial mortgage loan,
unless the Corporation determines, by regulation, resolution, or order to
include any such participation within the meaning of such term;</text>
</subclause><subclause id="IDd0e0c918ede04780b76f90bfcc109daf"><enum>(III)</enum><text>means any
combination of agreements or transactions referred to in subclauses (I) and
(IV);</text>
</subclause><subclause id="IDc5b204a61d5f49da8bb2bb6b32000734"><enum>(IV)</enum><text>means any option
to enter into any agreement or transaction referred to in subclause (I) or
(III);</text>
</subclause><subclause id="ID6170d792a34b42b8972f5df46040eb12"><enum>(V)</enum><text>means a master
agreement that provides for an agreement or transaction referred to in
subclause (I), (III), or (IV), together with all supplements to any such master
agreement, without regard to whether the master agreement provides for an
agreement or transaction that is not a repurchase agreement under this clause,
except that the master agreement shall be considered to be a repurchase
agreement under this subclause only with respect to each agreement or
transaction under the master agreement that is referred to in subclause (I),
(III), or (IV); and</text>
</subclause><subclause id="ID29eba3d408f144cca644f143fcb2c7c1"><enum>(VI)</enum><text>means any
security agreement or arrangement or other credit enhancement related to any
agreement or transaction referred to in subclause (I), (III), (IV), or (V),
including any guarantee or reimbursement obligation in connection with any
agreement or transaction referred to in any such subclause.</text>
</subclause></clause><clause id="IDa16967c944c74aae96fcc48890e5c4ff"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="IDcdb4db7bfcd64f968514aa13d5d4ef5b"><enum>(I)</enum><text>any
agreement, including the terms and conditions incorporated by reference in any
such agreement, which is an interest rate swap, option, future, or forward
agreement, including a rate floor, rate cap, rate collar, cross-currency rate
swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or
other foreign exchange, precious metals, or other commodity agreement; a
currency swap, option, future, or forward agreement; an equity index or equity
swap, option, future, or forward agreement; a debt index or debt swap, option,
future, or forward agreement; a total return, credit spread or credit swap,
option, future, or forward agreement; a commodity index or commodity swap,
option, future, or forward agreement; weather swap, option, future, or forward
agreement; an emissions swap, option, future, or forward agreement; or an
inflation swap, option, future, or forward agreement;</text>
</subclause><subclause id="ID33786e2cea0c407b814726ce29b39472"><enum>(II)</enum><text>any
agreement or transaction that is similar to any other agreement or transaction
referred to in this clause and that is of a type that has been, is presently,
or in the future becomes, the subject of recurrent dealings in the swap or
other derivatives markets (including terms and conditions incorporated by
reference in such agreement) and that is a forward, swap, future, option, or
spot transaction on one or more rates, currencies, commodities, equity
securities or other equity instruments, debt securities or other debt
instruments, quantitative measures associated with an occurrence, extent of an
occurrence, or contingency associated with a financial, commercial, or economic
consequence, or economic or financial indices or measures of economic or
financial risk or value;</text>
</subclause><subclause id="ID3d3c0421f63f468691889272681e976b"><enum>(III)</enum><text>any combination
of agreements or transactions referred to in this clause;</text>
</subclause><subclause id="ID86385fb580904900957504a508f9be4a"><enum>(IV)</enum><text>any
option to enter into any agreement or transaction referred to in this
clause;</text>
</subclause><subclause id="ID650e59fea17d43e7bce6a2a29e9e6519"><enum>(V)</enum><text>a
master agreement that provides for an agreement or transaction referred to in
subclause (I), (II), (III), or (IV), together with all supplements to any such
master agreement, without regard to whether the master agreement contains an
agreement or transaction that is not a swap agreement under this clause, except
that the master agreement shall be considered to be a swap agreement under this
clause only with respect to each agreement or transaction under the master
agreement that is referred to in subclause (I), (II), (III), or (IV);
and</text>
</subclause><subclause id="ID8ecabeb5678944f3b1b0719ab6f0bf6a"><enum>(VI)</enum><text>any
security agreement or arrangement or other credit enhancement related to any
agreement or transaction referred to in any of clauses (I) through (V),
including any guarantee or reimbursement obligation in connection with any
agreement or transaction referred to in any such clause.</text>
</subclause></clause><clause id="ID523fe3446fd24ab69c8e1db728ec1465"><enum>(vii)</enum><header>Definitions
relating to default</header><text>When used in this paragraph and paragraph
(10)—</text>
<subclause id="ID8e83294736f7407c84c403c240665c36"><enum>(I)</enum><text>the
term <term>default</term> means, with respect to a covered financial company,
any adjudication or other official decision by any court of competent
jurisdiction, or other public authority pursuant to which the Corporation has
been appointed receiver; and</text>
</subclause><subclause id="IDb90115f4f4a049d3869942347beeaed8"><enum>(II)</enum><text>the
term <term>in danger of default</term> means a covered financial company with
respect to which the Corporation or appropriate State authority has determined
that—</text>
<item id="IDa3d04ccbcc23467d9e6f74c7552ffc5a"><enum>(aa)</enum><text>in the
opinion of the Corporation or such authority—</text>
<subitem id="IDd518234a580a4b82a0b0a409432e8fc1"><enum>(AA)</enum><text>the
covered financial company is not likely to be able to pay its obligations in
the normal course of business; and</text>
</subitem><subitem id="ID6d70a13a13674360af783e412a63b20e"><enum>(BB)</enum><text>there
is no reasonable prospect that the covered financial company will be able to
pay such obligations without Federal assistance; or</text>
</subitem></item><item id="ID461ae377a7324751b797b894015039b0"><enum>(bb)</enum><text>in the
opinion of the Corporation or such authority—</text>
<subitem id="IDc67555d9d92d437ebe2162ddca8fa10a"><enum>(AA)</enum><text>the
covered financial company has incurred or is likely to incur losses that will
deplete all or substantially all of its capital; and</text>
</subitem><subitem id="ID1910f02572b548b2a658d0773899905b"><enum>(BB)</enum><text>there
is no reasonable prospect that the capital will be replenished without Federal
assistance.</text>
</subitem></item></subclause></clause><clause id="ID48f2e8bb90804edbbfed2f85183b19c4"><enum>(viii)</enum><header>Treatment of
master agreement as one agreement</header><text>Any master agreement for any
contract or agreement described in any of clauses (i) through (vi) (or any
master agreement for such master agreement or agreements), together with all
supplements to such master agreement, shall be treated as a single agreement
and a single qualified financial contact. If a master agreement contains
provisions relating to agreements or transactions that are not themselves
qualified financial contracts, the master agreement shall be deemed to be a
qualified financial contract only with respect to those transactions that are
themselves qualified financial contracts.</text>
</clause><clause id="ID9c4e71d5aa8644fe98bfb0f8e6ea21e8"><enum>(ix)</enum><header>Transfer</header><text>The
term <term>transfer</term> means every mode, direct or indirect, absolute or
conditional, voluntary or involuntary, of disposing of or parting with property
or with an interest in property, including retention of title as a security
interest and foreclosure of the equity of redemption of the covered financial
company.</text>
</clause><clause id="ID04acc28bf72d439bbb38a8ed1dc50133"><enum>(x)</enum><header>Person</header><text>The
term <term>person</term> includes any governmental entity in addition to any
entity included in the definition of such term in section 1, title 1, United
States Code.</text>
</clause></subparagraph><subparagraph id="IDd26aebb6ea384b248ef0f8c44b088338"><enum>(E)</enum><header>Clarification</header><text>No
provision of law shall be construed as limiting the right or power of the
Corporation, or authorizing any court or agency to limit or delay, in any
manner, the right or power of the Corporation to transfer any qualified
financial contract in accordance with paragraphs (9) and (10) of this
subsection or to disaffirm or repudiate any such contract in accordance with
subsection (c)(1).</text>
</subparagraph><subparagraph id="ID7e7298c059b14d6ab5c11851d649304e"><enum>(F)</enum><header>Walkaway
clauses not effective</header>
<clause id="IDf02345f07a804bdbb9c2c4c7ddc4f425"><enum>(i)</enum><header>In
general</header><text>Notwithstanding the provisions of subparagraph (A) of
this paragraph and sections 403 and 404 of the Federal Deposit Insurance
Corporation Improvement Act of 1991, no walkaway clause shall be enforceable in
a qualified financial contract of a covered financial company in
default.</text>
</clause><clause id="IDcbf99ce1799842c6ae2f83ca82321983"><enum>(ii)</enum><header>Limited
suspension of certain obligations</header><text>In the case of a qualified
financial contract referred to in clause (i), any payment or delivery
obligations otherwise due from a party pursuant to the qualified financial
contract shall be suspended from the time at which the Corporation is appointed
as receiver until the earlier of—</text>
<subclause id="ID17629d558763444193b7641df272e485"><enum>(I)</enum><text>the
time at which such party receives notice that such contract has been
transferred pursuant to paragraph (10)(A); or</text>
</subclause><subclause id="IDcf29c72c1a894ee99260a8ded95698fe"><enum>(II)</enum><text>5:00 p.m.
(eastern time) on the 5th business day following the date of the appointment of
the Corporation as receiver.</text>
</subclause></clause><clause id="ID7d5a0c054d01427a8a7b373c2394abb5"><enum>(iii)</enum><header>Walkaway
clause defined</header><text>For purposes of this subparagraph, the term
<term>walkaway clause</term> means any provision in a qualified financial
contract that suspends, conditions, or extinguishes a payment obligation of a
party, in whole or in part, or does not create a payment obligation of a party
that would otherwise exist, solely because of the status of such party as a
nondefaulting party in connection with the insolvency of a covered financial
company that is a party to the contract or the appointment of or the exercise
of rights or powers by the Corporation as receiver for such covered financial
company, and not as a result of the exercise by a party of any right to offset,
setoff, or net obligations that exist under the contract, any other contract
between those parties, or applicable law.</text>
</clause><clause id="ID03ed6db8a65d40b6bf37a302c4ca2d3f"><enum>(iv)</enum><header>Certain
obligations to clearing organizations</header><text>In the event that the
Corporation has been appointed as receiver for a covered financial company
which is a party to any qualified financial contract cleared by or subject to
the rules of a clearing organization (as defined in subsection (c)(9)(D)), the
receiver shall use its best efforts to meet all margin, collateral, and
settlement obligations of the covered financial company that arise under
qualified financial contracts (other than any margin, collateral, or settlement
obligation that is not enforceable against the receiver under paragraph
(8)(F)(i) or paragraph (10)(B)), as required by the rules of the clearing
organization when due, and such obligations shall not be suspended pursuant to
paragraph (8)(F)(ii). Notwithstanding paragraph (8)(F)(ii) or (10)(B), if the
receiver fails to satisfy any such margin, collateral, or settlement
obligations under the rules of the clearing organization, the clearing
organization shall have the immediate right to exercise, and shall not be
stayed from exercising, all of its rights and remedies under its rules and
applicable law with respect to any qualified financial contract of the covered
financial company, including, without limitation, the right to liquidate all
positions and collateral of such covered financial company under the company's
qualified financial contracts, and suspend or cease to act for such covered
financial company, all in accordance with the rules of the clearing
organization.</text>
</clause></subparagraph><subparagraph commented="no" id="ID22b9b785ef3b4a82bcff7a4e860021af"><enum>(G)</enum><header>Recordkeeping</header>
<clause commented="no" id="ID6a9a56fc8969494282228e5d03ac21cd"><enum>(i)</enum><header>Joint
rulemaking</header><text>The Federal primary financial regulatory agencies
shall jointly prescribe regulations requiring that financial companies maintain
such records with respect to qualified financial contracts (including market
valuations) that the Federal primary financial regulatory agencies determine to
be necessary or appropriate in order to assist the Corporation as receiver for
a covered financial company in being able to exercise its rights and fulfill
its obligations under this paragraph or paragraph (9) or (10).</text>
</clause><clause commented="no" id="IDd58a01151dff43cf9327f4ad5e7e3fa7"><enum>(ii)</enum><header>Timeframe</header><text>The
Federal primary financial regulatory agencies shall prescribe joint final or
interim final regulations not later than 24 months after the date of enactment
of this Act.</text>
</clause><clause commented="no" id="ID95275699a97c41c9b54776e14662ad02"><enum>(iii)</enum><header>Back-Up
rulemaking authority</header><text>If the Federal primary financial regulatory
agencies do not prescribe joint final or interim final regulations within the
time frame in clause (ii), the Chairperson of the Council shall prescribe, in
consultation with the Corporation, the regulations required by clause
(i).</text>
</clause><clause commented="no" id="ID10e4e55828434e868b02d1903e1df117"><enum>(iv)</enum><header>Categorization
and tiering</header><text>The joint regulations prescribed under clause (i)
shall, as appropriate, differentiate among financial companies by taking into
consideration their size, risk, complexity, leverage, frequency and dollar
amount of qualified financial contracts, interconnectedness to the financial
system, and any other factors deemed appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="ID4740cdff8fcf4e2b961567285aba0c40"><enum>(9)</enum><header>Transfer of
qualified financial contracts</header>
<subparagraph id="ID73876042bf474c94822415ca7b4be639"><enum>(A)</enum><header>In
general</header><text>In making any transfer of assets or liabilities of a
covered financial company in default, which includes any qualified financial
contract, the Corporation as receiver for such covered financial company shall
either—</text>
<clause id="ID8b92f208c5ad4aaf94cd5a5a2ec66676"><enum>(i)</enum><text>transfer to one
financial institution, other than a financial institution for which a
conservator, receiver, trustee in bankruptcy, or other legal custodian has been
appointed or which is otherwise the subject of a bankruptcy or insolvency
proceeding—</text>
<subclause id="IDad65f7b1cd6a46c782d06f7d79850c81"><enum>(I)</enum><text>all
qualified financial contracts between any person or any affiliate of such
person and the covered financial company in default;</text>
</subclause><subclause id="IDcd25ec8527a040d6a1c4a5983d193de3"><enum>(II)</enum><text>all
claims of such person or any affiliate of such person against such covered
financial company under any such contract (other than any claim which, under
the terms of any such contract, is subordinated to the claims of general
unsecured creditors of such company);</text>
</subclause><subclause id="ID246d34a1f9454e36923efeaf3c4ca6ba"><enum>(III)</enum><text>all claims of
such covered financial company against such person or any affiliate of such
person under any such contract; and</text>
</subclause><subclause id="IDdaf00883a9524da1bddfcd72ec86f4a5"><enum>(IV)</enum><text>all
property securing or any other credit enhancement for any contract described in
subclause (I) or any claim described in subclause (II) or (III) under any such
contract; or</text>
</subclause></clause><clause id="IDb379e5440c844317b4a62d1b74fe6930"><enum>(ii)</enum><text>transfer none of
the qualified financial contracts, claims, property or other credit enhancement
referred to in clause (i) (with respect to such person and any affiliate of
such person).</text>
</clause></subparagraph><subparagraph id="ID2fac87e98dcd4f47adc4284f05ecaee8"><enum>(B)</enum><header>Transfer to
foreign bank, financial institution, or branch or agency
thereof</header><text>In transferring any qualified financial contracts and
related claims and property under subparagraph (A)(i), the Corporation as
receiver for the covered financial company shall not make such transfer to a
foreign bank, financial institution organized under the laws of a foreign
country, or a branch or agency of a foreign bank or financial institution
unless, under the law applicable to such bank, financial institution, branch or
agency, to the qualified financial contracts, and to any netting contract, any
security agreement or arrangement or other credit enhancement related to one or
more qualified financial contracts, the contractual rights of the parties to
such qualified financial contracts, netting contracts, security agreements or
arrangements, or other credit enhancements are enforceable substantially to the
same extent as permitted under this section.</text>
</subparagraph><subparagraph id="ID2179eb5d74c84ee9a3bb71873bc5e49e"><enum>(C)</enum><header>Transfer of
contracts subject to the rules of a clearing organization</header><text>In the
event that the Corporation as receiver for a financial institution transfers
any qualified financial contract and related claims, property, or credit
enhancement pursuant to subparagraph (A)(i) and such contract is cleared by or
subject to the rules of a clearing organization, the clearing organization
shall not be required to accept the transferee as a member by virtue of the
transfer.</text>
</subparagraph><subparagraph id="ID3de4299546b94e1a92a8a6cc9fe04d2c"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph—</text>
<clause id="ID9ab143eb99e541e1b4504cef7934e939"><enum>(i)</enum><text>the
term <term>financial institution</term> means a broker or dealer, a depository
institution, a futures commission merchant, a bridge financial company, or any
other institution determined by the Corporation, by regulation, to be a
financial institution; and</text>
</clause><clause id="IDfd6849ff02ec4687bc6453e001a1a98f"><enum>(ii)</enum><text>the
term <term>clearing organization</term> has the same meaning as in section 402
of the Federal Deposit Insurance Corporation Improvement Act of 1991.</text>
</clause></subparagraph></paragraph><paragraph id="IDb94b3aea1f8c417785f9bc46cfe33677"><enum>(10)</enum><header>Notification
of transfer</header>
<subparagraph id="IDf8364137af1748c19326ae102b589b0e"><enum>(A)</enum><header>In
general</header>
<clause id="ID267ecfafb6314f2e8b76711b0293cb1e"><enum>(i)</enum><header>Notice</header><text>The
Corporation shall provide notice in accordance with clause (ii), if—</text>
<subclause id="ID6063f169b16d45439f723437125bff47"><enum>(I)</enum><text>the
Corporation as receiver for a covered financial company in default or in danger
of default transfers any assets or liabilities of the covered financial
company; and</text>
</subclause><subclause id="IDdcf969fd09174680b0b6186422de3eff"><enum>(II)</enum><text>the
transfer includes any qualified financial contract.</text>
</subclause></clause><clause id="ID04aa6f12b28a4886b4ed759bf34dcafc"><enum>(ii)</enum><header>Timing</header><text>The
Corporation as receiver for a covered financial company shall notify any person
who is a party to any contract described in clause (i) of such transfer not
later than 5:00 p.m. (eastern time) on the 5th business day following the date
of the appointment of the Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="ID9954e2e8bc5a4f87ba00d81abf5f0601"><enum>(B)</enum><header>Certain rights
not enforceable</header>
<clause id="IDd59fef08a7514d96b5cd4bcd428a0396"><enum>(i)</enum><header>Receivership</header><text>A
person who is a party to a qualified financial contract with a covered
financial company may not exercise any right that such person has to terminate,
liquidate, or net such contract under paragraph (8)(A) solely by reason of or
incidental to the appointment under this section of the Corporation as receiver
for the covered financial company (or the insolvency or financial condition of
the covered financial company for which the Corporation has been appointed as
receiver)—</text>
<subclause id="IDd4f5acef498a451fbeef7e28bf272f38"><enum>(I)</enum><text>until 5:00 p.m.
(eastern time) on the 5th business day following the date of the appointment;
or</text>
</subclause><subclause id="ID50eaf61a6e6343e2b6b6e09ff0cb2428"><enum>(II)</enum><text>after the person
has received notice that the contract has been transferred pursuant to
paragraph (9)(A).</text>
</subclause></clause><clause id="IDd862547cd2564e4892ef836cb7d2588b"><enum>(ii)</enum><header>Notice</header><text>For
purposes of this paragraph, the Corporation as receiver for a covered financial
company shall be deemed to have notified a person who is a party to a qualified
financial contract with such covered financial company, if the Corporation has
taken steps reasonably calculated to provide notice to such person by the time
specified in subparagraph (A).</text>
</clause></subparagraph><subparagraph id="ID3868b652e9fa45a6bce6e7c765b77f48"><enum>(C)</enum><header>Treatment of
bridge financial company</header><text>For purposes of paragraph (9), a bridge
financial company shall not be considered to be a covered financial company for
which a conservator, receiver, trustee in bankruptcy, or other legal custodian
has been appointed, or which is otherwise the subject of a bankruptcy or
insolvency proceeding.</text>
</subparagraph><subparagraph id="ID09f711030a884ba093084e1e12bdbd48"><enum>(D)</enum><header>Business day
defined</header><text>For purposes of this paragraph, the term <term>business
day</term> means any day other than any Saturday, Sunday, or any day on which
either the New York Stock Exchange or the Federal Reserve Bank of New York is
closed.</text>
</subparagraph></paragraph><paragraph id="IDbb261e38757a4af385e0dc1ffd09e960"><enum>(11)</enum><header>Disaffirmance
or repudiation of qualified financial contracts</header><text>In exercising the
rights of disaffirmance or repudiation of the Corporation as receiver with
respect to any qualified financial contract to which a covered financial
company is a party, the Corporation shall either—</text>
<subparagraph id="IDa27418c0720f44f3b3cc64795886cd21"><enum>(A)</enum><text>disaffirm or
repudiate all qualified financial contracts between—</text>
<clause id="ID1b3c5c63b93a41f9bc31d81563f12d2f"><enum>(i)</enum><text>any
person or any affiliate of such person; and</text>
</clause><clause id="IDf912fc4297bd45859ad70900ad486a54"><enum>(ii)</enum><text>the
covered financial company in default; or</text>
</clause></subparagraph><subparagraph id="ID80bf843cdc2442b98992c733a5fed6f2"><enum>(B)</enum><text>disaffirm or
repudiate none of the qualified financial contracts referred to in subparagraph
(A) (with respect to such person or any affiliate of such person).</text>
</subparagraph></paragraph><paragraph id="ID3b1a3f69a514433fbc398f2c0e597932"><enum>(12)</enum><header>Certain
security and customer interests not avoidable</header><text>No provision of
this subsection shall be construed as permitting the avoidance of any—</text>
<subparagraph id="ID06379db16e464b5f8c35970843bccd5d"><enum>(A)</enum><text>legally
enforceable or perfected security interest in any of the assets of any covered
financial company, except in accordance with subsection (a)(11); or</text>
</subparagraph><subparagraph id="IDeacc47292a95460e9651475899cad496"><enum>(B)</enum><text>legally
enforceable interest in customer property, security entitlements in respect of
assets or property held by the covered financial company for any security
entitlement holder.</text>
</subparagraph></paragraph><paragraph id="ID32f8ad8a474440319f6ed4211ab9b80f"><enum>(13)</enum><header>Authority to
enforce contracts</header>
<subparagraph id="ID23c5722f3d1a425da77af9737a9a68ee"><enum>(A)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, may enforce any contract, other than a liability insurance contract of
a director or officer, a financial institution bond entered into by the covered
financial company, notwithstanding any provision of the contract providing for
termination, default, acceleration, or exercise of rights upon, or solely by
reason of, insolvency, the appointment of or the exercise of rights or powers
by the Corporation as receiver, the filing of the petition pursuant to section
202(c)(1), or the issuance of the recommendations or determination, or any
actions or events occurring in connection therewith or as a result thereof,
pursuant to section 203.</text>
</subparagraph><subparagraph id="IDefd92c8c669e4b9f9185dc40e5e260a7"><enum>(B)</enum><header>Certain rights
not affected</header><text>No provision of this paragraph may be construed as
impairing or affecting any right of the Corporation as receiver to enforce or
recover under a liability insurance contract of a director or officer or
financial institution bond under other applicable law.</text>
</subparagraph><subparagraph id="ID9d537810100e431d83f4fe897894cc5f"><enum>(C)</enum><header>Consent
requirement and ipso facto clauses</header>
<clause id="IDb4e5083cf6a64e56a7f873069d66ee9f"><enum>(i)</enum><header>In
general</header><text>Except as otherwise provided by this section, no person
may exercise any right or power to terminate, accelerate, or declare a default
under any contract to which the covered financial company is a party (and no
provision in any such contract providing for such default, termination, or
acceleration shall be enforceable), or to obtain possession of or exercise
control over any property of the covered financial company or affect any
contractual rights of the covered financial company, without the consent of the
Corporation as receiver for the covered financial company during the 90 day
period beginning from the appointment of the Corporation as receiver.</text>
</clause><clause id="ID7486579cfe7b4e2ab8b41bf95da25008"><enum>(ii)</enum><header>Exceptions</header><text>No
provision of this subparagraph shall apply to a director or officer liability
insurance contract or a financial institution bond, to the rights of parties to
certain qualified financial contracts pursuant to paragraph (8), or to the
rights of parties to netting contracts pursuant to subtitle A of title IV of
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4401 et seq.), or shall be construed as permitting the Corporation as receiver
to fail to comply with otherwise enforceable provisions of such
contract.</text>
</clause></subparagraph><subparagraph id="IDbd678d20b5b1416f86709922c20342df"><enum>(D)</enum><header>Contracts to
extend credit</header><text>Notwithstanding any other provision in this title,
if the Corporation as receiver enforces any contract to extend credit to the
covered financial company or bridge financial company, any valid and
enforceable obligation to repay such debt shall be paid by the Corporation as
receiver, as an administrative expense of the receivership.</text>
</subparagraph></paragraph><paragraph id="IDbada4b84d8954e4ba7b35593b749630d"><enum>(14)</enum><header>Exception for
Federal reserve banks and corporation security interest</header><text>No
provision of this subsection shall apply with respect to—</text>
<subparagraph id="ID0c7888cb652d42ab830e97d8cb9831b0"><enum>(A)</enum><text>any extension of
credit from any Federal reserve bank or the Corporation to any covered
financial company; or</text>
</subparagraph><subparagraph id="IDc38d32616e5c4c339a146a689ed3a77e"><enum>(B)</enum><text>any security
interest in the assets of the covered financial company securing any such
extension of credit.</text>
</subparagraph></paragraph><paragraph id="ID91dd809db0f64903bdb1780a85a310ad"><enum>(15)</enum><header>Savings
clause</header><text>The meanings of terms used in this subsection are
applicable for purposes of this subsection only, and shall not be construed or
applied so as to challenge or affect the characterization, definition, or
treatment of any similar terms under any other statute, regulation, or rule,
including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act
of 2000, the securities laws (as that term is defined in section 3(a)(47) of
the Securities Exchange Act of 1934), and the Commodity Exchange Act.</text>
</paragraph><paragraph id="ID5352c1b0129546d49c3f2c9b8d3f328c"><enum>(16)</enum><header>Enforcement of
contracts guaranteed by the covered financial company</header>
<subparagraph id="ID58544144ddd24667bfbe68b96769b1f5"><enum>(A)</enum><header>In
General</header><text>The Corporation, as receiver for a covered financial
company or as receiver for a subsidiary of a covered financial company
(including an insured depository institution) shall have the power to enforce
contracts of subsidiaries or affiliates of the covered financial company, the
obligations under which are guaranteed or otherwise supported by or linked to
the covered financial company, notwithstanding any contractual right to cause
the termination, liquidation, or acceleration of such contracts based solely on
the insolvency, financial condition, or receivership of the covered financial
company, if—</text>
<clause id="IDbc906ea14b2c407d82f999a1fb25e569"><enum>(i)</enum><text>such
guaranty or other support and all related assets and liabilities are
transferred to and assumed by a bridge financial company or a third party
(other than a third party for which a conservator, receiver, trustee in
bankruptcy, or other legal custodian has been appointed, or which is otherwise
the subject of a bankruptcy or insolvency proceeding) within the same period of
time as the Corporation is entitled to transfer the qualified financial
contracts of such covered financial company; or</text>
</clause><clause id="id5C1B6FAB25214F6D936947C6286A34F5"><enum>(ii)</enum><text>the
Corporation, as receiver, otherwise provides adequate protection with respect
to such obligations.</text>
</clause></subparagraph><subparagraph commented="no" id="id3BEA71CF01A2491B9D290758A2D886E8"><enum>(B)</enum><header>Rule of
construction</header><text>For purposes of this paragraph, a bridge financial
company shall not be considered to be a third party for which a conservator,
receiver, trustee in bankruptcy, or other legal custodian has been appointed,
or which is otherwise the subject of a bankruptcy or insolvency
proceeding.</text>
</subparagraph></paragraph></subsection><subsection id="ID0818150e32544e49bdffe761050adc07"><enum>(d)</enum><header>Valuation of
claims in default</header>
<paragraph id="ID9765df72512c4ed2a08a0b71604c60f7"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal law or the
law of any State, and regardless of the method utilized by the Corporation for
a covered financial company, including transactions authorized under subsection
(h), this subsection shall govern the rights of the creditors of any such
covered financial company.</text>
</paragraph><paragraph id="IDb03d98803f81485eb26891da4410cec5"><enum>(2)</enum><header>Maximum
liability</header><text>The maximum liability of the Corporation, acting as
receiver for a covered financial company or in any other capacity, to any
person having a claim against the Corporation as receiver or the covered
financial company for which the Corporation is appointed shall equal the amount
that such claimant would have received if—</text>
<subparagraph id="ID8f58cd19f6ee4c79a2a6db927d60d0d5"><enum>(A)</enum><text>the Corporation
had not been appointed receiver with respect to the covered financial company;
and</text>
</subparagraph><subparagraph id="ID4db2a18aee734c538a54fb61ffc137ad"><enum>(B)</enum><text>the covered
financial company had been liquidated under chapter 7 of the Bankruptcy Code,
or any similar provision of State insolvency law applicable to the covered
financial company.</text>
</subparagraph></paragraph><paragraph id="IDa732216b805f4fb9a6a8218bb1e74d9b"><enum>(3)</enum><header>Special
provision for orderly liquidation by sipc</header><text>The maximum liability
of the Corporation, acting as receiver or in its corporate capacity for any
covered broker or dealer to any customer of such covered broker or dealer, with
respect to customer property of such customer, shall be—</text>
<subparagraph id="id6007732CEB0E406DA6D70F1F024BC937"><enum>(A)</enum><text>equal to the
amount that such customer would have received with respect to such customer
property in a case initiated by SIPC under the Securities Investor Protection
Act of 1970 (15 U.S.C. 78aaa et seq.); and</text>
</subparagraph><subparagraph id="id39134223ED6E4E5AB3A32EC3B08842FB"><enum>(B)</enum><text>determined as of
the close of business on the date on which the Corporation is appointed as
receiver.</text>
</subparagraph></paragraph><paragraph id="ID44ab552ec4744d438fa26531c25fba83"><enum>(4)</enum><header>Additional
payments authorized</header>
<subparagraph id="ID25dca7f1b03d40f188045c56abcac7b6"><enum>(A)</enum><header>In
general</header><text>Subject to subsection (o)(1)(E)(ii), the Corporation,
with the approval of the Secretary, may make additional payments or credit
additional amounts to or with respect to or for the account of any claimant or
category of claimants of the covered financial company, if the Corporation
determines that such payments or credits are necessary or appropriate to
minimize losses to the Corporation as receiver from the orderly liquidation of
the covered financial company under this section.</text>
</subparagraph><subparagraph id="id8BEFCDCB56BA454AB7CEEF1D7FF41BBB"><enum>(B)</enum><header>Limitation</header><text>Notwithstanding
any other provision of Federal or State law, or the constitution of any State,
the Corporation shall not be obligated, as a result of having made any payment
under subparagraph (A) or credited any amount described in subparagraph (A) to
or with respect to or for the account of any claimant or category of claimants,
to make payments to any other claimant or category of claimants.</text>
</subparagraph><subparagraph id="ID016eb54c4e464cd7bd9fd94653352bcf"><enum>(C)</enum><header>Manner of
payment</header><text>The Corporation may make payments or credit amounts under
subparagraph (A) directly to the claimants or may make such payments or credit
such amounts to a company other than a covered financial company or a bridge
financial company established with respect thereto in order to induce such
other company to accept liability for such claims.</text>
</subparagraph></paragraph></subsection><subsection id="IDab53f770da7f445393dc9052ed5e0360"><enum>(e)</enum><header>Limitation on
court action</header><text>Except as provided in this title, no court may take
any action to restrain or affect the exercise of powers or functions of the
receiver hereunder, and any remedy against the Corporation or receiver shall be
limited to money damages determined in accordance with this title.</text>
</subsection><subsection id="IDfd592a6009bf42eea15f0dc74a9265c4"><enum>(f)</enum><header>Liability of
directors and officers</header>
<paragraph id="IDb54df78da988464196ebfac38d3bf325"><enum>(1)</enum><header>In
general</header><text>A director or officer of a covered financial company may
be held personally liable for monetary damages in any civil action described in
paragraph (2) by, on behalf of, or at the request or direction of the
Corporation, which action is prosecuted wholly or partially for the benefit of
the Corporation—</text>
<subparagraph id="ID2147e6ce999d4342a380bd25e122cb93"><enum>(A)</enum><text>acting as
receiver for such covered financial company;</text>
</subparagraph><subparagraph id="IDcfde917340b64617a7b0a1f0d844f087"><enum>(B)</enum><text>acting based upon
a suit, claim, or cause of action purchased from, assigned by, or otherwise
conveyed by the Corporation as receiver; or</text>
</subparagraph><subparagraph id="ID383055574123464fa879b3c48eaa56b9"><enum>(C)</enum><text>acting based upon
a suit, claim, or cause of action purchased from, assigned by, or otherwise
conveyed in whole or in part by a covered financial company or its affiliate in
connection with assistance provided under this title.</text>
</subparagraph></paragraph><paragraph id="ID02783569ad2345268ee029c85ecaa5a0"><enum>(2)</enum><header>Actions
covered</header><text>Paragraph (1) shall apply with respect to actions for
gross negligence, including any similar conduct or conduct that demonstrates a
greater disregard of a duty of care (than gross negligence) including
intentional tortious conduct, as such terms are defined and determined under
applicable State law.</text>
</paragraph><paragraph id="ID4d86f7f2e420425e9c86df40bab4832c"><enum>(3)</enum><header>Savings
clause</header><text>Nothing in this subsection shall impair or affect any
right of the Corporation under other applicable law.</text>
</paragraph></subsection><subsection id="ID4d8953d2f4f34bc5950329a7a8da95ae"><enum>(g)</enum><header>Damages</header><text>In
any proceeding related to any claim against a director, officer, employee,
agent, attorney, accountant, or appraiser of a covered financial company, or
any other party employed by or providing services to a covered financial
company, recoverable damages determined to result from the improvident or
otherwise improper use or investment of any assets of the covered financial
company shall include principal losses and appropriate interest.</text>
</subsection><subsection id="ID6822cd1c94e44fed967e6426b941602e"><enum>(h)</enum><header>Bridge
financial companies</header>
<paragraph id="IDc4c95150411e424c99a08129a82b8240"><enum>(1)</enum><header>Organization</header>
<subparagraph id="IDa5f6431ee6684eb08b459fa620f50332"><enum>(A)</enum><header>Purpose</header><text>The
Corporation, as receiver for one or more covered financial companies or in
anticipation of being appointed receiver for one or more covered financial
companies, may organize one or more bridge financial companies in accordance
with this subsection.</text>
</subparagraph><subparagraph id="IDcde6a5201b4c438eaa01b788f6ae86d0"><enum>(B)</enum><header>Authorities</header><text>Upon
the creation of a bridge financial company under subparagraph (A) with respect
to a covered financial company, such bridge financial company may—</text>
<clause id="ID139bf8ce4030424b8e593b45df088aff"><enum>(i)</enum><text>assume
such liabilities (including liabilities associated with any trust or custody
business, but excluding any liabilities that count as regulatory capital) of
such covered financial company as the Corporation may, in its discretion,
determine to be appropriate;</text>
</clause><clause id="IDf800f557167349609e2a3a4dcf75073e"><enum>(ii)</enum><text>purchase such
assets (including assets associated with any trust or custody business) of such
covered financial company as the Corporation may, in its discretion, determine
to be appropriate; and</text>
</clause><clause id="ID0b4cf5c031834dbba507ce6dd88cf111"><enum>(iii)</enum><text>perform any
other temporary function which the Corporation may, in its discretion,
prescribe in accordance with this section.</text>
</clause></subparagraph></paragraph><paragraph id="ID8d92dfa7785641eea29ae6517b2d0c12"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="ID2824e72609834c2680cf3f27c6b008a9"><enum>(A)</enum><header>Establishment</header><text>Except
as provided in subparagraph (H), where the covered financial company is a
covered broker or dealer, the Corporation, as receiver for a covered financial
company, may grant a Federal charter to and approve articles of association for
one or more bridge financial company or companies, with respect to such covered
financial company which shall, by operation of law and immediately upon
issuance of its charter and approval of its articles of association, be
established and operate in accordance with, and subject to, such charter,
articles, and this section.</text>
</subparagraph><subparagraph id="ID9bc1164d17074b21b5c8b924b345e171"><enum>(B)</enum><header>Management</header><text>Upon
its establishment, a bridge financial company shall be under the management of
a board of directors appointed by the Corporation.</text>
</subparagraph><subparagraph id="IDd2a75922a19441158633b1d934169700"><enum>(C)</enum><header>Articles of
association</header><text>The articles of association and organization
certificate of a bridge financial company shall have such terms as the
Corporation may provide, and shall be executed by such representatives as the
Corporation may designate.</text>
</subparagraph><subparagraph id="IDf6fa8eadfac14e099cd71691002ed872"><enum>(D)</enum><header>Terms of
charter; rights and privileges</header><text>Subject to and in accordance with
the provisions of this subsection, the Corporation shall—</text>
<clause id="ID3bcbecca58124d7fb13ffd4f1a4e2eb9"><enum>(i)</enum><text>establish the
terms of the charter of a bridge financial company and the rights, powers,
authorities, and privileges of a bridge financial company granted by the
charter or as an incident thereto; and</text>
</clause><clause id="ID3c326516c26f4510abbf5a8b4594b5d6"><enum>(ii)</enum><text>provide for, and
establish the terms and conditions governing, the management (including the
bylaws and the number of directors of the board of directors) and operations of
the bridge financial company.</text>
</clause></subparagraph><subparagraph id="ID11722becbc834f3685a5eca5bff88dc3"><enum>(E)</enum><header>Transfer of
rights and privileges of covered financial company</header>
<clause id="IDa9c4bfd2c97541408198ef8d9acb4340"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, the Corporation may provide for a bridge financial company to succeed to
and assume any rights, powers, authorities, or privileges of the covered
financial company with respect to which the bridge financial company was
established and, upon such determination by the Corporation, the bridge
financial company shall immediately and by operation of law succeed to and
assume such rights, powers, authorities, and privileges.</text>
</clause><clause id="IDe84e59f32bd94db88b25264bb1b90165"><enum>(ii)</enum><header>Effective
without approval</header><text>Any succession to or assumption by a bridge
financial company of rights, powers, authorities, or privileges of a covered
financial company under clause (i) or otherwise shall be effective without any
further approval under Federal or State law, assignment, or consent with
respect thereto.</text>
</clause></subparagraph><subparagraph id="ID9f8bd9f9ab604cd8a5c0b5c0cd8c2369"><enum>(F)</enum><header>Corporate
governance and election and designation of body of law</header><text>To the
extent permitted by the Corporation and consistent with this section and any
rules, regulations, or directives issued by the Corporation under this section,
a bridge financial company may elect to follow the corporate governance
practices and procedures that are applicable to a corporation incorporated
under the general corporation law of the State of Delaware, or the State of
incorporation or organization of the covered financial company with respect to
which the bridge financial company was established, as such law may be amended
from time to time.</text>
</subparagraph><subparagraph id="ID7aa020ed9a9943ca82579a8c1814db46"><enum>(G)</enum><header>Capital</header>
<clause id="ID8c7d3b0bd376491695f6743ba66f9ab9"><enum>(i)</enum><header>Capital not
required</header><text>Notwithstanding any other provision of Federal or State
law, a bridge financial company may, if permitted by the Corporation, operate
without any capital or surplus, or with such capital or surplus as the
Corporation may in its discretion determine to be appropriate.</text>
</clause><clause id="IDc21af21f0ebc4962ac7c6a7eed80af53"><enum>(ii)</enum><header>No
contribution by the corporation required</header><text>The Corporation is not
required to pay capital into a bridge financial company or to issue any capital
stock on behalf of a bridge financial company established under this
subsection.</text>
</clause><clause id="IDa2451199b7014611a0a3ff1a3e8fd32f"><enum>(iii)</enum><header>Authority</header><text>If
the Corporation determines that such action is advisable, the Corporation may
cause capital stock or other securities of a bridge financial company
established with respect to a covered financial company to be issued and
offered for sale in such amounts and on such terms and conditions as the
Corporation may, in its discretion, determine.</text>
</clause><clause id="IDddb53250f5644eb2b660fddd3bae71b9"><enum>(iv)</enum><header>Operating
funds in lieu of capital and implementation plan</header><text>Upon the
organization of a bridge financial company, and thereafter as the Corporation
may, in its discretion, determine to be necessary or advisable, the Corporation
may make available to the bridge financial company, subject to the plan
described in subsection (n)(13), funds for the operation of the bridge
financial company in lieu of capital.</text>
</clause></subparagraph><subparagraph id="ID62abc4072c8d4497965dbb74c3de2ab2"><enum>(H)</enum><header>Bridge brokers
or dealers</header>
<clause id="id303B68D708AA4B5EB6D094AE4AB7EF87"><enum>(i)</enum><header>In
general</header><text>The Corporation, as receiver for a covered broker or
dealer, may approve articles of association for one or more bridge financial
companies with respect to such covered broker or dealer, which bridge financial
company or companies shall, by operation of law and immediately upon approval
of its articles of association—</text>
<subclause id="id57B56A7C27624BCD8006F1064763473B"><enum>(I)</enum><text>be
established and deemed registered with the Commission under the Securities
Exchange Act of 1934 and a member of SIPC;</text>
</subclause><subclause id="id735032398C554DB0BB6C0CB274A9F312"><enum>(II)</enum><text>operate in
accordance with such articles and this section; and</text>
</subclause><subclause id="id996627B795A246F08DF4556E0093AA27"><enum>(III)</enum><text>succeed to any
and all registrations and memberships of the covered financial company with or
in any self-regulatory organizations.</text>
</subclause></clause><clause id="id41B166C299C8408ABBEBF3036D899817"><enum>(ii)</enum><header>Other
requirements</header><text>Except as provided in clause (i), and
notwithstanding any other provision of this section, the bridge financial
company shall be subject to the Federal securities laws and all requirements
with respect to being a member of a self-regulatory organization, unless
exempted from any such requirements by the Commission, as is necessary or
appropriate in the public interest or for the protection of investors.</text>
</clause><clause id="id035298CF2C914A778168A24060371C21"><enum>(iii)</enum><header>Treatment of
customers</header><text>Except as otherwise provided by this title, any
customer of the covered broker or dealer whose account is transferred to a
bridge financial company shall have all the rights, privileges, and protections
under section 205(f) and under the Securities Investor Protection Act of 1970
(15 U.S.C. 78aaa et seq.), that such customer would have had if the account
were not transferred from the covered financial company under this
subparagraph.</text>
</clause><clause id="IDd794a9a5c9814db7906500834b91f70b"><enum>(iv)</enum><header>Operation of
bridge brokers or dealers</header><text>Notwithstanding any other provision of
this title, the Corporation shall not operate any bridge financial company
created by the Corporation under this title with respect to a covered broker or
dealer in such a manner as to adversely affect the ability of customers to
promptly access their customer property in accordance with applicable
law.</text>
</clause></subparagraph></paragraph><paragraph id="ID9c90a2a736144d0c85672d563d5d0d9f"><enum>(3)</enum><header>Interests in
and assets and obligations of covered financial
company</header><text>Notwithstanding paragraph (1) or (2) or any other
provision of law—</text>
<subparagraph id="id0E9C68F2E37D4C4286EB2C3A22E1D227"><enum>(A)</enum><text>a
bridge financial company shall assume, acquire, or succeed to the assets or
liabilities of a covered financial company (including the assets or liabilities
associated with any trust or custody business) only to the extent that such
assets or liabilities are transferred by the Corporation to the bridge
financial company in accordance with, and subject to the restrictions set forth
in, paragraph (1)(B); and</text>
</subparagraph><subparagraph id="IDeb49e4ec9f5b440e875234ede5abecfe"><enum>(B)</enum><text>a
bridge financial company shall not assume, acquire, or succeed to any
obligation that a covered financial company for which the Corporation has been
appointed receiver may have to any shareholder, member, general partner,
limited partner, or other person with an interest in the equity of the covered
financial company that arises as a result of the status of that person having
an equity claim in the covered financial company.</text>
</subparagraph></paragraph><paragraph id="ID1c787608bce443b1901c48eba65ec240"><enum>(4)</enum><header>Bridge
financial company treated as being in default for certain
purposes</header><text>A bridge financial company shall be treated as a covered
financial company in default at such times and for such purposes as the
Corporation may, in its discretion, determine.</text>
</paragraph><paragraph id="IDbbd6a41c017944f0a16d2fd181e517e9"><enum>(5)</enum><header>Transfer of
assets and liabilities</header>
<subparagraph id="IDabf0958bc18847199bf8415f4537d7fe"><enum>(A)</enum><header>Authority of
corporation</header><text>The Corporation, as receiver for a covered financial
company, may transfer any assets and liabilities of a covered financial company
(including any assets or liabilities associated with any trust or custody
business) to one or more bridge financial companies, in accordance with and
subject to the restrictions of paragraph (1).</text>
</subparagraph><subparagraph id="ID318df351c5a7433b936dbb13151c65fb"><enum>(B)</enum><header>Subsequent
transfers</header><text>At any time after the establishment of a bridge
financial company with respect to a covered financial company, the Corporation,
as receiver, may transfer any assets and liabilities of such covered financial
company as the Corporation may, in its discretion, determine to be appropriate
in accordance with and subject to the restrictions of paragraph (1).</text>
</subparagraph><subparagraph id="ID22afa8caab0546fe89a55e12e5fe879d"><enum>(C)</enum><header>Treatment of
trust or custody business</header><text>For purposes of this paragraph, the
trust or custody business, including fiduciary appointments, held by any
covered financial company is included among its assets and liabilities.</text>
</subparagraph><subparagraph id="IDee8e34213c4e49779a507f67518883f6"><enum>(D)</enum><header>Effective
without approval</header><text>The transfer of any assets or liabilities,
including those associated with any trust or custody business of a covered
financial company, to a bridge financial company shall be effective without any
further approval under Federal or State law, assignment, or consent with
respect thereto.</text>
</subparagraph><subparagraph id="ID4f83946be72a4197b26e60e455838aaf"><enum>(E)</enum><header>Equitable
treatment of similarly situated creditors</header><text>The Corporation shall
treat all creditors of a covered financial company that are similarly situated
under subsection (b)(1), in a similar manner in exercising the authority of the
Corporation under this subsection to transfer any assets or liabilities of the
covered financial company to one or more bridge financial companies established
with respect to such covered financial company, except that the Corporation may
take any action (including making payments, subject to subsection
(o)(1)(E)(ii)) that does not comply with this subparagraph, if—</text>
<clause id="ID4d77e5c65aca49b198e079b9710d0821"><enum>(i)</enum><text>the
Corporation determines that such action is necessary—</text>
<subclause id="IDfc87919503944da8907ec96ffbdeb9c0"><enum>(I)</enum><text>to
maximize the value of the assets of the covered financial company;</text>
</subclause><subclause id="ID4197da60b8ed4f81920c0765462e9e9f"><enum>(II)</enum><text>to
maximize the present value return from the sale or other disposition of the
assets of the covered financial company; or</text>
</subclause><subclause id="IDa825c4e761a74c958d3793100a29250f"><enum>(III)</enum><text>to
minimize the amount of any loss realized upon the sale or other disposition of
the assets of the covered financial company; and</text>
</subclause></clause><clause id="ID80be9a6cdbd345b0852313179a2fb032"><enum>(ii)</enum><text>all
creditors that are similarly situated under subsection (b)(1) receive not less
than the amount provided under paragraphs (2) and (3) of subsection (d).</text>
</clause></subparagraph><subparagraph id="idC2D170E5D4FB414CBE4CA60946AD90B3"><enum>(F)</enum><header>Limitation on
transfer of liabilities</header><text>Notwithstanding any other provision of
law, the aggregate amount of liabilities of a covered financial company that
are transferred to, or assumed by, a bridge financial company from a covered
financial company may not exceed the aggregate amount of the assets of the
covered financial company that are transferred to, or purchased by, the bridge
financial company from the covered financial company.</text>
</subparagraph></paragraph><paragraph id="ID99252dc0dd93449cba3771d8d48fd433"><enum>(6)</enum><header>Stay of
judicial action</header><text>Any judicial action to which a bridge financial
company becomes a party by virtue of its acquisition of any assets or
assumption of any liabilities of a covered financial company shall be stayed
from further proceedings for a period of not longer than 45 days (or such
longer period as may be agreed to upon the consent of all parties) at the
request of the bridge financial company.</text>
</paragraph><paragraph id="ID92f01d7a50d14e58abfd1c23c411bd60"><enum>(7)</enum><header>Agreements
against interest of the bridge financial company</header><text>No agreement
that tends to diminish or defeat the interest of the bridge financial company
in any asset of a covered financial company acquired by the bridge financial
company shall be valid against the bridge financial company, unless such
agreement—</text>
<subparagraph id="id38A79ED8E8594EA1B3BE9329182B2AAF"><enum>(A)</enum><text>is in
writing;</text>
</subparagraph><subparagraph id="idF126A159ED564E94A752EE162C15DAA2"><enum>(B)</enum><text>was executed by
an authorized officer or representative of the covered financial company or
confirmed in the ordinary course of business by the covered financial company;
and</text>
</subparagraph><subparagraph id="id4D7005C0B7B945CDA31A19A4D6A18C86"><enum>(C)</enum><text>has been on the
official record of the company, since the time of its execution, or with which,
the party claiming under the agreement provides documentation of such agreement
and its authorized execution or confirmation by the covered financial company
that is acceptable to the receiver.</text>
</subparagraph></paragraph><paragraph id="ID6a35862a61d248f8b6e5a1a45cd9d3a2"><enum>(8)</enum><header>No
Federal status</header>
<subparagraph id="ID32a7c37af4234c998473fe72d68af47e"><enum>(A)</enum><header>Agency
status</header><text>A bridge financial company is not an agency,
establishment, or instrumentality of the United States.</text>
</subparagraph><subparagraph id="IDf948298a180745eeab4e6f19dc2c2627"><enum>(B)</enum><header>Employee
status</header><text>Representatives for purposes of paragraph (1)(B),
directors, officers, employees, or agents of a bridge financial company are
not, solely by virtue of service in any such capacity, officers or employees of
the United States. Any employee of the Corporation or of any Federal
instrumentality who serves at the request of the Corporation as a
representative for purposes of paragraph (1)(B), director, officer, employee,
or agent of a bridge financial company shall not—</text>
<clause id="ID1f50141190334b3492f1e3816fa7d516"><enum>(i)</enum><text>solely
by virtue of service in any such capacity lose any existing status as an
officer or employee of the United States for purposes of title 5, United States
Code, or any other provision of law; or</text>
</clause><clause id="ID6aaedcb25347464c848bb879b9f637d8"><enum>(ii)</enum><text>receive any
salary or benefits for service in any such capacity with respect to a bridge
financial company in addition to such salary or benefits as are obtained
through employment with the Corporation or such Federal instrumentality.</text>
</clause></subparagraph></paragraph><paragraph id="ID5b98d257fbad4af8b82f50d3b80da97f"><enum>(9)</enum><header>Funding
authorized</header><text>The Corporation may, subject to the plan described in
subsection (n)(13), provide funding to facilitate any transaction described in
subparagraph (A), (B), (C), or (D) of paragraph (13) with respect to any bridge
financial company, or facilitate the acquisition by a bridge financial company
of any assets, or the assumption of any liabilities, of a covered financial
company for which the Corporation has been appointed receiver.</text>
</paragraph><paragraph id="ID4f5e39678338478680ee206d993f0984"><enum>(10)</enum><header>Exempt tax
status</header><text>Notwithstanding any other provision of Federal or State
law, a bridge financial company, its franchise, property, and income shall be
exempt from all taxation now or hereafter imposed by the United States, by any
territory, dependency, or possession thereof, or by any State, county,
municipality, or local taxing authority.</text>
</paragraph><paragraph id="IDdb212be8059b444cb121dc56f6781152"><enum>(11)</enum><header>Federal agency
approval; antitrust review</header><text>If a transaction involving the merger
or sale of a bridge financial company requires approval by a Federal agency,
the transaction may not be consummated before the 5th calendar day after the
date of approval by the Federal agency responsible for such approval with
respect thereto. If, in connection with any such approval a report on
competitive factors from the Attorney General is required, the Federal agency
responsible for such approval shall promptly notify the Attorney General of the
proposed transaction and the Attorney General shall provide the required report
within 10 days of the request. If a notification is required under section 7A
of the Clayton Act with respect to such transaction, the required waiting
period shall end on the 15th day after the date on which the Attorney General
and the Federal Trade Commission receive such notification, unless the waiting
period is terminated earlier under section 7A(b)(2) of the Clayton Act, or
extended under section 7A(e)(2) of that Act.</text>
</paragraph><paragraph id="ID3308002d7ed54c37ab56ddbefc569b25"><enum>(12)</enum><header>Duration of
bridge financial company</header><text>Subject to paragraphs (13) and (14), the
status of a bridge financial company as such shall terminate at the end of the
2-year period following the date on which it was granted a charter. The
Corporation may, in its discretion, extend the status of the bridge financial
company as such for no more than 3 additional 1-year periods.</text>
</paragraph><paragraph id="IDe89b7175249242eeaeca70ebe5987f90"><enum>(13)</enum><header>Termination of
bridge financial company status</header><text>The status of any bridge
financial company as such shall terminate upon the earliest of—</text>
<subparagraph id="ID5dee8c88189b4ba5b3f1c11d5f2e46c2"><enum>(A)</enum><text>the date of the
merger or consolidation of the bridge financial company with a company that is
not a bridge financial company;</text>
</subparagraph><subparagraph id="IDca0cd4b7313d455cb4684808545858df"><enum>(B)</enum><text>at the election
of the Corporation, the sale of a majority of the capital stock of the bridge
financial company to a company other than the Corporation and other than
another bridge financial company;</text>
</subparagraph><subparagraph id="ID148005ac82ed41e9bae148232f9afa47"><enum>(C)</enum><text>the sale of 80
percent, or more, of the capital stock of the bridge financial company to a
person other than the Corporation and other than another bridge financial
company;</text>
</subparagraph><subparagraph id="ID4d152b02686045fc8ee8aca6548848f1"><enum>(D)</enum><text>at the election
of the Corporation, either the assumption of all or substantially all of the
liabilities of the bridge financial company by a company that is not a bridge
financial company, or the acquisition of all or substantially all of the assets
of the bridge financial company by a company that is not a bridge financial
company, or other entity as permitted under applicable law; and</text>
</subparagraph><subparagraph id="ID97e06517670a42548ba117ad5c909f82"><enum>(E)</enum><text>the expiration of
the period provided in paragraph (12), or the earlier dissolution of the bridge
financial company, as provided in paragraph (15).</text>
</subparagraph></paragraph><paragraph id="IDb2abf5d906854ee5af7fd73d9c99e6f6"><enum>(14)</enum><header>Effect of
termination events</header>
<subparagraph id="IDf74688645c6b4d038e9c6f9790011779"><enum>(A)</enum><header>Merger or
consolidation</header><text>A merger or consolidation, described in paragraph
(12)(A) shall be conducted in accordance with, and shall have the effect
provided in, the provisions of applicable law. For the purpose of effecting
such a merger or consolidation, the bridge financial company shall be treated
as a corporation organized under the laws of the State of Delaware (unless the
law of another State has been selected by the bridge financial company in
accordance with paragraph (2)(F)), and the Corporation shall be treated as the
sole shareholder thereof, notwithstanding any other provision of State or
Federal law.</text>
</subparagraph><subparagraph id="IDe8b9ecadadfa4107b125452931afdef3"><enum>(B)</enum><header>Charter
conversion</header><text>Following the sale of a majority of the capital stock
of the bridge financial company, as provided in paragraph (13)(B), the
Corporation may amend the charter of the bridge financial company to reflect
the termination of the status of the bridge financial company as such,
whereupon the company shall have all of the rights, powers, and privileges
under its constituent documents and applicable Federal or State law. In
connection therewith, the Corporation may take such steps as may be necessary
or convenient to reincorporate the bridge financial company under the laws of a
State and, notwithstanding any provisions of Federal or State law, such
State-chartered corporation shall be deemed to succeed by operation of law to
such rights, titles, powers, and interests of the bridge financial company as
the Corporation may provide, with the same effect as if the bridge financial
company had merged with the State-chartered corporation under provisions of the
corporate laws of such State.</text>
</subparagraph><subparagraph id="ID5b4f1186a5e44f0597245164b0fe0a05"><enum>(C)</enum><header>Sale of
stock</header><text>Following the sale of 80 percent or more of the capital
stock of a bridge financial company, as provided in paragraph (13)(C), the
company shall have all of the rights, powers, and privileges under its
constituent documents and applicable Federal or State law. In connection
therewith, the Corporation may take such steps as may be necessary or
convenient to reincorporate the bridge financial company under the laws of a
State and, notwithstanding any provisions of Federal or State law, the
State-chartered corporation shall be deemed to succeed by operation of law to
such rights, titles, powers and interests of the bridge financial company as
the Corporation may provide, with the same effect as if the bridge financial
company had merged with the State-chartered corporation under provisions of the
corporate laws of such State.</text>
</subparagraph><subparagraph id="ID08399ef357874506801cfdde112a1dc1"><enum>(D)</enum><header>Assumption of
liabilities and sale of assets</header><text>Following the assumption of all or
substantially all of the liabilities of the bridge financial company, or the
sale of all or substantially all of the assets of the bridge financial company,
as provided in paragraph (13)(D), at the election of the Corporation, the
bridge financial company may retain its status as such for the period provided
in paragraph (12) or may be dissolved at the election of the
Corporation.</text>
</subparagraph><subparagraph id="ID5389d2f7ec384d43ac9bfe778dd30daf"><enum>(E)</enum><header>Amendments to
charter</header><text>Following the consummation of a transaction described in
subparagraph (A), (B), (C), or (D) of paragraph (13), the charter of the
resulting company shall be amended to reflect the termination of bridge
financial company status, if appropriate.</text>
</subparagraph></paragraph><paragraph id="ID4bb43f37d7cb4cf6a9407899a463bf9f"><enum>(15)</enum><header>Dissolution of
bridge financial company</header>
<subparagraph id="IDa918929564a34e9da0c9ed5a2da03999"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, if the status of a bridge financial company as such has not previously
been terminated by the occurrence of an event specified in subparagraph (A),
(B), (C), or (D) of paragraph (13)—</text>
<clause id="ID90515dc356644fd38ba975840ad392a2"><enum>(i)</enum><text>the
Corporation may, in its discretion, dissolve the bridge financial company in
accordance with this paragraph at any time; and</text>
</clause><clause id="IDb66607ec95194cc79db9c5ea851cdc20"><enum>(ii)</enum><text>the
Corporation shall promptly commence dissolution proceedings in accordance with
this paragraph upon the expiration of the 2-year period following the date on
which the bridge financial company was chartered, or any extension thereof, as
provided in paragraph (12).</text>
</clause></subparagraph><subparagraph id="IDe3f1dfc087a4415a87445ba778e3e4f0"><enum>(B)</enum><header>Procedures</header><text>The
Corporation shall remain the receiver for a bridge financial company for the
purpose of dissolving the bridge financial company. The Corporation as receiver
for a bridge financial company shall wind up the affairs of the bridge
financial company in conformity with the provisions of law relating to the
liquidation of covered financial companies under this title. With respect to
any such bridge financial company, the Corporation as receiver shall have all
the rights, powers, and privileges and shall perform the duties related to the
exercise of such rights, powers, or privileges granted by law to the
Corporation as receiver for a covered financial company under this title and,
notwithstanding any other provision of law, in the exercise of such rights,
powers, and privileges, the Corporation shall not be subject to the direction
or supervision of any State agency or other Federal agency.</text>
</subparagraph></paragraph><paragraph id="ID4069b5cd2d30415e93df59a4fcbb60af"><enum>(16)</enum><header>Authority to
obtain credit</header>
<subparagraph id="ID75ecfc4fd1da4a5c98671e0cc399f67f"><enum>(A)</enum><header>In
general</header><text>A bridge financial company may obtain unsecured credit
and issue unsecured debt.</text>
</subparagraph><subparagraph id="IDf6aa5b72536f4bc6ba040214bc6d9837"><enum>(B)</enum><header>Inability to
obtain credit</header><text>If a bridge financial company is unable to obtain
unsecured credit or issue unsecured debt, the Corporation may authorize the
obtaining of credit or the issuance of debt by the bridge financial
company—</text>
<clause id="IDf60caaee43a8448fac89662cc31f07ef"><enum>(i)</enum><text>with
priority over any or all of the obligations of the bridge financial
company;</text>
</clause><clause id="ID7446d4d228a24c4c9d9ccae0cb3a7bf3"><enum>(ii)</enum><text>secured by a
lien on property of the bridge financial company that is not otherwise subject
to a lien; or</text>
</clause><clause id="IDd4dcdd5b6529451292caecf23994919c"><enum>(iii)</enum><text>secured by a
junior lien on property of the bridge financial company that is subject to a
lien.</text>
</clause></subparagraph><subparagraph id="IDc68e8d4349cf4be8bf53f23a08d279b8"><enum>(C)</enum><header>Limitations</header>
<clause id="ID2a637f93f1be457594a1b8e0b03bc1a1"><enum>(i)</enum><header>In
general</header><text>The Corporation, after notice and a hearing, may
authorize the obtaining of credit or the issuance of debt by a bridge financial
company that is secured by a senior or equal lien on property of the bridge
financial company that is subject to a lien, only if—</text>
<subclause id="IDdbd80cbfb83544888d5425e32c182020"><enum>(I)</enum><text>the
bridge financial company is unable to otherwise obtain such credit or issue
such debt; and</text>
</subclause><subclause id="ID7742874e5c9d427d871e5e67ac504eef"><enum>(II)</enum><text>there is
adequate protection of the interest of the holder of the lien on the property
with respect to which such senior or equal lien is proposed to be
granted.</text>
</subclause></clause><clause id="ID358adb23322b499f947d99ae252e90bf"><enum>(ii)</enum><header>Hearing</header><text>The
hearing required pursuant to this subparagraph shall be before a court of the
United States, which shall have jurisdiction to conduct such hearing.</text>
</clause></subparagraph><subparagraph id="ID75f2bc777c63498ba05edb1d0a12aa3c"><enum>(D)</enum><header>Burden of
proof</header><text>In any hearing under this paragraph, the Corporation has
the burden of proof on the issue of adequate protection.</text>
</subparagraph><subparagraph id="IDd2f5419fbfa54606a896bad8093735e2"><enum>(E)</enum><header>Qualified
financial contracts</header><text>No credit or debt obtained or issued by a
bridge financial company may contain terms that impair the rights of a
counterparty to a qualified financial contract upon a default by the bridge
financial company, other than the priority of such counterparty’s unsecured
claim (after the exercise of rights) relative to the priority of the bridge
financial company’s obligations in respect of such credit or debt, unless such
counterparty consents in writing to any such impairment.</text>
</subparagraph></paragraph><paragraph id="ID8470a2ffbd1943fba4ddbd31bb3e996a"><enum>(17)</enum><header>Effect on
debts and liens</header><text>The reversal or modification on appeal of an
authorization under this subsection to obtain credit or issue debt, or of a
grant under this section of a priority or a lien, does not affect the validity
of any debt so issued, or any priority or lien so granted, to an entity that
extended such credit in good faith, whether or not such entity knew of the
pendency of the appeal, unless such authorization and the issuance of such
debt, or the granting of such priority or lien, were stayed pending
appeal.</text>
</paragraph></subsection><subsection id="IDe415d825b1a84f4b861dfc5607427c17"><enum>(i)</enum><header>Sharing
records</header><text>If the Corporation has been appointed as receiver for a
covered financial company, other Federal regulators shall make all records
relating to the covered financial company available to the Corporation, which
may be used by the Corporation in any manner that the Corporation determines to
be appropriate.</text>
</subsection><subsection id="ID9c80bb9869d4419d93278aaf605a38fc"><enum>(j)</enum><header>Expedited
procedures for certain claims</header>
<paragraph id="ID9721920218174b1f8d72f1a678876b29"><enum>(1)</enum><header>Time for filing
notice of appeal</header><text>The notice of appeal of any order, whether
interlocutory or final, entered in any case brought by the Corporation against
a director, officer, employee, agent, attorney, accountant, or appraiser of the
covered financial company, or any other person employed by or providing
services to a covered financial company, shall be filed not later than 30 days
after the date of entry of the order. The hearing of the appeal shall be held
not later than 120 days after the date of the notice of appeal. The appeal
shall be decided not later than 180 days after the date of the notice of
appeal.</text>
</paragraph><paragraph id="IDcfe16b58d1254dc6a7151daed1d8031e"><enum>(2)</enum><header>Scheduling</header><text>The
court shall expedite the consideration of any case brought by the Corporation
against a director, officer, employee, agent, attorney, accountant, or
appraiser of a covered financial company or any other person employed by or
providing services to a covered financial company. As far as practicable, the
court shall give such case priority on its docket.</text>
</paragraph><paragraph id="ID1381878d2f86451abf7c769a4bf5962a"><enum>(3)</enum><header>Judicial
discretion</header><text>The court may modify the schedule and limitations
stated in paragraphs (1) and (2) in a particular case, based on a specific
finding that the ends of justice that would be served by making such a
modification would outweigh the best interest of the public in having the case
resolved expeditiously.</text>
</paragraph></subsection><subsection id="ID1838575598ea491d855ed5c2bcd68e32"><enum>(k)</enum><header>Foreign
investigations</header><text>The Corporation, as receiver for any covered
financial company, and for purposes of carrying out any power, authority, or
duty with respect to a covered financial company—</text>
<paragraph id="ID86c0a42057874a6598dd6810cce8237b"><enum>(1)</enum><text>may
request the assistance of any foreign financial authority and provide
assistance to any foreign financial authority in accordance with section 8(v)
of the Federal Deposit Insurance Act, as if the covered financial company were
an insured depository institution, the Corporation were the appropriate Federal
banking agency for the company, and any foreign financial authority were the
foreign banking authority; and</text>
</paragraph><paragraph id="IDb00d62f7b3df4acc921dc158a53d18df"><enum>(2)</enum><text>may
maintain an office to coordinate foreign investigations or investigations on
behalf of foreign financial authorities.</text>
</paragraph></subsection><subsection id="ID7a178f397bc1407a942b94cf6ac92116"><enum>(l)</enum><header>Prohibition on
entering secrecy agreements and protective orders</header><text>The Corporation
may not enter into any agreement or approve any protective order which
prohibits the Corporation from disclosing the terms of any settlement of an
administrative or other action for damages or restitution brought by the
Corporation in its capacity as receiver for a covered financial company.</text>
</subsection><subsection id="ID65865397e610480aa14bb3beb44e486f"><enum>(m)</enum><header>Liquidation of
certain covered financial companies or bridge financial companies</header>
<paragraph id="ID1539fe3e2073401b9660927759deeb4f"><enum>(1)</enum><header>In
general</header><text>Except as specifically provided in this section, and
notwithstanding any other provision of law, the Corporation, in connection with
the liquidation of any covered financial company or bridge financial company
with respect to which the Corporation has been appointed as receiver,
shall—</text>
<subparagraph id="ID53f0f1696dbf443a9028e445e25d3435"><enum>(A)</enum><text>in the case of
any covered financial company or bridge financial company that is or has a
subsidiary that is a stockbroker, but is not a member of the Securities
Investor Protection Corporation, apply the provisions of subchapter III of
chapter 7 of the Bankruptcy Code, in respect of the distribution to any
customer of all customer name securities and customer property, as if such
covered financial company or bridge financial company were a debtor for
purposes of such subchapter; or</text>
</subparagraph><subparagraph id="IDd488c5d1949f4f37b36c1938ccf1d905"><enum>(B)</enum><text>in the case of
any covered financial company or bridge financial company that is a commodity
broker, apply the provisions of subchapter IV of chapter 7 the Bankruptcy Code,
in respect of the distribution to any customer of all customer property, as if
such covered financial company or bridge financial company were a debtor for
purposes of such subchapter.</text>
</subparagraph></paragraph><paragraph id="ID0c0810e93d04478facfbfd9399094336"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="IDd37671f681274dc58ec3e378c6ba7388"><enum>(A)</enum><text>the terms
<term>customer</term>, <term>customer name securities</term>, and
<term>customer property</term> have the same meanings as in section 741 of
title 11, United States Code; and</text>
</subparagraph><subparagraph id="IDd55eeb79cc3d42b585dcddf5ebfc1bef"><enum>(B)</enum><text>the terms
<term>commodity broker</term> and <term>stockbroker</term> have the same
meanings as in section 101 of the Bankruptcy Code.</text>
</subparagraph></paragraph></subsection><subsection id="ID9a21812056274efc954fe29fb057cde8"><enum>(n)</enum><header>Orderly
liquidation fund</header>
<paragraph id="ID8e00d2bb0c0c421b97a80ea6e880ce03"><enum>(1)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a separate fund to be known
as the <quote>Orderly Liquidation Fund</quote>, which shall be available to the
Corporation to carry out the authorities contained in this title, for the cost
of actions authorized by this title, including the orderly liquidation of
covered financial companies, payment of administrative expenses, the payment of
principal and interest by the Corporation on obligations issued under paragraph
(9), and the exercise of the authorities of the Corporation under this
title.</text>
</paragraph><paragraph id="ID8f3bb4764c81475ead0b7f6824f1cbd1"><enum>(2)</enum><header>Proceeds</header><text>Amounts
received by the Corporation, including assessments received under subsection
(o), proceeds of obligations issued under paragraph (9), interest and other
earnings from investments, and repayments to the Corporation by covered
financial companies, shall be deposited into the Fund.</text>
</paragraph><paragraph id="IDcc3c7aca1ef74ad3a847ad285280c737"><enum>(3)</enum><header>Management</header><text>The
Corporation shall manage the Fund in accordance with this subsection and the
policies and procedures established under section 203(d).</text>
</paragraph><paragraph id="IDe6645f3b342c4314ab62c21dad522094"><enum>(4)</enum><header>Investments</header><text>The
Corporation shall invest amounts in the Fund in accordance with paragraph
(8).</text>
</paragraph><paragraph id="IDeddc5fb8ef824ec890746ae05daa1755"><enum>(5)</enum><header>Target size of
the fund</header><text>The target size of the Fund (in this section referred to
as <quote>target size</quote>) shall be $50,000,000,000, adjusted for inflation
on a periodic basis by the Corporation.</text>
</paragraph><paragraph id="IDea96e6ec7e9347ce8f763acb74d55860"><enum>(6)</enum><header>Initial
capitalization period</header><text>The Corporation shall impose risk-based
assessments as provided under subsection (o), during the period beginning one
year after the date of enactment of this Act and ending on the date on which
the Fund reaches the target size (in this section referred to as the
<quote>initial capitalization period</quote>), provided that the initial
capitalization period shall be not shorter than 5 years, and not longer than 10
years, after the date of enactment of this Act. The Corporation, with the
approval of the Secretary, may extend the initial capitalization period for a
longer period, as determined necessary by the Corporation, if the Corporation
is appointed receiver for a covered financial company under this title and the
Fund incurs a loss before the expiration of such period.</text>
</paragraph><paragraph id="ID36fc77d8b73e4e98ba577e0af005414b"><enum>(7)</enum><header>Maintaining the
fund</header><text>Upon the expiration of the initial capitalization period,
the Corporation shall suspend assessments, except as set forth in subsection
(o)(1).</text>
</paragraph><paragraph id="ID922dcad3c8f448e19253a20c437f6d8e"><enum>(8)</enum><header>Investments</header><text>At
the request of the Corporation, the Secretary may invest such portion of
amounts held in the Fund that are not, in the judgment of the Corporation,
required to meet the current needs of the Corporation, in obligations of the
United States having suitable maturities, as determined by the Corporation. The
interest on and the proceeds from the sale or redemption of such obligations
shall be credited to the Fund.</text>
</paragraph><paragraph id="ID40d2ec1bfbe54107aa190a7149838abc"><enum>(9)</enum><header>Authority to
issue obligations</header>
<subparagraph id="ID93358dcf2c41487ebc4e0283fce0a9b5"><enum>(A)</enum><header>Corporation
authorized to issue obligations</header><text>Upon appointment by the Secretary
of the Corporation as receiver for a covered financial company, the Corporation
is authorized to issue obligations to the Secretary.</text>
</subparagraph><subparagraph id="IDd5fdceb7b839402fa92b26b119e1fab6"><enum>(B)</enum><header>Secretary
authorized to purchase obligations</header><text>The Secretary may, under such
terms and conditions as the Secretary may require, purchase or agree to
purchase any obligations issued under subparagraph (A), and for such purpose,
the Secretary is authorized to use as a public debt transaction the proceeds of
the sale of any securities issued under chapter 31 of title 31, United States
Code, and the purposes for which securities may be issued under chapter 31 of
title 31, United States Code, are extended to include such purchases.</text>
</subparagraph><subparagraph id="IDc9c32f3a9c1247c0bd9db297e6bc7f99"><enum>(C)</enum><header>Interest
rate</header><text>Each purchase of obligations by the Secretary under this
paragraph shall be upon such terms and conditions as to yield a return at a
rate determined by the Secretary, taking into consideration the current average
yield on outstanding marketable obligations of the United States of comparable
maturity.</text>
</subparagraph><subparagraph id="ID46fed932e6c345a8a7b747680c4d0194"><enum>(D)</enum><header>Secretary
authorized to sell obligations</header><text>The Secretary may sell, upon such
terms and conditions as the Secretary shall determine, any of the obligations
acquired under this paragraph.</text>
</subparagraph><subparagraph id="ID4ff340a8a20e465b81b9ac7fd6157cfb"><enum>(E)</enum><header>Public debt
transactions</header><text>All purchases and sales by the Secretary of such
obligations under this paragraph shall be treated as public debt transactions
of the United States, and the proceeds from the sale of any obligations
acquired by the Secretary under this paragraph shall be deposited into the
Treasury of the United States as miscellaneous receipts.</text>
</subparagraph></paragraph><paragraph id="IDa269058b535347dc8299e3d44da4a59d"><enum>(10)</enum><header>Maximum
obligation limitation</header><text>The Corporation may not, in connection with
the orderly liquidation of a covered financial company, issue or incur any
obligation, if, after issuing or incurring the obligation, the aggregate amount
of such obligations outstanding under this subsection would exceed the sum
of—</text>
<subparagraph id="IDe1ff38f7175e413fb7a737e7a0614d55"><enum>(A)</enum><text>the amount of
cash or the cash equivalents held by the Fund; and</text>
</subparagraph><subparagraph commented="no" id="IDaba809e17f5a4d968d7045ad0b449f20"><enum>(B)</enum><text>the amount that
is equal to 90 percent of the fair value of assets from each covered financial
company that are available to repay the Corporation.</text>
</subparagraph></paragraph><paragraph id="ID7dd4a21211864959bbba095926685aed"><enum>(11)</enum><header>Rulemaking</header><text>The
Corporation and the Secretary shall jointly, in consultation with the Council,
prescribe regulations governing the calculation of the maximum obligation
limitation defined in this paragraph.</text>
</paragraph><paragraph id="ID95a6cc0b236d4f53ac002bf5d0685075"><enum>(12)</enum><header>Reliance on
private sector funding</header><text>The Corporation may exercise its authority
under paragraph (9) only after the cash and cash equivalents held by the Fund
have been drawn down to facilitate the orderly liquidation of a covered
financial company.</text>
</paragraph><paragraph id="ID44f1ac88b8c442c1af2365b6403551a9"><enum>(13)</enum><header>Rule of
construction</header>
<subparagraph id="ID7a3f0c3dccd04dd2b924ace8a13fc2a3"><enum>(A)</enum><header>In
general</header><text>Nothing in this section shall be construed to affect the
authority of the Corporation under subsection (a) or (b) of section 14 or
section 15(c)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1824,
1825(c)(5)), the management of the Deposit Insurance Fund by the Corporation,
or the resolution of insured depository institutions, provided that—</text>
<clause commented="no" id="idC2EE10867C1B4F3EAD857806F170D546"><enum>(i)</enum><text>none of the
authorities contained in this title shall be used to assist the Deposit
Insurance Fund with any of the other responsibilities of the Corporation under
applicable law other than this title; and</text>
</clause><clause commented="no" id="idC263B21AB1344D13B4A64183828C569F"><enum>(ii)</enum><text>the authorities
of the Corporation relating to the Deposit Insurance Fund, or any other
responsibilities of the Corporation, shall not be used to assist a covered
financial company pursuant to this title.</text>
</clause></subparagraph><subparagraph id="IDd33805f235bc4d6584108a8eecfa4c1e"><enum>(B)</enum><header>Valuation</header><text>For
purposes of determining the amount of obligations under this subsection—</text>
<clause id="ID1a6f748f2db4469eaa0640b145a0a7c2"><enum>(i)</enum><text>the
Corporation shall include as an obligation any contingent liability of the
Corporation pursuant to this title; and</text>
</clause><clause id="ID6a47bea7e7db419ea64e1589571a9682"><enum>(ii)</enum><text>the
Corporation shall value any contingent liability at its expected cost to the
Corporation.</text>
</clause></subparagraph></paragraph><paragraph id="IDa309ae1cb30b44beaab7cb68bee7522a"><enum>(14)</enum><header>Orderly
liquidation plan</header><text>Amounts in the Fund shall be available to the
Corporation with regard to a covered financial company for which the
Corporation is appointed receiver after the Corporation has developed an
orderly liquidation plan that is acceptable to the Secretary with regard to
such covered financial company, including the provision and use of funds under
section 204(d) and subsection (h)(2)(G)(iv) and (h)(9) of this section. The
Corporation may, at any time, amend any orderly liquidation plan approved by
the Secretary with the concurrence of the Secretary.</text>
</paragraph></subsection><subsection id="ID0a4c05d1546e49b89b1069b13118ea24"><enum>(o)</enum><header>Assessments</header>
<paragraph id="ID0f045e653c954056aed38787ae772348"><enum>(1)</enum><header>Risk-based
assessments</header>
<subparagraph id="ID8d3302a031ee4720b8705f9f33beefdd"><enum>(A)</enum><header>Assessments to
capitalize the fund</header>
<clause id="ID2f737aef80eb4dabbeba08125d5dc242"><enum>(i)</enum><header>In
general</header><text>Except as provided under subparagraph (C)(ii), the
Corporation shall impose risk-based assessments on eligible financial companies
to capitalize the Fund during the initial capitalization period, taking into
account the considerations set forth in paragraph (4).</text>
</clause><clause id="ID8d80033ff7a04b9f9a30f8fdd3bc6f1d"><enum>(ii)</enum><header>Suspension of
assessments</header><text>The Corporation shall suspend the imposition of
assessments under clause (i) following a determination by the Corporation that
the Fund has reached the target size described in subsection (n).</text>
</clause></subparagraph><subparagraph id="IDf8176a96022047b69ac78284700ea610"><enum>(B)</enum><header>Eligible
financial companies defined</header><text>For purposes of this subsection, the
term <term>eligible financial company</term> means any bank holding company
with total consolidated assets equal to or greater than $50,000,000,000 and any
nonbank financial company supervised by the Board of Governors.</text>
</subparagraph><subparagraph id="ID762c29939da6496388198e40affa4f4d"><enum>(C)</enum><header>Additional
assessments</header><text>The Corporation shall charge one or more risk-based
assessments in accordance with the provisions of subparagraph (E), if—</text>
<clause id="IDb5153c9b4918400780d59fb726eb48c0"><enum>(i)</enum><text>the
Fund falls below the target size after the initial capitalization period, in
order to restore the Fund to the target size over a period of time determined
by the Corporation;</text>
</clause><clause id="ID804760922a6a4c98baee19ad824bb295"><enum>(ii)</enum><text>the
Corporation is appointed receiver for a covered financial company and the Fund
incurs a loss during the initial capitalization period with respect to that
covered financial company; or</text>
</clause><clause id="IDd5abb3a7ed254d6fa52937acea929d4b"><enum>(iii)</enum><text>such
assessments are necessary to pay in full the obligations issued by the
Corporation to the Secretary within 60 months of the date of issuance of such
obligations.</text>
</clause></subparagraph><subparagraph id="ID842611e3612a4b0db73ded4484f2df23"><enum>(D)</enum><header>Extensions
authorized</header><text>The Corporation may, with the approval of the
Secretary, extend the time period under subparagraph (C)(iii), if the
Corporation determines that an extension is necessary to avoid a serious
adverse effect on the financial system of the United States.</text>
</subparagraph><subparagraph id="ID2b1359f09165455d911d7f82fac239bf"><enum>(E)</enum><header>Application of
additional assessments</header><text>To meet the requirements of subparagraph
(C), the Corporation shall, taking into account the considerations set forth in
paragraph (4), impose assessments—</text>
<clause id="ID70bf83f08b9c442bbfc2526b958212ad"><enum>(i)</enum><text>on—</text>
<subclause id="id4E941C5F05C94804AFA87211A7C05E0A"><enum>(I)</enum><text>eligible
financial companies; and</text>
</subclause><subclause id="id07B9EE3DADA2428A8821F0D6C67132F8"><enum>(II)</enum><text>financial
companies with total consolidated assets over $50,000,000,000 that are not
eligible financial companies; and</text>
</subclause></clause><clause id="ID03f1a67a96654f7284010744d639ff6d"><enum>(ii)</enum><text>at a
substantially higher rate than otherwise would be assessed on any financial
company that received payments or credit pursuant to subsection (b)(4), (d)(4),
or (h)(5)(E).</text>
</clause></subparagraph><subparagraph id="IDa66889df12ee43e3862c21c7ca7a74a9"><enum>(F)</enum><header>New eligible
financial companies</header><text>The Corporation shall impose an assessment,
in an amount determined by the Corporation in consultation with the Secretary
and taking into account the considerations set forth in paragraph (4), on any
company that becomes an eligible financial company after the initial
capitalization period.</text>
</subparagraph></paragraph><paragraph id="ID698a428d9da244b5bc9f56f2fd3d7f02"><enum>(2)</enum><header>Graduated
assessment rate</header><text>The Corporation shall impose assessments on a
graduated basis, with financial companies having greater assets being assessed
at a higher rate.</text>
</paragraph><paragraph id="IDc4555e527f35421db3ee0d42432861e0"><enum>(3)</enum><header>Notification
and payment</header><text>The Corporation shall notify each financial company
of that company's assessment under this subsection. Any financial company
subject to assessment under this subsection shall pay such assessment in
accordance with the regulations prescribed pursuant to paragraph (6).</text>
</paragraph><paragraph id="IDfe36440b182a4ec7894437597c88ee72"><enum>(4)</enum><header>Risk-based
assessment considerations</header><text>In imposing assessments under this
subsection, the Corporation shall—</text>
<subparagraph id="IDa3b11d6e3c2444aaa1d299e2fb237683"><enum>(A)</enum><text>take into account
economic conditions generally affecting financial companies, so as to allow
assessments to be lower during less favorable economic conditions;</text>
</subparagraph><subparagraph id="IDd7fe152c0468401688e1dff84740c9f9"><enum>(B)</enum><text>take into account
any assessments imposed on—</text>
<clause id="ID640fc6951cf94b05b1d96e18e18138d1"><enum>(i)</enum><text>an
insured depository institution subsidiary of a financial company pursuant to
section 7 or section 13(c)(4)(G) of the Federal Deposit Insurance Act (12
U.S.C. 1817, 1823(c)(4)(G));</text>
</clause><clause id="IDeeadb4e400c04270b2096aeaee61d642"><enum>(ii)</enum><text>a
financial company or subsidiary of such company that is a member of SIPC
pursuant to section 4 of the Securities Investor Protection Act of 1970 (15
U.S.C. 78ddd); and</text>
</clause><clause id="IDb814098cddfa4559997605ceb2398a19"><enum>(iii)</enum><text>a
financial company or subsidiary of such company that is an insurance company
pursuant to applicable State law to cover (or reimburse payments made to cover)
the costs of rehabilitation, liquidation, or other State insolvency proceeding
with respect to one or more insurance companies;</text>
</clause></subparagraph><subparagraph id="IDe69d2fa3814c4996bd7d3fc249474f14"><enum>(C)</enum><text>take into account
the financial condition of the financial company, including the extent and type
of off-balance-sheet exposures of the financial company;</text>
</subparagraph><subparagraph id="IDff9f5fba63e9402c942a972b024a0fa5"><enum>(D)</enum><text>take into account
the risks presented by the financial company to the financial stability of the
United States economy;</text>
</subparagraph><subparagraph id="ID7cca37dd1bc64cfd8f80f260955ac413"><enum>(E)</enum><text>take into account
the extent to which the financial company or group of financial companies has
benefitted, or likely would benefit, from the orderly liquidation of a covered
financial company and the use of the Fund under this title;</text>
</subparagraph><subparagraph id="IDb174058e1e254dcfaca982ed8fb6245f"><enum>(F)</enum><text>distinguish among
different classes of assets or different types of financial companies
(including distinguishing among different types of financial companies, based
on their levels of capital and leverage) in order to establish comparable
assessment bases among financial companies subject to this subsection;</text>
</subparagraph><subparagraph id="ID25cef2903ab64b528ce3f9e2dd0ede63"><enum>(G)</enum><text>establish the
parameters for the graduated assessment requirement in paragraph (2);
and</text>
</subparagraph><subparagraph id="ID60a97befe9e141628df6d3f02325b508"><enum>(H)</enum><text>take into account
such other factors as the Corporation deems appropriate.</text>
</subparagraph></paragraph><paragraph id="IDd17136cdfa154e4987b292612d0e056c"><enum>(5)</enum><header>Collection of
information</header><text>The Corporation may impose on covered financial
companies such collection of information requirements as the Corporation deems
necessary to carry out this subsection after the appointment of the Corporation
as receiver under this title.</text>
</paragraph><paragraph id="IDeff8bfde690d47e08d72c94407b8e200"><enum>(6)</enum><header>Rulemaking</header>
<subparagraph id="IDaa0ee46ccbc3418abf5bc423b32b0ed4"><enum>(A)</enum><header>In
general</header><text>The Corporation shall, in consultation with the Secretary
and the Council, prescribe regulations to carry out this subsection.</text>
</subparagraph><subparagraph id="ID422bd89cee8e48b1bcaac636ac47963e"><enum>(B)</enum><header>Equitable
treatment</header><text>The regulations prescribed under subparagraph (A) shall
take into account the differences in risks posed to the financial stability of
the United States by financial companies, the differences in the liability
structures of financial companies, and the different bases for other
assessments that such financial companies may be required to pay, to ensure
that assessed financial companies are treated equitably and that assessments
under this subsection reflect such differences.</text>
</subparagraph></paragraph></subsection><subsection id="IDce0d46cfdb894a42aa0ae9cdbfb7d980"><enum>(p)</enum><header>Unenforceability
of certain agreements</header>
<paragraph id="id01618B2D5DFD449F92DA55F27E1E2B50"><enum>(1)</enum><header>In
general</header><text>No provision described in paragraph (2) shall be
enforceable against or impose any liability on any person, as such enforcement
or liability shall be contrary to public policy.</text>
</paragraph><paragraph id="id08C3A050FCAE433F84E6F6905BA1A4A3"><enum>(2)</enum><header>Prohibited
provisions</header><text>A provision described in this paragraph is any term
contained in any existing or future standstill, confidentiality, or other
agreement that, directly or indirectly—</text>
<subparagraph id="ID7ed8d0e959574120b38494b73f7db8e8"><enum>(A)</enum><text>affects,
restricts, or limits the ability of any person to offer to acquire or
acquire;</text>
</subparagraph><subparagraph id="ID5b9117f265f24612bf05ad9d91703ef7"><enum>(B)</enum><text>prohibits any
person from offering to acquire or acquiring; or</text>
</subparagraph><subparagraph id="IDcd2f600be5ec446ca3dd5d574b081513"><enum>(C)</enum><text>prohibits any
person from using any previously disclosed information in connection with any
such offer to acquire or acquisition of,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">all or part of
any covered financial company, including any liabilities, assets, or interest
therein, in connection with any transaction in which the Corporation exercises
its authority under this title.</continuation-text></paragraph></subsection><subsection id="IDdcee4b2ca3bf4dfe801def344eda1f6b"><enum>(q)</enum><header>Other
exemptions</header>
<paragraph id="id726563E633834F39985567EA7FDFFD44"><enum>(1)</enum><header>In
general</header><text>When acting as a receiver under this title—</text>
<subparagraph id="IDc3a2b8d4078c4df79e5c45f6cc3a33c5"><enum>(A)</enum><text>the Corporation,
including its franchise, its capital, reserves and surplus, and its income,
shall be exempt from all taxation imposed by any State, county, municipality,
or local taxing authority, except that any real property of the Corporation
shall be subject to State, territorial, county, municipal, or local taxation to
the same extent according to its value as other real property is taxed, except
that, notwithstanding the failure of any person to challenge an assessment
under State law of the value of such property, such value, and the tax thereon,
shall be determined as of the period for which such tax is imposed;</text>
</subparagraph><subparagraph id="IDab409cc366bf4664bfef7acbc2ad62c6"><enum>(B)</enum><text>no property of
the Corporation shall be subject to levy, attachment, garnishment, foreclosure,
or sale without the consent of the Corporation, nor shall any involuntary lien
attach to the property of the Corporation; and</text>
</subparagraph><subparagraph id="ID4b3f7cfb04a243fd852116a83687fab0"><enum>(C)</enum><text>the Corporation
shall not be liable for any amounts in the nature of penalties or fines,
including those arising from the failure of any person to pay any real
property, personal property, probate, or recording tax or any recording or
filing fees when due; and</text>
</subparagraph><subparagraph commented="no" id="ID1369fc57c16c449689c588029ceba073"><enum>(D)</enum><text>the Corporation
shall be exempt from all prosecution by the United States or any State, county,
municipality, or local authority for any criminal offense arising under
Federal, State, county, municipal, or local law, which was allegedly committed
by the covered financial company, or persons acting on behalf of the covered
financial company, prior to the appointment of the Corporation as
receiver.</text>
</subparagraph></paragraph><paragraph id="id9B70241080524341A5E697543A497DBA"><enum>(2)</enum><header>Limitation</header><text>Paragraph
(1) shall not apply with respect to any tax imposed (or other amount arising)
under the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection id="IDf85bf77265f34c6c88a12fd11cee05a8"><enum>(r)</enum><header>Certain sales
of assets prohibited</header>
<paragraph id="ID362f596c84c0460cb666fa14872e8bd1"><enum>(1)</enum><header>Persons who
engaged in improper conduct with, or caused losses to, covered financial
companies</header><text>The Corporation shall prescribe regulations which, at a
minimum, shall prohibit the sale of assets of a covered financial company by
the Corporation to—</text>
<subparagraph id="IDef271d4d9a524b238e6e5ea0601fc8b5"><enum>(A)</enum><text>any person
who—</text>
<clause id="ID5b67cd1313984c3880987c39b18bf07b"><enum>(i)</enum><text>has
defaulted, or was a member of a partnership or an officer or director of a
corporation that has defaulted, on 1 or more obligations, the aggregate amount
of which exceeds $1,000,000, to such covered financial company;</text>
</clause><clause id="IDf2fc4a8e99c5427da1b051422d45ca05"><enum>(ii)</enum><text>has
been found to have engaged in fraudulent activity in connection with any
obligation referred to in clause (i); and</text>
</clause><clause id="ID38621da0af3a47d784781fe690637e39"><enum>(iii)</enum><text>proposes to
purchase any such asset in whole or in part through the use of the proceeds of
a loan or advance of credit from the Corporation or from any covered financial
company;</text>
</clause></subparagraph><subparagraph id="IDc6afa8a3e37142f3953c8a52e364fa20"><enum>(B)</enum><text>any person who
participated, as an officer or director of such covered financial company or of
any affiliate of such company, in a material way in any transaction that
resulted in a substantial loss to such covered financial company; or</text>
</subparagraph><subparagraph id="ID53adfb65cde94e4494cd3aad0ad7b983"><enum>(C)</enum><text>any person who
has demonstrated a pattern or practice of defalcation regarding obligations to
such covered financial company.</text>
</subparagraph></paragraph><paragraph id="ID91622119561d41eab70bac92efbcf5f8"><enum>(2)</enum><header>Convicted
debtors</header><text>Except as provided in paragraph (3), a person may not
purchase any asset of such institution from the receiver, if that
person—</text>
<subparagraph id="IDb1b983977d164ad0bca74114c28499f5"><enum>(A)</enum><text>has been
convicted of an offense under section 215, 656, 657, 1005, 1006, 1007, 1008,
1014, 1032, 1341, 1343, or 1344 of title 18, United States Code, or of
conspiring to commit such an offense, affecting any covered financial company;
and</text>
</subparagraph><subparagraph id="ID6a1665c9942e4360b6bffc7fd3e4c82b"><enum>(B)</enum><text>is in default on
any loan or other extension of credit from such covered financial company
which, if not paid, will cause substantial loss to the Fund or the
Corporation.</text>
</subparagraph></paragraph><paragraph id="IDab890f6bdf0a41e8b4a3dd89660d1826"><enum>(3)</enum><header>Settlement of
claims</header><text>Paragraphs (1) and (2) shall not apply to the sale or
transfer by the Corporation of any asset of any covered financial company to
any person, if the sale or transfer of the asset resolves or settles, or is
part of the resolution or settlement, of 1 or more claims that have been, or
could have been, asserted by the Corporation against the person.</text>
</paragraph><paragraph id="ID551879b7b9894703808159d06fbd5fee"><enum>(4)</enum><header>Definition of
default</header><text>For purposes of this subsection, the term
<term>default</term> means a failure to comply with the terms of a loan or
other obligation to such an extent that the property securing the obligation is
foreclosed upon.</text>
</paragraph></subsection></section><section id="IDfe324a1591ae4263988e78f6ce90d8f5"><enum>211.</enum><header>Miscellaneous
provisions</header>
<subsection id="ID972c4b71b095489198ed82dbec0803ee"><enum>(a)</enum><header>Clarification
of prohibition regarding concealment of assets from receiver or liquidating
agent</header><text>Section 1032(1) of title 18, United States Code, is amended
by inserting <quote>the Federal Deposit Insurance Corporation acting as
receiver for a covered financial company, in accordance with title II of the
Restoring American Financial Stability Act of 2010,</quote> before <quote>or
the National Credit</quote>.</text>
</subsection><subsection id="ID75181a53374643e5ad91a28402433da7"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1032 of title 18, United States Code, is
amended in the section heading, by striking <quote><header-in-text level="section" style="USC">of financial
institution</header-in-text></quote>.</text>
</subsection><subsection id="ID7fce21eba7f347148c66c80722d5729c"><enum>(c)</enum><header>Federal deposit
insurance corporation improvement Act of 1991</header><text>Section 403(a) of
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4403(a)) is amended by inserting <quote>section 210(c) of the Restoring
American Financial Stability Act of 2010, section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617(d)),</quote> after <quote>section 11(e) of the Federal Deposit Insurance
Act,</quote>.</text>
</subsection></section><enum>III</enum><header>Transfer of
powers to the Comptroller of the Currency, the Corporation, and the Board of
Governors</header>
<section id="ID306c6d62aa5d4d1b92fdfa2d1c3a6e1a"><enum>300.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Enhancing Financial Institution Safety and Soundness Act of
2010</quote>.</text>
</section><section id="IDe07b45f018924d76b0c0cbf2c802042f"><enum>301.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this title are—</text>
<paragraph id="IDa629c93dc1a24ab882b4e2631b9f6beb"><enum>(1)</enum><text>to
provide for the safe and sound operation of the banking system of the United
States;</text>
</paragraph><paragraph id="IDc0118fcfeb5e445a88972bc96271cdbb"><enum>(2)</enum><text>to
preserve and protect the dual system of Federal and State-chartered depository
institutions;</text>
</paragraph><paragraph id="ID364896c61bab4ea2b85e150defcde3b0"><enum>(3)</enum><text>to
ensure the fair and appropriate supervision of each depository institution,
regardless of the size or type of charter of the depository institution;
and</text>
</paragraph><paragraph id="ID09fadfe4a2164adea45b4914afb9e82f"><enum>(4)</enum><text>to
streamline and rationalize the supervision of depository institutions and the
holding companies of depository institutions.</text>
</paragraph></section><section id="IDd1b36fcb40b0403eb26d051f0e7833b5"><enum>302.</enum><header>Definition</header><text display-inline="no-display-inline">In this title, the term <term>transferred
employee</term> means, as the context requires, an employee transferred to the
Office of the Comptroller of the Currency or the Corporation under section
322.</text>
</section><subtitle id="idDB85B4D494D54FCD8623A61B7F5EED93"><enum>A</enum><header>Transfer of
powers and duties</header>
<section id="IDee8af4401b59426a9996b527a6208d3a"><enum>311.</enum><header>Transfer
date</header>
<subsection id="ID1955b83423b947178ac39a7b7cc43169"><enum>(a)</enum><header>Transfer
date</header><text>Except as provided in subsection (b), the term
<term>transfer date</term> means the date that is 1 year after the date of
enactment of this Act.</text>
</subsection><subsection id="ID2f2ffaf3276e41babc060436cdabec34"><enum>(b)</enum><header>Extension
permitted</header>
<paragraph id="IDe9829974557f4824915e31acbe0b9fc7"><enum>(1)</enum><header>Notice
required</header><text>The Secretary, in consultation with the Comptroller of
the Currency, the Director of the Office of Thrift Supervision, the Chairman of
the Board of Governors, and the Chairperson of the Corporation, may extend the
period under subsection (a) and designate a transfer date that is not later
than 18 months after the date of enactment of this Act, if the Secretary
transmits to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives—</text>
<subparagraph id="ID5b0667c6ab5c4f0abc22c59c5ffd725d"><enum>(A)</enum><text>a
written determination that commencement of the orderly process to implement
this title is not feasible by the date that is 1 year after the date of
enactment of this Act;</text>
</subparagraph><subparagraph id="ID8b7095aa72b84fd7aeffa75a35257939"><enum>(B)</enum><text>an explanation of
why an extension is necessary to commence the process of orderly implementation
of this title;</text>
</subparagraph><subparagraph id="id8CCAC93D3ECA4D4AA640840EE92BAA05"><enum>(C)</enum><text>the transfer date
designated under this subsection; and</text>
</subparagraph><subparagraph id="ID483fca69e87a42918923ec892eb881ae"><enum>(D)</enum><text>a
description of the steps that will be taken to initiate the process of an
orderly and timely implementation of this title within the extended time
period.</text>
</subparagraph></paragraph><paragraph id="ID0a5f0894f42a423e83992c4e9b706215"><enum>(2)</enum><header>Publication of
notice</header><text>Not later than 270 days after the date of enactment of
this Act, the Secretary shall publish in the Federal Register notice of any
transfer date designated under paragraph (1).</text>
</paragraph></subsection></section><section id="IDca90970d497544e6ad91f15d0fcaafad"><enum>312.</enum><header>Powers and
duties transferred</header>
<subsection id="ID9f65c5cdc1474fd5b475b83c7d7f945a"><enum>(a)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection><subsection id="IDfb40a3f24c904ec9857a51fc02179169"><enum>(b)</enum><header>Functions of
the Office of Thrift Supervision</header>
<paragraph id="ID268d425b61d7485bb7a2124143f2f892"><enum>(1)</enum><header>Savings and
loan holding company functions transferred</header>
<subparagraph id="id0F3516BDA7B9490FA75CA38CC4072713"><enum>(A)</enum><header>Board of
Governors</header><text>There are transferred to the Board of Governors all
functions of the Office of Thrift Supervision and the Director of the Office of
Thrift Supervision (including the authority to issue orders) relating
to—</text>
<clause id="idDF675054356E45168163EE7FC18F75B7"><enum>(i)</enum><text>the
supervision of—</text>
<subclause id="idB6F37035EF9D455DBB6332D39FDB51F9"><enum>(I)</enum><text>any
savings and loan holding company—</text>
<item id="id1C9A378BB619464C9DD4581100796C45"><enum>(aa)</enum><text>having
$50,000,000,000 or more in total consolidated assets; or</text>
</item><item id="id0A4D38691059404D85FDB780D64AE564"><enum>(bb)</enum><text>that is
a foreign bank; and</text>
</item></subclause><subclause id="id721A6698F3254F3988C73CC0AE7AA756"><enum>(II)</enum><text>any
subsidiary (other than a depository institution) of a savings and loan holding
company described in subclause (I); and</text>
</subclause></clause><clause id="ID2a3ba8ec637046cc82140b279171beda"><enum>(ii)</enum><text>all
rulemaking authority of the Office of Thrift Supervision and the Director of
the Office of Thrift Supervision relating to savings and loan holding
companies.</text>
</clause></subparagraph><subparagraph id="ID83d04eacc72f4c1dae5c591822d36c55"><enum>(B)</enum><header>Comptroller of
the Currency</header><text>Except as provided in subparagraph (A), there are
transferred to the Office of the Comptroller of the Currency all functions of
the Office of Thrift Supervision and the Director of the Office of Thrift
Supervision (including the authority to issue orders) relating to the
supervision of—</text>
<clause id="ID390df77f4f8c4d549071f896de75c27d"><enum>(i)</enum><text>any
savings and loan holding company (other than a foreign bank)—</text>
<subclause id="idFE3A3C809E8646BE827FC5D290EE047A"><enum>(I)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</subclause><subclause id="IDcf045b16ff2642408bc58fa8e19a6208"><enum>(II)</enum><text>having—</text>
<item id="id013D91C634F144B897EE141996290FF2"><enum>(aa)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are Federal depository institutions; or</text>
</item><item id="IDa67f685c7e9a4d79a93bb388a1c76f12"><enum>(bb)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are Federal depository institutions exceed the total
consolidated assets of all subsidiaries that are State depository institutions;
and</text>
</item></subclause></clause><clause id="ID749d32e4f94b4803ba1037cc0756458c"><enum>(ii)</enum><text>any
subsidiary (other than a depository institution) of a savings and loan holding
company described in clause (i).</text>
</clause></subparagraph><subparagraph id="IDfb1cba5b2e4f40a68ac06ae65196409a"><enum>(C)</enum><header>Corporation</header><text>Except
as provided in subparagraph (A), there are transferred to the Corporation all
functions of the Office of Thrift Supervision and the Director of the Office of
Thrift Supervision (including the authority to issue orders) relating to the
supervision of—</text>
<clause id="ID17a717bd3a384559aa202c65bef059a5"><enum>(i)</enum><text>any
savings and loan holding company (other than a foreign bank)—</text>
<subclause id="idF12BBFF244CF445D9E3370C689035D86"><enum>(I)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</subclause><subclause id="ID46022d5a7902437db984f47e8b098742"><enum>(II)</enum><text>having—</text>
<item id="id7F6FD1594CF34143817DACDBFA36E17E"><enum>(aa)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are State depository institutions; or</text>
</item><item id="IDeba77a52fbee40ed9d80ed608d7ed17f"><enum>(bb)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are State depository institutions exceed the total
consolidated assets of all subsidiaries that are Federal depository
institutions; and</text>
</item></subclause></clause><clause id="ID9d2ab08ad154481d9b48cdf3e2205cd1"><enum>(ii)</enum><text>any
subsidiary (other than a depository institution) of a savings and loan holding
company described in clause (i).</text>
</clause></subparagraph></paragraph><paragraph id="IDc6f3f8c5fcf243f28af1cc4124f961fc"><enum>(2)</enum><header>All other
functions transferred</header>
<subparagraph id="idFB7325617DCD49728D8AEB4678E93E39"><enum>(A)</enum><header>Board of
Governors</header><text>All rulemaking authority of the Office of Thrift
Supervision and the Director of the Office of Thrift Supervision under section
11 of the Home Owners’ Loan Act (12 U.S.C. 1468) relating to transactions with
affiliates and extensions of credit to executive officers, directors, and
principal shareholders is transferred to the Board of Governors.</text>
</subparagraph><subparagraph id="ID13eb26fc5d3b49a2a961555a81c1b51c"><enum>(B)</enum><header>Comptroller of
the Currency</header><text>Except as provided in subparagraph (A), there are
transferred to the Comptroller of the Currency all functions of the Office of
Thrift Supervision and the Director of the Office of Thrift Supervision
relating to Federal savings associations.</text>
</subparagraph><subparagraph id="ID53139eee237444b3aeee83bbe1b49281"><enum>(C)</enum><header>Corporation</header><text>Except
as provided in paragraph (1), all functions of the Office of Thrift Supervision
and the Director of the Office of Thrift Supervision relating to State savings
associations are transferred to the Corporation.</text>
</subparagraph><subparagraph id="idDAEFDD7669E6441DA2C42653C6014B87"><enum>(D)</enum><header>Comptroller of
the Currency and the Corporation</header><text>All rulemaking authority of the
Office of Thrift Supervision and the Director of the Office of Thrift
Supervision relating to savings associations is transferred to, and shall be
exercised jointly by, the Comptroller of the Currency and the
Corporation.</text>
</subparagraph></paragraph></subsection><subsection id="IDccadd72c95dd43e088732e8cfe923b5f"><enum>(c)</enum><header>Certain
functions of the board of governors</header>
<paragraph id="ID6461b2cb2bb44fd3944f78c52e9fb33e"><enum>(1)</enum><header>Bank holding
company functions transferred</header>
<subparagraph id="IDaa8ca0373f0f41049412a51074e59029"><enum>(A)</enum><header>Comptroller of
the Currency</header><text>Except as provided in subparagraph (C), there are
transferred to the Office of the Comptroller of the Currency all functions of
the Board of Governors (including any Federal reserve bank) relating to the
supervision of—</text>
<clause id="ID88cc23422a7a4a74b688db5ec9be7ea4"><enum>(i)</enum><text>any
bank holding company (other than a foreign bank)—</text>
<subclause id="id428962CD2D7148769FC6E355A381267D"><enum>(I)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</subclause><subclause id="ID4311c88a66364d6dadad9e989cdd60f4"><enum>(II)</enum><text>having—</text>
<item id="id8F74ACEC616C4DF28259D2366280C9C1"><enum>(aa)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are Federal depository institutions; or</text>
</item><item id="ID2a1b8432e25e48aaa253f7bf7002c6cc"><enum>(bb)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are Federal depository institutions exceed the total
consolidated assets of all subsidiaries that are State depository institutions;
and</text>
</item></subclause></clause><clause id="IDa0e2ba1ce90a4348b7e54e8c27d86ee5"><enum>(ii)</enum><text>any
subsidiary (other than a depository institution) of a bank holding company that
is described in clause (i).</text>
</clause></subparagraph><subparagraph id="IDf0ea2b0056874beca7f3cb23d4f74e54"><enum>(B)</enum><header>Corporation</header><text>Except
as provided in subparagraph (C), there are transferred to the Corporation all
functions of the Board of Governors (including any Federal reserve bank)
relating to the supervision of—</text>
<clause id="IDa409281bf3ca49e3ac6f0550ba36c1ec"><enum>(i)</enum><text>any
bank holding company (other than a foreign bank)—</text>
<subclause id="id96FBD73F4485485DA85377BC16793B14"><enum>(I)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</subclause><subclause id="ID3084296e670e47e6b1267c93305c1b32"><enum>(II)</enum><text>having—</text>
<item id="id13CCA8B2917D413EAC2E495F8C43484B"><enum>(aa)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are State depository institutions; or</text>
</item><item id="ID0aa0640c3c7a4912bc9a9757e634b602"><enum>(bb)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are State depository institutions exceed the total
consolidated assets of all subsidiaries that are Federal depository
institutions; and</text>
</item></subclause></clause><clause id="IDe2a1069d071246d79e28fcab5d100b6f"><enum>(ii)</enum><text>any
subsidiary (other than a depository institution) of a bank holding company that
is described in clause (i).</text>
</clause></subparagraph><subparagraph id="idB30064CECFD84325B7A7B05E6203BC92"><enum>(C)</enum><header>Rulemaking
authority</header><text>No rulemaking authority of the Board of Governors is
transferred to the Office of the Comptroller of the Currency or the Corporation
under this paragraph.</text>
</subparagraph></paragraph><paragraph id="IDa6857b0dc2bf49c3928861e078cb6738"><enum>(2)</enum><header>Other functions
transferred</header><text>There are transferred to the Corporation all
functions (other than rulemaking authority under the Federal Reserve Act) of
the Board of Governors (and any Federal reserve bank) relating to the
supervision of insured State member banks.</text>
</paragraph></subsection><subsection id="IDdce9a2a03e9c443c8b4f7abf39a0b710"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="ID807202b10fdd4a868c68f19251052451"><enum>(1)</enum><header>Federal deposit
insurance Act</header><text>Section 3(q) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(q)) is amended by striking paragraphs (1) through (4) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idEEE6480ADAFA4D7ABDC67FB1B7840968" style="OLC">
<paragraph id="ID572101448f6b4e1bb563dce78bf4cf5f"><enum>(1)</enum><text>the Office of the
Comptroller of the Currency, in the case of—</text>
<subparagraph id="IDd7803ef8341949f48ca988bc815bebab"><enum>(A)</enum><text>any national
banking association;</text>
</subparagraph><subparagraph id="ID026754656f2d49b9b00857b262c69ac4"><enum>(B)</enum><text>any Federal
branch or agency of a foreign bank;</text>
</subparagraph><subparagraph id="IDbdb3d90390ee44969f80cba9b24b62e2"><enum>(C)</enum><text>any bank holding
company (other than a foreign bank)—</text>
<clause id="id6FE245882B96433F9360705AD2BE658B"><enum>(i)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</clause><clause id="ID51c449cb3c9042ab8d1b04a62405c3aa"><enum>(ii)</enum><text>having—</text>
<subclause id="idDE0F94E59D434C52814966D2DE5E12B6"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are Federal depository institutions; or</text>
</subclause><subclause id="ID896eed635fe94128a0371ad6ba48c8bf"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are Federal depository institutions exceed the total
consolidated assets of all subsidiaries that are State depository
institutions;</text>
</subclause></clause></subparagraph><subparagraph id="ID291b59954b3e4ae6bdd8e423386e6f57"><enum>(D)</enum><text>any subsidiary
(other than a depository institution) of a bank holding company that is
described in subparagraph (C);</text>
</subparagraph><subparagraph id="IDcb40cc7aa4564bb7a28a61c60da0450f"><enum>(E)</enum><text>any Federal
savings association;</text>
</subparagraph><subparagraph id="ID5ae456f9e78b4c2884f0ee00150fc4d2"><enum>(F)</enum><text>any savings and
loan holding company (other than a foreign bank)—</text>
<clause id="idBCC6A1DE3D4246C4BE499C9939D5207C"><enum>(i)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</clause><clause id="ID41951d2f1703436aad225753a5a985f1"><enum>(ii)</enum><text>having—</text>
<subclause id="idCD33A356BDEB43F693A5E254999286BC"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are Federal depository institutions; or</text>
</subclause><subclause id="ID1e8e79ca2e154fe39b64219ad6560fb3"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are Federal depository institutions exceed the total
consolidated assets of all subsidiaries that are State depository institutions;
and</text>
</subclause></clause></subparagraph><subparagraph id="ID66fc351d4e2c4b86a3e70e3e19de9c13"><enum>(G)</enum><text>any subsidiary
(other than a depository institution) of a savings and loan holding company
that is described in subparagraph (F);</text>
</subparagraph></paragraph><paragraph id="IDe4d7ae0bb4054ad99b0292edbbf4a95e"><enum>(2)</enum><text>the Federal
Deposit Insurance Corporation, in the case of—</text>
<subparagraph id="ID21710f4b0e82429da75117a12243e815"><enum>(A)</enum><text>any insured State
bank;</text>
</subparagraph><subparagraph id="IDb2033c2ff6684284b7b9d21015b3ebeb"><enum>(B)</enum><text>any foreign bank
having an insured branch;</text>
</subparagraph><subparagraph id="IDd4f5890c548443488086530af46be843"><enum>(C)</enum><text>any State savings
association;</text>
</subparagraph><subparagraph id="ID9192fd4b249e416eb35bcd5d6bdf9d40"><enum>(D)</enum><text>any bank holding
company (other than a foreign bank)—</text>
<clause id="id4A8ECDB538AE461BBDA7BD05A06F28A0"><enum>(i)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</clause><clause id="IDb83073357b0a414cb653cb5fcf3422c5"><enum>(ii)</enum><text>having—</text>
<subclause id="idC8B7756EC3CA45528755A23B2679A6B1"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are State depository institutions; or</text>
</subclause><subclause id="IDa57d73b5f35949498bbf0725693eaaab"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are State depository institutions exceed the total
consolidated assets of all subsidiaries that are Federal depository
institutions;</text>
</subclause></clause></subparagraph><subparagraph id="IDc324df3ab6084dcab9f35c0a14af582c"><enum>(E)</enum><text>any subsidiary
(other than a depository institution) of a bank holding company that is
described in subparagraph (D);</text>
</subparagraph><subparagraph id="ID2ac149eaa9a3499e925646bbf22473f4"><enum>(F)</enum><text>any savings and
loan holding company (other than a foreign bank)—</text>
<clause id="idEC22BECCA19E450EBA76BFEDA51BC78D"><enum>(i)</enum><text>having less than
$50,000,000,000 in total consolidated assets; and</text>
</clause><clause id="IDbc26942e66df44b7964e716974b0cb07"><enum>(ii)</enum><text>having—</text>
<subclause id="id3A85CE939219443AA66F3B9244831A56"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are State depository institutions; or</text>
</subclause><subclause id="IDffb13d9bfbef422c830e43f81dc99dce"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are State depository institutions exceed the total
consolidated assets of all subsidiaries that are Federal depository
institutions; and</text>
</subclause></clause></subparagraph><subparagraph id="ID1d9d8e5ee08e40a4a8e34fb6df375b0b"><enum>(G)</enum><text>any subsidiary
(other than a depository institution) of a savings and loan holding company
that is described in subparagraph (F);</text>
</subparagraph></paragraph><paragraph id="ID6675646517e04bbf898e7c53313f9b1c"><enum>(3)</enum><text>the Board of
Governors of the Federal Reserve System, in the case of—</text>
<subparagraph id="id253AD494ABC94A0C9D6EFC4E11D3682B"><enum>(A)</enum><text>any noninsured
State member bank;</text>
</subparagraph><subparagraph id="ID98aaa7c1f6664d27af55a26e03b12daf"><enum>(B)</enum><text>any branch or
agency of a foreign bank with respect to any provision of the Federal Reserve
Act which is made applicable under the International Banking Act of
1978;</text>
</subparagraph><subparagraph id="ID8df38c8a1f224bb98261609c1d461560"><enum>(C)</enum><text>any foreign bank
which does not operate an insured branch;</text>
</subparagraph><subparagraph id="IDe5885ca8d5da492083e3d0c74ee48bd0"><enum>(D)</enum><text>any agency or
commercial lending company other than a Federal agency;</text>
</subparagraph><subparagraph id="ID1ed350e56206457e81b2b5357795754c"><enum>(E)</enum><text>supervisory or
regulatory proceedings arising from the authority given to the Board of
Governors under section 7(c)(1) of the International Banking Act of 1978,
including such proceedings under the Financial Institutions Supervisory Act of
1966;</text>
</subparagraph><subparagraph id="ID16f9acd52cd94d2487cc2f57fcabbd9c"><enum>(F)</enum><text>any bank holding
company having total consolidated assets of $50,000,000,000 or more, any bank
holding company that is a foreign bank, and any subsidiary (other than a
depository institution) of such a bank holding company; and</text>
</subparagraph><subparagraph id="IDd86c4dbd73964482bb7b80817290b3dd"><enum>(G)</enum><text>any savings and
loan holding company having total consolidated assets of $50,000,000,000 or
more, any savings and loan holding company that is a foreign bank, and any
subsidiary (other than a depository institution) of such a savings and loan
holding
company.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID3061dc5952834e72a39bdf740ac61760"><enum>(2)</enum><header>Certain
references in the bank holding company Act of 1956</header>
<subparagraph id="id2118AAD0760A4FAE8F40BE88E2EF9C09"><enum>(A)</enum><header>Comptroller of
the Currency</header><text>On or after the transfer date, in the case of a bank
holding company described in section 3(q)(1)(C) of the Federal Deposit
Insurance Act, as amended by this Act, any reference in the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.) to the Board of Governors shall be
deemed to be a reference to the Office of the Comptroller of the
Currency.</text>
</subparagraph><subparagraph id="id54F32F47581142F580A7096D3B08C9C8"><enum>(B)</enum><header>Corporation</header><text>On
or after the transfer date, in the case of a bank holding company described in
section 3(q)(2)(D) of the Federal Deposit Insurance Act, as amended by this
Act, any reference in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.) to the Board of Governors shall be deemed to be a reference to the
Corporation.</text>
</subparagraph><subparagraph id="id4854294823504D599F585CCC6D2F2DE3"><enum>(C)</enum><header>Rule of
construction</header><text>Notwithstanding subparagraph (A) or (B), the Board
of Governors shall retain all rulemaking authority under the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.).</text>
</subparagraph></paragraph><paragraph id="ID743d3bcb35ed4fc793fc35c51a94bc6a"><enum>(3)</enum><header>Consultation in
holding company rulemaking</header>
<subparagraph id="IDf9c47fabb93e4ea6b3e4b7d89db0404e"><enum>(A)</enum><header>Bank holding
companies</header><text>Section 5 of the Bank Holding Company Act of 1956 (12
U.S.C. 1844) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9533E5E1F932406A996268F367FB5F53" style="OLC">
<subsection id="ID6c0438857a1e43319dfd9ad86ef8a55d"><enum>(h)</enum><header>Consultation in
rulemaking</header><text>Before proposing or adopting regulations under this
Act that apply to bank holding companies having less than $50,000,000,000 in
total consolidated assets, the Board of Governors shall consult with the
Comptroller of the Currency and the Federal Deposit Insurance Corporation as to
the terms of such
regulations.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID77ac0df57f034b678aa84035f12bdf91"><enum>(B)</enum><header>Savings and
loan holding companies</header>
<clause id="idBA6D06FE574E441AA9573FAC5A4948AA"><enum>(i)</enum><header>Home
Owners' Loan Act</header><text>Section 10 of the Home Owners' Loan Act (12
U.S.C. 1467a) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id32CDCF6CE9354491B592C986B11F7E26" style="OLC">
<subsection id="ID27e52d62259448caadd3207e0158dc5c"><enum>(u)</enum><header>Consultation in
rulemaking</header><text>Before proposing or adopting regulations under this
section that apply to savings and loan holding companies having less than
$50,000,000,000 in total consolidated assets, the Board of Governors shall
consult with the Comptroller of the Currency and the Federal Deposit Insurance
Corporation as to the terms of such
regulations.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause id="id4BFA42CB06E347B1B02CE10409E7258B"><enum>(ii)</enum><header>Federal
deposit insurance act</header><text>Section 19 of the Federal Deposit Insurance
Act (12 U.S.C. 1829) is amended—</text>
<subclause id="idC14E5DA198BD457AA10ECDE51754C59B"><enum>(I)</enum><text>in
subsection (d)(2), by inserting <quote>, in consultation with the Corporation
and the Comptroller of the Currency,</quote> after <quote>System</quote>;
and</text>
</subclause><subclause id="id572719658ECB441F8D720D4209556CD9"><enum>(II)</enum><text>in
subsection (e)(2), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Board of Governors of the Federal
Reserve System, in consultation with the Corporation and the Comptroller of the
Currency,</quote>.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id131FADBD974B45179107D0926DC8C665"><enum>(4)</enum><header>Federal Deposit
Insurance Act</header>
<subparagraph id="idFB8555A92894476E8A94E8E247FAEEBB"><enum>(A)</enum><header>Application</header><text>Section
8(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)(3)) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id285695D4E67F4625B2E2CC2D7B0CD956" style="OLC">
<paragraph id="idF066D70F15384330BBCEF32CF313AEF1" indent="up1"><enum>(3)</enum><header>Application to bank holding
companies, savings and loan holding companies, and edge and agreement
corporations</header>
<subparagraph id="id646282E9B56E40AABA749703F4A139AF"><enum>(A)</enum><header>Application</header><text>This
subsection, subsections (c) through (s) and subsection (u) of this section, and
section 50 shall apply to—</text>
<clause id="idC2D867E971E3494DA14538563DB353F3"><enum>(i)</enum><text>any bank holding company, and any
subsidiary (other than a bank) of a bank holding company, as those terms are
defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841),
as if such company or subsidiary was an insured depository institution for
which the appropriate Federal banking agency for the bank holding company was
the appropriate Federal banking agency;</text>
</clause><clause id="idD62064587B0240D093C4EE97CBF06E44"><enum>(ii)</enum><text>any savings and loan holding
company, and any subsidiary (other than a depository institution) of a savings
and loan holding company, as those terms are defined in section 10 of the Home
Owners’ Loan Act (12 U.S.C. 1467a), as if such company or subsidiary was an
insured depository institution for which the appropriate Federal banking agency
for the savings and loan holding company was the appropriate Federal banking
agency; and</text>
</clause><clause id="id7A57D0E2DC7242909EA5143CEAB3A6FD"><enum>(iii)</enum><text>any organization organized and
operated under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.)
or operating under section 25 of the Federal Reserve Act (12 U.S.C. 601 et
seq.) and any noninsured State member bank, as if such organization was a bank
holding company for which the Board of Governors of the Federal Reserve System
was the appropriate Federal banking agency.</text>
</clause></subparagraph><subparagraph id="idD21CD1DEDF6343069ABAB1210C790D33"><enum>(B)</enum><header>Rule of
construction</header><text>Nothing in this paragraph may be construed to alter
or affect the authority of an appropriate Federal banking agency to initiate
enforcement proceedings, issue directives, or take other remedial action under
any other provision of
law.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idA5C735F56E724CAABF4A2FF597E58CD4"><enum>(B)</enum><header>Conforming
amendment</header><text>Section 8(b)(9) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(b)(9)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id2AF21CD56E9F4B95BCBC59F525289C80" style="OLC">
<paragraph id="idADF0C5D221FA4503BB29B8EE76C65A5F"><enum>(9)</enum><text>[Reserved].</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="idE7CCB51AEB6143C780EF126D2F33FB4D"><enum>(e)</enum><header>Determination
of total consolidated assets</header>
<paragraph id="idDD73775335284AF993B98C5A25B422A6"><enum>(1)</enum><header>Regulations</header>
<subparagraph id="id397883EE3F394578AA492FDDF9656270"><enum>(A)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
this Act, the Office of the Comptroller of the Currency, the Corporation, and
the Board of Governors, in order to avoid disruptive transfers of regulatory
responsibility, shall issue joint regulations that specify—</text>
<clause id="id348AE03CD4C040098C45AC44EB2F8EE0"><enum>(i)</enum><text>the
source of data for determining the total consolidated assets of a depository
institution, bank holding company, or savings and loan holding company for
purposes of this Act, and the amendments made by this Act, including the
amendments to section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q)); and</text>
</clause><clause id="id4696085DC5F844E1A62572D6FD608ADE"><enum>(ii)</enum><text>the
interval and frequency at which the total consolidated assets of a depository
institution, bank holding company, or savings and loan holding company will be
determined.</text>
</clause></subparagraph><subparagraph id="idEB7579F81F6E449A93934DECEA607FE9"><enum>(B)</enum><header>Content</header><text>The
regulations issued under subparagraph (A)—</text>
<clause id="idDA8C4699A546421593EF0AADEB5D2A4A"><enum>(i)</enum><text>shall
use information contained in the reports described in paragraph (2), other
regulatory reports, audited financial statements, or other comparable
sources;</text>
</clause><clause id="id6CE55CCBDF7F45DA8EF8B778478EC787"><enum>(ii)</enum><text>shall
establish the frequency with which the total consolidated assets of depository
institutions, bank holding companies, and savings and loan companies are
determined, at an interval that—</text>
<subclause id="id0E5522082072497BBFC021682C9CA091"><enum>(I)</enum><text>avoids undue
disruption in regulatory oversight;</text>
</subclause><subclause id="idF43951E95DCB4BEBB971BE666783BBCB"><enum>(II)</enum><text>facilitates
nondisruptive transfers of regulatory responsibility; and</text>
</subclause><subclause id="idC61D7C1DF9B44B7E8641E0FCBD6A3787"><enum>(III)</enum><text>is
not shorter than 2 years; and</text>
</subclause></clause><clause id="id3533E1CF53AB480A9F9A17C7C802BD01"><enum>(iii)</enum><text>may
provide for more frequent determinations of the total consolidated assets of a
depository institution, bank holding company, or savings and loan holding
company, to take into account a transaction outside the ordinary course of
business, including a merger, acquisition, or other circumstance, as determined
jointly by the Office of the Comptroller of the Currency, the Corporation, and
the Board of Governors, by rule.</text>
</clause></subparagraph></paragraph><paragraph id="id54D7082EC3864D678BB660193992428C"><enum>(2)</enum><header>Interim
provisions</header><text>Until the date on which final regulations issued under
paragraph (1) are effective, for purposes this Act, and the amendments made by
this Act, including the amendments to section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)), the total consolidated assets of—</text>
<subparagraph id="id4BC3A547C9744A4C93068E266EE67BEB"><enum>(A)</enum><text>a
depository institution shall be determined by reference to the total
consolidated assets reported in the most recent Consolidated Report of Income
and Condition or Thrift Financial Report (or any successor thereto) filed by
the depository institution with the Corporation or the Office of Thrift
Supervision before the transfer date;</text>
</subparagraph><subparagraph id="id9BA0C968E7E6420BADAC0D09CA1D8E76"><enum>(B)</enum><text>a
bank holding company shall be determined by reference to the total consolidated
assets reported in the most recent Consolidated Financial Statements for Bank
Holding Companies (commonly referred to as the <quote>FR Y–9C</quote>, or any
successor thereto) filed by the bank holding company with the Board of
Governors before the transfer date; and</text>
</subparagraph><subparagraph id="idCA986A69F27D4096922947F4C57D3D4A"><enum>(C)</enum><text>a
savings and loan holding company shall be determined by reference to the total
consolidated assets reported in the applicable schedule of the most recent
Thrift Financial Report (or any successor thereto) filed by the savings and
loan holding company with the Office of Thrift Supervision before the transfer
date.</text>
</subparagraph></paragraph></subsection><subsection id="id06C94B3FD68A4D5D8C33AAA9E866419C"><enum>(f)</enum><header>Consumer
protection</header><text>Nothing in this section may be construed to limit or
otherwise affect the transfer of powers under title X.</text>
</subsection></section><section id="ID888624a73ae242b1bb99104a1408a4e1"><enum>313.</enum><header>Abolishment</header><text display-inline="no-display-inline">Effective 90 days after the transfer date,
the Office of Thrift Supervision and the position of Director of the Office of
Thrift Supervision are abolished.</text>
</section><section id="ID7fd900200a704b7a916083cb2eeac59f"><enum>314.</enum><header>Amendments to
the revised statutes</header>
<subsection id="ID8ae1884ca9644bc1935bdef9639dddfe"><enum>(a)</enum><header>Amendment to
section 324</header><text>Section 324 of the Revised Statutes of the United
States (12 U.S.C. 1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD5C1449353434926A3E373C9CAB697C8" style="OLC">
<section id="ID8de2b58d371a439282f232e8b3e1fd7e"><enum>324.</enum><header>Comptroller of
the Currency</header>
<subsection id="id0D41E17ACDCD455A8EE8B4E1B79D655C"><enum>(a)</enum><header>Office of the
Comptroller of the Currency established</header><text display-inline="yes-display-inline">There is established in the Department of
the Treasury a bureau to be known as the <quote>Office of the Comptroller of
the Currency</quote> which is charged with assuring the safety and soundness
of, and compliance with laws and regulations, fair access to financial
services, and fair treatment of customers by, the institutions and other
persons subject to its jurisdiction.</text>
</subsection><subsection id="idD2922BA29F584C878F1BC68C73A5591F"><enum>(b)</enum><header>Comptroller of
the Currency</header>
<paragraph id="idC3400072DDA14734A98D561E1B36FCC0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The chief officer of
the Office of the Comptroller of the Currency shall be known as the Comptroller
of the Currency. The Comptroller of the Currency shall perform the duties of
the Comptroller of the Currency under the general direction of the Secretary of
the Treasury. The Secretary of the Treasury may not delay or prevent the
issuance of any rule or the promulgation of any regulation by the Comptroller
of the Currency, and may not intervene in any matter or proceeding before the
Comptroller of the Currency (including agency enforcement actions), unless
otherwise specifically provided by law.</text>
</paragraph><paragraph id="id3B5CFDEDB13E47F19F8F2D14F3A9568D"><enum>(2)</enum><header>Additional
authority</header><text display-inline="yes-display-inline">The Comptroller of
the Currency shall have the same authority with respect to functions
transferred to the Comptroller of the Currency under the Enhancing Financial
Institution Safety and Soundness Act of 2010 (including matters that were
within the jurisdiction of the Director of the Office of Thrift Supervision or
the Office of Thrift Supervision on the day before the transfer date under that
Act) as was vested in the Director of the Office of Thrift Supervision on the
transfer date under that
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID833df1bfe9d945ffad68eff382e6071b"><enum>(b)</enum><header>Amendment to
section 329</header><text>Section 329 of the Revised Statutes of the United
States (12 U.S.C. 11) is amended by inserting before the period at the end the
following: <quote>or any Federal savings association</quote>.</text>
</subsection><subsection id="IDa9b81a5294ff4df9835ba39ecc6b4370"><enum>(c)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section><section id="ID7cc6af50a4314435b4ea218643c1401e"><enum>315.</enum><header>Federal
information policy</header><text display-inline="no-display-inline">Section
3502(5) of title 44, United States Code, is amended by inserting <quote>Office
of the Comptroller of the Currency,</quote> after <quote>the Securities and
Exchange Commission,</quote>.</text>
</section><section id="IDa30074590c7a432e8579d89f9bf87b5a"><enum>316.</enum><header>Savings
provisions</header>
<subsection id="IDd5903a203959405bbb1dcf58a42fc201"><enum>(a)</enum><header>Office of
Thrift Supervision</header>
<paragraph id="IDdbdda63bd0de4dcda6c7fa95de4630bc"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Sections 312(b) and
313 shall not affect the validity of any right, duty, or obligation of the
United States, the Director of the Office of Thrift Supervision, the Office of
Thrift Supervision, or any other person, that existed on the day before the
transfer date.</text>
</paragraph><paragraph id="IDa27bfec8dd354f3fa0ea3ac51a325fb9"><enum>(2)</enum><header>Continuation of
suits</header><text>This title shall not abate any action or proceeding
commenced by or against the Director of the Office of Thrift Supervision or the
Office of Thrift Supervision before the transfer date, except that, for any
action or proceeding arising out of a function of the Director of the Office of
Thrift Supervision or the Office of Thrift Supervision that is transferred to
the Comptroller of the Currency, the Office of the Comptroller of the Currency,
the Chairperson of the Corporation, the Corporation, the Chairman of the Board
of Governors, or the Board of Governors by this subtitle, the Comptroller of
the Currency, the Office of the Comptroller of the Currency, the Chairperson of
the Corporation, the Corporation, the Chairman of the Board of Governors, or
the Board of Governors shall be substituted for the Director of the Office of
Thrift Supervision or the Office of Thrift Supervision, as appropriate, as a
party to the action or proceeding as of the transfer date.</text>
</paragraph></subsection><subsection id="IDe47263b5fde644188d4c18a4a56cbc1b"><enum>(b)</enum><header>Board of
Governors</header>
<paragraph id="ID51253067e49a4814b70a52a741a6354d"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 312(c) shall
not affect the validity of any right, duty, or obligation of the United States,
the Board of Governors, any Federal reserve bank, or any other person, that
existed on the day before the transfer date.</text>
</paragraph><paragraph id="ID8c29b0c15f974fee9ecdc46eafe27a5c"><enum>(2)</enum><header>Continuation of
suits</header><text>This title shall not abate any action or proceeding
commenced by or against the Board of Governors or a Federal reserve bank before
the transfer date, except that, for any action or proceeding arising out of a
function of the Board of Governors or a Federal reserve bank transferred to the
Comptroller of the Currency, the Office of the Comptroller of the Currency, the
Chairperson of the Corporation, or the Corporation by this subtitle, the
Comptroller of the Currency, the Office of the Comptroller of the Currency, the
Chairperson of the Corporation, or the Corporation shall be substituted for the
Board of Governors or the Federal reserve bank, as appropriate, as a party to
the action or proceeding, as of the transfer date.</text>
</paragraph></subsection><subsection id="ID55bebda43d1449fb9d54f87fe1018067"><enum>(c)</enum><header>Continuation of
existing orders, resolutions, determinations, agreements, regulations, and
other materials</header>
<paragraph id="ID00524e19c1114043a887a18a04aa1ce9"><enum>(1)</enum><header>Office of
thrift supervision</header><text>All orders, resolutions, determinations,
agreements, 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 of the Office of Thrift Supervision that are transferred by this
subtitle and that are in effect on the day before the transfer date, shall
continue in effect according to the terms of those materials, and shall be
enforceable by or against the Office of the Comptroller of the Currency, the
Corporation, or the Board of Governors, as appropriate, until modified,
terminated, set aside, or superseded in accordance with applicable law by the
Office of the Comptroller of the Currency, the Corporation, or the Board of
Governors, as appropriate, by any court of competent jurisdiction, or by
operation of law.</text>
</paragraph><paragraph id="IDd18a1a742aec4cfab75c382e328466dd"><enum>(2)</enum><header>Board of
governors</header><text>All orders, resolutions, determinations, agreements,
regulations, interpretative rules, other interpretations, guidelines,
procedures, and other advisory materials, that have been issued, made,
prescribed, or allowed to become effective by the Board of Governors, or by a
court of competent jurisdiction, in the performance of functions of the Board
of Governors that are transferred by this subtitle and that are in effect on
the day before the transfer date, shall continue in effect according to the
terms of those materials, and shall be enforceable by or against the Office of
the Comptroller of the Currency or the Corporation, as appropriate, until
modified, terminated, set aside, or superseded in accordance with applicable
law by the Office of the Comptroller of the Currency or the Corporation, as
appropriate, by any court of competent jurisdiction, or by operation of
law.</text>
</paragraph></subsection><subsection id="IDc097e35a7e3f4e16bec6bcba90a0d79b"><enum>(d)</enum><header>Identification
of regulations continued</header>
<paragraph id="ID3d9b516aeb84496198cf708467257d3d"><enum>(1)</enum><header>By
the office of the comptroller of the currency</header><text>Not later than the
transfer date, the Office of the Comptroller of the Currency shall—</text>
<subparagraph id="ID186a278685ae42338d2949c936546314"><enum>(A)</enum><text>in consultation
with the Corporation, identify the regulations continued under subsection (c)
that will be enforced by the Office of the Comptroller of the Currency;
and</text>
</subparagraph><subparagraph id="ID1e0e249744354564a8f0fb8fe97ffb07"><enum>(B)</enum><text>publish a list of
such regulations in the Federal Register.</text>
</subparagraph></paragraph><paragraph id="id96C41CEF778F4842BFED5521217596DB"><enum>(2)</enum><header>By
the corporation</header><text>Not later than the transfer date, the Corporation
shall—</text>
<subparagraph id="id0DEF453B87D64B80A97FECB44B6864C5"><enum>(A)</enum><text>in consultation
with the Office of the Comptroller of the Currency, identify the regulations
continued under subsection (c) that will be enforced by the Corporation;
and</text>
</subparagraph><subparagraph id="idDC0758DAEE5548BA9A93AEABBF3F556B"><enum>(B)</enum><text>publish a list of
such regulations in the Federal Register.</text>
</subparagraph></paragraph><paragraph id="IDeec96e5ca5904e858fe4a68dd135d39c"><enum>(3)</enum><header>By
the Board of Governors</header><text>Not later than the transfer date, the
Board of Governors shall—</text>
<subparagraph id="IDd50397d022e64e5eb0676b42949a25f1"><enum>(A)</enum><text>in consultation
with the Office of the Comptroller of the Currency and the Corporation,
identify the regulations continued under subsection (c) that will be enforced
by the Board of Governors; and</text>
</subparagraph><subparagraph id="ID98a1e1e442bc4223ad372ce7b2fa43ef"><enum>(B)</enum><text>publish a list of
such regulations in the Federal Register.</text>
</subparagraph></paragraph></subsection><subsection id="IDcfb58611d90f4f48bb96fe2b168ce635"><enum>(e)</enum><header>Status of
regulations proposed or not yet effective</header>
<paragraph id="ID32ed3e0e9e5d490b92d33a713ef02156"><enum>(1)</enum><header>Proposed
regulations</header><text>Any proposed regulation of the Office of Thrift
Supervision or the Board of Governors, which that agency, in performing
functions transferred by this subtitle, 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,
the Corporation, or the Board of Governors, as appropriate, according to its
terms.</text>
</paragraph><paragraph id="IDfd0b12ea55264f0abca74173fb98e3b6"><enum>(2)</enum><header>Regulations not
yet effective</header><text>Any interim or final regulation of the Office of
Thrift Supervision or the Board of Governors, which that agency, in performing
functions transferred by this subtitle, 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, the Corporation,
or the Board of Governors, as appropriate, according to its terms.</text>
</paragraph></subsection></section><section id="ID49e336407758479990953b8a86560c63"><enum>317.</enum><header>References in
Federal law to Federal banking agencies</header>
<subsection id="IDc8774229bde542c19fd2dad379e4681b"><enum>(a)</enum><header>Director of the
Office of Thrift Supervision and the Office of Thrift
Supervision</header><text>Except as provided in section 312(d)(2), on and after
the transfer date, any reference in Federal law to the Director of the Office
of Thrift Supervision or the Office of Thrift Supervision, in connection with
any function of the Director of the Office of Thrift Supervision or the Office
of Thrift Supervision transferred under section 312(b) or any other provision
of this subtitle, shall be deemed to be a reference to the Comptroller of the
Currency, the Office of the Comptroller of the Currency, the Chairperson of the
Corporation, the Corporation, the Chairman of the Board of Governors, or the
Board of Governors, as appropriate.</text>
</subsection><subsection id="IDa48af8dddfa04e6e9bb101b6224133f5"><enum>(b)</enum><header>Board of
Governors</header><text>Except as provided in section 312(d)(2), on and after
the transfer date, any reference in Federal law to the Board of Governors or
any Federal reserve bank, in connection with any function of the Board of
Governors or any Federal reserve bank transferred under section 312(c) or any
other provision of this subtitle, shall be deemed to be a reference to the
Comptroller of the Currency, the Office of the Comptroller of the Currency, the
Chairperson of the Corporation, or the Corporation, as appropriate.</text>
</subsection></section><section id="id11B3A87DBDF0491F9221D7347496B1E2"><enum>318.</enum><header>Funding</header>
<subsection id="id888EB114080B4005A154EB7838B5FB78"><enum>(a)</enum><header>Funding of
Office of the Comptroller of the Currency</header>
<paragraph id="id1EB62B0A99664361BE29FBB315FC046B"><enum>(1)</enum><header>Authority to
Collect Assessments, Fees, and Other Charges, and to Receive Transferred
Funds</header><text>Chapter 4 of title LXII of the Revised Statutes is amended
by inserting after section 5240 (12 U.S.C. 481, 482) the following:</text>
<quoted-block display-inline="no-display-inline" id="id8647F46B43BF48D1AFDF23FCBCE4EFC7" style="traditional">
<section id="id7575C57D332741B4BEBE038742799059"><enum>5240A.</enum><text>The
Comptroller of the Currency may collect an assessment, fee, or other charge
from any entity described in section 3(q)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)(1)), as the Comptroller determines is necessary or
appropriate to carry out the responsibilities of the Office of the Comptroller
of the Currency. The Comptroller of the Currency also may collect an
assessment, fee, or other charge from any entity, the activities of which are
supervised by the Comptroller of the Currency under section 6 of the Bank
Holding Company Act of 1956, as the Comptroller determines is necessary or
appropriate to carry out the responsibilities of the Office of the Comptroller
of the Currency in connection with such activities. In establishing the amount
of an assessment, fee, or charge collected from an entity under this section,
the Comptroller of the Currency may take into account the funds transferred to
the Office of the Comptroller of the Currency under this section, the nature
and scope of the activities of the entity, the amount and type of assets that
the entity holds, the financial and managerial condition of the entity, and any
other factor, as the Comptroller of the Currency determines is appropriate.
Funds derived from any assessment, fee, or charge collected or payment made
pursuant to this section may be deposited by the Comptroller of the Currency in
accordance with the provisions of section 5234. Such funds shall not be
construed to be Government funds or appropriated monies, and shall not be
subject to apportionment for purposes of chapter 15 of title 31, United States
Code, or any other provision of law. The authority of the Comptroller of the
Currency under this section shall be in addition to the authority under section
5240.</text>
<subsection id="idF89BCA202ED9423EADA123269DCFA107"><enum></enum><text>The Comptroller
of the Currency shall have sole authority to determine the manner in which the
obligations of the Office of the Comptroller of the Currency shall be incurred
and its disbursements and expenses allowed and paid, in accordance with this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idB8FED09BCD8D41C9ACCFE140B1159A8E"><enum>(2)</enum><header>Promoting
parity in supervision fees</header>
<subparagraph id="id55ADBAA87E0040FAA3A07AC0502DA7C8"><enum>(A)</enum><header>Proposal
required</header>
<clause id="idA11522F0729A4A9A9EE5001B682D3272"><enum>(i)</enum><header>In
general</header><text>The Comptroller of the Currency shall submit to the Board
of Directors of the Corporation a proposal to promote parity in the examination
fees paid by State and Federal depository institutions having total
consolidated assets of less than $50,000,000,000.</text>
</clause><clause id="id32CCE97081164528A9E2043698A38887"><enum>(ii)</enum><header>Contents</header><text>The
proposal submitted under clause (i) shall recommend a transfer from the
Corporation to the Office of the Comptroller of the Currency of a percentage of
the amount that the Office of the Comptroller of the Currency estimates is
necessary or appropriate to carry out the responsibilities of the Office of the
Comptroller of the Currency associated with the supervision of Federal
depository institutions having total consolidated assets of less than
$50,000,000,000.</text>
</clause><clause id="id9110994BCC4E4C43905FEB2313C8908F"><enum>(iii)</enum><header>Data
collection</header><text>The Corporation shall assist the Office of the
Comptroller of the Currency in collecting data relative to the supervision of
State depository institutions to develop the proposal submitted under clause
(i).</text>
</clause></subparagraph><subparagraph id="id3B6D7B7C09C543EFACF5A89982634957"><enum>(B)</enum><header>Vote</header><text>Not
later than 60 days after the date of receipt of the proposal under subparagraph
(A), the Board of Directors of the Corporation shall—</text>
<clause id="id578E88BAED734D5C9188F2891EB18F13"><enum>(i)</enum><text>vote on
the proposal; and</text>
</clause><clause id="idB3124F8FD8BA4EF1A16D116D669A59E3"><enum>(ii)</enum><text>promptly
implement a plan to periodically transfer to the Office of the Comptroller of
the Currency a percentage of the amount that the Office of the Comptroller of
the Currency estimates is necessary or appropriate to carry out the
responsibilities of the Office of the Comptroller of the Currency associated
with the supervision of Federal depository institutions having total
consolidated assets of less than $50,000,000,000, as approved by the Board of
Directors of the Corporation.</text>
</clause></subparagraph><subparagraph id="id450316FEDEEF4B0DA00990DD2B2155D0"><enum>(C)</enum><header>Report to
Congress</header><text>Not later than 30 days after date of the vote of the
Board of Directors of the Corporation under subparagraph (B), the Corporation
shall submit to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
a report describing—</text>
<clause id="id807C9A04615742CDB3F1E194BF519F99"><enum>(i)</enum><text>the
proposal made to the Board of Directors of the Corporation by the Comptroller
of the Currency; and</text>
</clause><clause id="id361F88EA4ABA427680C19260AEB5E5F4"><enum>(ii)</enum><text>the
decision resulting from the vote of the Board of Directors of the
Corporation.</text>
</clause></subparagraph><subparagraph id="id0978A6138FDB4A07B8217D464071FACD"><enum>(D)</enum><header>Failure to
approve plan</header><text>If, on the date that is 2 years after the date of
enactment of this Act, the Board of Directors of the Corporation has failed to
approve a plan under subparagraph (B), the Council shall approve a plan using
the dispute resolution procedures under section 119.</text>
</subparagraph></paragraph></subsection><subsection id="idAE07A0CF297C4AFB9BE0B7CAA3549CA5"><enum>(b)</enum><header>Funding of
Board of Governors</header><text display-inline="yes-display-inline">Section 11
of the Federal Reserve Act (12 U.S.C. 248) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idAFD0031096AE415786B0BAB893CEF10B" style="OLC">
<subsection id="id2FCDC62A5CE34206A9B9D745E4983F77"><enum>(s)</enum><header>Assessments,
fees, and other charges for certain companies</header>
<paragraph id="id725365BED15F42E4B65EEE38E0C67CA7"><enum>(1)</enum><header>In
general</header><text>The Board shall collect a total amount of assessments,
fees, or other charges from the companies described in paragraph (2) that is
equal to the total expenses the Board estimates are necessary or appropriate to
carry out the responsibilities of the Board with respect to such
companies.</text>
</paragraph><paragraph id="id67C0A033A74C438AAFB89B17D3F78681"><enum>(2)</enum><header>Companies</header><text>The
companies described in this paragraph are—</text>
<subparagraph id="id88BE303B848A4A5786A41E865ACC73A6"><enum>(A)</enum><text>all bank holding
companies having total consolidated assets of $50,000,000,000 or more;</text>
</subparagraph><subparagraph id="id5FC9F24462BA4CB1B893759637252BAD"><enum>(B)</enum><text>all savings and
loan holding companies having total consolidated assets of $50,000,000,000 or
more; and</text>
</subparagraph><subparagraph id="id26EEFADE4B1446168242F6BE53BAAA2C"><enum>(C)</enum><text>all nonbank
financial companies supervised by the Board under section 113 of the Restoring
American Financial Stability Act of
2010.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idA176254A838D4BF9987689CCBAFD9BCA"><enum>(c)</enum><header>Corporation
examination fees</header><text>Section 10(e) of the Federal Deposit Insurance
Act (12 U.S.C. 1820(e)) is amended by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id7129D03BB2BA4AFAA31F995A5AD746E7" style="OLC">
<paragraph id="idB9DCE78CB6AA40A0BD32E42D89253430"><enum>(1)</enum><header>Regular and
special examinations of depository institutions</header><text>The cost of
conducting any regular examination or special examination of any depository
institution under subsection (b)(2), (b)(3), or (d) or of any entity described
in section 3(q)(2) may be assessed by the Corporation against the institution
or entity to meet the expenses of the Corporation in carrying out such
examinations, or as the Corporation determines is necessary or appropriate to
carry out the responsibilities of the Corporation. The Corporation may also
collect an assessment, fee, or other charge from any entity, the activities of
which are supervised by the Corporation under section 6 of the Bank Holding
Company Act of 1956, as the Corporation determines is necessary or appropriate
to carry out the responsibilities of the Corporation in connection with such
activities.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idCAF4C88DDA2C440791D197B2510EEE14"><enum>(d)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section><section id="IDee3f54b9ce7f4b5c97684f61f4bd4b01"><enum>319.</enum><header>Contracting
and leasing authority</header><text display-inline="no-display-inline">Notwithstanding the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or any other
provision of law, the Office of the Comptroller of the Currency may—</text>
<paragraph id="IDea46d203b11c443e929906dd67df588d"><enum>(1)</enum><text>enter into and
perform contracts, execute instruments, and acquire, in any lawful manner, such
goods and services, or personal or real property (or property interest) as the
Comptroller deems necessary to carry out the duties and responsibilities of the
Office of the Comptroller of the Currency; and</text>
</paragraph><paragraph id="IDba0c9c3c5c174f679f7d82d93d1a0622"><enum>(2)</enum><text>hold, maintain,
sell, lease, or otherwise dispose of the property (or property interest)
acquired under paragraph (1).</text>
</paragraph></section></subtitle><subtitle id="idC85851C856ED4D4598B394A24A0787CB"><enum>B</enum><header>Transitional
provisions</header>
<section id="ID9f29d1f2d5fe4add8e09580c9061daa0"><enum>321.</enum><header>Interim use of
funds, personnel, and property</header>
<subsection id="ID76bd52eafb6d486dbfcac56909df0fad"><enum>(a)</enum><header>Office of
Thrift Supervision</header>
<paragraph id="id8D244FE480B241F290544A36AEA07BEC"><enum>(1)</enum><header>In
general</header><text>Before the transfer date, the Office of the Comptroller
of the Currency, the Corporation, and the Board of Governors shall—</text>
<subparagraph id="id563530F60C9B4F9287E86BF9CA17AB7D"><enum>(A)</enum><text>consult and
cooperate with the Office of Thrift Supervision to facilitate the orderly
transfer of functions to the Office of the Comptroller of the Currency, the
Corporation, and the Board of Governors in accordance with this title;</text>
</subparagraph><subparagraph id="id153F299B1E614069B86ABA32BC7C2D5B"><enum>(B)</enum><text>determine
jointly, from time to time—</text>
<clause id="idCAEF3C197AF54CE292794967480FCFE3"><enum>(i)</enum><text>the
amount of funds necessary to pay any expenses associated with the transfer of
functions (including expenses for personnel, property, and administrative
services) during the period beginning on the date of enactment of this Act and
ending on the transfer date;</text>
</clause><clause id="id960E028E8BFF4230B47D481EF1BD91AF"><enum>(ii)</enum><text>which
personnel are appropriate to facilitate the orderly transfer of functions by
this title; and</text>
</clause><clause id="idCB3A0C8E88E442FE9BABC2ECAA9D07B3"><enum>(iii)</enum><text>what
property and administrative services are necessary to support the Office of the
Comptroller of the Currency, the Corporation, and the Board of Governors during
the period beginning on the date of enactment of this Act and ending on the
transfer date; and</text>
</clause></subparagraph><subparagraph id="idCF627CA94BCC41C294647E5A6D4B53BD"><enum>(C)</enum><text>take such actions
as may be necessary to provide for the orderly implementation of this
title.</text>
</subparagraph></paragraph><paragraph id="id1B1B8831250A472FAB8C61B9BF6085EC"><enum>(2)</enum><header>Agency
consultation</header><text>When requested jointly by the Office of the
Comptroller of the Currency, the Corporation, and the Board of Governors to do
so before the transfer date, the Office of Thrift Supervision shall—</text>
<subparagraph id="idD5841E2A663D4B9A890012605EDB7CDD"><enum>(A)</enum><text>pay to the Office
of the Comptroller of the Currency, the Corporation, or the Board of Governors,
as applicable, from funds obtained by the Office of Thrift Supervision through
assessments, fees, or other charges that the Office of Thrift Supervision is
authorized by law to impose, such amounts as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be necessary under paragraph (1);</text>
</subparagraph><subparagraph id="id6C0A07491B48438096A6F2C5E05AC1FF"><enum>(B)</enum><text>detail to the
Office of the Comptroller of the Currency, the Corporation, or the Board of
Governors, as applicable, such personnel as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be appropriate under paragraph (1); and</text>
</subparagraph><subparagraph id="idD654ABE9CD834C2A80674461DC3E5A04"><enum>(C)</enum><text>make available to
the Office of the Comptroller of the Currency, the Corporation, or the Board of
Governors, as applicable, such property and provide to the Office of the
Comptroller of the Currency, the Corporation, or the Board of Governors, as
applicable, such administrative services as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be necessary under paragraph (1).</text>
</subparagraph></paragraph><paragraph id="id374C9316EBF24EA7AF57677EE7B163C9"><enum>(3)</enum><header>Notice
required</header><text>The Office of the Comptroller of the Currency, the
Corporation, and the Board of Governors shall jointly give the Office of Thrift
Supervision reasonable prior notice of any request that the Office of the
Comptroller of the Currency, the Corporation, and the Board of Governors
jointly intend to make under paragraph (2).</text>
</paragraph></subsection><subsection id="idA1A59FEB4B10440CAEFBC998BFE75086"><enum>(b)</enum><header>Board of
Governors</header>
<paragraph id="id6D4F8F84B4A84B41938041A3CE8ECCA6"><enum>(1)</enum><header>In
general</header><text>Before the transfer date, the Office of the Comptroller
of the Currency and the Corporation shall—</text>
<subparagraph id="ID8b81b7b7c3fc4299bb326af5919e8a45"><enum>(A)</enum><text>consult and
cooperate with the Board of Governors to facilitate the orderly transfer of
functions to the Office of the Comptroller of the Currency and the Corporation
in accordance with this title;</text>
</subparagraph><subparagraph id="IDc5809fe522264ebea836785405d71c52"><enum>(B)</enum><text>determine
jointly, from time to time—</text>
<clause id="IDbfaac29c6b0241cbb9984fb4148b0df0"><enum>(i)</enum><text>the
amount of funds necessary to pay any expenses associated with the transfer of
functions (including expenses for personnel, property, and administrative
services) during the period beginning on the date of enactment of this Act and
ending on the transfer date;</text>
</clause><clause id="IDff007895421541a8869cb4f5c2c66d3a"><enum>(ii)</enum><text>which
personnel are appropriate to facilitate the orderly transfer of functions by
this title; and</text>
</clause><clause id="ID2d7f5829ba0a40bab3523213302ecf88"><enum>(iii)</enum><text>what
property and administrative services are necessary to support the Office of the
Comptroller of the Currency and the Corporation during the period beginning on
the date of enactment of this Act and ending on the transfer date; and</text>
</clause></subparagraph><subparagraph id="ID60e049422aa94b3f9795f491fad6b099"><enum>(C)</enum><text>take such actions
as may be necessary to provide for the orderly implementation of this
title.</text>
</subparagraph></paragraph><paragraph id="ID534517ab3add43808138d074e59a0ca5"><enum>(2)</enum><header>Agency
consultation</header><text>When requested jointly by the Office of the
Comptroller of the Currency and the Corporation to do so before the transfer
date, the Board of Governors shall—</text>
<subparagraph id="ID2d04f809ec784b7db822c3ff1f5e5441"><enum>(A)</enum><text>pay to the Office
of the Comptroller of the Currency or the Corporation, as applicable, from
funds obtained by the Board of Governors through assessments, fees, or other
charges that the Board of Governors is authorized by law to impose, such
amounts as the Office of the Comptroller of the Currency and the Corporation
jointly determine to be necessary under paragraph (1);</text>
</subparagraph><subparagraph id="ID56f31f4637c24eb58110216e24e4799f"><enum>(B)</enum><text>detail to the
Office of the Comptroller of the Currency or the Corporation, as applicable,
such personnel as the Office of the Comptroller of the Currency and the
Corporation jointly determine to be appropriate under paragraph (1); and</text>
</subparagraph><subparagraph id="IDf7683e412a584bcab6740d637d1c692d"><enum>(C)</enum><text>make available to
the Office of the Comptroller of the Currency or the Corporation, as
applicable, such property and provide to the Office of the Comptroller of the
Currency or the Corporation, as applicable, such administrative services as the
Office of the Comptroller of the Currency and the Corporation jointly determine
to be necessary under paragraph (1).</text>
</subparagraph></paragraph><paragraph id="ID1e2496337a9a4c7abf0e607bc86c5e52"><enum>(3)</enum><header>Notice
required</header><text>The Office of the Comptroller of the Currency and the
Corporation shall jointly give the Board of Governors reasonable prior notice
of any request that the Office of the Comptroller of the Currency and the
Corporation jointly intend to make under paragraph (2).</text>
</paragraph></subsection></section><section id="ID052925dd106f4df397ce8a6c3f53ace6"><enum>322.</enum><header>Transfer of
employees</header>
<subsection id="IDfcc930ea303b436f86b44ca5f9fcaa5f"><enum>(a)</enum><header>In
general</header>
<paragraph id="ID1c66944fb2394655a1c43d499f375507"><enum>(1)</enum><header>Office of
thrift supervision employees</header>
<subparagraph id="IDbcca61e1ab424044adc343b7125a3bb6"><enum>(A)</enum><header>In
general</header><text>All employees of the Office of Thrift Supervision shall
be transferred to the Office of the Comptroller of the Currency or the
Corporation for employment in accordance with this section.</text>
</subparagraph><subparagraph id="IDf40c6e3b79ce4d129eccbc571c894472"><enum>(B)</enum><header>Allocating
employees for transfer to receiving agencies</header><text>The Director of the
Office of Thrift Supervision, the Comptroller of the Currency, and the
Chairperson of the Corporation shall—</text>
<clause id="ID8a0b14a4c0754797b85d509160928e45"><enum>(i)</enum><text>jointly
determine the number of employees of the Office of Thrift Supervision necessary
to perform or support the functions that are transferred to the Office of the
Comptroller of the Currency or the Corporation by this title; and</text>
</clause><clause id="ID4cfd317eb0ac4496ab6bec53c5504c2b"><enum>(ii)</enum><text>consistent with
the determination under clause (i), jointly identify employees of the Office of
Thrift Supervision for transfer to the Office of the Comptroller of the
Currency or the Corporation.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="IDbd5b13f8a86944f0bce3b184c6d2af5c"><enum>(2)</enum><header>Board of
governors</header><text>The Comptroller of the Currency, the Chairperson of the
Corporation, and the Chairman of the Board of Governors shall—</text>
<subparagraph id="ID14977bf0565a411a83f0d8f63bad8dce"><enum>(A)</enum><text>jointly determine
the number of employees of the Board of Governors (including employees of the
Federal reserve banks who, on the day before the transfer date, are performing
functions on behalf of the Board of Governors) necessary to perform or support
the functions that are transferred to the Office of the Comptroller of the
Currency or the Corporation under this title; and</text>
</subparagraph><subparagraph id="IDcfd18fbf026447fdb4788e352deebc73"><enum>(B)</enum><text>consistent with
the determination under subparagraph (A), jointly identify employees of the
Board of Governors (including employees of the Federal reserve banks who, on
the day before the transfer date, are performing functions on behalf of the
Board of Governors) for transfer to the Office of the Comptroller of the
Currency or the Corporation.</text>
</subparagraph></paragraph><paragraph id="ID49ee829aabaf4d4e9df76beea5fff638"><enum>(3)</enum><header>Employees
transferred; service periods credited</header><text>For purposes of this
section, periods of service with a Federal home loan bank, a joint office of
Federal home loan banks, or a Federal reserve bank shall be credited as periods
of service with a Federal agency.</text>
</paragraph><paragraph id="IDd3b362f4c15b4110aff493c120fefa57"><enum>(4)</enum><header>Appointment
authority for excepted service transferred</header>
<subparagraph id="ID8cd9632ab9984cf2837959238f513147"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any appointment
authority of the Office of Thrift Supervision or the Board of Governors under
Federal law that relates to the functions transferred under section 312,
including the regulations of the Office of Personnel Management, for filling
the positions of employees in the excepted service shall be transferred to the
Comptroller of the Currency or the Chairperson of the Corporation, as
appropriate.</text>
</subparagraph><subparagraph id="ID937eeb5967674b88aa281ffb76c0eb99"><enum>(B)</enum><header>Declining
transfers allowed</header><text>The Office of the Comptroller of the Currency
or the Chairperson of the Corporation may decline to accept a transfer of
authority under subparagraph (A) (and the employees appointed under that
authority) to the extent that such authority relates to positions excepted from
the competitive service because of their confidential, policy-making,
policy-determining, or policy-advocating character.</text>
</subparagraph></paragraph><paragraph id="id99075CDC4A29410F9C9B96E117EAD7E7"><enum>(5)</enum><header>Additional
appointment authority</header><text>Notwithstanding any other provision of law,
the Office of the Comptroller of the Currency and the Corporation may appoint
transferred employees to positions in the Office of the Comptroller of the
Currency or the Corporation, respectively. For purposes of this paragraph, an
employee transferred from any Federal reserve bank shall be treated as an
employee of the Board of Governors.</text>
</paragraph></subsection><subsection id="IDc23b03d0363341d9acb2feed4fa47ac6"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under subsection (a)(1) shall—</text>
<paragraph id="ID995594751b03476ca90e3ab07a610b96"><enum>(1)</enum><text>be
transferred not later than 90 days after the transfer date; and</text>
</paragraph><paragraph id="ID10891666a4e046ed98d5ee52845e3996"><enum>(2)</enum><text>receive notice of
the position assignment of the employee not later than 120 days after the
effective date of the transfer of the employee.</text>
</paragraph></subsection><subsection id="IDc092ee94a1774009b8655eb9d37f0540"><enum>(c)</enum><header>Transfer of
functions</header>
<paragraph id="ID4fadd07de3bf4e928666176605ebeb20"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the transfer
of employees under this subtitle shall be deemed a transfer of functions for
the purpose of section 3503 of title 5, United States Code.</text>
</paragraph><paragraph id="IDd312bb68c6254c76978c44e27f3cd1e1"><enum>(2)</enum><header>Priority</header><text>If
any provision of this subtitle conflicts with any protection provided to a
transferred employee under section 3503 of title 5, United States Code, the
provisions of this subtitle shall control.</text>
</paragraph></subsection><subsection id="IDc03520f76a134249b75d2f6fb79f7896"><enum>(d)</enum><header>Employee status
and eligibility</header><text>The transfer of functions and employees under
this subtitle, and the abolishment of the Office of Thrift Supervision under
section 313, shall not affect the status of the transferred employees as
employees of an agency of the United States under any provision of law.</text>
</subsection><subsection id="ID962468a65d6846918dfae6df0d7cf962"><enum>(e)</enum><header>Equal status
and tenure positions</header>
<paragraph id="IDc4103fd75dc74aac8e4024e14ef8c554"><enum>(1)</enum><header>Status and
tenure</header>
<subparagraph id="id684A745B5EDF4DF8979B0BA1D6DD3ACC"><enum>(A)</enum><header>Office of
Thrift Supervision</header><text>Each transferred employee from the Office of
Thrift Supervision shall be placed in a position at the Office of the
Comptroller of the Currency or the Corporation with the same status and tenure
as the transferred employee held on the day before the date on which the
employee was transferred.</text>
</subparagraph><subparagraph id="idA0CC9830C9EA40CE9C3BB822547BF68F"><enum>(B)</enum><header>Board of
Governors</header><text>Each transferred employee from the Board of Governors
or from a Federal reserve bank shall be placed in a position with the same
status and tenure as employees of the Office of the Comptroller of the Currency
or the Corporation who perform similar functions and have similar periods of
service.</text>
</subparagraph></paragraph><paragraph id="ID32faf73ff40948b2b06db9412f1da3eb"><enum>(2)</enum><header>Functions</header><text>To
the extent practicable, each transferred employee shall be placed in a position
at the Office of the Comptroller of the Currency or the Corporation, as
applicable, responsible for the same functions and duties as the transferred
employee had on the day before the date on which the employee was transferred,
in accordance with the expertise and preferences of the transferred
employee.</text>
</paragraph></subsection><subsection id="IDd4dba9b860c84f378d13352077b7f64d"><enum>(f)</enum><header>No additional
certification requirements</header><text>An examiner who is a transferred
employee shall not be subject to any additional certification requirements
before being placed in a comparable position at the Office of the Comptroller
of the Currency or the Corporation, if the examiner carries out examinations of
the same type of institutions as an employee of the Office of the Comptroller
of the Currency or the Corporation as the employee was responsible for carrying
out before the date on which the employee was transferred.</text>
</subsection><subsection id="IDfd226a9401bc4858b9ba1fb0e149015e"><enum>(g)</enum><header>Personnel
actions limited</header>
<paragraph id="ID1e4a7ea0c6f94685ac5ce51512eace11"><enum>(1)</enum><header>2-Year
protection</header><text>Except as provided in paragraph (2), during the 2-year
period beginning on the transfer date, an employee holding a permanent position
on the day before the date on which the employee was transferred shall not be
involuntarily separated or involuntarily reassigned outside the locality pay
area (as defined by the Office of Personnel Management) of the employee.</text>
</paragraph><paragraph id="IDef5d3678dbd34f74a00020dad4ee4adf"><enum>(2)</enum><header>Exceptions</header><text>The
Comptroller of the Currency and the Chairperson of the Corporation, as
applicable, may—</text>
<subparagraph id="IDea88702706fa40478f459c4337e6f611"><enum>(A)</enum><text>separate a
transferred employee for cause, including for unacceptable performance;
or</text>
</subparagraph><subparagraph id="ID3ed1f2a6779f444fa15fa3d996c6f350"><enum>(B)</enum><text>terminate an
appointment to a position excepted from the competitive service because of its
confidential policy-making, policy-determining, or policy-advocating
character.</text>
</subparagraph></paragraph></subsection><subsection id="ID354f2ad52ecc45c1a337ee2c6f04bdfa"><enum>(h)</enum><header>Pay</header>
<paragraph id="ID44aebe65126a4ba89d63e337edc7663f"><enum>(1)</enum><header>2-Year
protection</header><text>Except as provided in paragraph (2), during the 2-year
period beginning on the date on which the employee was transferred under this
subtitle, a transferred employee shall be paid at a rate that is not less than
the basic rate of pay, including any geographic differential, that the
transferred employee received during the pay period immediately preceding the
date on which the employee was transferred.</text>
</paragraph><paragraph id="ID1bd8ae02d85f4f34a3586fc54f017cdd"><enum>(2)</enum><header>Exceptions</header><text>The
Comptroller of the Currency, the Chairperson of the Corporation, or the
Chairman of the Board of Governors may reduce the rate of basic pay of a
transferred employee—</text>
<subparagraph id="IDa732db47a724432298dd8fb27c197b92"><enum>(A)</enum><text>for cause,
including for unacceptable performance; or</text>
</subparagraph><subparagraph id="IDea1731c3305c4ccea9cb95b23692eb65"><enum>(B)</enum><text>with the consent
of the transferred employee.</text>
</subparagraph></paragraph><paragraph id="ID18c5c54987c04e8d85c3f93123c710f4"><enum>(3)</enum><header>Protection only
while employed</header><text>This subsection shall apply to a transferred
employee only during the period that the transferred employee remains employed
by Office of the Comptroller of the Currency or the Corporation.</text>
</paragraph><paragraph id="IDdd9393ca162f46f7aaec23954f0dc2bb"><enum>(4)</enum><header>Pay increases
permitted</header><text>Nothing in this subsection shall limit the authority of
the Comptroller of the Currency or the Chairperson of the Corporation to
increase the pay of a transferred employee.</text>
</paragraph></subsection><subsection id="ID29cad8559008451cbc445e2540d5e179"><enum>(i)</enum><header>Benefits</header>
<paragraph id="ID20b43aa207fb44f2879624362de7f10b"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="IDfaf40deb11e649e6ba2e72aa93cd06ac"><enum>(A)</enum><header>In
general</header>
<clause id="IDa77b605ef48b42659868d084d6182b08"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text>Each transferred employee shall remain
enrolled in the retirement plan of the transferred employee, for as long as the
transferred employee is employed by the Office of the Comptroller of the
Currency or the Corporation.</text>
</clause><clause id="ID03a8228640b947ada51594bcc6b084e5"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Comptroller of the Currency or the Chairperson
of the Corporation, as appropriate, shall pay any employer contributions to the
existing retirement plan of each transferred employee, as required under each
such existing retirement plan.</text>
</clause></subparagraph><subparagraph id="ID6fbf549d213944be80532536d0d60142"><enum>(B)</enum><header>Option for
employees transferred from Federal reserve system to be subject to Federal
employee retirement program</header>
<clause id="ID0697603eade045629a3415d84475027f"><enum>(i)</enum><header>Election</header><text>Any
transferred employee who was enrolled in a Federal Reserve System retirement
plan on the day before the date of the transfer of the employee to the Office
of the Comptroller of the Currency or the Corporation may, during the period
beginning 6 months after the transfer date and ending 1 year after the transfer
date, elect to be subject to the Federal employee retirement program.</text>
</clause><clause id="IDea0b92af2be84419b03dd4d64d9da970"><enum>(ii)</enum><header>Effective date
of coverage</header><text>For any employee making an election under clause (i),
coverage by the Federal employee retirement program shall begin 1 year after
the transfer date.</text>
</clause></subparagraph><subparagraph id="ID0b71335cfe374420bafe45ef4cb165bc"><enum>(C)</enum><header>Agency
participation in Federal reserve system retirement plan</header>
<clause id="IDdbed07c6088748f1b277da681372ff52"><enum>(i)</enum><header>Separate
account in Federal reserve system retirement plan established</header><text>A
separate account in the Federal Reserve System retirement plan shall be
established for employees transferred to the Office of the Comptroller of the
Currency or the Corporation under this title who do not make the election under
subparagraph (B).</text>
</clause><clause id="IDc844fc40ed4a4830aadb412b93ea2391"><enum>(ii)</enum><header>Funds
attributable to transferred employees remaining in Federal reserve system
retirement plan transferred</header><text>The proportionate share of funds in
the Federal Reserve System retirement plan, including the proportionate share
of any funding surplus in that plan, attributable to a transferred employee who
does not make the election under subparagraph (B), shall be transferred to the
account established under clause (i).</text>
</clause><clause id="id516B95773FC04DFA9330D30A43E505E2"><enum>(iii)</enum><header>Employer
contributions deposited</header><text>The Office of the Comptroller of the
Currency or the Corporation, as appropriate, shall deposit into the account
established under clause (i) the employer contributions that the Office of the
Comptroller of the Currency or the Corporation, respectively, makes on behalf
of transferred employees who do not make an election under subparagraph
(B).</text>
</clause><clause id="id11B5E9D7B89F4A5B8A68A6F09D0E35DB"><enum>(iv)</enum><header>Account
administration</header><text>The Office of the Comptroller of the Currency or
the Corporation, as appropriate, shall administer the account established under
clause (i) as a participation employer in the Federal Reserve System retirement
plan.</text>
</clause></subparagraph><subparagraph id="IDebb240e329d64abba4c75e9c30086934"><enum>(D)</enum><header>Definition</header><text>In
this paragraph, the term <term>existing retirement plan</term> means, with
respect to a transferred employee, the retirement plan (including the Financial
Institutions Retirement Fund), and any associated thrift savings plan, of the
agency from which the employee was transferred in which the employee was
enrolled on the day before the date on which the employee was
transferred.</text>
</subparagraph></paragraph><paragraph id="ID71df631f26444b5a93b7ba9daad73d70"><enum>(2)</enum><header>Benefits other
than retirement benefits</header>
<subparagraph id="IDe2cfb8b1299d418fa2b90d65986149f8"><enum>(A)</enum><header>During first
year</header>
<clause id="ID2de7dc0bdacd4df888990a56f358e8fb"><enum>(i)</enum><header>Existing plans
continue</header><text>During the 1-year period following the transfer date,
each transferred employee may retain membership in any employee benefit program
(other than a retirement benefit program) of the agency from which the employee
was transferred under this title, including any dental, vision, long term care,
or life insurance program to which the employee belonged on the day before the
transfer date.</text>
</clause><clause id="ID2885f8dced5341379410091de0f0649b"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Office of the Comptroller of the Currency or the
Corporation, as appropriate, shall pay any employer cost required to extend
coverage in the benefit program to the transferred employee as required under
that program or negotiated agreements.</text>
</clause></subparagraph><subparagraph id="IDc82d94e50eb549399c519f1e77df56ec"><enum>(B)</enum><header>Dental, vision,
or life insurance after first year</header><text>If, after the 1-year period
beginning on the transfer date, the Office of the Comptroller of the Currency
or the Corporation determines that the Office of the Comptroller of the
Currency or the Corporation, as the case may be, will not continue to
participate in any dental, vision, or life insurance program of an agency from
which an employee was transferred, a transferred employee who is a member of
the program may, before the decision takes effect and without regard to any
regularly scheduled open season, elect to enroll in—</text>
<clause id="ID8bf4fa7f38214cb89dde0f08a21a5864"><enum>(i)</enum><text>the
enhanced dental benefits program established under chapter 89A of title 5,
United States Code;</text>
</clause><clause id="ID0e3b5edaf43c4569a3bd3da0ab3e2c3a"><enum>(ii)</enum><text>the
enhanced vision benefits established under chapter 89B of title 5, United
States Code; and</text>
</clause><clause id="ID190f34ad30cd4abda57d529d404d32d3"><enum>(iii)</enum><text>the
Federal Employees’ Group Life Insurance Program established under chapter 87 of
title 5, United States Code, without regard to any requirement of
insurability.</text>
</clause></subparagraph><subparagraph id="IDc26d74421b96411b8e6d97b9816beda5"><enum>(C)</enum><header>Long term care
insurance after 1st year</header><text>If, after the 1-year period beginning on
the transfer date, the Office of the Comptroller of the Currency or the
Corporation determines that the Office of the Comptroller of the Currency or
the Corporation, as appropriate, will not continue to participate in any long
term care insurance program of an agency from which an employee transferred, a
transferred employee who is a member of such a program may, before the decision
takes effect, elect to apply for coverage under the Federal Long Term Care
Insurance Program established under chapter 90 of title 5, United States Code,
under the underwriting requirements applicable to a new active workforce
member, as described in part 875 of title 5, Code of Federal Regulations (or
any successor thereto).</text>
</subparagraph><subparagraph id="ID6c4ef7519a674ee4bbae6bd659d65198"><enum>(D)</enum><header>Contribution of
transferred employee</header>
<clause id="IDe6e6ca226cf747258d631f6363258a5c"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), a transferred employee who is
enrolled in a plan under the Federal Employees Health Benefits Program shall
pay any employee contribution required under the plan.</text>
</clause><clause id="ID4b7da6cd4dd442a39d33d28a38adb906"><enum>(ii)</enum><header>Cost
differential</header><text>The Office of the Comptroller of the Currency or the
Corporation, as applicable, shall pay any difference in cost between the
employee contribution required under the plan provided to transferred employees
by the agency from which the employee transferred on the date of enactment of
this Act and the plan provided by the Office of the Comptroller of the Currency
or the Corporation, as the case may be, under this section.</text>
</clause><clause id="IDc65ea0969be04f37b294048142f6dcca"><enum>(iii)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall transfer to the Employees Health
Benefits Fund established under section 8909 of title 5, United States Code, an
amount determined by the Director of the Office of Personnel Management, after
consultation with the Comptroller of the Currency or the Chairperson of the
Corporation, as the case may be, and the Office of Management and Budget, to be
necessary to reimburse the Fund for the cost to the Fund of providing any
benefits under this subparagraph that are not otherwise paid for by a
transferred employee under clause (i).</text>
</clause></subparagraph><subparagraph id="ID8e84cfef576d436fabb4aa8234147110"><enum>(E)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="ID47c2febb3377436fbb7040a0882d3831"><enum>(i)</enum><header>In
general</header><text>An annuitant, as defined in section 8901 of title 5,
United States Code, who is enrolled in a life insurance plan administered by an
agency from which employees are transferred under this title on the day before
the transfer date shall be eligible for coverage by a life insurance plan under
sections 8706(b), 8714a, 8714b, or 8714c of title 5, United States Code, or by
a life insurance plan established by the Office of the Comptroller of the
Currency or the Corporation, as applicable, without regard to any regularly
scheduled open season or any requirement of insurability.</text>
</clause><clause id="ID30a1ddd9180a42b0ade642456760d3b8"><enum>(ii)</enum><header>Contribution
of transferred employee</header>
<subclause id="ID8ec67d3d9eba4fca8204755638c4f14f"><enum>(I)</enum><header>In
general</header><text>Subject to subclause (II), a transferred employee
enrolled in a life insurance plan under this subparagraph shall pay any
employee contribution required by the plan.</text>
</subclause><subclause id="IDc0cbb5685cee4a8386c9e14dc85f37da"><enum>(II)</enum><header>Cost
differential</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall pay any difference in cost between the
benefits provided by the agency from which the employee transferred on the date
of enactment of this Act and the benefits provided under this section.</text>
</subclause><subclause id="IDf0f60163492346a3ac5d1d740ed66fb8"><enum>(III)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall transfer to the Federal Employees’ Group
Life Insurance Fund established under section 8714 of title 5, United States
Code, an amount determined by the Director of the Office of Personnel
Management, after consultation with the Comptroller of the Currency or the
Chairperson of the Corporation, as the case may be, and the Office of
Management and Budget, to be necessary to reimburse the Federal Employees’
Group Life Insurance Fund for the cost to the Federal Employees’ Group Life
Insurance Fund of providing benefits under this subparagraph not otherwise paid
for by a transferred employee under subclause (I).</text>
</subclause><subclause id="ID46ca33cb79c94c7ab097d2dd100cfb81"><enum>(IV)</enum><header>Credit for
time enrolled in other plans</header><text>For any transferred employee,
enrollment in a life insurance plan administered by the agency from which the
employee transferred, immediately before enrollment in a life insurance plan
under chapter 87 of title 5, United States Code, shall be considered as
enrollment in a life insurance plan under that chapter for purposes of section
8706(b)(1)(A) of title 5, United States Code.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="ID76ca14b796784bfba88ab138dffba3c9"><enum>(j)</enum><header>Incorporation
into agency pay system</header><text>Not later than 2 years after the transfer
date, the Comptroller of the Currency and the Chairperson of the Corporation
shall place each transferred employee into the established pay system and
structure of the appropriate employing agency.</text>
</subsection><subsection id="ID341b9b20a0fe40c78b950b9eaafd7bbf"><enum>(k)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Comptroller of the Currency and the Chairperson of the Corporation—</text>
<paragraph id="IDb6e61e5d105d4a49bed8249bc4414428"><enum>(1)</enum><text>may
not take any action that would unfairly disadvantage a transferred employee
relative to any other employee of the Office of the Comptroller of the Currency
or the Corporation on the basis of prior employment by the Office of Thrift
Supervision, the Board of Governors, or a Federal reserve bank; and</text>
</paragraph><paragraph id="ID0bfc808ad0ee401b9d7b53e2152a64fc"><enum>(2)</enum><text>may
take such action as is appropriate in an individual case to ensure that a
transferred employee receives equitable treatment, with respect to the status,
tenure, pay, benefits (other than benefits under programs administered by the
Office of Personnel Management), and accrued leave or vacation time for prior
periods of service with any Federal agency of the transferred employee.</text>
</paragraph></subsection><subsection id="ID64eb9991bda24cafac9ab58f2f5f4b83"><enum>(l)</enum><header>Reorganization</header>
<paragraph id="ID1267aeb88fa64418b8a6423cceeed81b"><enum>(1)</enum><header>In
general</header><text>If the Comptroller of the Currency or the Chairperson of
the Corporation determines, during the 2-year period beginning 1 year after the
transfer date, that a reorganization of the staff of the Office of the
Comptroller of the Currency or the Corporation, respectively, is required, the
reorganization shall be deemed a <quote>major reorganization</quote> for
purposes of affording affected employees retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code.</text>
</paragraph><paragraph id="IDae3c5e9d4378491788413f9985a22401"><enum>(2)</enum><header>Service
credit</header><text>For purposes of this subsection, periods of service with a
Federal home loan bank, a joint office of Federal home loan banks or a Federal
reserve bank shall be credited as periods of service with a Federal
agency.</text>
</paragraph></subsection></section><section id="IDddeb9f14780347249decd22c9cd34ac7"><enum>323.</enum><header>Property
transferred</header>
<subsection id="IDb7a5f9114e814843aeba16292c9000f5"><enum>(a)</enum><header>Property
defined</header><text>For purposes of this section, the term
<term>property</term> includes all real property (including leaseholds) and all
personal property, including computers, furniture, fixtures, equipment, books,
accounts, records, reports, files, memoranda, paper, reports of examination,
work papers, and correspondence related to such reports, and any other
information or materials.</text>
</subsection><subsection id="ID8e170b3008a54897bdf6b8ce923526ab"><enum>(b)</enum><header>Property of the
Office of Thrift Supervision</header><text>Not later than 90 days after the
transfer date, all property of the Office of Thrift Supervision that the
Comptroller of the Currency and the Chairperson of the Corporation jointly
determine is used, on the day before the transfer date, to perform or support
the functions of the Office of Thrift Supervision transferred to the Office of
the Comptroller of the Currency or the Corporation under this title, shall be
transferred to the Office of the Comptroller of the Currency or the Corporation
in a manner consistent with the transfer of employees under this
subtitle.</text>
</subsection><subsection id="idEA0109E57B92465F921935087CE34684"><enum>(c)</enum><header>Property of the
Board of Governors</header>
<paragraph id="id69DD79E5F14B429590640F151E5EB61F"><enum>(1)</enum><header>In
general</header><text>Not later than 90 days after the transfer date, all
property of the Board of Governors that the Office of the Comptroller of the
Currency, the Corporation, and the Board of Governors jointly determine is
used, on the day before the transfer date, to perform or support the functions
of the Board of Governor transferred to the Office of the Comptroller of the
Currency or the Corporation under this title, shall be transferred to the
Office of the Comptroller of the Currency or the Corporation in a manner
consistent with the transfer of employees under this subtitle.</text>
</paragraph><paragraph id="id0B0772E3877249E6B619E9E60205DE83"><enum>(2)</enum><header>Property of
Federal reserve banks</header><text>Any property of any Federal reserve bank
that, on the day before the transfer date, is used to perform or support the
functions of the Board of Governors transferred to the Office of the
Comptroller of the Currency or the Corporation by this title shall be treated
as property of the Board of Governors for purposes of paragraph (1).</text>
</paragraph></subsection><subsection id="IDbf3bcc08f57a42c8be708700758417a2"><enum>(d)</enum><header>Contracts
related to property transferred</header><text>Each contract, agreement, lease,
license, permit, and similar arrangement relating to property transferred to
the Office of the Comptroller of the Currency or the Corporation by this
section shall be transferred to the Office of the Comptroller of the Currency
or the Corporation, as appropriate, together with the property to which it
relates.</text>
</subsection><subsection id="IDf7495816d1f34226bcd52c2852df81cd"><enum>(e)</enum><header>Preservation of
property</header><text>Property identified for transfer under this section
shall not be altered, destroyed, or deleted before transfer under this
section.</text>
</subsection></section><section id="ID4bf83d0418794868bff61669f6ba0c1b"><enum>324.</enum><header>Funds
transferred</header><text display-inline="no-display-inline">The funds that, on
the day before the transfer date, the Director of the Office of Thrift
Supervision (in consultation with the Comptroller of the Currency, the
Chairperson of the Corporation, and the Chairman of the Board of Governors)
determines are not necessary to dispose of the affairs of the Office of Thrift
Supervision under section 325 and are available to the Office of Thrift
Supervision to pay the expenses of the Office of Thrift Supervision—</text>
<paragraph id="id2DBDA9A74DDF49DA9A1711F3C0E02600"><enum>(1)</enum><text display-inline="yes-display-inline">relating to the functions of the Office of
Thrift Supervision transferred under section 312(b)(1)(B), shall be transferred
to the Office of the Comptroller of the Currency on the transfer date;</text>
</paragraph><paragraph id="id2010B65A9CD2438DB2AD03D90F88A298"><enum>(2)</enum><text>relating to the
functions of the Office of Thrift Supervision transferred under section
312(b)(1)(C), shall be transferred to the Corporation on the transfer date;
and</text>
</paragraph><paragraph id="id079EDFFF432D449EA6C9F3140397CE1C"><enum>(3)</enum><text>relating to the
functions of the Office of Thrift Supervision transferred under section
312(b)(1)(A), shall be transferred to the Board of Governors on the transfer
date.</text>
</paragraph></section><section id="IDf4f51729c33b4995a502f24a956ba3c8"><enum>325.</enum><header>Disposition of
affairs</header>
<subsection id="ID755cd2d2358a40e7b568e160e2132961"><enum>(a)</enum><header>Authority of
Director</header><text>During the 90-day period beginning on the transfer date,
the Director of the Office of Thrift Supervision—</text>
<paragraph id="ID2f4fd72984bd4b2497aa1e249b522cd6"><enum>(1)</enum><text>shall, solely for
the purpose of winding up the affairs of the Office of Thrift Supervision
relating to any function transferred to the Office of the Comptroller of the
Currency, the Corporation, or the Board of Governors under this title—</text>
<subparagraph id="ID591eb6750aae495c9e9b006311b9f189"><enum>(A)</enum><text>manage the
employees of the Office of Thrift Supervision who have not yet been transferred
and provide for the payment of the compensation and benefits of the employees
that accrue before the date on which the employees are transferred under this
title; and</text>
</subparagraph><subparagraph id="ID0108111c67194b55af30f800f8be4f24"><enum>(B)</enum><text>manage any
property of the Office of Thrift Supervision, until the date on which the
property is transferred under section 323; and</text>
</subparagraph></paragraph><paragraph id="ID5bbcba34232044c3b5d58fcf7439c6fc"><enum>(2)</enum><text>may
take any other action necessary to wind up the affairs of the Office of Thrift
Supervision.</text>
</paragraph></subsection><subsection id="IDde9b8e0f8dff4fa7be277d96afdd224b"><enum>(b)</enum><header>Status of
Director</header>
<paragraph id="ID8cb0529ba2414c1697e0d3a1ac8542a4"><enum>(1)</enum><header>In
general</header><text>Notwithstanding the transfer of functions under this
subtitle, during the 90-day period beginning on the transfer date, the Director
of the Office of Thrift Supervision shall retain and may exercise any authority
vested in the Director of the Office of Thrift Supervision on the day before
the transfer date, only to the extent necessary—</text>
<subparagraph id="ID921693eca2f945209cc2d042686cecd8"><enum>(A)</enum><text>to wind up the
Office of Thrift Supervision; and</text>
</subparagraph><subparagraph id="IDf3e2aaa962434b1e93dbaa4f3173e1fe"><enum>(B)</enum><text>to carry out the
transfer under this subtitle during such 90-day period.</text>
</subparagraph></paragraph><paragraph id="IDba462ede154f4ee48f76e4af39a1e20c"><enum>(2)</enum><header>Other
provisions</header><text>For purposes of paragraph (1), the Director of the
Office of Thrift Supervision shall, during the 90-day period beginning on the
transfer date, continue to be—</text>
<subparagraph id="ID0dc5bb4ae9db43a8a59078ab082cc647"><enum>(A)</enum><text>treated as an
officer of the United States; and</text>
</subparagraph><subparagraph id="ID2e35e7a4242d47eb877036c1c854e5ff"><enum>(B)</enum><text>entitled to
receive compensation at the same annual rate of basic pay that the Director of
the Office of Thrift Supervision received on the day before the transfer
date.</text>
</subparagraph></paragraph></subsection><subsection id="id265689763E884F92AB4ED49311A1AA6F"><enum>(c)</enum><header>Authority of
Chairman of the Board of Governors</header><text>During the 90-day period
beginning on the transfer date, the Chairman of the Board of Governors
shall—</text>
<paragraph id="idB248AFC70BD9463CB1B75F115683D133"><enum>(1)</enum><text>manage the
employees of the Board of Governors who have not yet been transferred under
this title and provide for the payment of the compensation and benefits of the
employees that accrue before the date on which the employees are transferred
under this title; and</text>
</paragraph><paragraph id="id17CB909A32404494B41988AD58B91C4F"><enum>(2)</enum><text>manage any
property of the Board of Governors that is transferred under this title, until
the date on which the property is transferred under section 323.</text>
</paragraph></subsection></section><section id="ID60a39b8f255941339bfdde2daee20aad"><enum>326.</enum><header>Continuation
of services</header><text display-inline="no-display-inline">Any agency,
department, or other instrumentality of the United States, and any successor to
any such agency, department, or instrumentality, that was, before the transfer
date, providing support services to the Office of Thrift Supervision or the
Board of Governors in connection with functions transferred to the Office of
the Comptroller of the Currency, the Corporation or the Board of Governors
under this title, shall—</text>
<paragraph id="ID4f8b9fc702074e45a15fd2c79fc11127"><enum>(1)</enum><text>continue to
provide such services, subject to reimbursement by the Office of the
Comptroller of the Currency, the Corporation, or the Board of Governors, until
the transfer of functions under this title is complete; and</text>
</paragraph><paragraph id="ID3fab4af86f6046caa0166ea3e1b59903"><enum>(2)</enum><text>consult with the
Comptroller of the Currency, the Chairperson of the Corporation, or the
Chairman of the Board of Governors, as appropriate, to coordinate and
facilitate a prompt and orderly transition.</text>
</paragraph></section></subtitle><subtitle id="id7A534EFB1D4C4D6EB92FDD972C02C167"><enum>C</enum><header>Federal Deposit
Insurance Corporation</header>
<section id="ID836b7d581f1248818d5cb1d12f2f3858"><enum>331.</enum><header>Deposit
insurance reforms</header>
<subsection id="ID504e9a94f7b8499d8460b6f17207d68e"><enum>(a)</enum><header>Size
distinctions</header><text>Section 7(b)(2) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)) is amended—</text>
<paragraph id="IDaeb8c8a3d8004d2182a78b9c93558eb9"><enum>(1)</enum><text>by
striking subparagraph (D); and</text>
</paragraph><paragraph id="IDb82ee91ff8bc456ebd6fec8ef6c2cf6c"><enum>(2)</enum><text>by
redesignating subparagraph (C) as subparagraph (D).</text>
</paragraph></subsection><subsection id="ID6cade22fa2174fdd81323271e0162e8b"><enum>(b)</enum><header>Assessment
base</header>
<paragraph id="idFFCF8951D6CD466B972D43DB0B289312"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the Corporation
shall amend the regulations issued by the Corporation under section 7(b)(2) of
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) to define the term
<term>assessment base</term> with respect to an insured depository institution
for purposes of that section 7(b)(2), as an amount equal to—</text>
<subparagraph id="id5975563B6C414378AE52F37E7F66EF18"><enum>(A)</enum><text>the average total
consolidated assets of the insured depository institution during the assessment
period; minus</text>
</subparagraph><subparagraph id="id19689E08947F4A87BAFE3D6652F8A8DC"><enum>(B)</enum><text>the sum
of—</text>
<clause id="id4372754A5DA14E80B3D56F9B1F9CDB32"><enum>(i)</enum><text>the
average tangible equity of the insured depository institution during the
assessment period; and</text>
</clause><clause id="id59A41820C8A849198DD589613E83C229"><enum>(ii)</enum><text>the
average long-term unsecured debt of the insured depository institution during
the assessment period.</text>
</clause></subparagraph></paragraph><paragraph id="id2F32EDE729AB4E1088927D31C4393D22"><enum>(2)</enum><header>Determination</header><text>If,
not later than 1 year after the date of enactment of this Act, the Corporation
submits to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives, in
writing, a finding that an amendment to the rules of the Corporation regarding
the definition of the term <term>assessment base</term>, as provided in
paragraph (1), would reduce the effectiveness of the risk-based assessment
system of the Corporation or increase the risk of loss to the Deposit Insurance
Fund, the Corporation may—</text>
<subparagraph id="idD9FFB13E2E1949EEBB88700953588847"><enum>(A)</enum><text>continue in
effect the definition of the term <term>assessment base</term>, as in effect on
the day before the date of enactment of this Act; or</text>
</subparagraph><subparagraph id="idE510B6FDF3D7449F89EA9E094C257AFE"><enum>(B)</enum><text>establish, by
rule, a definition of the term <term>assessment base</term> that the
Corporation deems appropriate.</text>
</subparagraph></paragraph></subsection></section><section id="IDe79413c1a8b546918d4aa0f77a13f2dc"><enum>332.</enum><header>Management of
the Federal Deposit Insurance Corporation</header>
<subsection id="idC314519B84444E1189C2BC7A2B22053D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 2 of the
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—</text>
<paragraph id="IDe36787b6398f43dd9165944d80af461e"><enum>(1)</enum><text>in
subsection (a)(1)(B), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Director of the Consumer Financial
Protection Bureau</quote>;</text>
</paragraph><paragraph id="ID724fa4a2dd444b6ba0da21683f439a27"><enum>(2)</enum><text>by
amending subsection (d)(2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idF46F850D0C784A4CAE7E9CB60C535A9E" style="OLC">
<paragraph id="ID1874241f955943f0a6a56c64b0a746e5"><enum>(2)</enum><header>Acting
officials may serve</header><text>In the event of a vacancy in the Office of
the Comptroller of the Currency and pending the appointment of a successor, or
during the absence or disability of the Comptroller of the Currency, the acting
Comptroller of the Currency shall be a member of the Board of Directors in the
place of the Comptroller of the
Currency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID1a13e5818e154cc99a474451cff46a61"><enum>(3)</enum><text>in
subsection (f)(2), by striking <quote>or of the Office of Thrift
Supervision</quote>.</text>
</paragraph></subsection><subsection commented="no" id="ID48bdc833f9e64c609e2d8ed459b96a95"><enum>(b)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section></subtitle><subtitle id="idAC1CA2D4FAD64DD0A3797508076E24A0"><enum>D</enum><header>Termination of
Federal Thrift Charter</header>
<section id="IDfc51b0732490489a974b8c54f9cc4fdc"><enum>341.</enum><header>Termination of
Federal savings associations</header>
<subsection id="ID3fd97b002cb449768943eb3e823b5a58"><enum>(a)</enum><header>In
general</header><text>Beginning on the date of enactment of this Act, the
Director of the Office of Thrift Supervision, or the Comptroller of the
Currency, may not issue a charter for a Federal savings association under
section 5 of the Home Owners’ Loan Act (12 U.S.C. 1464).</text>
</subsection><subsection id="ID1716afd2b9bc49ff9ee1cf3f69182bfc"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 5(a) of the Home Owner’s Loan Act (12 U.S.C.
1464(a)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB2F14F45C3CF47888AA1A5FDCB7AA5F4" style="OLC">
<subsection id="ID1afe848edc71408ba5554007dab9fe41"><enum>(a)</enum><header>In
general</header><text>In order to provide thrift institutions for the deposit
of funds and for the extension of credit for homes and other goods and
services, the Comptroller of the Currency is authorized, under such regulations
as the Comptroller of the Currency may prescribe, to provide for the
examination, operation, and regulation of associations to be known as
<quote>Federal savings associations</quote> (including Federal savings banks),
giving primary consideration to the best practices of thrift institutions in
the United States. The lending and investment powers conferred by this section
are intended to encourage such institutions to provide credit for housing
safely and
soundly.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0e6de983e7e6443cb9618cf3da236349"><enum>(c)</enum><header>Prospective
repeal</header><text>Effective on the date on which the Comptroller of the
Currency determines that no Federal savings associations exist, section 5 of
the Home Owner’s Loan Act (12 U.S.C. 1464) is repealed.</text>
</subsection></section><section id="IDdc8c3bb066f54b1084efdf1563d797bb"><enum>342.</enum><header>Branching</header><text display-inline="no-display-inline">Notwithstanding the Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.), the Bank Holding Company Act of 1956
(12 U.S.C. 1841 et seq.), or any other provision of Federal or State law, a
savings association that becomes a bank may continue to operate any branch or
agency that the savings association operated immediately before the savings
association became a bank.</text>
</section></subtitle><enum>IV</enum><header>Regulation of
advisers to hedge funds and others</header>
<section id="id8A34EF1D92E74CEB9638561E9C1C8B27"><enum>401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Private Fund Investment Advisers Registration Act of
2010</quote>.</text>
</section><section id="idDB2EC9BFFA594A4DA8B65778E2199714"><enum>402.</enum><header>Definitions</header>
<subsection id="idFABFBB04FC334C07A3DDBD945B1777F5"><enum>(a)</enum><header>Investment
Advisers Act of 1940 definitions</header><text display-inline="yes-display-inline">Section 202(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–2(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id6C10F0A438A44558B4157B120D3D8566" style="OLC">
<paragraph id="id765D84F0B061484FAE4BDA06B5D11827"><enum>(29)</enum><text>The term
<term>private fund</term> means an issuer that would be an investment company,
as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C.
80a–3), but for section 3(c)(1) or 3(c)(7) of that Act.</text>
</paragraph><paragraph id="ID69e62c59a504498591c3ef67fcfa2ca8"><enum>(30)</enum><text>The term
<term>foreign private adviser</term> means any investment adviser who—</text>
<subparagraph id="ID8479469beaea41f6acfdb329ca925cba"><enum>(A)</enum><text>has no place of
business in the United States;</text>
</subparagraph><subparagraph id="ID930453d80892414cba65f391cc1ed443"><enum>(B)</enum><text>has, in total,
fewer than 15 clients who are domiciled in or residents of the United
States;</text>
</subparagraph><subparagraph id="IDd523ec6cd20246a392f1cc25a8e6d9b4"><enum>(C)</enum><text>has aggregate
assets under management attributable to clients in the United States and
investors in the United States in private funds advised by the investment
adviser of less than $25,000,000, or such higher amount as the Commission may,
by rule, deem appropriate in accordance with the purposes of this title;
and</text>
</subparagraph><subparagraph id="ID4e25425cf3af4de186df12c1593a076d"><enum>(D)</enum><text>neither—</text>
<clause id="idB331B06123574B74B9E27B0017283D27"><enum>(i)</enum><text>holds
itself out generally to the public in the United States as an investment
adviser; nor</text>
</clause><clause id="id341FEBCD2E854F7B97BB1B2397C0FE05"><enum>(ii)</enum><text>acts
as—</text>
<subclause id="idFC84BF3644E4429D8CD1C77427AE7063"><enum>(I)</enum><text>an
investment adviser to any investment company registered under the Investment
Company Act of 1940; or</text>
</subclause><subclause id="idF400BAC74A60453CB78BAE5AF74FC383"><enum>(II)</enum><text>a
company that has elected to be a business development company pursuant to
section 54 of the Investment Company Act of 1940 (15 U.S.C. 80a–53), and has
not withdrawn its
election.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id16A1BB79FD3042C4AB6E48D7FC4FCC18"><enum>(b)</enum><header>Other
definitions</header><text>As used in this title, the terms <quote>investment
adviser</quote> and <quote>private fund</quote> have the same meanings as in
section 202 of the Investment Advisers Act of 1940, as amended by this
title.</text>
</subsection></section><section id="ID06372e5736074826b721edb52ace152a"><enum>403.</enum><header>Elimination of
private adviser exemption; limited exemption for foreign private advisers;
limited intrastate exemption</header><text display-inline="no-display-inline">Section 203(b) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(b)) is amended—</text>
<paragraph id="ID46e7f06b3ae741f4b01e573116e992da"><enum>(1)</enum><text>in
paragraph (1), by inserting <quote>, other than an investment adviser who acts
as an investment adviser to any private fund,</quote> before <quote>all of
whose</quote>;</text>
</paragraph><paragraph id="IDa444229f4c2a426c92c7573c48f11d6a"><enum>(2)</enum><text>by
striking paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id7358DDB69BE840A1BCCD37F8CD83DB2D" style="OLC">
<paragraph id="IDe3188220df6345a08e050c62767ee821"><enum>(3)</enum><text>any investment
adviser that is a foreign private
adviser;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idAC8ED76F86EA4F1B82E7C2EC5E4EE1FE"><enum>(3)</enum><text>in
paragraph (5), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="ID61f3732a88a44fd6b2309dc3f8a1ff68"><enum>(4)</enum><text>in
paragraph (6), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</paragraph><paragraph id="id65AAC2777AC0465DA23D21FA42C306BE"><enum>(5)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idCC008315C1F649A9B848688CB8ABF529" style="OLC">
<paragraph commented="no" id="ID5948ea11b31f4946a98b6fc9ebe2803f"><enum>(7)</enum><text>any investment
adviser, other than any entity that has elected to be regulated or is regulated
as a business development company pursuant to section 54 of the Investment
Company Act of 1940 (15 U.S.C. 80a–54), who solely advises—</text>
<subparagraph commented="no" id="ID2f8f427830984c06949b7d5ad36ec902"><enum>(A)</enum><text>small business
investment companies that are licensees under the Small Business Investment Act
of 1958;</text>
</subparagraph><subparagraph commented="no" id="ID771e1a9527a64100af12584c2617aaf5"><enum>(B)</enum><text>entities that
have received from the Small Business Administration notice to proceed to
qualify for a license as a small business investment company under the Small
Business Investment Act of 1958, which notice or license has not been revoked;
or</text>
</subparagraph><subparagraph commented="no" id="ID78a2c836e3f5407b88be8cb173a50ed7"><enum>(C)</enum><text>applicants that
are affiliated with 1 or more licensed small business investment companies
described in subparagraph (A) and that have applied for another license under
the Small Business Investment Act of 1958, which application remains
pending.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDfb3603b5fa1f4b3588e4f2db811eed7c"><enum>404.</enum><header>Collection of
systemic risk data; reports; examinations; disclosures</header><text display-inline="no-display-inline">Section 204 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–4) is amended—</text>
<paragraph id="IDfe60f9cfc09d4e42a06748d6168d72f7"><enum>(1)</enum><text>by
redesignating subsections (b) and (c) as subsections (c) and (d), respectively;
and</text>
</paragraph><paragraph id="ID74ce68991bad41e7b1bddfa32485c4a2"><enum>(2)</enum><text>by
inserting after subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="idA1FDC1CCFF604A6A96581D2219BCFD45" style="OLC">
<subsection id="ID4dcecf101ce64398b707d9275ed468be"><enum>(b)</enum><header>Records and
reports of private funds</header>
<paragraph id="ID0de6c8e04f2840ccb86d94ff8203c91b"><enum>(1)</enum><header>In
general</header><text>The Commission may require any investment adviser
registered under this title—</text>
<subparagraph id="id8A646F433CF94DFE8AB13DAD9805B47C"><enum>(A)</enum><text>to maintain such
records of, and file with the Commission such reports regarding, private funds
advised by the investment adviser, as necessary and appropriate in the public
interest and for the protection of investors, or for the assessment of systemic
risk by the Financial Stability Oversight Council (in this subsection referred
to as the <quote>Council</quote>); and</text>
</subparagraph><subparagraph id="id6B1C18A34475446CA80C33030D7E11E0"><enum>(B)</enum><text>to provide or
make available to the Council those reports or records or the information
contained therein.</text>
</subparagraph></paragraph><paragraph commented="no" id="idCD69DD948A0E42B7845E3CFF5789363F"><enum>(2)</enum><header>Treatment of
records</header><text>The records and reports of any private fund to which an
investment adviser registered under this title provides investment advice shall
be deemed to be the records and reports of the investment adviser.</text>
</paragraph><paragraph id="IDf2267c67d1574d39aa41c98113cce221"><enum>(3)</enum><header>Required
information</header><text>The records and reports required to be maintained by
a private fund and subject to inspection by the Commission under this
subsection shall include, for each private fund advised by the investment
adviser, a description of—</text>
<subparagraph id="IDc40447f6f37447879f42b421a741b3af"><enum>(A)</enum><text>the amount of
assets under management and use of leverage;</text>
</subparagraph><subparagraph id="idBD9CFE08EC944B5AB4665131B6481ACF"><enum>(B)</enum><text>counterparty
credit risk exposure;</text>
</subparagraph><subparagraph id="id777A9FBD8A5542BC93A9715AA874C923"><enum>(C)</enum><text>trading and
investment positions;</text>
</subparagraph><subparagraph id="id82733CAFC41442249C1434165442E63A"><enum>(D)</enum><text>valuation
policies and practices of the fund;</text>
</subparagraph><subparagraph id="idD5C723EB144F495281FBA51169C72A4E"><enum>(E)</enum><text>types of assets
held;</text>
</subparagraph><subparagraph id="idCF0DFF2CBBBF46448895AA79C8D3AE2F"><enum>(F)</enum><text>side arrangements
or side letters, whereby certain investors in a fund obtain more favorable
rights or entitlements than other investors;</text>
</subparagraph><subparagraph id="id0C93B10024B942B2B49C9D960B28871E"><enum>(G)</enum><text>trading
practices; and</text>
</subparagraph><subparagraph id="ID1034eaefc70b453ead26ec5646a004ae"><enum>(H)</enum><text>such other
information as the Commission, in consultation with the Council, determines is
necessary and appropriate in the public interest and for the protection of
investors or for the assessment of systemic risk, which may include the
establishment of different reporting requirements for different classes of fund
advisers, based on the type or size of private fund being advised.</text>
</subparagraph></paragraph><paragraph id="ID44a100fbe29f4eb39d3564657bdae5f3"><enum>(4)</enum><header>Maintenance of
records</header><text>An investment adviser registered under this title shall
maintain such records of private funds advised by the investment adviser for
such period or periods as the Commission, by rule, may prescribe as necessary
and appropriate in the public interest and for the protection of investors, or
for the assessment of systemic risk.</text>
</paragraph><paragraph id="id427D33FE36624F5A94687AA314A63DE3"><enum>(5)</enum><header>Filing of
records</header><text>The Commission shall issue rules requiring each
investment adviser to a private fund to file reports containing such
information as the Commission deems necessary and appropriate in the public
interest and for the protection of investors or for the assessment of systemic
risk.</text>
</paragraph><paragraph id="IDec54b16500384b8fa4455990d10d4fab"><enum>(6)</enum><header>Examination of
records</header>
<subparagraph id="ID16ec8cd97fa5433db2dcc07ce607f5a4"><enum>(A)</enum><header>Periodic and
special examinations</header><text>The Commission—</text>
<clause id="idBAFC5ABAE52C449E96D2022335F36EA0"><enum>(i)</enum><text>shall
conduct periodic inspections of all records of private funds maintained by an
investment adviser registered under this title in accordance with a schedule
established by the Commission; and</text>
</clause><clause id="idD138CCD37ACF4560854EFA0330091A5C"><enum>(ii)</enum><text>may
conduct at any time and from time to time such additional, special, and other
examinations as the Commission may prescribe as necessary and appropriate in
the public interest and for the protection of investors, or for the assessment
of systemic risk.</text>
</clause></subparagraph><subparagraph id="IDb257ee9aadbb49c98b66fa4b84d1df8b"><enum>(B)</enum><header>Availability of
records</header><text>An investment adviser registered under this title shall
make available to the Commission any copies or extracts from such records as
may be prepared without undue effort, expense, or delay, as the Commission or
its representatives may reasonably request.</text>
</subparagraph></paragraph><paragraph id="IDa97c83ab25604e2ca54aaadf7b3ce1c5"><enum>(7)</enum><header>Information
sharing</header>
<subparagraph id="id95EEFB3843424DC0AF33903B4FB043F8"><enum>(A)</enum><header>In
general</header><text>The Commission shall make available to the Council copies
of all reports, documents, records, and information filed with or provided to
the Commission by an investment adviser under this subsection as the Council
may consider necessary for the purpose of assessing the systemic risk posed by
a private fund.</text>
</subparagraph><subparagraph id="ID3d5e15308ab742af9e16f837d195a10b"><enum>(B)</enum><header>Confidentiality</header><text>The
Council shall maintain the confidentiality of information received under this
paragraph in all such reports, documents, records, and information, in a manner
consistent with the level of confidentiality established by the Commission
pursuant to paragraph (8). The Council shall be exempt from section 552 of
title 5, United States Code, with respect to any information in any report,
document, record, or information made available, to the Council under this
subsection.”.</text>
</subparagraph></paragraph><paragraph id="ID8c07bf96e8304408a0b7b779a5a7e37e"><enum>(8)</enum><header>Commission
confidentiality of reports</header><text>Notwithstanding any other provision of
law, the Commission may not be compelled to disclose any report or information
contained therein required to be filed with the Commission under this
subsection, except that nothing in this subsection authorizes the
Commission—</text>
<subparagraph id="id87A4760DAD384456B4EAC21F4CB3D4C8"><enum>(A)</enum><text>to withhold
information from Congress, upon an agreement of confidentiality; or</text>
</subparagraph><subparagraph id="idB91FC1B6DF7644168DDB6EE941EDDCF5"><enum>(B)</enum><text>prevent the
Commission from complying with—</text>
<clause id="id4A15B14837514443920E2ED5A2FBB471"><enum>(i)</enum><text>a
request for information from any other Federal department or agency or any
self-regulatory organization requesting the report or information for purposes
within the scope of its jurisdiction; or</text>
</clause><clause id="id62B2254929C941E4A7C611540CC87CA2"><enum>(ii)</enum><text>an
order of a court of the United States in an action brought by the United States
or the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="idBB4F5609AD7A4CC9A1D375D8DAACBE7B"><enum>(9)</enum><header>Other
recipients confidentiality</header><text>Any department, agency, or
self-regulatory organization that receives reports or information from the
Commission under this subsection shall maintain the confidentiality of such
reports, documents, records, and information in a manner consistent with the
level of confidentiality established for the Commission under paragraph
(8).</text>
</paragraph><paragraph commented="no" id="id7EE2052A62404728A20C65266DF54C1A"><enum>(10)</enum><header>Public
information exception</header>
<subparagraph commented="no" id="idFFD9C756DD394ABEB4167610A974B0FA"><enum>(A)</enum><header>In
general</header><text>The Commission, the Council, and any other department,
agency, or self-regulatory organization that receives information, reports,
documents, records, or information from the Commission under this subsection,
shall be exempt from the provisions of section 552 of title 5, United States
Code, with respect to any such report, document, record, or information. Any
proprietary information of an investment adviser ascertained by the Commission
from any report required to be filed with the Commission pursuant to this
subsection shall be subject to the same limitations on public disclosure as any
facts ascertained during an examination, as provided by section 210(b) of this
title.</text>
</subparagraph><subparagraph commented="no" id="idCBEDD1ADC8404ADBB0F2D56C84F18225"><enum>(B)</enum><header>Proprietary
information</header><text>For purposes of this paragraph, proprietary
information includes—</text>
<clause commented="no" id="idBB9FB56D7B684A0DA7AD029863026CAD"><enum>(i)</enum><text>sensitive,
non-public information regarding the investment or trading strategies of the
investment adviser;</text>
</clause><clause commented="no" id="idACC7F3B0F17D4FE7A5F4F32B8937089B"><enum>(ii)</enum><text>analytical or
research methodologies;</text>
</clause><clause commented="no" id="id373FFFB904584686921A17661D365247"><enum>(iii)</enum><text>trading
data;</text>
</clause><clause commented="no" id="id4EDEB905E877436C8B3521AB096647A1"><enum>(iv)</enum><text>computer
hardware or software containing intellectual property; and</text>
</clause><clause commented="no" id="id4A3F6545F8334EE291D9D0F37BBB67C4"><enum>(v)</enum><text>any additional
information that the Commission determines to be proprietary.</text>
</clause></subparagraph></paragraph><paragraph id="idBF3A8B57D7334CA49F0E5C23DC1E90EC"><enum>(11)</enum><header>Annual report
to Congress</header><text>The Commission shall report annually to Congress on
how the Commission has used the data collected pursuant to this subsection to
monitor the markets for the protection of investors and the integrity of the
markets.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDde02c7b5a96445c4873c7ed4a4f620b6"><enum>405.</enum><header>Disclosure
provision eliminated</header><text display-inline="no-display-inline">Section
210(c) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–10(c)) is amended
by inserting before the period at the end the following: <quote>or for purposes
of assessment of potential systemic risk</quote>.</text>
</section><section id="ID69b2cdd6686849e3b81a7617406eda92"><enum>406.</enum><header>Clarification
of rulemaking authority</header><text display-inline="no-display-inline">Section 211 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–11) is amended—</text>
<paragraph id="IDccec6a3a676c419c9b64bd1c46cc8849"><enum>(1)</enum><text>in
subsection (a), by inserting before the period at the end of the first sentence
the following: <quote>, including rules and regulations defining technical,
trade, and other terms used in this title, except that the Commission may not
define the term <term>client</term> for purposes of paragraphs (1) and (2) of
section 206 to include an investor in a private fund managed by an investment
adviser, if such private fund has entered into an advisory contract with such
adviser</quote>; and</text>
</paragraph><paragraph id="IDd4020a6b8a2348749ff7cb657a461755"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF13589DB14C44E55BA31225030330660" style="OLC">
<subsection id="IDdc911da3171445598460cd4c1e1834dd"><enum>(e)</enum><header>Disclosure
rules on private funds</header><text>The Commission and the Commodity Futures
Trading Commission shall, after consultation with the Council but not later
than 12 months after the date of enactment of the Private Fund Investment
Advisers Registration Act of 2010, jointly promulgate rules to establish the
form and content of the reports required to be filed with the Commission under
subsection 204(b) and with the Commodity Futures Trading Commission by
investment advisers that are registered both under this title and the Commodity
Exchange Act (7 U.S.C. 1a et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="idD144121A4EBB417AA83C4B7DBF36E5C3"><enum>407.</enum><header>Exemption of
venture capital fund advisers</header><text display-inline="no-display-inline">Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–3) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id32CC702C05B649859F266AA05493F5DC" style="OLC">
<subsection commented="no" id="id1C926B3CEB5742CC834733A1A3AA39A6"><enum>(l)</enum><header>Exemption of
venture capital fund advisers</header><text>No investment adviser shall be
subject to the registration requirements of this title with respect to the
provision of investment advice relating to a venture capital fund. Not later
than 6 months after the date of enactment of this subsection, the Commission
shall issue final rules to define the term <term>venture capital fund</term>
for purposes of this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="idB033392FD7B64C2CAC51E4D8E399BEF9"><enum>408.</enum><header>Exemption of
and record keeping by private equity fund advisers</header><text display-inline="no-display-inline">Section
203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9959DC3439F44AA7A825B4FA6DBF3C03" style="OLC">
<subsection commented="no" id="idB2C6F4152FBD4DE78ADD225F069BC390"><enum>(m)</enum><header>Exemption of
and reporting by private equity fund advisers</header>
<paragraph commented="no" id="id51D1EC9730824DF3AE63905F03109E80"><enum>(1)</enum><header>In
general</header><text>Except as provided in this subsection, no investment
adviser shall be subject to the registration or reporting requirements of this
title with respect to the provision of investment advice relating to a private
equity fund or funds.</text>
</paragraph><paragraph commented="no" id="id52B71640B1D6421BA74FFC3DB19026E0"><enum>(2)</enum><header>Maintenance of
records and access by Commission</header><text>Not later than 6 months after
the date of enactment of this subsection, the Commission shall issue final
rules—</text>
<subparagraph commented="no" id="id1977756F515341928A5F48F950823563"><enum>(A)</enum><text>to require
investment advisers described in paragraph (1) to maintain such records and
provide to the Commission such annual or other reports as the Commission taking
into account fund size, governance, investment strategy, risk, and other
factors, as the Commission determines necessary and appropriate in the public
interest and for the protection of investors; and</text>
</subparagraph><subparagraph commented="no" id="id656B7CC0CC8E4E2AA99CECCD86D9E44B"><enum>(B)</enum><text>to define the
term <term>private equity fund</term> for purposes of this
subsection.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="id57E96EF9D8904FA1B511544771C3745C"><enum>409.</enum><header>Family
offices</header>
<subsection commented="no" id="idE2478FC8A3624FFE9CFE0FE3D515F91B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 202(a)(11) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)) is amended by
striking <quote>or (G)</quote> and inserting the following: <quote>; (G) any
family office, as defined by rule, regulation, or order of the Commission, in
accordance with the purposes of this title; or (H)</quote>.</text>
</subsection><subsection id="IDa8cc63b9d5194a1c9a7e7bc6cf953dbd"><enum>(b)</enum><header>Rulemaking</header><text>The
rules, regulations, or orders issued by the Commission pursuant to section
202(a)(11)(G) of the Investment Advisers Act of 1940, as added by this section,
regarding the definition of the term <quote>family office</quote> shall provide
for an exemption that—</text>
<paragraph id="idB917B18991EB4296A0803EB48ED7DBAB"><enum>(1)</enum><text>is
consistent with the previous exemptive policy of the Commission, as reflected
in exemptive orders for family offices in effect on the date of enactment of
this Act; and</text>
</paragraph><paragraph id="id863473642238486D98C0211398919064"><enum>(2)</enum><text>recognizes the
range of organizational, management, and employment structures and arrangements
employed by family offices.</text>
</paragraph></subsection></section><section id="ID1f967db558af4aafac73cc58ab8ddb41"><enum>410.</enum><header>State and
Federal responsibilities; asset threshold for Federal registration of
investment advisers</header><text display-inline="no-display-inline">Section
203A(a)(1) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3a(a)(1)) is
amended —</text>
<paragraph id="id1E3082ED4EE64570989C985959962DC6"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph id="idB5F89770AB5E4D3C94B946E958853031"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>$25,000,000</quote> and
inserting <quote>$100,000,000</quote>; and</text>
</subparagraph><subparagraph id="id0DE725A42C314812B6CF02ACA2938BA3"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the
end;</text>
</subparagraph></paragraph><paragraph id="idAD83659AD9D741A9A04862D5183F90C5"><enum>(2)</enum><text>in
subparagraph (B), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</paragraph><paragraph id="id72E028536007492E8BB5C43CAB723DD8"><enum>(3)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id486C54AF85CE452AB686814C2BA7E8F5" style="OLC">
<subparagraph commented="no" id="id4CDC41E369F148E7ACE8E45E24A8E1C7"><enum>(C)</enum><text>is an adviser to
a company that has elected to be a business development company pursuant to
section 54 of the Investment Company Act of 1940, and has not withdrawn its
election.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id98D0B788D91C4E5EA1AA66F4CCA46690"><enum>411.</enum><header>Custody of
client assets</header><text display-inline="no-display-inline">The Investment
Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended by adding at the end
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id54B8104B1DE44E08B885C79AF117211F" style="OLC">
<section id="ID03151a696b344711a5f8f69776cd0edc"><enum>223.</enum><header>Custody of
client accounts</header><text display-inline="no-display-inline">An investment
adviser registered under this title shall take such steps to safeguard client
assets over which such adviser has custody, including, without limitation,
verification of such assets by an independent public accountant, as the
Commission may, by rule,
prescribe.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID8e214f29f1374d18937c3306c2adef2f"><enum>412.</enum><header>Adjusting the
accredited investor standard for inflation</header><text display-inline="no-display-inline">The Commission shall, by rule—</text>
<paragraph id="idB8A6AE8895314FB7B5E65CE4784A0113"><enum>(1)</enum><text display-inline="yes-display-inline">increase the financial threshold for an
accredited investor, as set forth in the rules of the Commission under the
Securities Act of 1933, by calculating an amount that is greater than the
amount in effect on the date of enactment of this Act of $200,000 income for a
natural person (or $300,000 for a couple) and $1,000,000 in assets, as the
Commission determines is appropriate and in the public interest, in light of
price inflation since those figures were determined; and</text>
</paragraph><paragraph id="id62E7157680D34BB88548E48D508ABB39"><enum>(2)</enum><text display-inline="yes-display-inline">adjust that threshold not less frequently
than once every 5 years, to reflect the percentage increase in the cost of
living.</text>
</paragraph></section><section id="IDd448405dbc454b88814b9b54f17e1771"><enum>413.</enum><header>GAO
study and report on accredited investors</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall conduct a study on the appropriate criteria for determining the financial
thresholds or other criteria needed to qualify for accredited investor status
and eligibility to invest in private funds, and shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the results
of such study not later than 1 year after the date of enactment of this
Act.</text>
</section><section id="idA7C468E2F3424901B28B18DE4BDE0893"><enum>414.</enum><header>GAO
study on self-regulatory organization for private funds</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall—</text>
<paragraph id="id9A9097EF17BE4E209002AE9D79E28CAC"><enum>(1)</enum><text display-inline="yes-display-inline">conduct a study of the feasibility of
forming a self-regulatory organization to oversee private funds; and</text>
</paragraph><paragraph id="id2C32CF01880041A495243EB74F96D4A9"><enum>(2)</enum><text display-inline="yes-display-inline">submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on the results of such
study, not later than 1 year after the date of enactment of this Act.</text>
</paragraph></section><section id="id565AF578BFC04B2589B2C744AFE950FB"><enum>415.</enum><header>Commission
study and report on short selling</header>
<subsection id="id5D0DB0E35E3B405E9BDC16703459F03B"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Division of Risk, Strategy, and
Financial Innovation of the Commission shall conduct a study, taking into
account current scholarship, on the state of short selling on national
securities exchanges and in the over-the-counter markets, with particular
attention to the impact of recent rule changes and the incidence of—</text>
<paragraph id="id984926467E1748D9B7A26EEB505CDE83"><enum>(1)</enum><text display-inline="yes-display-inline">the failure to deliver shares sold short;
or</text>
</paragraph><paragraph id="id6A4D5BBF6E60414CB711A68E5D01BAAD"><enum>(2)</enum><text display-inline="yes-display-inline">delivery of shares on the fourth day
following the short sale transaction.</text>
</paragraph></subsection><subsection id="id3126ED43699C4B01BAA80E969F39B7D8"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">The Division of Risk, Strategy, and
Financial Innovation shall submit a report, together with any recommendations
for market improvements, including consideration of real time reporting of
short sale positions, to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives on the results of the study conducted under subsection (a), not
later than 2 years after the date of enactment of this Act.</text>
</subsection></section><section id="idD721D7A7496B4DB8A9EB6145EF152496"><enum>416.</enum><header>Transition
period</header><text display-inline="no-display-inline">Except as otherwise
provided in this title, this title and the amendments made by this title shall
become effective 1 year after the date of enactment of this Act, except that
any investment adviser may, at the discretion of the investment adviser,
register with the Commission under the Investment Advisers Act of 1940 during
that 1-year period, subject to the rules of the Commission.</text>
</section><enum>V</enum><header>Insurance</header>
<subtitle id="idA4E74F5AAE6C42A0BDFFAB6E8543F485"><enum>A</enum><header>Office of
National Insurance</header>
<section id="ID2cf2dc958021489b9ae085d7a2e0d35b"><enum>501.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Office of National Insurance Act of 2010</quote>.</text>
</section><section id="IDbbad6775feb843298a125c9f1b151dea"><enum>502.</enum><header>Establishment
of Office of National Insurance</header>
<subsection id="ID4bbfb96d550b4fcdaa1f30984d93eb53"><enum>(a)</enum><header>Establishment
of office</header><text>Subchapter I of chapter 3 of subtitle I of title 31,
United States Code, is amended—</text>
<paragraph id="ID5b55e8edc78845b19cc436b94d844263"><enum>(1)</enum><text>by
redesignating section 312 as section 315;</text>
</paragraph><paragraph id="id379622552CD5453B92DD4306C2AE853D"><enum>(2)</enum><text>by
redesignating section 313 as section 312; and</text>
</paragraph><paragraph id="IDaabe98117ec146df85ee19f03b4b5c05"><enum>(3)</enum><text>by
inserting after section 312 (as so redesignated) the following new
sections:</text>
<quoted-block display-inline="no-display-inline" id="id51C74B4709BC485B93C55E66BC541670" style="OLC">
<section id="ID3b5905c46f054e778e64e2c2c814be34"><enum>313.</enum><header>Office of
National Insurance</header>
<subsection id="ID8cdf3cb5b2cb4131acc8f52976a5300c"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Department of the Treasury the Office of National
Insurance.</text>
</subsection><subsection id="IDee5d16a8a40d4a02a3135bcead3962b6"><enum>(b)</enum><header>Leadership</header><text>The
Office shall be headed by a Director, who shall be appointed by the Secretary
of the Treasury. The position of Director shall be a career reserved position
in the Senior Executive Service, as that position is defined under section 3132
of title 5, United States Code.</text>
</subsection><subsection id="IDe6fb86c29ec64d8f929740902a2a3a36"><enum>(c)</enum><header>Functions</header>
<paragraph id="IDad885673bf414148a9ee862b439cf1fc"><enum>(1)</enum><header>Authority
pursuant to direction of Secretary</header><text>The Office, pursuant to the
direction of the Secretary, shall have the authority—</text>
<subparagraph id="IDe9cc4d30a3b746469b36e8c902ae71ad"><enum>(A)</enum><text>to monitor all
aspects of the insurance industry, including identifying issues or gaps in the
regulation of insurers that could contribute to a systemic crisis in the
insurance industry or the United States financial system;</text>
</subparagraph><subparagraph id="ID7192b03abe3442b6af45fb90ef9df46b"><enum>(B)</enum><text>to recommend to
the Financial Stability Oversight Council that it designate an insurer,
including the affiliates of such insurer, as an entity subject to regulation as
a nonbank financial company supervised by the Board of Governors pursuant to
title I of the Restoring American Financial Stability Act of 2010;</text>
</subparagraph><subparagraph id="ID14ca26dadb35444e803b40642cc85ce0"><enum>(C)</enum><text>to assist the
Secretary in administering the Terrorism Insurance Program established in the
Department of the Treasury under the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note);</text>
</subparagraph><subparagraph id="ID9ea764eed7b743c89b25af0372e4fbdf"><enum>(D)</enum><text>to coordinate
Federal efforts and develop Federal policy on prudential aspects of
international insurance matters, including representing the United States, as
appropriate, in the International Association of Insurance Supervisors (or a
successor entity) and assisting the Secretary in negotiating International
Insurance Agreements on Prudential Measures;</text>
</subparagraph><subparagraph id="ID212038f0586c425c990cfb4d0c320c47"><enum>(E)</enum><text>to determine, in
accordance with subsection (f), whether State insurance measures are preempted
by International Insurance Agreements on Prudential Measures;</text>
</subparagraph><subparagraph id="ID7c8a065257204591a1a7db84648b2604"><enum>(F)</enum><text>to consult with
the States (including State insurance regulators) regarding insurance matters
of national importance and prudential insurance matters of international
importance; and</text>
</subparagraph><subparagraph id="ID77fb542d990143d0ba29625d4610dbef"><enum>(G)</enum><text>to perform such
other related duties and authorities as may be assigned to the Office by the
Secretary.</text>
</subparagraph></paragraph><paragraph id="ID508f76d571b043f088f5eb0652cd38cb"><enum>(2)</enum><header>Advisory
functions</header><text>The Office shall advise the Secretary on major domestic
and prudential international insurance policy issues.</text>
</paragraph></subsection><subsection id="ID6c307f7e4ef84731b9a813b0abd90386"><enum>(d)</enum><header>Scope</header><text>The
authority of the Office shall extend to all lines of insurance except health
insurance, as such insurance is determined by the Secretary based on section
2791 of the Public Health Service Act (42 U.S.C. 300gg–91), and crop insurance,
as established by the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.).</text>
</subsection><subsection id="IDed921a1c7a0046838229d2aca1dd57ea"><enum>(e)</enum><header>Gathering of
information</header>
<paragraph id="IDae3cc351e7b34cceb37e94dedf5e4a67"><enum>(1)</enum><header>In
general</header><text>In carrying out the functions required under subsection
(c), the Office may—</text>
<subparagraph id="id189FA225643B4457A03729B6469456FA"><enum>(A)</enum><text>receive and
collect data and information on and from the insurance industry and
insurers;</text>
</subparagraph><subparagraph id="id9E6C0787D2E843F3A108BE9E42FECF7F"><enum>(B)</enum><text>enter into
information-sharing agreements;</text>
</subparagraph><subparagraph id="id8D836C15A3714AB7BB02F2513C61CF40"><enum>(C)</enum><text>analyze and
disseminate data and information; and</text>
</subparagraph><subparagraph id="id20C99197979C48E2ADB944FE5EC1FDA6"><enum>(D)</enum><text>issue reports
regarding all lines of insurance except health insurance.</text>
</subparagraph></paragraph><paragraph id="ID33c98b1b6761404ab045858f76920687"><enum>(2)</enum><header>Collection of
information from insurers and affiliates</header>
<subparagraph id="idC55F03ED22234C5DAB44F098742575B4"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (3), the Office may
require an insurer, or any affiliate of an insurer, to submit such data or
information as the Office may reasonably require in carrying out the functions
described under subsection (c).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7B4D64BFE5FA479B856FC476E6939BC2"><enum>(B)</enum><header>Rule of
construction</header><text>Notwithstanding any other provision of this section,
for purposes of subparagraph (A), the term 'insurer' means any person that is
authorized to write insurance or reinsure risks and issue contracts or policies
in 1 or more States.</text>
</subparagraph></paragraph><paragraph id="IDdde6fa0214dd4d6280a0229ba50f9478"><enum>(3)</enum><header>Exception for
small insurers</header><text>Paragraph (2) shall not apply with respect to any
insurer or affiliate thereof that meets a minimum size threshold that the
Office may establish, whether by order or rule.</text>
</paragraph><paragraph id="ID1ef871332036467f906ee7d24a81db63"><enum>(4)</enum><header>Advance
coordination</header><text>Before collecting any data or information under
paragraph (2) from an insurer, or any affiliate of an insurer, the Office shall
coordinate with each relevant State insurance regulator (or other relevant
Federal or State regulatory agency, if any, in the case of an affiliate of an
insurer) to determine if the information to be collected is available from, or
may be obtained in a timely manner by, such State insurance regulator,
individually or collectively, another regulatory agency, or publicly available
sources. Notwithstanding any other provision of law, each such relevant State
insurance regulator or other Federal or State regulatory agency is authorized
to provide to the Office such data or information.</text>
</paragraph><paragraph id="ID953b8c201e194e078d7264cebd095a0f"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="ID75fed9adae1f4a5292ba6d0f761e0d08"><enum>(A)</enum><header>Retention of
privilege</header><text>The submission of any nonpublicly available data and
information to the Office under this subsection shall not constitute a waiver
of, or otherwise affect, any privilege arising under Federal or State law
(including the rules of any Federal or State court) to which the data or
information is otherwise subject.</text>
</subparagraph><subparagraph id="ID31d2b2e0a8db4f23b490a21c338f421a"><enum>(B)</enum><header>Continued
application of prior confidentiality agreements</header><text>Any requirement
under Federal or State law to the extent otherwise applicable, or any
requirement pursuant to a written agreement in effect between the original
source of any nonpublicly available data or information and the source of such
data or information to the Office, regarding the privacy or confidentiality of
any data or information in the possession of the source to the Office, shall
continue to apply to such data or information after the data or information has
been provided pursuant to this subsection to the Office.</text>
</subparagraph><subparagraph id="id456244ED23ED4AB1942A6D86FF07DFFE"><enum>(C)</enum><header>Information
sharing agreement</header><text>Any data or information obtained by the Office
may be made available to State insurance regulators, individually or
collectively, through an information sharing agreement that—</text>
<clause id="id9C7F53585A474796B4EF8EF66EFDD53F"><enum>(i)</enum><text>shall
comply with applicable Federal law; and</text>
</clause><clause id="id11E999E17D424C05B6B53975A3EAF522"><enum>(ii)</enum><text>shall not
constitute a waiver of, or otherwise affect, any privilege under Federal or
State law (including the rules of any Federal or State Court) to which the data
or information is otherwise subject.</text>
</clause></subparagraph><subparagraph id="IDce6086df3d664bf6a81440c9ecef4cc5"><enum>(D)</enum><header>Agency
disclosure requirements</header><text>Section 552 of title 5, United States
Code, shall apply to any data or information submitted to the Office by an
insurer or an affiliate of an insurer.</text>
</subparagraph></paragraph><paragraph id="IDa12c2cba5fb14f00b0a9b38cb8d75c04"><enum>(6)</enum><header>Subpoenas and
enforcement</header><text>The Director shall have the power to require by
subpoena the production of the data or information requested under paragraph
(2), but only upon a written finding by the Director that such data or
information is required to carry out the functions described under subsection
(c) and that the Office has coordinated with such regulator or agency as
required under paragraph (4). Subpoenas shall bear the signature of the
Director and shall be served by any person or class of persons designated by
the Director for that purpose. In the case of contumacy or failure to obey a
subpoena, the subpoena shall be enforceable by order of any appropriate
district court of the United States. Any failure to obey the order of the court
may be punished by the court as a contempt of court.</text>
</paragraph></subsection><subsection id="ID9c0561b7fa9146fcb71bbec234807986"><enum>(f)</enum><header>Preemption of
State insurance measures</header>
<paragraph id="ID27b0f84dfb1944be98d1e485eef4bbc7"><enum>(1)</enum><header>Standard</header><text>A
State insurance measure shall be preempted if, and only to the extent that the
Director determines, in accordance with this subsection, that the
measure—</text>
<subparagraph id="ID53376ce1daea4f5988753c48366cc2f2"><enum>(A)</enum><text>results in less
favorable treatment of a non-United States insurer domiciled in a foreign
jurisdiction that is subject to an international insurance agreement on
prudential measures than a United States insurer domiciled, licensed, or
otherwise admitted in that State; and</text>
</subparagraph><subparagraph id="IDc2eacba6f8c24d9a90418b6c88c10b85"><enum>(B)</enum><text>is inconsistent
with an International Insurance Agreement on Prudential Measures.</text>
</subparagraph></paragraph><paragraph id="IDbf8580f37fd247599903f01abd7900d6"><enum>(2)</enum><header>Determination</header>
<subparagraph id="ID50b8869f2a2c4c34937833cf19349cf3"><enum>(A)</enum><header>Notice of
potential inconsistency</header><text>Before making any determination under
paragraph (1), the Director shall—</text>
<clause id="IDe6f90f2fc8924461be08dd38390c9a6f"><enum>(i)</enum><text>notify and
consult with the appropriate State regarding any potential inconsistency or
preemption;</text>
</clause><clause id="ID6a2238d7c4ad47c0a7daf6c20fb39314"><enum>(ii)</enum><text>cause to be
published in the Federal Register notice of the issue regarding the potential
inconsistency or preemption, including a description of each State insurance
measure at issue and any applicable International Insurance Agreement on
Prudential Measures;</text>
</clause><clause id="ID4497cbd133964f2f8243ac9edb2bc3b7"><enum>(iii)</enum><text>provide
interested parties a reasonable opportunity to submit written comments to the
Office; and</text>
</clause><clause id="ID3860d0df438c438295049f4e9cccdaa2"><enum>(iv)</enum><text>consider any
comments received.</text>
</clause></subparagraph><subparagraph id="id1E8BC2AE2D4B41BCAB6DF954250E231B"><enum>(B)</enum><header>Scope of
review</header><text>For purposes of this subsection, the determination of the
Director regarding State insurance measures shall be limited to the subject
matter contained within the international insurance agreement on prudential
measure involved.</text>
</subparagraph><subparagraph id="IDf1df1ccdfb2140cc9d0bec0c7373bba7"><enum>(C)</enum><header>Notice of
determination of inconsistency</header><text>Upon making any determination
under paragraph (1), the Director shall—</text>
<clause id="ID3cd640b26b17443cb589c274292b1d1f"><enum>(i)</enum><text>notify the
appropriate State of the determination and the extent of the
inconsistency;</text>
</clause><clause id="ID046950f9b1f24f888bd93ae632647a29"><enum>(ii)</enum><text>establish a
reasonable period of time, which shall not be less than 30 days, before the
determination shall become effective; and</text>
</clause><clause id="idEF3B1B5A1E1A45EDB179BC3D848A6293"><enum>(iii)</enum><text>notify the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives of the
inconsistency.</text>
</clause></subparagraph></paragraph><paragraph id="IDa50df9860ed74ca4bff6d163cd58e46f"><enum>(3)</enum><header>Notice of
effectiveness</header><text>Upon the conclusion of the period referred to in
paragraph (2)(C)(ii), if the basis for such determination still exists, the
determination shall become effective and the Director shall—</text>
<subparagraph id="ID434e7cd563154c33a9c9f31498f5d493"><enum>(A)</enum><text>cause to be
published a notice in the Federal Register that the preemption has become
effective, as well as the effective date; and</text>
</subparagraph><subparagraph id="IDc050806617c6490e9ab9062df7b6969e"><enum>(B)</enum><text>notify the
appropriate State.</text>
</subparagraph></paragraph><paragraph id="IDe01492393f5a4d409a256641b3c79460"><enum>(4)</enum><header>Limitation</header><text>No
State may enforce a State insurance measure to the extent that such measure has
been preempted under this subsection.</text>
</paragraph></subsection><subsection id="id17264FBD9E344CC691B89B226172163F"><enum>(g)</enum><header>Applicability
of Administrative Procedures Act</header><text>Determinations of inconsistency
made pursuant to subsection (f)(2) shall be subject to the applicable
provisions of subchapter II of chapter 5 of title 5, United States Code
(relating to administrative procedure), and chapter 7 of such title (relating
to judicial review).</text>
</subsection><subsection id="IDbf726cf7b832467c8896cde64563d3e8"><enum>(h)</enum><header>Regulations,
policies, and procedures</header><text>The Secretary may issue orders,
regulations, policies, and procedures to implement this section.</text>
</subsection><subsection id="ID7ebf001cab584e99a8628b407b8355d3"><enum>(i)</enum><header>Consultation</header><text>The
Director shall consult with State insurance regulators, individually or
collectively, to the extent the Director determines appropriate, in carrying
out the functions of the Office.</text>
</subsection><subsection id="ID7c49739a007342829e89e87f1815ce45"><enum>(j)</enum><header>Savings
provisions</header><text>Nothing in this section shall—</text>
<paragraph id="IDb405b9bf7f4f45039936fe291450d200"><enum>(1)</enum><text>preempt—</text>
<subparagraph id="id2D120036D0E6479998DE82EED0F305A2"><enum>(A)</enum><text>any State
insurance measure that governs any insurer’s rates, premiums, underwriting, or
sales practices;</text>
</subparagraph><subparagraph id="idF70ED469F37E48F6B312F169DF1ECBC3"><enum>(B)</enum><text>any State
coverage requirements for insurance;</text>
</subparagraph><subparagraph id="id56C520F3901A476E89D95D1512B7795B"><enum>(C)</enum><text>the application
of the antitrust laws of any State to the business of insurance; or</text>
</subparagraph><subparagraph id="id6FADE8B46F014C309D8A8DABE8376E7A"><enum>(D)</enum><text>any State
insurance measure governing the capital or solvency of an insurer, except to
the extent that such State insurance measure results in less favorable
treatment of a non-United State insurer than a United States insurer;</text>
</subparagraph></paragraph><paragraph id="IDb8113132bf334a88978eb9e6c6615aca"><enum>(2)</enum><text>be
construed to alter, amend, or limit any provision of the Consumer Financial
Protection Agency Act of 2010; or</text>
</paragraph><paragraph id="IDd571cb5c3d974e198df0f0f7e9b497a3"><enum>(3)</enum><text>affect the
preemption of any State insurance measure otherwise inconsistent with and
preempted by Federal law.</text>
</paragraph></subsection><subsection id="id92D70741C11648C497DF14671C06A972"><enum>(k)</enum><header>Retention of
existing State regulatory authority</header><text>Nothing in this section or
section 314 shall be construed to establish or provide the Office or the
Department of the Treasury with general supervisory or regulatory authority
over the business of insurance.</text>
</subsection><subsection id="IDca99c314e8644aca9b5b03290cf2f72e"><enum>(l)</enum><header>Annual report
to congress</header><text>Beginning September 30, 2011, the Director shall
submit a report on or before September 30 of each calendar year to the
President and to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
on the insurance industry, any actions taken by the Office pursuant to
subsection (f) (regarding preemption of inconsistent State insurance measures),
and any other information as deemed relevant by the Director or as requested by
such Committees.</text>
</subsection><subsection id="idE034D88579274D80B42907EB122FED8A"><enum>(m)</enum><header>Study and
report on regulation of insurance</header>
<paragraph id="id6C49DD34260C4533951F1C13A5FAF2B6"><enum>(1)</enum><header>In
general</header><text>Not later than 18 months after the date of enactment of
this section, the Director shall conduct a study and submit a report to
Congress on how to modernize and improve the system of insurance regulation in
the United States.</text>
</paragraph><paragraph id="id17965A08C5F64C87BEDAEB0A5DA810F0"><enum>(2)</enum><header>Considerations</header><text>The
study and report required under paragraph (1) shall be based on and guided by
the following considerations:</text>
<subparagraph id="id048096B8279D40E38917C72F4257CBC5"><enum>(A)</enum><text>Systemic risk
regulation with respect to insurance.</text>
</subparagraph><subparagraph id="idE893454AE2E7452E869553DA2AEAF678"><enum>(B)</enum><text>Capital standards
and the relationship between capital allocation and liabilities, including
standards relating to liquidity and duration risk.</text>
</subparagraph><subparagraph id="id2D1FB45251364671B28A3B064456A1FA"><enum>(C)</enum><text>Consumer
protection for insurance products and practices, including gaps in state
regulation.</text>
</subparagraph><subparagraph id="idA30C4B10EC6147658777E6FF17646AC1"><enum>(D)</enum><text>The degree of
national uniformity of state insurance regulation.</text>
</subparagraph><subparagraph id="idA49BEB27A66A44B89BC6307C79C091A5"><enum>(E)</enum><text>The regulation of
insurance companies and affiliates on a consolidated basis.</text>
</subparagraph><subparagraph id="id3AB3E5BAF3424071885C5A3E3E7FC68B"><enum>(F)</enum><text>International
coordination of insurance regulation.</text>
</subparagraph></paragraph><paragraph id="id08186E6E8DBA443992E2B723C061AAEC"><enum>(3)</enum><header>Additional
factors</header><text>The study and report required under paragraph (1) shall
also examine the following factors:</text>
<subparagraph id="ID95c37eab94984458ae944dfff6a29702"><enum>(A)</enum><text>The costs and
benefits of potential Federal regulation of insurance across various lines of
insurance (except health insurance).</text>
</subparagraph><subparagraph id="ID7ffe492f3b2444cea2dfe1fcb7109ef3"><enum>(B)</enum><text>The feasibility
of regulating only certain lines of insurance at the Federal level, while
leaving other lines of insurance to be regulated at the State level.</text>
</subparagraph><subparagraph id="ID00d8618f0d4e4084abedc0ebadc5d4ca"><enum>(C)</enum><text>The ability of
any potential Federal regulation or Federal regulators to eliminate or minimize
regulatory arbitrage.</text>
</subparagraph><subparagraph id="IDe4e08a3c6e494aaca423470dae380902"><enum>(D)</enum><text>The impact that
developments in the regulation of insurance in foreign jurisdictions might have
on the potential Federal regulation of insurance.</text>
</subparagraph><subparagraph id="IDaa26549387574d7fae580b47c2300362"><enum>(E)</enum><text>The ability of
any potential Federal regulation or Federal regulator to provide robust
consumer protection for policyholders.</text>
</subparagraph><subparagraph id="IDbd4bdbf2664840e5a1f2a7d20d5f2faa"><enum>(F)</enum><text>The potential
consequences of subjecting insurance companies to a Federal resolution
authority, including the effects of any Federal resolution authority—</text>
<clause id="ID12512261e6b14c7d88030e3dc25aa689"><enum>(i)</enum><text>on
the operation of State insurance guaranty fund systems, including the loss of
guaranty fund coverage if an insurance company is subject to a Federal
resolution authority;</text>
</clause><clause id="ID7945bc049820465f8838de751aace6f7"><enum>(ii)</enum><text>on
policyholder protection, including the loss of the priority status of
policyholder claims over other unsecured general creditor claims;</text>
</clause><clause id="ID505a91d9a8d7405784ee909e13c94881"><enum>(iii)</enum><text>in
the case of life insurance companies, the loss of the special status of
separate account assets and separate account liabilities; and</text>
</clause><clause id="IDd3ec45dbdacd4f73b22d316a9c11f9ba"><enum>(iv)</enum><text>on
the international competitiveness of insurance companies.</text>
</clause></subparagraph><subparagraph id="IDff27da51f76a4a57878e04b034359734"><enum>(G)</enum><text>Such other
factors as the Director determines necessary or appropriate, consistent with
the principles set forth in paragraph (2).</text>
</subparagraph></paragraph><paragraph id="id5D1AC3EC9609414A910B9E569A37625F"><enum>(4)</enum><header>Required
recommendations</header><text>The study and report required under paragraph (1)
shall also contain any legislative, administrative, or regulatory
recommendations, as the Director determines appropriate, to carry out or
effectuate the findings set forth in such report.</text>
</paragraph><paragraph id="ID2605465666ee4e269ad235f3a8c01c40"><enum>(5)</enum><header>Consultation</header><text>With
respect to the study and report required under paragraph (1), the Director
shall consult with the National Association of Insurance Commissioners,
consumer organizations, representatives of the insurance industry and
policyholders, and other organizations and experts, as appropriate.</text>
</paragraph></subsection><subsection id="IDf55137d420e64db3bbbbf4f58215ee25"><enum>(n)</enum><header>Use of existing
resources</header><text>To carry out this section, the Office may employ
personnel, facilities, and any other resource of the Department of the Treasury
available to the Secretary.</text>
</subsection><subsection id="IDc4c7682b776249658ac26655fce65613"><enum>(o)</enum><header>Definitions</header><text>In
this section and section 314, the following definitions shall apply:</text>
<paragraph id="ID6fcf05cc970146b783773cbb3c3c21d3"><enum>(1)</enum><header>Affiliate</header><text>The
term <term>affiliate</term> means, with respect to an insurer, any person who
controls, is controlled by, or is under common control with the insurer.</text>
</paragraph><paragraph id="IDd3e0c6ee1b6b4369a0f95d1319e6a7da"><enum>(2)</enum><header>Insurer</header><text>The
term <term>insurer</term> means any person engaged in the business of
insurance, including reinsurance.</text>
</paragraph><paragraph id="ID6e2eee753ae744379cad05f48398523d"><enum>(3)</enum><header>International
insurance agreement on prudential measures</header><text>The term
<term>International Insurance Agreement on Prudential Measures</term> means a
written bilateral or multilateral agreement entered into between the United
States and a foreign government, authority, or regulatory entity regarding
prudential measures applicable to the business of insurance or
reinsurance.</text>
</paragraph><paragraph id="ID53a7a5493db2478d9a7838de4eeec346"><enum>(4)</enum><header>Non-United
States insurer</header><text>The term <term>non-United States insurer</term>
means an insurer that is organized under the laws of a jurisdiction other than
a State, but does not include any United States branch of such an
insurer.</text>
</paragraph><paragraph id="IDba6b6522485a412c9eb43bc60367fe72"><enum>(5)</enum><header>Office</header><text>The
term <term>Office</term> means the Office of National Insurance established by
this section.</text>
</paragraph><paragraph id="ID10875942028649e5b81006d7cd11d13d"><enum>(6)</enum><header>State insurance
measure</header><text>The term <term>State insurance measure</term> means any
State law, regulation, administrative ruling, bulletin, guideline, or practice
relating to or affecting prudential measures applicable to insurance or
reinsurance.</text>
</paragraph><paragraph id="IDb9deef40bbff455ca24c35cbc59cdb23"><enum>(7)</enum><header>State insurance
regulator</header><text>The term <term>State insurance regulator</term> means
any State regulatory authority responsible for the supervision of
insurers.</text>
</paragraph><paragraph id="IDacc0c650e07d4d5d98664f1f385a04c1"><enum>(8)</enum><header>United States
insurer</header><text>The term <term>United States insurer</term> means—</text>
<subparagraph id="IDfcd8cb6f33af4b70aa01658bf1f8bab9"><enum>(A)</enum><text>an insurer that
is organized under the laws of a State; or</text>
</subparagraph><subparagraph id="ID02e4cb1c42fa453aa972740606df7634"><enum>(B)</enum><text>a United States
branch of a non-United States insurer.</text>
</subparagraph></paragraph></subsection><subsection id="IDe5e5206bd42c48fbbd479e6be40794d5"><enum>(p)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated for the
Office for each fiscal year such sums as may be necessary.</text>
</subsection></section><section id="ID8afd014e5a7b498cbe6a0b0b5061e36d"><enum>314.</enum><header>International
insurance agreements on prudential measures</header>
<subsection id="idC03F38A22EEB4E1198F56610AB9ACE11"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury is authorized to negotiate and enter into International Insurance
Agreements on Prudential Measures on behalf of the United States.</text>
</subsection><subsection id="ID69d8c4ca1ebc4b118d90fb0c10d1a1ca"><enum>(b)</enum><header>Savings
provision</header><text>Nothing in this section or section 313 shall be
construed to affect the development and coordination of United States
international trade policy or the administration of the United States trade
agreements program. It is to be understood that the negotiation of
International Insurance Agreements on Prudential Measures under such sections
is consistent with the requirement of this subsection.</text>
</subsection><subsection id="IDc78e2b68851c45cf92c088eae315c0d0"><enum>(c)</enum><header>Consultation</header><text>The
Secretary shall consult with the United States Trade Representative on the
negotiation of International Insurance Agreements on Prudential Measures,
including prior to initiating and concluding any such
agreements.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDc913e54d22f349d48bc8e9a5c7173e68"><enum>(b)</enum><header>Duties of
Secretary</header><text>Section 321(a) of title 31, United States Code, is
amended—</text>
<paragraph id="IDcf5b750aa08c4be7902748e5091c3824"><enum>(1)</enum><text>in
paragraph (7), by striking <quote>; and</quote> and inserting a
semicolon;</text>
</paragraph><paragraph id="ID2d7f2648dcb144a1b7f3e6c11c9403ab"><enum>(2)</enum><text>in
paragraph (8)(C), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</paragraph><paragraph id="ID2cba2572a5c24999b07bdc451140a28c"><enum>(3)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id1098B2EBBF53490BB33A309EAADEE8D2" style="OLC">
<paragraph id="ID60f2185d4a16451eb7faf7fc80e81c61"><enum>(9)</enum><text>advise the
President on major domestic and international prudential policy issues in
connection with all lines of insurance except health
insurance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2d407e886fe14eccb532701bfc6aa7cd"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subchapter I of chapter 3 of
title 31, United States Code, is amended by striking the item relating to
section 312 and inserting the following new items:</text>
<quoted-block display-inline="no-display-inline" id="id7561BC5C23B1430BAD4F09BD3B4D3E1A" style="OLC">
<toc>
<toc-entry idref="ID3b5905c46f054e778e64e2c2c814be34" level="section">Sec. 312. Terrorism and financial intelligence.</toc-entry>
<toc-entry bold="off" level="section">Sec. 313. Office of National
Insurance.</toc-entry>
<toc-entry idref="ID8afd014e5a7b498cbe6a0b0b5061e36d" level="section">Sec. 314. International insurance agreements on prudential
measures.</toc-entry>
<toc-entry bold="off" level="section">Sec. 315. Continuing in
office.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="idCB65149C7A264122B7C09EDEFF5932DA"><enum>B</enum><header>State-based
Insurance Reform</header>
<section id="idA326A944851344EB94114CEEAEFB413B"><enum>511.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Nonadmitted and Reinsurance Reform Act of
2010</quote>.</text>
</section><section id="H3CB7FF3F6B7B4C71912116ECFD3562F"><enum>512.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
specifically provided in this subtitle, this subtitle shall take effect upon
the expiration of the 12-month period beginning on the date of the enactment of
this subtitle.</text>
</section><part id="HE2ECDF15D27045B5BD28B4F3AEA08F03"><enum>I</enum><header>Nonadmitted
insurance</header>
<section id="H544FACBFA0454217006068F1A29578EB"><enum>521.</enum><header>Reporting,
payment, and allocation of premium taxes</header>
<subsection id="HF75F7056D921411988D507BB90E99C93"><enum>(a)</enum><header>Home State’s
exclusive authority</header><text>No State other than the home State of an
insured may require any premium tax payment for nonadmitted insurance.</text>
</subsection><subsection id="HC33631E6C7BA4BAC98A17DD6D172F75D"><enum>(b)</enum><header>Allocation of
nonadmitted premium taxes</header>
<paragraph id="H7F152306AFCE487C84286EF853F4114"><enum>(1)</enum><header>In
general</header><text>The States may enter into a compact or otherwise
establish procedures to allocate among the States the premium taxes paid to an
insured’s home State described in subsection (a).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H4AFA5BF27C624470A7B958C6CA494589"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Except as expressly
otherwise provided in such compact or other procedures, any such compact or
other procedures—</text>
<subparagraph id="H399BEF58712B4BBE9FF600F59398606D"><enum>(A)</enum><text display-inline="yes-display-inline">if adopted on or before the expiration of
the 330-day period that begins on the date of the enactment of this subtitle,
shall apply to any premium taxes that, on or after such date of enactment, are
required to be paid to any State that is subject to such compact or procedures;
and</text>
</subparagraph><subparagraph id="H1DB6C1365E57410B8BDBB41C424F7DA1"><enum>(B)</enum><text display-inline="yes-display-inline">if adopted after the expiration of such
330-day period, shall apply to any premium taxes that, on or after January 1 of
the first calendar year that begins after the expiration of such 330-day
period, are required to be paid to any State that is subject to such compact or
procedures.</text>
</subparagraph></paragraph><paragraph id="HD958124944244E18AB00FBB8D3BAE2B4"><enum>(3)</enum><header>Report</header><text display-inline="yes-display-inline">Upon the expiration of the 330-day period
referred to in paragraph (2), the NAIC may submit a report to the Committee on
Financial Services and Committee on the Judiciary of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate identifying and describing any compact or other procedures for
allocation among the States of premium taxes that have been adopted during such
period by any States.</text>
</paragraph><paragraph id="HA66CAD1655DD469D9F0046624D639113"><enum>(4)</enum><header>Nationwide
system</header><text>The Congress intends that each State adopt nationwide
uniform requirements, forms, and procedures, such as an interstate compact,
that provides for the reporting, payment, collection, and allocation of premium
taxes for nonadmitted insurance consistent with this section.</text>
</paragraph></subsection><subsection id="H048DC5D23BC14DF4A1457E748D470003"><enum>(c)</enum><header>Allocation based
on tax allocation report</header><text>To facilitate the payment of premium
taxes among the States, an insured’s home State may require surplus lines
brokers and insureds who have independently procured insurance to annually file
tax allocation reports with the insured’s home State detailing the portion of
the nonadmitted insurance policy premium or premiums attributable to
properties, risks, or exposures located in each State. The filing of a
nonadmitted insurance tax allocation report and the payment of tax may be made
by a person authorized by the insured to act as its agent.</text>
</subsection></section><section id="HC357845F013642FCA84496E1F39CF027"><enum>522.</enum><header>Regulation of
nonadmitted insurance by insured’s home State</header>
<subsection id="H065C8FEEB1FE46C4AC15FD20F43BD082"><enum>(a)</enum><header>Home State
authority</header><text display-inline="yes-display-inline">Except as otherwise
provided in this section, the placement of nonadmitted insurance shall be
subject to the statutory and regulatory requirements solely of the insured’s
home State.</text>
</subsection><subsection id="HCA40CC47AC3F41F38CE1F4173C9949DE"><enum>(b)</enum><header>Broker
licensing</header><text>No State other than an insured’s home State may require
a surplus lines broker to be licensed in order to sell, solicit, or negotiate
nonadmitted insurance with respect to such insured.</text>
</subsection><subsection id="H7BB8ED67ADBE49FAAB6B4798CC2FA31"><enum>(c)</enum><header>Enforcement
provision</header><text>With respect to section 521 and subsections (a) and (b)
of this section, any law, regulation, provision, or action of any State that
applies or purports to apply to nonadmitted insurance sold to, solicited by, or
negotiated with an insured whose home State is another State shall be preempted
with respect to such application.</text>
</subsection><subsection id="H30432579BDC0408FA905003706243700"><enum>(d)</enum><header>Workers’
compensation exception</header><text display-inline="yes-display-inline">This
section may not be construed to preempt any State law, rule, or regulation that
restricts the placement of workers’ compensation insurance or excess insurance
for self-funded workers’ compensation plans with a nonadmitted insurer.</text>
</subsection></section><section id="HCC4B0AD7E1994B6BB9ACAAFEEC6581"><enum>523.</enum><header>Participation in
national producer database</header><text display-inline="no-display-inline">After the expiration of the 2-year period
beginning on the date of the enactment of this subtitle, a State may not
collect any fees relating to licensing of an individual or entity as a surplus
lines broker in the State unless the State has in effect at such time laws or
regulations that provide for participation by the State in the national
insurance producer database of the NAIC, or any other equivalent uniform
national database, for the licensure of surplus lines brokers and the renewal
of such licenses.</text>
</section><section id="H237CFA1325BA4BA1A7A93F75A4144F7D"><enum>524.</enum><header>Uniform
standards for surplus lines eligibility</header><text display-inline="no-display-inline">A State may not—</text>
<paragraph id="HCB52519D194948AB8186C66FC6D91F28"><enum>(1)</enum><text display-inline="yes-display-inline">impose eligibility requirements on, or
otherwise establish eligibility criteria for, nonadmitted insurers domiciled in
a United States jurisdiction, except in conformance with such requirements and
criteria in sections 5A(2) and 5C(2)(a) of the Non-Admitted Insurance Model
Act, unless the State has adopted nationwide uniform requirements, forms, and
procedures developed in accordance with section 521(b) of this subtitle that
include alternative nationwide uniform eligibility requirements; or</text>
</paragraph><paragraph id="HB37085102BF5447E87E1EA92191EF814"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit a surplus lines broker from
placing nonadmitted insurance with, or procuring nonadmitted insurance from, a
nonadmitted insurer domiciled outside the United States that is listed on the
Quarterly Listing of Alien Insurers maintained by the International Insurers
Department of the NAIC.</text>
</paragraph></section><section id="HA6A99371C424427C945E3F8B35FDF0DC"><enum>525.</enum><header>Streamlined
application for commercial purchasers</header><text display-inline="no-display-inline">A surplus lines broker seeking to procure or
place nonadmitted insurance in a State for an exempt commercial purchaser shall
not be required to satisfy any State requirement to make a due diligence search
to determine whether the full amount or type of insurance sought by such exempt
commercial purchaser can be obtained from admitted insurers if—</text>
<paragraph id="HC3CF49EAC35E4651A3D5F6F286C0351"><enum>(1)</enum><text>the
broker procuring or placing the surplus lines insurance has disclosed to the
exempt commercial purchaser that such insurance may or may not be available
from the admitted market that may provide greater protection with more
regulatory oversight; and</text>
</paragraph><paragraph id="H0EC635461757411BA39BEA1DCFCB888D"><enum>(2)</enum><text>the
exempt commercial purchaser has subsequently requested in writing the broker to
procure or place such insurance from a nonadmitted insurer.</text>
</paragraph></section><section display-inline="no-display-inline" id="H7EE1B1BDB3FE4A50A9B152063F939C4" section-type="subsequent-section"><enum>526.</enum><header>GAO study of
nonadmitted insurance market</header>
<subsection id="HA6DC9D48B27E4512A1E4C0A9FAFA1831"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study of the nonadmitted insurance market to determine the effect of
the enactment of this part on the size and market share of the nonadmitted
insurance market for providing coverage typically provided by the admitted
insurance market.</text>
</subsection><subsection id="HFC031601AB424C8BA3BEF1B780B01298"><enum>(b)</enum><header>Contents</header><text>The
study shall determine and analyze—</text>
<paragraph id="HF1ECF38BF3FD4809976CEDC63200CC5D"><enum>(1)</enum><text>the
change in the size and market share of the nonadmitted insurance market and in
the number of insurance companies and insurance holding companies providing
such business in the 18-month period that begins upon the effective date of
this subtitle;</text>
</paragraph><paragraph id="H5AD3029C184E42BBB12000E1C21772A"><enum>(2)</enum><text>the
extent to which insurance coverage typically provided by the admitted insurance
market has shifted to the nonadmitted insurance market;</text>
</paragraph><paragraph id="H3A50D4D5AB444B74ADC305A881D98D93"><enum>(3)</enum><text>the
consequences of any change in the size and market share of the nonadmitted
insurance market, including differences in the price and availability of
coverage available in both the admitted and nonadmitted insurance
markets;</text>
</paragraph><paragraph id="H1A21B0EEF6414CD3ABCE32DA25D7349F"><enum>(4)</enum><text>the
extent to which insurance companies and insurance holding companies that
provide both admitted and nonadmitted insurance have experienced shifts in the
volume of business between admitted and nonadmitted insurance; and</text>
</paragraph><paragraph id="H8EFE4BF414C242C39B6F715579C77627"><enum>(5)</enum><text>the
extent to which there has been a change in the number of individuals who have
nonadmitted insurance policies, the type of coverage provided under such
policies, and whether such coverage is available in the admitted insurance
market.</text>
</paragraph></subsection><subsection id="H628F232198394606BA296CCD00655646"><enum>(c)</enum><header>Consultation
with NAIC</header><text>In conducting the study under this section, the
Comptroller General shall consult with the NAIC.</text>
</subsection><subsection id="HF001F4FA33DA481AB6647CE540AE51AE"><enum>(d)</enum><header>Report</header><text>The
Comptroller General shall complete the study under this section and submit a
report to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives
regarding the findings of the study not later than 30 months after the
effective date of this subtitle.</text>
</subsection></section><section id="HCC42C17E3E6A4D04A000C8B8B5B878BA"><enum>527.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part, the following
definitions shall apply:</text>
<paragraph id="H80B981919F6D4D509279811D9322DB69"><enum>(1)</enum><header>Admitted
insurer</header><text>The term <term>admitted insurer</term> means, with
respect to a State, an insurer licensed to engage in the business of insurance
in such State.</text>
</paragraph><paragraph id="HCD0565D3FA0545318F3886D1A06D8DFB"><enum>(2)</enum><header>Affiliate</header><text display-inline="yes-display-inline">The term <term>affiliate</term> means, with
respect to an insured, any entity that controls, is controlled by, or is under
common control with the insured.</text>
</paragraph><paragraph id="HC1FDCA572C2043EEAE50F2AA69546CCB"><enum>(3)</enum><header>Affiliated
group</header><text>The term <term>affiliated group</term> means any group of
entities that are all affiliated.</text>
</paragraph><paragraph id="HA9908D9F01B04D04B9D444E4038BD408"><enum>(4)</enum><header>Control</header><text>An
entity has <term>control</term> over another entity if—</text>
<subparagraph id="HF1B8352A5A10429D8558B839609AF93C"><enum>(A)</enum><text>the entity
directly or indirectly or acting through 1 or more other persons owns,
controls, or has the power to vote 25 percent or more of any class of voting
securities of the other entity; or</text>
</subparagraph><subparagraph id="HEC78D376024E463CA6D8EC33D5DD7947"><enum>(B)</enum><text>the entity
controls in any manner the election of a majority of the directors or trustees
of the other entity.</text>
</subparagraph></paragraph><paragraph id="H7C8B84067F7049899426D127EE00DA12"><enum>(5)</enum><header>Exempt
commercial purchaser</header><text display-inline="yes-display-inline">The term
<term>exempt commercial purchaser</term> means any person purchasing commercial
insurance that, at the time of placement, meets the following
requirements:</text>
<subparagraph id="H00B4883F663F4504BD8011FEDC9134BB"><enum>(A)</enum><text>The person employs
or retains a qualified risk manager to negotiate insurance coverage.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H462312FB725343D58FBE97F3BC582AA"><enum>(B)</enum><text>The person has paid
aggregate nationwide commercial property and casualty insurance premiums in
excess of $100,000 in the immediately preceding 12 months.</text>
</subparagraph><subparagraph id="HB9F92952184144699F7C72E9CCAA093C"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="HAEE0BC3279B34845B9939E00D2AA3E77"><enum>(i)</enum><text>The person meets at
least 1 of the following criteria:</text>
<subclause id="HDA6D0394104B41A49D96AE76EBFC7322" indent="up1"><enum>(I)</enum><text>The person possesses a net worth in
excess of $20,000,000, as such amount is adjusted pursuant to clause
(ii).</text>
</subclause><subclause id="H0531FB2D20934B779E4F6F52C831FA34" indent="up1"><enum>(II)</enum><text>The person generates annual revenues in
excess of $50,000,000, as such amount is adjusted pursuant to clause
(ii).</text>
</subclause><subclause id="H1FD2FB4B85F147E38227D1D500C5BD16" indent="up1"><enum>(III)</enum><text>The person employs more than 500
full-time or full-time equivalent employees per individual insured or is a
member of an affiliated group employing more than 1,000 employees in the
aggregate.</text>
</subclause><subclause id="H98CACB32F93F46BDBB54135D7FA183B7" indent="up1"><enum>(IV)</enum><text>The person is a not-for-profit
organization or public entity generating annual budgeted expenditures of at
least $30,000,000, as such amount is adjusted pursuant to clause (ii).</text>
</subclause><subclause id="HB017F3AB598D48E49F3DAFBFAC78B400" indent="up1"><enum>(V)</enum><text>The person is a municipality with a
population in excess of 50,000 persons.</text>
</subclause></clause><clause id="HF4C85A857E0746840054BFA9FD6B2751" indent="up1"><enum>(ii)</enum><text>Effective on the fifth January 1
occurring after the date of the enactment of this subtitle and each fifth
January 1 occurring thereafter, the amounts in subclauses (I), (II), and (IV)
of clause (i) shall be adjusted to reflect the percentage change for such
5-year period in the Consumer Price Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Department of Labor.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H9F995421EA1546C4AC8B05E9B9BA3E03"><enum>(6)</enum><header>Home
State</header>
<subparagraph id="H9E337BE99BE44B3CB98F29725C628513"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), the term <term>home State</term> means, with respect to an
insured—</text>
<clause id="H7499ABD85D31419B8B565FEFABCD7C3E"><enum>(i)</enum><text>the
State in which an insured maintains its principal place of business or, in the
case of an individual, the individual’s principal residence; or</text>
</clause><clause id="H023EC5C6B3184204A1D509194EDFBA4C"><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 id="H0369195A41414049A12865C2245D844A"><enum>(B)</enum><header>Affiliated
groups</header><text>If more than 1 insured from an affiliated group are named
insureds on a single nonadmitted insurance contract, the term <term>home
State</term> means the home State, as determined pursuant to subparagraph (A),
of the member of the affiliated group that has the largest percentage of
premium attributed to it under such insurance contract.</text>
</subparagraph></paragraph><paragraph id="H5C937E0E495D412D001BADECFAAD3667"><enum>(7)</enum><header>Independently
procured insurance</header><text>The term <term>independently procured
insurance</term> means insurance procured directly by an insured from a
nonadmitted insurer.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H9F85DB1EDCC645688C55CF954704028E"><enum>(8)</enum><header>NAIC</header><text>The
term <term>NAIC</term> means the National Association of Insurance
Commissioners or any successor entity.</text>
</paragraph><paragraph id="HBBB308DE8AF1456DB0FDF175324952D4"><enum>(9)</enum><header>Nonadmitted
insurance</header><text>The term <term>nonadmitted insurance</term> means any
property and casualty insurance permitted to be placed directly or through a
surplus lines broker with a nonadmitted insurer eligible to accept such
insurance.</text>
</paragraph><paragraph id="H1520AC690D5F4C5DA08502853E5E3485"><enum>(10)</enum><header>Non-admitted
insurance model act</header><text>The term <term>Non-Admitted Insurance Model
Act</term> means the provisions of the Non-Admitted Insurance Model Act, as
adopted by the NAIC on August 3, 1994, and amended on September 30, 1996,
December 6, 1997, October 2, 1999, and June 8, 2002.</text>
</paragraph><paragraph id="H3C059FC047A047369256C98BA212A3F1"><enum>(11)</enum><header>Nonadmitted
insurer</header><text>The term <term>nonadmitted insurer</term>—</text>
<subparagraph id="id9C40ECAEC0864411B994A3E018B12835"><enum>(A)</enum><text>means, with
respect to a State, an insurer not licensed to engage in the business of
insurance in such State; but</text>
</subparagraph><subparagraph id="id378C718083384F8482AC1CCE403FC7E9"><enum>(B)</enum><text>does not include
a risk retention group, as that term is defined in section 2(a)(4) of the
Liability Risk Retention Act of 1986 (15 U.S.C. 3901(a)(4)).</text>
</subparagraph></paragraph><paragraph id="H19098761C7B04964A93733878FFA10C9"><enum>(12)</enum><header>Qualified risk
manager</header><text display-inline="yes-display-inline">The term
<term>qualified risk manager</term> means, with respect to a policyholder of
commercial insurance, a person who meets all of the following
requirements:</text>
<subparagraph id="H416009772CEA4EE3B693E5A767B66F18"><enum>(A)</enum><text>The person is an
employee of, or third party consultant retained by, the commercial
policyholder.</text>
</subparagraph><subparagraph id="HF3167E278C254EDEB7AA9F94155C6F"><enum>(B)</enum><text>The
person provides skilled services in loss prevention, loss reduction, or risk
and insurance coverage analysis, and purchase of insurance.</text>
</subparagraph><subparagraph id="H55F6C04CBB9446F782C04127FBDD0D8"><enum>(C)</enum><text display-inline="yes-display-inline">The person—</text>
<clause id="H18585334351B4B79919111A170F3EC9C"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H86D41D66ADC74459006DCCCBC507DDD9"><enum>(I)</enum><text>has a bachelor’s degree
or higher from an accredited college or university in risk management, business
administration, finance, economics, or any other field determined by a State
insurance commissioner or other State regulatory official or entity to
demonstrate minimum competence in risk management; and</text>
</subclause><subclause id="HFF0AC53DBF1C40E2921118CCEDB2EB27" indent="up1"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="H62FFDE9314DE4E4E83AFC327D2CB781C"><enum>(aa)</enum><text display-inline="yes-display-inline">has 3 years of experience in risk
financing, claims administration, loss prevention, risk and insurance analysis,
or purchasing commercial lines of insurance; or</text>
</item><item id="H6971D83F101F4FEC95BA4C141801C58D" indent="up1"><enum>(bb)</enum><text>has 1 of the following
designations:</text>
<subitem id="HCCCC40FBA3F64494AB37D05698790412"><enum>(AA)</enum><text>a designation as a Chartered Property
and Casualty Underwriter (in this subparagraph referred to as
<quote>CPCU</quote>) issued by the American Institute for CPCU/Insurance
Institute of America;</text>
</subitem><subitem id="H3DEAD5FBDAFB4B3089F62B95D09D1659"><enum>(BB)</enum><text>a designation as an Associate in Risk
Management (ARM) issued by the American Institute for CPCU/Insurance Institute
of America;</text>
</subitem><subitem id="HCD124C1B47FC4E5DA6CF86E24D8AD2D"><enum>(CC)</enum><text>a designation as Certified Risk
Manager (CRM) issued by the National Alliance for Insurance Education &
Research;</text>
</subitem><subitem id="H8C1552AB92554F00A1589814B084A6FA"><enum>(DD)</enum><text>a designation as a RIMS Fellow (RF)
issued by the Global Risk Management Institute; or</text>
</subitem><subitem id="H5A89B572288946F1B4AE13FCC3796704"><enum>(EE)</enum><text>any other designation, certification,
or license determined by a State insurance commissioner or other State
insurance regulatory official or entity to demonstrate minimum competency in
risk management;</text>
</subitem></item></subclause></clause><clause id="H525A8EA3C1CA47F693704D5F4CD5EB5E"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H67007C6A50B149BCB900F3E6DF7E700"><enum>(I)</enum><text>has at least 7 years of
experience in risk financing, claims administration, loss prevention, risk and
insurance coverage analysis, or purchasing commercial lines of insurance;
and</text>
</subclause><subclause id="H2055FC0AC039415E87000000BACCA22B" indent="up1"><enum>(II)</enum><text>has any 1 of the designations specified
in subitems (AA) through (EE) of clause (i)(II)(bb);</text>
</subclause></clause><clause id="HAEB5E0C053FD4B8580C17B6760F35B83"><enum>(iii)</enum><text>has at
least 10 years of experience in risk financing, claims administration, loss
prevention, risk and insurance coverage analysis, or purchasing commercial
lines of insurance; or</text>
</clause><clause id="HC216C648AA8249EFB0685C1CD670BBFE"><enum>(iv)</enum><text display-inline="yes-display-inline">has a graduate degree from an accredited
college or university in risk management, business administration, finance,
economics, or any other field determined by a State insurance commissioner or
other State regulatory official or entity to demonstrate minimum competence in
risk management.</text>
</clause></subparagraph></paragraph><paragraph id="HC078466FD3D24B7FBD26DAD7A7D1B3C"><enum>(13)</enum><header>Premium
tax</header><text>The term <term>premium tax</term> means, with respect to
surplus lines or independently procured insurance coverage, any tax, fee,
assessment, or other charge imposed by a government entity directly or
indirectly based on any payment made as consideration for an insurance contract
for such insurance, including premium deposits, assessments, registration fees,
and any other compensation given in consideration for a contract of
insurance.</text>
</paragraph><paragraph id="H2BDC33EAE5A34125B68208BB4BF2E64"><enum>(14)</enum><header>Surplus lines
broker</header><text>The term <term>surplus lines broker</term> means an
individual, firm, or corporation which is licensed in a State to sell, solicit,
or negotiate insurance on properties, risks, or exposures located or to be
performed in a State with nonadmitted insurers.</text>
</paragraph></section></part><part id="HEA658BBD9F634D41B6F4F2D88DB06369"><enum>II</enum><header>Reinsurance</header>
<section id="HC6107BB5A4694190987727A9CE044D66" section-type="subsequent-section"><enum>531.</enum><header>Regulation of credit
for reinsurance and reinsurance agreements</header>
<subsection id="H11ADC702A222436698AE61B6FDBA8E83"><enum>(a)</enum><header>Credit for
reinsurance</header><text>If the State of domicile of a ceding insurer is an
NAIC-accredited State, or has financial solvency requirements substantially
similar to the requirements necessary for NAIC accreditation, and recognizes
credit for reinsurance for the insurer’s ceded risk, then no other State may
deny such credit for reinsurance.</text>
</subsection><subsection display-inline="no-display-inline" id="HED111F8F6CF7481A935EE6F3845BF2C"><enum>(b)</enum><header>Additional
preemption of extraterritorial application of State law</header><text display-inline="yes-display-inline">In addition to the application of
subsection (a), all laws, regulations, provisions, or other actions of a State
that is not the domiciliary State of the ceding insurer, except those with
respect to taxes and assessments on insurance companies or insurance income,
are preempted to the extent that they—</text>
<paragraph id="H10744FD3FECC4CCCA6FD79EAC9E2008B"><enum>(1)</enum><text display-inline="yes-display-inline">restrict or eliminate the rights of the
ceding insurer or the assuming insurer to resolve disputes pursuant to
contractual arbitration to the extent such contractual provision is not
inconsistent with the provisions of title 9, United States Code;</text>
</paragraph><paragraph id="H1F71FB57710045D79C8FEC665ED02297"><enum>(2)</enum><text>require that a
certain State’s law shall govern the reinsurance contract, disputes arising
from the reinsurance contract, or requirements of the reinsurance
contract;</text>
</paragraph><paragraph id="H7121B62DF406477AA57F4B771CF16009"><enum>(3)</enum><text>attempt to enforce
a reinsurance contract on terms different than those set forth in the
reinsurance contract, to the extent that the terms are not inconsistent with
this part; or</text>
</paragraph><paragraph id="HDC678C492E9C4A2EBA49C3D1EF8951"><enum>(4)</enum><text>otherwise apply the
laws of the State to reinsurance agreements of ceding insurers not domiciled in
that State.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H2FCC20AABC1148FEB2EEF97CD9F6639" section-type="subsequent-section"><enum>532.</enum><header>Regulation of
reinsurer solvency</header>
<subsection id="HBAF204F837B84C24842156C2002EB536"><enum>(a)</enum><header>Domiciliary
state regulation</header><text display-inline="yes-display-inline">If the State
of domicile of a reinsurer is an NAIC-accredited State or has financial
solvency requirements substantially similar to the requirements necessary for
NAIC accreditation, such State shall be solely responsible for regulating the
financial solvency of the reinsurer.</text>
</subsection><subsection display-inline="no-display-inline" id="HB9ACA73758054E9CB29B58B93B605700"><enum>(b)</enum><header>Nondomiciliary
states</header>
<paragraph id="H7B8EB0C9A146423291D1D449E648855F"><enum>(1)</enum><header>Limitation on
financial information requirements</header><text display-inline="yes-display-inline">If the State of domicile of a reinsurer is
an NAIC-accredited State or has financial solvency requirements substantially
similar to the requirements necessary for NAIC accreditation, no other State
may require the reinsurer to provide any additional financial information other
than the information the reinsurer is required to file with its domiciliary
State.</text>
</paragraph><paragraph id="H841D2D82104041ABB80177D60714BFB4"><enum>(2)</enum><header>Receipt of
information</header><text display-inline="yes-display-inline">No provision of
this section shall be construed as preventing or prohibiting a State that is
not the State of domicile of a reinsurer from receiving a copy of any financial
statement filed with its domiciliary State.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H81BF9E7426E54C3AB9E26006FC29D304" section-type="subsequent-section"><enum>533.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part, the following
definitions shall apply:</text>
<paragraph id="H0AE0570ADC804571A326AFFD56FFC4C5"><enum>(1)</enum><header>Ceding
insurer</header><text>The term <term>ceding insurer</term> means an insurer
that purchases reinsurance.</text>
</paragraph><paragraph id="H6C3B3A441C0D4B88ABCB734CAAC93DF8"><enum>(2)</enum><header>Domiciliary
State</header><text>The terms <term>State of domicile</term> and
<term>domiciliary State</term> mean, with respect to an insurer or reinsurer,
the State in which the insurer or reinsurer is incorporated or entered through,
and licensed.</text>
</paragraph><paragraph id="H625D76CB94BA459F9F5D64D431C51310"><enum>(3)</enum><header>Reinsurance</header><text>The
term <term>reinsurance</term> means the assumption by an insurer of all or part
of a risk undertaken originally by another insurer.</text>
</paragraph><paragraph id="H98367A9FF1CB4DB98ED95FF7E82CE8E1"><enum>(4)</enum><header>Reinsurer</header>
<subparagraph id="H5A5FAF13486944A4A676A600A8EA91AE"><enum>(A)</enum><header>In
general</header><text>The term <term>reinsurer</term> means an insurer to the
extent that the insurer—</text>
<clause id="H758534DC90DE4CF7962378E1CDC8E1C"><enum>(i)</enum><text>is
principally engaged in the business of reinsurance;</text>
</clause><clause id="H2C2ED325F9944EF789C5F127C8EB6C6B"><enum>(ii)</enum><text>does
not conduct significant amounts of direct insurance as a percentage of its net
premiums; and</text>
</clause><clause id="H3D6F3E3CA2E346E4B671BEC1F4FF167B"><enum>(iii)</enum><text>is not
engaged in an ongoing basis in the business of soliciting direct
insurance.</text>
</clause></subparagraph><subparagraph id="H3B591A27087F4B50A8A8EC16A0124E18"><enum>(B)</enum><header>Determination</header><text>A
determination of whether an insurer is a reinsurer shall be made under the laws
of the State of domicile in accordance with this paragraph.</text>
</subparagraph></paragraph></section></part><part id="H396223634FA04E9C87E7E5EAAD99E0C1"><enum>III</enum><header>Rule of
construction</header>
<section id="H4C29A6153F16475CA6FF8DFB00F7D0BA"><enum>541.</enum><header>Rule
of construction</header><text display-inline="no-display-inline">Nothing in
this subtitle or the amendments made by this subtitle shall be construed to
modify, impair, or supersede the application of the antitrust laws. Any implied
or actual conflict between this subtitle and any amendments to this subtitle
and the antitrust laws shall be resolved in favor of the operation of the
antitrust laws.</text>
</section><section commented="no" display-inline="no-display-inline" id="H3622A237E17548839A4523659B19827E" section-type="subsequent-section"><enum>542.</enum><header>Severability</header><text display-inline="no-display-inline">If any section or subsection of this
subtitle, or any application of such provision to any person or circumstance,
is held to be unconstitutional, the remainder of this subtitle, and the
application of the provision to any other person or circumstance, shall not be
affected.</text>
</section></part></subtitle><enum>VI</enum><header>Improvements to
regulation of bank and savings association holding companies and depository
institutions</header>
<section id="IDd7433542a470478d98358a80c1a84224"><enum>601.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Bank and Savings Association Holding Company and Depository
Institution Regulatory Improvements Act of 2010</quote>.</text>
</section><section id="idADA6D157FC484AA09729AD519674AC67"><enum>602.</enum><header>Definition</header><text display-inline="no-display-inline">In this title, the term <term>commercial
firm</term> means any entity that derives not less than 15 percent of the
consolidated annual gross revenues of the entity, including all affiliates of
the entity, from engaging in activities that are not financial in nature or
incidental to activities that are financial in nature, as provided in section
4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)).</text>
</section><section id="idF2A36304D4C640E98EAE517A8FB0FA2A"><enum>603.</enum><header>Moratorium and
study on treatment of credit card banks, industrial loan companies, and certain
other companies under the Bank Holding Company Act of 1956</header>
<subsection id="ID4579da5c8c59429ea0a898cfc807067e"><enum>(a)</enum><header>Moratorium</header>
<paragraph id="IDccbe364463a44030b2f4ba4af35b52a4"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="ID9244db980a694138b40ae2539e455fc1"><enum>(A)</enum><text>the term
<term>credit card bank</term> means an institution described in section
2(c)(2)(F) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(c)(2)(F));</text>
</subparagraph><subparagraph id="IDfc1e6d0b561d4471a81285357e7e8b08"><enum>(B)</enum><text>the term
<term>industrial bank</term> means an institution described in section
2(c)(2)(H) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(H));
and</text>
</subparagraph><subparagraph id="ID7ce1b0fcb958477e8bf7eaed8114fc9b"><enum>(C)</enum><text>the term
<term>trust bank</term> means an institution described in section 2(c)(2)(D) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(D)).</text>
</subparagraph></paragraph><paragraph id="IDdbbc84cf1cf44272b375546eba3955fc"><enum>(2)</enum><header>Moratorium on
provision of deposit insurance</header><text>The Corporation may not approve an
application for deposit insurance under section 5 of the Federal Deposit
Insurance Act (12 U.S.C. 1815) that is received after November 10, 2009, for an
industrial bank, a credit card bank, or a trust bank that is directly or
indirectly owned or controlled by a commercial firm.</text>
</paragraph><paragraph id="IDc1e85b1daf814810b298dd966dc560b8"><enum>(3)</enum><header>Change in
control</header>
<subparagraph id="idD19F36BCA16146E4B3EF4D82A7831282"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the appropriate
Federal banking agency shall disapprove a change in control, as provided in
section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)), of an
industrial bank, a credit card bank, or a trust bank if the change in control
would result in direct or indirect control of the industrial bank, credit card
bank, or trust bank by a commercial firm.</text>
</subparagraph><subparagraph id="IDe4316321d16a4b4390f2f893a06079ed"><enum>(B)</enum><header>Exceptions</header><text>Subparagraph
(A) shall not apply to a change in control of an industrial bank, credit card
bank, or trust bank that—</text>
<clause id="ID6aa60c2d30554de189eb95fd919c895f"><enum>(i)</enum><text>is in
danger of default, as determined by the appropriate Federal banking agency;
or</text>
</clause><clause id="ID5b0b9d986e7847b093d7d3f0e4d5a7f7"><enum>(ii)</enum><text>results from the
merger or whole acquisition of a commercial firm that directly or indirectly
controls the industrial bank, credit card bank, or trust bank in a bona fide
merger with or acquisition by another commercial firm, as determined by the
appropriate Federal banking agency.</text>
</clause></subparagraph></paragraph><paragraph id="IDbf37cda40e324efbb89780982847b53a"><enum>(4)</enum><header>Sunset</header><text>This
subsection shall cease to have effect 3 years after the date of enactment of
this Act.</text>
</paragraph></subsection><subsection id="ID79beb4aef39f4e309f28e3b99c70cc10"><enum>(b)</enum><header>Government
Accountability Office study of exceptions under the Bank Holding Company Act of
1956</header>
<paragraph id="ID907df5beddf9433291e847b83692112a"><enum>(1)</enum><header>Study
required</header><text>The Comptroller General of the United States shall carry
out a study to determine whether it is necessary, in order to strengthen the
safety and soundness of institutions or the stability of the financial system,
to eliminate the exceptions under section 2 of the Bank Holding Company Act of
1956 (12 U.S.C. 1841) for institutions described in—</text>
<subparagraph id="id11BBB45B04D04EAC9C453A90A8233662"><enum>(A)</enum><text>section
2(a)(5)(E) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(a)(5)(E));</text>
</subparagraph><subparagraph id="id52893B5A1B7640E98CA05FC19FAE39FA"><enum>(B)</enum><text>section
2(a)(5)(F) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(a)(5)(F));</text>
</subparagraph><subparagraph id="id9EB2CF025D084711AD17E62BAB94EC79"><enum>(C)</enum><text>section
2(c)(2)(D) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(c)(2)(D));</text>
</subparagraph><subparagraph id="id26AFA1FC927444EB8BF86A6841ACFE31"><enum>(D)</enum><text>section
2(c)(2)(F) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(c)(2)(F));</text>
</subparagraph><subparagraph id="id67D9BAA28D0740ED80BF4423DAAE7506"><enum>(E)</enum><text>section
2(c)(2)(H) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(H));
and</text>
</subparagraph><subparagraph id="ID2bf4cc9d25c642e3add0cf417f4264b3"><enum>(F)</enum><text>section
2(c)(2)(B) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(c)(2)(B)).</text>
</subparagraph></paragraph><paragraph id="ID87c2d1166aee4e95ad0e35bcb592cbb2"><enum>(2)</enum><header>Content of
study</header>
<subparagraph id="id7F18CE6CCE934D18883CA3E7D4F9E830"><enum>(A)</enum><header>In
general</header><text>The study required under paragraph (1), with respect to
the institutions referenced in each of subparagraphs (A) through (E) of
paragraph (1), shall, to the extent feasible be based on information provided
to the Comptroller General by the appropriate Federal or State regulator, and
shall—</text>
<clause id="ID589fcf1e6c714cedabe0d1c06960c1c2"><enum>(i)</enum><text>identify the
types and number of institutions excepted from section 2 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841) under each of the subparagraphs described
in subparagraphs (A) through (E) of paragraph (1);</text>
</clause><clause id="IDb684c882326442b981186554eb4ea00a"><enum>(ii)</enum><text>generally
describe the size and geographic locations of the institutions described in
clause (i);</text>
</clause><clause id="ID83f2e5209cd44e07a9891991482ae0f9"><enum>(iii)</enum><text>determine the
extent to which the institutions described in clause (i) are held by holding
companies that are commercial firms;</text>
</clause><clause id="ID5c4a014a1d084e46ac74e71934b714c8"><enum>(iv)</enum><text>determine
whether the institutions described in clause (i) have any affiliates that are
commercial firms;</text>
</clause><clause id="ID2232df33ad6c49869aa955d86d500be4"><enum>(v)</enum><text>identify the
Federal banking agency responsible for the supervision of the institutions
described in clause (i) on and after the transfer date;</text>
</clause><clause id="ID4b0e1044e0e64c1ca3d3e3fab64aa7ff"><enum>(vi)</enum><text>determine the
adequacy of the Federal bank regulatory framework applicable to each category
of institution described in clause (i), including any restrictions (including
limitations on affiliate transactions or cross-marketing) that apply to
transactions between an institution, the holding company of the institution,
and any other affiliate of the institution; and</text>
</clause><clause id="IDeb73627e82b44e23bfc6462e7b62fb20"><enum>(vii)</enum><text>evaluate the
potential consequences of subjecting the institutions described in clause (i)
to the requirements of the Bank Holding Company Act of 1956, including with
respect to the availability and allocation of credit, the stability of the
financial system and the economy, the safe and sound operation of each category
of institution, and the impact on the types of activities in which such
institutions, and the holding companies of such institutions, may
engage.</text>
</clause></subparagraph><subparagraph id="idD1D7EF8780C147718D6CFF45AFF8A04A"><enum>(B)</enum><header>Savings
associations</header><text>With respect to institutions described in paragraph
(1)(F), the study required under paragraph (1) shall—</text>
<clause id="idBD9B562816D4461F914DD492540528C0"><enum>(i)</enum><text>determine the
adequacy of the Federal bank regulatory framework applicable to such
institutions, including any restrictions (including limitations on affiliate
transactions or cross-marketing) that apply to transactions between an
institution, the holding company of the institution, and any other affiliate of
the institution; and</text>
</clause><clause id="id99F87A2C5E9243C6B1B02FE4357380C6"><enum>(ii)</enum><text>evaluate the
potential consequences of subjecting the institutions described in paragraph
(1)(F) to the requirements of the Bank Holding Company Act of 1956, including
with respect to the availability and allocation of credit, the stability of the
financial system and the economy, the safe and sound operation of such
institutions, and the impact on the types of activities in which such
institutions, and the holding companies of such institutions, may
engage.</text>
</clause></subparagraph></paragraph><paragraph id="IDe2c09ca13efb4b24aa4edc62bb304ffe"><enum>(3)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the study required under paragraph (1).</text>
</paragraph></subsection></section><section id="IDcc1d05ce437c4547a4fcb669a6c92d6d"><enum>604.</enum><header>Reports and
examinations of holding companies; regulation of functionally regulated
subsidiaries</header>
<subsection id="idC01835C4309E48B4B73B681DCE0C3AFD"><enum>(a)</enum><header>Reports by bank
holding companies</header><text>Sections 5(c)(1) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1844(c)(1)) is amended—</text>
<paragraph id="idF9039FBB114A440B96C9786FB7E9DC46"><enum>(1)</enum><text>by
striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id16767FAF99904BC9B868CA59AAD17D94" style="OLC">
<subparagraph id="ID3535f1c009bf4cfc979df7d88369e604"><enum>(B)</enum><header>Use of existing
reports and other supervisory information</header><text>The appropriate Federal
banking agency for a bank holding company shall, to the fullest extent
possible, use—</text>
<clause id="IDf37c4a82145146068ee09916d56108a2"><enum>(i)</enum><text>reports and other
supervisory information that the bank holding company or any subsidiary thereof
has been required to provide to other Federal or State regulatory
agencies;</text>
</clause><clause id="idB24EDA0586DB49A49340ECDBFA2F0BC6"><enum>(ii)</enum><text>externally
audited financial statements of the bank holding company or subsidiary;</text>
</clause><clause id="ID35ae36b23ad44c8698b3ea05f4c7f523"><enum>(iii)</enum><text>information
otherwise available from Federal or State regulatory agencies; and</text>
</clause><clause id="idE1B2A79161E14855826CCD9A8AA6DA39"><enum>(iv)</enum><text>information that
is otherwise required to be reported
publicly.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idD25F7E2DD9B747E284A435A29FF72C15"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2B0AC155CDDB482D8A406F8F98033F5C" style="OLC">
<subparagraph id="idD7B993FF5EA244C7894F491DD4969822"><enum>(C)</enum><header>Availability</header><text>Upon
the request of the appropriate Federal banking agency for a bank holding
company, the bank holding company or a subsidiary of the bank holding company
shall promptly provide to the appropriate Federal banking agency any
information described in clauses (i) through (iii) of subparagraph
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id97A050A3F6F7427DB973A942215C2DED"><enum>(b)</enum><header>Examinations of
bank holding companies</header><text>Section 5(c)(2) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(c)(2)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id1F3AC5247C0B47A6BD37C1FC29F7E101" style="OLC">
<paragraph id="id8A14C9DFD33A409CAD7159A40F03B93E"><enum>(2)</enum><header>Examinations</header>
<subparagraph id="id64376CC4C6AB45B99C88D5B8A02C8F10"><enum>(A)</enum><header>In
general</header><text>The appropriate Federal banking agency for a bank holding
company may make examinations of the bank holding company and each subsidiary
of the bank holding company in order to—</text>
<clause id="id5DEEE61F5A254C5B9D239A409DCD9A46"><enum>(i)</enum><text>inform such
appropriate Federal banking agency of—</text>
<subclause id="id1F0370C04C314FF89E23C7B9FA4311A2"><enum>(I)</enum><text>the nature of the
operations and financial condition of the bank holding company and the
subsidiary;</text>
</subclause><subclause id="idB9855B2A85AD42009D92F2CE821572E2"><enum>(II)</enum><text>the financial,
operational, and other risks within the bank holding company system that may
pose a threat to—</text>
<item id="id747CCC0A2F794DF79DABC05793926D59"><enum>(aa)</enum><text>the
safety and soundness of the bank holding company or of any depository
institution subsidiary of the bank holding company; or</text>
</item><item id="idF162E33946624A9FA695DD75805DBA26"><enum>(bb)</enum><text>the
stability of the financial system of the United States; and</text>
</item></subclause><subclause id="id7B989CC125EE49459FCDBF640F41D18B"><enum>(III)</enum><text>the systems of
the bank holding company for monitoring and controlling the risks described in
subclause (II); and</text>
</subclause></clause><clause id="id84B51EDA7DD149A688B431BECA8423E8"><enum>(ii)</enum><text>enforce the
compliance of the bank holding company and the subsidiary with this Act and any
other Federal law that such appropriate Federal banking agency has specific
jurisdiction to enforce against the bank holding company or subsidiary.</text>
</clause></subparagraph><subparagraph id="id7C400538204F492EBBC18FC093B83CBB"><enum>(B)</enum><header>Use of reports
to reduce examinations</header><text>For purposes of this paragraph, the
appropriate Federal banking agency for a bank holding company shall, to the
fullest extent possible, rely on—</text>
<clause id="idD0E3D7180CCE4946B723F21416CDA67E"><enum>(i)</enum><text>examination
reports made by other Federal or State regulatory agencies relating to the bank
holding company and any subsidiary of the bank holding company; and</text>
</clause><clause id="id851348E044AB4587AA73207C5421B350"><enum>(ii)</enum><text>the
reports and other information required under paragraph (1).</text>
</clause></subparagraph><subparagraph id="idC5D3AD5160D345D78179546B23D3B162"><enum>(C)</enum><header>Coordination
with other regulators</header><text>The appropriate Federal banking agency for
a bank holding company shall—</text>
<clause id="id60808059ECEF4E30A064CFDBD4D314A4"><enum>(i)</enum><text>provide
reasonable notice to, and consult with, the appropriate Federal banking agency
or State regulatory agency of a subsidiary that is a depository institution or
a functionally regulated subsidiary before commencing an examination of the
subsidiary under this section; and</text>
</clause><clause id="id75554568DB694C04B316E3B47578B2A1"><enum>(ii)</enum><text>to
the fullest extent possible, avoid duplication of examination activities,
reporting requirements, and requests for
information.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9e4e3c41ad604f1f94ac9dde15ad084b"><enum>(c)</enum><header>Authority to
regulate functionally regulated subsidiaries of bank holding
companies</header><text>The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.) is amended—</text>
<paragraph id="idAE919302AA89433AAB57F685D709E2D9"><enum>(1)</enum><text>in
section 5(c) (12 U.S.C. 1844(c)), by striking paragraphs (3) and (4) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id3BFAE52FE3FB4CD593B1CB6551AC5703" style="OLC">
<paragraph id="idC429921DFF0C440DBBA2649B9563A3C9"><enum>(3)</enum><text>[Reserved]</text>
</paragraph><paragraph id="id03E0D57DC4964700ABB5CBA96AE8DFA4"><enum>(4)</enum><text>[Reserved]</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE490B1405F684A19905B08AAB2FAA062"><enum>(2)</enum><text>by
striking section 10A (12 U.S.C. 1848a).</text>
</paragraph></subsection><subsection id="IDc8843b9745524707aa9ebffa3065739b"><enum>(d)</enum><header>Acquisitions of
banks</header><text>Section 3(c) of the Bank Holding Company Act of 1956 (12
U.S.C. 1842(c)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD139EEA3B116429BB55B11D9F9B93437" style="OLC">
<paragraph id="IDeabf8ea70711408eaed44969896815c7"><enum>(7)</enum><header>Financial
stability</header><text>In every case, the appropriate Federal banking agency
of a bank holding company shall take into consideration the extent to which a
proposed acquisition, merger, or consolidation would result in greater or more
concentrated risks to the stability of the United States banking or financial
system.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd31bf648ca76445ba0590f252c1777ba"><enum>(e)</enum><header>Acquisitions of
nonbanks</header>
<paragraph id="ID0b898e1d9a0f4cfdbe2cfea67eac561d"><enum>(1)</enum><header>Notice
procedures</header><text>Section 4(j)(2)(A) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(j)(2)(A)) is amended by striking <quote>or unsound banking
practices</quote> and inserting <quote>unsound banking practices, or risk to
the stability of the United States banking or financial system</quote>.</text>
</paragraph><paragraph id="ID30b179bf76c44a8dac99e76b164efd0c"><enum>(2)</enum><header>Activities that
are financial in nature</header><text>Section 4(k)(6)(B) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id28839815BCD643C2A4B31B3A4D73BB89" style="OLC">
<subparagraph id="ID06314c7d40e843e5b5ac51f36f4a7ab9"><enum>(B)</enum><header>Approval not
required for certain financial activities</header>
<clause id="id999ACDD7FF464CEF902C73D86A07B9F3"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), a financial holding
company may commence any activity or acquire any company, pursuant to paragraph
(4) or any regulation prescribed or order issued under paragraph (5), without
prior approval of the appropriate Federal banking agency for the financial
holding company.</text>
</clause><clause id="IDe1294cd1be304d0fbb0f2dad16b0bac0"><enum>(ii)</enum><header>Exception</header><text>A
financial holding company may not acquire a company, without the prior approval
of the appropriate Federal banking agency for the financial holding company, in
a transaction in which the total consolidated assets to be acquired by the
financial holding company exceed
$25,000,000,000.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID668044eccc434c9bb6f001483577383e"><enum>(f)</enum><header>Bank merger act
transactions</header><text>Section 18(c)(5) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(c)(5)) is amended, in the matter immediately following
subparagraph (B), by striking <quote>and the convenience and needs of the
community to be served</quote> and inserting <quote>the convenience and needs
of the community to be served, and the risk to the stability of the United
States banking or financial system</quote>.</text>
</subsection><subsection id="id5D6CD0442C71403E8D34A54B3816AE70"><enum>(g)</enum><header>Reports by
savings and loan holding companies</header><text>Section 10(b)(2) of the Home
Owners' Loan Act (12 U.S.C. 1467a(b)(2) is amended—</text>
<paragraph id="ID306774fd41134d15bb3a39be9bce7aaa"><enum>(1)</enum><text>by
striking <quote>Each savings</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id1D48D5CD9BBF448AA9E3E40263251FF1" style="OLC">
<subparagraph id="id9C16C85176F34579A73FB75A8FFA3C6E"><enum>(A)</enum><header>In
general</header><text>Each savings</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id92BDFFC965A34574BAB1262DD97B2159"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAF5EC31F76CE41519E18EF99C4063E3D" style="OLC">
<subparagraph id="IDd2b061cec8f64219a548eb9f34f9fe23"><enum>(B)</enum><header>Use of existing
reports and other supervisory information</header><text>The appropriate Federal
banking agency for a savings and loan holding company shall, to the fullest
extent possible, use—</text>
<clause id="ID393ee24f02bc4cbb8f659d65c80dd959"><enum>(i)</enum><text>reports and other
supervisory information that the savings and loan holding company or any
subsidiary thereof has been required to provide to other Federal or State
regulatory agencies;</text>
</clause><clause id="ID5ae3ac41930e463fa690ac949184ecab"><enum>(ii)</enum><text>externally
audited financial statements of the savings and loan holding company or
subsidiary;</text>
</clause><clause id="ID3a8327ad01ba4ee7917bd4ff03c4e826"><enum>(iii)</enum><text>information
that is otherwise available from Federal or State regulatory agencies;
and</text>
</clause><clause id="ID10d8051c864c4ff5b693430c2e4cf6d7"><enum>(iv)</enum><text>information that
is otherwise required to be reported publicly.</text>
</clause></subparagraph><subparagraph id="ID32bf208bfa3a4aff840116c5c9c07262"><enum>(C)</enum><header>Availability</header><text>Upon
the request of the appropriate Federal banking agency for a savings and loan
holding company, the savings and loan holding company or a subsidiary of the
savings and loan holding company shall promptly provide to the appropriate
Federal banking agency any information described in clauses (i) through (iii)
of subparagraph
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id136772E4E91446D482DEEA86E4CAB625"><enum>(h)</enum><header>Examination of
savings and loan holding companies</header>
<paragraph id="id624D42A3F2FE41618203966C4F3124B4"><enum>(1)</enum><header>Definitions</header><text>Section
2 of the Home Owners' Loan Act (12 U.S.C. 1462) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="idAC4D6679E8784E2F80D36DEA33AB8331" style="OLC">
<paragraph id="id344FD3CA53364C9BBB31B687BC3573D4"><enum>(10)</enum><header>Appropriate
Federal banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the same meaning as in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="idE43A8614A8644009B3BD9101D67C50A4"><enum>(11)</enum><header>Functionally
regulated subsidiary</header><text>The term <term>functionally regulated
subsidiary</term> has the same meaning as in section 5(c)(5) of the Bank
Holding Company Act of 1956 (12 U.S.C.
1844(c)(5)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id26C30BB6C1894908B3E81559B69545E8"><enum>(2)</enum><header>Examination</header><text>Section
10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)) is amended by striking
paragraph (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id8557BC0B95574195910EC45513DDC888" style="OLC">
<paragraph id="id27D5D906E08C4B82BAEB5711F598E7EE"><enum>(4)</enum><header>Examinations</header>
<subparagraph id="id662883059EC94D4B85AF7B534D9578F4"><enum>(A)</enum><header>In
general</header><text>The appropriate Federal banking agency for a savings and
loan holding company may make examinations of the savings and loan holding
company and each subsidiary of the savings and loan holding company system, in
order to—</text>
<clause id="id89D1C98934AA42BBACB0F8B7CDAD7026"><enum>(i)</enum><text>inform such
appropriate Federal banking agency of—</text>
<subclause id="idB52649B07BAB4FB092395BC7CF76817F"><enum>(I)</enum><text>the nature of the
operations and financial condition of the savings and loan holding company and
the subsidiary;</text>
</subclause><subclause id="idFEDDE6467C7A4E8393EF9FE155A5EA2F"><enum>(II)</enum><text>the financial,
operational, and other risks within the savings and loan holding company that
may pose a threat to—</text>
<item id="idE4D92A77A5D74D6C8C1AEE98F0CA4332"><enum>(aa)</enum><text>the
safety and soundness of the savings and loan holding company or of any
depository institution subsidiary of the savings and loan holding company;
or</text>
</item><item id="id78E7D4B3F6474063B93F5FE073BC20A9"><enum>(bb)</enum><text>the
stability of the financial system of the United States; and</text>
</item></subclause><subclause id="id1F033820CD3347BF82269A60D1FC3AF3"><enum>(III)</enum><text>the systems of
the savings and loan holding company for monitoring and controlling the risks
described in subclause (II); and</text>
</subclause></clause><clause id="id674352175F4E4020A607C682F0F4779D"><enum>(ii)</enum><text>enforce the
compliance of the savings and loan holding company and the subsidiary with this
Act and any other Federal law that such appropriate Federal banking agency has
specific jurisdiction to enforce against the savings and loan holding company
or subsidiary.</text>
</clause></subparagraph><subparagraph id="ID62b2b7c66ed94ab6bc6d16897d83fc7c"><enum>(B)</enum><header>Use of reports
to reduce examinations</header><text>For purposes of this subsection, the
appropriate Federal banking agency for a savings and loan holding company
shall, to the fullest extent possible, rely on—</text>
<clause id="id02D6BD986FF5420FB39CBC5524DB279E"><enum>(i)</enum><text>the
examination reports made by other Federal or State regulatory agencies relating
to the savings and loan holding company and any subsidiary; and</text>
</clause><clause id="id327E1F0253D04C219BD7A4DBC2E63111"><enum>(ii)</enum><text>the
reports and other information required under paragraph (2).</text>
</clause></subparagraph><subparagraph id="id1B57C592D85C4FAD84DB9F3D8D0E2268"><enum>(C)</enum><header>Coordination
with other regulators</header><text>The appropriate Federal banking agency for
a savings and loan holding company shall—</text>
<clause id="id8EBA7A86861D4F0FB240AA4A5E21C4FE"><enum>(i)</enum><text>provide
reasonable notice to, and consult with, the appropriate Federal banking agency
or State regulatory agency of a subsidiary that is a depository institution or
a functionally regulated subsidiary before commencing an examination of the
subsidiary under this section; and</text>
</clause><clause id="id9053075291D34E81AE5911C2ADDA9E46"><enum>(ii)</enum><text>to
the fullest extent possible, avoid duplication of examination activities,
reporting requirements, and requests for
information.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC98E92BA6F0E44A29D49B2FAAC9ADC41"><enum>(i)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="ID8935f5b89e704325b13e1184dd1d66da"><enum>605.</enum><header>Assuring
consistent oversight of permissible activities of depository institution
subsidiaries of holding companies</header><text display-inline="no-display-inline">Section 6 of the Bank Holding Company Act of
1956 (12 U.S.C. 1845) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id9EC1ACF434954A23A5B1F833FFEB4C5B" style="OLC">
<section id="id9198E578894D481E9C5CD3678BC5806E"><enum>6.</enum><header>Assuring
consistent oversight of permissible activities of depository institution
subsidiaries of holding companies</header>
<subsection id="id314F057FF8C94676917CB5F0084674AD"><enum>(a)</enum><header>Definitions</header>
<paragraph id="id1161E1B5B2FB4CE3B054111393B4F70D"><enum>(1)</enum><header>Definitions</header><text>In
this section—</text>
<subparagraph id="IDd9e4070ec8f24715a4d0e245a9b00058"><enum>(A)</enum><text>the term
<term>depository institution holding company</term> has the same meaning as in
section 3(w) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w));</text>
</subparagraph><subparagraph commented="no" id="id878460D3A86746E69B4550F7498ACB82"><enum>(B)</enum><text>the term
<term>functionally regulated subsidiary</term> has the same meaning as in
section 5(c)(5); and</text>
</subparagraph><subparagraph id="id6EED5739CCA943038215D7A522DD4D93"><enum>(C)</enum><text>the term
<term>lead Federal banking agency</term> means—</text>
<clause id="IDcfc61d37239f4b19bee84e6b4da09f9c"><enum>(i)</enum><text>the
Office of the Comptroller of the Currency, in the case of any depository
institution holding company having—</text>
<subclause id="ID825c0e0b12b4484b9ae0f6ebad81ee4f"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are Federal depository institutions; or</text>
</subclause><subclause id="ID13689e31abaa4fdcb1ee8f5e3b271ae3"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are Federal depository institutions exceed the total
consolidated assets of all subsidiaries that are State depository institutions;
and</text>
</subclause></clause><clause id="ID76b961cb67164b62af9c60bc448fcfe3"><enum>(ii)</enum><text>the
Federal Deposit Insurance Corporation, in the case of any depository
institution holding company having—</text>
<subclause id="IDfd4dde210200436182999bf1afaec22a"><enum>(I)</enum><text>a
subsidiary that is an insured depository institution, if all such insured
depository institutions are State depository institutions; or</text>
</subclause><subclause id="ID70a9c04c393649a98913e65d343ec819"><enum>(II)</enum><text>a
subsidiary that is a Federal depository institution and a subsidiary that is a
State depository institution, if the total consolidated assets of all
subsidiaries that are State depository institutions exceed the total
consolidated assets of all subsidiaries that are Federal depository
institutions.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDbe081e9b4fb04875abedc743c01c8c22"><enum>(2)</enum><header>Determination
of total consolidated assets</header><text>For purposes of paragraph (1)(A),
the total consolidated assets of a depository institution shall be determined
in the same manner that total consolidated assets of depository institutions
are determined for purposes of section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)).</text>
</paragraph></subsection><subsection id="id515BB7D1A2BA403D9D3BF1C2CC17B405"><enum>(b)</enum><header>Lead agency
supervision</header>
<paragraph id="idCE7817B42E4A45B38BAF8AE6903686F7"><enum>(1)</enum><header>In
general</header><text>The lead Federal banking agency for each depository
institution holding company shall make examinations of the activities of each
nondepository institution subsidiary (other than a functionally regulated
subsidiary) of the depository institution holding company that are permissible
for depository institution subsidiaries of the depository institution holding
company, to determine whether the activities—</text>
<subparagraph id="IDe397959a466e4c1f9913ee7761a54ddf"><enum>(A)</enum><text>present safety
and soundness risks to any depository institution subsidiary of the depository
institution holding company;</text>
</subparagraph><subparagraph id="IDadb560623d4445888c8f935dd4f641ed"><enum>(B)</enum><text>are conducted in
accordance with applicable law; and</text>
</subparagraph><subparagraph id="ID898454772f8448cd8f9b9cb6417622ed"><enum>(C)</enum><text>are subject to
appropriate systems for monitoring and controlling the financial, operating,
and other risks of the activity and protecting the depository institution
subsidiaries of the holding company.</text>
</subparagraph></paragraph><paragraph id="id92765A92D3ED4708B2FB8C6B0DA5BE24"><enum>(2)</enum><header>Process for
examination</header><text>An examination under paragraph (1) shall be carried
out under the authority of the lead Federal banking agency, as if the
nondepository institution subsidiary were an insured depository institution for
which the lead Federal banking agency is the appropriate Federal banking
agency.</text>
</paragraph></subsection><subsection id="idB86390DDA4014F02A9B6CF413EBFF795"><enum>(c)</enum><header>Coordination</header><text>For
each depository institution holding company for which the Board of Governors is
the appropriate Federal banking agency, the lead Federal banking agency of the
depository institution holding company shall coordinate the supervision of the
activities of subsidiaries described in subsection (b) with the Board of
Governors, in a manner that—</text>
<paragraph id="ID337b2c97dd334145a2f1b10c775f2723"><enum>(1)</enum><text>avoids
duplication;</text>
</paragraph><paragraph id="ID43684da557a1445db986709b42fc386b"><enum>(2)</enum><text>shares
information relevant to the supervision of the depository institution holding
company by each agency;</text>
</paragraph><paragraph id="ID6c024b4900e0495dad411fd068a00d16"><enum>(3)</enum><text>achieves the
objectives of subsection (b); and</text>
</paragraph><paragraph id="ID6fc4b61ed08847bf88aa2ee604b67b43"><enum>(4)</enum><text>ensures that the
depository institution holding company and the subsidiaries of the depository
institution holding company are not subject to conflicting supervisory demands
by the 2 agencies.</text>
</paragraph></subsection><subsection id="idDA9F4BA9CE5F4D9DBFF032B98DF1A121"><enum>(d)</enum><header>Referrals for
enforcement</header>
<paragraph id="idBCB38CD25BD64B94A854633FBF9A2B1E"><enum>(1)</enum><header>Recommendation
of action by Board of Governors</header><text>The lead Federal banking agency
for a depository institution holding company, based on information obtained
pursuant to the responsibilities of the agency under subsection (b), may submit
to the Board of Governors, in writing, a recommendation that the Board of
Governors take enforcement action against a nondepository institution
subsidiary (other than a functionally regulated subsidiary) of the depository
institution holding company, together with an explanation of the concerns
giving rise to the recommendation.</text>
</paragraph><paragraph id="idA477700EC2EE4880A6494FE6DCC18C59"><enum>(2)</enum><header>Back-up
authority of the lead Federal banking agency</header><text>If, within the
60-day period beginning on the date on which the Board of Governors receives a
recommendation under paragraph (1), the Board of Governors does not take
enforcement action against a nondepository institution subsidiary or provide a
plan for enforcement action that is acceptable to the lead Federal banking
agency, the lead Federal banking agency (upon the authorization of the
Comptroller, or the Federal Deposit Insurance Corporation, upon a vote of its
members, as applicable) may take the recommended enforcement action, in the
same manner as if the subsidiary were an insured depository institution for
which the lead Federal banking agency is the appropriate Federal banking
agency.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id9E8A6B940D964213B64D12858FB371C9"><enum>606.</enum><header>Requirements
for financial holding companies to remain well capitalized and well
managed</header>
<subsection id="idD0B57E049F4F482DAB7EB117FCCD8F2C"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 4(l)(1) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(l)(1)) is amended—</text>
<paragraph id="IDc43722238eda4a3c9b27550ad5106311"><enum>(1)</enum><text>in
subparagraph (B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="idF21BB86CCD1A44DEA80F9CB7935A1F5B"><enum>(2)</enum><text>by
redesignating subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="ID1e631e73e168465783739eba13b54894"><enum>(3)</enum><text>by
inserting after subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="idD281340CC95D4E71B99A9BFD2EC1F36A" style="OLC">
<subparagraph id="ID8d488186d32f4f2286d086fd20a3b2b6"><enum>(C)</enum><text>the bank holding
company is well capitalized and well managed;
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID3509c136bdd646bd8e3101b373884c6b"><enum>(4)</enum><text>in
subparagraph (D)(ii), as so redesignated, by striking <quote>subparagraphs (A)
and (B)</quote> and inserting <quote>subparagraphs (A), (B), and
(C)</quote>.</text>
</paragraph></subsection><subsection id="idA16CA06D500545148A7C412496BD4825"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="ID819b8e086fb94273b3e87fd286a6ee39"><enum>607.</enum><header>Standards for
interstate acquisitions</header>
<subsection id="id0299AA185E66451AAEA0115C37C44F93"><enum>(a)</enum><header>Acquisition of
banks</header><text display-inline="yes-display-inline">Section 3(d)(1)(A) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1842(d)(1)(A)) is amended by
striking <quote>adequately capitalized and adequately managed</quote> and
inserting <quote>well capitalized and well managed</quote>.</text>
</subsection><subsection id="ID85351e9759d84445ad22414c0bea8530"><enum>(b)</enum><header>Interstate bank
mergers</header><text>Section 44(b)(4)(B) of the Federal Deposit Insurance Act
(12 U.S.C. 1831u(b)(4)(B)) is amended by striking <quote>will continue to be
adequately capitalized and adequately managed</quote> and inserting <quote>will
be well capitalized and well managed</quote>.</text>
</subsection><subsection id="idAABCAACD152E4471B16ED1BE4F577026"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="ID8f8aa1896da64019aed34bbd0466e8df"><enum>608.</enum><header>Enhancing
existing restrictions on bank transactions with affiliates</header>
<subsection id="ID924cb09a0e83445e961eb4de00dfb2d7"><enum>(a)</enum><header>Affiliate
transactions</header><text>Section 23A of the Federal Reserve Act (12 U.S.C.
371c) is amended—</text>
<paragraph id="IDe41c9563bc4a42029d67b76a41b5205d"><enum>(1)</enum><text>in
subsection (b)—</text>
<subparagraph id="id7A031BA44865461EA5AA43EF9F6D28B6"><enum>(A)</enum><text>in paragraph (1),
by striking subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idDCD0A243189E47D3B46B8381B22E8DD4" style="OLC">
<subparagraph id="ID7ce1416857b543b8a465652f2f9dfa71"><enum>(D)</enum><text>any investment
fund with respect to which a member bank or affiliate thereof is an investment
adviser; and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID1788cb78ad184d03ac6eefb08552ad07"><enum>(B)</enum><text>in paragraph
(7)—</text>
<clause id="id5F3F0B876BEF4A75A775B74F1D3935DC"><enum>(i)</enum><text>in
subparagraph (A), by inserting before the semicolon at the end the following:
<quote>, including a purchase of assets subject to an agreement to
repurchase</quote>;</text>
</clause><clause commented="no" id="ID7d84d331471a4aba8c36a91dad998926"><enum>(ii)</enum><text>in subparagraph
(C), by striking <quote>, including assets subject to an agreement to
repurchase,</quote>;</text>
</clause><clause id="ID70a1cbbe3e864bfca4261609515c667d"><enum>(iii)</enum><text>in
subparagraph (D)—</text>
<subclause id="id7204F5687AE642208F1AF88B8387AEDE"><enum>(I)</enum><text>by
inserting <quote>or other debt obligations</quote> after <quote>acceptance of
securities</quote>; and</text>
</subclause><subclause id="id0CFBCBF4D56D44CFA1977E9557153992"><enum>(II)</enum><text>by
striking <quote>or</quote> at the end; and</text>
</subclause></clause><clause id="IDde800c305bfe47f29bcd64fef166a37f"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idED623BAC84CB458199BC6BCF2D1D9E72" style="OLC">
<subparagraph id="ID3d1479badbf04b8ea04b9d6ea35a5bea"><enum>(F)</enum><text>a transaction
with an affiliate that involves the borrowing or lending of securities, to the
extent that the transaction causes a member bank or a subsidiary to have credit
exposure to the affiliate; or</text>
</subparagraph><subparagraph id="ID091b1b95655f43baa4cc9b5d7ebb0b6e"><enum>(G)</enum><text>a derivative
transaction, as defined in paragraph (3) of section 5200(b) of the Revised
Statutes of the United States (12 U.S.C. 84(b)), with an affiliate, to the
extent that the transaction causes a member bank or a subsidiary to have credit
exposure to the
affiliate;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="ID9eb7486aebea4ed39f9e650e3c0df47b"><enum>(2)</enum><text>in
subsection (c)—</text>
<subparagraph id="idA56DDB83C36B4A908C53CD53E14DDB2E"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="idDFDE8F9B085D4B3CA22424821A2DD3F6"><enum>(i)</enum><text>in the
matter preceding subparagraph (A), by striking <quote>subsidiary</quote> and
all that follows through <quote>time of the transaction</quote> and inserting
<quote>subsidiary, and any credit exposure of a member bank or a subsidiary to
an affiliate resulting from a securities borrowing or lending transaction, or a
derivative transaction, shall be secured at all times</quote>; and</text>
</clause><clause id="id0EB7D8CCB1CD4C0785019A595322FC7D"><enum>(ii)</enum><text>in
each of subparagraphs (A) through (D), by striking <quote>or letter of
credit</quote> and inserting <quote>letter of credit, or credit
exposure</quote>;</text>
</clause></subparagraph><subparagraph id="IDeb21bf08ce604a85a1da2940baab248d"><enum>(B)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="idB6A1FEB5BC8146F7B7745BCE7500B964"><enum>(C)</enum><text>by redesignating
paragraphs (3) through (5) as paragraphs (2) through (4), respectively;</text>
</subparagraph><subparagraph id="id3491D0BF8C1F4FEC916EA9F8EC849AE0"><enum>(D)</enum><text>in paragraph (2),
as so redesignated, by inserting before the period at the end <quote>, or
credit exposure to an affiliate resulting from a securities borrowing or
lending transaction, or derivative transaction</quote>; and</text>
</subparagraph><subparagraph id="IDe2d0c186353d4d2b8217077aa8d50510"><enum>(E)</enum><text>in paragraph (3),
as so redesignated—</text>
<clause id="id72F86376ACC544748B80272EC795B5B1"><enum>(i)</enum><text>by
inserting <quote>or other debt obligations</quote> after
<quote>securities</quote>; and</text>
</clause><clause id="idFBC736077BA9460A9A84C236CE78445D"><enum>(ii)</enum><text>by
striking <quote>or guarantee</quote> and all that follows through <quote>behalf
of,</quote> and inserting <quote>guarantee, acceptance, or letter of credit
issued on behalf of, or credit exposure from a securities borrowing or lending
transaction, or derivative transaction to,</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="id8F7E38E32D4242ABB2046E744F34E9E8"><enum>(3)</enum><text>in
subsection (d)(4), in the matter preceding subparagraph (A), by striking
<quote>or issuing</quote> and all that follows through <quote>behalf
of,</quote> and inserting <quote>issuing a guarantee, acceptance, or letter of
credit on behalf of, or having credit exposure resulting from a securities
borrowing or lending transaction, or derivative transaction to,</quote>;
and</text>
</paragraph><paragraph id="ID20927db1c7bb4342a955f565c5492602"><enum>(4)</enum><text>in
subsection (f)—</text>
<subparagraph id="idA6C7233BFB6E42E1B3E152999CC8D761"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="id049FBFC9BC8B4B8CA3646C682C367C53"><enum>(i)</enum><text>by
striking <quote>or order</quote>;</text>
</clause><clause id="id04B866F6C8834E52BF5FB6FAAC0C2FA0"><enum>(ii)</enum><text>by
striking <quote>if it finds</quote> and all that follows through the end of the
paragraph and inserting the following: “if—</text>
<quoted-block display-inline="no-display-inline" id="id901B89E729AB4E5ABDE391ED4235A6B0" style="OLC">
<clause id="id26BE62C152A14BEAB5A00C5A3DE4BC46"><enum>(i)</enum><text>the
Board finds the exemption to be in the public interest and consistent with the
purposes of this section, and notifies the Federal Deposit Insurance
Corporation of such finding; and</text>
</clause><clause id="id33F3CEF7A3E9481D9924BC6BA57DAD6D"><enum>(ii)</enum><text>before the end
of the 60-day period beginning on the date on which the Federal Deposit
Insurance Corporation receives notice of the finding under clause (i), the
Federal Deposit Insurance Corporation does not object, in writing, to the
finding, based on a determination that the exemption presents an unacceptable
risk to the Deposit Insurance
Fund.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="id65D2563DA1E142C482C58627A6157478"><enum>(iii)</enum><text>by
striking the Board and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id8D48EF029C66486483B74EB95A4514F5" style="OLC">
<subparagraph id="idE8E0404C542141B3A5E9DAE7479C9FB9"><enum>(A)</enum><header>In
general</header><text>The Board</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="idD082ACE821EB478B8D80AEF5A05272AF"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC166FA8BF1E747539C726F7142B016D7" style="OLC">
<subparagraph id="id65BB898679DF4D6E8137A4EDD5F77D9D"><enum>(B)</enum><header>Additional
exemptions</header>
<clause id="idC4C0BD9ABF3F4672BAD2FE04AE12C31C"><enum>(i)</enum><header>National
banks</header><text>The Comptroller of the Currency may, by order, exempt a
transaction of a national bank from the requirements of this section if—</text>
<subclause id="id5E7166B8EE6A450BB565C0024CFB0FAC"><enum>(I)</enum><text>the Board and the
Office of the Comptroller of the Currency jointly find the exemption to be in
the public interest and consistent with the purposes of this section and notify
the Federal Deposit Insurance Corporation of such finding; and</text>
</subclause><subclause id="idE541D11AC7334453B3BA701E675FD39F"><enum>(II)</enum><text>before the end
of the 60-day period beginning on the date on which the Federal Deposit
Insurance Corporation receives notice of the finding under subclause (I), the
Federal Deposit Insurance Corporation does not object, in writing, to the
finding, based on a determination that the exemption presents an unacceptable
risk to the Deposit Insurance Fund.</text>
</subclause></clause><clause id="id87AB872CC7CC41818C59E70046B561C5"><enum>(ii)</enum><header>State
banks</header><text>The Federal Deposit Insurance Corporation may, by order,
exempt a transaction of a State bank from the requirements of this section
if—</text>
<subclause id="id6D528D598CAE4FB38B8D2B112F542067"><enum>(I)</enum><text>the Board and the
Federal Deposit Insurance Corporation jointly find that the exemption is in the
public interest and consistent with the purposes of this section; and</text>
</subclause><subclause id="id326636977CAC4E6C8F6F894829D66D37"><enum>(II)</enum><text>the Federal
Deposit Insurance Corporation finds that the exemption does not present an
unacceptable risk to the Deposit Insurance
Fund.</text>
</subclause></clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id1E788714E6C345DAB9E5AABDCEA6E4B0"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4322FF1E2C0A4183BC1A4922BC3F379E" style="OLC">
<paragraph id="id9F66E136E056452B9D8756878E2A4817"><enum>(4)</enum><header>Amounts of
covered transactions</header><text>The Board may issue such regulations or
interpretations as the Board determines are necessary or appropriate with
respect to the manner in which a netting agreement may be taken into account in
determining the amount of a covered transaction between a member bank or a
subsidiary and an affiliate, including the extent to which netting agreements
between a member bank or a subsidiary and an affiliate may be taken into
account in determining whether a covered transaction is fully secured for
purposes of subsection (d)(4). An interpretation under this paragraph with
respect to a specific member bank, subsidiary, or affiliate shall be issued
jointly with the appropriate Federal banking agency for such member bank,
subsidiary, or
affiliate.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="ID6210e3263c294b87ab0f79327a544b82"><enum>(b)</enum><header>Transactions
with affiliates</header><text>Section 23B(e) of the Federal Reserve Act (12
U.S.C. 371c–1(e)) is amended—</text>
<paragraph id="idCC618C8898224D1F93A5FEC37CA840E3"><enum>(1)</enum><text>by
striking the undesignated matter following subparagraph (B);</text>
</paragraph><paragraph id="id6347831A52194E698F84EE9D62369DFF"><enum>(2)</enum><text>by
redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively,
and adjusting the clause margins accordingly;</text>
</paragraph><paragraph id="idEC7F3AD9D37145578FD38D349D36F67F"><enum>(3)</enum><text>by
redesignating paragraphs (1) and (2) as subparagraphs (A) and (B),
respectively, and adjusting the subparagraph margins accordingly;</text>
</paragraph><paragraph id="idBA53D89C33D04FD596E6E6CC8DFBAE8C"><enum>(4)</enum><text>by
striking <quote>The Board</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id894D1F22D1D843548ED17831A3319DA6" style="OLC">
<paragraph id="idA9EF90F3966C41D6A23E0D78BCE02132"><enum>(1)</enum><header>In
general</header><text>The
Board</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id354AA4324A3F4C10AC79EC036B76AC6D"><enum>(5)</enum><text>in
paragraph (1)(B), as so redesignated—</text>
<subparagraph id="id2552E7D05623465DACA7FFA267874EE3"><enum>(A)</enum><text>in the matter
preceding clause (i), by inserting before <quote>regulations</quote> the
following: <quote>subject to paragraph (2), if the Board finds that an
exemption or exclusion is in the public interest and is consistent with the
purposes of this section, and notifies the Federal Deposit Insurance
Corporation of such finding,</quote>; and</text>
</subparagraph><subparagraph id="id04A79B41E7B34A5E9C9D104F8564B541"><enum>(B)</enum><text>in clause (ii),
by striking the comma at the end and inserting a period; and</text>
</subparagraph></paragraph><paragraph id="idE4A5947C89B041AAB584AC650DD9FECA"><enum>(6)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA229F658A296472AA2FB014A9AB0076E" style="OLC">
<paragraph id="IDb92894eb9643403aa61d3b9305081ef4"><enum>(2)</enum><header>Exception</header><text>The
Board may grant an exemption or exclusion under this subsection only if, during
the 60-day period beginning on the date of receipt of notice of the finding
from the Board under paragraph (1)(B), the Federal Deposit Insurance
Corporation does not object, in writing, to such exemption or exclusion, based
on a determination that the exemption presents an unacceptable risk to the
Deposit Insurance
Fund.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id2987824BE9C6440786D51D9A91B83E25"><enum>(c)</enum><header>Home Owners'
Loan Act</header><text>Section 11 of the Home Owners' Loan Act (12 U.S.C. 1468)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFC270CE4FAEF4D3FAFCEB50215361AE7" style="OLC">
<subsection id="id79D1AF1CAE3545B69B154EDC797B9A63"><enum>(d)</enum><header>Exemptions</header>
<paragraph id="idBE81D5B79473426DA81AA2BB32922678"><enum>(1)</enum><header>Federal savings
associations</header><text>The Comptroller of the Currency may, by order,
exempt a transaction of a Federal savings association from the requirements of
this section if—</text>
<subparagraph id="id01E59945E39E4B62B7AB2637BDAB31AE"><enum>(A)</enum><text>the Board and the
Office of the Comptroller of the Currency jointly find the exemption to be in
the public interest and consistent with the purposes of this section and notify
the Federal Deposit Insurance Corporation of such finding; and</text>
</subparagraph><subparagraph id="id65D2BBE304D847C89B4666F2901F1DD0"><enum>(B)</enum><text>before the end of
the 60-day period beginning on the date on which the Federal Deposit Insurance
Corporation receives notice of the finding under subparagraph (A), the Federal
Deposit Insurance Corporation does not object, in writing, to the finding,
based on a determination that the exemption presents an unacceptable risk to
the Deposit Insurance Fund.</text>
</subparagraph></paragraph><paragraph id="id320E54FD5DBF421A95477EB61F887DC0"><enum>(2)</enum><header>State savings
association</header><text>The Federal Deposit Insurance Corporation may, by
order, exempt a transaction of a State savings association from the
requirements of this section if the Board and the Federal Deposit Insurance
Corporation jointly find that—</text>
<subparagraph id="idDC51902B16BA41E9A8E3C3A258D0F573"><enum>(A)</enum><text>the exemption is
in the public interest and consistent with the purposes of this section;
and</text>
</subparagraph><subparagraph id="id89FBE5CE5B5E4C4FBA075B081C07634B"><enum>(B)</enum><text>the exemption
does not present an unacceptable risk to the Deposit Insurance
Fund.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0780b560a1194338a711bf80adae32f4"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section commented="no" id="ID57897761c7ea46a3aa56e6331dd40a1a"><enum>609.</enum><header>Eliminating
exceptions for transactions with financial subsidiaries</header>
<subsection commented="no" id="id00AB38F87A1545B49E450223FC889D86"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 23A(e) of the Federal Reserve Act
(12 U.S.C. 371c(e)) is amended—</text>
<paragraph commented="no" id="id8F1087190F6E4D9D880C832F119C39D5"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text>
</paragraph><paragraph commented="no" id="id8964C5D106294E058BB46D9D54078EF5"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (4) as paragraph
(3).</text>
</paragraph></subsection><subsection commented="no" id="idE94D90314F8C44478EF4DACD150791BC"><enum>(b)</enum><header>Prospective
application of amendment</header><text>The amendments made by this section
shall apply with respect to any covered transaction between a bank and a
subsidiary of the bank, as those terms are defined in section 23A of the
Federal Reserve Act (12 U.S.C. 371c), that is entered into on or after the date
of enactment of this Act.</text>
</subsection><subsection commented="no" id="ID5366d53cb1304bb088e9489d9fd94602"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="ID7cd083fe909e44e6bc8d8db068f334f0"><enum>610.</enum><header>Lending limits
applicable to credit exposure on derivative transactions, repurchase
agreements, reverse repurchase agreements, and securities lending and borrowing
transactions</header>
<subsection id="idD0834A04319F4219AAB9DCF0839490F1"><enum>(a)</enum><header>National
banks</header><text display-inline="yes-display-inline">Section 5200(b) of the
Revised Statutes of the United States (12 U.S.C. 84(b)) is amended—</text>
<paragraph id="idDFA37C14524D4D12B5E50BFCB760559C"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>shall include</quote> and all that follows
through the end of the paragraph and inserting the following: “shall
include—</text>
<quoted-block display-inline="no-display-inline" id="id46A4B7ADACA04741B114E97CA29B9887" style="OLC">
<subparagraph id="ID469f3a0acaf94780a12010adf7419450"><enum>(A)</enum><text>all direct or
indirect advances of funds to a person made on the basis of any obligation of
that person to repay the funds or repayable from specific property pledged by
or on behalf of the person;</text>
</subparagraph><subparagraph id="ID2798fdda4b9041d6b88d0a4f58275e61"><enum>(B)</enum><text>to the extent
specified by the Comptroller of the Currency, any liability of a national
banking association to advance funds to or on behalf of a person pursuant to a
contractual commitment; and</text>
</subparagraph><subparagraph id="ID6d8a727870974050a159f996d3a79225"><enum>(C)</enum><text>any credit
exposure to a person arising from a derivative transaction, repurchase
agreement, reverse repurchase agreement, securities lending transaction, or
securities borrowing transaction between the national banking association and
the
person;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idDCC98A617781443E9C8B3B038C05BA34"><enum>(2)</enum><text>in
paragraph (2), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</paragraph><paragraph id="IDa1f0f1a613834a6f9959d9d0f1398a35"><enum>(3)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA0AD0EC690C14F7DA4D413149243A3AB" style="OLC">
<paragraph id="IDab813d289eda4ce4b59db08a7fde5872"><enum>(3)</enum><text>the term
<term>derivative transaction</term> includes any transaction that is a
contract, agreement, swap, warrant, note, or option that is based, in whole or
in part, on the value of, any interest in, or any quantitative measure or the
occurrence of any event relating to, one or more commodities, securities,
currencies, interest or other rates, indices, or other
assets.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id9B958326A55D49AD8EA249F1BE780124"><enum>(b)</enum><header>Savings
associations</header><text>Section 5(u)(3) of the Home Owners' Loan Act (12
U.S.C. 1464(u)(3)) is amended by striking <quote>Director</quote> each place
that term appears and inserting <quote>Comptroller of the
Currency</quote>.</text>
</subsection><subsection id="id23CC0819B7B04AC99D63D474CE59C4CD"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="ID1545dbb7f50b4506b69185db119276bc"><enum>611.</enum><header>Application of
national bank lending limits to insured State banks</header>
<subsection id="id49091B49382645CB8A7BC729F7F61867"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7548ABBCCAB74837BA7662318543559D" style="OLC">
<subsection id="ID2f65bce44dc64bd087dbe96a11eb92fe"><enum>(y)</enum><header>Application of
lending limits to insured State banks</header><text>Section 5200 of the Revised
Statutes of the United States (12 U.S.C. 84) shall apply to each insured State
bank, in the same manner and to the same extent as if the insured State bank
were a national banking
association.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id6EC9D52C08D3438084B361A851498343"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="ID7ec19f86875a4cdf87277080cfba4dc5"><enum>612.</enum><header>Restriction on
conversions of troubled banks</header>
<subsection id="ID307e97f4d1294fcf916d15be171aaf45"><enum>(a)</enum><header>Conversion of a
national banking association to a State bank</header><text>The Act entitled
<quote>An Act to provide for the conversion of national banking associations
into and their merger or consolidation with State banks, and for other
purposes.</quote> (12 U.S.C. 214 et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id14630D49B2BA474E8FA9F599111B09AF" style="OLC">
<section id="ID99a1ee59d03142848e1062a415187991"><enum>10.</enum><header>Prohibition on
conversion</header><text display-inline="no-display-inline">A national banking
association may not convert to a State bank or State savings association during
any period in which the national banking association is subject to a cease and
desist order (or other formal enforcement order) issued by, or a memorandum of
understanding entered into with, the Comptroller of the Currency with respect
to a significant supervisory
matter.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1bc03defc3cf4eec96323ae9325aa6ef"><enum>(b)</enum><header>Conversion of a
State bank to a national bank</header><text>Section 5154 of the Revised
Statutes of the United States (12 U.S.C. 35) is amended by adding at the end
the following: <quote>The Comptroller of the Currency may not approve the
conversion of a State bank or State savings association to a national banking
association during any period in which the State bank or State savings
association is subject to a cease and desist order (or other formal enforcement
order) issued by, or a memorandum of understanding entered into with, a State
bank supervisor or the appropriate Federal banking agency with respect to a
significant supervisory matter.</quote>.</text>
</subsection><subsection id="ID9b02d500c4374f1e87ab93c0d1e699ee"><enum>(c)</enum><header>Conversion of a
Federal savings association to a National or State Bank or State Savings
Association</header><text>Section 5(i) of the Home Owners' Loan Act (12 U.S.C.
1464(i)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idCC889AC0EA5142C4B42FBF953602DE67" style="OLC">
<paragraph id="IDf57eaa2784ef43e99e02e8933fd5cc15"><enum>(6)</enum><header>Limitation on
certain conversions by Federal savings associations</header><text>A Federal
savings association may not convert to a national bank or State bank or State
savings association during any period in which the Federal savings association
is subject to a cease and desist order (or other formal enforcement order)
issued by, or a memorandum of understanding entered into with, the Office of
Thrift Supervision or the Comptroller of the Currency with respect to a
significant supervisory
matter.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID480f27df56944578933ed4f9a3a98b98"><enum>613.</enum><header>De
novo branching into States</header>
<subsection id="ID2ebfae1c25524a23af98d2fa0fef14c9"><enum>(a)</enum><header>National
banks</header><text>Section 5155(g)(1)(A) of the Revised Statutes of the United
States (12 U.S.C. 36(g)(1)(A)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC6B54D32072B4975BFBC5B01EB112C4E" style="OLC">
<subparagraph id="IDb94624b2ecd04f2ba7bc07e553ac6791"><enum>(A)</enum><text>the law of the
State in which the branch is located, or is to be located, would permit
establishment of the branch, if the national bank were a State bank chartered
by such State;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2561d94e463745f1a2d7e538972c37b3"><enum>(b)</enum><header>State insured
banks</header><text>Section 18(d)(4)(A)(i) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(d)(4)(A)(i)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idDCA87204878B4533840BC498F06F153D" style="OLC">
<clause id="ID324e0648c2db49c1af4b4d0de2698f14"><enum>(i)</enum><text>the
law of the State in which the branch is located, or is to be located, would
permit establishment of the branch, if the bank were a State bank chartered by
such State;
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID4a94a5879de44d9d9724e62fae6bcce6"><enum>614.</enum><header>Lending limits
to insiders</header>
<subsection id="idF350E7F1D91248C7B10C3B7EA4C2D8CE"><enum>(a)</enum><header>Extensions of
credit</header><text display-inline="yes-display-inline">Section 22(h)(9)(D)(i)
of the Federal Reserve Act (12 U.S.C. 375b(9)(D)(i)) is amended—</text>
<paragraph id="idC20FF0ACA98F4D3D9E2DBEFE3401CE25"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting <quote>; or</quote>;</text>
</paragraph><paragraph id="idC16A5EE2A8B246B49A38BD6EC5D72B59"><enum>(2)</enum><text>by
striking <quote>a person</quote> and inserting <quote>the
person</quote>;</text>
</paragraph><paragraph id="idC576158E9539494BA4B2D35117920472"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>extends credit by
making</quote> and inserting the following: “extends credit to a person
by—</text>
<quoted-block display-inline="no-display-inline" id="idADD677E01EB146E68B7D901280133145" style="OLC">
<subclause id="id3F57AD93016A4BF786D082E930D76BFC"><enum>(I)</enum><text display-inline="yes-display-inline">making</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0E5998FDD52848269F77849358F981A1"><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="id9EA28D15B09144C4B934578D5EE409CD" style="OLC">
<subclause id="id9FF828EEF443476482F26D75420E100A"><enum>(II)</enum><text display-inline="yes-display-inline">having credit exposure to the person
arising from a derivative transaction (as defined in section 5200(b) of the
Revised Statutes of the United States (12 U.S.C. 84(b))), repurchase agreement,
reverse repurchase agreement, securities lending transaction, or securities
borrowing transaction between the member bank and the
person.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="ID7fe96e241a69414e8af732083f25c638"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="IDd17f843bd3e942d8811cd31828177ad4"><enum>615.</enum><header>Limitations on
purchases of assets from insiders</header>
<subsection id="ID4f460decf5b54de1984ba12e7ce7f18b"><enum>(a)</enum><header>Amendment to
the Federal Deposit Insurance Act</header><text>Section 18 of the Federal
Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id3E292494A91F41D691912C8FA4005FC8" style="OLC">
<subsection id="ID5fc481f0548c426a8ddda7cc56145cbd"><enum>(z)</enum><header>General
prohibition on sale of assets</header>
<paragraph id="id415BF126440745B2B2C73393F7601C8B"><enum>(1)</enum><header>In
general</header><text>An insured depository institution may not purchase an
asset from, or sell an asset to, an executive officer, director, or principal
shareholder of the insured depository institution, or any related interest of
such person (as such terms are defined in section 22(h) of Federal Reserve
Act), unless—</text>
<subparagraph id="id67F72350F9A246E6942017D2F1AD873F"><enum>(A)</enum><text>the transaction
is on market terms; and</text>
</subparagraph><subparagraph id="idD7C3587A07924FC4B91B03D96835D168"><enum>(B)</enum><text>if the
transaction represents more than 10 percent of the capital stock and surplus of
the insured depository institution, the transaction has been approved in
advance by a majority of the members of the board of directors of the insured
depository institution who do not have an interest in the transaction.</text>
</subparagraph></paragraph><paragraph id="id5FE8F9E3D7154C2A8F1BD9714C0FC01B"><enum>(2)</enum><header>Rulemaking</header><text>The
Board of Governors of the Federal Reserve System may issue such rules as may be
necessary to define terms and to carry out the purposes this subsection. Before
proposing or adopting a rule under this paragraph, the Board of Governors of
the Federal Reserve System shall consult with the Comptroller of the Currency
and the Corporation as to the terms of the
rule.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2a2365a68c494f3da8c86535399f965a"><enum>(b)</enum><header>Amendments to
the Federal reserve Act</header><text>Section 22(d) of the Federal Reserve Act
(12 U.S.C. 375) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idEDE36046504048C190A67E75F94D2345" style="OLC">
<subsection id="id990E55B75AE0436CBA1ADC32E0604EE5"><enum>(d)</enum><text>[Reserved]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id38D7328E832D436EB7288D8A1F2618B6"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="IDddc0ed396cd34861900cfa4d6c81adff"><enum>616.</enum><header>Regulations
regarding capital levels of holding companies</header>
<subsection id="idCAB8DFA6ECBC4B50872705DDB2853425"><enum>(a)</enum><header>Capital levels
of bank holding companies</header><text display-inline="yes-display-inline">Section 5(b) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1844(b)) is amended by inserting after
<quote>regulations</quote> the following: <quote>(including regulations
relating to the capital requirements of bank holding companies)</quote>.</text>
</subsection><subsection id="id799DE2DB3E3B44A4AFF28A0EFF2E8743"><enum>(b)</enum><header>Capital levels
of savings and loan holding companies</header><text>Section 10(g)(1) of the
Home Owners’ Loan Act (12 U.S.C. 1467a(g)(1)) is amended by inserting after
<quote>orders</quote> the following: <quote>(including regulations relating to
capital requirements for savings and loan holding companies)</quote>.</text>
</subsection><subsection id="id2D695588891B4AC99DE21F7E3A1E4EB9"><enum>(c)</enum><header>Source of
strength</header><text>The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended by inserting after section 38 (12 U.S.C. 1831o) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id03C0D25D7D434F328D8FA0450AB48BA9" style="OLC">
<section id="id8E7E73F89E8544C088A768CB126DA8DD"><enum>38A.</enum><header>Source of
strength</header>
<subsection id="IDdbbcead27c744ce5a8d82a2b7c9b4f1b"><enum>(a)</enum><header>Holding
companies</header><text>The appropriate Federal banking agency for a bank
holding company or savings and loan holding company shall require the bank
holding company or savings and loan holding company to serve as a source of
financial strength for any subsidiary of the bank holding company or savings
and loan holding company that is a depository institution.</text>
</subsection><subsection id="idAA0016A3F9A740D9A8B8CE74B5900128"><enum>(b)</enum><header>Other
companies</header><text>If an insured depository institution is not the
subsidiary of a bank holding company or savings and loan holding company, the
appropriate Federal banking agency for the insured depository institution shall
require any company that directly or indirectly controls the insured depository
institution to serve as a source of financial strength for such
institution.</text>
</subsection><subsection id="ID349b3d59208441c0ab1952fa78ccd337"><enum>(c)</enum><header>Reports</header><text>The
appropriate Federal banking agency for an insured depository institution
described in subsection (b) may, from time to time, require the company, or a
company that directly or indirectly controls the insured depository institution
to submit a report, under oath, for the purposes of—</text>
<paragraph id="id7952AB640B804F5EA7F6DA451BF9DB07"><enum>(1)</enum><text>assessing the
ability of such company to comply with the requirement under subsection (b);
and</text>
</paragraph><paragraph id="id61B271D204014A35832DB9064C291408"><enum>(2)</enum><text>enforcing the
compliance of such company with the requirement under subsection (b).</text>
</paragraph></subsection><subsection id="idA5F373C34D98471D8DDC4641685C8026"><enum>(d)</enum><header>Rules</header><text>Not
later than 1 year after the transfer date, as defined in section 311 of the
Enhancing Financial Institution Safety and Soundness Act of 2010, the
appropriate Federal banking agencies shall jointly issue final rules to carry
out this section.</text>
</subsection><subsection id="id8CC071DA6F1F4028ADF71414D1BE602A"><enum>(e)</enum><header>Definition</header><text>In
this section, the term <term>source of financial strength</term> means the
ability of a company that directly or indirectly owns or controls an insured
depository institution to provide financial assistance to such insured
depository institution in the event of the financial distress of the insured
depository
institution.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7A0E253F31A04085B62E8B78A5180899"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="id09A3F04F80144D16AFFA442FEE9EF0E9"><enum>617.</enum><header>Elimination of
elective investment bank holding company framework</header>
<subsection id="idBE08EC7AA1CF4B67B2091E2832898FD3"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 17 of the Securities Exchange Act
of 1934 (15 U.S.C. 78q) is amended—</text>
<paragraph id="id83011AEC6E0B44F6AAB00BE8054E883C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (i); and</text>
</paragraph><paragraph id="id4D0021F36EBF4D26A5E4CBE06975B214"><enum>(2)</enum><text>by
redesignating subsections (j) and (k) as subsections (i) and (j),
respectively.</text>
</paragraph></subsection><subsection id="id776CA4D5CEA749978C9BA74E1048C6C2"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="idE4CA779A6A6B42418655E95F76629880"><enum>618.</enum><header>Securities
holding companies</header>
<subsection id="id268CFA1922D74459894C26B5345DF654"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="id4CB4D793CD34479092838204847AB9DB"><enum>(1)</enum><text>the
term <term>associated person of a securities holding company </term> means a
person directly or indirectly controlling, controlled by, or under common
control with, a securities holding company;</text>
</paragraph><paragraph id="id020E57517A2B41729217AE27163070D2"><enum>(2)</enum><text>the
term <term>foreign bank</term> has the same meaning as in section 1(b)(7) of
the International Banking Act of 1978 (12 U.S.C. 3101(b)(7));</text>
</paragraph><paragraph id="id1BBCCF081CA147B5908079CE9445B1B7"><enum>(3)</enum><text>the
term <term>insured bank</term> has the same meaning as in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813);</text>
</paragraph><paragraph id="id8E313E3C1BAB41F6A81E65513B816551"><enum>(4)</enum><text>the
term <term>securities holding company</term>—</text>
<subparagraph id="idBAC62FA8FEE84C09A5B9DA740CC399DE"><enum>(A)</enum><text>means—</text>
<clause id="id2A2A6133D4E740BD8D110D9F4F97E832"><enum>(i)</enum><text>a
person (other than a natural person) that owns or controls 1 or more brokers or
dealers registered with the Commission; and</text>
</clause><clause id="idF05F1A80312F4F4EA6B0E4153976F03D"><enum>(ii)</enum><text>the
associated persons of a person described in clause (i); and</text>
</clause></subparagraph><subparagraph id="id6F0E8915B82D40BDBE416BB391F0D0BD"><enum>(B)</enum><text>does not include
a person that is—</text>
<clause commented="no" id="id5C83B0746EBD42DF908AB8ABC168CD36"><enum>(i)</enum><text>a nonbank
financial company supervised by the Board under title I;</text>
</clause><clause id="id65562B645C0444969E6D1E79CF3D7BA3"><enum>(ii)</enum><text>an
affiliate of an insured bank (other than an institution described in
subparagraphs (D), (F), or (H) of section 2(c)(2) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(c)(2)) or an affiliate of a savings
association;</text>
</clause><clause id="idE4978568EDA44233B79026E8E01F1E92"><enum>(iii)</enum><text>a
foreign bank, foreign company, or company that is described in section 8(a) of
the International Banking Act of 1978 (12 U.S.C. 3106(a));</text>
</clause><clause id="idBD37055353A04B1BBAC95ED52A5BC62F"><enum>(iv)</enum><text>a
foreign bank that controls, directly or indirectly, a corporation chartered
under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.); or</text>
</clause><clause id="id2B41FBA07CB1403EA467CA836F3EEEDF"><enum>(v)</enum><text>subject
to comprehensive consolidated supervision by a foreign regulator;</text>
</clause></subparagraph></paragraph><paragraph id="id7D901B1380614F708E7D637734101CE4"><enum>(5)</enum><text>the
term <term>supervised securities holding company</term> means a securities
holding company that is supervised by the Board of Governors under this
section; and</text>
</paragraph><paragraph id="id23A3345FE32347839D02974FA2C01A3B"><enum>(6)</enum><text>the
terms <term>affiliate</term>, <term>bank</term>, <term>bank holding
company</term>, <term>company</term>, <term>control</term>, <term>savings
association</term>, and <term>subsidiary</term> have the same meanings as in
section 2 of the Bank Holding Company Act of 1956.</text>
</paragraph></subsection><subsection id="id8750A9E10F234697AB919233FFF032A9"><enum>(b)</enum><header>Supervision of
a Securities Holding Company Not Having a Bank or Savings Association
Affiliate</header>
<paragraph id="id01ADE998FC7B4183AC9F38B8705CAD78"><enum>(1)</enum><header>In
general</header><text>A securities holding company that is required by a
foreign regulator or provision of foreign law to be subject to comprehensive
consolidated supervision may register with the Board of Governors under
paragraph (2) to become a supervised securities holding company. Any securities
holding company filing such a registration shall be supervised in accordance
with this section, and shall comply with the rules and orders prescribed by the
Board of Governors applicable to supervised securities holding
companies.</text>
</paragraph><paragraph id="id365A05F7312F404E9E44FEAFF7BB3103"><enum>(2)</enum><header>Registration as
a supervised securities holding company</header>
<subparagraph id="idE79ED2A6967E40B9ADD1D5C627DEA3CE"><enum>(A)</enum><header>Registration</header><text>A
securities holding company that elects to be subject to comprehensive
consolidated supervision shall register by filing with the Board of Governors
such information and documents as the Board of Governors, by regulation, may
prescribe as necessary or appropriate in furtherance of the purposes of this
section.</text>
</subparagraph><subparagraph id="id2EA89F833E1F46A3A86E727FF55E29E8"><enum>(B)</enum><header>Effective
date</header><text>A securities holding company that registers under
subparagraph (A) shall be deemed to be a supervised securities holding company,
effective on the date that is 45 days after the date of receipt of the
registration information and documents under subparagraph (A) by the Board of
Governors, or within such shorter period as the Board of Governors, by rule or
order, may determine.</text>
</subparagraph></paragraph></subsection><subsection id="id14297259DCFD417F8163C6F46AB33CB6"><enum>(c)</enum><header>Supervision of
securities holding companies</header>
<paragraph id="idB0AECE64DBBC4758898423F8455237C3"><enum>(1)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="id3B8338F0FEE84343B5E5C495F9BD3C85"><enum>(A)</enum><header>Recordkeeping
and reporting required</header><text>Each supervised securities holding company
and each affiliate of a supervised securities holding company shall make and
keep for periods determined by the Board of Governors such records, furnish
copies of such records, and make such reports, as the Board of Governors
determines to be necessary or appropriate to carry out this section, to prevent
evasions thereof, and to monitor compliance by the supervised securities
holding company or affiliate with applicable provisions of law.</text>
</subparagraph><subparagraph id="idCF7A3E2D289D4FB19FB1EF622B3A8143"><enum>(B)</enum><header>Form and
contents</header>
<clause id="idF3F2CE807E1B41B4A26EA3988313CA4A"><enum>(i)</enum><header>In
general</header><text>Any record or report required to be made, furnished, or
kept under this paragraph shall—</text>
<subclause id="idB1A3C4466E654CED932B4E9AEE636CB2"><enum>(I)</enum><text>be
prepared in such form and according to such specifications (including
certification by a registered public accounting firm), as the Board of
Governors may require; and</text>
</subclause><subclause id="id9FEFE1089EC341C09C0D094C1BFCFFB5"><enum>(II)</enum><text>be
provided promptly to the Board of Governors at any time, upon request by the
Board of Governors.</text>
</subclause></clause><clause id="id416263F50D5940AA9372C409056A68F3"><enum>(ii)</enum><header>Contents</header><text>Records
and reports required to be made, furnished, or kept under this paragraph may
include—</text>
<subclause id="id9CC16AB71CB24610AECA652D4EFCF392"><enum>(I)</enum><text>a
balance sheet or income statement of the supervised securities holding company
or an affiliate of a supervised securities holding company;</text>
</subclause><subclause id="id1C02BBD04522496BB9FE4DBDC9B52E37"><enum>(II)</enum><text>an
assessment of the consolidated capital and liquidity of the supervised
securities holding company;</text>
</subclause><subclause id="idD497402ECBB3435DA2654CD83BB21E33"><enum>(III)</enum><text>a
report by an independent auditor attesting to the compliance of the supervised
securities holding company with the internal risk management and internal
control objectives of the supervised securities holding company; and</text>
</subclause><subclause id="idBBF7EE477AEE46DEA126B337673C0878"><enum>(IV)</enum><text>a
report concerning the extent to which the supervised securities holding company
or affiliate has complied with the provisions of this section and any
regulations prescribed and orders issued under this section.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id82C23FE869C749AF9A6432D5687FEC91"><enum>(2)</enum><header>Use of existing
reports</header>
<subparagraph id="idBCFFFC2C43784407BADC6B48B0631A97"><enum>(A)</enum><header>In
general</header><text>The Board of Governors shall, to the fullest extent
possible, accept reports in fulfillment of the requirements of this paragraph
that a supervised securities holding company or an affiliate of a supervised
securities holding company has been required to provide to another regulatory
agency or a self-regulatory organization.</text>
</subparagraph><subparagraph id="idB88AB498C60F45E584C57818FFD84A36"><enum>(B)</enum><header>Availability</header><text>A
supervised securities holding company or an affiliate of a supervised
securities holding company shall promptly provide to the Board of Governors, at
the request of the Board of Governors, any report described in subparagraph
(A), as permitted by law.</text>
</subparagraph></paragraph><paragraph id="id662C4636BC5C4F7782AD6C6313B3CB87"><enum>(3)</enum><header>Examination
authority</header>
<subparagraph id="idD24163DF6B724BFD85EFD7A42ABF4B77"><enum>(A)</enum><header>Focus of
examination authority</header><text>The Board of Governors may make
examinations of any supervised securities holding company and any affiliate of
a supervised securities holding company to carry out this subsection, to
prevent evasions thereof, and to monitor compliance by the supervised
securities holding company or affiliate with applicable provisions of
law.</text>
</subparagraph><subparagraph id="id7DE61430E4594C789AA82BF0B998D5BA"><enum>(B)</enum><header>Deference to
other examinations</header><text>For purposes of this subparagraph, the Board
of Governors shall, to the fullest extent possible, use the reports of
examination made by other appropriate Federal or State regulatory authorities
with respect to any functionally regulated subsidiary or any institution
described in subparagraph (D), (F), or (H) of section 2(c)(2) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)).</text>
</subparagraph></paragraph></subsection><subsection id="idE406023F4F324954B35BE89E1FFCF202"><enum>(d)</enum><header>Capital and
risk management</header>
<paragraph id="id3174942C7B16406A938285A993D3E121"><enum>(1)</enum><header>In
general</header><text>The Board of Governors shall, by regulation or order,
prescribe capital adequacy and other risk management standards for supervised
securities holding companies that are appropriate to protect the safety and
soundness of the supervised securities holding companies and address the risks
posed to financial stability by supervised securities holding companies.</text>
</paragraph><paragraph id="id286FA00D3C8B497C897AB84B9BCB5E1E"><enum>(2)</enum><header>Differentiation</header><text>In
imposing standards under this subsection, the Board of Governors may
differentiate among supervised securities holding companies on an individual
basis, or by category, taking into consideration the requirements under
paragraph (3).</text>
</paragraph><paragraph id="idD2DB222D8C0946F1B0161CA79914EAE3"><enum>(3)</enum><header>Content</header><text>Any
standards imposed on a supervised securities holding company under this
subsection shall take into account—</text>
<subparagraph id="id4E5C21D036DA41BF9DF34A0975B300EB"><enum>(A)</enum><text>the differences
among types of business activities carried out by the supervised securities
holding company;</text>
</subparagraph><subparagraph id="idB2F18C4CF88148DD80272DB77C5C9FE6"><enum>(B)</enum><text>the amount and
nature of the financial assets of the supervised securities holding
company;</text>
</subparagraph><subparagraph id="idD0D815C4CE874960A05E4BF74993BB28"><enum>(C)</enum><text>the amount and
nature of the liabilities of the supervised securities holding company,
including the degree of reliance on short-term funding;</text>
</subparagraph><subparagraph id="idCEE81CB666F645989F7ECD7FF3C31EAC"><enum>(D)</enum><text>the extent and
nature of the off-balance sheet exposures of the supervised securities holding
company;</text>
</subparagraph><subparagraph id="id653FF5445000412C9F386BF76DAE7773"><enum>(E)</enum><text>the extent and
nature of the transactions and relationships of the supervised securities
holding company with other financial companies;</text>
</subparagraph><subparagraph id="idDF7A105A7A414BB3972C587CABB6C9AE"><enum>(F)</enum><text>the importance of
the supervised securities holding company as a source of credit for households,
businesses, and State and local governments, and as a source of liquidity for
the financial system; and</text>
</subparagraph><subparagraph id="idDE7FDA47FBE1443589BF343AC045CD00"><enum>(G)</enum><text>the nature,
scope, and mix of the activities of the supervised securities holding
company.</text>
</subparagraph></paragraph><paragraph id="id313E62A72F2A4E5EBDED833E4FA88D94"><enum>(4)</enum><header>Notice</header><text>A
capital requirement imposed under this subsection may not take effect earlier
than 180 days after the date on which a supervised securities holding company
is provided notice of the capital requirement.</text>
</paragraph></subsection><subsection id="idDD7F6C958751493AB4F2C8C5BF2E16B1"><enum>(e)</enum><header>Exception for
banks</header><text>No bank shall be subject to any of the requirements set
forth in subsections (c) and (d).</text>
</subsection><subsection id="id45AF2BB5F6E643A294368A337459535E"><enum>(f)</enum><header>Other
provisions of law applicable to supervised securities holding
companies</header>
<paragraph id="idF0E2707099D743C08BAF644FBDDAA65C"><enum>(1)</enum><header>Federal Deposit
Insurance Act</header><text>Subsections (b), (c) through (s), and (u) of
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) shall apply to
any supervised securities holding company, and to any subsidiary (other than a
bank or an institution described in subparagraph (D), (F), or (H) of section
2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) of a
supervised securities holding company, in the same manner as such subsections
apply to a bank holding company for which the Board of Governors is the
appropriate Federal banking agency. For purposes of applying such subsections
to a supervised securities holding company or a subsidiary (other than a bank
or an institution described in subparagraph (D), (F), or (H) of section 2(c)(2)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) of a supervised
securities holding company, the Board of Governors shall be deemed the
appropriate Federal banking agency for the supervised securities holding
company or subsidiary.</text>
</paragraph><paragraph id="idDD248E85EB9C487996CEF209B827863D"><enum>(2)</enum><header>Bank Holding
Company Act of 1956</header><text>Except as the Board of Governors may
otherwise provide by regulation or order, a supervised securities holding
company shall be subject to the provisions of the Bank Holding Company Act of
1956 (12 U.S.C. 1841 et seq.) in the same manner and to the same extent a bank
holding company is subject to such provisions, except that a supervised
securities holding company may not, by reason of this paragraph, be deemed to
be a bank holding company for purposes of section 4 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843).</text>
</paragraph></subsection></section><section id="idE45A7B6C52ED4718868D1192C52BE5CA"><enum>619.</enum><header>Restrictions
on capital market activity by banks and bank holding companies</header>
<subsection id="id2B09675E45D44276B7A30E4E8A69E9D3"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="idA259E62F81134045B8E03540668C04A6"><enum>(1)</enum><text>the
terms <term>hedge fund</term> and <term>private equity fund</term> mean a
company or other entity that is exempt from registration as an investment
company pursuant to section 3(c)(1) or 3(c)(7) of the Investment Company Act of
1940 (15 U.S.C. 80a-3(c)(1) or 80a-3(c)(7)), or a similar fund, as jointly
determined by the appropriate Federal banking agencies;</text>
</paragraph><paragraph id="idF184EF5A27224DA7B3F6D4EC6F8539CD"><enum>(2)</enum><text>the
term <term>proprietary trading</term>—</text>
<subparagraph id="idBB1B7553D385445FAFBCC9EB5661FF07"><enum>(A)</enum><text>means purchasing
or selling, or otherwise acquiring or disposing of, stocks, bonds, options,
commodities, derivatives, or other financial instruments by an insured
depository institution, a company that controls, directly or indirectly, an
insured depository institution or is treated as a bank holding company for
purposes of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), and
any subsidiary of such institution or company, for the trading book (or such
other portfolio as the Federal banking agencies may determine) of such
institution, company, or subsidiary; and</text>
</subparagraph><subparagraph id="idCECD9A1831CE481285271317616898E8"><enum>(B)</enum><text>subject to such
restrictions as the Federal banking agencies may determine, does not include
purchasing or selling, or otherwise acquiring or disposing of, stocks, bonds,
options, commodities, derivatives, or other financial instruments on behalf of
a customer, as part of market making activities, or otherwise in connection
with or in facilitation of customer relationships, including risk-mitigating
hedging activities related to such a purchase, sale, acquisition, or disposal;
and</text>
</subparagraph></paragraph><paragraph id="id588F002305324EC3B7DF3976529CE666"><enum>(3)</enum><text>the
term <term>sponsoring</term>, when used with respect to a hedge fund or private
equity fund, means—</text>
<subparagraph id="id18F88618D319455DBB3EBA8E9E44A178"><enum>(A)</enum><text>serving as a
general partner, managing member, or trustee of the fund;</text>
</subparagraph><subparagraph id="idE6F9EFA9AB67444FB7F02E1171304941"><enum>(B)</enum><text>in any manner
selecting or controlling (or having employees, officers, directors, or agents
who constitute) a majority of the directors, trustees, or management of the
fund; or</text>
</subparagraph><subparagraph id="id06C307EC72EB4E8A8C86CE571C13269B"><enum>(C)</enum><text>sharing with the
fund, for corporate, marketing, promotional, or other purposes, the same name
or a variation of the same name.</text>
</subparagraph></paragraph></subsection><subsection id="idB5E3A3D497D2466B8697B6A5CBBD059D"><enum>(b)</enum><header>Prohibition on
proprietary trading</header>
<paragraph id="id61AFE861F47B4F7094ABFBBAEF0A5304"><enum>(1)</enum><header>In
general</header><text>Subject to the recommendations and modifications of the
Council under subsection (g), and except as provided in paragraph (2) or (3),
the appropriate Federal banking agencies shall, through a rulemaking under
subsection (g), jointly prohibit proprietary trading by an insured depository
institution, a company that controls, directly or indirectly, an insured
depository institution or is treated as a bank holding company for purposes of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), and any
subsidiary of such institution or company.</text>
</paragraph><paragraph id="id9CBC12C364A143929B6871F22D8851D1"><enum>(2)</enum><header>Excepted
obligations</header>
<subparagraph id="id96A6AFFE520F4624820B983CF2159D79"><enum>(A)</enum><header>In
general</header><text>The prohibition under this subsection shall not apply
with respect to an investment that is otherwise authorized by Federal law
in—</text>
<clause id="id59A299BBFEFF48DAA4D75266E9DAED64"><enum>(i)</enum><text>obligations of
the United States or any agency of the United States, including obligations
fully guaranteed as to principal and interest by the United States or an agency
of the United States;</text>
</clause><clause id="id6B6C61FEEE8D4DE8B29BBC300D5F6E08"><enum>(ii)</enum><text>obligations,
participations, or other instruments of, or issued by, the Government National
Mortgage Association, the Federal National Mortgage Association, or the Federal
Home Loan Mortgage Corporation, including obligations fully guaranteed as to
principal and interest by such entities; and</text>
</clause><clause id="idD92452F53C5C4E1F906D5C0C046240C6"><enum>(iii)</enum><text>obligations of
any State or any political subdivision of a State.</text>
</clause></subparagraph><subparagraph id="idFA90934835C44C8F92A8CC0EC6138885"><enum>(B)</enum><header>Conditions</header><text>The
appropriate Federal banking agencies may impose conditions on the conduct of
investments described in subparagraph (A).</text>
</subparagraph><subparagraph id="id0A8871993EA94B708FACCD0E74ADD30B"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in subparagraph (A) may be construed to
grant any authority to any person that is not otherwise provided in Federal
law.</text>
</subparagraph></paragraph><paragraph id="id00E8797CB5B24CD08D8117F93B3554B9"><enum>(3)</enum><header>Foreign
activities</header><text>An investment or activity conducted by a company
pursuant to paragraph (9) or (13) of section 4(c) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(c)) solely outside of the United States shall not
be subject to the prohibition under paragraph (1), provided that the company is
not directly or indirectly controlled by a company that is organized under the
laws of the United States or of a State.</text>
</paragraph></subsection><subsection id="idBF6CEAE70FF345B4A90AA221878C06E2"><enum>(c)</enum><header>Prohibition on
sponsoring and investing in hedge funds and private equity funds</header>
<paragraph id="idA01F3B6CEDAD4F16BE24B441C4854E56"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), and subject to the
recommendations and modifications of the Council under subsection (g), the
appropriate Federal banking agencies shall, through a rulemaking under
subsection (g), jointly prohibit an insured depository institution, a company
that controls, directly or indirectly, an insured depository institution or is
treated as a bank holding company for purposes of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841 et seq.), or any subsidiary of such institution or
company, from sponsoring or investing in a hedge fund or a private equity
fund.</text>
</paragraph><paragraph id="id54306F7C370A40B9A51EA5CF2CCC2A2E"><enum>(2)</enum><header>Application to
foreign activities of foreign firms</header><text>An investment or activity
conducted by a company pursuant to paragraph (9) or (13) of section 4(c) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)) solely outside of the
United States shall not be subject to the prohibitions and restrictions under
paragraph (1), provided that the company is not directly or indirectly
controlled by a company that is organized under the laws of the United States
or of a State.</text>
</paragraph></subsection><subsection id="idAB4296EAE06E43F0A220E1F73D948C61"><enum>(d)</enum><header>Investments in
small business investment companies and investments designed to promote the
public welfare</header>
<paragraph id="id2BD28188AE9345DE934FC4B4A57118A8"><enum>(1)</enum><header>In
general</header><text>A prohibition imposed by the appropriate Federal banking
agencies under subsection (c) shall not apply with respect an investment
otherwise authorized under Federal law that is—</text>
<subparagraph id="id06A027755F974767A29C9D91E6E6A9B7"><enum>(A)</enum><text>an investment in
a small business investment company, as that term is defined in section 103 of
the Small Business Investment Act of 1958 (15 U.S.C. 662); or</text>
</subparagraph><subparagraph id="idF9984AA6482440BEAAF4A43DB2C68169"><enum>(B)</enum><text>designed
primarily to promote the public welfare, as provided in the 11th paragraph of
section 5136 of the Revised Statutes (12 U.S.C. 24).</text>
</subparagraph></paragraph><paragraph id="id79C19EC1049840EDB4A4E4256C99FF3A"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in paragraph (1) may be construed to grant
any authority to any person that is not otherwise provided in Federal
law.</text>
</paragraph></subsection><subsection id="idFDA1F9A94B2E4F619D0988D192318EF8"><enum>(e)</enum><header>Limitations on
relationships with hedge funds and private equity funds</header>
<paragraph id="id65AC16BAD21A40DD84A58EA640825950"><enum>(1)</enum><header>Covered
transactions</header><text>An insured depository institution, a company that
controls, directly or indirectly, an insured depository institution or is
treated as a bank holding company for purposes of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841 et seq.), and any subsidiary of such institution or
company that serves, directly or indirectly, as the investment manager or
investment adviser to a hedge fund or private equity fund may not enter into a
covered transaction, as defined in section 23A of the Federal Reserve Act (12
U.S.C. 371c) with such hedge fund or private equity fund.</text>
</paragraph><paragraph id="id23506AFFC0BE4872A7DFB00021EDB4B9"><enum>(2)</enum><header>Affiliation</header><text>An
insured depository institution, a company that controls, directly or
indirectly, an insured depository institution or is treated as a bank holding
company for purposes of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.), and any subsidiary of such institution or company that serves, directly
or indirectly, as the investment manager or investment adviser to a hedge fund
or private equity fund shall be subject to section 23B of the Federal Reserve
Act (12 U.S.C. 371c-1) as if such institution, company, or subsidiary were a
member bank and such hedge fund or private equity fund were an
affiliate.</text>
</paragraph></subsection><subsection id="id22FF06CA74F345BA884DDB0D1B2EF387"><enum>(f)</enum><header>Capital and
quantitative limitations for certain nonbank financial companies</header>
<paragraph id="id9C4247137CE94248930EBA768F673ADD"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), and subject to the
recommendations and modifications of the Council under subsection (g), the
Board of Governors shall adopt rules imposing additional capital requirements
and specifying additional quantitative limits for nonbank financial companies
supervised by the Board of Governors under section 113 that engage in
proprietary trading or sponsoring and investing in hedge funds and private
equity funds.</text>
</paragraph><paragraph id="idC8467D11AC52456CB293D2A870C64A72"><enum>(2)</enum><header>Exceptions</header><text>The
rules under this subsection shall not apply with respect to the trading of an
investment that is otherwise authorized by Federal law—</text>
<subparagraph id="ID0dd6dd30e12d46789fabe7aa1e45d0de"><enum>(A)</enum><text>in obligations of
the United States or any agency of the United States, including obligations
fully guaranteed as to principal and interest by the United States or an agency
of the United States;</text>
</subparagraph><subparagraph id="ID0c00dcbf887743f4a5408641755c9ee6"><enum>(B)</enum><text>in obligations,
participations, or other instruments of, or issued by, the Government National
Mortgage Association, the Federal National Mortgage Association, or the Federal
Home Loan Mortgage Corporation, including obligations fully guaranteed as to
principal and interest by such entities;</text>
</subparagraph><subparagraph id="IDc3ac0cf227404bff8dd48b1a92ab083e"><enum>(C)</enum><text>in obligations of
any State or any political subdivision of a State;</text>
</subparagraph><subparagraph id="idE38B89E960C64A81B6A6A6CD79CCB953"><enum>(D)</enum><text>in a small
business investment company, as that term is defined in section 103 of the
Small Business Investment Act of 1958 (15 U.S.C. 662); or</text>
</subparagraph><subparagraph id="idED5B3F84EA734DE098D2746765C9C45A"><enum>(E)</enum><text>that is designed
primarily to promote the public welfare, as provided in the 11th paragraph of
section 5136 of the Revised Statutes (12 U.S.C. 24).</text>
</subparagraph></paragraph></subsection><subsection id="id06A24EB7A2AD45C3B5F762DBC5134CF2"><enum>(g)</enum><header>Council study
and rulemaking</header>
<paragraph id="idC95ED362B0D74BD6A985ACFB9E930C7C"><enum>(1)</enum><header>Study and
recommendations</header><text>Not later than 6 months after the date of
enactment of this Act, the Council—</text>
<subparagraph id="id2A1BE0D0397E4D94BCBCF923C72EF7AD"><enum>(A)</enum><text>shall complete a
study of the definitions under subsection (a) and the other provisions under
subsections (b) through (f), to assess the extent to which the definitions
under subsection (a) and the implementation of subsections (a) through (f)
would—</text>
<clause id="IDc809f218097d41edae59aa2435af501b"><enum>(i)</enum><text>promote
and enhance the safety and soundness of depository institutions and the
affiliates of depository institutions;</text>
</clause><clause id="ID54995cbdf3f140da86b2b1e3830263a8"><enum>(ii)</enum><text>protect
taxpayers and enhance financial stability by minimizing the risk that
depository institutions and the affiliates of depository institutions will
engage in unsafe and unsound activities;</text>
</clause><clause id="ID5e53c9ac9b76446f83dbd911c8cc9eb0"><enum>(iii)</enum><text>limit
the inappropriate transfer of Federal subsidies from institutions that benefit
from deposit insurance and liquidity facilities of the Federal Government to
unregulated entities;</text>
</clause><clause id="ID1b4c6ba3d9b64166bccde9e2fd734e48"><enum>(iv)</enum><text>reduce
inappropriate conflicts of interest between the self-interest of depository
institutions, affiliates of depository institutions, and financial companies
supervised by the Board, and the interests of the customers of such
institutions and companies;</text>
</clause><clause id="id606DADF278694D1E8522571450F3BA5D"><enum>(v)</enum><text>raise
the cost of credit or other financial services, reduce the availability of
credit or other financial services, or impose other costs on households and
businesses in the United States;</text>
</clause><clause id="id623B3BE7498849E2AA58AA3FEB9E5FC0"><enum>(vi)</enum><text>limit
activities that have caused undue risk or loss in depository institutions,
affiliates of depository institutions, and financial companies supervised by
the Board of Governors, or that might reasonably be expected to create undue
risk or loss in such institutions, affiliates, and companies; and</text>
</clause><clause id="idD32E9A3812404EBAB471A5C8D8F8E37E"><enum>(vii)</enum><text>appropriately
accommodates the business of insurance within an insurance company subject to
regulation in accordance with State insurance company investment laws;</text>
</clause></subparagraph><subparagraph id="idAF1368751D0142E4A1B8FDF9691F97E3"><enum>(B)</enum><text>shall make
recommendations regarding the definitions under subsection (a) and the
implementation of other provisions under subsections (b) through (f), including
any modifications to the definitions, prohibitions, requirements, and
limitations contained therein that the Council determines would more
effectively implement the purposes of this section; and</text>
</subparagraph><subparagraph id="id0C74FDEDABE140BF8829774CE706A10C"><enum>(C)</enum><text>may make
recommendations for prohibiting the conduct of the activities described in
subsections (b) and (c) above a specific threshold amount and imposing
additional capital requirements on activities conducted below such threshold
amount.</text>
</subparagraph></paragraph><paragraph id="idEE8A237BA95448B7AC9D5C8D2FC387E3"><enum>(2)</enum><header>Rulemaking</header><text>Not
earlier than the date of completion of the study required under paragraph (1),
and not later than 9 months after the date of completion of such study—</text>
<subparagraph id="id7CEDA350428545778F99383223467837"><enum>(A)</enum><text>the appropriate
Federal banking agencies shall jointly issue final regulations implementing
subsections (b) through (e), which shall reflect any recommendations or
modifications made by the Council pursuant to paragraph (1)(B); and</text>
</subparagraph><subparagraph id="id7E52CDFB025A4D988EDCF64BB1191A41"><enum>(B)</enum><text>the Board of
Governors shall issue final regulations implementing subsection (f), which
shall reflect any recommendations or modifications made by the Council pursuant
to paragraph (1)(B).</text>
</subparagraph></paragraph></subsection><subsection id="id6AA516A707BA40CCA25AACCA10F9A5F9"><enum>(h)</enum><header>Transition</header>
<paragraph id="id1A28207659F34BD59CB2441BF90D9202"><enum>(1)</enum><header>In
general</header><text>The final regulations issued by the appropriate Federal
banking agencies and the Board of Governors under subsection (g)(2) shall
provide that, effective 2 years after the date on which such final regulations
are issued, no insured depository institution, company that controls, directly
or indirectly, an insured depository institution, company that is treated as a
bank holding company for purposes of the Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.), or subsidiary of such institution or company, may retain
any investment or relationship prohibited under such regulations.</text>
</paragraph><paragraph id="id0976B840DCD148A5A704B0BAD236914A"><enum>(2)</enum><header>Extension</header>
<subparagraph id="id00EB19654556464A99F6CA9E52619DC1"><enum>(A)</enum><header>In
general</header><text>The appropriate Federal banking agency for an insured
depository institution or a company described in paragraph (1) may, upon the
application of any such company, extend the 2-year period under paragraph (1)
with respect to such company, if the appropriate Federal banking agency
determines that an extension would not be detrimental to the public
interest.</text>
</subparagraph><subparagraph id="id2F7BAC0890404B2497998DCCE5AAB3E1"><enum>(B)</enum><header>Time period for
extension</header><text>An extension granted under subparagraph (A) may not
exceed—</text>
<clause id="id815A67449E75456F86CE418764A63E05"><enum>(i)</enum><text>1 year
for each determination made by the appropriate Federal banking agency under
subparagraph (A); and</text>
</clause><clause id="id161FA999F4A44C95B6AF72293B3744DA"><enum>(ii)</enum><text>a
total of 3 years with respect to any 1 company.</text>
</clause></subparagraph></paragraph></subsection></section><section id="idFA28D08378A246BD9B7C68DFFA1B7000"><enum>620.</enum><header>Concentration
limits on large financial firms</header><text display-inline="no-display-inline">The Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id096352846D624DCFA4041946E4BC9B56" style="OLC">
<section id="id23DAFE480E6C4A7C95EB1E90F99055A3"><enum>13.</enum><header>Concentration
limits on large financial firms</header>
<subsection id="id04F2AAAB2FD7445AB8F2360881CCF8FB"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="id32D6AF37E3B0467180B445710CC4BB8F"><enum>(1)</enum><text>the term
<term>Council</term> means the Financial Stability Oversight Council;</text>
</paragraph><paragraph id="id5D7E26D39F8F47E79278EC4F68129AB5"><enum>(2)</enum><text>the term
<term>financial company</term> means—</text>
<subparagraph id="id14276EFE78E14F1EB12C33319A9021BA"><enum>(A)</enum><text>an insured
depository institution;</text>
</subparagraph><subparagraph id="id4C60E488785C4016BD6E113119B031CE"><enum>(B)</enum><text>a bank holding
company;</text>
</subparagraph><subparagraph id="idE46158466C47425BB6F1D75CA33A4EBC"><enum>(C)</enum><text>a savings and
loan holding company;</text>
</subparagraph><subparagraph id="id3ACE149416DA42C8AB50DFD549391361"><enum>(D)</enum><text>a company that
controls an insured depository institution;</text>
</subparagraph><subparagraph id="idCC53262789894EEB89813DE4DB5AA0EC"><enum>(E)</enum><text>a nonbank
financial company supervised by the Board under title I of the Restoring
American Financial Stability Act of 2010; and</text>
</subparagraph><subparagraph id="idEC47D1052641457AAB1DAE53D3C92EB7"><enum>(F)</enum><text>a foreign bank or
company that is treated as a bank holding company for purposes of this Act;
and</text>
</subparagraph></paragraph><paragraph id="idE37E037A11E94262BD8AEE8FD24F7AC1"><enum>(3)</enum><text>the term
<term>liabilities</term> means—</text>
<subparagraph id="id5A19902C9719477EB75F585115920333"><enum>(A)</enum><text>with respect to a
United States financial company—</text>
<clause id="id1B00450675384644B39FE1964629AD58"><enum>(i)</enum><text>the
total risk-weighted assets of the financial company, as determined under the
risk-based capital rules applicable to bank holding companies, as adjusted to
reflect exposures that are deducted from regulatory capital; less</text>
</clause><clause id="id85FC5D5D1A5B471D8442723136D0EE38"><enum>(ii)</enum><text>the
total regulatory capital of the financial company under the risk-based capital
rules applicable to bank holding companies;</text>
</clause></subparagraph><subparagraph id="id144AA338E52C4EA5B3F4E8FE3F221E23"><enum>(B)</enum><text>with respect to a
foreign-based financial company—</text>
<clause id="idA87E2AEB8400484184428877F96E1DC0"><enum>(i)</enum><text>the
total risk-weighted assets of the United States operations of the financial
company, as determined under the applicable risk-based capital rules, as
adjusted to reflect exposures that are deducted from regulatory capital;
less</text>
</clause><clause id="id9308802724104B168DB626218A332131"><enum>(ii)</enum><text>the
total regulatory capital of the United States operations of the financial
company, as determined under the applicable risk-based capital rules;
and</text>
</clause></subparagraph><subparagraph id="id862694F718634C4D9B661858ED5B18C5"><enum>(C)</enum><text>with respect to
an insurance company or other nonbank financial company supervised by the
Board, such assets of the company as the Board shall specify by rule, in order
to provide for consistent and equitable treatment of such companies.</text>
</subparagraph></paragraph></subsection><subsection id="id91C09A8566F3427EB1D279A40B5A6FFF"><enum>(b)</enum><header>Concentration
limit</header><text>Subject to the recommendations by the Council under
subsection (e), a financial company may not merge or consolidate with, acquire
all or substantially all of the assets of, or otherwise acquire control of,
another company, if the total consolidated liabilities of the acquiring
financial company upon consummation of the transaction would exceed 10 percent
of the aggregate consolidated liabilities of all financial companies at the end
of the calendar year preceding the transaction.</text>
</subsection><subsection id="id6E82D535F19A468F9299950ADD7FF8B8"><enum>(c)</enum><header>Exception to
concentration limit</header><text>With the prior written consent of the Board,
the concentration limit under subsection (b) shall not apply to an
acquisition—</text>
<paragraph id="id177B1564DADB4C808AF7CE4D35514B34"><enum>(1)</enum><text>of
a bank in default or in danger of default;</text>
</paragraph><paragraph id="id487A7F40830D4B5CBFF4434A92162C6F"><enum>(2)</enum><text>with respect to
which assistance is provided by the Federal Deposit Insurance Corporation under
section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c));
or</text>
</paragraph><paragraph id="idDE6E7E2262AF499889867AEB7AEE21A0"><enum>(3)</enum><text>that would result
only in a de minimis increase in the liabilities of the financial
company.</text>
</paragraph></subsection><subsection id="id9EE4A0F772E643D2BEC3499178B47386"><enum>(d)</enum><header>Rulemaking and
guidance</header><text>The Board shall issue regulations implementing this
section in accordance with the recommendations of the Council under subsection
(e), including the definition of terms, as necessary. The Board may issue
interpretations or guidance regarding the application of this section to an
individual financial company or to financial companies in general.</text>
</subsection><subsection id="id805DA4A2193944E1AAEDF567E05752A4"><enum>(e)</enum><header>Council study
and rulemaking</header>
<paragraph id="id6F78D7F66FCD403A992AF64057E2852B"><enum>(1)</enum><header>Study and
recommendations</header><text>Not later than 6 months after the date of
enactment of this section, the Council shall—</text>
<subparagraph id="id35229B81169D4BEDB486D07770A01CB0"><enum>(A)</enum><text>complete a study
of the extent to which the concentration limit under this section would affect
financial stability, moral hazard in the financial system, the efficiency and
competitiveness of United States financial firms and financial markets, and the
cost and availability of credit and other financial services to households and
businesses in the United States; and</text>
</subparagraph><subparagraph id="idC541355512734A1589E7AF09E79D30BB"><enum>(B)</enum><text>make
recommendations regarding any modifications to the concentration limit that the
Council determines would more effectively implement this section.</text>
</subparagraph></paragraph><paragraph id="idAE50785FF85F49FAAD11819C13943EA8"><enum>(2)</enum><header>Rulemaking</header><text>Not
later than 9 months after the date of completion of the study under paragraph
(1), and notwithstanding subsections (b) and (d), the Board shall issue final
regulations implementing this section, which shall reflect any recommendations
by the Council under paragraph
(1)(B).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VII</enum><header>Wall
Street Transparency and Accountability</header>
<section id="id0656467FAEDB4B0AA0B9BAE4EF0659DE"><enum>701.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Wall Street Transparency and
Accountability Act of 2010</short-title></quote>.</text>
</section><subtitle id="idBD959770EF2445F19EB1733A4B1E1663"><enum>A</enum><header>Regulation of
Over-the-Counter Swaps Markets</header>
<part id="id122C3FC5C3C343A3A7255CF0170AAE9C"><enum>I</enum><header>Regulatory
authority</header>
<section id="HEEC855D9C26149468A5F57E6BDE31B5F"><enum>711.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle, the terms <term>prudential
regulator</term>, <term>swap</term>, <term>swap dealer</term>, <term>major swap
participant</term>, <term>swap data repository</term>, <term>associated person
of a swap dealer or major swap participant</term>, <term>eligible contract
participant</term>, <term>swap execution facility</term>, <term>security-based
swap</term>, <term>security-based swap dealer</term>, <term>major
security-based swap participant</term>, <term>swap data repository</term>, and
<term>associated person of a security-based swap dealer or major security-based
swap participant</term> have the meanings given the terms in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a).</text>
</section><section id="id182F86F696C0475EAE01D8A45D8B05E3"><enum>712.</enum><header>Review of
regulatory authority</header>
<subsection id="id34561EDA62FA44BEAC54193E14AAB0CB"><enum>(a)</enum><header>Regulatory
authority</header>
<paragraph id="ID79f927b0497d490981c602d7f40e0ecf"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraphs (4) and (8), the
Commodity Futures Trading Commission and the Securities and Exchange Commission
shall each prescribe such regulations as may be necessary to carry out the
purposes of this title.</text>
</paragraph><paragraph id="IDbcec10b249e543f9881af8f5742ecd1e"><enum>(2)</enum><header>Coordination,
consistency, and comparability</header><text>Both Commissions required under
paragraph (1) to prescribe regulations shall consult and coordinate with each
other for the purposes of assuring, to the extent possible, that the
regulations prescribed by each such Commission are consistent and comparable
with the regulations prescribed by the other.</text>
</paragraph><paragraph id="ID50b07d7782534ababd6e311c3d4c8ab4"><enum>(3)</enum><header>Procedures and
deadline</header><text>Such regulations shall be prescribed in accordance with
applicable requirements of title 5, United States Code, and, shall be issued in
final form not later than 180 days after the date of enactment of this
Act.</text>
</paragraph><paragraph id="ID7d8be1e4567d405c94e2056395475743"><enum>(4)</enum><header>Applicability</header><text>The
requirements of paragraph (1) shall not apply to an order issued—</text>
<subparagraph id="ID0755e34b65bb4a559d53df017b1c108c"><enum>(A)</enum><text>in connection
with or arising from a violation or potential violation of any provision of the
Commodity Exchange Act (7 U.S.C. 1 et seq.);</text>
</subparagraph><subparagraph id="ID6f6d9d81cdca44b1a99337e6def109ab"><enum>(B)</enum><text>in connection
with or arising from a violation or potential violation of any provision of the
securities laws; or</text>
</subparagraph><subparagraph id="IDf1082ecac7104792ba66be9d790bda89"><enum>(C)</enum><text>in any proceeding
that is conducted on the record in accordance with sections 556 and 557 of
title 5, United States Code.</text>
</subparagraph></paragraph><paragraph id="IDa69c2f0c7f9a4710855837f84d5a4a0b"><enum>(5)</enum><header>Effect</header><text>Nothing
in this subsection authorizes any consultation or procedure for consultation
that is not consistent with the requirements of subchapter II of chapter 5, and
chapter 7, of title 5, United States Code (commonly known as the
<quote>Administrative Procedure Act</quote>).</text>
</paragraph><paragraph id="ID5166f77b5685447c9a44303e968ca3c3"><enum>(6)</enum><header>Rules;
orders</header><text>In developing and promulgating rules or orders pursuant to
this subsection, each Commission shall consider the views of the prudential
regulators.</text>
</paragraph><paragraph commented="no" id="id3283AF9C3D5547B7B5B543D4CE7B7C7D"><enum>(7)</enum><header>Treatment of
similar products and entities</header>
<subparagraph commented="no" id="idD7708A61B31D442CBD835DC1C26C7A32"><enum>(A)</enum><header>In
general</header><text>In adopting rules and orders under this subsection, the
Commodity Futures Trading Commission and the Securities and Exchange Commission
shall treat functionally or economically similar products or entities described
in paragraphs (1) and (2) in a similar manner.</text>
</subparagraph><subparagraph commented="no" id="id1BDD1435ACAD4F479004F8462A724C4A"><enum>(B)</enum><header>Effect</header><text>Nothing
in this subtitle requires the Commodity Futures Trading Commission or the
Securities and Exchange Commission to adopt joint rules or orders that treat
functionally or economically similar products or entities described in
paragraphs (1) and (2) in an identical manner.</text>
</subparagraph></paragraph><paragraph id="ID76281536eb0444368ff9232b1e575ef0"><enum>(8)</enum><header>Mixed
swaps</header><text>The Commodity Futures Trading Commission and the Securities
and Exchange Commission shall jointly prescribe such regulations regarding
mixed swaps, as described in section 1a(47)(D) of the Commodity Exchange Act (7
U.S.C. 1a(47)(D)) and in section (68)(D) of the Securities Exchange Act of 1934
(15 U.S.C. (68)(D)), as may be necessary to carry out the purposes of this
title.</text>
</paragraph></subsection><subsection id="HD8AFDDA26AD048A78919393FE067B67A"><enum>(b)</enum><header>Limitation</header>
<paragraph id="H56747654ACE6409C95FFF10BA0057945"><enum>(1)</enum><header>Commodity
Futures Trading Commission</header><text>Nothing in this title, unless
specifically provided, confers jurisdiction on the Commodity Futures Trading
Commission to issue a rule, regulation, or order providing for oversight or
regulation of—</text>
<subparagraph id="HF68ED3A05DA54F92AEB233A192D6978C"><enum>(A)</enum><text>security-based
swaps; or</text>
</subparagraph><subparagraph id="H8420C1F2000A4F68BBB905359D1FE3A8"><enum>(B)</enum><text>with regard to its
activities or functions concerning security-based swaps—</text>
<clause id="HA65B0C781070430692690A45EED9123C"><enum>(i)</enum><text>security-based
swap dealers;</text>
</clause><clause id="H82F9A978A44746DBB5DFBEA8F93EA889"><enum>(ii)</enum><text>major
security-based swap participants;</text>
</clause><clause id="H3AC552BDE20648B19F41E8D4767AFDE4"><enum>(iii)</enum><text>security-based
swap data repositories;</text>
</clause><clause id="HB703EBE76CE94437B4B44173832B8E38"><enum>(iv)</enum><text>persons
associated with a security-based swap dealer or major security-based swap
participant;</text>
</clause><clause id="H9EC0E8FE2E544DE3B97BA883D370B6A1"><enum>(v)</enum><text>eligible
contract participants with respect to security-based swaps; or</text>
</clause><clause id="HFCA45C886A074498A0AAFE9DAFF3C416"><enum>(vi)</enum><text>swap
execution facilities with respect to security-based swaps.</text>
</clause></subparagraph></paragraph><paragraph id="HF8CDB17D4AE44FDD92D28B404EF034DE"><enum>(2)</enum><header>Securities and
Exchange Commission</header><text display-inline="yes-display-inline">Nothing
in this title, unless specifically provided, confers jurisdiction on the
Securities and Exchange Commission or State securities regulators to issue a
rule, regulation, or order providing for oversight or regulation of—</text>
<subparagraph id="H96D29B7226384D9998397BCE325A566C"><enum>(A)</enum><text>swaps; or</text>
</subparagraph><subparagraph id="H8732F20CE73E4C3B93F0AE28A07E4D52"><enum>(B)</enum><text>with regard to its
activities or functions concerning swaps—</text>
<clause id="H6A81C28FA0BB4F959D5D74E8EACC95AE"><enum>(i)</enum><text>swap
dealers;</text>
</clause><clause id="HB09733EEE3C14D7DB5055C40C7E2065D"><enum>(ii)</enum><text>major
swap participants;</text>
</clause><clause id="H263F7297D69B4CDCB4E413CE6CA704DB"><enum>(iii)</enum><text>swap
data repositories;</text>
</clause><clause id="H86E86150DF434683BB6649F6C36E602F"><enum>(iv)</enum><text>persons
associated with a swap dealer or major swap participant;</text>
</clause><clause id="H1C69CF1112814003A57FFD8C643DD165"><enum>(v)</enum><text>eligible
contract participants with respect to swaps; or</text>
</clause><clause id="H6E52E60B3DB14177BA422C123A535A0E"><enum>(vi)</enum><text>swap
execution facilities with respect to swaps.</text>
</clause></subparagraph></paragraph><paragraph id="IDc89356f3068440a487a71866f13362b9"><enum>(3)</enum><header>Prohibition on
certain futures associations and national securities associations</header>
<subparagraph id="id01E0B695FE5647C69B67F0C4005DA45B"><enum>(A)</enum><header>Futures
associations</header><text>Notwithstanding any other provision of law
(including regulations), unless otherwise authorized by this title, no futures
association registered under section 17 of the Commodity Exchange Act (7 U.S.C.
21) may issue a rule, regulation, or order for the oversight or regulation of,
or otherwise assert jurisdiction over, for any purpose, any security-based
swap, except that this shall not limit the authority of a national futures
association to examine for compliance with and enforce its rules on advertising
and capital adequacy.</text>
</subparagraph><subparagraph id="id2BF750B0CE5B4978BA29651F1EE0B179"><enum>(B)</enum><header>National
securities associations</header><text>Notwithstanding any other provision of
law (including regulations), unless otherwise authorized by this title, no
national securities association registered under section 15A of the Securities
Exchange Act of 1934 (15 U.S.C. 78<italic>o</italic>–3) may issue a rule,
regulation, or order for the oversight or regulation of, or otherwise assert
jurisdiction over, for any purpose, any swap, except that this shall not limit
the authority of a national securities association to examine for compliance
with and enforce its rules on advertising and capital adequacy.</text>
</subparagraph></paragraph></subsection><subsection id="H592B0D402CD94847814362ACED566E7E"><enum>(c)</enum><header>Objection to
Commission regulation</header>
<paragraph id="H17D1BA4D83EF448AAB5DDD1B8AC4F8C3"><enum>(1)</enum><header>Filing of
petition for review</header>
<subparagraph id="idF7C174A0B6E24F8EA45F6D0B46A301DE"><enum>(A)</enum><header>In
general</header><text>If either Commission referred to in this section
determines that a final rule, regulation, or order of the other Commission
conflicts with subsection (a)(4) or (b), then the complaining Commission may
obtain review of the final rule, regulation, or order in the United States
Court of Appeals for the District of Columbia Circuit by filing in the court,
not later than 60 days after the date of publication of the final rule,
regulation, or order, a written petition requesting that the rule, regulation,
or order be set aside.</text>
</subparagraph><subparagraph id="id9C7203DBA1464B47879CC7766569A080"><enum>(B)</enum><header>Expedited
proceeding</header><text>A proceeding described in subparagraph (A) shall be
expedited by the United States Court of Appeals for the District of Columbia
Circuit.</text>
</subparagraph></paragraph><paragraph id="HF356981FAA304B62894BDCA7C201FEFF"><enum>(2)</enum><header>Transmittal of
petition and record</header>
<subparagraph id="idFE10401357144B54BDE6EA65C79273B9"><enum>(A)</enum><header>In
general</header><text>A copy of a petition described in paragraph (1) shall be
transmitted not later than 1 business day after the date of filing by the
complaining Commission to the Secretary of the responding Commission.</text>
</subparagraph><subparagraph id="idEF4F925EF5884414A8D844083ED13183"><enum>(B)</enum><header>Duty of
responding Commission</header><text>On receipt of the copy of a petition
described in paragraph (1), the responding Commission shall file with the
United States Court of Appeals for the District of Columbia Circuit—</text>
<clause id="id22B4B3821B95489A82EF3350887EAC37"><enum>(i)</enum><text>a copy
of the rule, regulation, or order under review (including any documents
referred to therein); and</text>
</clause><clause id="id92F21C61006C43138FC290D01D93B72E"><enum>(ii)</enum><text>any
other materials prescribed by the United States Court of Appeals for the
District of Columbia Circuit.</text>
</clause></subparagraph></paragraph><paragraph id="H3DA1BF92395A4BA08364BA5993621B06"><enum>(3)</enum><header>Standard of
review</header><text>The United States Court of Appeals for the District of
Columbia Circuit shall—</text>
<subparagraph id="id333D355DDDC34ED389B422165287CB45"><enum>(A)</enum><text>give deference to
the views of neither Commission; and</text>
</subparagraph><subparagraph id="idCF6F908325AE415F93B6F99A4BFE3440"><enum>(B)</enum><text>determine to
affirm or set aside a rule, regulation, or order of the responding Commission
under this subsection, based on the determination of the court as to whether
the rule, regulation, or order is in conflict with subsection (a)(4) or (b), as
applicable.</text>
</subparagraph></paragraph><paragraph id="H962AE2BD955F435D9EFD8E1FC7AD8D0E"><enum>(4)</enum><header>Judicial
stay</header><text>The filing of a petition by the complaining Commission
pursuant to paragraph (1) shall operate as a stay of the rule, regulation, or
order until the date on which the determination of the United States Court of
Appeals for the District of Columbia Circuit is final (including any appeal of
the determination).</text>
</paragraph></subsection><subsection commented="no" id="HBD88447A308F46098286DC42A8205B2B"><enum>(d)</enum><header>Adoption of
rules on uncleared swaps</header><text display-inline="yes-display-inline">Notwithstanding subsections (b) and (c),
the Commodity Futures Trading Commission and the Securities and Exchange
Commission shall, after consulting with each other Commission, adopt
rules—</text>
<paragraph id="id95F9A26E79F64318AEA5DDCBF499C02F"><enum>(1)</enum><text>to
require the maintenance of records of all activities relating to transactions
in swaps and security-based swaps under the respective jurisdictions of the
Commodity Futures Trading Commission and the Securities and Exchange Commission
that are uncleared;</text>
</paragraph><paragraph id="id88D4365AF73D49599E852ED6A0A6014B"><enum>(2)</enum><text>to
make available, consistent with section 8 of the Commodity Exchange Act (7
U.S.C. 12), to the Securities and Exchange Commission information relating to
swaps transactions that are uncleared; and</text>
</paragraph><paragraph id="id43B078F9FAF843A4894888EC9712B678"><enum>(3)</enum><text>to
make available to the Commodity Futures Trading Commission information relating
to security-based swaps transactions that are uncleared.</text>
</paragraph></subsection><subsection id="ID4e1fe9523f194605877c4bfc6e0424ee"><enum>(e)</enum><header>Definitions</header><text>Notwithstanding
subsections (b) and (c), the Commodity Futures Trading Commission and the
Securities and Exchange Commission shall jointly adopt rules to define the term
<quote>security-based swap agreement</quote> in section 1a(47)(A)(v) of the
Commodity Exchange Act (7 U.S.C. 1a(47)(A)(v)) and in section 3(a)(78) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(78)).</text>
</subsection><subsection id="ID7abeb1a0b24046b7aab074506858610d"><enum>(f)</enum><header>Global
rulemaking timeframe</header><text>Unless otherwise provided in a particular
provision of this title, or an amendment made by this title, the Commodity
Futures Trading Commission or the Securities and Exchange Commission, or both,
shall individually, and not jointly, promulgate rules and regulations required
of each Commission under this title or an amendment made by this title not
later than 180 days after the date of enactment of this Act.</text>
</subsection><subsection id="IDfd9eeff753554b168f9d2e633920d899"><enum>(g)</enum><header>Expedited
rulemaking process</header><text>The Commodity Futures Trading Commission or
the Securities and Exchange Commission, or both, may use emergency and
expedited procedures (including any administrative or other procedure as
appropriate) to carry out this title and the amendments made by this title if,
in either of the Commissions’ discretion, it considers it necessary to do
so.</text>
</subsection></section><section id="HB1A6627AA9474C34B7CE633E0919BD59"><enum>713.</enum><header>Recommendations
for changes to portfolio margining laws</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Securities and Exchange Commission, the Commodity
Futures Trading Commission, and the prudential regulators shall submit to the
appropriate committees of Congress recommendations for legislative changes to
the Federal laws to facilitate the portfolio margining of securities and
commodity futures and options, commodity options, swaps, and other financial
instrument positions.</text>
</section><section display-inline="no-display-inline" id="H88E7B71481114C7093271F6B1BFE1F7A" section-type="subsequent-section"><enum>714.</enum><header>Abusive
swaps</header><text display-inline="no-display-inline">The Commodity Futures
Trading Commission or the Securities and Exchange Commission, or both,
individually may, by rule or order—</text>
<paragraph display-inline="no-display-inline" id="id315A5CDAE68E41438B9228B1ADAAD3C0"><enum>(1)</enum><text display-inline="yes-display-inline">collect information as may be necessary
concerning the markets for any types of—</text>
<subparagraph display-inline="no-display-inline" id="id9907D30A18154210B52AA6B6897EB232"><enum>(A)</enum><text display-inline="yes-display-inline">swap (as defined in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a)); or</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="idA4D22FAF1244447BA4FCEB73676CEF5C"><enum>(B)</enum><text display-inline="yes-display-inline">security-based swap (as defined in section
1a of the Commodity Exchange Act (7 U.S.C. 1a)); and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id47C7EB2CBB174DA1901C2B35DB5E894D"><enum>(2)</enum><text display-inline="yes-display-inline">issue a report with respect to any types of
swaps or security-based swaps that the Commodity Futures Trading Commission or
the Securities and Exchange Commission determines to be detrimental to—</text>
<subparagraph display-inline="no-display-inline" id="id5F228B8BA812482A98895652528C1E92"><enum>(A)</enum><text display-inline="yes-display-inline">the stability of a financial market;
or</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id8B7E5320D35B4CCE85A03FA7FE3FF83C"><enum>(B)</enum><text display-inline="yes-display-inline">participants in a financial market.</text>
</subparagraph></paragraph></section><section id="HBF0440C5DE044AAC8979DDDF56B1348B"><enum>715.</enum><header>Authority to
prohibit participation in swap activities</header><text display-inline="no-display-inline">Except as provided in section 4 of the
Commodity Exchange Act (7 U.S.C. 6) (as amended by section 738), if the
Commodity Futures Trading Commission or the Securities and Exchange Commission
determines that the regulation of swaps or security-based swaps markets in a
foreign country undermines the stability of the United States financial system,
either Commission, in consultation with the Secretary of the Treasury, may
prohibit an entity domiciled in the foreign country from participating in the
United States in any swap or security-based swap activities.</text>
</section><section id="IDb21b7c6320634cc5a1b80b791c65db44"><enum>716.</enum><header>Prohibition
against Federal government bailouts of swaps entities</header>
<subsection id="ID9dae238605064a809dacea3a1a76e056"><enum>(a)</enum><header>Prohibition on
Federal assistance</header><text>Notwithstanding any other provision of law
(including regulations), no Federal assistance may be provided to any swaps
entity with respect to any swap, security-based swap, or other activity of the
swaps entity.</text>
</subsection><subsection id="ID8458bbe41bac4e6da48eeb40d49e6c38"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDe0fcca2b76294ec9aa4949a195f7ec9d"><enum>(1)</enum><header>Federal
assistance</header><text>The term <term>Federal assistance</term> means the use
of any funds, including advances from any Federal Reserve credit facility,
discount window, or pursuant to the third undesignated paragraph of section 13
of the Federal Reserve Act (12 U.S.C. 343) (relating to emergency lending
authority), Federal Deposit Insurance Corporation insurance, or guarantees for
the purpose of—</text>
<subparagraph id="ID310bdfc3fbf54d9b953120c2998151e7"><enum>(A)</enum><text>making any loan
to, or purchasing any stock, equity interest, or debt obligation of, any swaps
entity;</text>
</subparagraph><subparagraph id="ID7be92469b7994b68b49d4e15b8f271c4"><enum>(B)</enum><text>purchasing the
assets of any swaps entity;</text>
</subparagraph><subparagraph id="ID6d6c1fa951404d9b9e7ed703a759f246"><enum>(C)</enum><text>guaranteeing any
loan or debt issuance of any swaps entity; or</text>
</subparagraph><subparagraph id="ID660e214a518e420b9250a1a6f64f4b0c"><enum>(D)</enum><text>entering into any
assistance arrangement (including tax breaks), loss sharing, or profit sharing
with any swaps entity.</text>
</subparagraph></paragraph><paragraph id="IDe182cb609b1f4d3b9c65f4f73e2f03bd"><enum>(2)</enum><header>Swaps
entity</header><text>The term <term>swaps entity</term> means any swap dealer,
security-based swap dealer, major swap participant, major security-based swap
participant, swap execution facility, designated contract market, national
securities exchange, central counterparty, clearing house, clearing agency, or
derivatives clearing organization that is registered under—</text>
<subparagraph id="ID80bec639261b4eccbd5bce41afaf4efb"><enum>(A)</enum><text>the Commodity
Exchange Act (7 U.S.C. 1 et seq.);</text>
</subparagraph><subparagraph id="IDc36875815e084cf5bd19650f9839856d"><enum>(B)</enum><text>the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.); or</text>
</subparagraph><subparagraph id="IDed7754b1aa994c249cf63d768a97e6ae"><enum>(C)</enum><text>any other Federal
or State law (including regulations).</text>
</subparagraph></paragraph></subsection></section><section id="ID10df74a542db48fbabb4d75e382d9714"><enum>717.</enum><header>New
product approval – CFTC-SEC process</header>
<subsection id="ID26b23dc783b24136b72d32a508b519ca"><enum>(a)</enum><header>Amendments to
the Commodity Exchange Act</header><text>Section 2(a)(1)(C) of the Commodity
Exchange Act (7 U.S.C. 2(a)(1)(C)) is amended—</text>
<paragraph id="IDf674b434635942788ea863d5933aa55b"><enum>(1)</enum><text>in
clause (i) by striking <quote>This</quote> and inserting <quote>(I) Except as
provided in subclause (II), this</quote>; and</text>
</paragraph><paragraph id="ID9c364d95d77242c4b68cfab8c248ff8a"><enum>(2)</enum><text>by
adding at the end of clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="id2ADD0810644149B3BD23A544AB10023B" style="OLC">
<subclause id="ID295b4495e1bd47f78a099b8036ba942d"><enum>(II)</enum><text>This Act shall
apply to and the Commission shall have jurisdiction with respect to accounts,
agreements, and transactions involving, and may permit the listing for trading
pursuant to section 5c(c) of, a put, call, or other option on 1 or more
securities (as defined in section 2(a)(1) of the Securities Act of 1933 or
section 3(a)(10) of the Securities Exchange Act of 1934 on the date of
enactment of the Futures Trading Act of 1982), including any group or index of
such securities, or any interest therein or based on the value thereof, that is
exempted by the Securities and Exchange Commission pursuant to section 36(a)(1)
of the Securities Exchange Act of 1934 with the condition that the Commission
exercise concurrent jurisdiction over such put, call, or other option;
<italic>provided</italic>, however, that nothing in this paragraph shall be
construed to affect the jurisdiction and authority of the Securities and
Exchange Commission over such put, call, or other
option.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDeb1a5f72dd8b48bb8711e729bfe9c80a"><enum>(b)</enum><header>Amendment to
the Securities Exchange Act of 1934</header><text>The Securities Exchange Act
of 1934 is amended by adding the following section after section 3A (15 U.S.C.
78c–1):</text>
<quoted-block display-inline="no-display-inline" id="id25C4C7ABCDA94B169B8FE23E830C77EF" style="OLC">
<section id="ID723114f25e634626bba18fbc76a471ce"><enum>3B.</enum><header>Securities-related
derivatives</header>
<subsection id="IDd0f3ed3825364bf19eeed230cc9ab181"><enum>(a)</enum><text>Any agreement,
contract, or transaction (or class thereof) that is exempted by the Commodity
Futures Trading Commission pursuant to section 4(c)(1) of the Commodity
Exchange Act (7 U.S.C. 6(c)(1)) with the condition that the Commission exercise
concurrent jurisdiction over such agreement, contract, or transaction (or class
thereof) shall be deemed a security for purposes of the securities laws.</text>
</subsection><subsection id="ID80d7b60ef30a4c05873b0c3e8fcde6f3"><enum>(b)</enum><text>With respect to
any agreement, contract, or transaction (or class thereof) that is exempted by
the Commodity Futures Trading Commission pursuant to section 4(c)(1) of the
Commodity Exchange Act (7 U.S.C. 6(c)(1)) with the condition that the
Commission exercise concurrent jurisdiction over such agreement, contract, or
transaction (or class thereof), references in the securities laws to the
<quote>purchase</quote> or <quote>sale</quote> of a security shall be deemed to
include the execution, termination (prior to its scheduled maturity date),
assignment, exchange, or similar transfer or conveyance of, or extinguishing of
rights or obligations under such agreement, contract, or transaction, as the
context may
require.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2c5b1185d9144e91813909f0e6b5ed72"><enum>(c)</enum><header>Amendment to
Securities Exchange Act of 1934</header><text>Section 19(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id1693F86E12F2479BA712B6815BC52A0E" style="OLC">
<paragraph id="ID58ed70271f2a484390fdc040b0bab72b"><enum>(10)</enum><text>Notwithstanding
the provisions of paragraph (2), the time period within which the Commission is
required by order to approve a proposed rule change or institute proceedings to
determine whether the proposed rule change should be disapproved is stayed
pending a determination by the Commission upon the request of the Commodity
Futures Trading Commission or its Chairman that the Commission issue a
determination as to whether a product that is the subject of such proposed rule
change is a security pursuant to section 718 of the
<short-title>Wall Street Transparency and Accountability
Act of
2010</short-title>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDecf28bd555e8478c981789d9c9df7d35"><enum>(d)</enum><header>Amendment to
Commodity Exchange Act</header><text>Section 5c(c)(1) of the Commodity Exchange
Act (7 U.S.C. 7a–2(c)(1)) is amended—</text>
<paragraph id="id2D8F37FFD6BF4FCCABFBBCAC698F0A29"><enum>(1)</enum><text>by
striking <quote>Subject to paragraph (2)</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id8CCDD48A9D7E4DCF95DC8BC811899A71" style="OLC">
<subparagraph id="idC0EDA7D2907646DC93C9610FF48CDCD3"><enum>(A)</enum><header>Election</header><text>Subject
to paragraph (2)</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id82E3322B51B0423C92B8596F6A4057C2"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id04BAEE9B83284E68971F23B6CA40D0AC" style="OLC">
<subparagraph id="ID57789f3df69c4ed799c6c13f95340551"><enum>(B)</enum><header>Certification</header><text>The
certification of a product pursuant to this paragraph shall be stayed pending a
determination by the Commission upon the request of the Securities and Exchange
Commission or its Chairman that the Commission issue a determination as to
whether the product that is the subject of such certification is a contract of
sale of a commodity for future delivery, an option on such a contract, or an
option on a commodity pursuant to section 718 of the
<short-title>Wall Street Transparency and Accountability
Act of
2010</short-title>.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDeab87e84ac9548c2991ca78e4dda69eb"><enum>718.</enum><header>Determining
status of novel derivative products</header>
<subsection id="ID26753fb6146046d59a951c4688a7676a"><enum>(a)</enum><header>Process for
determining the status of a novel derivative product</header>
<paragraph id="ID9cab825261704229a30b2b6830e39c95"><enum>(1)</enum><header>Notice</header>
<subparagraph id="ID64a76f9c1a164b0a8bfacfc4f223f60d"><enum>(A)</enum><header>In
general</header><text>Any person filing a proposal to list or trade a novel
derivative product that may have elements of both securities and contracts of
sale of a commodity for future delivery (or options on such contracts or
options on commodities) may concurrently provide notice and furnish a copy of
such filing with both the Securities and Exchange Commission and the Commodity
Futures Trading Commission. Any such notice shall state that notice has been
made with both Commissions.</text>
</subparagraph><subparagraph id="ID76c00472675e49e0bfc85f62a2e23e6f"><enum>(B)</enum><header>Notification</header><text>If
no concurrent notice is made pursuant to subparagraph (A), within 5 business
days after determining that a proposal that seeks to list or trade a novel
derivative product may have elements of both securities and contracts of sale
of a commodity for future delivery (or options on such contracts or options on
commodities), the Securities and Exchange Commission or the Commodity Futures
Trading Commission, as applicable, shall notify the other Commission and
provide a copy of such filing to the other Commission.</text>
</subparagraph></paragraph><paragraph id="ID15ea89a8d68f4f45996dd0d731e0f089"><enum>(2)</enum><header>Request for
determination</header>
<subparagraph id="IDc816f1609efb4c5e8c2fcce427c8bfc4"><enum>(A)</enum><header>In
general</header><text>No later than 21 days after receipt of a notice under
paragraph (1), or upon its own initiative if no such notice is received, the
Commodity Futures Trading Commission may request that the Securities and
Exchange Commission issue a determination as to whether a product is a
security, as defined in section 3(a)(10) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(10)).</text>
</subparagraph><subparagraph id="IDf0a923aae00041b396a219164b25a084"><enum>(B)</enum><header>Request</header><text>No
later than 21 days after receipt of a notice under paragraph (1), or upon its
own initiative if no such notice is received, the Securities and Exchange
Commission may request that the Commodity Futures Trading Commission issue a
determination as to whether a product is a contract of sale of a commodity for
future delivery, an option on such a contract, or an option on a commodity
subject to the Commodity Futures Trading Commission’s exclusive jurisdiction
under section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C.
2(a)(1)(A)).</text>
</subparagraph><subparagraph id="IDc921b6156f1e45ffa1dcae7bf31ddd42"><enum>(C)</enum><header>Requirement
relating to request</header><text>A request under subparagraph (A) or (B) shall
be made by submitting such request, in writing, to the Securities and Exchange
Commission or the Commodity Futures Trading Commission, as applicable.</text>
</subparagraph><subparagraph id="ID8f9d5cf3ea664fd4ae39786e2c7d1c56"><enum>(D)</enum><header>Effect</header><text>Nothing
in this paragraph shall be construed to prevent—</text>
<clause id="ID010c9136ba5940d192fb15a1b75552f1"><enum>(i)</enum><text>the
Commodity Futures Trading Commission from requesting that the Securities and
Exchange Commission grant an exemption pursuant to section 36(a)(1) of the
Securities Exchange Act of 1934 (15 U.S.C. 78mm(a)(1)) with respect to a
product that is the subject of a filing under paragraph (1); or</text>
</clause><clause id="ID7d6d80845e2e43f38bbb167070434138"><enum>(ii)</enum><text>the
Securities and Exchange Commission from requesting that the Commodity Futures
Trading Commission grant an exemption pursuant to section 4(c)(1) of the
Commodity Exchange Act (7 U.S.C. 6(c)(1)) with respect to a product that is the
subject of a filing under paragraph (1).</text>
</clause><continuation-text continuation-text-level="subparagraph"><italic>Provided</italic>,
however, that nothing in this subparagraph shall be construed to require the
Commodity Futures Trading Commission or the Securities and Exchange Commission
to issue an exemption requested pursuant to this subparagraph; <italic>provided
further</italic>, That an order granting or denying an exemption described in
this subparagraph and issued under paragraph (3)(B) shall not be subject to
judicial review pursuant to subsection (b).</continuation-text></subparagraph><subparagraph id="IDacfd88cf3d504817a3d217628ee58335"><enum>(E)</enum><header>Withdrawal of
request</header><text>A request under subparagraph (A) or (B) may be withdrawn
by the Commission making the request at any time prior to a determination being
made pursuant to paragraph (3) for any reason by providing written notice to
the head of the other Commission.</text>
</subparagraph></paragraph><paragraph id="ID9c448c146dd14265862e7c6f7be8fda1"><enum>(3)</enum><header>Determination</header><text>Notwithstanding
any other provision of law, no later than 120 days after the date of receipt of
a request—</text>
<subparagraph id="IDc56552c49ec84184ac296445be63abc1"><enum>(A)</enum><text>under
subparagraph (A) or (B) of paragraph (2), unless such request has been
withdrawn pursuant to paragraph (2)(E), the Securities and Exchange Commission
or the Commodity Futures Trading Commission, as applicable, shall, by order,
issue the determination requested in subparagraph (A) or (B) of paragraph (2),
as applicable, and the reasons therefore; or</text>
</subparagraph><subparagraph id="ID170c1593d280400a8577d4b131c5a63d"><enum>(B)</enum><text>under paragraph
(2)(D), unless such request has been withdrawn, the Securities and Exchange
Commission or the Commodity Futures Trading Commission, as applicable, shall
grant an exemption or provide reasons for not granting such exemption, provided
that any decision by the Securities and Exchange Commission not to grant such
exemption shall not be reviewable under section 25 of the Securities Exchange
Act of 1934 (15 U.S.C. 78y).</text>
</subparagraph></paragraph></subsection><subsection id="ID0e89dfb4fb004f589c96db677c688c6d"><enum>(b)</enum><header>Judicial
resolution</header>
<paragraph id="ID2be3ea99da7d4701a38dfe39b6cfb154"><enum>(1)</enum><header>In
general</header><text>The Commodity Futures Trading Commission or the
Securities and Exchange Commission may petition the United States Court of
Appeals for the District of Columbia Circuit for review of a final order of the
other Commission, with respect to a novel derivative product that may have
elements of both securities and contracts of sale of a commodity for future
delivery (or options on such contracts or options on commodities) that it
believes affects its statutory jurisdiction, including an order or orders
issued under subsection (a)(3)(A), by filing in such court, within 60 days
after the date of entry of such order, a written petition requesting a review
of the order. Any such proceeding shall be expedited by the Court of
Appeals.</text>
</paragraph><paragraph id="ID4d009765b6a14cd2aee01501a2ae5c43"><enum>(2)</enum><header>Transmittal of
petition and record</header><text>A copy of a petition described in paragraph
(1) shall be transmitted not later than 1 business day after filing by the
complaining Commission to the responding Commission. On receipt of the
petition, the responding Commission shall file with the court a copy of the
order under review and any documents referred to therein, and any other
materials prescribed by the court.</text>
</paragraph><paragraph id="ID2a6fc03c33d043d7b83ee31f70fbcc2c"><enum>(3)</enum><header>Standard of
review</header><text>The court, in considering a petition filed pursuant to
paragraph (1), shall give no deference to, or presumption in favor of, the
views of either Commission.</text>
</paragraph><paragraph id="ID679883dbe5d84acaa190ce3c6763e63f"><enum>(4)</enum><header>Judicial
stay</header><text>The filing of a petition by the complaining Commission
pursuant to paragraph (1) shall operate as a stay of the order, until the date
on which the determination of the court is final (including any appeal of the
determination).</text>
</paragraph></subsection></section></part><part id="H63A477D36A8C40878783DFAA0495B74B"><enum>II</enum><header>Regulation of
Swap Markets</header>
<section id="H6EB314D83E75400CAD3329F8927AE825"><enum>721.</enum><header>Definitions</header>
<subsection id="H50529562B4E147A5B79BE3E18E2C1A3C"><enum>(a)</enum><header>In
general</header><text>Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is
amended—</text>
<paragraph id="id88FE01BFEC5245E88C5C108CD2447E3B"><enum>(1)</enum><text>by
redesignating paragraphs (2), (3) and (4), (5) through (17), (18) through (23),
(24) through (28), (29), (30), (31) through (33), and (34) as paragraphs (6),
(8) and (9), (11) through (23), (26) through (31), (34) through (38), (40),
(41), (44) through (46), and (51), respectively;</text>
</paragraph><paragraph id="id6F54D5D5F67B480581AC12574AA7F640"><enum>(2)</enum><text>by
inserting after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="id513CD77D769242DCAEB946E599A51205" style="OLC">
<paragraph id="id9394DF1CDC214FDB8912362C56555342"><enum>(2)</enum><header>Appropriate
federal banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the meaning given the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph id="H1B71BE84E21446109CB6633313C000E0"><enum>(3)</enum><header>Associated
person of a security-based swap dealer or major security-based swap
participant</header><text display-inline="yes-display-inline">The term
<term>associated person of a security-based swap dealer or major security-based
swap participant</term> has the meaning given the term in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph id="IDc1a850b5a4a14cc79a3114cb14e2a3db"><enum>(4)</enum><header>Associated
person of a swap dealer or major swap participant</header>
<subparagraph id="idFD6A95A15AD448DCB60166CBFAEE3948"><enum>(A)</enum><header>In
general</header><text>The term <term>associated person of a swap dealer or
major swap participant</term> means—</text>
<clause id="id5DDBEC0B81D148DDB80A2875E13E1A31"><enum>(i)</enum><text>any
partner, officer, director, or branch manager of a swap dealer or major swap
participant (including any individual who holds a similar status or performs a
similar function with respect to any partner, officer, director, or branch
manager of a swap dealer or major swap participant);</text>
</clause><clause id="id5DDD0B9BA42E437F9664091AEBF3F5D2"><enum>(ii)</enum><text>any
person that directly or indirectly controls, is controlled by, or is under
common control with, a swap dealer or major swap participant; and</text>
</clause><clause id="id9C4ADDF512694632A79942F04C8DE307"><enum>(iii)</enum><text>any
employee of a swap dealer or major swap participant.</text>
</clause></subparagraph><subparagraph id="idE6801E69727E435195243E9E75492A6B"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 4s(b)(6), the term <term>associated person of a
swap dealer or major swap participant</term> does not include any person
associated with a swap dealer or major swap participant the functions of which
are solely clerical or ministerial.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HDA4056D445BF4CE1A980FDD960A472C9"><enum>(5)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id36708C5ABA3A480A98B22BAF41C6416A"><enum>(3)</enum><text>by inserting
after paragraph (6) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="idF98401CAB9584228BDFD32F46F079155" style="OLC">
<paragraph id="IDba0743ec37924ef5a529bccaef01f19e"><enum>(7)</enum><header>Cleared
swap</header><text>The term <term>cleared swap</term> means any swap that is,
directly or indirectly, submitted to and cleared by a derivatives clearing
organization registered with the
Commission.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID2cf957095e8c4e77ab699836fbb7d0ab"><enum>(4)</enum><text>in
paragraph (9) (as redesignated by paragraph (1)), by striking <quote>except
onions</quote> and all that follows through the period at the end and inserting
the following: <quote>except onions (as provided in section 13-1) and motion
picture box office receipts (or any index, measure, value, or data related to
such receipts), and all services, rights, and interests (except motion picture
box office receipts, or any index, measure, value or data related to such
receipts) in which contracts for future delivery are presently or in the future
dealt in.</quote>;</text>
</paragraph><paragraph id="ID3723bdcd65264121a602e6a59dcdf9ab"><enum>(5)</enum><text>by
inserting after paragraph (9) (as redesignated by paragraph (1)) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id322512CB86B24F41A6A553B99774BEB4" style="OLC">
<paragraph id="IDd03d68ed0ecf4a4c864fb47617fb4e66"><enum>(10)</enum><header>Commodity
pool</header>
<subparagraph id="IDe946bdab39e54a34a5b27242dd767d16"><enum>(A)</enum><header>In
general</header><text>The term <term>commodity pool</term> means any investment
trust, syndicate, or similar form of enterprise operated for the purpose of
trading in commodity interests, including any—</text>
<clause id="ID37e29ae002ce4aabb3984e2fa2d217ea"><enum>(i)</enum><text>commodity for
future delivery, security futures product, or swap;</text>
</clause><clause id="IDef7f9a8d81724268aec1227b4afccc0b"><enum>(ii)</enum><text>agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i);</text>
</clause><clause id="IDb714b982301d4f90bcb7c1b4b50b8108"><enum>(iii)</enum><text>commodity
option authorized under section 4c; or</text>
</clause><clause id="ID75e3a8418c3042e38b95cde6448b3ee2"><enum>(iv)</enum><text>leverage
transaction authorized under section 19.</text>
</clause></subparagraph><subparagraph id="ID1d32a2c617b94f338800b818d2c47dee"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>commodity pool</term> any investment
trust, syndicate, or similar form of enterprise if the Commission determines
that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDa86e5a450ebf4d3a9ae823ce676910f2"><enum>(6)</enum><text>by
striking paragraph (11) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id4705982CADCB43169149215B3800A5E8" style="OLC">
<paragraph id="IDad7a8672538f427cb5b3014d268689c3"><enum>(11)</enum><header>Commodity pool
operator</header>
<subparagraph id="ID46a61bb082c04e66ad8717d257038fe1"><enum>(A)</enum><header>In
general</header><text>The term <term>commodity pool operator</term> means any
person—</text>
<clause id="ID4ff78683209d462eb2111444f534bb8c"><enum>(i)</enum><text>engaged in a
business that is of the nature of a commodity pool, investment trust,
syndicate, or similar form of enterprise, and who, in connection therewith,
solicits, accepts, or receives from others, funds, securities, or property,
either directly or through capital contributions, the sale of stock or other
forms of securities, or otherwise, for the purpose of trading in commodity
interest, including any—</text>
<subclause id="ID7b7c752f7aa7493cb27e45d204f080f9"><enum>(I)</enum><text>commodity for
future delivery, security futures product, or swap;</text>
</subclause><subclause id="IDcb9e3cd9009c4dbd82fac45d3c09d1e8"><enum>(II)</enum><text>agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i);</text>
</subclause><subclause id="IDd7a15fba75dd4c6c871e88ca693995d7"><enum>(III)</enum><text>commodity
option authorized under section 4c; or</text>
</subclause><subclause id="IDf149c2dc0a184545a6127cf51c25b8ab"><enum>(IV)</enum><text>leverage
transaction authorized under section 19; or</text>
</subclause></clause><clause id="ID07b82d3ddc0b4773bc87fab3878380a9"><enum>(ii)</enum><text>who
is registered with the Commission as a commodity pool operator.</text>
</clause></subparagraph><subparagraph id="IDbca8016b846e4ec0a58864b06eb3fac8"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>commodity pool operator</term> any
person engaged in a business that is of the nature of a commodity pool,
investment trust, syndicate, or similar form of enterprise if the Commission
determines that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id58BE99CA150B473B8E6188356D6A29B9"><enum>(7)</enum><text>in paragraph (12)
(as redesignated by paragraph (1)), in subparagraph (A)—</text>
<subparagraph id="id2BDD45D1968F457E958DD1BE93BD8043"><enum>(A)</enum><text>in clause
(i)—</text>
<clause id="id48C94A270B444F6CA623EB45C40B5697"><enum>(i)</enum><text>in
subclause (I), by striking <quote>made or to be made on or subject to the rules
of a contract market or derivatives transaction execution facility</quote> and
inserting <quote>, security futures product, or swap</quote>;</text>
</clause><clause id="ID5a0429f163b840dd81751ea034b28d84"><enum>(ii)</enum><text>by
redesignating subclauses (II) and (III) as subclauses (III) and (IV);</text>
</clause><clause id="ID2beb9ce9cc1643bfa37b440907f826a9"><enum>(iii)</enum><text>by
inserting after subclause (I) the following:</text>
<quoted-block display-inline="no-display-inline" id="idE15AFDFC6D974742BFD87B95994C8A81" style="OLC">
<subclause id="id9471E91F6E524A24B8E6608405A08FF8"><enum>(II)</enum><text>any agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i)</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="id033706083A2E478883FF8E1AE104B108"><enum>(iv)</enum><text>in
subclause (IV) (as so redesignated), by striking <quote>or</quote> ;</text>
</clause></subparagraph><subparagraph id="id8A5F3B5923204F1BBD5D23F98008E794"><enum>(B)</enum><text>in clause (ii),
by striking the period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph id="ID025c73e09d74453c9891a305c94be2d7"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8A1216EB40964C4591F5A935120F2F35" style="OLC">
<clause id="id7483B42AD97E4D05B1AC9BBDF08A0291"><enum>(iii)</enum><text>is
registered with the Commission as a commodity trading advisor; or</text>
</clause><clause id="idCEC9FA94AF934E4294EB2FEC9304023A"><enum>(iv)</enum><text>the
Commission, by rule or regulation, may include if the Commission determines
that the rule or regulation will effectuate the purposes of this
Act.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id46FD9989A0FC492EAC55EFE5BEF8F040"><enum>(8)</enum><text>in paragraph (17)
(as redesignated by paragraph (1)), in subparagraph (A), in the matter
preceding clause (i), by striking <quote>paragraph (12)(A)</quote> and
inserting <quote>paragraph (18)(A)</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="id964620ADE6CE42DBA05F6DB00FC53FF4"><enum>(9)</enum><text>in paragraph (18)
(as redesignated by paragraph (1))—</text>
<subparagraph display-inline="no-display-inline" id="id79B3CBBD9D7E48DA88BD2F80F8BB8960"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause display-inline="no-display-inline" id="id0DCB10BF354E42AE9172ED17794A2846"><enum>(i)</enum><text>in the matter
following clause (vii)(III)—</text>
<subclause display-inline="no-display-inline" id="idD8318DE7C767429AB98AE0DFAF24E566"><enum>(I)</enum><text>by striking
<quote>section 1a (11)(A)</quote> and inserting <quote>paragraph
(17)(A)</quote>; and</text>
</subclause><subclause display-inline="no-display-inline" id="id6C2A3DAE61734343B5E5A9A5D17B1B05"><enum>(II)</enum><text>by striking
<quote>$25,000,000</quote> and inserting <quote>$50,000,000</quote>; and</text>
</subclause></clause><clause display-inline="no-display-inline" id="id968F3962420648F8AB13138A2BD398F8"><enum>(ii)</enum><text>in clause (xi),
in the matter preceding subclause (I), by striking <quote>total assets in an
amount</quote> and inserting <quote>amounts invested on a discretionary basis,
the aggregate of which is</quote>;</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id80D8A366E7A44181B5F5D1AF254B2732"><enum>(10)</enum><text>by striking
paragraph (22) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id7755931DD3624378B813DF94F381868F" style="OLC">
<paragraph id="ID3749e96d45084fb798ba593043fcc38c"><enum>(22)</enum><header>Floor
broker</header>
<subparagraph id="ID07872326b1d74eac81677de619ecb6d9"><enum>(A)</enum><header>In
general</header><text>The term <term>floor broker</term> means any
person—</text>
<clause id="IDf46744bedbef46dfa4a1d0cc56997c89"><enum>(i)</enum><text>who,
in or surrounding any pit, ring, post, or other place provided by a contract
market for the meeting of persons similarly engaged, shall purchase or sell for
any other person—</text>
<subclause id="ID1d2f1e353e5c41569af3a860dfc1ef1b"><enum>(I)</enum><text>any commodity for
future delivery, security futures product, or swap; or</text>
</subclause><subclause id="IDcc0b86211e5f401492aa7844a889a576"><enum>(II)</enum><text>any commodity
option authorized under section 4c; or</text>
</subclause></clause><clause id="ID883d606e5f9d4aa6b33f8a30a10cc1ea"><enum>(ii)</enum><text>who
is registered with the Commission as a floor broker.</text>
</clause></subparagraph><subparagraph id="ID13b266597e5e4448ba32c27689f3b291"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>floor broker</term> any person in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged who trades for any other person if
the Commission determines that the rule or regulation will effectuate the
purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id753EB7CD85554A83AFB73787C019016A"><enum>(11)</enum><text>by striking
paragraph (23) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id24890D9761FD41CF979B077BAF0E7E50" style="OLC">
<paragraph id="ID6ffc8610a9cc4cb5aabcb667a5a1478d"><enum>(23)</enum><header>Floor
trader</header>
<subparagraph id="ID67e9e96634604042b1d53205605b6260"><enum>(A)</enum><header>In
general</header><text>The term <term>floor trader</term> means any
person—</text>
<clause id="IDd100ee71dfe84e769f0b3f265f5094e6"><enum>(i)</enum><text>who,
in or surrounding any pit, ring, post, or other place provided by a contract
market for the meeting of persons similarly engaged, purchases, or sells solely
for such person’s own account—</text>
<subclause id="IDadeb8a747e424582b9ef4b2407dda7c3"><enum>(I)</enum><text>any commodity for
future delivery, security futures product, or swap; or</text>
</subclause><subclause id="IDd8ac7dc346584da59e7a887afd64e820"><enum>(II)</enum><text>any commodity
option authorized under section 4c; or</text>
</subclause></clause><clause id="ID064f8a25f48e4423aed937b792c7c276"><enum>(ii)</enum><text>who
is registered with the Commission as a floor trader.</text>
</clause></subparagraph><subparagraph id="ID0ec407ea7c7a4964bae437a4f50a7350"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>floor trader</quote> any person in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged who trades solely for such
person’s own account if the Commission determines that the rule or regulation
will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="idDAD8F54ABA6B4CCCA1EA55536AA37127"><enum>(12)</enum><text>by inserting
after paragraph (23) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="id79031FCC199A486E87C989F3080C5DB1" style="OLC">
<paragraph id="HBD8FD18474DE45FC90DD417978A256EC"><enum>(24)</enum><header>Foreign
exchange forward</header><text>The term <term>foreign exchange forward</term>
means a transaction that solely involves the exchange of 2 different currencies
on a specific future date at a fixed rate agreed upon on the inception of the
contract covering the exchange.</text>
</paragraph><paragraph id="HBAEADDF1393C4AC1B9285A2C43D454A5"><enum>(25)</enum><header>Foreign
exchange swap</header><text>The term <term>foreign exchange swap</term> means a
transaction that solely involves—</text>
<subparagraph id="id31428AF10C864713AA1C883574BB2D2F"><enum>(A)</enum><text>an exchange of 2
different currencies on a specific date at a fixed rate that is agreed upon on
the inception of the contract covering the exchange; and</text>
</subparagraph><subparagraph id="id3378CB2C2E0E4A72AD43955DA42A011A"><enum>(B)</enum><text>a reverse
exchange of the 2 currencies described in subparagraph (A) at a later date and
at a fixed rate that is agreed upon on the inception of the contract covering
the
exchange.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id7678360699FA4146A5646BEA1405A3B5"><enum>(13)</enum><text>by striking
paragraph (28) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id1EB1CBB48C27427BA4DE372F00369A2E" style="OLC">
<paragraph id="ID449121883ced4efb8eca99e3ee52c6fb"><enum>(28)</enum><header>Futures
commission merchant</header>
<subparagraph id="IDfb3a8f90737d43aab9f87b3b670a6974"><enum>(A)</enum><header>In
general</header><text>The term <term>futures commission merchant</term> means
an individual, association, partnership, corporation, or trust—</text>
<clause id="ID96aa492be2994c4aa66d10be7638d328"><enum>(i)</enum><text>that—</text>
<subclause id="ID4a9c2f87d8e44ddf83e4f6cc26675c58"><enum>(I)</enum><text>is
engaged in soliciting or in accepting orders for—</text>
<item id="ID756608b0e5a94b0dbe851cb07ee576c0"><enum>(aa)</enum><text>the
purchase or sale of a commodity for future delivery;</text>
</item><item id="ID0fc412cc1e9047d18ea6bd3b9f1f7fb1"><enum>(bb)</enum><text>a
security futures product;</text>
</item><item id="IDfb617108a2e441c9a94e98bc839754a7"><enum>(cc)</enum><text>a
swap;</text>
</item><item id="IDa619b50e672448d09078ff6373dd3a54"><enum>(dd)</enum><text>any
agreement, contract, or transaction described in section 2(c)(2)(C)(i) or
section 2(c)(2)(D)(i);</text>
</item><item id="IDdd219882ad40477ba8449a026f6b882f"><enum>(ee)</enum><text>any
commodity option authorized under section 4c; or</text>
</item><item id="ID4bfd042a3090412ab9a171bddbe98fac"><enum>(ff)</enum><text>any
leverage transaction authorized under section 19; or</text>
</item></subclause><subclause id="IDccc8d50424814d9aa9bceb95492eb75d"><enum>(II)</enum><text>is acting as a
counterparty in any agreement, contract, or transaction described in section
2(c)(2)(C)(i) or section 2(c)(2)(D)(i); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID611c6359feaf43898fc11b5bcef1a7ee"><enum>(III)</enum><text display-inline="yes-display-inline">in or in connection with the activities
described in subclause (I) or (II), accepts any money, securities, or property
(or extends credit in lieu thereof) to margin, guarantee, or secure any trades
or contracts that result or may result therefrom; or</text>
</subclause></clause><clause id="IDc26c603aec4643418c8b439ae7354c1c"><enum>(ii)</enum><text>that
is registered with the Commission as a futures commission merchant.</text>
</clause></subparagraph><subparagraph id="IDc39df3630d0d47a1a93e45a627206056"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>futures commission merchant</quote>
any person who engages in soliciting or accepting orders for, or acting as a
counterparty in, any agreement, contract, or transaction subject to this Act,
and who accepts any money, securities, or property (or extends credit in lieu
thereof) to margin, guarantee, or secure any trades or contracts that result or
may result therefrom, if the Commission determines that the rule or regulation
will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id31400F361CCC40AD907E2A315336B8EB"><enum>(14)</enum><text>in paragraph
(30) (as redesignated by paragraph (1)), in subparagraph (B), by striking
<quote>state</quote> and inserting <quote>State</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="idA6553CFC3E5541F28B9CDC2988BFEC60"><enum>(15)</enum><text>by striking
paragraph (31) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id87AED6CE3FD941668E3C6371A69EAE02" style="OLC">
<paragraph id="ID5da0456a236a47169f880bdead7d1d16"><enum>(31)</enum><header>Introducing
broker</header>
<subparagraph id="ID0c110674f44947218f7aeb90a73b8579"><enum>(A)</enum><header>In
general</header><text>The term <term>introducing broker</term> means any person
(except an individual who elects to be and is registered as an associated
person of a futures commission merchant)—</text>
<clause id="ID3815975f119a4fe5bdfd62a9fe0a6650"><enum>(i)</enum><text>who—</text>
<subclause id="ID45a8620d7c294c2382df0dbb4a4eaf27"><enum>(I)</enum><text>is
engaged in soliciting or in accepting orders for—</text>
<item id="ID54d855c50e524d42858e20a76e5f7cef"><enum>(aa)</enum><text>the
purchase or sale of any commodity for future delivery, security futures
product, or swap;</text>
</item><item id="ID100e3328a2e1440885c4ac30461548af"><enum>(bb)</enum><text>any
agreement, contract, or transaction described in section 2(c)(2)(C)(i) or
section 2(c)(2)(D)(i);</text>
</item><item id="ID57d98ab52008492684787fef4c54113b"><enum>(cc)</enum><text>any
commodity option authorized under section 4c; or</text>
</item><item id="ID67611a29b15e4691a3dcb8a604ef09c1"><enum>(dd)</enum><text>any
leverage transaction authorized under section 19; and</text>
</item></subclause><subclause id="IDb82c0ea5ae734c50bf11c385054bd6fe"><enum>(II)</enum><text>does not accept
any money, securities, or property (or extend credit in lieu thereof) to
margin, guarantee, or secure any trades or contracts that result or may result
therefrom; or</text>
</subclause></clause><clause id="ID1f45b535158b4b73af9acf79225e2426"><enum>(ii)</enum><text>who
is registered with the Commission as an introducing broker.</text>
</clause></subparagraph><subparagraph id="ID234eade5bddd48d196bdc0f2c38d2f32"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>introducing broker</quote> any person
who engages in soliciting or accepting orders for any agreement, contract, or
transaction subject to this Act, and who does not accept any money, securities,
or property (or extend credit in lieu thereof) to margin, guarantee, or secure
any trades or contracts that result or may result therefrom, if the Commission
determines that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id72A8A700D5464B9B879082CC8A759859"><enum>(16)</enum><text>by inserting
after paragraph (31) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="id3EB336A043554A25AE3C5513B9F73950" style="OLC">
<paragraph id="idD12FAF407BFF4106881ADFEC16DBB0B3"><enum>(32)</enum><header>Major
security-based swap participant</header><text>The term <term>major
security-based swap participant</term> has the meaning given the term in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph commented="no" id="IDfde7cca54c004290b5c34aa15a7f1b47"><enum>(33)</enum><header>Major swap
participant</header>
<subparagraph commented="no" id="IDaf0b78e4b87543479e546e7ec9dcbaa7"><enum>(A)</enum><header>In
general</header><text>The term <term>major swap participant</term> means any
person who is not a swap dealer, and—</text>
<clause id="idB3B4BF9AF87F4D5DB99108F15C04B727"><enum>(i)</enum><text>maintains a
substantial position in swaps for any of the major swap categories as
determined by the Commission, excluding—</text>
<subclause id="id8D824CD852B14DB6BBC438631EC279B8"><enum>(I)</enum><text>positions held
for hedging or mitigating commercial risk; and</text>
</subclause><subclause id="id14C9212CD2F94F6EB39E1F59C0F48C5D"><enum>(II)</enum><text>positions
maintained by any employee benefit plan (or any contract held by such a plan)
as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002) for the primary purpose of hedging
or mitigating any risk directly associated with the operation of the plan;
or</text>
</subclause></clause><clause commented="no" id="ID117afd5e9cd9454ba6ac9d0c2323a4ca"><enum>(ii)</enum><text>whose
outstanding swaps create substantial counterparty exposure that could have
serious adverse effects on the financial stability of the United States banking
system or financial markets; or</text>
</clause><clause id="id94088031F4504753AAB4B61ADBBC99AC"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB7CBC9B981524FC0AED76452316E8440"><enum>(I)</enum><text>is a financial entity,
other than an entity predominantly engaged in providing financing for the
purchase of an affiliate’s merchandise or manufactured goods, that is highly
leveraged relative to the amount of capital it holds; and</text>
</subclause><subclause id="id9B4E9387A02942FE931D33B7A03921FB" indent="up1"><enum>(II)</enum><text>maintains a substantial position in
outstanding swaps in any major swap category as determined by the
Commission.</text>
</subclause></clause></subparagraph><subparagraph id="ID8844081c88554fa49fb039c2c8eaf07f"><enum>(B)</enum><header>Definition of
substantial position</header><text>For purposes of subparagraph (A), the
Commission shall define by rule or regulation the term <term>substantial
position</term> at the threshold that the Commission determines to be prudent
for the effective monitoring, management, and oversight of entities that are
systemically important or can significantly impact the financial system of the
United States.</text>
</subparagraph><subparagraph id="ID53e8ed7fc0ab40b78f3500125fc1dd02"><enum>(C)</enum><header>Scope of
designation</header><text>For purposes of subparagraph (A), a person may be
designated as a major swap participant for 1 or more categories of swaps
without being classified as a major swap participant for all classes of
swaps.</text>
</subparagraph><subparagraph id="IDdcdd7d2613ef42b5ada67a4370c0894c"><enum>(D)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a major swap
participant for a single type or single class or category of swaps or
activities, the prudential regulator and the Commission shall take into account
the risks associated with other types of swaps or classes of swaps or
categories of swaps engaged in and the other activities conducted by that
person that are not otherwise subject to regulation applicable to that person
by virtue of the status of the person as a major swap
participant.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id255E9E973CAD4F84AE9311EEFAEEA7C8"><enum>(17)</enum><text>by inserting
after paragraph (38) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="id6C9047C1CC1E4DDFABB8BE2DF69FB5C5" style="OLC">
<paragraph id="IDbcc20afd95c04ecf8889d8a6bcefc51a"><enum>(39)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term>
means—</text>
<subparagraph id="ID491ab78e511743e79cbc6252ec563cb0"><enum>(A)</enum><text>the Office of the
Comptroller of the Currency, in the case of—</text>
<clause id="ID5e2fad5001c84b6e8c66cc8c5e321680"><enum>(i)</enum><text>any
national banking association;</text>
</clause><clause id="IDf7b42c3f37684b8d8a466475a7898bf6"><enum>(ii)</enum><text>any
Federal branch or agency of a foreign bank; or</text>
</clause><clause id="IDfc482ea7a85d42cb9c90e4656248614e"><enum>(iii)</enum><text>any
Federal savings association;</text>
</clause></subparagraph><subparagraph id="ID2a753cefc6c3415a93683baa9482976f"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation, in the case of—</text>
<clause id="IDcb0a9ab813cb4c81ae6e2cd0bc2905e1"><enum>(i)</enum><text>any
insured State bank;</text>
</clause><clause id="IDcdb06fcda31c4988ba24e99a776a9ffd"><enum>(ii)</enum><text>any
foreign bank having an insured branch; or</text>
</clause><clause id="IDf311418b3d1d4687b994401bec82024d"><enum>(iii)</enum><text>any
State savings association;</text>
</clause></subparagraph><subparagraph id="ID574c8d38eb31478cbc6bde77a9724752"><enum>(C)</enum><text>the Board of
Governors of the Federal Reserve System, in the case of—</text>
<clause id="IDef9e822569d94f4f8b4d98f9e49fb68d"><enum>(i)</enum><text>any
noninsured State member bank;</text>
</clause><clause id="ID7d447dc1ac8945e381dd2c451e0ce806"><enum>(ii)</enum><text>any
branch or agency of a foreign bank with respect to any provision of the Federal
Reserve Act (12 U.S.C. 221 et seq.) which is made applicable under the
International Banking Act of 1978 (12 U.S.C. 3101 et seq.);</text>
</clause><clause id="ID12883a84b7b0481a8776ce9ca40c0318"><enum>(iii)</enum><text>any
foreign bank which does not operate an insured branch;</text>
</clause><clause id="IDa8952f0cf4d64aeca393afb2de7cb9ef"><enum>(iv)</enum><text>any
agency or commercial lending company other than a Federal agency; or</text>
</clause><clause id="IDbdf9b253706344a7b7f7682f09e8778c"><enum>(v)</enum><text>supervisory or
regulatory proceedings arising from the authority given to the Board of
Governors under section 7(c)(1) of the International Banking Act of 1978 (12
U.S.C. 3105(c)(1)), including such proceedings under the Financial Institutions
Supervisory Act of 1966 (12 U.S.C. 1464 et seq.); and</text>
</clause></subparagraph><subparagraph id="ID787a86ba066b406fbb16791ca449c14e"><enum>(D)</enum><text>the Farm Credit
Administration, in the case of a swap dealer, major swap participant,
security-based swap dealer, or major security-based swap participant that is an
institution chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et
seq.).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3618AE4DE9E64A00BD2D46B8FB177FC4"><enum>(18)</enum><text>in
paragraph (40) (as redesignated by paragraph (1))—</text>
<subparagraph id="HB7C53BE37FF549529B90A43F0C0F200E"><enum>(A)</enum><text>by
striking subparagraph (B);</text>
</subparagraph><subparagraph id="id9AAC06C68E8843BA819FECDB317E35EB"><enum>(B)</enum><text>by redesignating
subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (F),
respectively;</text>
</subparagraph><subparagraph id="idFF4F6AEF47FE489889E0E8AC7671A99F"><enum>(C)</enum><text>in subparagraph
(C) (as so redesignated), by striking <quote>and</quote>;</text>
</subparagraph><subparagraph id="HEB501D08A96548C4AA4783EA0B710F9B"><enum>(D)</enum><text>by
inserting after subparagraph (C) (as so redesignated) the following:</text>
<quoted-block id="H00DA67270C6A4CDFA8EF8A01DF360606" style="OLC">
<subparagraph id="HE502AA124E9C4C05A490462374D91507"><enum>(D)</enum><text>a swap execution
facility registered under section 5h;</text>
</subparagraph><subparagraph id="H627CF94ADBE74C13AA41B7D2B2C94BD0"><enum>(E)</enum><text>a swap data
repository; and</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id47F54FE0615B49B59F368BB7B34ECA1A"><enum>(19)</enum><text>by
inserting after paragraph (41) (as redesignated by paragraph (1)) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id30CD0FE968924993B69897C75C0AF9BD" style="OLC">
<paragraph display-inline="no-display-inline" id="H34EACB70F624493F96A8F64E94AC0912"><enum>(42)</enum><header>Security-based
swap</header><text display-inline="yes-display-inline">The term
<term>security-based swap</term> has the meaning given the term in section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph display-inline="no-display-inline" id="idE3FFE8A2DE9C4031BFA219676D346458"><enum>(43)</enum><header>Security-based
swap dealer</header><text display-inline="yes-display-inline">The term
<term>security-based swap dealer</term> has the meaning given the term in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H2976F5A6011D4D17964F62E1FA80A910"><enum>(20)</enum><text display-inline="yes-display-inline">in paragraph (46) (as redesignated by
paragraph (1)), by striking <quote>subject to section 2(h)(7)</quote> and
inserting <quote>subject to section 2(h)(5)</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="id6849182A360C4FCFB6F1F97C4C5160E4"><enum>(21)</enum><text display-inline="yes-display-inline">by inserting after paragraph (46) (as
redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A5829096F8242A7850E1E208BD4DF83" style="OLC">
<paragraph id="ID1a87a63938e045df9691421c59422ee9"><enum>(47)</enum><header>Swap</header>
<subparagraph id="ID92fd7258e0ff45efaf2b18fcc115174b"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>swap</term> means any agreement, contract, or transaction—</text>
<clause id="IDb31aac84de8a41a9afa92c7061cccd83"><enum>(i)</enum><text>that
is a put, call, cap, floor, collar, or similar option of any kind that is for
the purchase or sale, or based on the value, of 1 or more interest or other
rates, currencies, commodities, securities, instruments of indebtedness,
indices, quantitative measures, or other financial or economic interests or
property of any kind;</text>
</clause><clause id="ID0c2311460abe499783c0a7788a99b3d5"><enum>(ii)</enum><text>that
provides for any purchase, sale, payment, or delivery (other than a dividend on
an equity security) that is dependent on the occurrence, nonoccurrence, or the
extent of the occurrence of an event or contingency associated with a potential
financial, economic, or commercial consequence;</text>
</clause><clause id="ID698861d8583544ae9ec65717fe63cc64"><enum>(iii)</enum><text>that provides
on an executory basis for the exchange, on a fixed or contingent basis, of 1 or
more payments based on the value or level of 1 or more interest or other rates,
currencies, commodities, securities, instruments of indebtedness, indices,
quantitative measures, or other financial or economic interests or property of
any kind, or any interest therein or based on the value thereof, and that
transfers, as between the parties to the transaction, in whole or in part, the
financial risk associated with a future change in any such value or level
without also conveying a current or future direct or indirect ownership
interest in an asset (including any enterprise or investment pool) or liability
that incorporates the financial risk so transferred, including any agreement,
contract, or transaction commonly known as—</text>
<subclause id="id1C2F01338F78413F809A612375D122E2"><enum>(I)</enum><text>an
interest rate swap;</text>
</subclause><subclause id="id660B51B406024D7E8F25EE1638C214C4"><enum>(II)</enum><text>a
rate floor;</text>
</subclause><subclause id="id0EB1EE4534804AC2852AA1F3B9D84CE7"><enum>(III)</enum><text>a rate
cap;</text>
</subclause><subclause id="id38F8BD25B2F8486AAB4C9B738008544F"><enum>(IV)</enum><text>a
rate collar;</text>
</subclause><subclause id="id52DD4599312B4DFCB08D00E7D679EA4D"><enum>(V)</enum><text>a
cross-currency rate swap;</text>
</subclause><subclause id="id753B6D426C794179AAA25129A478A1AE"><enum>(VI)</enum><text>a
basis swap;</text>
</subclause><subclause id="id11B25DAE9F1648FDA691920D1EF49EF9"><enum>(VII)</enum><text>a currency
swap;</text>
</subclause><subclause id="id0A0D4FABDAE949EEA2D913F74A236E89"><enum>(VIII)</enum><text>a foreign
exchange swap;</text>
</subclause><subclause id="id217A31BE9A0641B0B75B1873AC605D84"><enum>(IX)</enum><text>a
total return swap;</text>
</subclause><subclause id="id8D0DC445DB8B4BE5A16F7F402113DA8E"><enum>(X)</enum><text>an
equity index swap;</text>
</subclause><subclause id="idF5C191AF38B3485986049B321093BE40"><enum>(XI)</enum><text>an equity
swap;</text>
</subclause><subclause id="id6751E709897C45AF860127005901734D"><enum>(XII)</enum><text>a debt index
swap;</text>
</subclause><subclause id="idE6D409BDDE7F4F4FAAC066167A13450B"><enum>(XIII)</enum><text>a debt
swap;</text>
</subclause><subclause id="id21010053E1F84A9CB567AA44BF23ABBC"><enum>(XIV)</enum><text>a credit
spread;</text>
</subclause><subclause id="id6447E222B0B447E8AF315C9167973B88"><enum>(XV)</enum><text>a
credit default swap;</text>
</subclause><subclause id="id2E288F33CCB145E6A4E8286A0D74AF4C"><enum>(XVI)</enum><text>a credit
swap;</text>
</subclause><subclause id="id81DDEC98113844A08C208FB1B602BB9A"><enum>(XVII)</enum><text>a weather
swap;</text>
</subclause><subclause id="id6DBF6B79E6C04478AE7E7FFFD2D4AA01"><enum>(XVIII)</enum><text>an energy
swap;</text>
</subclause><subclause id="id2F35A914396643AAB30546282BFBEFC1"><enum>(XIX)</enum><text>a metal
swap;</text>
</subclause><subclause id="idA4EBE1CFEB4540AEBD9401E5E13CDF0A"><enum>(XX)</enum><text>an agricultural
swap;</text>
</subclause><subclause id="idEA71CE88B3BA4B3D91D0A2E79D8B4BF2"><enum>(XXI)</enum><text>an emissions
swap; and</text>
</subclause><subclause id="id20287223C0EE42619134CCE2F747876E"><enum>(XXII)</enum><text>a commodity
swap;</text>
</subclause></clause><clause id="IDddebe056921149f8b5a9e146e5a7377d"><enum>(iv)</enum><text>that
is an agreement, contract, or transaction that is, or in the future becomes
commonly known to the trade as a swap;</text>
</clause><clause id="ID40d20eb87e3f4569a119ebf7eb9e52d1"><enum>(v)</enum><text>including any
security-based swap agreement which meets the definition of <quote>swap
agreement</quote> as defined in section 206A of the Gramm-Leach-Bliley Act (15
U.S.C. 78c note) of which a material term is based on the price, yield, value,
or volatility of any security or any group or index of securities, or any
interest therein; or</text>
</clause><clause id="IDcc4455d44a5442b1afae1d8b8781dea7"><enum>(vi)</enum><text>that
is any combination or permutation of, or option on, any agreement, contract, or
transaction described in any of clauses (i) through (v).</text>
</clause></subparagraph><subparagraph id="ID749210a188084acba142d2a0e6bd9a08"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>swap</term> does not include—</text>
<clause id="ID291aa5b11b214d4692c6adf49b7ff3f1"><enum>(i)</enum><text>any
contract of sale of a commodity for future delivery (or option on such a
contract), leverage contract authorized under section 19, security futures
product, or agreement, contract, or transaction described in section
2(c)(2)(C)(i) or section 2(c)(2)(D)(i);</text>
</clause><clause id="IDa21c45d9528343808eaff47463de7cc7"><enum>(ii)</enum><text>any
sale of a nonfinancial commodity or security for deferred shipment or delivery,
so long as the transaction is intended to be physically settled;</text>
</clause><clause id="ID0189205e2c8448ea89d76c62e302850b"><enum>(iii)</enum><text>any
put, call, straddle, option, or privilege on any security, certificate of
deposit, or group or index of securities, including any interest therein or
based on the value thereof, that is subject to—</text>
<subclause id="id510EABF6F24643A5B45482EB1B0ECA19"><enum>(I)</enum><text>the Securities
Act of 1933 (15 U.S.C. 77a et seq.); and</text>
</subclause><subclause id="id5BF637D54EDF4AFCA05D7F1155944487"><enum>(II)</enum><text>the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</subclause></clause><clause id="IDdb30ef80d1924b5daa575e3189fbdb2e"><enum>(iv)</enum><text>any
put, call, straddle, option, or privilege relating to a foreign currency
entered into on a national securities exchange registered pursuant to section
6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(a));</text>
</clause><clause id="ID5c730d286e92412b9f78d49104d9253d"><enum>(v)</enum><text>any
agreement, contract, or transaction providing for the purchase or sale of 1 or
more securities on a fixed basis that is subject to—</text>
<subclause id="id831C5A61CC4142F18B1CD8E5EAE347E6"><enum>(I)</enum><text>the Securities
Act of 1933 (15 U.S.C. 77a et seq.); and</text>
</subclause><subclause id="id7C5D0E3C7C334EB9975164A0A50CAC3A"><enum>(II)</enum><text>the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</subclause></clause><clause id="ID10f24d86b11b4c7488acfd7c0dde8ec2"><enum>(vi)</enum><text>any
agreement, contract, or transaction providing for the purchase or sale of 1 or
more securities on a contingent basis that is subject to the Securities Act of
1933 (15 U.S.C. 77a et seq.) and the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.), unless the agreement, contract, or transaction predicates the
purchase or sale on the occurrence of a bona fide contingency that might
reasonably be expected to affect or be affected by the creditworthiness of a
party other than a party to the agreement, contract, or transaction;</text>
</clause><clause id="ID407d4186598b4406b10718537e775a38"><enum>(vii)</enum><text>any
note, bond, or evidence of indebtedness that is a security, as defined in
section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a));</text>
</clause><clause id="IDf004f362df4d489ea8ebc79788d1ed12"><enum>(viii)</enum><text>any agreement,
contract, or transaction that is—</text>
<subclause id="ID79562824c83947aa85be00f0214e4431"><enum>(I)</enum><text>based on a
security; and</text>
</subclause><subclause id="IDb36a4773cfd54511934621a389312972"><enum>(II)</enum><text>entered into
directly or through an underwriter (as defined in section 2(a) of the
Securities Act of 1933 (15 U.S.C. 77b(a))) by the issuer of such security for
the purposes of raising capital, unless the agreement, contract, or transaction
is entered into to manage a risk associated with capital raising;</text>
</subclause></clause><clause id="ID7f102f99a2f147d887ca173cc18fdcf2"><enum>(ix)</enum><text>any
agreement, contract, or transaction a counterparty of which is a Federal
Reserve bank, the Federal Government, or a Federal agency that is expressly
backed by the full faith and credit of the United States; and</text>
</clause><clause id="ID2368074b9e104c468ba14b0796c3e939"><enum>(x)</enum><text>any
security-based swap, other than a security-based swap as described in
subparagraph (D).</text>
</clause></subparagraph><subparagraph id="ID98025699b3a64fe49ef5022ec471a74a"><enum>(C)</enum><header>Rule of
construction regarding master agreements</header>
<clause id="id81F9A5BB5A3D4864818B36EA32D344B7"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), the term
<term>swap</term> includes a master agreement that provides for an agreement,
contract, or transaction that is a swap under subparagraph (A), together with
each supplement to any master agreement, without regard to whether the master
agreement contains an agreement, contract, or transaction that is not a swap
pursuant to subparagraph (A).</text>
</clause><clause id="idD9383FFF25D1427BB51575B5C3353AA8"><enum>(ii)</enum><header>Exception</header><text>For
purposes of clause (i), the master agreement shall be considered to be a swap
only with respect to each agreement, contract, or transaction covered by the
master agreement that is a swap pursuant to subparagraph (A).</text>
</clause></subparagraph><subparagraph id="ID79573fd59a9643f496e149971df7947a"><enum>(D)</enum><header>Mixed
swap</header><text>The term <term>security-based swap</term> includes any
agreement, contract, or transaction that is as described in section 3(a)(68)(A)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)(A)) and also is
based on the value of 1 or more interest or other rates, currencies,
commodities, instruments of indebtedness, indices, quantitative measures, other
financial or economic interest or property of any kind (other than a single
security or a narrow-based security index), or the occurrence, non-occurrence,
or the extent of the occurrence of an event or contingency associated with a
potential financial, economic, or commercial consequence (other than an event
described in subparagraph (A)(iii)).</text>
</subparagraph><subparagraph id="ID786919a62dca409387703a2b1a71778c"><enum>(E)</enum><header>Treatment of
foreign exchange swaps and forwards</header>
<clause id="ID869d97ca5fe94ff584d857ce53bf903d"><enum>(i)</enum><header>In
general</header><text>Foreign exchange swaps and foreign exchange forwards
shall be considered swaps under this paragraph unless the Secretary makes a
written determination that either foreign exchange swaps or foreign exchange
forwards or both—</text>
<subclause id="ID692dfe07b6744513a0b5b725fd660793"><enum>(I)</enum><text>should be not be
regulated as swaps under this Act; and</text>
</subclause><subclause id="IDf534e9ed043c467090bf7355a7afec70"><enum>(II)</enum><text>are not
structured to evade the <short-title>Wall Street
Transparency and Accountability Act of 2010</short-title> in violation of any
rule promulgated by the Commission pursuant to section 111(c) of that
Act.</text>
</subclause></clause><clause id="IDe323c07a91d34b998c4010a1fa8a23ad"><enum>(ii)</enum><header>Congressional
notice; effectiveness</header><text>The Secretary shall submit any written
determination under clause (i) to the appropriate committees of Congress,
including the Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committee on Agriculture of the House of Representatives. Any such
written determination by the Secretary shall not be effective until it is
submitted to the appropriate committees of Congress.</text>
</clause><clause id="IDf4b394e306fc47629f9160408513e42b"><enum>(iii)</enum><header>Reporting</header><text>Notwithstanding
a written determination by the Secretary under clause (i), all foreign exchange
swaps and foreign exchange forwards shall be reported to either a swap data
repository, or, if there is no swap data repository that would accept such
swaps or forwards, to the Commission pursuant to section 4r within such time
period as the Commission may by rule or regulation prescribe.</text>
</clause><clause id="ID8f4f3ef41de348a183dcc395c682a310"><enum>(iv)</enum><header>Business
standards</header><text>Notwithstanding clauses (ix) and (x) of subparagraph
(B) and clause (ii), any party to a foreign exchange swap or forward that is a
swap dealer or major swap participant shall conform to the business conduct
standards contained in section 4s(h).</text>
</clause><clause id="IDe38af50932b7409cb0151061e3a8ba8f"><enum>(v)</enum><header>Secretary</header><text>For
purposes of this subparagraph only, the term <term>Secretary</term> means the
Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph id="IDd055a33b173f466a9e0825e8640c1b59"><enum>(F)</enum><header>Exception for
certain foreign exchange swaps and forwards</header>
<clause id="ID3e16670398674e93bf4752b50be1facb"><enum>(i)</enum><header>Registered
entities</header><text>Any foreign exchange swap and any foreign exchange
forward that is listed and traded on or subject to the rules of a designated
contract market or a swap execution facility, or that is cleared by a
derivatives clearing organization shall not be exempt from any provision of
this Act or amendments made by the <short-title>Wall
Street Transparency and Accountability Act of 2010</short-title> prohibiting
fraud or manipulation.</text>
</clause><clause id="ID8e2cab7b2f924aec94ae0172cfde2e44"><enum>(ii)</enum><header>Retail
transactions</header><text>Nothing in subparagraph (E) shall affect, or be
construed to affect, the applicability of this Act or the jurisdiction of the
Commission with respect to agreements, contracts, or transactions in foreign
currency pursuant to section 2(c)(2).</text>
</clause></subparagraph></paragraph><paragraph id="id5DBE395AF55C4B46A11565D5E6648C5B"><enum>(48)</enum><header>Swap data
repository</header><text display-inline="yes-display-inline">The term
<term>swap data repository</term> means any person that collects, 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 id="ID61e96435f02b4d9e9d1c285f7e629944"><enum>(49)</enum><header>Swap
dealer</header>
<subparagraph id="ID11907043d4f24d239b1f9963aeec34cf"><enum>(A)</enum><header>In
general</header><text>The term <term>swap dealer</term> means any person
who—</text>
<clause id="IDc0754007cb3a45beadc671ff6cd3cef1"><enum>(i)</enum><text>holds
itself out as a dealer in swaps;</text>
</clause><clause id="ID67bed3e23169462a9f611d364f0d78ef"><enum>(ii)</enum><text>makes a market
in swaps;</text>
</clause><clause id="ID81cf9c2eabf84dc59d6b576a10b59ff0"><enum>(iii)</enum><text>regularly
engages in the purchase and sale of swaps in the ordinary course of business;
or</text>
</clause><clause id="ID370312521639493cb12de88b389b53f5"><enum>(iv)</enum><text>engages in any
activity causing the person to be commonly known in the trade as a dealer or
market maker in swaps.</text>
</clause></subparagraph><subparagraph id="IDd6b7babc608a4f50908526e60cf65fd1"><enum>(B)</enum><header>Inclusion</header><text>A
person may be designated as a swap dealer for a single type or single class or
category of swap or activities and considered not to be a swap dealer for other
types, classes, or categories of swaps or activities.</text>
</subparagraph><subparagraph id="ID8c31627c27b64fdeb8c6e879acdb1198"><enum>(C)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a swap dealer
for a single type or single class or category of swap or activities, the
prudential regulator and the Commission shall take into account the risks
associated with other types of swaps or classes of swaps or categories of swaps
engaged in and the other activities conducted by that person that are not
otherwise subject to regulation applicable to that person by virtue of the
status of the person as a swap dealer.</text>
</subparagraph><subparagraph id="ID3e3ee6db0e5f44838d9a851b91f681db"><enum>(D)</enum><header>Exception</header><text>The
term <term>swap dealer</term> does not include a person that buys or sells
swaps for such person’s own account, either individually or in a fiduciary
capacity, but not as a part of a regular business.</text>
</subparagraph></paragraph><paragraph id="id91E0AEA5517D4A1BB05E221691C9CF02"><enum>(50)</enum><header>Swap execution
facility</header><text>The term <term>swap execution facility</term> means a
facility in which multiple participants have the ability to execute or trade
swaps by accepting bids and offers made by other participants that are open to
multiple participants in the facility or system, through any means of
interstate commerce, including any trading facility, that—</text>
<subparagraph id="id24FA7C3B4B124063A92E74AE2436CCF0"><enum>(A)</enum><text>facilitates the
execution of swaps between persons; and</text>
</subparagraph><subparagraph id="id94174728A517428CB9AD199E9B3CFFFC"><enum>(B)</enum><text>is not a
designated contract market.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="idCCB84A7B957142F2AE21619780F0396D"><enum>(22)</enum><text>in paragraph
(51) (as redesignated by paragraph (1)), in subparagraph (A)(i), by striking
<quote>partipants</quote> and inserting <quote>participants</quote>.</text>
</paragraph></subsection><subsection id="ID23bf2953e4394663bd6f386557c9c754"><enum>(b)</enum><header>Authority to
define terms</header><text>The Commodity Futures Trading Commission may adopt a
rule to define—</text>
<paragraph id="id4BF797E025B64B53BE05F75CA1FA80D0"><enum>(1)</enum><text>the
term <term>commercial risk</term>; and</text>
</paragraph><paragraph id="id56AB96CDD49D4136AD090C4FA58668D0"><enum>(2)</enum><text>any
other term included in an amendment to the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C. 1 et seq.)
made by this subtitle.</text>
</paragraph></subsection><subsection id="H685CDA6D192245748B898DB3B9CD1E79"><enum>(c)</enum><header>Modification of
definitions</header><text display-inline="yes-display-inline">To include
transactions and entities that have been structured to evade this subtitle (or
an amendment made by this subtitle), the Commodity Futures Trading Commission
shall adopt a rule to further define the terms <term>swap</term>, <term>swap
dealer</term>, <term>major swap participant</term>, and <term>eligible contract
participant</term>.</text>
</subsection><subsection commented="no" id="H6CEA4455F6D4447F93FF9770129674C0"><enum>(d)</enum><header>Exemptions</header><text>Section
4(c)(1) of the Commodity Exchange Act (7 U.S.C. 6(c)(1)) is amended by striking
<quote>except that</quote> and all that follows through the period at the end
and inserting the following: “except that—</text>
<quoted-block display-inline="no-display-inline" id="id0B8E51177F314ED19005342379A44808" style="OLC">
<subparagraph commented="no" id="IDda7d968dee5d43029a978e38bc31dd1b"><enum>(A)</enum><text display-inline="yes-display-inline">unless the Commission is expressly
authorized by any provision described in this subparagraph to grant exemptions,
with respect to amendments made by subtitle A of the Wall Street Transparency
and Accountability Act of 2010—</text>
<clause commented="no" id="id5543356A18EB4D2D9C2E7F7E8BF0AFFB"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to—</text>
<subclause commented="no" id="id1C0DA2D087EC475683A6CCFD048C236D"><enum>(I)</enum><text display-inline="yes-display-inline">paragraphs (2), (3), (4), (5), and (7),
clause (vii)(III) of paragraph (17), paragraphs (23), (24), (31), (32), (38),
(39), (41), (42), (46), (47), (48), and (49) of section 1a, and sections
2(a)(13), 2(c)(D), 4a(a), 4a(b), 4d(c), 4d(d), 4r, 4s, 5b(a), 5b(b), 5(d),
5(g), 5(h), 5b(c), 5b(i), 8e, and 21; and</text>
</subclause><subclause commented="no" id="idBA01AEB485CB4473B21E68059E4A7A37"><enum>(II)</enum><text>section 206(e)
of the Gramm-Leach-Bliley Act (Public Law 106–102; 15 U.S.C. 78c note);
and</text>
</subclause></clause><clause commented="no" id="idCB14191825974D858F033E9C53D30FDB"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (c) of section 111 and
section 132; and</text>
</clause></subparagraph><subparagraph commented="no" id="id9C512A6684B540EE9047C522329A2550"><enum>(B)</enum><text>the Commission
and the Securities and Exchange Commission may by rule, regulation, or order
jointly exclude any agreement, contract, or transaction from section
2(a)(1)(D)) if the Commission determines that the exemption would be consistent
with the public
interest.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id01363679787E49E9B3B0BEDD535E199F"><enum>(e)</enum><header>Conforming
Amendments</header>
<paragraph id="id181330EA337748AEAC21ABECC7603B76"><enum>(1)</enum><text>Section
2(c)(2)(B)(i)(II) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 2(c)(2)(B)(i)(II)) is amended—</text>
<subparagraph id="id7127B12990DC454C9070121DB93CF20B"><enum>(A)</enum><text>in item
(cc)—</text>
<clause id="id5F95A0519D4641E4BE52DA8C31E4369F"><enum>(i)</enum><text>in
subitem (AA), by striking <quote>section 1a(20)</quote> and inserting
<quote>section 1a</quote>; and</text>
</clause><clause id="id308DD92E161F40A582D8BF9C7337EAB5"><enum>(ii)</enum><text>in
subitem (BB), by striking <quote>section 1a(20)</quote> and inserting
<quote>section 1a</quote>; and</text>
</clause></subparagraph><subparagraph id="id097A838257C84559AE20F92DA3330926"><enum>(B)</enum><text>in item (dd), by
striking <quote>section 1a(12)(A)(ii)</quote> and inserting <quote>section
1a(18)(A)(ii)</quote>.</text>
</subparagraph></paragraph><paragraph id="id4E3B8251F8844325AF3C9A460EEBDD43"><enum>(2)</enum><text>Section 4m(3) of
the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C.
6m(3)) is amended by striking <quote>section 1a(6)</quote> and inserting
<quote>section 1a</quote>.</text>
</paragraph><paragraph id="id026189129C5345D29B02247E10B49328"><enum>(3)</enum><text>Section 4q(a)(1)
of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7
U.S.C. 6o–1(a)(1)) is amended by striking <quote>section 1a(4)</quote> and
inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="idB81751AB49F3464EA5D836A0B9554DE6"><enum>(4)</enum><text>Section 5(e)(1)
of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7
U.S.C. 7(e)(1)) is amended by striking <quote>section 1a(4)</quote> and
inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="id5CE628D5F0184DE18918767B10366822"><enum>(5)</enum><text>Section
5a(b)(2)(F) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 7a(b)(2)(F)) is amended by striking <quote>section
1a(4)</quote> and inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="idD280ADB57E364F37B36805F98E77B708"><enum>(6)</enum><text>Section 5b(a) of
the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C.
7a–1(a)) is amended, in the matter preceding paragraph (1), by striking
<quote>section 1a(9)</quote> and inserting <quote>section 1a</quote>.</text>
</paragraph><paragraph id="id6A92AEA984FD40A4BBEEA53DA0299C9A"><enum>(7)</enum><text>Section
5c(c)(2)(B) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 7a–2(c)(2)(B)) is amended by striking <quote>section
1a(4)</quote> and inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="id48EC6BEC1D7D4522993674C0EE3AC60B"><enum>(8)</enum><text>Section
6(g)(5)(B)(i) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(g)(5)(B)(i)) is amended—</text>
<subparagraph id="idB3E0A2DBAF8A43919A7860D6D7E2F9D0"><enum>(A)</enum><text>in subclause (I),
by striking <quote>section 1a(12)(B)(ii)</quote> and inserting <quote>section
1a(18)(B)(ii)</quote>; and</text>
</subparagraph><subparagraph id="id1CDC9D02B257438A975141DAF960BEA0"><enum>(B)</enum><text>in subclause
(II), by striking <quote>section 1a(12)</quote> and inserting <quote>section
1a(18)</quote>.</text>
</subparagraph></paragraph><paragraph id="id5BCAE89895D84668BA9F4FA4C91949BE"><enum>(9)</enum><text>The
Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27 et seq.) is
amended—</text>
<subparagraph id="id5B3360CECDC24B2A910198E6C8A2A87B"><enum>(A)</enum><text>in section
402—</text>
<clause id="id63761E22106D4BC6ACC12CE02EEB0FA1"><enum>(i)</enum><text>in
subsection (a)(7), by striking <quote>section 1a(20)</quote> and inserting
<quote>section 1a</quote>;</text>
</clause><clause id="idA61F2D1DCD8A453296D9BBE8C48080E8"><enum>(ii)</enum><text>in
subsection (b)(2), by striking <quote>section 1a(12)</quote> and inserting
<quote>section 1a</quote>;</text>
</clause><clause id="idAC92AD2A17DC4ECAAEA2AC6867B94FE8"><enum>(iii)</enum><text>in
subsection (c), by striking <quote>section 1a(4)</quote> and inserting
<quote>section 1a</quote>; and</text>
</clause><clause id="id9C6F26B1D5964AD6994982955E5B0E0C"><enum>(iv)</enum><text>in
subsection (d)—</text>
<subclause id="idEA09BEEE49D64775A52BF4F95B040A7E"><enum>(I)</enum><text>in
the matter preceding paragraph (1), by striking <quote>section 1a(4)</quote>
and inserting <quote>section 1a(9)</quote>;</text>
</subclause><subclause id="id4561EB8C00844E0EAAC6202DD20C8D28"><enum>(II)</enum><text>in
paragraph (1)—</text>
<item id="id523A73F3211C45F6B58ACAF767197AF4"><enum>(aa)</enum><text>in
subparagraph (A), by striking <quote>section 1a(12)</quote> and inserting
<quote>section 1a</quote>; and</text>
</item><item id="id8CB90D88062B4B40B90C98B72C32ABA5"><enum>(bb)</enum><text>in
subparagraph (B), by striking <quote>section 1a(33)</quote> and inserting
<quote>section 1a</quote>;</text>
</item></subclause><subclause id="idC7EB1999F54549168A87E5CE00CC7D99"><enum>(III)</enum><text>in
paragraph (2)—</text>
<item id="idF5C364012E604DA492D5F5EA032E3F06"><enum>(aa)</enum><text>in
subparagraph (A), by striking <quote>section 1a(10)</quote> and inserting
<quote>section 1a</quote>;</text>
</item><item id="id1C6E1E534A954D11915AF40B96A6E526"><enum>(bb)</enum><text>in
subparagraph (B), by striking <quote>section 1a(12)(B)(ii)</quote> and
inserting <quote>section 1a(18)(B)(ii)</quote>;</text>
</item><item id="idA0C3934B95C3404FB36F5B5172476D15"><enum>(cc)</enum><text>in
subparagraph (C), by striking <quote>section 1a(12)</quote> and inserting
<quote>section 1a(18)</quote>; and</text>
</item><item id="idEB10485F6D4E4E05A2BB2BA384A02348"><enum>(dd)</enum><text>in
subparagraph (D), by striking <quote>section 1a(13)</quote> and inserting
<quote>section 1a</quote>; and</text>
</item></subclause></clause></subparagraph><subparagraph id="id3AAB2B7B795742ABBD3A5D4FD2C2288B"><enum>(B)</enum><text>in section
404(1), by striking <quote>section 1a(4)</quote> and inserting <quote>section
1a</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="IDdd9ad8fe536d46ae9579779884453fbd"><enum>722.</enum><header>Jurisdiction</header>
<subsection id="ID5dc88c941a464262b7f34d6f664e33cd"><enum>(a)</enum><header>Exclusive
jurisdiction</header><text>Section 2(a)(1)(A) of the Commodity Exchange Act (7
U.S.C. 2(a)(1)(A)) is amended in the first sentence—</text>
<paragraph id="IDb9d078ae53f64e6c80c33aaa7d0e9053"><enum>(1)</enum><text>by
inserting <quote>the <short-title>Wall Street Transparency
and Accountability Act of 2010</short-title> (including an amendment made by
that Act) and</quote> after <quote>otherwise provided in</quote>;</text>
</paragraph><paragraph id="IDfef186d53b7f4d9fb12365cd529acf4e"><enum>(2)</enum><text>by
striking <quote>(c) through (i) of this section</quote> and inserting
<quote>(c) and (f)</quote>;</text>
</paragraph><paragraph id="ID1744877a83804f2c925dc32ca0ea2c8b"><enum>(3)</enum><text>by
striking <quote>contracts of sale</quote> and inserting <quote>swaps or
contracts of sale</quote>; and</text>
</paragraph><paragraph id="idA1D964EE31FE4D678597DCE59956EF86"><enum>(4)</enum><text>by
striking <quote>or derivatives transaction execution facility registered
pursuant to section 5 or 5a</quote> and inserting <quote>pursuant to section
5</quote>.</text>
</paragraph></subsection><subsection id="IDa9626dcc7f87407483b94cf15d3ed40a"><enum>(b)</enum><header>Regulation of
swaps under Federal and State law</header><text>Section 12 of the Commodity
Exchange Act (7 U.S.C. 16) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id75BEFD16239C4AC49ACFD9A81C2DED27" style="OLC">
<subsection id="ID280e83c492fe48b8a8e6685af5edbc32"><enum>(h)</enum><header>Regulation of
swaps as insurance under State law</header><text>A swap—</text>
<paragraph id="ID5c2a39cfd4884e46b4c5ba537767c8f1"><enum>(1)</enum><text>shall not be
considered to be insurance; and</text>
</paragraph><paragraph id="IDb3a7acbb39c440f795668295babf71fe"><enum>(2)</enum><text>may not be
regulated as an insurance contract under the law of any
State.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID10c960b8d70b4498bbb8c0c560d2750d"><enum>(c)</enum><header>Agreements,
contracts, and transactions traded on an organized
exchange</header><text>Section 2(c)(2)(A) of the Commodity Exchange Act (7
U.S.C. 2(c)(2)(A)) is amended—</text>
<paragraph id="ID725990dd126c42248c7f778572e5a2af"><enum>(1)</enum><text>in
clause (i), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="IDdc07827985b446cf98a1755eb252c373"><enum>(2)</enum><text>by
redesignating clause (ii) as clause (iii); and</text>
</paragraph><paragraph id="IDd3bd008c6e2744aa86e2f718aaab1d9f"><enum>(3)</enum><text>by
inserting after clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="idB49F91B9E5C545FBB7CF5B2ABA3C8998" style="OLC">
<clause id="ID19392097318e49599fe33ffed2636a28"><enum>(ii)</enum><text>a
swap; or</text>
</clause><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID7005bf0a348642a2b6bba6e223caf82c"><enum>(d)</enum><header>Applicability</header><text>Section
2 of the Commodity Exchange Act (7 U.S.C. 2) (as amended by section 723(a)(3))
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD6A3C404650A491AAE9DE7103E8A63C2" style="OLC">
<subsection id="idA6B73E6706A944C3BB6A8E35FC606E22"><enum>(i)</enum><header>Applicability</header><text>The
provisions of this Act relating to swaps that were enacted by the Wall Street
Transparency and Accountability Act of 2010 (including any rule prescribed or
regulation promulgated under that Act), shall not apply to activities outside
the United States unless those activities—</text>
<paragraph id="IDe26b9eb9e32b4939a986d9f29096425e"><enum>(1)</enum><text>have a direct and
significant connection with activities in, or effect on, commerce of the United
States; or</text>
</paragraph><paragraph id="IDb0e2cd5d297f4a10a1603e2d7407c2e9"><enum>(2)</enum><text>contravene such
rules or regulations as the Commission may prescribe or promulgate as are
necessary or appropriate to prevent the evasion of any provision of this Act
that was enacted by the Wall Street Transparency and Accountability Act of
2010.</text>
</paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block>
</subsection></section><section id="idD340A3F73CE44C89B7193C3473BD1210"><enum>723.</enum><header>Clearing</header>
<subsection id="IDc155710fe6fe4c24852e871dbcf15554"><enum>(a)</enum><header>Clearing
requirement</header>
<paragraph id="ID88159b45cba3405da040fabbcabf60df"><enum>(1)</enum><header>In
general</header><text>Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended—</text>
<subparagraph id="idF637B520063541679E65B31BA3C2703B"><enum>(A)</enum><text>by striking
subsections (d), (e), (g), and (h); and</text>
</subparagraph><subparagraph id="id2FB0A29007BD494AB3414AF2FC000FE9"><enum>(B)</enum><text>by redesignating
subsection (i) as subsection (g).</text>
</subparagraph></paragraph><paragraph id="IDd8bc50247d6e4aff924a6bb29ea86ddf"><enum>(2)</enum><header>Swaps;
limitation on participation</header><text>Section 2 of the Commodity Exchange
Act (7 U.S.C. 2) (as amended by paragraph (1)) is amended by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="id99229560819943E18202761005D99FB1" style="OLC">
<subsection id="IDe0558b767f984759b6c85e2ac1ba6fe7"><enum>(d)</enum><header>Swaps</header><text>Nothing
in this Act (other than subparagraphs (A), (B), (C), and (D) of subsection
(a)(1), subsections (f) and (g), sections 1a, 2(c)(2)(A)(ii), 2(e), 2(h), 4(c),
4a, 4b, and 4b-1, subsections (a), (b), and (g) of section 4c, sections 4d, 4e,
4f, 4g, 4h, 4i, 4j, 4k, 4l, 4m, 4n, 4o, 4p, 4r, 4s, 4t, 5, 5b, 5c, 5e, and 5h,
subsections (c) and (d) of section 6, sections 6c, 6d, 8, 8a, and 9,
subsections (e)(2) and (f) of section 12, subsections (a) and (b) of section
13, sections 17, 20, 21, and 22(a)(4), and any other provision of this Act that
is applicable to registered entities and Commission registrants) governs or
applies to a swap.</text>
</subsection><subsection id="ID78651c404df1466eb5a3530f76b6d007"><enum>(e)</enum><header>Limitation on
participation</header><text>It shall be unlawful for any person, other than an
eligible contract participant, to enter into a swap unless the swap is entered
into on, or subject to the rules of, a board of trade designated as a contract
market under section
5.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID03e842a18fca4fdcb3dfa07164bcb6b9"><enum>(3)</enum><header>Mandatory
clearing of swaps</header><text>Section 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by inserting after subsection (g) (as redesignated by
paragraph (1)(B)) the following:</text>
<quoted-block display-inline="no-display-inline" id="id7D16B4CFF2434CB8A8D0DBDC4226E93D" style="OLC">
<subsection id="IDc6dbdf8194c5430ca1c9d91f2fd57444"><enum>(h)</enum><header>Clearing
requirement</header>
<paragraph id="ID9d433e86ffba4d2f9a02c7b9f4039683"><enum>(1)</enum><header>Submission</header>
<subparagraph id="ID22dcdbdb89f2498ba10e825a2a8aadf3"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraphs (9) and (10), any person
who is a party to a swap shall submit such swap for clearing to a derivatives
clearing organization that is registered under this Act or a derivatives
clearing organization that is exempt from registration under section 5b(j) of
this Act.</text>
</subparagraph><subparagraph id="ID0a0350560fa7495fb47738892d4e0c46"><enum>(B)</enum><header>Open
access</header><text>The rules of a registered derivatives clearing
organization shall—</text>
<clause id="IDe06f4eefa5de40ec85c38c5b1eb163ff"><enum>(i)</enum><text>prescribe that
all swaps with the same terms and conditions are economically equivalent and
may be offset with each other within the derivatives clearing organization;
and</text>
</clause><clause id="ID974f5b74feb4466d8c846f3746500aff"><enum>(ii)</enum><text>provide for
nondiscriminatory clearing of a swap executed bilaterally or on or through the
rules of an unaffiliated designated contract market or swap execution facility,
subject to the requirements of section 5(b).</text>
</clause></subparagraph></paragraph><paragraph id="ID173a142c28464466a004505bce077ff3"><enum>(2)</enum><header>Commission
approval</header>
<subparagraph id="IDe6b0ff26a32e4b7c97659dc1e8b2d93e"><enum>(A)</enum><header>In
general</header><text>A derivatives clearing organization shall submit to the
Commission for prior approval any group, category, type, or class of swaps that
the derivatives clearing organization seeks to accept for clearing, which
submission the Commission shall make available to the public.</text>
</subparagraph><subparagraph id="ID6ed84f63e30b47568dc8a7781f990cb4"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall take final action on a request submitted pursuant to
subparagraph (A) not later than 90 days after submission of the request, unless
the derivatives clearing organization submitting the request agrees to an
extension of the time limitation established under this subparagraph.</text>
</subparagraph><subparagraph id="ID447a902766634dcba498158d6cd79cd5"><enum>(C)</enum><header>Approval</header><text>The
Commission shall approve, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, any request
submitted pursuant to subparagraph (A) if the Commission finds that the request
is consistent with section 5b(c)(2). The Commission shall not approve any such
request if the Commission does not make such finding.</text>
</subparagraph><subparagraph id="ID370075c113d24016be930cb5c0fa293a"><enum>(D)</enum><header>Rules</header><text>The
Commission shall adopt rules for a derivatives clearing organization’s
submission for approval, pursuant to this paragraph, of any group, category,
type, or class of swaps that the derivative clearing organization seeks to
accept for clearing.</text>
</subparagraph></paragraph><paragraph id="ID8d23faed5d0143f2ad978efbfa0cf40a"><enum>(3)</enum><header>Stay of
clearing requirement</header><text>At any time after issuance of an approval
pursuant to paragraph (2):</text>
<subparagraph id="IDb96ca659d7594e16a182c1a5191b5aa5"><enum>(A)</enum><header>Review
process</header><text>The Commission, on application of a counterparty to a
swap or on its own initiative, may stay the clearing requirement of paragraph
(1) until the Commission completes a review of the terms of the swap, or the
group, category, type, or class of swaps, and the clearing arrangement.</text>
</subparagraph><subparagraph id="IDa93795abf1034d899c8a914d34e4ee28"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall complete a review undertaken pursuant to subparagraph (A) not
later than 90 days after issuance of the stay, unless the derivatives clearing
organization that clears the swap, or the group, category, type, or class of
swaps, agrees to an extension of the time limitation established under this
subparagraph.</text>
</subparagraph><subparagraph id="ID814b33499e954af4964fd220e80334fe"><enum>(C)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to subparagraph (A)—</text>
<clause id="IDb339745c9788409fb2ef1ce85f102225"><enum>(i)</enum><text>the
Commission may determine, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, that the swap, or
the group, category, type, or class of swaps, must be cleared pursuant to this
subsection if the Commission finds that such clearing—</text>
<subclause id="ID908602b4a4fb4f21823109c2b31af5a4"><enum>(I)</enum><text>is
consistent with section 5b(c)(2); and</text>
</subclause><subclause id="ID2bff846712e2430f9c44eaeb64f09d67"><enum>(II)</enum><text>is otherwise in
the public interest, for the protection of investors, and consistent with the
purposes of this Act;</text>
</subclause></clause><clause id="ID014e0341973d4c4ba68868f760843224"><enum>(ii)</enum><text>the
Commission may determine that the clearing requirement of paragraph (1) shall
not apply to the swap, or the group, category, type, or class of swaps;
or</text>
</clause><clause id="ID1e962a7dd6964e959b8a373ddcde1cd1"><enum>(iii)</enum><text>if
a determination is made that the clearing requirement of paragraph (1) shall no
longer apply, then it shall still be permissible to clear such swap, or the
group, category, type, or class of swaps.</text>
</clause></subparagraph><subparagraph id="ID69796bdd9c404783b695a70fa85e64fe"><enum>(D)</enum><header>Rules</header><text>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 the Commission has accepted for clearing.</text>
</subparagraph></paragraph><paragraph id="ID52bb369946204d9ca88fe39e32c8bd29"><enum>(4)</enum><header>Swaps required
to be accepted for clearing</header>
<subparagraph id="ID1acd087505c244d4ac3e263673655c41"><enum>(A)</enum><header>Rulemaking</header><text>The
Commission shall adopt rules to further identify any group, category, type, or
class of swaps not submitted for approval under paragraph (2) that the
Commission deems should be accepted for clearing. In adopting such rules, the
Commission shall take into account the following factors:</text>
<clause id="ID65cb24edf8aa4214a53cb94b9e208054"><enum>(i)</enum><text>The
extent to which any of the terms of the group, category, type, or class of
swaps, including price, are disseminated to third parties or are referenced in
other agreements, contracts, or transactions.</text>
</clause><clause id="ID259d994874d94b188e70f7c0c59502eb"><enum>(ii)</enum><text>The
volume of transactions in the group, category, type, or class of swaps.</text>
</clause><clause id="ID6f7b78e75fad4eb79177949f8a266197"><enum>(iii)</enum><text>The
extent to which the terms of the group, category, type, or class of swaps are
similar to the terms of other agreements, contracts, or transactions that are
cleared.</text>
</clause><clause id="IDcbc2d355c53c4b6b9a49aa73ef99a23f"><enum>(iv)</enum><text>Whether any
differences in the terms of the group, category, type, or class of swaps,
compared to other agreements, contracts, or transactions that are cleared, are
of economic significance.</text>
</clause><clause id="ID92843730ee7e4216a38974c3c07af1ef"><enum>(v)</enum><text>Whether a
derivatives clearing organization is prepared to clear the group, category,
type, or class of swaps and such derivatives clearing organization has in place
effective risk management systems.</text>
</clause><clause id="ID98d38b1e38be43eeb933a5d80ec01f91"><enum>(vi)</enum><text>Any
other factors the Commission determine to be appropriate.</text>
</clause></subparagraph><subparagraph id="IDe4866864d8a6481e96a06e75b4bad8b5"><enum>(B)</enum><header>Other
designations</header><text>At any time after the adoption of the rules required
under subparagraph (A), the Commission may separately designate a particular
swap or class of swaps as subject to the clearing requirement in paragraph (1),
taking into account the factors described in clauses (i) through (vi) of
subparagraph (A) and the rules adopted under such subparagraph.</text>
</subparagraph><subparagraph id="IDab51e25ec4cb43ad9ceae098383a3a3a"><enum>(C)</enum><header>In
general</header><text>In accordance with subparagraph (A), the Commission
shall, consistent with the public interest, adopt rules under the expedited
process described in subparagraph (D) to establish criteria for determining
that a swap, or any group, category, type, or class of swap is required to be
cleared.</text>
</subparagraph><subparagraph id="ID36316f37d46b4f46b4c262bbcac78b76"><enum>(D)</enum><header>Expedited
rulemaking authority</header>
<clause id="ID127dc4e0169040a7948c3a63788313ab"><enum>(i)</enum><header>Procedure</header><text>The
promulgation of regulations under subparagraph (A) may be made without regard
to—</text>
<subclause id="ID4da4dd2357964e21a84c4537a020b86d"><enum>(I)</enum><text>the notice and
comment provisions of section 553 of title 5, United States Code; and</text>
</subclause><subclause id="IDaf51cd84470549218aa7954c1b90ac64"><enum>(II)</enum><text>chapter 35 of
title 44, United States Code (commonly known as the <quote>Paperwork Reduction
Act</quote>).</text>
</subclause></clause><clause id="IDb4a14d1452af420da628c5c9e81e3e3f"><enum>(ii)</enum><header>Agency
rulemaking</header><text>In carrying out subparagraph (A), the Commission shall
use the authority provided under section 808 of title 5, United States
Code.</text>
</clause></subparagraph></paragraph><paragraph id="IDf7f9c38701d646e5a23312797dc796c1"><enum>(5)</enum><header>Prevention of
evasion</header>
<subparagraph id="ID32d7324052ce445b80d36cc866b9ab1b"><enum>(A)</enum><header>In
general</header><text>The Commission may prescribe rules under this subsection
(and issue interpretations of rules prescribed under this subsection) as
determined by the Commission to be necessary to prevent evasions of the
mandatory clearing requirements under this Act.</text>
</subparagraph><subparagraph id="IDe0b16b19fa98473093390e3d66fe9483"><enum>(B)</enum><header>Duty of
commission to investigate and take certain actions</header><text>To the extent
the Commission finds that a particular swap, group, category, type, or class of
swaps would otherwise be subject to mandatory clearing but no derivatives
clearing organization has listed the swap, group, category, type, or class of
swaps for clearing, the Commission shall—</text>
<clause id="IDfadcd431940e41abb7102087e9b0f9f6"><enum>(i)</enum><text>investigate the
relevant facts and circumstances;</text>
</clause><clause id="IDd7a36d98c8a7415ca7e355a366a9caf0"><enum>(ii)</enum><text>within 30 days
issue a public report containing the results of the investigation; and</text>
</clause><clause id="ID1d71cc17407b406f8e4ee3d4309eec27"><enum>(iii)</enum><text>take such
actions as the Commission determines to be necessary and in the public
interest, which may include requiring the retaining of adequate margin or
capital by parties to the swap, group, category, type, or class of
swaps.</text>
</clause></subparagraph><subparagraph id="ID661bdb3ddfca44da8d23f965b29e075c"><enum>(C)</enum><header>Effect on
authority</header><text>Nothing in this paragraph shall—</text>
<clause id="IDaa43806c19794ff394d40d19f088bf58"><enum>(i)</enum><text>authorize the
Commission to require a derivatives clearing organization to list for clearing
a swap, group, category, type, or class of swaps if the clearing of the swap,
group, category, type, or class of swaps would adversely affect the business
operations of the derivatives clearing organization, threaten the financial
integrity of the derivatives clearing organization, or pose a systemic risk to
the derivatives clearing organization; and</text>
</clause><clause id="ID1ca60b7e3ecd416d8bbaf755ab181594"><enum>(ii)</enum><text>affect the
authority of the Commission to enforce the open access provisions of paragraph
(1) with respect to a swap, group, category, type, or class of swaps that is
listed for clearing by a derivatives clearing organization.</text>
</clause></subparagraph></paragraph><paragraph id="ID1df6f8c93eb24bcfb7466766c2110bf5"><enum>(6)</enum><header>Required
reporting</header>
<subparagraph id="IDbed6080969404001b17de9ecda744a0b"><enum>(A)</enum><header>Both
counterparties</header><text>Both counterparties to a swap that is not cleared
by any derivatives clearing organization shall report such a swap either to a
registered swap repository described in section 21 or, if there is no
repository that would accept the swap, to the Commission pursuant to section
4r.</text>
</subparagraph><subparagraph id="ID1c190e6b076f489db5d7a7e9fbcff96a"><enum>(B)</enum><header>Timing</header><text>Counterparties
to a swap shall submit the reports required under subparagraph (A) not later
than such time period as the Commission may by rule or regulation
prescribe.</text>
</subparagraph></paragraph><paragraph id="IDda8dd515d2f344868c744fec17537cb4"><enum>(7)</enum><header>Transition
rules</header>
<subparagraph id="ID8eb58525b1fc47d5983c0069efc39ee2"><enum>(A)</enum><header>Reporting
transition rules</header><text>Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<clause id="IDbe76a9f0186e489f81a9f52b9af5e4d6"><enum>(i)</enum><header>Swaps entered
into before date of enactment of this subsection</header><text>Swaps entered
into before the date of the enactment of this subsection shall be reported to a
registered swap repository or the Commission not later than 180 days after the
effective date of this subsection.</text>
</clause><clause id="ID7ace726185564234acf86e42a8a88904"><enum>(ii)</enum><header>Swaps entered
into on or after date of enactment of this subsection</header><text>Swaps
entered into on or after such date of enactment shall be reported to a
registered swap repository or the Commission not later than the later
of—</text>
<subclause id="IDa4af9afe36ff4deaaa852af16320f4e2"><enum>(I)</enum><text>90
days after such effective date; or</text>
</subclause><subclause id="ID6b0df42ed0b545ff8885e6098ddb20f2"><enum>(II)</enum><text>such other time
after entering into the swap as the Commission may prescribe by rule or
regulation.</text>
</subclause></clause></subparagraph><subparagraph id="ID9c2dc482288a4e7883279f7feda1da87"><enum>(B)</enum><header>Clearing
transition rules</header>
<clause id="IDaff14cfa2a43415aa93bfc8506416370"><enum>(i)</enum><header>Swaps entered
into before the date of the enactment of this subsection</header><text>Swaps
entered into before the date of the enactment of this subsection are exempt
from the clearing requirements of this subsection if reported pursuant to
subparagraph (A)(i).</text>
</clause><clause id="ID03df5e0fa2c84f4c90123113145411e6"><enum>(ii)</enum><header>Swaps entered
into before application of clearing requirement</header><text>Swaps entered
into before application of the clearing requirement pursuant to this subsection
are exempt from the clearing requirements of this subsection if reported
pursuant to subparagraph (A)(ii).</text>
</clause></subparagraph></paragraph><paragraph id="IDd078df0964c34cf093c7ec12079f844b"><enum>(8)</enum><header>Trade
execution</header>
<subparagraph id="ID90004f9bb5ca459ba02644ab95921d5d"><enum>(A)</enum><header>In
general</header><text>With respect to transactions involving swaps subject to
the clearing requirement of paragraph (1), counterparties shall—</text>
<clause id="IDfcc6254aa86b4cf4a93a58970c4106bf"><enum>(i)</enum><text>execute the
transaction on a board of trade designated as a contract market under section
5; or</text>
</clause><clause id="IDc1ca7da1908a4fe9ab0685e37664260a"><enum>(ii)</enum><text>execute the
transaction on a swap execution facility registered under section 5h or a swap
execution facility that is exempt from registration under section 5h(f) of this
Act.</text>
</clause></subparagraph><subparagraph id="ID02752d42c002454abe234abbe4275e34"><enum>(B)</enum><header>Exception</header><text>The
requirements of clauses (i) and (ii) of subparagraph (A) shall not apply if no
board of trade or swap execution facility makes the swap available to trade or
a swap transactions where a commercial end user opts to use the clearing
exemption under paragraph (9).</text>
</subparagraph></paragraph><paragraph id="IDf9868b31554a4d019cd9335e673e5eae"><enum>(9)</enum><header>Required
exemption</header><text>Subject to paragraph (4), the Commission shall exempt a
swap from the requirements of paragraphs (1) and (8) and any rules issued under
this subsection, if no derivatives clearing organization registered under this
Act or no derivatives clearing organization that is exempt from registration
under section 5b(j) of this Act will accept the swap from clearing.</text>
</paragraph><paragraph id="IDc7111778ce4f447996c1343c42613aef"><enum>(10)</enum><header>End user
clearing exemption</header>
<subparagraph id="IDb4f6581bd1864349ad14a1f017962b2f"><enum>(A)</enum><header>Definition of
commercial end user</header>
<clause id="IDae7460c820044891a87147875d85965a"><enum>(i)</enum><header>In
general</header><text>In this paragraph, the term <term>commercial end
user</term> means any person other than a financial entity described in clause
(ii) who, as its primary business activity, owns, uses, produces, processes,
manufactures, distributes, merchandises, or markets goods, services, or
commodities (which shall include but not be limited to coal, natural gas,
electricity, ethanol, crude oil, gasoline, propane, distillates, and other
hydrocarbons) either individually or in a fiduciary capacity.</text>
</clause><clause id="ID14c115c86da5463296dc1b20d49176db"><enum>(ii)</enum><header>Financial
entity</header><text>The term <term>financial entity</term> means—</text>
<subclause id="ID79bb0701813541b79b50c0f8bf3b6c41"><enum>(I)</enum><text>a
swap dealer, major swap participant, security-based swap dealer, or major
security-based swap participant;</text>
</subclause><subclause id="id453689B8E5AC4E62A6D62B5C2A1B8551"><enum>(II)</enum><text>a
person predominantly engaged in activities that are in the business of banking
or financial in nature, as defined in Section 4(k) of the Bank Holding Company
Act of 1956;</text>
</subclause><subclause id="IDbffd829ffc6c44c4b9fdbbd5debc406c"><enum>(III)</enum><text>a person
predominantly engaged in activities that are financial in nature;</text>
</subclause><subclause id="ID5cde1a8bb2cd4541b9ebf237765c7a49"><enum>(IV)</enum><text>a
commodity pool or a private fund as defined in section 202(a) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–2(a)); or</text>
</subclause><subclause id="IDa27d32731e134dd7bb2296a089feeb2e"><enum>(V)</enum><text>a
person that is registered or required to be registered with the
Commission.</text>
</subclause></clause></subparagraph><subparagraph id="ID112fc74dedac4ffcbf943a1f2c2e0fb5"><enum>(B)</enum><header>End user
clearing exemption</header>
<clause id="IDfb267fe7aa344146901a482f2dceead4"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), in the event that a swap is
subject to the mandatory clearing requirement under paragraph (1), and 1 of the
counterparties to the swap is a commercial end user, that counterparty—</text>
<subclause id="ID92abddaecc6648eda50a81230f562d52"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="idEA21815EA69B44C39426603D4D902BF0"><enum>(aa)</enum><text>may elect not to clear
the swap, as required under paragraph (1); or</text>
</item><item id="ID6eb5adc1428941d485d62555087ee357" indent="up1"><enum>(bb)</enum><text>may elect to require clearing of the
swap; and</text>
</item></subclause><subclause id="ID92bc31a40cd14c5eafa7bd8fa3ccf80a"><enum>(II)</enum><text>if the end user
makes an election under subclause (I)(bb), shall have the sole right to select
the derivatives clearing organization at which the swap will be cleared.</text>
</subclause></clause><clause id="IDdc208b98e41c403ca6eafe6da3c82a2e"><enum>(ii)</enum><header>Limitation</header><text>A
commercial end user may only make an election under clause (i) if the end user
is using the swap to hedge its own commercial risk.</text>
</clause></subparagraph><subparagraph id="IDa8a48dc603d449fbbf133a5eb04bc848"><enum>(C)</enum><header>Treatment of
affiliates</header>
<clause id="ID99beba677d294ce08da831dcffdca930"><enum>(i)</enum><header>In
general</header><text>An affiliate of a commercial end user (including
affiliate entities predominantly engaged in providing financing for the
purchase of the merchandise or manufactured goods of the commercial end user)
may make an election under subparagraph (B)(i) only if the affiliate, acting on
behalf of the commercial end user and as an agent, uses the swap to hedge or
mitigate the commercial risk of the commercial end user parent or other
affiliate of the commercial end user that is not a financial entity.</text>
</clause><clause id="id88C7D53B0F034BDD86E1CF85D5BF79B7"><enum>(ii)</enum><header>Prohibition
relating to certain affiliates</header><text>An affiliate of a commercial end
user shall not use the exemption under subparagraph (B) if the affiliate
is—</text>
<subclause id="id2666B863A0BD4018A83146CD74F8F8B2"><enum>(I)</enum><text>a
swap dealer;</text>
</subclause><subclause id="idE7172CA354E846998C58DED54573A767"><enum>(II)</enum><text>a
security-based swap dealer;</text>
</subclause><subclause id="idBB749BA9DAD74F35B9E19F81E8E18B37"><enum>(III)</enum><text>a major swap
participant;</text>
</subclause><subclause id="idA2C6ED4790944653932A10BA10F543C8"><enum>(IV)</enum><text>a
major security-based swap participant;</text>
</subclause><subclause id="idC26A8E20EBD74626A04AFFF12308154E"><enum>(V)</enum><text>an
issuer that would be an investment company, as defined in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a–3), but for paragraph (1) or (7)
of subsection (c) of that Act (15 U.S.C. 80a–3(c));</text>
</subclause><subclause id="idF4E48E60514247D0B4AB70747F21F5CF"><enum>(VI)</enum><text>a
commodity pool;</text>
</subclause><subclause id="id6AC9FF493B0848F3824D0BD30ED3FD91"><enum>(VII)</enum><text>a bank holding
company with over $50,000,000,000 in consolidated assets; or</text>
</subclause><subclause id="id09C2DC5F78664E00A7452AA1038DFB9B"><enum>(VIII)</enum><text>an affiliate
of any entity described in subclauses (I) through (VII).</text>
</subclause></clause></subparagraph><subparagraph id="id74D2DA36A3324876A1996413E985D9EA"><enum>(D)</enum><header>Abuse of
exemption</header><text>The Commission may prescribe such rules or issue
interpretations of the rules as the Commission determines to be necessary to
prevent abuse of the exemption described in subparagraph (B). The Commission
may also request information from those entities claiming the clearing
exemption as necessary to prevent abuse of the exemption described in
subparagraph (B).</text>
</subparagraph><subparagraph id="idE58A2EF39A994760883D93010D066A72"><enum>(E)</enum><header>Option to
clear</header>
<clause id="IDb1b700f1a5164426ac332ce2d248b5e5"><enum>(i)</enum><header>Swaps required
to be cleared entered into with a financial entity</header><text>With respect
to any swap that is required to be cleared by a derivatives clearing
organization and entered into by a swap dealer or a major swap participant with
a financial entity, the financial entity shall have the sole right to select
the derivatives clearing organization at which the swap will be cleared.</text>
</clause><clause id="ID645e3aa6b6a14531b3c23b1e521d9db6"><enum>(ii)</enum><header>Swaps not
required to be cleared entered into with a financial entity or commercial end
user</header><text>With respect to any swap that is not required to be cleared
by a derivatives clearing organization and entered into by a swap dealer or a
major swap participant with a financial entity or commercial end user, the
financial entity or commercial end user—</text>
<subclause id="ID13ef6fd3ea9a4ba6bd07a8b80336dbe1"><enum>(I)</enum><text>may elect to
require clearing of the swap; and</text>
</subclause><subclause id="ID42442d7c23b542449677cd20c80edf5c"><enum>(II)</enum><text>shall have the
sole right to select the derivatives clearing organization at which the swap
will be
cleared.</text>
</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDe4659116ca1b4d71812112686d9d2296"><enum>(b)</enum><header>Commodity
exchange act</header><text>Section 2 of the Commodity Exchange Act (7 U.S.C. 2)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2B6509B385514CC38694A43C8AD87793" style="OLC">
<subsection id="IDf41906d3b2334b64a8148e143fdd64f2"><enum>(j)</enum><header>Audit Committee
Approval</header><text>Exemptions from the requirements of subsection (h)(2)(F)
to clear a swap and subsection (b) to trade a swap through a board of trade or
swap execution facility shall be available to a counterparty that is an issuer
of securities that are registered under section 12 of the Securities Exchange
Act of 1934 (15 U.S.C. 78l) or that is required to file reports pursuant to
section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o) only if
the issuer’s audit committee has reviewed and approved its decision to enter
into swaps that are subject to such
exemptions.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id1231FF0DF00B4D9C9390924E61F2B6A4"><enum>(c)</enum><header>Grandfather
provisions</header>
<paragraph id="IDeca5634094764160804ca9a5fff0631e"><enum>(1)</enum><header>Legal certainty
for certain transactions in exempt commodities</header><text>Not later than 60
days after the date of enactment of this Act, a person may submit to the
Commodity Futures Trading Commission a petition to remain subject to section
2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) (as in effect on the day
before the date of enactment of this Act).</text>
</paragraph><paragraph id="IDeca6a86bf6484a07bbb9a35099ecb2b9"><enum>(2)</enum><header>Consideration;
authority of Commodity Futures Trading Commission</header><text>The Commodity
Futures Trading Commission—</text>
<subparagraph id="IDf0b886ae80b247c88172f66152386f43"><enum>(A)</enum><text>shall consider
any petition submitted under subparagraph (A) in a prompt manner; and</text>
</subparagraph><subparagraph id="IDf2ec0c9695734c5baf0c1f0efabba762"><enum>(B)</enum><text>may allow a
person to continue operating subject to section 2(h) of the Commodity Exchange
Act (7 U.S.C. 2(h)) (as in effect on the day before the date of enactment of
this Act) for not longer than a 1-year period.</text>
</subparagraph></paragraph><paragraph commented="no" id="idBFB0232BFD544B1D82ABB65F8E286582"><enum>(3)</enum><header>Agricultural
swaps</header>
<subparagraph commented="no" id="idD443427375534AB3BBEC67537C5C0691"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (2), no person shall
offer to enter into, enter into, or confirm the execution of, any swap in an
agricultural commodity (as defined by the Commodity Futures Trading
Commission).</text>
</subparagraph><subparagraph commented="no" id="idAD7A7D0F47F94350B5E7A047209A00D2"><enum>(B)</enum><header>Exception</header><text>Notwithstanding
paragraph (1), a person may offer to enter into, enter into, or confirm the
execution of, any swap in an agricultural commodity pursuant to section 4(c) of
the Commodity Exchange Act (7 U.S.C. 6(c)) or any rule, regulation, or order
issued thereunder (including any rule, regulation, or order in effect as of the
date of enactment of this Act) by the Commodity Futures Trading Commission to
allow swaps under such terms and conditions as the Commission shall
prescribe.</text>
</subparagraph></paragraph><paragraph commented="no" id="id1596FBB517B049608389E5D8889604E3"><enum>(4)</enum><header>Required
reporting</header><text>If the exception described in 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></subsection></section><section id="IDc2cf3d63c7f74259be0ff2ae5124c582"><enum>724.</enum><header>Swaps;
segregation and bankruptcy treatment</header>
<subsection id="ID85dfe1de1cab4cffaf3397f26b71bc08"><enum>(a)</enum><header>Segregation
requirements for cleared swaps</header><text>Section 4d of the Commodity
Exchange Act (7 U.S.C. 6d) (as amended by section 732) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9B48427AFC844AD3BCDC6AADE390C895" style="OLC">
<subsection id="IDcd70db1f4941426087c548ee9393193d"><enum>(f)</enum><header>Swaps</header>
<paragraph id="id3EEE014D166C4B2BB951BCE0655B1B4C"><enum>(1)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person to accept any
money, securities, or property (or to extend any credit in lieu of money,
securities, or property) from, for, or on behalf of a swaps customer to margin,
guarantee, or secure a swap cleared by or through a derivatives clearing
organization (including money, securities, or property accruing to the customer
as the result of such a swap), unless the person shall have registered under
this Act with the Commission as a futures commission merchant, and the
registration shall not have expired nor been suspended nor revoked.</text>
</paragraph><paragraph id="idC8C26CFDC8BA47A3A4616987077866DF"><enum>(2)</enum><header>Cleared
swaps</header>
<subparagraph id="idE7F2B89120904B9CB2A2EC1632210515"><enum>(A)</enum><header>Segregation
required</header><text>A futures commission merchant shall treat and deal with
all money, securities, and property of any swaps customer received to margin,
guarantee, or secure a swap cleared by or though a derivatives clearing
organization (including money, securities, or property accruing to the swaps
customer as the result of such a swap) as belonging to the swaps
customer.</text>
</subparagraph><subparagraph id="id327061FABD204AAF940B8A44BC457427"><enum>(B)</enum><header>Commingling
prohibited</header><text>Money, securities, and property of a swaps customer
described in subparagraph (A) shall be separately accounted for and shall not
be commingled with the funds of the futures commission merchant or be used to
margin, secure, or guarantee any trades or contracts of any swaps customer or
person other than the person for whom the same are held.</text>
</subparagraph></paragraph><paragraph id="id24CAC9DF7D5C464E8FD66F0C3F3424C7"><enum>(3)</enum><header>Exceptions</header>
<subparagraph id="id441097EA903840DB8090BB4293A09277"><enum>(A)</enum><header>Use of
funds</header>
<clause id="idCB7FA531895A4A779C878B5F16705A80"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (2), money, securities, and
property of a swaps customer of a futures commission merchant described in
paragraph (2) may, for convenience, be commingled and deposited in the same 1
or more accounts with any bank or trust company or with a derivatives clearing
organization.</text>
</clause><clause id="idC5F033D649B346688AD82945EA276D18"><enum>(ii)</enum><header>Withdrawal</header><text>Notwithstanding
paragraph (2), such share of the money, securities, and property described in
clause (i) as in the normal course of business shall be necessary to margin,
guarantee, secure, transfer, adjust, or settle a cleared swap with a
derivatives clearing organization, or with any member of the derivatives
clearing organization, may be withdrawn and applied to such purposes, including
the payment of commissions, brokerage, interest, taxes, storage, and other
charges, lawfully accruing in connection with the cleared swap.</text>
</clause></subparagraph><subparagraph id="id96E9FA8DB4F54808A6FBA0F001CBAE9F"><enum>(B)</enum><header>Commission
action</header><text>Notwithstanding paragraph (2), in accordance with such
terms and conditions as the Commission may prescribe by rule, regulation, or
order, any money, securities, or property of the swaps customer of a futures
commission merchant described in paragraph (2) may be commingled and deposited
as provided in this section with any other money, securities, or property
received by the futures commission merchant and required by the Commission to
be separately accounted for and treated and dealt with as belonging to the
swaps customer of the futures commission merchant.</text>
</subparagraph></paragraph><paragraph id="idF591D86336C14A3FBFB055A201E795EF"><enum>(4)</enum><header>Permitted
investments</header><text>Money described in paragraph (2) may be invested in
obligations of the United States, in general obligations of any State or of any
political subdivision of a State, and in obligations fully guaranteed as to
principal and interest by the United States, or in any other investment that
the Commission may by rule or regulation prescribe, and such investments shall
be made in accordance with such rules and regulations and subject to such
conditions as the Commission may prescribe.</text>
</paragraph><paragraph id="ID19168a383253410a8f64de63f93026fa"><enum>(5)</enum><header>Commodity
contract</header><text>A swap cleared by or through a derivatives clearing
organization shall be considered to be a commodity contract as such term is
defined in section 761 of title 11, United States Code, with regard to all
money, securities, and property of any swaps customer received by a futures
commission merchant or a derivatives clearing organization to margin,
guarantee, or secure the swap (including money, securities, or property
accruing to the customer as the result of the swap).</text>
</paragraph><paragraph id="id373CF2CE74CF487E91CB9DD4128E3252"><enum>(6)</enum><header>Prohibition</header><text>It
shall be unlawful for any person, including any derivatives clearing
organization and any depository institution, that has received any money,
securities, or property for deposit in a separate account or accounts as
provided in paragraph (2) to hold, dispose of, or use any such money,
securities, or property as belonging to the depositing futures commission
merchant or any person other than the swaps customer of the futures commission
merchant.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID73826c29ccb04a60ae949f073e5527d2"><enum>(b)</enum><header>Bankruptcy
treatment of cleared swaps</header><text>Section 761 of title 11, United States
Code, is amended—</text>
<paragraph id="id03675C2B34C645B0B73A7D566B0932CB"><enum>(1)</enum><text>in
paragraph (4), by striking subparagraph (F) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB45ABA6EFAD143BBAF4E1B62D0FB339F" style="OLC">
<subparagraph id="id38AB96D32E9C4C619E704F4E704F4ABF"><enum>(F)</enum><clause commented="no" display-inline="yes-display-inline" id="idA4A555E6F7554D35AA2B9663DC828AFB"><enum>(i)</enum><text>any other contract,
option, agreement, or transaction that is similar to a contract, option,
agreement, or transaction referred to in this paragraph; and</text>
</clause><clause id="idEE6D18C31F99444D8534BBC97266A3D9" indent="up1"><enum>(ii)</enum><text>with respect to a futures
commission merchant or a clearing organization, any other contract, option,
agreement, or transaction, in each case, that is cleared by a clearing
organization;</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDf51aef59dc894e72b2247706c66efe6c"><enum>(2)</enum><text>in
paragraph (9)(A)(i), by striking <quote>the commodity futures account</quote>
and inserting <quote>a commodity contract account</quote>.</text>
</paragraph></subsection><subsection id="IDf7002e00d9464b0d84f995bd4e7e94a6"><enum>(c)</enum><header>Segregation
requirements for uncleared swaps</header><text>Section 4s of the Commodity
Exchange Act (as added by section 731) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id92109B6244B14D42987C789CA1735381" style="OLC">
<subsection id="IDdcdd590d971043009eca8970a33e60f1"><enum>(l)</enum><header>Segregation
requirements</header>
<paragraph id="ID1f27dad6506241b3bebcfdd99a253cdd"><enum>(1)</enum><header>Segregation of
assets held as collateral in uncleared swap transactions</header>
<subparagraph id="ID1344d1a0a0594287a7ee65b66ada5ad3"><enum>(A)</enum><header>Notification</header><text>A
swap dealer or major swap participant shall be required to notify the
counterparty of the swap dealer or major swap participant at the beginning of a
swap transaction that the counterparty has the right to require segregation of
the funds or other property supplied to margin, guarantee, or secure the
obligations of the counterparty.</text>
</subparagraph><subparagraph id="IDc6b0a9d8b99145d69d5bfb3c31d45ca3"><enum>(B)</enum><header>Segregation and
maintenance of funds</header><text>At the request of a counterparty to a swap
that provides funds or other property to a swap dealer or major swap
participant to margin, guarantee, or secure the obligations of the
counterparty, the swap dealer or major swap participant shall—</text>
<clause id="IDefe7df97f3b1401e9a14f9a9190b9957"><enum>(i)</enum><text>segregate the
funds or other property for the benefit of the counterparty; and</text>
</clause><clause id="IDc88f930bcdf14fb0ad492a161638cfc7"><enum>(ii)</enum><text>in
accordance with such rules and regulations as the Commission may promulgate,
maintain the funds or other property in a segregated account separate from the
assets and other interests of the swap dealer or major swap participant.</text>
</clause></subparagraph></paragraph><paragraph id="ID40c542b80a794a4aa001a67f0883f933"><enum>(2)</enum><header>Applicability</header><text>The
requirements described in paragraph (1) shall—</text>
<subparagraph id="IDe9ac577775c14b57ba142d9908dfc586"><enum>(A)</enum><text>apply only to a
swap between a counterparty and a swap dealer or major swap participant that is
not submitted for clearing to a derivatives clearing organization; and</text>
</subparagraph><subparagraph id="ID446891ea6a644cbc91a3e1f2368cb67d"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id5591DF5F751048EE960A7E13BC36199F"><enum>(i)</enum><text>not apply to variation
margin payments; or</text>
</clause><clause id="id26BB223F6E5A40B882DEBB9AC6160536" indent="up1"><enum>(ii)</enum><text>not preclude any commercial
arrangement regarding—</text>
<subclause id="id1F514C3E672B40A9BD67A29309393034"><enum>(I)</enum><text>the investment of segregated funds or
other property that may only be invested in such investments as the Commission
may permit by rule or regulation; and</text>
</subclause><subclause id="id0659D83442534133A30FD32CBAAB70F6"><enum>(II)</enum><text>the related allocation of gains and
losses resulting from any investment of the segregated funds or other
property.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDd11fef3b33ae4626805205d048d0c877"><enum>(3)</enum><header>Use of
independent third-party custodians</header><text>The segregated account
described in paragraph (1) shall be—</text>
<subparagraph id="ID72b414198d764d078449d772e68f7364"><enum>(A)</enum><text>carried by an
independent third-party custodian; and</text>
</subparagraph><subparagraph id="IDc1bc0af082e0453ab240ef5e0465ed05"><enum>(B)</enum><text>designated as a
segregated account for and on behalf of the counterparty.</text>
</subparagraph></paragraph><paragraph id="IDf015a8accb7642b9b7b9d418319d3c11"><enum>(4)</enum><header>Reporting
requirement</header><text>If the counterparty does not choose to require
segregation of the funds or other property supplied to margin, guarantee, or
secure the obligations of the counterparty, the swap dealer or major swap
participant shall report to the counterparty of the swap dealer or major swap
participant on a quarterly basis that the back office procedures of the swap
dealer or major swap participant relating to margin and collateral requirements
are in compliance with the agreement of the
counterparties.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDce84e80d11904bcb949951bccb424d06"><enum>725.</enum><header>Derivatives
clearing organizations</header>
<subsection commented="no" id="id16F2523B959E44CEBA3E84816DEFCC5E"><enum>(a)</enum><header>Registration
requirement</header><text>Section 5b of the Commodity Exchange Act (7 U.S.C.
7a–1) is amended by striking subsections (a) and (b) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H6512A32F9F434096A6D5DA027DCC9013" style="OLC">
<subsection commented="no" id="HCD558D093A1F49479E93BB7E02DC4D4F"><enum>(a)</enum><header>Registration
requirement</header>
<paragraph id="H415C32827D9B4164BF5506F797B3CBF9"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), it shall be unlawful
for a derivatives clearing organization, directly or indirectly, to make use of
the mails or any means or instrumentality of interstate commerce to perform the
functions of a derivatives clearing organization with respect to—</text>
<subparagraph id="H88F49785D1D94D86A35F1A3D9ACDE95F"><enum>(A)</enum><text>a contract of sale
of a commodity for future delivery (or an option on the contract of sale) or
option on a commodity, in each case, unless the contract or option is—</text>
<clause id="H73DEC4C3D0714434BBB0DC54F9A4BE55"><enum>(i)</enum><text>excluded from this
Act by subsection (a)(1)(C)(i), (c), or (f) of section 2; or</text>
</clause><clause id="H7AF30D880D3A4198A038A870D975DC93"><enum>(ii)</enum><text>a
security futures product cleared by a clearing agency registered with the
Securities and Exchange Commission under the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.); or</text>
</clause></subparagraph><subparagraph id="HECF2AEAB863B4874B7CD16B97FAB3C8F"><enum>(B)</enum><text>a swap.</text>
</subparagraph></paragraph><paragraph id="ID5ced5ad74bd44f13b78dd513f65ef66e"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply to a derivatives clearing organization that is registered
with the Commission.</text>
</paragraph></subsection><subsection id="ID80744ee80c3547e9bc77cf321035c55e"><enum>(b)</enum><header>Voluntary
registration</header><text>A person that clears 1 or more agreements,
contracts, or transactions that are not required to be cleared under this Act
may register with the Commission as a derivatives clearing
organization.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="ID6c1fef548b8b4707a17ca82abaf733e3"><enum>(b)</enum><header>Registration
for depository institutions and clearing agencies; exemptions; compliance
officer; annual reports</header><text>Section 5b of the Commodity Exchange Act
(7 U.S.C. 7a–1) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H21533A6B72BE4157A59988E7CC193A22" style="OLC">
<subsection id="IDd1dea6021c724d30b867863b1d3cf736"><enum>(g)</enum><header>Required
registration for depository institutions and clearing agencies</header><text>A
person that is required to be registered as a derivatives clearing organization
under this section shall register with the Commission regardless of whether the
person is also licensed as a depository institution (as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or a clearing
agency registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).</text>
</subsection><subsection id="ID50a0dd96b76a413c8a2548c5271177f7"><enum>(h)</enum><header>Existing
depository institutions and clearing agencies</header>
<paragraph id="ID97eba5626a61407e811c42ae402c53c1"><enum>(1)</enum><header>In
general</header><text>A depository institution or clearing agency registered
with the Securities and Exchange Commission under the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) that is required to be registered as a
derivatives clearing organization under this section is deemed to be registered
under this section to the extent that, before the date of enactment of this
subsection—</text>
<subparagraph id="IDb96dce07489849c98bf4f83131292a54"><enum>(A)</enum><text>the depository
institution cleared swaps as a multilateral clearing organization; or</text>
</subparagraph><subparagraph id="ID1959c12cb06f4d3a9b246b3732cbd267"><enum>(B)</enum><text>the clearing
agency cleared swaps.</text>
</subparagraph></paragraph><paragraph id="IDa3e096444c47448da61119793b34c629"><enum>(2)</enum><header>Conversion of
depository institutions</header><text>A depository institution to which this
paragraph applies may, by the vote of the shareholders owning not less than 51
percent of the voting interests of the depository institution, be converted
into a State corporation, partnership, limited liability company, or similar
legal form pursuant to a plan of conversion, if the conversion is not in
contravention of applicable State law.</text>
</paragraph></subsection><subsection id="idD3C9C4DB684941C4A211EC5AC4FCE041"><enum>(i)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a derivatives clearing
organization from registration under this section for the clearing of swaps if
the Commission determines that the derivatives clearing organization is subject
to comparable, comprehensive supervision and regulation by the Securities and
Exchange Commission or the appropriate government authorities in the home
country of the organization. Such conditions may include, but are not limited
to, requiring that the derivatives clearing organization be available for
inspection by the Commission and make available all information requested by
the Commission.</text>
</subsection><subsection id="id8310173473164208B3BAE5C197A57A38"><enum>(j)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="id174DD1FC72E54EE38A77CF4CC0B399C8"><enum>(1)</enum><header>In
general</header><text>Each derivatives clearing organization shall designate an
individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="idAEFA9E48A7AC428E8B747F53B489BB22"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="id74A11751D007445CA41D5B3548699560"><enum>(A)</enum><text>report directly
to the board or to the senior officer of the derivatives clearing
organization;</text>
</subparagraph><subparagraph id="idD9E1BD640270409484F4137728FB839B"><enum>(B)</enum><text>review the
compliance of the derivatives clearing organization with respect to the core
principles described in subsection (c)(2);</text>
</subparagraph><subparagraph id="idCFBAC08193604852B1B0C643A861B0AF"><enum>(C)</enum><text>in consultation
with the board of the derivatives clearing organization, a body performing a
function similar to the board of the derivatives clearing organization, or the
senior officer of the derivatives clearing organization, resolve any conflicts
of interest that may arise;</text>
</subparagraph><subparagraph id="idE5E3527A72F74881BBB3FD3719376F45"><enum>(D)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="id5B81CA64CEFF49418DB414F92E507537"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</subparagraph><subparagraph id="idFDE151F718CF42FCA59B6C15FF957B3A"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the
compliance officer through any—</text>
<clause id="idD6CD9D68198740CFB24B64E39DBB1EE7"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="id8378D16C939D427789765DF6EC12CEB6"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="id2049335684F147719AB213AC5080429A"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="idCF21B18EAF4C4B6A916A0EE4949BE15E"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="id024E64B4187D42859919B7CF31E8B4DD"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="id4BD06DD70DF74219805528967E18CD59"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="id753F4F7B11AB41D0866F24489E90E595"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="idC5AB75BEC9DB4171BF7EDAFA14095B74"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="id7DA9AEB29A9E41F582494D5E1B29FB4A"><enum>(i)</enum><text>the
compliance of the derivatives clearing organization of the compliance officer
with respect to this Act (including regulations); and</text>
</clause><clause id="id748A8E7C5FD842DE94AB02752910DCCC"><enum>(ii)</enum><text>each
policy and procedure of the derivatives clearing organization of the compliance
officer (including the code of ethics and conflict of interest policies of the
derivatives clearing organization).</text>
</clause></subparagraph><subparagraph id="id88469BB8DF2742578FF20E5DA4FD45C0"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="idB3C3C0DEE18C46AAA049F2559990160A"><enum>(i)</enum><text>accompany each
appropriate financial report of the derivatives clearing organization that is
required to be furnished to the Commission pursuant to this section; and</text>
</clause><clause id="id07CC5F716315451D8D30E3AF04B6ED6E"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HC6E15B866A0D418385FEB099C209C528"><enum>(c)</enum><header>Core principles
for derivatives clearing organizations</header><text>Section 5b(c) of the
Commodity Exchange Act (7 U.S.C. 7a–1(c)) is amended by striking paragraph (2)
and inserting the following:</text>
<quoted-block id="H64633476118B4B45AA3405A653DB4D4B" style="OLC">
<paragraph id="HD43B8B1010A34A6D904F1752AF2E3FA0"><enum>(2)</enum><header>Core principles
for derivatives clearing organizations</header>
<subparagraph id="ID5f65f0db69d7401bbfd38b7140cc437f"><enum>(A)</enum><header>Compliance</header>
<clause id="ID606016b5bf1143aaa48f50d2eacff8e1"><enum>(i)</enum><header>In
general</header><text>To be registered and to maintain registration as a
derivatives clearing organization, a derivatives clearing organization shall
comply with each core principle described in this paragraph and any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</clause><clause id="ID0a21caa89a22479dbc901f7daa546f7d"><enum>(ii)</enum><header>Discretion of
derivatives clearing organization</header><text>Subject to any rule or
regulation prescribed by the Commission, a derivatives clearing organization
shall have reasonable discretion in establishing the manner by which the
derivatives clearing organization complies with each core principle described
in this paragraph.</text>
</clause></subparagraph><subparagraph id="IDfc33dafd64e744a393ef3aa452d9756a"><enum>(B)</enum><header>Financial
resources</header>
<clause id="ID447d5095b1ba4d529c1900959f896fba"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall have
adequate financial, operational, and managerial resources, as determined by the
Commission, to discharge each responsibility of the derivatives clearing
organization.</text>
</clause><clause id="IDf9025cca6e644f11bc95c253d3bdc98e"><enum>(ii)</enum><header>Minimum amount
of financial resources</header><text>Each derivatives clearing organization
shall possess financial resources that, at a minimum, exceed the total amount
that would—</text>
<subclause id="ID7dcf2a15277b42118c4027d0c923d104"><enum>(I)</enum><text>enable the
organization to meet its financial obligations to its members and participants
notwithstanding a default by the member or participant creating the largest
financial exposure for that organization in extreme but plausible market
conditions; and</text>
</subclause><subclause id="IDa12c4ae8d32743339a69ac5472741f3d"><enum>(II)</enum><text>enable the
derivatives clearing organization to cover the operating costs of the
derivatives clearing organization for a period of 1 year (as calculated on a
rolling basis).</text>
</subclause></clause></subparagraph><subparagraph id="ID9fc00b8e61864575b7a1711f5c5fac48"><enum>(C)</enum><header>Participant and
product eligibility</header>
<clause id="ID9f93ce9de9d44bf3968f430ba5e3fd4f"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall
establish—</text>
<subclause id="ID5f14dc773dd44514887d2ef7b96d4756"><enum>(I)</enum><text>appropriate
admission and continuing eligibility standards (including sufficient financial
resources and operational capacity to meet obligations arising from
participation in the derivatives clearing organization) for members of, and
participants in, the derivatives clearing organization; and</text>
</subclause><subclause id="IDf6ae43209d2b454a9d759b7695c0d95a"><enum>(II)</enum><text>appropriate
standards for determining the eligibility of agreements, contracts, and
transactions submitted to the derivatives clearing organization for
clearing.</text>
</subclause></clause><clause id="ID5b12b1ffefc04ee1aa3f22bd61847ff3"><enum>(ii)</enum><header>Required
procedures</header><text>Each derivatives clearing organization shall establish
and implement procedures to verify, on an ongoing basis, the compliance of each
participation and membership requirement of the derivatives clearing
organization.</text>
</clause><clause id="ID1a06ad3119174b2099b6592522b06a9a"><enum>(iii)</enum><header>Requirements</header><text>The
participation and membership requirements of each derivatives clearing
organization shall—</text>
<subclause id="IDbc832651895f413cab9c4ffaf59f38ba"><enum>(I)</enum><text>be
objective;</text>
</subclause><subclause id="ID5fe7132ec6104187bc0761e5f549d8bf"><enum>(II)</enum><text>be publicly
disclosed; and</text>
</subclause><subclause id="ID40d1298c77ed48a6a972ae653e1a04bb"><enum>(III)</enum><text>permit fair and
open access.</text>
</subclause></clause></subparagraph><subparagraph id="ID898cf573af264ade88fa5223e69d32c6"><enum>(D)</enum><header>Risk
management</header>
<clause id="ID716289f86ec24ec69ab1fc004e6a2c5f"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall ensure that
the derivatives clearing organization possesses the ability to manage the risks
associated with discharging the responsibilities of the derivatives clearing
organization through the use of appropriate tools and procedures.</text>
</clause><clause id="ID196ee22fab34487daac1a9aaa3fc56c8"><enum>(ii)</enum><header>Measurement of
credit exposure</header><text>Each derivatives clearing organization
shall—</text>
<subclause id="ID163e6e05895a4278a1473637d4c21647"><enum>(I)</enum><text>not less than
once during each business day of the derivatives clearing organization, measure
the credit exposures of the derivatives clearing organization to each member
and participant of the derivatives clearing organization; and</text>
</subclause><subclause id="IDec37aa0265d34e2680c04fd8662b768e"><enum>(II)</enum><text>monitor each
exposure described in subclause (I) periodically during the business day of the
derivatives clearing organization.</text>
</subclause></clause><clause id="IDb4b8e389b8ce484e8839b8f3a91d41d5"><enum>(iii)</enum><header>Limitation of
exposure to potential losses from defaults</header><text>Each derivatives
clearing organization, through margin requirements and other risk control
mechanisms, shall limit the exposure of the derivatives clearing organization
to potential losses from defaults by members and participants of the
derivatives clearing organization to ensure that—</text>
<subclause id="ID47c37c6a57824944a3eda85b64f11e2c"><enum>(I)</enum><text>the operations of
the derivatives clearing organization would not be disrupted; and</text>
</subclause><subclause id="ID8e18f827c0774c20b68e03926c3572f3"><enum>(II)</enum><text>nondefaulting
members or participants would not be exposed to losses that nondefaulting
members or participants cannot anticipate or control.</text>
</subclause></clause><clause id="IDc97251a5398b402296e17ef292f36c72"><enum>(iv)</enum><header>Margin
requirements</header><text>The margin required from each member and participant
of a derivatives clearing organization shall be sufficient to cover potential
exposures in normal market conditions.</text>
</clause><clause id="ID47b06ee03f844bacbc62f10a84dc99d9"><enum>(v)</enum><header>Requirements
regarding models and parameters</header><text>Each model and parameter used in
setting margin requirements under clause (iv) shall be—</text>
<subclause id="ID077338d6bedb4a7f915a5181864595c4"><enum>(I)</enum><text>risk-based;
and</text>
</subclause><subclause id="ID82d25a24bff049b9b5a97bc946099cd1"><enum>(II)</enum><text>reviewed on a
regular basis.</text>
</subclause></clause></subparagraph><subparagraph id="IDbeaca101f8c64d5da42f2493dc204444"><enum>(E)</enum><header>Settlement
procedures</header><text>Each derivatives clearing organization shall—</text>
<clause id="IDa7b84e2b10f24633962b11c95e26c22f"><enum>(i)</enum><text>complete money
settlements on a timely basis (but not less frequently than once each business
day);</text>
</clause><clause id="ID1f3b75c8c32c479cb9cf7a5bcf24d2c1"><enum>(ii)</enum><text>employ money
settlement arrangements to eliminate or strictly limit the exposure of the
derivatives clearing organization to settlement bank risks (including credit
and liquidity risks from the use of banks to effect money settlements);</text>
</clause><clause id="IDb6ceb2639cd54ec79b8d0caf0bddcc3d"><enum>(iii)</enum><text>ensure that
money settlements are final when effected;</text>
</clause><clause id="IDc711f29346d24ab6be67acdb7fc017f1"><enum>(iv)</enum><text>maintain an
accurate record of the flow of funds associated with each money
settlement;</text>
</clause><clause id="ID17383912a4b448779d09020bf0cacfa3"><enum>(v)</enum><text>possess the
ability to comply with each term and condition of any permitted netting or
offset arrangement with any other clearing organization;</text>
</clause><clause id="IDc42415f2faab47539f930f20a5ff0a74"><enum>(vi)</enum><text>regarding
physical settlements, establish rules that clearly state each obligation of the
derivatives clearing organization with respect to physical deliveries;
and</text>
</clause><clause id="ID13ac4da3b26b4133b94f6e77c3744611"><enum>(vii)</enum><text>ensure that
each risk arising from an obligation described in clause (vi) is identified and
managed.</text>
</clause></subparagraph><subparagraph id="HBA28443102FB483895F9495448E89493"><enum>(F)</enum><header>Treatment of
funds</header>
<clause id="ID95d9cef590574b488cfcd6638396d19f"><enum>(i)</enum><header>Required
standards and procedures</header><text>Each derivatives clearing organization
shall establish standards and procedures that are designed to protect and
ensure the safety of member and participant funds and assets.</text>
</clause><clause id="ID56d1c23e09904446938c0ce5dfcd2d08"><enum>(ii)</enum><header>Holding of
funds and assets</header><text>Each derivatives clearing organization shall
hold member and participant funds and assets in a manner by which to minimize
the risk of loss or of delay in the access by the derivatives clearing
organization to the assets and funds.</text>
</clause><clause id="IDe29d5c28bf4a41dd95301ebba30835d1"><enum>(iii)</enum><header>Permissible
investments</header><text>Funds and assets invested by a derivatives clearing
organization shall be held in instruments with minimal credit, market, and
liquidity risks.</text>
</clause></subparagraph><subparagraph id="HD0872AD40CA94A56A6CB53A97AD10901"><enum>(G)</enum><header>Default rules
and procedures</header>
<clause id="ID53caa8f7044b4da9be5b4417f5412d66"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall have rules
and procedures designed to allow for the efficient, fair, and safe management
of events during which members or participants—</text>
<subclause id="IDd479584c2c654d24afcc662c894b8ab6"><enum>(I)</enum><text>become insolvent;
or</text>
</subclause><subclause id="ID61eee8e311eb49e18649f4e6538eb137"><enum>(II)</enum><text>otherwise
default on the obligations of the members or participants to the derivatives
clearing organization.</text>
</subclause></clause><clause id="ID09d15b25743946de9d997c3c77e76c70"><enum>(ii)</enum><header>Default
procedures</header><text>Each derivatives clearing organization shall—</text>
<subclause id="ID085e1f37ac4c4c06b406765f0236bac8"><enum>(I)</enum><text>clearly state the
default procedures of the derivatives clearing organization;</text>
</subclause><subclause id="IDea7f156bd4f744569bae29db769dd27d"><enum>(II)</enum><text>make publicly
available the default rules of the derivatives clearing organization;
and</text>
</subclause><subclause id="ID4b8993ced0fb4bb9b37de3c4c0d15c2d"><enum>(III)</enum><text>ensure that the
derivatives clearing organization may take timely action—</text>
<item id="ID3bf510ba10204d8ab26e9c465acf46f9"><enum>(aa)</enum><text>to
contain losses and liquidity pressures; and</text>
</item><item id="ID9387c7057cbf4ebb821b5d8f12d8615f"><enum>(bb)</enum><text>to
continue meeting each obligation of the derivatives clearing
organization.</text>
</item></subclause></clause></subparagraph><subparagraph id="HA3375EB9FB2B40FDB5A3A53142094FF3"><enum>(H)</enum><header>Rule
enforcement</header><text>Each derivatives clearing organization shall—</text>
<clause id="IDfca2d49bcab7432b8599105d4cb99ae6"><enum>(i)</enum><text>maintain adequate
arrangements and resources for—</text>
<subclause id="IDa4d854ac81f6443b985ed4b5621a2ff0"><enum>(I)</enum><text>the effective
monitoring and enforcement of compliance with the rules of the derivatives
clearing organization; and</text>
</subclause><subclause id="ID4c420b6e5a37408b82161ae7ea25fabf"><enum>(II)</enum><text>the resolution
of disputes;</text>
</subclause></clause><clause id="ID65a92fb163924f938257c97b438bb41e"><enum>(ii)</enum><text>have
the authority and ability to discipline, limit, suspend, or terminate the
activities of a member or participant due to a violation by the member or
participant of any rule of the derivatives clearing organization; and</text>
</clause><clause id="ID6dfe434c41a9433eb1634d65233c0600"><enum>(iii)</enum><text>report to the
Commission regarding rule enforcement activities and sanctions imposed against
members and participants as provided in clause (ii).</text>
</clause></subparagraph><subparagraph id="H90D26C48FEA9408BB714AFAD7E14659D"><enum>(I)</enum><header>System
safeguards</header><text>Each derivatives clearing organization shall—</text>
<clause id="ID2ee43705a7194616b5fc0d874ed31bdb"><enum>(i)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk through the development of appropriate controls and
procedures, and automated systems, that are reliable, secure, and have adequate
scalable capacity;</text>
</clause><clause id="ID8e98f39804564c21a5b497cdd5b722cb"><enum>(ii)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allows for—</text>
<subclause id="IDaaff3a5feb5b4f6085db7101aefb7f7c"><enum>(I)</enum><text>the timely
recovery and resumption of operations of the derivatives clearing organization;
and</text>
</subclause><subclause id="ID62982ee4b73c4459a2cbc58829311165"><enum>(II)</enum><text>the fulfillment
of each obligation and responsibility of the derivatives clearing organization;
and</text>
</subclause></clause><clause id="IDb4b7a9cfebe2487f9da2cdb26281a0cb"><enum>(iii)</enum><text>periodically
conduct tests to verify that the backup resources of the derivatives clearing
organization are sufficient to ensure daily processing, clearing, and
settlement.</text>
</clause></subparagraph><subparagraph id="IDda1db2dfd0b74f9e83f18c2bd5d4f318"><enum>(J)</enum><header>Reporting</header><text>Each
derivatives clearing organization shall provide to the Commission all
information that the Commission determines to be necessary to conduct oversight
of the derivatives clearing organization.</text>
</subparagraph><subparagraph id="IDfa97e5fb72e84ffeb3ce7c96954516b5"><enum>(K)</enum><header>Recordkeeping</header><text>Each
derivatives clearing organization shall maintain records of all activities
related to the business of the derivatives clearing organization as a
derivatives clearing organization—</text>
<clause id="ID2645be67f61c4a6ea1f379f0a220a490"><enum>(i)</enum><text>in a
form and manner that is acceptable to the Commission; and</text>
</clause><clause id="ID9412ff1980124080af08280f1c25fb3a"><enum>(ii)</enum><text>for
a period of not less than 5 years.</text>
</clause></subparagraph><subparagraph id="HF05CBB8A292C404BA48406BEBFE5C5B7"><enum>(L)</enum><header>Public
information</header>
<clause id="ID993cec5ba2c64c04bdda4de355fcdf9c"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall provide to
market participants sufficient information to enable the market participants to
identify and evaluate accurately the risks and costs associated with using the
services of the derivatives clearing organization.</text>
</clause><clause id="ID6bdcca32a15b4089b402e7d705e6a6c0"><enum>(ii)</enum><header>Availability
of information</header><text>Each derivatives clearing organization shall make
information concerning the rules and operating procedures governing the
clearing and settlement systems of the derivatives clearing organization
available to market participants.</text>
</clause><clause id="IDb28192dbd51442b1babaaa20aa80700e"><enum>(iii)</enum><header>Public
disclosure</header><text>Each derivatives clearing organization shall disclose
publicly and to the Commission information concerning—</text>
<subclause id="ID200f767ebe8343a7bdb3b8401da4e5b0"><enum>(I)</enum><text>the terms and
conditions of each contract, agreement, and other transaction cleared and
settled by the derivatives clearing organization;</text>
</subclause><subclause id="ID7ddf20ac7ee9459ca2e12c95b7aa806e"><enum>(II)</enum><text>each clearing
and other fee that the derivatives clearing organization charges the members
and participants of the derivatives clearing organization;</text>
</subclause><subclause id="IDd0b7490588ee4cb5bedda83a0f248732"><enum>(III)</enum><text>the
margin-setting methodology, and the size and composition, of the financial
resource package of the derivatives clearing organization;</text>
</subclause><subclause id="ID3dc0ea621b8246498d777e2816f481cc"><enum>(IV)</enum><text>daily settlement
prices, volume, and open interest for each contract settled or cleared by the
derivatives clearing organization; and</text>
</subclause><subclause id="ID387f7045b9a3419ba01d4c9dd55d747f"><enum>(V)</enum><text>any other matter
relevant to participation in the settlement and clearing activities of the
derivatives clearing organization.</text>
</subclause></clause></subparagraph><subparagraph id="H0025A6CEAC3E4703A44B5203B2EC3E09"><enum>(M)</enum><header>Information-sharing</header><text>Each
derivatives clearing organization shall—</text>
<clause id="ID5529e4419a174255a25cf8deadd7f8b1"><enum>(i)</enum><text>enter
into, and abide by the terms of, each appropriate and applicable domestic and
international information-sharing agreement; and</text>
</clause><clause id="IDa8be7054f8fa4edfb3630d4eebc9c63e"><enum>(ii)</enum><text>use
relevant information obtained from each agreement described in clause (i) in
carrying out the risk management program of the derivatives clearing
organization.</text>
</clause></subparagraph><subparagraph id="H25A6E668D12040399D3FB76D6B5B062A"><enum>(N)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a derivatives clearing organization shall not—</text>
<clause id="ID702d9c78706040afb9e5cadf91a25e0f"><enum>(i)</enum><text>adopt
any rule or take any action that results in any unreasonable restraint of
trade; or</text>
</clause><clause id="IDf6653e1756254556ac15729c85f9e8d5"><enum>(ii)</enum><text>impose any
material anticompetitive burden.</text>
</clause></subparagraph><subparagraph id="H8E7776591BF54D85B7C25F4B63DFB054"><enum>(O)</enum><header>Governance
fitness standards</header>
<clause id="IDc9e34b8ea670400d9a056b89ce67301a"><enum>(i)</enum><header>Governance
arrangements</header><text>Each derivatives clearing organization shall
establish governance arrangements that are transparent—</text>
<subclause id="ID649fba1f52064bc18e66f37496d4bc66"><enum>(I)</enum><text>to
fulfill public interest requirements; and</text>
</subclause><subclause id="ID66e278b47238487e83f60941cbf7f209"><enum>(II)</enum><text>to support the
objectives of owners and participants.</text>
</subclause></clause><clause id="ID041d05f9e1f74f5c9eb62522e25cd6b3"><enum>(ii)</enum><header>Fitness
standards</header><text>Each derivatives clearing organization shall establish
and enforce appropriate fitness standards for—</text>
<subclause id="ID5c3899b4bfdb495b927bf380287f82f3"><enum>(I)</enum><text>directors;</text>
</subclause><subclause id="IDca4bf85fa6b640b4a019ccef7a101e9a"><enum>(II)</enum><text>members of any
disciplinary committee;</text>
</subclause><subclause id="ID90a76f2db2c740b8984ff34d5bd1b7b6"><enum>(III)</enum><text>members of the
derivatives clearing organization;</text>
</subclause><subclause id="ID382b21392d3e453a8c2a058e22373a46"><enum>(IV)</enum><text>any other
individual or entity with direct access to the settlement or clearing
activities of the derivatives clearing organization; and</text>
</subclause><subclause id="ID59b7b4dd275c40508033125ab7ef249a"><enum>(V)</enum><text>any party
affiliated with any individual or entity described in this clause.</text>
</subclause></clause></subparagraph><subparagraph id="HD9F04C1582F54A808E93869877FFAF6F"><enum>(P)</enum><header>Conflicts of
interest</header><text>Each derivatives clearing organization shall—</text>
<clause id="ID82e611a5ee4445759013d51c74efdd9f"><enum>(i)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the derivatives clearing organization; and</text>
</clause><clause id="IDf1803bded9cd4271bc1946fac8e31bb7"><enum>(ii)</enum><text>establish a
process for resolving conflicts of interest described in clause (i).</text>
</clause></subparagraph><subparagraph id="ID8f3b6065dc1b445e92eae7f76cec8e67"><enum>(Q)</enum><header>Composition of
governing boards</header><text>Each derivatives clearing organization shall
ensure that the composition of the governing board or committee of the
derivatives clearing organization includes market participants.</text>
</subparagraph><subparagraph id="IDd98881bcafce40d9b9d7677345a7fcf9"><enum>(R)</enum><header>Legal
risk</header><text>Each derivatives clearing organization shall have a
well-founded, transparent, and enforceable legal framework for each aspect of
the activities of the derivatives clearing organization.</text>
</subparagraph><subparagraph id="idAB1E205B586F431AB5B52B9D17A58EFB"><enum>(S)</enum><header>Modification of
core principles</header><text>The Commission may conform the core principles
established in this paragraph to reflect evolving United States and
international
standards.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB406099F79E846498CF2A6E13A9E0AE9"><enum>(d)</enum><header>Conflicts of
interest</header><text>The Commodity Futures Trading Commission shall adopt
rules mitigating conflicts of interest in connection with the conduct of
business by a swap dealer or a major swap participant with a derivatives
clearing organization, board of trade, or a swap execution facility that clears
or trades swaps in which the swap dealer or major swap participant has a
material debt or material equity investment.</text>
</subsection><subsection id="H2FA25A10909F48A29DB90ED340074A37"><enum>(e)</enum><header>Reporting
requirements</header><text>Section 5b of the Commodity Exchange Act (7 U.S.C.
7a–1) (as amended by subsection (b)) is amended by adding at the end the
following:</text>
<quoted-block id="H3A9F0EBD6EED4A8FB71A94F288B04780" style="OLC">
<subsection id="H05900D2CAB31437DBED54B3D7A656DD3"><enum>(k)</enum><header>Reporting
requirements</header>
<paragraph id="IDb985195fcf4a413a98584036f72516f0"><enum>(1)</enum><header>Duty of
derivatives clearing organizations</header><text>Each derivatives clearing
organization that clears swaps shall provide to the Commission all information
that is determined by the Commission to be necessary to perform each
responsibility of the Commission under this Act.</text>
</paragraph><paragraph id="ID84a59ede2c564c6ea0ea1ac35dc452f4"><enum>(2)</enum><header>Data collection
and maintenance requirements</header><text>The Commission shall adopt data
collection and maintenance requirements for swaps cleared by derivatives
clearing organizations that are comparable to the corresponding requirements
for—</text>
<subparagraph id="ID447d5ababe904606928395b4928bc571"><enum>(A)</enum><text>swaps data
reported to swap data repositories; and</text>
</subparagraph><subparagraph id="IDfac52deccd8242479a3eafb4572de94a"><enum>(B)</enum><text>swaps traded on
swap execution facilities.</text>
</subparagraph></paragraph><paragraph id="ID599608398d554cdc9c263de8665defb9"><enum>(3)</enum><header>Reports on
security-based swap agreements to be shared with the Securities and Exchange
Commission</header>
<subparagraph id="id393BE4A439104658B63F245EB51DE840"><enum>(A)</enum><header>In
general</header><text>A derivatives clearing organization that clears
security-based swap agreements (as defined in section 3(a)(79) of the
Securities Exchange Act) shall, upon request, make available to the Securities
and Exchange Commission all books and records relating to such security-based
swap agreements, consistent with the confidentiality and disclosure
requirements of section 8.</text>
</subparagraph><subparagraph id="id93A03EE0331547CAAFA057D692E3160D"><enum>(B)</enum><header>Jurisdiction</header><text>Nothing
in this paragraph shall affect the exclusive jurisdiction of the Commission to
prescribe recordkeeping and reporting requirements for a derivatives clearing
organization that is registered with the Commission.”</text>
</subparagraph></paragraph><paragraph id="ID0bedf25f163a427f9f236adde8000d6e"><enum>(4)</enum><header>Information
sharing</header><text>Subject to section 8, and upon request, the Commission
shall share information collected under paragraph (2) with—</text>
<subparagraph id="ID6e0bc1a3acb94d7688398950d86054d0"><enum>(A)</enum><text>the Board;</text>
</subparagraph><subparagraph id="ID535dc889fce844f9b6ee1fe376a38a50"><enum>(B)</enum><text>the Securities
and Exchange Commission;</text>
</subparagraph><subparagraph id="ID196e688c1e5f4c6fa82108df41b5f35a"><enum>(C)</enum><text>each appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="ID67e83123bf2a4156aa3ba577ec31bd6a"><enum>(D)</enum><text>the Financial
Stability Oversight Council;</text>
</subparagraph><subparagraph id="idFB2DF50D032647A3AC6C33803406AA95"><enum>(E)</enum><text>the Department of
Justice; and</text>
</subparagraph><subparagraph id="ID4307529b39a94d46bef192f8e0e89736"><enum>(F)</enum><text>any other person
that the Commission determines to be appropriate, including—</text>
<clause id="ID3f0219a37c7c4041989caf72b5fec3e9"><enum>(i)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</clause><clause id="IDe8f86bdae9ef42658af640436e8a5e43"><enum>(ii)</enum><text>foreign central
banks; and</text>
</clause><clause id="ID5f2e7d591197427fa5ae9d2e78a3d3e4"><enum>(iii)</enum><text>foreign
ministries.</text>
</clause></subparagraph></paragraph><paragraph id="id3402EEDCF7264783B47D0C17568E668A"><enum>(5)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the Commission may share
information with any entity described in paragraph (4)—</text>
<subparagraph id="id67F9EA48B30F4121BBEDA6DDC6DC35BE"><enum>(A)</enum><text>the Commission
shall receive a written agreement from each entity stating that the entity
shall abide by the confidentiality requirements described in section 8 relating
to the information on swap transactions that is provided; and</text>
</subparagraph><subparagraph id="id70E0875C887D48F6A6C7EA2D79EC8325"><enum>(B)</enum><text>each entity shall
agree to indemnify the Commission for any expenses arising from litigation
relating to the information provided under section 8.</text>
</subparagraph></paragraph><paragraph id="ID88e846e1e6ba49f0b1b07dc020112bd5"><enum>(6)</enum><header>Public
information</header><text>Each derivatives clearing organization that clears
swaps shall provide to the Commission (including any designee of the
Commission) information under paragraph (2) in such form and at such frequency
as is required by the Commission to comply with the public reporting
requirements contained in section
2(a)(13).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HABD7B76838DF4AF08EFC6E8DF6F3CFB9"><enum>(f)</enum><header>Public
disclosure</header><text>Section 8(e) of the Commodity Exchange Act (7 U.S.C.
12(e)) is amended in the last sentence—</text>
<paragraph id="ID2c8540802ac6486b8690da876b6e765a"><enum>(1)</enum><text>by
inserting <quote>, central bank and ministries,</quote> after
<quote>department</quote> each place it appears; and</text>
</paragraph><paragraph id="IDab2c8566ec4846069f7e73ab5bef68ec"><enum>(2)</enum><text>by
striking <quote>. is a party.</quote> and inserting <quote>, is a
party.</quote>.</text>
</paragraph></subsection><subsection id="HC8EE223077ED435F91087D43C7B3DA90"><enum>(g)</enum><header>Legal certainty
for identified banking products</header>
<paragraph id="IDea5a6940bc044feebc3d87c3d828c63f"><enum>(1)</enum><header>Repeals</header><text>The
Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27 et seq.) is
amended—</text>
<subparagraph id="ID28d9c6aaa8c347258d2221ae1a58f838"><enum>(A)</enum><text>by striking
sections 404 and 407 (7 U.S.C. 27b, 27e);</text>
</subparagraph><subparagraph id="ID2819c481db564b91821dfb61d50b83a5"><enum>(B)</enum><text>in section 402 (7
U.S.C. 27), by striking subsection (d); and</text>
</subparagraph><subparagraph id="ID2c64abe5312942848c4eb44d58bf4beb"><enum>(C)</enum><text>in section 408 (7
U.S.C. 27f)—</text>
<clause id="ID01195c070ae9467b8e0263e2f434c72f"><enum>(i)</enum><text>in
subsection (c)—</text>
<subclause id="IDaf8598bfa2eb443aa0fc7942eba26bc2"><enum>(I)</enum><text>by
striking <quote>in the case</quote> and all that follows through <quote>a
hybrid</quote> and inserting <quote>in the case of a hybrid</quote>;</text>
</subclause><subclause id="ID1189f30411df4f3586e3997ac9b0e129"><enum>(II)</enum><text>by
striking <quote>; or</quote> and inserting a period; and</text>
</subclause><subclause id="IDee3d5473baa04829bb900727564f8413"><enum>(III)</enum><text>by
striking paragraph (2);</text>
</subclause></clause><clause id="ID1ac920c8a9524d30b5439d2dc80e0880"><enum>(ii)</enum><text>by
striking subsection (b); and</text>
</clause><clause id="IDc5e6cc1d6be74b9190423ed81afdfcb2"><enum>(iii)</enum><text>by
redesignating subsection (c) as subsection (b).</text>
</clause></subparagraph></paragraph><paragraph id="IDa1fe13a70fbd4f0094654dc1c5dc00b1"><enum>(2)</enum><header>Legal Certainty
for Bank Products Act of 2000</header><text>Section 403 of the Legal Certainty
for Bank Products Act of 2000 (7 U.S.C. 27a) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id5292AD142BB6449C95C383A85393C886" style="OLC">
<section commented="no" id="ID91c4ba47d23b4722b6a87a41070b8c91"><enum>403.</enum><header>Exclusion of
identified banking product</header>
<subsection commented="no" id="IDe4f54bef10f44750a1ff0b51885a2b2f"><enum>(a)</enum><header>Exclusion</header><text>Except
as provided in subsection (b) or (c)—</text>
<paragraph commented="no" id="id3AD289F0D12141F2BFA6772BFEEDF36A"><enum>(1)</enum><text>the Commodity
Exchange Act (7 U.S.C. 1 et seq.) shall not apply to, and the Commodity Futures
Trading Commission shall not exercise regulatory authority under the Commodity
Exchange Act (7 U.S.C. 1 et seq.) with respect to, an identified banking
product; and</text>
</paragraph><paragraph id="ID19600838cd3e43fbbf112eabeae9db36"><enum>(2)</enum><text>the definitions
of <quote>security-based swap</quote> in section 3(a)(68) of the Securities
Exchange Act of 1934 and <quote>security-based swap agreement</quote> in
section 3(a)(79) of the Securities Exchange Act of 1934 do not include any
identified bank product.</text>
</paragraph></subsection><subsection commented="no" id="IDb77e533fac3e4a9f8830d0f18ef7f6bf"><enum>(b)</enum><header>Exception</header><text>An
appropriate Federal banking agency may except an identified banking product of
a bank under its regulatory jurisdiction from the exclusion in subsection (a)
if the agency determines, in consultation with the Commodity Futures Trading
Commission and the Securities and Exchange Commission, that the product—</text>
<paragraph commented="no" id="ID90c96f56152e42deaa078e75f3a30728"><enum>(1)</enum><text>would meet the
definition of a <quote>swap</quote> under section 1a(46) of the Commodity
Exchange Act (7 U.S.C. 1a) or a <quote>security-based swap</quote> under that
section 3(a)(68) of the Securities Exchange Act of 1934; and</text>
</paragraph><paragraph commented="no" id="ID91909f522d4d49a28683adfd0f2c6cd9"><enum>(2)</enum><text>has become known
to the trade as a swap or security-based swap, or otherwise has been structured
as an identified banking product for the purpose of evading the provisions of
the Commodity Exchange Act (7 U.S.C. 1 et seq.), the Securities Act of 1933 (15
U.S.C. 77a et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph></subsection><subsection id="IDf0ec79e7e9a74ab88a117c89e852dda5"><enum>(c)</enum><header>Exception</header><text>The
exclusions in subsection (a) shall not apply to an identified bank product
that—</text>
<paragraph id="ID61b25d4b841f4433adb0439a559c99d6"><enum>(1)</enum><text>is
a product of a bank that is not under the regulatory jurisdiction of an
appropriate Federal banking agency;</text>
</paragraph><paragraph id="ID56a57377fc324d97b09eb0518d2057e5"><enum>(2)</enum><text>meets the
definition of swap in section 1a(46) of the Commodity Exchange Act or
security-based swap in section 3(a)(68) of the Securities Exchange Act of 1934;
and</text>
</paragraph><paragraph id="ID8ca70991eab744729d23fea5f47cb4f6"><enum>(3)</enum><text>has become known
to the trade as a swap or security-based swap, or otherwise has been structured
as an identified banking product for the purpose of evading the provisions of
the Commodity Exchange Act (7 U.S.C. 1 et seq.), the Securities Act of 1933 (15
U.S.C. 77a et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idC7CBAA79B99F4BB4A4A008D641FE52C3"><enum>726.</enum><header>Rulemaking on
conflict of interest</header>
<subsection id="IDa96a670dc8004ac58d6f8b87374fc089"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
the Wall Street Transparency and Accountability Act of 2010, the Commodity
Futures Trading Commission shall determine whether to adopt rules to establish
limits on the control of any derivatives clearing organization that clears
swaps, or swap execution facility or board of trade designated as a contract
market that posts swaps or makes swaps available for trading, by a bank holding
company (as defined in section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841)) with total consolidated assets of $50,000,000,000 or more, a
nonbank financial company (as defined in section 102) supervised by the Board
of Governors of the Federal Reserve System, an affiliate of such a bank holding
company or nonbank financial company, a swap dealer, major swap participant, or
associated person of a swap dealer or major swap participant.</text>
</subsection><subsection id="IDbb5fd4f98d2049fc98f7cf20671b19f7"><enum>(b)</enum><header>Purposes</header><text>The
Commission shall adopt rules if it determines, after the review described in
subsection (a), that such rules are necessary or appropriate to improve the
governance of, or to mitigate systemic risk, promote competition, or mitigate
conflicts of interest in connection with a swap dealer or major swap
participant’s conduct of business with, a derivatives clearing organization,
contract market, or swap execution facility that clears or posts swaps or makes
swaps available for trading and in which such swap dealer or major swap
participant has a material debt or equity investment.</text>
</subsection></section><section id="H6CA8106E1C444F8FA122F3DB7593A9C5"><enum>727.</enum><header>Public
reporting of swap transaction data</header><text display-inline="no-display-inline">Section 2(a) of the Commodity Exchange Act
(7 U.S.C. 2(a)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9890DE07C18449DAA5AD894522A7A120" style="OLC">
<paragraph id="idEE426E77835A45A0A27B3FAAE40A0C3C"><enum>(13)</enum><header>Public
availability of swap transaction data</header>
<subparagraph id="id3CBBC09305BD44EF9988294A489FFDA2"><enum>(A)</enum><header>Definition of
real-time public reporting</header><text>In this paragraph, the term
<term>real-time public reporting</term> means to report data relating to a swap
transaction as soon as technologically practicable after the time at which the
swap transaction has been executed.</text>
</subparagraph><subparagraph id="id73256B4295DB4CEBAD4E88869B4A36BF"><enum>(B)</enum><header>Purpose</header><text>The
purpose of this section is to authorize the Commission to make swap transaction
and pricing data available to the public in such form and at such times as the
Commission determines appropriate to enhance price discovery.</text>
</subparagraph><subparagraph id="idA1EF508AD0294095BAA89CB97BBC1A4D"><enum>(C)</enum><header>General
rule</header><text>The Commission is authorized and required to provide by rule
for the public availability of swap transaction and pricing data as
follows:</text>
<clause id="id7B747E3F100C47FCA85BE24390E88E0C"><enum>(i)</enum><text>With
respect to those swaps that are subject to the mandatory clearing requirement
described in subsection (h)(2) (including those swaps that are exempted from
the requirement pursuant to subsection (h)(10)), the Commission shall require
real-time public reporting for such transactions.</text>
</clause><clause id="idC091D284C7BC43538BC892370B0B4060"><enum>(ii)</enum><text>With
respect to those swaps that are not subject to the mandatory clearing
requirement described in subsection (h)(2), but are cleared at a registered
derivatives clearing organization, the Commission shall require real-time
public reporting for such transactions.</text>
</clause><clause id="id5A5D168D814243D3A9C4EBF224419DB7"><enum>(iii)</enum><text>With respect to
swaps that are not cleared at a registered derivatives clearing organization
and which are reported to a swap data repository or the Commission under
subsection (h), the Commission 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 such swap trading volumes and positions.</text>
</clause><clause id="ID714d18bc7dab49759d14653ae1ed957e"><enum>(iv)</enum><text>With
respect to swaps that are exempt from the requirements of subsection (h)(1),
pursuant to subsection (h)(10), the Commission shall require real-time public
reporting for such transactions.</text>
</clause></subparagraph><subparagraph id="idDF516D841230436291B5B0391EBDB45B"><enum>(D)</enum><header>Registered
entities and public reporting</header><text>The Commission may require
registered entities to publicly disseminate the swap transaction and pricing
data required to be reported under this paragraph.</text>
</subparagraph><subparagraph id="id50BB361F6863405FA7E56AC9C612D331"><enum>(E)</enum><header>Rulemaking
required</header><text>With respect to the rule providing for the public
availability of transaction and pricing data for swaps described in clauses (i)
and (ii) of subparagraph (C), the rule promulgated by the Commission shall
contain provisions—</text>
<clause id="idDC6349FB66014828B311F81FE61EB1AD"><enum>(i)</enum><text>to
ensure such information does not identify the participants;</text>
</clause><clause id="id5AC4C4F942C24475A351D1C139FE9933"><enum>(ii)</enum><text>to
specify the criteria for determining what constitutes a large notional swap
transaction (block trade) for particular markets and contracts;</text>
</clause><clause id="id0EF54C12F6C64CBA85C1C068641AE25F"><enum>(iii)</enum><text>to
specify the appropriate time delay for reporting large notional swap
transactions (block trades) to the public; and</text>
</clause><clause id="id80EC1A624BC845E99BFB1E4F7AC939BE"><enum>(iv)</enum><text>that
take into account whether the public disclosure will materially reduce market
liquidity.</text>
</clause></subparagraph><subparagraph id="id91DFE51997DA45738B567900731BBA96"><enum>(F)</enum><header>Timeliness of
reporting</header><text>Parties to a swap (including agents of the parties to a
swap) shall be responsible for reporting swap transaction information to the
appropriate registered entity in a timely manner as may be prescribed by the
Commission.</text>
</subparagraph></paragraph><paragraph commented="no" id="id0EDE192DB8E54E758BE0FE1E1AD8F9EA"><enum>(14)</enum><header>Semiannual and
annual public reporting of aggregate swap data</header>
<subparagraph commented="no" id="id8E5C0180220E4CF19EE4A8E50E4E48A9"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
issue a written report on a semiannual and annual basis to make available to
the public information relating to—</text>
<clause commented="no" id="idA30C2B0DCBF047FF9B705AA273DE0F95"><enum>(i)</enum><text>the trading and
clearing in the major swap categories; and</text>
</clause><clause commented="no" id="id1B5C5CA3BFB44AAEB458F9BFBF6CC172"><enum>(ii)</enum><text>the market
participants and developments in new products.</text>
</clause></subparagraph><subparagraph commented="no" id="id28F581E6CF234FB9808A4EC9ED68E9B4"><enum>(B)</enum><header>Use;
consultation</header><text>In preparing a report under subparagraph (A), the
Commission shall—</text>
<clause commented="no" id="idDA0D4B68418541889BE7E3DCE6A9C32C"><enum>(i)</enum><text>use information
from swap data repositories and derivatives clearing organizations; and</text>
</clause><clause commented="no" id="id1A4E73FAB093494FB4F71F5183F51A9C"><enum>(ii)</enum><text>consult with the
Office of the Comptroller of the Currency, the Bank for International
Settlements, and such other regulatory bodies as may be
necessary.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE8F13071E3EA41FB9AF9E98A29A8F2E0"><enum>728.</enum><header>Swap
data repositories</header><text display-inline="no-display-inline">The
Commodity Exchange Act is amended by inserting after section 20 (7 U.S.C. 24)
the following:</text>
<quoted-block display-inline="no-display-inline" id="HA2CBED438DE740689C4DACEA62CB88AE" style="OLC">
<section id="H126ABA08D83C45E8BADC11B6CB9F566A"><enum>21.</enum><header>Swap data
repositories</header>
<subsection id="id4AA02386DE2848CC8A640D838CDA8D27"><enum>(a)</enum><header>Registration
requirement</header>
<paragraph id="id913FA353CBAE4B06BABCB21FFA46B808"><enum>(1)</enum><header>In
general</header><text>It shall be unlawful for any person, unless registered
with the Commission, directly or indirectly to make use of the mails or any
means or instrumentality of interstate commerce to perform the functions of a
swap data repository.</text>
</paragraph><paragraph id="id6E3A03F40D074D34B0A378511ADCAB4A"><enum>(2)</enum><header>Inspection and
examination</header><text>Each registered swap data repository shall be subject
to inspection and examination by any representative of the Commission.</text>
</paragraph><paragraph id="idEA79A3C80D47475596FF650F95715488"><enum>(3)</enum><header>Compliance with
core principles</header>
<subparagraph id="idDB7AE7A4F9384152A577A2305E8E12FF"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a swap
data repository, the swap data repository shall comply with—</text>
<clause id="idA4FC3A6C44DD4C698C09C44D8C1DF072"><enum>(i)</enum><text>the
core principles described in this subsection; and</text>
</clause><clause id="id8B829674C1F249E18A7ED2E21831E23E"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation pursuant to
section 8a(5).</text>
</clause></subparagraph><subparagraph id="id2EC3C668C38D445BA51897CD75E7ECE3"><enum>(B)</enum><header>Reasonable
discretion of swap data repository</header><text>Unless otherwise determined by
the Commission by rule or regulation, a swap data repository described in
subparagraph (A) shall have reasonable discretion in establishing the manner in
which the swap data repository complies with the core principles described in
this subsection.</text>
</subparagraph></paragraph></subsection><subsection id="idC8CC5779D17A4D179C29495072068798"><enum>(b)</enum><header>Standard
setting</header>
<paragraph id="idF52A13D8DD2C451EA793CF3C5C4446E5"><enum>(1)</enum><header>Data
identification</header><text>The Commission shall prescribe standards that
specify the data elements for each swap that shall be collected and maintained
by each registered swap data repository.</text>
</paragraph><paragraph id="id98AE4EA150BD46B383146563AD3BCE9C"><enum>(2)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for swap data repositories.</text>
</paragraph><paragraph id="id65F5BE4F94C5431295C79C6D12AA0AE5"><enum>(3)</enum><header>Comparability</header><text>The
standards prescribed by the Commission under this subsection shall be
comparable to the data standards imposed by the Commission on derivatives
clearing organizations in connection with their clearing of swaps.</text>
</paragraph><paragraph id="id02F933E42904471FAF934C4AFA3B01E9"><enum>(4)</enum><header>Sharing of
information with Securities and Exchange Commission</header><text>Registered
swap data repositories shall make available to the Securities and Exchange
Commission, upon request, all books and records relating to security-based swap
agreements that are maintained by such swap data repository, consistent with
the confidentiality and disclosure requirements of section 8. Nothing in this
paragraph shall affect the exclusive jurisdiction of the Commission to
prescribe recordkeeping and reporting requirements for a swap data repository
that is registered with the Commission.</text>
</paragraph></subsection><subsection id="id495F160BB0BD4A2CA25F025B86E43224"><enum>(c)</enum><header>Duties</header><text>A
swap data repository shall—</text>
<paragraph id="id032ECF304D284AD3B7EE68BFDA903188"><enum>(1)</enum><text>accept data
prescribed by the Commission for each swap under subsection (b);</text>
</paragraph><paragraph id="id4379EADDEB4744B8BBF1A48456DC3B1A"><enum>(2)</enum><text>confirm with both
counterparties to the swap the accuracy of the data that was submitted;</text>
</paragraph><paragraph id="idB7EC1CB3111D4A4785EF7599DFBC801D"><enum>(3)</enum><text>maintain the data
described in paragraph (1) in such form, in such manner, and for such period as
may be required by the Commission;</text>
</paragraph><paragraph id="id37C9190D0F924E63A506FA570301B353"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id95D5D65DF5B2497BAF8BE2257184C16E"><enum>(A)</enum><text>provide direct
electronic access to the Commission (or any designee of the Commission,
including another registered entity); and</text>
</subparagraph><subparagraph id="idF11ED447BEC14529BC11F1F53D0E1782" indent="up1"><enum>(B)</enum><text>provide the information described in
paragraph (1) in such form and at such frequency as the Commission may require
to comply with the public reporting requirements contained in section
2(a)(13);</text>
</subparagraph></paragraph><paragraph id="id7CAADA9D57AA40299C8DF4EB1FDAA125"><enum>(5)</enum><text>at
the direction of the Commission, establish automated systems for monitoring,
screening, and analyzing swap data, including compliance and frequency of end
user clearing exemption claims by individual and affiliated entities;</text>
</paragraph><paragraph id="id823B02DA044446A79E6219FC8F028455"><enum>(6)</enum><text>maintain the
privacy of any and all swap transaction information that the swap data
repository receives from a swap dealer, counterparty, or any other registered
entity; and</text>
</paragraph><paragraph id="id2CEA74F959344086AD8B7B45851E8195"><enum>(7)</enum><text>on
a confidential basis pursuant to section 8, upon request, and after notifying
the Commission of the request, make available all data obtained by the swap
data repository, including individual counterparty trade and position data,
to—</text>
<subparagraph id="id3B23E6D0C27C411691AC4D9FAC020805"><enum>(A)</enum><text>each appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="id6F5E54E0C6F74B938DE76BCE56794FF0"><enum>(B)</enum><text>the Financial
Stability Oversight Council;</text>
</subparagraph><subparagraph id="IDc3314202ce0d417c89d05b1482a453e2"><enum>(C)</enum><text>the Securities
and Exchange Commission;</text>
</subparagraph><subparagraph id="id3EDD289A03B24D48BBFC12FD5FF4745E"><enum>(D)</enum><text>the Department of
Justice; and</text>
</subparagraph><subparagraph id="idFF06BB2D24B64794A61ED9444F941803"><enum>(E)</enum><text>any other person
that the Commission determines to be appropriate, including—</text>
<clause id="idAE44E11F7A5448E5B6CC6AD83F3EE271"><enum>(i)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</clause><clause id="idCE73448921244A798BD9114B5FA7F85C"><enum>(ii)</enum><text>foreign central
banks;</text>
</clause><clause id="id99165F2E85004E719A79FFA41E4B5196"><enum>(iii)</enum><text>foreign
ministries; and</text>
</clause></subparagraph></paragraph><paragraph id="ID3400aa719b854ae292f05f9d38bb06f5"><enum>(8)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allows for the timely recovery and resumption of operations and
the fulfillment of the responsibilities and obligations of the
organization.</text>
</paragraph></subsection><subsection id="id916466B4AB894AA0A816D0E0EBAD7558"><enum>(d)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the swap data repository may
share information with any entity described above—</text>
<paragraph id="id287EEC9BB22544C3BABBC62CCBA8E2C2"><enum>(1)</enum><text>the swap data
repository shall receive a written agreement from each entity stating that the
entity shall abide by the confidentiality requirements described in section 8
relating to the information on swap transactions that is provided; and</text>
</paragraph><paragraph id="id71C32D53CDFF49BFB98B842F956078C2"><enum>(2)</enum><text>each entity shall
agree to indemnify the swap data repository and the Commission for any expenses
arising from litigation relating to the information provided under section
8.</text>
</paragraph></subsection><subsection id="id4A0D02324D9848B586979208ED43C48A"><enum>(e)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="id8F65EEBC47374070BD10D13F7F8B9549"><enum>(1)</enum><header>In
general</header><text>Each swap data repository shall designate an individual
to serve as a chief compliance officer.</text>
</paragraph><paragraph id="id08910421B5AD407E9BA32371BBFACBAE"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="id970D93B93E4F45669D74E4EC884F1DAA"><enum>(A)</enum><text>report directly
to the board or to the senior officer of the swap data repository;</text>
</subparagraph><subparagraph id="idC8E0BD1B61C34DD2A6DE2B66612B7270"><enum>(B)</enum><text>review the
compliance of the swap data repository with respect to the core principles
described in subsection (f);</text>
</subparagraph><subparagraph id="id1F473441695D401FBF23B43B380302FE"><enum>(C)</enum><text>in consultation
with the board of the swap data repository, a body performing a function
similar to the board of the swap data repository, or the senior officer of the
swap data repository, resolve any conflicts of interest that may arise;</text>
</subparagraph><subparagraph id="idDF9654CDB8744B5E9A921BC985DF5962"><enum>(D)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="id4BB8ABB9B4FC4810A23C55F2E74B48BA"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</subparagraph><subparagraph id="idA3D51813398D46CB9AFC89BF0A11C0D4"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="id81FCB25EA7AD42DD9C48DDD33DA825FA"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="id234B0C9C55BF436893B9D6E848678D32"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="idCE740676C2464C37B345B5445027325A"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="id43065B5284954354BAD33C10C158BFBA"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="id9D31700B5EA74274AC03C234418DD7DD"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="id42E863B3127B4263AE8B0E0AE9B507D1"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="id9C818E2DAE0A4B08BEE1A2F055C6C2F2"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="id195C291256E942DC91CED2E6950B7B80"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="idBDDD8C39516C496C8B146FE587E98C8F"><enum>(i)</enum><text>the
compliance of the swap data repository of the chief compliance officer with
respect to this Act (including regulations); and</text>
</clause><clause id="id2962F5163BFD4F34A36CF0FC60667BB3"><enum>(ii)</enum><text>each
policy and procedure of the swap data repository of the chief compliance
officer (including the code of ethics and conflict of interest policies of the
swap data repository).</text>
</clause></subparagraph><subparagraph id="id666E737E9E8741B89A81193CA9416B7A"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="id025B59EE525E4587A7EA0E8C5C5E439A"><enum>(i)</enum><text>accompany each
appropriate financial report of the swap data repository that is required to be
furnished to the Commission pursuant to this section; and</text>
</clause><clause id="id202D2B3C1164475A92DB7CC76B7C9543"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id2172269A58064E7EB69D618DB148BFEA"><enum>(f)</enum><header>Core principles
applicable to swap data repositories</header>
<paragraph commented="no" id="idDE23781BC3B24A408C518FAEAD35AC2B"><enum>(1)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a swap data repository shall not</text>
<subparagraph commented="no" id="idB2E5C99B4FED4FC5A77EF3BBA7113A2E"><enum>(A)</enum><text>adopt any rule or
take any action that results in any unreasonable restraint of trade; or</text>
</subparagraph><subparagraph commented="no" id="idE5BB39DA37604152B8A786CB75D4DD13"><enum>(B)</enum><text>impose any
material anticompetitive burden on the trading, clearing, or reporting of
transactions.</text>
</subparagraph></paragraph><paragraph commented="no" id="id3301360AC955413D9504D1FF0DFCB822"><enum>(2)</enum><header>Governance
arrangements</header><text>Each swap data repository shall establish governance
arrangements that are transparent—</text>
<subparagraph commented="no" id="id382B51C6444145339DE31565B26088A7"><enum>(A)</enum><text>to fulfill public
interest requirements; and</text>
</subparagraph><subparagraph commented="no" id="id95D45DB31BF544B9A579A9576785065A"><enum>(B)</enum><text>to support the
objectives of the Federal Government, owners, and participants.</text>
</subparagraph></paragraph><paragraph commented="no" id="id3AAF88B383EB4F908669E0CB7761B0F6"><enum>(3)</enum><header>Conflicts of
interest</header><text>Each swap data repository shall—</text>
<subparagraph commented="no" id="id6AD55ED5DEF1488491CB652CF1D89FBB"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the swap data repository; and</text>
</subparagraph><subparagraph commented="no" id="idB945A778F9C14B4F86F45EFE5DAA2C57"><enum>(B)</enum><text>establish a
process for resolving conflicts of interest described in subparagraph
(A).</text>
</subparagraph></paragraph></subsection><subsection id="idFAB44B4A12724B7089CE16FC0AF27687"><enum>(g)</enum><header>Required
registration for swap data repositories</header><text display-inline="yes-display-inline">Any person that is required to be
registered as a swap data repository under this section shall register with the
Commission regardless of whether that person is also licensed as a bank or
registered with the Securities and Exchange Commission as a swap data
repository.</text>
</subsection><subsection id="id1A71DE92FEAA4D9BAFB10877C96AE1F7"><enum>(h)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H1704392BE539494096549027726EB5AD"><enum>729.</enum><header>Reporting and
recordkeeping</header><text display-inline="no-display-inline">The Commodity
Exchange Act is amended by inserting after section 4q (7 U.S.C. 6o-1) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HDD993CC3E175412CABA7BE1D54CF87D6" style="OLC">
<section id="H04F72E1C82AF4CCA8277E75C3FAF8E21"><enum>4r.<?LEXA-Enum 4r.?></enum><header>Reporting and recordkeeping for uncleared
swaps</header>
<subsection id="ID1d12b46085ba464d840ab80741d36f59"><enum>(a)</enum><header>Required
reporting of swaps not accepted by any derivatives clearing
organization</header>
<paragraph id="IDf19c5d654fe14e31b709e7e558b2f085"><enum>(1)</enum><header>In
general</header><text>Each swap that is not accepted for clearing by any
derivatives clearing organization shall be reported to—</text>
<subparagraph id="IDe0beed349d944f8b9b95441f81265c0e"><enum>(A)</enum><text>a swap data
repository described in section 21; or</text>
</subparagraph><subparagraph id="ID625830b92b4c46ddb8bb8c30075bd465"><enum>(B)</enum><text>in the case in
which there is no swap data repository that would accept the swap, to the
Commission pursuant to this section within such time period as the Commission
may by rule or regulation prescribe.</text>
</subparagraph></paragraph><paragraph id="idB5F2C0A36EC24119B1043F4026D2596B"><enum>(2)</enum><header>Transition rule
for preenactment swaps</header>
<subparagraph id="idC42D66521E734371A8ACC1A6DFF11367"><enum>(A)</enum><header>Swaps entered
into before the date of enactment of the Wall Street Transparency and
Accountability Act of 2010</header><text>Each swap entered into before the date
of enactment of the <short-title>Wall Street Transparency
and Accountability Act of 2010</short-title>, the terms of which have not
expired as of the date of enactment of that Act, shall be reported to a
registered swap data repository or the Commission by a date that is not later
than—</text>
<clause id="id3ACE2486B7444D44828CCAD3D46C567D"><enum>(i)</enum><text>30
days after issuance of the interim final rule; or</text>
</clause><clause id="id5FBBF39D22EF4EAAA8A1D394AE625754"><enum>(ii)</enum><text>such
other period as the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="id2954272CACED4F8499FD626386147B94"><enum>(B)</enum><header>Commission
rulemaking</header><text>The Commission shall promulgate an interim final rule
within 90 days of the date of enactment of this section providing for the
reporting of each swap entered into before the date of enactment as referenced
in subparagraph (A).</text>
</subparagraph><subparagraph id="id6761B2BDC5F54C3B8069ADD4D2EF50DC"><enum>(C)</enum><header>Effective
date</header><text>The reporting provisions described in this section shall be
effective upon the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="id7500A93735CD417E8136747E3868C210"><enum>(3)</enum><header>Reporting
obligations</header>
<subparagraph id="id4FC2BD3E0894400CAC62AC0D15B07D7F"><enum>(A)</enum><header>Swaps in which
only 1 counterparty is a swap dealer or major swap
participant</header><text>With respect to a swap in which only 1 counterparty
is a swap dealer or major swap participant, the swap dealer or major swap
participant shall report the swap as required under paragraphs (1) and
(2).</text>
</subparagraph><subparagraph id="idD89AF190B5324F749A4E9F6B51011000"><enum>(B)</enum><header>Swaps in which
1 counterparty is a swap dealer and the other a major swap
participant</header><text>With respect to a swap in which 1 counterparty is a
swap dealer and the other a major swap participant, the swap dealer shall
report the swap as required under paragraphs (1) and (2).</text>
</subparagraph><subparagraph id="idDB47BDCF9D474E92AE78E29DB278F037"><enum>(C)</enum><header>Other
swaps</header><text>With respect to any other swap not described in
subparagraph (A) or (B), the counterparties to the swap shall select a
counterparty to report the swap as required under paragraphs (1) and
(2).</text>
</subparagraph></paragraph></subsection><subsection id="ID2658ecff690a4218bc90c54ce4d4fe8d"><enum>(b)</enum><header>Duties of
certain individuals</header><text>Any individual or entity that enters into a
swap shall meet each requirement described in subsection (c) if the individual
or entity did not—</text>
<paragraph id="ID7915bbccdd014b489b432470349801ec"><enum>(1)</enum><text>clear the swap in
accordance with section 2(h)(1); or</text>
</paragraph><paragraph id="IDa4a1d56d261d473890dd4064a108a597"><enum>(2)</enum><text>have the data
regarding the swap accepted by a swap data repository in accordance with rules
(including timeframes) adopted by the Commission under section 21.</text>
</paragraph></subsection><subsection id="ID5d7b26cdf49c46e2afd7639bd2704a5e"><enum>(c)</enum><header>Requirements</header><text>An
individual or entity described in subsection (b) shall—</text>
<paragraph id="IDb409473aa6444f5790fd66dc3c46036f"><enum>(1)</enum><text>upon written
request from the Commission, provide reports regarding the swaps held by the
individual or entity to the Commission in such form and in such manner as the
Commission may request; and</text>
</paragraph><paragraph id="IDfc9cb861f7af40e68020a2fc86b45de2"><enum>(2)</enum><text>maintain books
and records pertaining to the swaps held by the individual or entity in such
form, in such manner, and for such period as the Commission may require, which
shall be open to inspection by—</text>
<subparagraph id="ID825ac84f961c4e24a772a47c8f1b951e"><enum>(A)</enum><text>any
representative of the Commission;</text>
</subparagraph><subparagraph id="IDb8982f60300b40cd987e52fabcec7e5a"><enum>(B)</enum><text>an appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="ID937bc41323764f68adcc09cba609ac60"><enum>(C)</enum><text>the Securities
and Exchange Commission;</text>
</subparagraph><subparagraph id="ID2927ab2acaaa4dc3ba05c2be26137f5e"><enum>(D)</enum><text>the Financial
Stability Oversight Council; and</text>
</subparagraph><subparagraph id="ID8c621acbe27b46028d7ca82e400ac24c"><enum>(E)</enum><text>the Department of
Justice.</text>
</subparagraph></paragraph></subsection><subsection id="IDe795e8bfe1fe4d4a83b1f530f303913e"><enum>(d)</enum><header>Identical
data</header><text>In prescribing rules under this section, the Commission
shall require individuals and entities described in subsection (b) to submit to
the Commission a report that contains data that is not less comprehensive than
the data required to be collected by swap data repositories under section
21.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idEA51D72FD8184F40884454A5C12A0D84"><enum>730.</enum><header>Large swap
trader reporting</header><text display-inline="no-display-inline">The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by adding after section 4s (as
added by section 731) the following:</text>
<quoted-block display-inline="no-display-inline" id="idDE1F4CA0BCC7454280558A05FBD515CB" style="OLC">
<section id="id242C9B8403134F7AB3537EA9D41AE87B"><enum>4t.<?LEXA-Enum 4t.?></enum><header>Large swap trader reporting</header>
<subsection id="ID52ef09fd377d456a969598ab5b6fe478"><enum>(a)</enum><header>Prohibition</header>
<paragraph id="ID30470235afe84c46bc74e719437ccd29"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), it shall be unlawful
for any person to enter into any swap that the Commission determines to perform
a significant price discovery function with respect to registered entities
if—</text>
<subparagraph id="ID08fce5e55cd442388a98a747cb079e9e"><enum>(A)</enum><text>the person
directly or indirectly enters into the swap during any 1 day in an amount equal
to or in excess of such amount as shall be established periodically by the
Commission; and</text>
</subparagraph><subparagraph id="ID7647b2d656654ea882a8cfb1b8439349"><enum>(B)</enum><text>the person
directly or indirectly has or obtains a position in the swap equal to or in
excess of such amount as shall be established periodically by the
Commission.</text>
</subparagraph></paragraph><paragraph id="ID339252361a4f4edaafac12ae7236f6e4"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply if—</text>
<subparagraph id="IDe0b88e14163b42aca59df5c76e26ad01"><enum>(A)</enum><text>the person files
or causes to be filed with the properly designated officer of the Commission
such reports regarding any transactions or positions described in subparagraphs
(A) and (B) of paragraph (1) as the Commission may require by rule or
regulation; and</text>
</subparagraph><subparagraph id="ID34ba6049daf249c09cb62383032d1b08"><enum>(B)</enum><text>in accordance
with the rules and regulations of the Commission, the person keeps books and
records of all such swaps and any transactions and positions in any related
commodity traded on or subject to the rules of any board of trade, and of cash
or spot transactions in, inventories of, and purchase and sale commitments of,
such a commodity.</text>
</subparagraph></paragraph></subsection><subsection id="ID9a11860ed852493db60ed30477f989be"><enum>(b)</enum><header>Requirements</header>
<paragraph id="id145937DFC3A74C4AB7236699E044DA23"><enum>(1)</enum><header>In
general</header><text>Books and records described in subsection (a)(2)(B)
shall—</text>
<subparagraph id="IDa9f0a766fea344db804c8e5e9401246d"><enum>(A)</enum><text>show such
complete details concerning all transactions and positions as the Commission
may prescribe by rule or regulation;</text>
</subparagraph><subparagraph id="ID0014ca8115264ed6a9fb5eef5a4535e7"><enum>(B)</enum><text>be open at all
times to inspection and examination by any representative of the Commission;
and</text>
</subparagraph><subparagraph id="ID408d58365b6f41d2946aa31bd3a59b1d"><enum>(C)</enum><text>be open at all
times to inspection and examination by the Securities and Exchange Commission,
to the extent such books and records relate to transactions in security-based
swap agreements (as that term is defined in section 3(a)(79) of the Securities
Exchange Act of 1934), and consistent with the confidentiality and disclosure
requirements of section 8.</text>
</subparagraph></paragraph><paragraph id="id4CAF460512BA45C9BBCE990D96A98528"><enum>(2)</enum><header>Jurisdiction</header><text>Nothing
in paragraph (1) shall affect the exclusive jurisdiction of the Commission to
prescribe recordkeeping and reporting requirements for large swap traders under
this section.</text>
</paragraph></subsection><subsection id="ID7f809267d43840bcbb99374e5b74d18f"><enum>(c)</enum><header>Applicability</header><text>For
purposes of this section, the swaps, futures, and cash or spot transactions and
positions of any person shall include the swaps, futures, and cash or spot
transactions and positions of any persons directly or indirectly controlled by
the person.</text>
</subsection><subsection id="IDb94f1427a8b047a69f6ae575600f51d9"><enum>(d)</enum><header>Significant
price discovery function</header><text>In making a determination as to whether
a swap performs or affects a significant price discovery function with respect
to registered entities, the Commission shall consider the factors described in
section
4a(a)(3).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID8761ef6f75604ae19af489b1782c1c91"><enum>731.</enum><header>Registration
and regulation of swap dealers and major swap participants</header><text display-inline="no-display-inline">The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is amended by inserting after section 4r (as added by section 729) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF017C4894DE14082B43E8979A648F8E3" style="OLC">
<section id="ID40c1f68721b64c92aaacf80bf2dc4f57"><enum>4s.<?LEXA-Enum 4s.?></enum><header>Registration and regulation of swap dealers and
major swap participants</header>
<subsection id="idF00C38B74D7C46E09158BC32566EE5F4"><enum>(a)</enum><header>Registration</header>
<paragraph id="idA22603B50DF74C509CAE6561B8320CA7"><enum>(1)</enum><header>Swap
dealers</header><text>It shall be unlawful for any person to act as a swap
dealer unless the person is registered as a swap dealer with the
Commission.</text>
</paragraph><paragraph id="id503AA5257D1448258989E2471158634D"><enum>(2)</enum><header>Major swap
participants</header><text>It shall be unlawful for any person to act as a
major swap participant unless the person is registered as a major swap
participant with the Commission.</text>
</paragraph></subsection><subsection id="id1A4A559A65A34CCDB25EE2C2C63CBDF8"><enum>(b)</enum><header>Requirements</header>
<paragraph id="idDD88B170446C49229D4BC3A2FBE5B27C"><enum>(1)</enum><header>In
general</header><text>A person shall register as a swap dealer or major swap
participant by filing a registration application with the Commission.</text>
</paragraph><paragraph id="id08A93866950D47259ED5AD2549BE6AAA"><enum>(2)</enum><header>Contents</header>
<subparagraph id="id981156F47D4B4C24A89DEA2710376D78"><enum>(A)</enum><header>In
general</header><text>The application shall be made in such form and manner as
prescribed by the Commission, and shall contain such information, as the
Commission considers necessary concerning the business in which the applicant
is or will be engaged.</text>
</subparagraph><subparagraph id="id04EFD6EFF6D44022899C8E032C39A868"><enum>(B)</enum><header>Continual
reporting</header><text>A person that is registered as a swap dealer or major
swap participant shall continue to submit to the Commission reports that
contain such information pertaining to the business of the person as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="id16B9385990EE4249B06FF79C37F440E5"><enum>(3)</enum><header>Expiration</header><text>Each
registration under this section shall expire at such time as the Commission may
prescribe by rule or regulation.</text>
</paragraph><paragraph id="id128C628284E945D8A206E7CD6530EA39"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (c), (e), and (f), the Commission may prescribe
rules applicable to non-bank swap dealers and non-bank major swap participants,
including rules that limit the activities of swap dealers and major swap
participants.</text>
</paragraph><paragraph id="id4EC9C26B703D44F497B50D183DB0B986"><enum>(5)</enum><header>Transition</header><text>Rules
under this section shall provide for the registration of swap dealers and major
swap participants not later than 1 year after the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>.</text>
</paragraph><paragraph id="idA662D2A5C54140E29A861E15B57DD098"><enum>(6)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order, it shall be unlawful for a swap dealer
or a major swap participant to permit any person associated with a swap dealer
or a major swap participant who is subject to a statutory disqualification to
effect or be involved in effecting swaps on behalf of the swap dealer or major
swap participant, if the swap dealer or major swap participant knew, or in the
exercise of reasonable care should have known, of the statutory
disqualification.</text>
</paragraph></subsection><subsection id="id4C1443C9124140C0823A8773580DC28C"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="id282770FA4615439CB3E01B4F2AEA9F38"><enum>(1)</enum><header>Swap
dealer</header><text>Any person that is required to be registered as a swap
dealer under this section shall register with the Commission regardless of
whether the person also is a depository institution or is registered with the
Securities and Exchange Commission as a security-based swap dealer.</text>
</paragraph><paragraph id="id5049B5B3A2804AC9AC90EAC29D94AA72"><enum>(2)</enum><header>Major swap
participant</header><text>Any person that is required to be registered as a
major swap participant under this section shall register with the Commission
regardless of whether the person also is a depository institution or is
registered with the Securities and Exchange Commission as a major
security-based swap participant.</text>
</paragraph></subsection><subsection id="id517E4ED274E54073A8E7CE3B22A09AF4"><enum>(d)</enum><header>Rulemakings</header>
<paragraph id="idA24A1C5605EE45BBB7B04C1D17C1B3A4"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt rules for persons that are
registered as swap dealers or major swap participants under this
section.</text>
</paragraph><paragraph id="id49F9EBCB23C341DA88E0DDA04B1AD90B"><enum>(2)</enum><header>Exception for
prudential requirements</header>
<subparagraph id="idB0DD43585AE24ADC8E4A744C0821A55F"><enum>(A)</enum><header>In
general</header><text>The Commission may not prescribe rules imposing
prudential requirements on swap dealers or major swap participants for which
there is a prudential regulator.</text>
</subparagraph><subparagraph id="id5E6A26945CB24DAD845835097464C910"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not limit the authority of the Commission to prescribe appropriate
business conduct, reporting, and recordkeeping requirements to protect
investors.</text>
</subparagraph></paragraph></subsection><subsection id="ID13c26d70545f42839afa29b5a720f1e9"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="ID1818f5e2e6bf4020872d00f9083372db"><enum>(1)</enum><header>In
general</header>
<subparagraph id="IDc74d153335c142c7b4109b6fa37f0e1f"><enum>(A)</enum><header>Swap dealers
and major swap participants that are depository institutions</header><text>Each
registered swap dealer and major swap participant that is a depository
institution, as that term is defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813), shall meet such minimum capital requirements
and minimum initial and variation margin requirements as the appropriate
Federal banking agency shall by rule or regulation prescribe under paragraph
(2)(A) to help ensure the safety and soundness of the swap dealer or major swap
participant.</text>
</subparagraph><subparagraph id="ID192e92fc8f904f81ab38a5cc8ede9a9d"><enum>(B)</enum><header>Swap dealers
and major swap participants that are not depository
institutions</header><text>Each registered swap dealer and major swap
participant that is not a depository institution, as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall meet
such minimum capital requirements and minimum initial and variation margin
requirements as the Commission and the Securities and Exchange Commission shall
by rule or regulation prescribe under paragraph (2)(B) to help ensure the
safety and soundness of the swap dealer or major swap participant.</text>
</subparagraph></paragraph><paragraph id="ID5d0139276267499da01dfb57824fe93f"><enum>(2)</enum><header>Rules</header>
<subparagraph id="ID76801a4dfd5b47178a0fbe65d6cf51e4"><enum>(A)</enum><header>Swap dealers
and major swap participants that are depository institutions</header><text>The
appropriate Federal banking agencies, in consultation with the Commission and
the Securities and Exchange Commission, shall adopt rules imposing capital and
margin requirements under this subsection for swap dealers and major swap
participants that are depository institutions, as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</subparagraph><subparagraph id="ID1f507e7f43d5491aa57936fa4a47ac8e"><enum>(B)</enum><header>Swap dealers
and major swap participants that are not depository
institutions</header><text>The Commission shall adopt rules imposing capital
and margin requirements under this subsection for swap dealers and major swap
participants that are not depository institutions, as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</subparagraph></paragraph><paragraph id="ID0b58421f0d8748119451fe841654a8cf"><enum>(3)</enum><header>Capital</header>
<subparagraph id="ID6f64cece809149c790ed319f4f2fe395"><enum>(A)</enum><header>Swap dealers
and major swap participants that are depository institutions</header><text>The
capital requirements prescribed under paragraph (2)(A) for swap dealers and
major swap participants that are depository institutions shall contain—</text>
<clause id="ID4b5d4cfe390342bfaf76f97ae686328b"><enum>(i)</enum><text>a
capital requirement that is greater than zero for swaps that are cleared by a
registered derivatives clearing organization or a derivatives clearing
organization that is exempt from registration under section 5b(j); and</text>
</clause><clause id="IDb71dc5cc90be478a91a1dc6c468df965"><enum>(ii)</enum><text>to
offset the greater risk to the swap dealer or major swap participant and to the
financial system arising from the use of swaps that are not cleared,
substantially higher capital requirements for swaps that are not cleared by a
registered derivatives clearing organization or a derivatives clearing
organization that is exempt from registration under section 5b(j) than for
swaps that are cleared.</text>
</clause></subparagraph><subparagraph id="ID68e771ea9764427abfa678c4c63c0742"><enum>(B)</enum><header>Swap dealers
and major swap participants that are not depository
institutions</header><text>The capital requirements prescribed under paragraph
(2)(B) for swap dealers and major swap participants that are not depository
institutions shall be as strict as or stricter than the capital requirements
prescribed for swap dealers and major swap participants that are depository
institutions under paragraph (2)(A).</text>
</subparagraph><subparagraph id="IDd5886bab39b64edf9f4180b14e06eb80"><enum>(C)</enum><header>Rule of
construction</header>
<clause id="IDac8ba587a6c2436486c9cdaff34b51f2"><enum>(i)</enum><header>In
general</header><text>Nothing in this section shall limit, or be construed to
limit, the authority—</text>
<subclause id="ID94a298daa8cf4d4cbb722a96099b198a"><enum>(I)</enum><text>of
the Commission to set financial responsibility rules for a futures commission
merchant or introducing broker registered pursuant to section 4f(a) (except for
section 4f(a)(3)) in accordance with section 4f(b); or</text>
</subclause><subclause id="IDf256be6c08b74a70b72500eaa9439d3c"><enum>(II)</enum><text>of the
Securities and Exchange Commission to set financial responsibility rules for a
broker or dealer registered pursuant to section 15(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78<italic>o</italic>(b)) (except for section
15(b)(11) of that Act (15 U.S.C. 78<italic>o</italic>(b)(11)) in accordance
with section 15(c)(3) of the Securities Exchange Act of 1934 (15 U.S.C.
78<italic>o</italic>(c)(3)).</text>
</subclause></clause><clause id="ID88b15ab04d31469f9e6e5e214ee69c35"><enum>(ii)</enum><header>Futures
commission merchants and other dealers</header><text>A futures commission
merchant, introducing broker, broker, or dealer shall maintain sufficient
capital to comply with the stricter of any applicable capital requirements to
which such futures commission merchant, introducing broker, broker, or dealer
is subject to under this Act or the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.).</text>
</clause></subparagraph></paragraph><paragraph id="IDa41dd98ad9fb4d928c3a7dfe48175402"><enum>(4)</enum><header>Margin</header>
<subparagraph id="ID5c6092e74fd749988fec6be10784c7e1"><enum>(A)</enum><header>Swap dealers
and major swap participants that are depository institutions</header><text>The
appropriate Federal banking agency for swap dealers and major swap participants
that are depository institutions shall impose both initial and variation margin
requirements in accordance with paragraph (2)(A) on all swaps that are not
cleared by a registered derivatives clearing organization or a derivatives
clearing organization that is exempt from registration under section 5b(j)
.</text>
</subparagraph><subparagraph id="ID48a6683f86034f5db34496e60bc9620a"><enum>(B)</enum><header>Swap dealers
and major swap participants that are not depository
institutions</header><text>The Commission and the Securities and Exchange
Commission shall impose both initial and variation margin requirements in
accordance with paragraph (2)(B) for swap dealers and major swap participants
that are not depository institutions on all swaps that are not cleared by a
registered derivatives clearing organization or a derivatives clearing
organization that is exempt from registration under section 5b(j). Any such
initial and variation margin requirements shall be as strict as or stricter
than the margin requirements prescribed under paragraph (4)(A).</text>
</subparagraph></paragraph><paragraph id="ID0ae0f944ba4d4937902ce1878d4aed5b"><enum>(5)</enum><header>Margin
requirements</header><text>In prescribing margin requirements under this
subsection, the appropriate Federal banking agency with respect to swap dealers
and major swap participants that are depository institutions and the Commission
with respect to swap dealers and major swap participants that are not
depository institutions may permit the use of noncash collateral, as the agency
or the Commission determines to be consistent with—</text>
<subparagraph id="ID1d4e756364b64c1bb69a741d012e7741"><enum>(A)</enum><text>preserving the
financial integrity of markets trading swaps; and</text>
</subparagraph><subparagraph id="IDcde8a872d01442ec8c6c32ed921af5f2"><enum>(B)</enum><text>preserving the
stability of the United States financial system.</text>
</subparagraph></paragraph><paragraph id="IDc1c3324e9c234e7a8d95ee1b4ddba957"><enum>(6)</enum><header>Comparability
of capital and margin requirements</header>
<subparagraph id="ID062cea6e276247c39ffac2fbe8e116e1"><enum>(A)</enum><header>In
general</header><text>The appropriate Federal banking agencies, the Commission,
and the Securities and Exchange Commission shall periodically (but not less
frequently than annually) consult on minimum capital requirements and minimum
initial and variation margin requirements.</text>
</subparagraph><subparagraph id="ID396304cfa5574c7ebcb1fb5e6d7f009b"><enum>(B)</enum><header>Comparability</header><text>The
entities described in subparagraph (A) shall, to the maximum extent
practicable, establish and maintain comparable minimum capital requirements and
minimum initial and variation margin requirements, including the use of non
cash collateral, for—</text>
<clause id="ID3dc13949b03b4b3c9ce17c592b31e364"><enum>(i)</enum><text>swap
dealers; and</text>
</clause><clause id="ID651911df578f4277b3d7dcecae9891b8"><enum>(ii)</enum><text>major swap
participants.</text>
</clause></subparagraph></paragraph><paragraph id="ID41c01a07948240ecb22645fb834ef607"><enum>(7)</enum><header>Requested
margin</header><text>If any party to a swap that is exempt from the margin
requirements of paragraph (4)(A)(i) pursuant to the provisions of paragraph
(4)(A)(ii), or from the margin requirements of paragraph (4)(B)(i) pursuant to
the provisions of paragraph (4)(B)(ii), requests that such swap be margined,
then—</text>
<subparagraph id="IDc742ea12f6724ed38337a386a26a785e"><enum>(A)</enum><text>the exemption
shall not apply; and</text>
</subparagraph><subparagraph id="ID50bb315c51f6487d81d862673fcd8d36"><enum>(B)</enum><text>the counterparty
to such swap shall provide the requested margin.</text>
</subparagraph></paragraph><paragraph id="ID20628606bd2841b09752b0ac2aa397ea"><enum>(8)</enum><header>Applicability
with respect to counterparties</header><text>Paragraph (4) shall not apply to
initial and variation margin for swaps in which 1 of the counterparties is
not—</text>
<subparagraph id="ID922b28c329fc43d79909f0c205a69e2c"><enum>(A)</enum><text>a swap
dealer;</text>
</subparagraph><subparagraph id="ID2873a6289b644167882c3c59cfc06dac"><enum>(B)</enum><text>a major swap
participant; or</text>
</subparagraph><subparagraph id="ID3bc16d4bdd1b47638d44fed35fd75731"><enum>(C)</enum><text>a financial
entity as described in section 2(h)(9)(A)(ii), and such counterparty is
eligible for and utilizing the commercial end user clearing exemption under
section 2(h)(9).</text>
</subparagraph></paragraph></subsection><subsection id="id2E76116D73B64D038508990BBA5135FA"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="id0E443BD117F84D3988A73E2C1EFEF3E7"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap
participant—</text>
<subparagraph id="id9F9F37037E0B491C90DF10FEAA913B5B"><enum>(A)</enum><text>shall make such
reports as are required by the Commission by rule or regulation regarding the
transactions and positions and financial condition of the registered swap
dealer or major swap participant;</text>
</subparagraph><subparagraph id="id5D8502C00479494CBB7F0E800104C712"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id1A21DE5CBA634886894D405EEDDFC62C"><enum>(i)</enum><text>for which there is a
prudential regulator, shall keep books and records of all activities related to
the business as a swap dealer or major swap participant in such form and manner
and for such period as may be prescribed by the Commission by rule or
regulation; and</text>
</clause><clause id="id6B20C6D8BCFF44FAA59DC39EF84BB805" indent="up1"><enum>(ii)</enum><text>for which there is no prudential
regulator, shall keep books and records in such form and manner and for such
period as may be prescribed by the Commission by rule or regulation; and</text>
</clause></subparagraph><subparagraph id="id45A2F909A59C4C5AAC4EE80ED9CB1D65"><enum>(C)</enum><text>shall keep books
and records described in subparagraph (B) open to inspection and examination by
any representative of the Commission.</text>
</subparagraph></paragraph><paragraph id="id1EA2D92696B043A48CB61F124AB9FCF7"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing reporting and recordkeeping for swap
dealers and major swap participants.</text>
</paragraph></subsection><subsection id="id49CFCF20B7494B65976DFAA976EE2C9D"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="id24D7237BE306452EAE673333C47E7393"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records of the swaps of the registered swap dealer
and major swap participant and all related records (including related cash or
forward transactions) and recorded communications, including electronic mail,
instant messages, and recordings of telephone calls, for such period as may be
required by the Commission by rule or regulation.</text>
</paragraph><paragraph id="idE4521D77F9BD476B87E363F364347F51"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall require by rule or regulation.</text>
</paragraph><paragraph id="id31AC3D0DDF034E429686EB4F9AC1C2A0"><enum>(3)</enum><header>Counterparty
records</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records for each counterparty in a manner and form
that is identifiable with each swap transaction.</text>
</paragraph><paragraph id="id3A3EB9CF7C7442DD9FE6464D11461045"><enum>(4)</enum><header>Audit
trail</header><text>Each registered swap dealer and major swap participant
shall maintain a complete audit trail for conducting comprehensive and accurate
trade reconstructions.</text>
</paragraph><paragraph id="idA2D45843B6274B6C863F153CEA2C6688"><enum>(5)</enum><header>Rules</header><text>The
Commission shall adopt rules governing daily trading records for swap dealers
and major swap participants.</text>
</paragraph></subsection><subsection id="idD7889979966A444790E805864E92CC41"><enum>(h)</enum><header>Business
conduct standards</header>
<paragraph id="id585C23DDA2144528A32A25EA025E33A4"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with such business conduct standards as may be prescribed by the
Commission by rule or regulation that relate to—</text>
<subparagraph id="id6DD9065CA280495684DB0A1B927B36C6"><enum>(A)</enum><text>fraud,
manipulation, and other abusive practices involving swaps (including swaps that
are offered but not entered into);</text>
</subparagraph><subparagraph id="id28510842D2FE456FB240F224B00C9FDA"><enum>(B)</enum><text>diligent
supervision of the business of the registered swap dealer and major swap
participant;</text>
</subparagraph><subparagraph id="idC705EFF1EEF24EC38E18C4184D6A6D9F"><enum>(C)</enum><text>adherence to all
applicable position limits; and</text>
</subparagraph><subparagraph id="id718925936A98476CA94D542A7C26AAD6"><enum>(D)</enum><text>such other
matters as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="id273B51CF69AB4969BDB427C560CFE8EE"><enum>(2)</enum><header>Special rule;
fiduciary duties to certain entities</header>
<subparagraph id="idF97D48B7F9DA474985D376EE56F68CDA"><enum>(A)</enum><header>Governmental
entities</header><text>A swap dealer that provides advice regarding, or offers
to enter into, or enters into a swap with a State, State agency, city, county,
municipality, or other political subdivision of a State or a Federal agency
shall have a fiduciary duty to the State, State agency, city, county,
municipality, or other political subdivision of a State, or the Federal agency,
as appropriate.</text>
</subparagraph><subparagraph id="id49306089E1C94FF7A5AD3D621F7E59A5"><enum>(B)</enum><header>Pension plans;
endowments; retirement plans</header><text>A swap dealer that provides advice
regarding, or offers to enter into, or enters into a swap with a pension plan,
endowment, or retirement plan shall have a fiduciary duty to the pension plan,
endowment, or retirement plan, as appropriate.</text>
</subparagraph></paragraph><paragraph id="id8C4A98652AE0456CB2A9596FD4433DD6"><enum>(3)</enum><header>Business
conduct requirements</header><text>Business conduct requirements adopted by the
Commission shall—</text>
<subparagraph id="id40C06C5AA04D4F629DBB6DC68D752AC3"><enum>(A)</enum><text>establish the
standard of care for a swap dealer or major swap participant to verify that any
counterparty meets the eligibility standards for an eligible contract
participant;</text>
</subparagraph><subparagraph id="id6345EF2B204D46E3ABBA69033BB5E23A"><enum>(B)</enum><text>require
disclosure by the swap dealer or major swap participant to any counterparty to
the transaction (other than a swap dealer, major swap participant,
security-based swap dealer, or major security-based swap participant)
of—</text>
<clause id="idF8B40DC16B344798A922F81B6920FDAA"><enum>(i)</enum><text>information about
the material risks and characteristics of the swap;</text>
</clause><clause id="idE4D695B833F04C3BA8AFA7BCEDA76E6F"><enum>(ii)</enum><text>the
source and amount of any fees or other material remuneration that the swap
dealer or major swap participant would directly or indirectly expect to receive
in connection with the swap;</text>
</clause><clause id="id07A890B1F1A74122BEA9B8409BBD25A5"><enum>(iii)</enum><text>any
other material incentives or conflicts of interest that the swap dealer or
major swap participant may have in connection with the swap; and</text>
</clause><clause id="id21C8937E5BDB4C439C6A799B2B656E59"><enum>(iv)</enum><subclause commented="no" display-inline="yes-display-inline" id="id501933D952DE45F2BCFAA45B69EA72B8"><enum>(I)</enum><text>for cleared swaps, upon
the request of the counterparty, the daily mark from the appropriate
derivatives clearing organization; and</text>
</subclause><subclause id="id5D1531F6E3BB4372A93FC8274539C104" indent="up1"><enum>(II)</enum><text>for uncleared swaps, the daily mark of
the swap dealer or the major swap participant;</text>
</subclause></clause></subparagraph><subparagraph id="idFF1ECAD1AACF4EE1B411D4F7B4A630AD"><enum>(C)</enum><text>establish a
standard of conduct for a swap dealer or major swap participant to communicate
in a fair and balanced manner based on principles of fair dealing and good
faith;</text>
</subparagraph><subparagraph id="id52D2A13F311E4830BEA2B4D268C3AD93"><enum>(D)</enum><text>establish a
standard of conduct for a swap dealer or major swap participant, with respect
to a counterparty that is an eligible contract participant within the meaning
of subclause (I) or (II) of clause (vii) of section 1a(18) of this Act, to have
a reasonable basis to believe that the counterparty has an independent
representative that—</text>
<clause id="idB3A25912536A47D697F5A73F393DFAF1"><enum>(i)</enum><text>has
sufficient knowledge to evaluate the transaction and risks;</text>
</clause><clause id="id027F03FA6A0B45D5969C241B6B5C75B8"><enum>(ii)</enum><text>is
not subject to a statutory disqualification;</text>
</clause><clause id="id10DA18FD0C524FE0A068162ADAF19F12"><enum>(iii)</enum><text>is
independent of the swap dealer or major swap participant;</text>
</clause><clause id="id70E7D41C36BD44DD8CBE8805A8A57A3F"><enum>(iv)</enum><text>undertakes a
duty to act in the best interests of the counterparty it represents;</text>
</clause><clause id="id044B3E077B4F4E54B0BE64E3C8A2611C"><enum>(v)</enum><text>makes
appropriate disclosures; and</text>
</clause><clause id="id7BD25213262A498981ECF91AB148D2A1"><enum>(vi)</enum><text>will
provide written representations to the eligible contract participant regarding
fair pricing and the appropriateness of the transaction; and</text>
</clause></subparagraph><subparagraph id="id79CE921CA28C47DCAB28F9FA9E7CB692"><enum>(E)</enum><text>establish such
other standards and requirements as the Commission may determine are
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="id49290532113F43F78995F4AEBDA8DFF3"><enum>(4)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing business
conduct standards for swap dealers and major swap participants.</text>
</paragraph></subsection><subsection id="id3AECB35D92E34B2A9A2E55388DA727AB"><enum>(i)</enum><header>Documentation
and back office standards</header>
<paragraph id="id6816287A887A4C9F9255E9C8DFCC3188"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with such standards as may be prescribed by the Commission by
rule or regulation that relate to timely and accurate confirmation, processing,
netting, documentation, and valuation of all swaps.</text>
</paragraph><paragraph id="id25C26B7228854D2E90BD05F3A475CC08"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing documentation and back office standards
for swap dealers and major swap participants.</text>
</paragraph></subsection><subsection id="id67EBA00918154BFA87BC1D568DE90AB5"><enum>(j)</enum><header>Duties</header><text display-inline="yes-display-inline">Each registered swap dealer and major swap
participant at all times shall comply with the following requirements:</text>
<paragraph id="idD2518E811B944324AD9267698C592749"><enum>(1)</enum><header>Monitoring of
trading</header><text>The swap dealer or major swap participant shall monitor
its trading in swaps to prevent violations of applicable position
limits.</text>
</paragraph><paragraph id="idDF6248731B804F60BD7C42528306DE4C"><enum>(2)</enum><header>Risk management
procedures</header><text>The swap dealer or major swap participant shall
establish robust and professional risk management systems adequate for managing
the day-to-day business of the swap dealer or major swap participant.</text>
</paragraph><paragraph id="idE597F637D3E54FB88833461DE1680932"><enum>(3)</enum><header>Disclosure of
general information</header><text>The swap dealer or major swap participant
shall disclose to the Commission and to the prudential regulator for the swap
dealer or major swap participant, as applicable, information concerning—</text>
<subparagraph id="idAA78357CECE04516A9E0A2202DF9B30D"><enum>(A)</enum><text>terms and
conditions of its swaps;</text>
</subparagraph><subparagraph id="idD0AF8B2B195649BDAE5DAD9B0AC0ACF0"><enum>(B)</enum><text>swap trading
operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="idD4FA39410A144FFEB19BDCCA9B929BFD"><enum>(C)</enum><text>financial
integrity protections relating to swaps; and</text>
</subparagraph><subparagraph id="idCEC47F2584134BF5869C9EB34781AC23"><enum>(D)</enum><text>other information
relevant to its trading in swaps.</text>
</subparagraph></paragraph><paragraph id="idE0AA2CFF7010404B98295809CA7160E1"><enum>(4)</enum><header>Ability to
obtain information</header><text>The swap dealer or major swap participant
shall—</text>
<subparagraph id="idC3EFD4EE01CC4C96AF8A62468AECECF2"><enum>(A)</enum><text>establish and
enforce internal systems and procedures to obtain any necessary information to
perform any of the functions described in this section; and</text>
</subparagraph><subparagraph id="id68C80DA2BEEB47A9BF52D8E208B2B738"><enum>(B)</enum><text>provide the
information to the Commission and to the prudential regulator for the swap
dealer or major swap participant, as applicable, on request.</text>
</subparagraph></paragraph><paragraph id="idB554FC79D78F4A519DCBC02F0C60572D"><enum>(5)</enum><header>Conflicts of
interest</header><text>The swap dealer and major swap participant shall
implement conflict-of-interest systems and procedures that—</text>
<subparagraph id="id7FD0F2091A9D496E9C8F2E45D48A9E87"><enum>(A)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any commodity or swap or acting in a role of providing clearing activities
or making determinations as to accepting clearing customers are separated by
appropriate informational partitions within the firm from the review, pressure,
or oversight of persons whose involvement in pricing, trading, or clearing
activities might potentially bias their judgment or supervision and contravene
the core principles of open access and the business conduct standards described
in this Act; and</text>
</subparagraph><subparagraph id="id4B7BB34C76724DAD81EE08C8BA96F04A"><enum>(B)</enum><text>address such
other issues as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="idBABFB07210564C92AFFF2AE0DFA7E6C1"><enum>(6)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a swap dealer or major swap participant shall not—</text>
<subparagraph id="id58A6BAB55C3C4AE4ABE55669BC7AE28F"><enum>(A)</enum><text>adopt any process
or take any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="idBBA9574A05BF46D4B1A8B7F6A2E3313D"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph></subsection><subsection id="idD05B2C5A554640B6BF655589EFDD8D62"><enum>(k)</enum><header>Designation of
Chief Compliance Officer</header>
<paragraph id="idAF650A09CA4D45A5A147EAA89BFFC0FB"><enum>(1)</enum><header>In
general</header><text>Each swap dealer and major swap participant shall
designate an individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="id51BF065CF6A14BE48949455BEFD6C7D1"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="id8954B952F68A4E8C8ED659A1C156AADC"><enum>(A)</enum><text>report directly
to the board or to the senior officer of the swap dealer or major swap
participant;</text>
</subparagraph><subparagraph id="id017765CF5FDE4E31BA05C2253EB330B6"><enum>(B)</enum><text>review the
compliance of the swap dealer or major swap participant with respect to the
swap dealer and major swap participant requirements described in this
section;</text>
</subparagraph><subparagraph id="idAD6660B0A3944713A2CEBB6626659B9D"><enum>(C)</enum><text>in consultation
with the board of directors, a body performing a function similar to the board,
or the senior officer of the organization, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="idB184C117EDBB4C14881F1F2DAD8AC737"><enum>(D)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="id733FFC6407E14052813113F7C5AB85C3"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to swaps, including each rule
prescribed by the Commission under this section;</text>
</subparagraph><subparagraph id="id8393968BCF0F46CAB7CCFF52836A7431"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="id176AE338866F46B49E071E64098CE09F"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="idBD8BFB3C261F462081276C26105680AF"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="id68FA59C7B09D433A9F1CE84FB8C37E5A"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="idE6D16431CD2D44F8BDCCB79C7D2C0DE6"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="idA295494B488F455481ED250F54A5858E"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="id9B99CF95E16B41E9929CE6F72A04AFD1"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="idBF876F3FCCB34D5EBF220DB1A2604BF9"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="idCDB1BB62AB4542618B8180C21E182C0F"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="id9519A63EDD114AF4820A329199E27624"><enum>(i)</enum><text>the
compliance of the swap dealer or major swap participant with respect to this
Act (including regulations); and</text>
</clause><clause id="idF191C3363C4C49058A934C0F933476F6"><enum>(ii)</enum><text>each
policy and procedure of the swap dealer or major swap participant of the chief
compliance officer (including the code of ethics and conflict of interest
policies).</text>
</clause></subparagraph><subparagraph id="id5C00276145FD48F79F9B095A4FB689FB"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="id20AEE9A8F4CA41E3BCC9A40661114092"><enum>(i)</enum><text>accompany each
appropriate financial report of the swap dealer or major swap participant that
is required to be furnished to the Commission pursuant to this section;
and</text>
</clause><clause id="id72450B33679C4244985C1BB84A045B62"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDc500754a58444da8b9d51c211d02ff63"><enum>732.</enum><header>Conflicts of
interest</header><text display-inline="no-display-inline">Section 4d of the
Commodity Exchange Act (7 U.S.C. 6d) is amended—</text>
<paragraph id="IDef367b5f44824d538a152a4e853dc8b6"><enum>(1)</enum><text>by
redesignating subsection (c) as subsection (e); and</text>
</paragraph><paragraph id="IDf1255fc86a5b44ecb80ac271f4371cd1"><enum>(2)</enum><text>by
inserting after subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="id1C717F7F431B4E3BAA11B3E026539EE2" style="OLC">
<subsection id="ID83c565973d964759aff903a3dc8f1f1f"><enum>(c)</enum><header>Conflicts of
interest</header><text>The Commission shall require that futures commission
merchants and introducing brokers implement conflict-of-interest systems and
procedures that—</text>
<paragraph id="IDdca3f78b6ffd409db7da572c0687de16"><enum>(1)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any commodity are separated by appropriate informational partitions within
the firm from the review, pressure, or oversight of persons whose involvement
in trading or clearing activities might potentially bias the judgment or
supervision of the persons; and</text>
</paragraph><paragraph id="IDf32942437a3c420b857839741e393a18"><enum>(2)</enum><text>address such
other issues as the Commission determines to be appropriate.</text>
</paragraph></subsection><subsection id="ID3929f698db6749c58687a170eb0eeb15"><enum>(d)</enum><header>Designation of
Chief Compliance Officer</header>
<paragraph id="IDd7d36155c01d441b9d865a10c0ebc24b"><enum>(1)</enum><header>In
general</header><text>Each futures commission merchant shall designate an
individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="ID018cfab8bf35430788c7fee1c3c12580"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="IDa309aefb7a6d45d38c8455a85a71d0a4"><enum>(A)</enum><text>report directly
to the board or to the senior officer of the futures commission
merchant;</text>
</subparagraph><subparagraph id="ID913eeec5ec054e4d803490700156a393"><enum>(B)</enum><text>review the
compliance of the futures commission merchant with respect to requirements
described in this section;</text>
</subparagraph><subparagraph id="ID64be574f672b4e728c18dd0810899073"><enum>(C)</enum><text>in consultation
with the board of directors, a body performing a function similar to the board,
or the senior officer of the organization, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="ID3f4def81410a4fa2a45e78cb5b5118c9"><enum>(D)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="ID7d5506fc7b9e4f8fa5393832e0d64fa3"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations and each rule prescribed by the Commission
under this section) relating, but not limited, to—</text>
<clause id="id6CDFAF814BCA4CA382642DDE2FFC310E"><enum>(i)</enum><text>contracts of sale
of a commodity for future delivery;</text>
</clause><clause id="id80B9F151B99B4BCE8FE797CA9BB422AB"><enum>(ii)</enum><text>options on the
contracts described in clause (i);</text>
</clause><clause id="id89BD4DCDEB6F4525933A553FDA062660"><enum>(iii)</enum><text>commodity
options;</text>
</clause><clause id="id40533786C3384855A9550A53D2F4143F"><enum>(iv)</enum><text>retail commodity
transactions;</text>
</clause><clause id="idB1BBDD675CB14C95B03C6AAB351AE98B"><enum>(v)</enum><text>security futures
products;</text>
</clause><clause id="id81591F3571DE4ED4951F4F2BFA970648"><enum>(vi)</enum><text>leverage
contracts; and</text>
</clause><clause id="idF08D668DE0734CDEBE31D81D68D30D37"><enum>(vii)</enum><text>swaps;</text>
</clause></subparagraph><subparagraph id="IDe46b85d3cbe54c9dacccd1757112f7e7"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="ID6bd94e654acc4a5ab01cba129e382a20"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="IDa19154e1c277494f8241ca20425544b5"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="ID6d740079cd1d411a9bd1b2f43f95ef44"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="IDbb7841824f74455e85dc653baac12c0f"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="ID9c87d5c9fbf94d98b000d28bcb25e61e"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="IDf19201ca2b684a8cb4381dcab1aabc01"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="ID3c6fed6606694a8a8676259940df7df8"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="ID210d3b578d7a426bb88c344e54980e69"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="ID546beec829664d75973a7809772dab83"><enum>(i)</enum><text>the
compliance of the futures commission merchant with respect to this Act
(including regulations); and</text>
</clause><clause id="ID9003f799d29c4decb89ef838f9d8a541"><enum>(ii)</enum><text>each
policy and procedure of the futures commission merchant of the chief compliance
officer (including the code of ethics and conflict of interest
policies).</text>
</clause></subparagraph><subparagraph id="ID7ec549433b2f4571a8af1cc3714da189"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="ID4ab18212d2924aacbe4cbea3e6147939"><enum>(i)</enum><text>accompany each
appropriate financial report of the futures commission merchant that is
required to be furnished to the Commission pursuant to this section; and</text>
</clause><clause id="ID4ec1bca7b89e428ba40b3939895d83c6"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID8290fc2255b14d858400e9ce4a501c10"><enum>733.</enum><header>Swap execution
facilities</header><text display-inline="no-display-inline">The Commodity
Exchange Act is amended by inserting after section 5g (7 U.S.C. 7b-2) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id95E0144E66724221AC853CC8811C8503" style="OLC">
<section id="ID9b224ee6fcb243ecafa0dfac9ddb70e6"><enum>5h.<?LEXA-Enum 5h.?></enum><header>Swap execution facilities</header>
<subsection id="idA95AD7379B1943768C0E21C49A88C113"><enum>(a)</enum><header>Registration</header>
<paragraph id="idC15A1FEAC3964950A17F0A4A3FEAB31D"><enum>(1)</enum><header>In
general</header><text>No person may operate a facility for the trading or
processing of swaps unless the facility is registered as a swap execution
facility or as a designated contract market under this section.</text>
</paragraph><paragraph id="id7E66A1307A40452D9A5DB325A8D42A3A"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is registered as a swap execution
facility under this section shall register with the Commission regardless of
whether the person also is registered with the Securities and Exchange
Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="id14FDA8C3CFC8462FB73346F8D26BBF15"><enum>(b)</enum><header>Trading and
trade processing</header><text>A swap execution facility that is registered
under subsection (a) may—</text>
<paragraph id="id3AC8473C0A654586BF817D210E320493"><enum>(1)</enum><text>make available
for trading any swap; and</text>
</paragraph><paragraph id="id218969797A3B48A6B813FE3A1C8E0F08"><enum>(2)</enum><text>facilitate trade
processing of any swap.</text>
</paragraph></subsection><subsection id="IDb9a2ee1cef6f4859a40a4edf77f04d08"><enum>(c)</enum><header>Identification
of facility used to trade swaps by contract markets</header><text>A board of
trade that operates a contract market shall, to the extent that the board of
trade also operates a swap execution facility and uses the same electronic
trade execution system for listing and executing trades of swaps on or through
the contract market and the swap execution facility, identify whether the
electronic trading of such swaps is taking place on or through the contract
market or the swap execution facility.</text>
</subsection><subsection id="id3E1DB548E83844849A7D18310E913F5B"><enum>(d)</enum><header>Core principles
for swap execution facilities</header>
<paragraph id="idD89721A274D54FD7B4DC9B2D6B21DFF4"><enum>(1)</enum><header>Compliance with
core principles</header>
<subparagraph id="idEF3F410FEA894300B5476F0F07E3C633"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a swap
execution facility, the swap execution facility shall comply with—</text>
<clause id="idAE347149124B461CACE88201C1F08E22"><enum>(i)</enum><text>the
core principles described in this subsection; and</text>
</clause><clause id="id8F613C2553A3498BAA024BBCEAEF5388"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation pursuant to
section 8a(5).</text>
</clause></subparagraph><subparagraph id="idC9D2A15AD5B54D47B6CB538D7CD1123C"><enum>(B)</enum><header>Reasonable
discretion of swap execution facility</header><text>Unless otherwise determined
by the Commission by rule or regulation, a swap execution facility described in
subparagraph (A) shall have reasonable discretion in establishing the manner in
which the swap execution facility complies with the core principles described
in this subsection.</text>
</subparagraph></paragraph><paragraph id="idC681DB755E2D420CA321F8BC2097D647"><enum>(2)</enum><header>Compliance with
rules</header><text>A swap execution facility shall—</text>
<subparagraph id="id850FA6DABE1E4472AF003300F8A74E98"><enum>(A)</enum><text>monitor and
enforce compliance with any rule of the swap execution facility,
including—</text>
<clause id="id7AC9C67722E945CC8ACB7255E7F9A8A9"><enum>(i)</enum><text>the
terms and conditions of the swaps traded or processed on or through the swap
execution facility; and</text>
</clause><clause id="id152053455B32464C8B71132C1499B4C6"><enum>(ii)</enum><text>any
limitation on access to the swap execution facility;</text>
</clause></subparagraph><subparagraph id="id82A4E6211BC445559A3464DF7353D80E"><enum>(B)</enum><text>establish and
enforce trading, trade processing, and participation rules that will deter
abuses and have the capacity to detect, investigate, and enforce those rules,
including means—</text>
<clause id="idD3D1405AB5404BFA88A15AAB8047B664"><enum>(i)</enum><text>to
provide market participants with impartial access to the market; and</text>
</clause><clause id="idE54D42BE4BF24408BF968C62E68175E0"><enum>(ii)</enum><text>to
capture information that may be used in establishing whether rule violations
have occurred;</text>
</clause></subparagraph><subparagraph id="id98BCD4D14CFA4BB085EBA7987A0819F0"><enum>(C)</enum><text>establish rules
governing the operation of the facility, including rules specifying trading
procedures to be used in entering and executing orders traded or posted on the
facility, including block trades; and</text>
</subparagraph><subparagraph id="id7F42F21A0CA64C83A507EFA6615F06EF"><enum>(D)</enum><text>provide by its
rules that when a swap dealer or major swap participant enters into or
facilitates a swap that is subject to the mandatory clearing requirement of
section 2(h)(2)(F), the swap dealer or major swap participant shall be
responsible for compliance with the mandatory trading requirement of section
113(d) of the Wall Street Transparency and Accountability Act of 2010.</text>
</subparagraph></paragraph><paragraph id="id58A11DF614324587996B4794B639A5CA"><enum>(3)</enum><header>Swaps not
readily susceptible to manipulation</header><text>The swap execution facility
shall permit trading only in swaps that are not readily susceptible to
manipulation.</text>
</paragraph><paragraph id="idA388CCAB8BC746CABD5834D6B25BAB78"><enum>(4)</enum><header>Monitoring of
trading and trade processing</header><text>The swap execution facility
shall—</text>
<subparagraph id="id3D62E59C3EBF4713AA0FA2A8C5435E2B"><enum>(A)</enum><text>establish and
enforce rules or terms and conditions defining, or specifications
detailing—</text>
<clause id="id6B8DF8B13CCF4731B50D259E3DE0F57E"><enum>(i)</enum><text>trading
procedures to be used in entering and executing orders traded on or through the
facilities of the swap execution facility; and</text>
</clause><clause id="id9F165776A0314640828BAA76120C1D49"><enum>(ii)</enum><text>procedures for
trade processing of swaps on or through the facilities of the swap execution
facility; and</text>
</clause></subparagraph><subparagraph id="id636462CCAEF34025B268651DC143582B"><enum>(B)</enum><text>monitor trading
in swaps to prevent manipulation, price distortion, and disruptions of the
delivery or cash settlement process through surveillance, compliance, and
disciplinary practices and procedures, including methods for conducting
real-time monitoring of trading and comprehensive and accurate trade
reconstructions.</text>
</subparagraph></paragraph><paragraph id="idF5CA6D47213E4488985BEB5CD28741DC"><enum>(5)</enum><header>Ability to
obtain information</header><text>The swap execution facility shall—</text>
<subparagraph id="id8A9AE6515C834C32B61AE51F4BD5C2D4"><enum>(A)</enum><text>establish and
enforce rules that will allow the facility to obtain any necessary information
to perform any of the functions described in this section;</text>
</subparagraph><subparagraph id="id4F38A77D425A4F18A2D569CBB0EC675F"><enum>(B)</enum><text>provide the
information to the Commission on request; and</text>
</subparagraph><subparagraph id="idC0AE738C63184FDD936E4395CE7E34ED"><enum>(C)</enum><text>have the capacity
to carry out such international information-sharing agreements as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="id84D41534B30D40D89AC565F971A14C5B"><enum>(6)</enum><header>Position limits
or accountability</header>
<subparagraph id="id2FE47EDAF48246F2B5F97FA53347948C"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion, especially during trading in the delivery month, a swap execution
facility that is a trading facility shall adopt for each of the contracts of
the facility, as is necessary and appropriate, position limitations or position
accountability for speculators.</text>
</subparagraph><subparagraph id="id22868D7E6CEE4E0D83F7B3632AD01C0D"><enum>(B)</enum><header>Position
limits</header><text>For any contract that is subject to a position limitation
established by the Commission pursuant to section 4a(a), the swap execution
facility shall set its position limitation at a level no higher than the
Commission limitation.</text>
</subparagraph><subparagraph id="id0014B88E794F48BAA8C949F2351D9B28"><enum>(C)</enum><header>Position
enforcement</header><text>For any contract that is subject to a position
limitation established by the Commission pursuant to section 4a(a), a swap
execution facility shall reject any proposed swap transaction if, based on
information readily available to a swap execution facility, any proposed swap
transaction would cause a swap execution facility customer that would be a
party to such swap transaction to exceed such position limitation.</text>
</subparagraph></paragraph><paragraph id="id8F914AA81A46474A8FAD4AA90268B1CE"><enum>(7)</enum><header>Financial
integrity of transactions</header><text>The swap execution facility shall
establish and enforce rules and procedures for ensuring the financial integrity
of swaps entered on or through the facilities of the swap execution facility,
including the clearance and settlement of the swaps pursuant to section
2(h)(1).</text>
</paragraph><paragraph id="idA249FED9CAF744D095AAC311E4D65DCC"><enum>(8)</enum><header>Emergency
authority</header><text>The swap execution facility shall adopt rules to
provide for the exercise of emergency authority, in consultation or cooperation
with the Commission, as is necessary and appropriate, including the authority
to liquidate or transfer open positions in any swap or to suspend or curtail
trading in a swap.</text>
</paragraph><paragraph id="id20E8EBE7CC7341B2B783ABEF642A21DA"><enum>(9)</enum><header>Timely
publication of trading information</header>
<subparagraph id="id8B8ED89283DE48BAAB8700912DF5F18D"><enum>(A)</enum><header>In
general</header><text>The swap execution facility shall make public timely
information on price, trading volume, and other trading data on swaps to the
extent prescribed by the Commission.</text>
</subparagraph><subparagraph id="id6850BD5E314D4A15B6A045DF411AEFC8"><enum>(B)</enum><header>Capacity of
swap execution facility</header><text>The swap execution facility shall be
required to have the capacity to electronically capture trade information with
respect to transactions executed on the facility.</text>
</subparagraph></paragraph><paragraph id="id144ABBE228394684A4CB0A61F45AA38F"><enum>(10)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="id03563478BFD84A0E8B653623AACEE23A"><enum>(A)</enum><header>In
general</header><text>A swap execution facility shall—</text>
<clause id="id9CB35D12FCFF4D2DAB90664CD5C34E7A"><enum>(i)</enum><text>maintain records
of all activities relating to the business of the facility, including a
complete audit trail, in a form and manner acceptable to the Commission for a
period of 5 years; and</text>
</clause><clause id="id91467E19FFFD4E68A1D2072F622F53EB"><enum>(ii)</enum><text>report to the
Commission, in a form and manner acceptable to the Commission, such information
as the Commission determines to be necessary or appropriate for the Commission
to perform the duties of the Commission under this Act.</text>
</clause></subparagraph><subparagraph id="idA47249A7A9A64FE9BB4E02348832F7BA"><enum>(B)</enum><header>Requirements</header><text>The
Commission shall adopt data collection and reporting requirements for swap
execution facilities that are comparable to corresponding requirements for
derivatives clearing organizations and swap data repositories.</text>
</subparagraph></paragraph><paragraph id="idA8856149177E4E199A7FFAEABB5165BE"><enum>(11)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the swap execution facility shall not—</text>
<subparagraph id="id6B7108ACF36644448F1260FF8E65E67C"><enum>(A)</enum><text>adopt any rules
or taking any actions that result in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="idBCC8FE704344415B82B47BEC8D5F3395"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="id15C7B8FCEDFA4CD5975DDA4B36D89EC4"><enum>(12)</enum><header>Conflicts of
interest</header><text>The swap execution facility shall—</text>
<subparagraph id="id247F0CC5CDAF4A7E809E75B157319DDE"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in its decision-making process;
and</text>
</subparagraph><subparagraph id="idCE761AE39D954DF1A03174DF7EA659E7"><enum>(B)</enum><text>establish a
process for resolving the conflicts of interest.</text>
</subparagraph></paragraph><paragraph id="idDA794E96444147DBB43B6FD46FC9E0E2"><enum>(13)</enum><header>Financial
resources</header>
<subparagraph id="id6FBB6DE325F64D0EBA1FFB52C8169471"><enum>(A)</enum><header>In
general</header><text>The swap execution facility shall have adequate
financial, operational, and managerial resources to discharge each
responsibility of the swap execution facility.</text>
</subparagraph><subparagraph id="id6B6B8D719B774988ABBE654ED5FD81CB"><enum>(B)</enum><header>Determination
of resource adequacy</header><text>The financial resources of a swap execution
facility shall be considered to be adequate if the value of the financial
resources exceeds the total amount that would enable the swap execution
facility to cover the operating costs of the swap execution facility for a
1-year period, as calculated on a rolling basis.</text>
</subparagraph></paragraph><paragraph id="id76051B905AF44C019DFF3649E52F0922"><enum>(14)</enum><header>System
safeguards</header><text>The swap execution facility shall—</text>
<subparagraph id="idA555DFC1CFCE47A092B86CB611B235DA"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and automated systems, that—</text>
<clause id="id4B86C8DC9A7447ADB3098A3C3662DE93"><enum>(i)</enum><text>are
reliable and secure; and</text>
</clause><clause id="id876FF5309B7942F6AACFAE489109D918"><enum>(ii)</enum><text>have
adequate scalable capacity;</text>
</clause></subparagraph><subparagraph id="idC83BF1D16EC14227ADED129F581A367A"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that are designed to allow for—</text>
<clause id="idDE7C7048C7E64B7788C7D4A929B34461"><enum>(i)</enum><text>the
timely recovery and resumption of operations; and</text>
</clause><clause id="id3D715A93FA704B089D0EE3BB38893FFA"><enum>(ii)</enum><text>the
fulfillment of the responsibilities and obligation of the swap execution
facility; and</text>
</clause></subparagraph><subparagraph id="idF0B03C71ABE64E8189B45047DAD2DD5C"><enum>(C)</enum><text>periodically
conduct tests to verify that the backup resources of the swap execution
facility are sufficient to ensure continued—</text>
<clause id="id631A366E7D9B42CE97E4550122FE7604"><enum>(i)</enum><text>order
processing and trade matching;</text>
</clause><clause id="id19D870C4A176449F83A88849A10A0BAA"><enum>(ii)</enum><text>price
reporting;</text>
</clause><clause id="idE08A90E70BAA4CD48FD39F7ED4632ADC"><enum>(iii)</enum><text>market
surveillance and</text>
</clause><clause id="idC4EC8322ADA441649C1BD2FB007E9071"><enum>(iv)</enum><text>maintenance of a
comprehensive and accurate audit trail.</text>
</clause></subparagraph></paragraph><paragraph id="id2C72AFA7A99640E3BAC7D27A19EF2761"><enum>(15)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="id4E2160E460E94527BB59EB673F548979"><enum>(A)</enum><header>In
general</header><text>Each swap execution facility shall designate an
individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="idFD6041BDF1A34BE28EF7564511DF67EB"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="id65D0080242704EE79CA00022F293BAD8"><enum>(i)</enum><text>report directly
to the board or to the senior officer of the facility;</text>
</clause><clause id="id0BB2FA61BBB74FF89853EC7B74F32851"><enum>(ii)</enum><text>review
compliance with the core principles in this subsection;</text>
</clause><clause id="idDDD4A8BFBE604761B79A1F50C93D823B"><enum>(iii)</enum><text>in
consultation with the board of the facility, a body performing a function
similar to that of a board, or the senior officer of the facility, resolve any
conflicts of interest that may arise;</text>
</clause><clause id="idBF801A07505F428A943387B369EF92DB"><enum>(iv)</enum><text>be
responsible for establishing and administering the policies and procedures
required to be established pursuant to this section;</text>
</clause><clause id="id9D0434A9B00441879F9DAC3F269FFDDA"><enum>(v)</enum><text>ensure compliance
with this Act and the rules and regulations issued under this Act, including
rules prescribed by the Commission pursuant to this section; and</text>
</clause><clause id="id8115C3F975F24009B458C98AF46AB649"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues found during compliance
office reviews, look backs, internal or external audit findings, self-reported
errors, or through validated complaints.</text>
</clause></subparagraph><subparagraph id="id415EBDC2ABFF48D4BF5CDB6E6A7EB120"><enum>(C)</enum><header>Requirements
for procedures</header><text>In establishing procedures under subparagraph
(B)(vi), the chief compliance officer shall design the procedures to establish
the handling, management response, remediation, retesting, and closing of
noncompliance issues.</text>
</subparagraph><subparagraph id="id99EE6DCCD8C044FB828204FD1AD8C3BD"><enum>(D)</enum><header>Annual
reports</header>
<clause id="id8CE2D63A916643F18EC042B6ED31F9C6"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="idACA694D591904D4EA06C496D167D04D0"><enum>(I)</enum><text>the compliance of
the swap execution facility with this Act; and</text>
</subclause><subclause id="id1B0B5FAE977E4A5CB1AA5FAFA4D25F5D"><enum>(II)</enum><text>the policies and
procedures, including the code of ethics and conflict of interest policies, of
the swap execution facility.</text>
</subclause></clause><clause id="id4BEFB409AB2841BD989C9D964CB3F77D"><enum>(ii)</enum><header>Requirements</header><text>The
chief compliance officer shall—</text>
<subclause id="id4B14D6D08C8041289A4E0A350CDB46B1"><enum>(I)</enum><text>submit each
report described in clause (i) with the appropriate financial report of the
swap execution facility that is required to be submitted to the Commission
pursuant to this section; and</text>
</subclause><subclause id="idB9CC770120AC430A92960B5B000A4E01"><enum>(II)</enum><text>include in the
report a certification that, under penalty of law, the report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="idDF7609078399418EB7BD255ABB8A81D6"><enum>(e)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a swap execution
facility from registration under this section if the Commission finds that the
facility is subject to comparable, comprehensive supervision and regulation on
a consolidated basis by the Securities and Exchange Commission, a prudential
regulator, or the appropriate governmental authorities in the home country of
the facility.</text>
</subsection><subsection id="idDA0BFB7F60CC42F88271099A375A2FB1"><enum>(f)</enum><header>Rules</header><text>The
Commission shall prescribe rules governing the regulation of alternative swap
execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="ID51560e560fa641da896cce1b16852fa8"><enum>734.</enum><header>Derivatives
transaction execution facilities and exempt boards of trade</header>
<subsection id="idDD6756D1773B47C3BF1CA2AAE2FBD489"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Sections 5a and 5d of
the Commodity Exchange Act (7 U.S.C. 7a, 7a-3) are repealed.</text>
</subsection><subsection id="idA9FF5547300F4FC8B48B89480D4902A1"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID21364db7c3ed49919d93a57990ba47b7"><enum>(1)</enum><text>Section 2 of the
Commodity Exchange Act (7 U.S.C. 2) is amended—</text>
<subparagraph id="idE4EDFF8447124A63868D04A8BC7068A9"><enum>(A)</enum><text>in subsection
(a)(1)(A), in the first sentence, by striking <quote>or 5a</quote>; and</text>
</subparagraph><subparagraph id="id066293C7CC1F4574BCB3F37083F7A074"><enum>(B)</enum><text>in paragraph (2)
of subsection (g) (as redesignated by section 723(a)(1)(B)), by striking
<quote>section 5a of this Act</quote> and all that follows through <quote>5d of
this Act</quote> and inserting <quote>section 5b of this Act</quote>.</text>
</subparagraph></paragraph><paragraph id="idA95A91E7D70F4036A5FF363F7D429913"><enum>(2)</enum><text>Section
6(g)(1)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(g)(1)(A)) is
amended—</text>
<subparagraph id="id1EC1F8924E8E4230A81948B773E7FB9F"><enum>(A)</enum><text>by striking
<quote>that—</quote> and all that follows through <quote>(i) has been
designated</quote> and inserting <quote>that has been
designated</quote>;</text>
</subparagraph><subparagraph id="id25D6A84DB43649578BCC3D9E3E236CC6"><enum>(B)</enum><text>by striking
<quote>; or</quote> and inserting <quote>; and</quote> and</text>
</subparagraph><subparagraph id="idAC694DE0541542E1A034AF7E3753B259"><enum>(C)</enum><text>by striking
clause (ii).</text>
</subparagraph></paragraph></subsection></section><section id="idFD98E0467BC14C869E5797116FD9AD50"><enum>735.</enum><header>Designated
contract markets</header>
<subsection id="idCD260A283B1F488795C15DE899B74EA7"><enum>(a)</enum><header>Criteria for
Designation</header><text>Section 5 of the Commodity Exchange Act (7 U.S.C. 7)
is amended by striking subsection (b).</text>
</subsection><subsection id="ID53ad2c1fa7d04d7cae369dec17babe81"><enum>(b)</enum><header>Core principles
for contract markets</header><text>Section 5 of the Commodity Exchange Act (7
U.S.C. 7) is amended by striking subsection (d) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idA9ADF12BD251412297164BF15FBD2F28" style="OLC">
<subsection id="IDcb528b9cfb6d4898979be8769d609f13"><enum>(d)</enum><header>Core principles
for contract markets</header>
<paragraph id="IDdfcb478068104276bc735d981bc1b99d"><enum>(1)</enum><header>Designation as
contract market</header>
<subparagraph id="idDCE71E71BA4D494C8969D0F0CCD27A8F"><enum>(A)</enum><header>In
general</header><text>To be designated, and maintain a designation, as a
contract market, a board of trade shall comply with—</text>
<clause id="id9D3946A385A34B2399B035D2DFECCBE0"><enum>(i)</enum><text>any
core principle described in this subsection; and</text>
</clause><clause id="id02483F46C42F4ECEB5BEEA976B08DF57"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation pursuant to
section 8a(5).</text>
</clause></subparagraph><subparagraph id="id7471598C522044E1AF21EEA39E742D61"><enum>(B)</enum><header>Reasonable
discretion of contract market</header><text>Unless otherwise determined by the
Commission by rule or regulation, a board of trade described in subparagraph
(A) shall have reasonable discretion in establishing the manner in which the
board of trade complies with the core principles described in this
subsection.</text>
</subparagraph></paragraph><paragraph id="ID15f68e97f8ce44cbb1fefd4b7c51994c"><enum>(2)</enum><header>Compliance with
rules</header>
<subparagraph id="IDae77affb4a92443394557533cd347b5c"><enum>(A)</enum><header>In
general</header><text>The board of trade shall establish, monitor, and enforce
compliance with the rules of the contract market, including—</text>
<clause id="idE13086300AC34F66B9844D9FC4C3F210"><enum>(i)</enum><text>access
requirements;</text>
</clause><clause id="id63AF0353A539484EB2AD3B629351CD75"><enum>(ii)</enum><text>the
terms and conditions of any contracts to be traded on the contract market;
and</text>
</clause><clause id="id32655A6DFCDD489E94CB212AEA46F756"><enum>(iii)</enum><text>rules
prohibiting abusive trade practices on the contract market.</text>
</clause></subparagraph><subparagraph id="ID47a5958cfc854f5f9c8f26b665c09208"><enum>(B)</enum><header>Capacity of
contract market</header><text>The board of trade shall have the capacity to
detect, investigate, and apply appropriate sanctions to any person that
violates any rule of the contract market.</text>
</subparagraph><subparagraph id="IDa1453a382ad04787a18ebe6444a2f1b7"><enum>(C)</enum><header>Requirement of
rules</header><text>The rules of the contract market shall provide the board of
trade with the ability and authority to obtain any necessary information to
perform any function described in this subsection, including the capacity to
carry out such international information-sharing agreements as the Commission
may require.</text>
</subparagraph></paragraph><paragraph id="IDbb09df1955544102aeb8e2ef4fffbf2d"><enum>(3)</enum><header>Contracts not
readily subject to manipulation</header><text>The board of trade shall list on
the contract market only contracts that are not readily susceptible to
manipulation.</text>
</paragraph><paragraph id="ID3bbad565f2e04a21835941bf6f55787f"><enum>(4)</enum><header>Prevention of
market disruption</header><text>The board of trade shall have the capacity and
responsibility to prevent manipulation, price distortion, and disruptions of
the delivery or cash-settlement process through market surveillance,
compliance, and enforcement practices and procedures, including—</text>
<subparagraph id="idE28C43BB8EF346668902935822558562"><enum>(A)</enum><text>methods for
conducting real-time monitoring of trading; and</text>
</subparagraph><subparagraph id="idA1064E7D11184334816DC59185C7F22A"><enum>(B)</enum><text>comprehensive and
accurate trade reconstructions.</text>
</subparagraph></paragraph><paragraph id="IDe15f30c77f544d86b505f6bdfd1457c2"><enum>(5)</enum><header>Position
limitations or accountability</header>
<subparagraph id="ID5c515356ea1f445889a6bc8d5e7461d6"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion (especially during trading in the delivery month), the board of
trade shall adopt for each contract of the board of trade, as is necessary and
appropriate, position limitations or position accountability for
speculators.</text>
</subparagraph><subparagraph id="ID8886943ba8a240f39494af51438a48f1"><enum>(B)</enum><header>Maximum
allowable position limitation</header><text>For any contract that is subject to
a position limitation established by the Commission pursuant to section 4a(a),
the board of trade shall set the position limitation of the board of trade at a
level not higher than the position limitation established by the
Commission.</text>
</subparagraph></paragraph><paragraph id="IDa4a2b3b059f24d489f4d1735a4acde6a"><enum>(6)</enum><header>Emergency
authority</header><text>The board of trade, in consultation or cooperation with
the Commission, shall adopt rules to provide for the exercise of emergency
authority, as is necessary and appropriate, including the authority—</text>
<subparagraph id="IDb5b0d9fad035471da047e899dea41096"><enum>(A)</enum><text>to liquidate or
transfer open positions in any contract;</text>
</subparagraph><subparagraph id="ID0e449f3b0ddf43d3aa3d70d8a148336b"><enum>(B)</enum><text>to suspend or
curtail trading in any contract; and</text>
</subparagraph><subparagraph id="IDf2efb88bb4044d4795ff5052b57bdfc4"><enum>(C)</enum><text>to require market
participants in any contract to meet special margin requirements.</text>
</subparagraph></paragraph><paragraph id="IDfb14626cde5a43bfa19700ab78a81729"><enum>(7)</enum><header>Availability of
general information</header><text>The board of trade shall make available to
market authorities, market participants, and the public accurate information
concerning—</text>
<subparagraph id="ID344451100a0941c68d784fb9c998b0e0"><enum>(A)</enum><text>the terms and
conditions of the contracts of the contract market; and</text>
</subparagraph><subparagraph id="IDc85667e51b504167ace74ce9ef05d6ea"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id301B7EB632FF4E439B724D1E2BFD4103"><enum>(i)</enum><text>the rules, regulations,
and mechanisms for executing transactions on or through the facilities of the
contract market; and</text>
</clause><clause id="id8F312475AA534FBEB938B3C53E6B556A" indent="up1"><enum>(ii)</enum><text>the rules and specifications
describing the operation of the contract market’s—</text>
<subclause id="id887C715B917647B0A0114CA5D3CABDF4"><enum>(I)</enum><text>electronic matching platform; or</text>
</subclause><subclause id="id0C4D6E0C717849989B04CFA2BF787C6F"><enum>(II)</enum><text>trade execution facility.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID9a4712f00fb547259445771eeb3a99d1"><enum>(8)</enum><header>Daily
publication of trading information</header><text>The board of trade shall make
public daily information on settlement prices, volume, open interest, and
opening and closing ranges for actively traded contracts on the contract
market.</text>
</paragraph><paragraph id="ID7371e21c628441d1b473afaf9eee10b3"><enum>(9)</enum><header>Execution of
transactions</header>
<subparagraph id="ID503bb852fa7c47378080d989521ce29b"><enum>(A)</enum><header>In
general</header><text>The board of trade shall provide a competitive, open, and
efficient market and mechanism for executing transactions that protects the
price discovery process of trading in the centralized market of the board of
trade.</text>
</subparagraph><subparagraph id="ID30495424ada44cc2aa032eecd5468155"><enum>(B)</enum><header>Rules</header><text>The
rules of the board of trade may authorize, for bona fide business
purposes—</text>
<clause id="ID90e8be502ff94fb597b8690fd2311c6b"><enum>(i)</enum><text>transfer trades
or office trades;</text>
</clause><clause id="IDda1dc74b1e42456e8e1d909f9df258fb"><enum>(ii)</enum><text>an
exchange of—</text>
<subclause id="IDab6952e8c87e46ad9537ad72e758ac72"><enum>(I)</enum><text>futures in
connection with a cash commodity transaction;</text>
</subclause><subclause id="IDfbfcd407a2c149a99a51e532908a49bb"><enum>(II)</enum><text>futures for cash
commodities; or</text>
</subclause><subclause id="ID3079f0f2bc3c4be8a62e632044c10cfe"><enum>(III)</enum><text>futures for
swaps; or</text>
</subclause></clause><clause id="IDf7c675d68f6a405194e933d4b503ff95"><enum>(iii)</enum><text>a
futures commission merchant, acting as principal or agent, to enter into or
confirm the execution of a contract for the purchase or sale of a commodity for
future delivery if the contract is reported, recorded, or cleared in accordance
with the rules of the contract market or a derivatives clearing
organization.</text>
</clause></subparagraph></paragraph><paragraph id="ID5dd5555a2a46425dbb2fdc38c13a3a8f"><enum>(10)</enum><header>Trade
information</header><text>The board of trade shall maintain rules and
procedures to provide for the recording and safe storage of all identifying
trade information in a manner that enables the contract market to use the
information—</text>
<subparagraph id="idEBB4B935A9D04D598D5117046C4F5003"><enum>(A)</enum><text>to assist in the
prevention of customer and market abuses; and</text>
</subparagraph><subparagraph id="idE56ACC3904A14CC1A186CDE7B6C43541"><enum>(B)</enum><text>to provide
evidence of any violations of the rules of the contract market.</text>
</subparagraph></paragraph><paragraph id="ID92491436a99547378553e7ada27f96c6"><enum>(11)</enum><header>Financial
integrity of transactions</header><text>The board of trade shall establish and
enforce—</text>
<subparagraph id="idFAA4B2CD76254F5EA7E9781102CAEF8B"><enum>(A)</enum><text>rules and
procedures for ensuring the financial integrity of transactions entered into on
or through the facilities of the contract market (including the clearance and
settlement of the transactions with a derivatives clearing organization);
and</text>
</subparagraph><subparagraph id="idF7BD72F2A3DC4C1AAD4F557258AE0D22"><enum>(B)</enum><text>rules to
ensure—</text>
<clause id="id8B43138309094123BEEC1FCA11A3130D"><enum>(i)</enum><text>the
financial integrity of any—</text>
<subclause id="id22F740C677C74AD2BF433ABD337BE2B9"><enum>(I)</enum><text>futures
commission merchant; and</text>
</subclause><subclause id="id2AAF0F4630094C0683489C5FE4BCC795"><enum>(II)</enum><text>introducing
broker; and</text>
</subclause></clause><clause id="id07E3B8DB97674541AF5CE1603EA4B808"><enum>(ii)</enum><text>the
protection of customer funds.</text>
</clause></subparagraph></paragraph><paragraph id="IDe26b5148e95c417d8a5753e0a0cbe297"><enum>(12)</enum><header>Protection of
markets and market participants</header><text>The board of trade shall
establish and enforce rules—</text>
<subparagraph id="idC0656E3A665E4B85AB2CEDDC9613F621"><enum>(A)</enum><text>to protect
markets and market participants from abusive practices committed by any party,
including abusive practices committed by a party acting as an agent for a
participant; and</text>
</subparagraph><subparagraph id="id22E208CC8DCB420EBD35D75894511771"><enum>(B)</enum><text>to promote fair
and equitable trading on the contract market.</text>
</subparagraph></paragraph><paragraph id="ID91d946909c084d7ebee1a7e89519bb64"><enum>(13)</enum><header>Disciplinary
procedures</header><text>The board of trade shall establish and enforce
disciplinary procedures that authorize the board of trade to discipline,
suspend, or expel members or market participants that violate the rules of the
board of trade, or similar methods for performing the same functions, including
delegation of the functions to third parties.</text>
</paragraph><paragraph id="ID9964e45718d5462a83b3c99ed9bd0815"><enum>(14)</enum><header>Dispute
resolution</header><text>The board of trade shall establish and enforce rules
regarding, and provide facilities for alternative dispute resolution as
appropriate for, market participants and any market intermediaries.</text>
</paragraph><paragraph id="ID3afef5d37b48440cb6508b9b054e6062"><enum>(15)</enum><header>Governance
fitness standards</header><text>The board of trade shall establish and enforce
appropriate fitness standards for directors, members of any disciplinary
committee, members of the contract market, and any other person with direct
access to the facility (including any party affiliated with any person
described in this paragraph).</text>
</paragraph><paragraph id="ID846587ad2a2249a1b76fd7b10bc5cb92"><enum>(16)</enum><header>Conflicts of
interest</header><text>The board of trade shall establish and enforce
rules—</text>
<subparagraph id="id34634121AE414356BC637E6C235D4D1C"><enum>(A)</enum><text>to minimize
conflicts of interest in the decision-making process of the contract market;
and</text>
</subparagraph><subparagraph id="id52FDDDEF8812490E95A1047523B32113"><enum>(B)</enum><text>to establish a
process for resolving conflicts of interest described in subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="IDc2ae8edc418d439dbc853389aa7e300a"><enum>(17)</enum><header>Composition of
governing boards of contract markets</header><text>The governance arrangements
of the board of trade shall be designed to promote the objectives of market
participants.</text>
</paragraph><paragraph id="ID54d753e7c6fa4ac3a55fe6ac7a9fbb6c"><enum>(18)</enum><header>Recordkeeping</header><text>The
board of trade shall maintain records of all activities relating to the
business of the contract market—</text>
<subparagraph id="idAF2333E71C8A46A1A8BE16975305AC08"><enum>(A)</enum><text>in a form and
manner that is acceptable to the Commission; and</text>
</subparagraph><subparagraph id="id611AB6CB5AF94EF7A83D8BF83DE58A42"><enum>(B)</enum><text>for a period of
at least 5 years.</text>
</subparagraph></paragraph><paragraph id="ID6c32f7f463b3445696a81716b0b95149"><enum>(19)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the board of trade shall not—</text>
<subparagraph id="ID14965c4416104986a8c72d0c4b3b1d2c"><enum>(A)</enum><text>adopt any rule or
taking any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="IDdc88af555be14003a16b582ecf565a1d"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading on the contract market.</text>
</subparagraph></paragraph><paragraph id="ID984b698f414d49fdaa0aa8b2fe03e074"><enum>(20)</enum><header>System
safeguards</header><text>The board of trade shall—</text>
<subparagraph id="ID95700d782a014f238e20a2196231bfcc"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and the development of automated systems, that are reliable,
secure, and have adequate scalable capacity;</text>
</subparagraph><subparagraph id="IDd331f991b0434fc88870257ebe531cdc"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allow for the timely recovery and resumption of operations and
the fulfillment of the responsibilities and obligations of the board of trade;
and</text>
</subparagraph><subparagraph id="IDb5868436faf64af7992120e44965eab0"><enum>(C)</enum><text>periodically
conduct tests to verify that backup resources are sufficient to ensure
continued order processing and trade matching, price reporting, market
surveillance, and maintenance of a comprehensive and accurate audit
trail.</text>
</subparagraph></paragraph><paragraph id="ID1cc11923b44b48ffb4f32aa08a926f37"><enum>(21)</enum><header>Financial
resources</header>
<subparagraph id="IDd9b4cebf4de445168ffdd1b7412264ed"><enum>(A)</enum><header>In
general</header><text>The board of trade shall have adequate financial,
operational, and managerial resources to discharge each responsibility of the
board of trade.</text>
</subparagraph><subparagraph id="IDe67f7766ab614fd2b4bd7f8fb9732179"><enum>(B)</enum><header>Determination
of adequacy</header><text>The financial resources of the board of trade shall
be considered to be adequate if the value of the financial resources exceeds
the total amount that would enable the contract market to cover the operating
costs of the contract market for a 1-year period, as calculated on a rolling
basis.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID21bb88c280264d14b87a7e644ef8ff88"><enum>736.</enum><header>Margin</header><text display-inline="no-display-inline">Section 8a(7) of the Commodity Exchange Act
(7 U.S.C. 12a(7)) is amended—</text>
<paragraph id="id7EEAC04B1B5043188D447F88C7A72BAC"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>,
excepting the setting of levels of margin</quote>;</text>
</paragraph><paragraph id="id6A04EEBF993C488E88FF047C4716A4BE"><enum>(2)</enum><text>by
redesignating subparagraphs (D) through (F) as subparagraphs (E) through (G),
respectively; and</text>
</paragraph><paragraph id="id6E19D3B75D124155A40D5869EBDEB424"><enum>(3)</enum><text>by
inserting after subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="id593424365944436AB6A2387D6AD9563F" style="OLC">
<subparagraph id="IDd9ec91d661d8408a9b97e9d9e1b88354"><enum>(D)</enum><text>margin
requirements, provided that the rules, regulations, or orders shall—</text>
<clause id="IDc73e68b00e94466bad960d3e78472946"><enum>(i)</enum><text>be
limited to protecting the financial integrity of the derivatives clearing
organization;</text>
</clause><clause id="ID1ae7c60ba68e466b96eb6c756f7ae71e"><enum>(ii)</enum><text>be
designed for risk management purposes to protect the financial integrity of
transactions; and</text>
</clause><clause id="IDa6375fbea3d94710b400a016672ae7f0"><enum>(iii)</enum><text>not
set specific margin
amounts;</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID9ec7505269514347926cec34239f3b8c"><enum>737.</enum><header>Position
limits</header>
<subsection id="ID9b2cfb2e445744818a0997ea4125be15"><enum>(a)</enum><header>Aggregate
position limits</header><text>Section 4a(a) of the Commodity Exchange Act (7
U.S.C. 6a(a)) is amended—</text>
<paragraph id="IDe7217936e8b44b75975c2b75cdf0ce40"><enum>(1)</enum><text>by
inserting after <quote>(a)</quote> the following:</text>
<quoted-block display-inline="no-display-inline" id="id8ACBD264E3C340DDB4F09B3BCDA73EAC" style="OLC">
<paragraph id="id7CCF6AED21DD41C19E08183CAC45D631"><enum>(1)</enum><header>In
general</header>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID15b981a9db9e445ea3fdd5fe45ff601f"><enum>(2)</enum><text>in
the first sentence, by striking <quote>on electronic trading facilities with
respect to a significant price discovery contract</quote> and inserting
<quote>swaps that perform or affect a significant price discovery function with
respect to registered entities</quote>;</text>
</paragraph><paragraph id="ID5e25fcca27a24f979e80fab58c80ccfc"><enum>(3)</enum><text>in
the second sentence—</text>
<subparagraph id="idF1E23E2890664EB6B2FDAEE61B40E137"><enum>(A)</enum><text>by inserting
<quote>, including any group or class of traders,</quote> after <quote>held by
any person</quote>; and</text>
</subparagraph><subparagraph id="IDe8f1d3c74b57476a89d066e041567ae8"><enum>(B)</enum><text>by striking
<quote>on an electronic trading facility with respect to a significant price
discovery contract,</quote> and inserting <quote>swaps traded on or subject to
the rules of an swaps execution facility, or swaps not traded on or subject to
the rules of an swaps execution facility that perform a significant price
discovery function with respect to a registered entity,</quote>; and</text>
</subparagraph></paragraph><paragraph id="IDe8fc9b0213e140708db4003dbcdbdd41"><enum>(4)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2BE936B89EEB4F99AFA127DFD927EB9C" style="OLC">
<paragraph id="IDf5cc3f0f75354c2886307c8b3d5fe2f8"><enum>(2)</enum><header>Aggregate
position limits</header><text>The Commission shall, by rule or regulation,
establish limits (including related hedge exemption provisions) on the
aggregate number or amount of positions in contracts based on the same
underlying commodity (as defined by the Commission) that may be held by any
person, including any group or class of traders, for each month across—</text>
<subparagraph id="ID305c8852a98b4c5fa7ca50710af5c181"><enum>(A)</enum><text>contracts listed
by designated contract markets;</text>
</subparagraph><subparagraph id="IDe6465ba627dc41f8beab8e05c66e3d48"><enum>(B)</enum><text>with respect to
an agreement, contract, or transaction that settles against, or in relation to,
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 the electronic trading and order
matching system of the foreign board of trade;</text>
</subparagraph><subparagraph id="ID14c571bbc53d4a11b36724071b7a0238"><enum>(C)</enum><text>swaps traded on
or subject to the rules of a swap execution facility; and</text>
</subparagraph><subparagraph id="ID3b28bac3f7c74761a977b49fdeb48044"><enum>(D)</enum><text>swaps not traded
on or subject to the rules of a swap execution facility that perform or affect
a significant price discovery function with respect to a registered
entity.</text>
</subparagraph></paragraph><paragraph id="ID2cd35138179e422ea3e3c99cded91b71"><enum>(3)</enum><header>Significant
price discovery function</header><text>In making a determination as to whether
a swap performs or affects a significant price discovery function with respect
to registered entities, the Commission shall consider, as appropriate, the
following factors:</text>
<subparagraph id="ID88231820b1514533ac47a62b7104aa5d"><enum>(A)</enum><header>Price
linkage</header><text>The extent to which the swap uses or otherwise relies on
a daily or final settlement price, or other major price parameter, of another
contract traded on a registered entity based on the same underlying commodity,
to value a position, transfer or convert a position, financially settle a
position, or close out a position.</text>
</subparagraph><subparagraph id="IDba97e36eebb043ebacb897fec9af0bc1"><enum>(B)</enum><header>Arbitrage</header><text>The
extent to which the price for the swap is sufficiently related to the price of
another contract traded on a registered entity based on the same underlying
commodity so as to permit market participants to effectively arbitrage between
the markets by simultaneously maintaining positions or executing trades in the
swaps on a frequent and recurring basis.</text>
</subparagraph><subparagraph id="IDcbc51d33a90249e9932c13115e3f8081"><enum>(C)</enum><header>Material price
reference</header><text>The extent to which, on a frequent and recurring basis,
bids, offers, or transactions in a contract traded on a registered entity are
directly based on, or are determined by referencing, the price generated by the
swap.</text>
</subparagraph><subparagraph id="ID34bea453f636486cb8f6cfa8174dc40f"><enum>(D)</enum><header>Material
liquidity</header><text>The extent to which the volume of swaps being traded in
the commodity is sufficient to have a material effect on another contract
traded on a registered entity.</text>
</subparagraph><subparagraph id="ID3639208a01124c6eaabcdd831965ff0f"><enum>(E)</enum><header>Other material
factors</header><text>Such other material factors as the Commission specifies
by rule or regulation as relevant to determine whether a swap serves a
significant price discovery function with respect to a regulated market.</text>
</subparagraph></paragraph><paragraph id="ID6b66a2a4e9094921b2e590e2c4748969"><enum>(4)</enum><header>Exemptions</header><text>The
Commission, by rule, regulation, or order, may exempt, conditionally or
unconditionally, any person or class of persons, any swap or class of swaps, or
any transaction or class of transactions from any requirement that the
Commission establishes under this section with respect to position
limits.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDf846c0efaac944cdb88cd5252c3b9d4c"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 4a(b) of the Commodity Exchange Act (7 U.S.C.
6a(b)) is amended—</text>
<paragraph id="ID05aa77efb628490496848819f0d61f5e"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>or derivatives transaction execution facility
or facilities or electronic trading facility</quote> and inserting <quote>or
swap execution facility or facilities</quote>; and</text>
</paragraph><paragraph id="ID3181447dac8b43dc977a45e2942dca1b"><enum>(2)</enum><text>in
paragraph (2), by striking <quote>or derivatives transaction execution facility
or facilities or electronic trading facility</quote> and inserting <quote>or
swap execution facility</quote>.</text>
</paragraph></subsection></section><section id="idE0E64816A89D470EAFEB4D675E59AC1E"><enum>738.</enum><header>Foreign boards
of trade</header>
<subsection id="id197008530DE7488D9106251571617CE2"><enum>(a)</enum><header>In
general</header><text>Section 4(b) of the Commodity Exchange Act (7 U.S.C.
6(b)) is amended—</text>
<paragraph id="id95D3AFB675D448069672C17D77AD0EAF"><enum>(1)</enum><text>in
the first sentence, by striking <quote>The Commission</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id757548563EF64F5C9F80037FB02D262F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idF7A4263F86584DCEA5AA9982520D5E13"><enum>(2)</enum><header display-inline="yes-display-inline">Persons located in the United
States</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id3A5ADA9D38034C8AA8BEE65A925959E3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>The
Commission</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idEFEFD99318FA4F129B74B196426DF03B"><enum>(2)</enum><text>in
the second sentence, by striking <quote>Such rules and regulations</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC58DA14F085E40CB979E217FD7DC4A27" style="OLC">
<subparagraph id="id5F55829F5DEA48D1BC1850D9BC9F5412"><enum>(B)</enum><header>Different
requirements</header><text>Rules and regulations described in subparagraph
(A)</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id262CA464C0AB42B6A9ABDA2C4FE031BE"><enum>(3)</enum><text>in
the third sentence—</text>
<subparagraph id="idB56C8F59D575434596F84A50FFAE3DFA"><enum>(A)</enum><text>by striking
<quote>No rule or regulation</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5BE4E849BF8B47A995378E7B40B4B415" style="OLC">
<subparagraph id="idD4734F87363C41E8B1A42DFEF1D5E2B6"><enum>(C)</enum><header>Prohibition</header><text>Except
as provided in paragraphs (1) and (2), no rule or
regulation</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id5247A89FAA9D4917A7970AF1E3758F44"><enum>(B)</enum><text>by striking
<quote>that (1) requires</quote> and inserting the following: “that—</text>
<quoted-block display-inline="no-display-inline" id="id9B99E3D6D5B042C9B7205E2D3418EE00" style="OLC">
<clause id="id4DF1B54C65484CBF819DC4552FD898D1"><enum>(i)</enum><text>requires</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id291C76F1775049478E6473F7442DC355"><enum>(C)</enum><text>by striking
<quote>market, or (2) governs</quote> and inserting the following: “market;
or</text>
<quoted-block display-inline="no-display-inline" id="idA6AB14BB96E84A0A88FACBAAF1EE9C31" style="OLC">
<clause id="id975E743BA2FF4B948D3AEEDB43175DE1"><enum>(ii)</enum><text>governs</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id25F2939693E94762BAF7764DF91052B9"><enum>(4)</enum><text>by
inserting before paragraph (2) (as designated by paragraph (1)) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idB2E17136AA4A4AA090B44F8A5F235340" style="OLC">
<paragraph id="idC2226092E4D14967838351E5C75B1CD6"><enum>(1)</enum><header>Foreign Boards
of trade</header>
<subparagraph id="idDC049851C50940F6B76A91850A8B2949"><enum>(A)</enum><header>In
general</header><text>It shall be unlawful for a foreign board of trade to
provide to the members of the foreign board of trade or other participants
located in the United States direct access to the electronic trading and
order-matching system of the foreign board of trade with respect to an
agreement, contract, or transaction that settles against any price (including
the daily or final settlement price) of 1 or more contracts listed for trading
on a registered entity, unless the Commission determines that—</text>
<clause id="idA6E3830773E043A2A590DCEB2CB1C766"><enum>(i)</enum><text>the
foreign board of trade makes public daily trading information regarding the
agreement, contract, or transaction that is comparable to the daily trading
information published by the registered entity for the 1 or more contracts
against which the agreement, contract, or transaction traded on the foreign
board of trade settles; and</text>
</clause><clause id="id26138586D9634DCCAD726882AE073735"><enum>(ii)</enum><text>the
foreign board of trade (or the foreign futures authority that oversees the
foreign board of trade)—</text>
<subclause id="id22A285A303E449B2BB6410CDA69F1751"><enum>(I)</enum><text>adopts position
limits (including related hedge exemption provisions) for the agreement,
contract, or transaction that are comparable to the position limits (including
related hedge exemption provisions) adopted by the registered entity for the 1
or more contracts against which the agreement, contract, or transaction traded
on the foreign board of trade settles;</text>
</subclause><subclause id="idE6656D00072943BC81CFD384016228EB"><enum>(II)</enum><text>has the
authority to require or direct market participants to limit, reduce, or
liquidate any position the foreign board of trade (or the foreign futures
authority that oversees the foreign board of trade) determines to be necessary
to prevent or reduce the threat of price manipulation, excessive speculation as
described in section 4a, price distortion, or disruption of delivery or the
cash settlement process;</text>
</subclause><subclause id="idC23DD5B58F974D908EEE4D0D8EBF7DCA"><enum>(III)</enum><text>agrees to
promptly notify the Commission, with regard to the agreement, contract, or
transaction that settles against any price (including the daily or final
settlement price) of 1 or more contracts listed for trading on a registered
entity, of any change regarding—</text>
<item id="id88984842AE3249B997ED460D26D7F8CD"><enum>(aa)</enum><text>the
information that the foreign board of trade will make publicly
available;</text>
</item><item id="id81B4364687D64675AB391C103975D871"><enum>(bb)</enum><text>the
position limits that the foreign board of trade or foreign futures authority
will adopt and enforce;</text>
</item><item id="id38DBA1B0212847F191AF843554F271AC"><enum>(cc)</enum><text>the
position reductions required to prevent manipulation, excessive speculation as
described in section 4a, price distortion, or disruption of delivery or the
cash settlement process; and</text>
</item><item id="idE1A36DA93252410FB4B9E6DD9D542A0B"><enum>(dd)</enum><text>any
other area of interest expressed by the Commission to the foreign board of
trade or foreign futures authority;</text>
</item></subclause><subclause id="idC24FCE9F80FF443991F6F29ABFEC0201"><enum>(IV)</enum><text>provides
information to the Commission regarding large trader positions in the
agreement, contract, or transaction that is comparable to the large trader
position information collected by the Commission for the 1 or more contracts
against which the agreement, contract, or transaction traded on the foreign
board of trade settles; and</text>
</subclause><subclause id="id7F80BEA6699140F3A9BD91E10BC40758"><enum>(V)</enum><text>provides the
Commission such information as is necessary to publish reports on aggregate
trader positions for the agreement, contract, or transaction traded on the
foreign board of trade that are comparable to such reports on aggregate trader
positions for the 1 or more contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles.</text>
</subclause></clause></subparagraph><subparagraph id="idE7A1E0FC256545DD8B0C782CECE218CC"><enum>(B)</enum><header>Existing
foreign boards of trade</header><text>Subparagraph (A) shall not be effective
with respect to any foreign board of trade to which, prior to the date of
enactment of this paragraph, the Commission granted direct access permission
until the date that is 180 days after that date of
enactment.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id25C0D1C19D9E44639F3FA7222E4DF9A2"><enum>(b)</enum><header>Liability of
registered persons trading on a foreign board of trade</header><text>Section 4
of the Commodity Exchange Act (7 U.S.C. 6) is amended—</text>
<paragraph id="id96704F9FA87D4C62A75B637901B76325"><enum>(1)</enum><text>in
subsection (a), in the matter preceding paragraph (1), by inserting <quote>or
by subsection (e)</quote> after <quote>Unless exempted by the Commission
pursuant to subsection (c)</quote>; and</text>
</paragraph><paragraph commented="no" id="id9525D870418B42229A52EE88521B7E0D"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA40788E2EF2F41369BE4494A1AABAF39" style="OLC">
<subsection id="idBDE9FB7AB40449489635C7A9DD9CCE10"><enum>(e)</enum><header>Liability of
registered persons trading on a foreign board of trade</header><text>A person
registered with the Commission, or exempt from registration by the Commission,
under this Act may not be found to have violated subsection (a) with respect to
a transaction in, or in connection with, a contract of sale of a commodity for
future delivery if the person has reason to believe that the transaction and
the contract is made on or subject to the rules of a foreign board of trade
that has complied with paragraphs (1) and (2) of subsection
(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id5A9173AFDA4D46538B250D1761339195"><enum>(c)</enum><header>Contract
enforcement for foreign futures contracts</header><text>Section 22(a) of the
Commodity Exchange Act (7 U.S.C. 25(a)) (as amended by section 739) is amended
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5E0D89CB018D4FB4B9E718163C90910C" style="OLC">
<paragraph id="id24704478CEA34B22968379CFC8C554F8"><enum>(6)</enum><header>Contract
enforcement for foreign futures contracts</header><text>A contract of sale of a
commodity for future delivery traded or executed on or through the facilities
of a board of trade, exchange, or market located outside the United States for
purposes of section 4(a) shall not be void, voidable, or unenforceable, and a
party to such a contract shall not be entitled to rescind or recover any
payment made with respect to the contract, based on the failure of the foreign
board of trade to comply with any provision of this
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDf3cbd500924a45188a7f0226da000edf"><enum>739.</enum><header>Legal
certainty for swaps</header><text display-inline="no-display-inline">Section
22(a) of the Commodity Exchange Act (7 U.S.C. 25(a)) is amended by striking
paragraph (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idF11DEE2932E24D6AAB8BBD2E7247F8CD" style="OLC">
<paragraph id="ID29b9e3ce071b47b89986268a8d336fdf"><enum>(4)</enum><header>Contract
enforcement between eligible counterparties</header>
<subparagraph id="ID285eaac353c84b59b664117bc952fca9"><enum>(A)</enum><header>In
general</header><text>No hybrid instrument sold to any investor shall be void,
voidable, or unenforceable, and no party to a hybrid instrument shall be
entitled to rescind, or recover any payment made with respect to, the hybrid
instrument under this section or any other provision of Federal or State law,
based solely on the failure of the hybrid instrument to comply with the terms
or conditions of section 2(f) or regulations of the Commission.</text>
</subparagraph><subparagraph id="ID802315ce796c4fcd8ba3e07d1175a103"><enum>(B)</enum><header>Swaps</header><text>No
agreement, contract, or transaction between eligible contract participants or
persons reasonably believed to be eligible contract participants shall be void,
voidable, or unenforceable, and no party to an agreement, contract, or
transaction shall be entitled to rescind, or recover any payment made with
respect to, the agreement, contract, or transaction under this section or any
other provision of Federal or State law, based solely on the failure of the
agreement, contract, or transaction—</text>
<clause id="id7030923798814A2BB32E8289EA812B02"><enum>(i)</enum><text>to
meet the definition of a swap under section 1a; or</text>
</clause><clause id="id69271433282941079425A497B4385CB5"><enum>(ii)</enum><text>to
be cleared in accordance with section 2(h)(1).</text>
</clause></subparagraph></paragraph><paragraph id="ID4207a3755d7544dcaf79ccbaeed360fe"><enum>(5)</enum><header>Legal certainty
for long-term swaps entered into before the date of enactment of the Wall
Street Transparency and Accountability Act of 2010</header>
<subparagraph id="IDc8e9513ce5e94119b4612bec5507c618"><enum>(A)</enum><header>In
general</header><text>Any swap entered into before the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>, the terms of which have not expired as of the date
of enactment, shall not be subject to the mandatory clearing requirements under
this Act.</text>
</subparagraph><subparagraph id="ID16d7cfde5a3b45a68f5b4771d4e0650b"><enum>(B)</enum><header>Effect on
swaps</header><text>Unless specifically reserved in the applicable bilateral
trading agreement, neither the enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>, nor any requirement under that Act or an amendment
made by that Act, shall constitute a termination event, force majeure,
illegality, increased costs, regulatory change, or similar event under a
bilateral trading agreement (including any related credit support arrangement)
that would permit a party to terminate, renegotiate, modify, amend, or
supplement 1 or more transactions under the bilateral trading agreement.</text>
</subparagraph><subparagraph id="id9BF57D95E7F6490AB0D9CAF4048F693B"><enum>(C)</enum><header>Position
limits</header><text>Any position limit established under the Wall Street
Transparency and Accountability Act of 2010 shall not apply to a position
acquired in good faith prior to the effective date of any rule, regulation, or
order under the Act that establishes the position limit; provided, however,
that such positions shall be attributed to the trader if the trader’s position
is increased after the effective date such position limit rule, regulation, or
order.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID0b1b4488be744faea19fad6588e3641b"><enum>740.</enum><header>Multilateral
clearing organizations</header><text display-inline="no-display-inline">Sections 408 and 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4421, 4422) are
repealed.</text>
</section><section id="IDcc165f0b843a4e3fa1d307b94e1aea4e"><enum>741.</enum><header>Enforcement</header>
<subsection id="IDdc9065df67444f58996f3e6f21669165"><enum>(a)</enum><header>Enforcement
authority</header><text>The <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> is amended by inserting after section 4b (7 U.S.C. 6b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id3C72E5A3275F40B9AF3BE7A6BAA4394A" style="OLC">
<section id="ID339d236a9eb6495ca128b2051c108394"><enum>4b–1.<?LEXA-Enum 4b–1.?></enum><header>Enforcement authority</header>
<subsection id="ID116d189c7b544ceb9be460572c50b0be"><enum>(a)</enum><header>Commission</header><text>Except
as provided in subsections (b), (c), and (d), the Commission shall have primary
authority to enforce the amendments made by the Wall Street Transparency and
Accountability Act of 2010 with respect to any person.</text>
</subsection><subsection id="ID0f99ce393d924925b4d23c12b59ed8a8"><enum>(b)</enum><header>Appropriate
Federal banking agencies</header><text>The appropriate Federal banking agency
for swap dealers or major swap participants that are depository institutions,
as that term is defined under section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813), shall have exclusive authority to enforce the provisions of
section 4s(e) and other prudential requirements of this Act, with respect to
depository institutions that are swap dealers or major swap
participants.</text>
</subsection><subsection id="ID08611a8b1db84606afc52a75738cc092"><enum>(c)</enum><header>Referrals</header>
<paragraph id="IDd08722db7633424fb81d8f85bc0a0803"><enum>(1)</enum><header>Prudential
regulators</header><text>If the prudential regulator for a swap dealer or major
swap participant has cause to believe that the swap dealer or major swap
participant, or any affiliate or division of the swap dealer or major swap
participant, may have engaged in conduct that constitutes a violation of the
nonprudential requirements of this Act (including section 4s or rules adopted
by the Commission under that section), the prudential regulator shall promptly
notify the Commission in a written report that includes—</text>
<subparagraph id="ID9e22b35fd21742a8b0e7d6b52a74fda3"><enum>(A)</enum><text>a request that
the Commission initiate an enforcement proceeding under this Act; and</text>
</subparagraph><subparagraph id="ID2b313a5814994d26a0bd0b4f8925fd5a"><enum>(B)</enum><text>an explanation of
the facts and circumstances that led to the preparation of the written
report.</text>
</subparagraph></paragraph><paragraph id="ID8f7d938a30e9478ab6ebc0d1978992fd"><enum>(2)</enum><header>Commission</header><text>If
the Commission has cause to believe that a swap dealer or major swap
participant that has a prudential regulator may have engaged in conduct that
constitutes a violation of any prudential requirement of section 4s or rules
adopted by the Commission under that section, the Commission may notify the
prudential regulator of the conduct in a written report that includes—</text>
<subparagraph id="ID033b127fbfab4d6383b8cc28cdf7e749"><enum>(A)</enum><text>a request that
the prudential regulator initiate an enforcement proceeding under this Act or
any other Federal law (including regulations); and</text>
</subparagraph><subparagraph id="IDbce19d0fc4d042e0a6d56c98d13238d8"><enum>(B)</enum><text>an explanation of
the concerns of the Commission, and a description of the facts and
circumstances, that led to the preparation of the written report.</text>
</subparagraph></paragraph></subsection><subsection id="IDdc9e3f9702bb4f99b8d24f3ec1a2f617"><enum>(d)</enum><header>Backstop
enforcement authority</header>
<paragraph id="idF67342C6D3264BBC81E8907959354214"><enum>(1)</enum><header>Initiation of
enforcement proceeding by prudential regulator</header><text>If the Commission
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the Commission receives a written report under
subsection (c)(1), the prudential regulator may initiate an enforcement
proceeding.</text>
</paragraph><paragraph id="id82AC68AE418640A2A527E6BA61136AA4"><enum>(2)</enum><header>Initiation of
enforcement proceeding by Commission</header><text>If the prudential regulator
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the prudential regulator receives a written
report under subsection (c)(2), the Commission may initiate an enforcement
proceeding.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDbfc791e48f6340bd99dc24a88ac40126"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID551ba74c4ddf4e6ebdf451d844dd1f63"><enum>(1)</enum><text>Section 4b of the
Commodity Exchange Act (7 U.S.C. 6b) is amended—</text>
<subparagraph id="ID7eeb34bcd8f1478286fc8923d1e407b5"><enum>(A)</enum><text>in subsection
(a)(2), by striking <quote>or other agreement, contract, or transaction subject
to paragraphs (1) and (2) of section 5a(g),</quote> and inserting <quote>or
swap,</quote>;</text>
</subparagraph><subparagraph id="ID2fa783f3818e419aba7dc3b742ff3b41"><enum>(B)</enum><text>in subsection
(b), by striking <quote>or other agreement, contract or transaction subject to
paragraphs (1) and (2) of section 5a(g),</quote> and inserting <quote>or
swap,</quote>; and</text>
</subparagraph><subparagraph id="IDab958089e8d8421f8a5bbaa3032521b1"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA94E09903F55477598BFCA840BBFC655" style="OLC">
<subsection id="IDb6f4433a0d5740eea8f79683c8236ef9"><enum>(e)</enum><text>It shall be
unlawful for any person, directly or indirectly, by the use of any means or
instrumentality of interstate commerce, or of the mails, or of any facility of
any registered entity, in or in connection with any order to make, or the
making of, any contract of sale of any commodity for future delivery (or option
on such a contract), or any swap, on a group or index of securities (or any
interest therein or based on the value thereof)—</text>
<paragraph id="ID43a838a0c983427581ce9e25058c0662"><enum>(1)</enum><text>to
employ any device, scheme, or artifice to defraud;</text>
</paragraph><paragraph id="IDa62dfe71451549969b7c25fd9d494e5c"><enum>(2)</enum><text>to
make any untrue statement of a material fact or to omit to state a material
fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading; or</text>
</paragraph><paragraph id="ID787de3ad27454c6199a55ecde776ba66"><enum>(3)</enum><text>to
engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any
person.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDf775b5ad11ae44deba9140b6e2e4fcc5"><enum>(2)</enum><text>Section 4c(a)(1)
of the Commodity Exchange Act (7 U.S.C. 6c(a)(1)) is amended by inserting
<quote>or swap</quote> before <quote>if the transaction is used or may be
used</quote>.</text>
</paragraph><paragraph id="ID2c733451a0664633a49e22f7eb3baf74"><enum>(3)</enum><text>Section 6(c) of
the Commodity Exchange Act (7 U.S.C. 9) is amended in the first sentence by
inserting <quote>or of any swap,</quote> before <quote>or has willfully
made</quote>.</text>
</paragraph><paragraph id="ID0de57a77453d4b999d2cf4798db3b5cc"><enum>(4)</enum><text>Section 6(d) of
the Commodity Exchange Act (7 U.S.C. 13b) is amended in the first sentence, in
the matter preceding the proviso, by inserting <quote>or of any swap,</quote>
before <quote>or otherwise is violating</quote>.</text>
</paragraph><paragraph id="ID8921ef9076eb4343aabb02ba5e985d62"><enum>(5)</enum><text>Section 6c(a) of
the Commodity Exchange Act (7 U.S.C. 13a-1(a)) is amended in the matter
preceding the proviso by inserting <quote>or any swap</quote> after
<quote>commodity for future delivery</quote>.</text>
</paragraph><paragraph id="ID479ec0cad2c1495b9364809950bfdfe5"><enum>(6)</enum><text>Section 9 of the
Commodity Exchange Act (7 U.S.C. 13) is amended—</text>
<subparagraph id="ID1a054ce3aee8463fbacb55a71b1b99e4"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="IDbdd1351cc845484bb2c4fbc6bf5b2fbb"><enum>(i)</enum><text>in
paragraph (2), by inserting <quote>or of any swap,</quote> before <quote>or to
corner</quote>; and</text>
</clause><clause id="IDc286d2e244084944a2bbecdb937b8b17"><enum>(ii)</enum><text>in
paragraph (4), by inserting <quote>swap data repository,</quote> before
<quote>or futures association</quote> and</text>
</clause></subparagraph><subparagraph id="ID9ec7c566c2dd4c5fbd9acc50ce085069"><enum>(B)</enum><text>in subsection
(e)(1)—</text>
<clause id="IDa5e2906aede04066bb746c5659a573ef"><enum>(i)</enum><text>by
inserting <quote>swap data repository,</quote> before <quote>or registered
futures association</quote>; and</text>
</clause><clause id="ID32fab90734e84e969bd75e32378f0c7f"><enum>(ii)</enum><text>by
inserting <quote>, or swaps,</quote> before <quote>on the basis</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="IDf309325c7cfc48389b24124fdc38d728"><enum>(7)</enum><text>Section 9(a) of
the Commodity Exchange Act (7 U.S.C. 13(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id031B0781ED2E4D6BB04F31B0AAE7D58C" style="OLC">
<paragraph id="ID0eae44156348455f8e0882d2dec138eb"><enum>(6)</enum><text>Any person to
abuse the end user clearing exemption under section 2(h)(4), as determined by
the
Commission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDcd9a3a78e5ab42c0bde2268ae9a8d3d9"><enum>(8)</enum><text>Section 8(b) of
the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4D4467AD4E7E4B8287935A7C50E7EC2D" style="OLC">
<paragraph id="ID315726ba8a5441ed8694461fba119631"><enum>(11)</enum><header>Swaps</header>
<subparagraph id="id4F1809BFE61247AFA7E57C6E09074BE9"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), this section shall apply to
any swap dealer, major swap participant, security-based swap dealer, major
security-based swap participant, derivatives clearing organization, swap data
repository, or swap execution facility, regardless of whether the dealer,
participant, organization, repository, or facility 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 amendments made by the Wall Street
Transparency and Accountability Act of 2010.</text>
</subparagraph><subparagraph id="idFF8BD470B94F413ABFB4C33EF45EB4F2"><enum>(B)</enum><header>Limitation</header><text>The
authority described in subparagraph (A) shall be limited by, and exercised in
accordance with, section 4b–1 of the Commodity Exchange
Act.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDeb771e78e77245abb69eecb99b96d5d0"><enum>(9)</enum><text>Section
2(c)(2)(B) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)) is
amended—</text>
<subparagraph id="id194AC2B6E016404B89AE5CF73F05754E"><enum>(A)</enum><text>by striking
<quote>(dd),</quote> each place it appears;</text>
</subparagraph><subparagraph id="idB7CD829D41D042158D6960ED6442F8E6"><enum>(B)</enum><text>in clause (iii),
by inserting <quote>, and accounts or pooled investment vehicles described in
clause (vi),</quote> before <quote>shall be subject to</quote>; and</text>
</subparagraph><subparagraph id="idBBEDA8C9ED22426080FDF294DB1FC51F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB097AB14BF374C4D9A3C48F0CE7C4019" style="OLC">
<clause id="ID51232a09dbda4c59aa980d995f97c846"><enum>(vi)</enum><text>This
Act applies to, and the Commission shall have jurisdiction over, an account or
pooled investment vehicle that is offered for the purpose of trading, or that
trades, any agreement, contract, or transaction in foreign currency described
in clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID024f7f000c714661a7896803803c82b5"><enum>(10)</enum><text>Section
2(c)(2)(C) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(C)) is
amended—</text>
<subparagraph id="idBA079DB16FBD4BECA256C52CDCFCA272"><enum>(A)</enum><text>by striking
<quote>(dd),</quote> each place it appears;</text>
</subparagraph><subparagraph id="id55AE1FFD24EA4CE195EDB7171D5C40F4"><enum>(B)</enum><text>in clause
(ii)(I), by inserting <quote>, and accounts or pooled investment vehicles
described in clause (vii),</quote> before <quote>shall be subject to</quote>;
and</text>
</subparagraph><subparagraph id="id1AE7C64C5CDA400683BC97B556CB3C32"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE9D11B7F18014620B1E77A3698688910" style="OLC">
<clause id="ID0fdc7af3500745a0b4074ecfde3b272e"><enum>(vii)</enum><text>This Act
applies to, and the Commission shall have jurisdiction over, an account or
pooled investment vehicle that is offered for the purpose of trading, or that
trades, any agreement, contract, or transaction in foreign currency described
in clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDfeb7bc7749b540febcc2eea699a87748"><enum>(11)</enum><text>Section
1a(19)(A)(iv)(II) of the Commodity Exchange Act (7 U.S.C. 1a(19)(A)(iv)(II))
(as redesignated by section 721(a)(1)) is amended by inserting before the
semicolon at the end the following: <quote>provided, however, that for purposes
of section 2(c)(2)(B)(vi) and section 2(c)(2)(C)(vii), the term <term>eligible
contract participant</term> shall not include a commodity pool in which any
participant is not otherwise an eligible contract participant</quote>.</text>
</paragraph></subsection></section><section id="idE63697F6644F42DBB70D0F6F820937BE"><enum>742.</enum><header>Retail
commodity transactions</header>
<subsection id="idCF4A3B9E546642E5BFBE85DDA0DEAA21"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 2(c) of the
Commodity Exchange Act (7 U.S.C. 2(c)) is amended—</text>
<paragraph id="id38502D7FAABC400890D99F1EEC169215"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>(to the extent provided in section 5a(g)),
5b, 5d, or 12(e)(2)(B))</quote> and inserting <quote>, 5b, or
12(e)(2)(B))</quote>; and</text>
</paragraph><paragraph id="id1BD1935F7D834E759F994E2B1FA301E0"><enum>(2)</enum><text>in
paragraph (2), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id064D8218C6FF45CA9F283BC100604888" style="OLC">
<subparagraph id="id7DACACA4455D4E64B0B86B042B66DC72"><enum>(D)</enum><header>Retail
commodity transactions</header>
<clause id="id9A55BE03C24B4A30808A03A8DEC8DD4A"><enum>(i)</enum><header>Applicability</header><text>Except
as provided in clause (ii), this subparagraph shall apply to any agreement,
contract, or transaction in any commodity that is—</text>
<subclause id="idE8FCB17F8C0840FBB69D2C132B95E222"><enum>(I)</enum><text>entered into
with, or offered to (even if not entered into with), a person that is not an
eligible contract participant or eligible commercial entity; and</text>
</subclause><subclause id="idCC97EA0FB00D44528BE776BC0FAA1C8C"><enum>(II)</enum><text>entered into, or
offered (even if not entered into), on a leveraged or margined basis, or
financed by the offeror, the counterparty, or a person acting in concert with
the offeror or counterparty on a similar basis.</text>
</subclause></clause><clause id="idA4715D64B2A84E17AF4AD88560B3CC2F"><enum>(ii)</enum><header>Exceptions</header><text>This
subparagraph shall not apply to—</text>
<subclause id="id9096702E894A4BB8A5C3D71E2F9380F4"><enum>(I)</enum><text>an
agreement, contract, or transaction described in paragraph (1) or subparagraphs
(A), (B), or (C), including any agreement, contract, or transaction
specifically excluded from subparagraph (A), (B), or (C);</text>
</subclause><subclause id="id983B66E212A542279E0CBA124CC3124A"><enum>(II)</enum><text>any
security;</text>
</subclause><subclause id="idFE2156261C3E46FBB7FD5631AAF498BC"><enum>(III)</enum><text>a contract of
sale that—</text>
<item id="idFFEB3C77A21F4AA88520FE5D6AB6E8E7"><enum>(aa)</enum><text>results in
actual delivery within 28 days or such other period as the Commission may
determine by rule or regulation based upon the typical commercial practice in
cash or spot markets for the commodity involved; or</text>
</item><item id="idDC8291FE642A42F8B90A171AEFE2B731"><enum>(bb)</enum><text>creates an
enforceable obligation to deliver between a seller and a buyer that have the
ability to deliver and accept delivery, respectively, in connection with the
line of business of the seller and buyer; or</text>
</item></subclause><subclause id="id0E5DBA59727D4D18A3F4F84E81BD34EF"><enum>(IV)</enum><text>an agreement,
contract, or transaction that is listed on a national securities exchange
registered under section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</subclause><subclause id="IDc3573133f9b94f7abb15dc33409e90f7"><enum>(V)</enum><text>an
identified banking product, as defined in section 402(b) of the Legal Certainty
for Bank Products Act of 2000 (7 U.S.C.27(b)).</text>
</subclause></clause><clause id="idC2F1C51C9E8446CB85529E02A1B63045"><enum>(iii)</enum><header>Enforcement</header><text>Sections
4(a), 4(b), and 4b apply to any agreement, contract, or transaction described
in clause (i), as if the agreement, contract, or transaction was a contract of
sale of a commodity for future delivery.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2F06C5D3A3934AE6BEDCEA2C304133C4"><enum>(iv)</enum><header>Eligible
commercial entity</header><text display-inline="yes-display-inline">For
purposes of this subparagraph, an agricultural producer, packer, or handler
shall be considered to be an eligible commercial entity for any agreement,
contract, or transaction for a commodity in connection with the line of
business of the agricultural producer, packer, or handler.</text>
</clause><clause id="id674232EB2972451E9782A53891AA6813"><enum>(v)</enum><header>Actual
delivery</header><text>For purposes of clause (ii)(III), the term <term>actual
delivery</term> does not include delivery to a third party in a financed
transaction in which the commodity is held as
collateral.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDaaf6f50bf58942cbb15f3b4b4fda2e2a"><enum>(b)</enum><header>Gramm-Leach-Bliley
Act</header><text>Section 206(a) of the Gramm-Leach-Bliley Act (Public Law
106–102; 15 U.S.C. 78c note) is amended, in the matter preceding paragraph (1),
by striking <quote>For purposes of</quote> and inserting <quote>Except as
provided in subsection (e), for purposes of</quote>.</text>
</subsection><subsection id="IDbdde78c359364b48a8a52ab1a2f3a43c"><enum>(c)</enum><header>Conforming
amendments relating to retail foreign exchange transactions</header>
<paragraph id="ID4a5dcc6953834285a2aa5fdf035cb96d"><enum>(1)</enum><text>Section
2(c)(2)(B)(i)(II) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)(i)(II)) is
amended—</text>
<subparagraph id="id708A24E7E98140A6844AD26EF58E1EB6"><enum>(A)</enum><text>in item (aa), by
inserting <quote>United States</quote> before <quote>financial
institution</quote>;</text>
</subparagraph><subparagraph id="id25F7EBECA149481591936A389BE5BB18"><enum>(B)</enum><text>by striking items
(dd) and (ff);</text>
</subparagraph><subparagraph id="id3E954846BF3541CCA71D178D73083CBA"><enum>(C)</enum><text>by redesignating
items (ee) and (gg) as items (dd) and (ff), respectively; and</text>
</subparagraph><subparagraph id="idE50363D0C6A146E6AAD175CF2844FE65"><enum>(D)</enum><text>in item (dd) (as
so redesignated), by striking the semicolon and inserting <quote>;
or</quote>.</text>
</subparagraph></paragraph><paragraph id="ID884163e758664150b903f531a81bb6cc"><enum>(2)</enum><text>Section 2(c)(2)
of the Commodity Exchange Act (7 U.S.C. 2(c)(2)) (as amended by subsection
(a)(2)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC95189DF84FE40D89BC42E5832CB64D6" style="OLC">
<subparagraph id="IDc0b2d96e36df42f7939d9430af56b5d6"><enum>(E)</enum><header>Prohibition</header>
<clause id="IDf396bbc9206e466e93f8a0abae2af1f9"><enum>(i)</enum><header>Definition of
Federal regulatory agency</header><text>In this subparagraph, the term
<term>Federal regulatory agency</term> means—</text>
<subclause id="ID30a6a574e06d414ca46bf9716d120d91"><enum>(I)</enum><text>the
Commission;</text>
</subclause><subclause id="ID27f65ec273b24d9aa7d5e544d850afd7"><enum>(II)</enum><text>the Securities
and Exchange Commission;</text>
</subclause><subclause id="IDf90e8b2d71a141fa909b42d7f37dc2f4"><enum>(III)</enum><text>an appropriate
Federal banking agency;</text>
</subclause><subclause id="ID178ae9dfbf314881887864324c42cfba"><enum>(IV)</enum><text>the National
Credit Union Association; and</text>
</subclause><subclause id="ID63d188da675f4aca917145f55d4c3e25"><enum>(V)</enum><text>the Farm Credit
Administration.</text>
</subclause></clause><clause id="id7CEED7BE81504851875CF7F8FFA20DEC"><enum>(ii)</enum><header>Prohibition</header><text>A
person described in subparagraph (B)(i)(II) for which there is a Federal
regulatory agency shall not offer to, or enter into with, a person that is not
an eligible contract participant, any agreement, contract, or transaction in
foreign currency described in subparagraph (B)(i)(I) except pursuant to a rule
or regulation of a Federal regulatory agency allowing the agreement, contract,
or transaction under such terms and conditions as the Federal regulatory agency
shall prescribe.</text>
</clause><clause id="ID46404cb302874f6a9d6849a0c1c88780"><enum>(iii)</enum><header>Requirements
of rules and regulations</header>
<subclause id="idE59CA13CC9CD429BA0DF3E84EDDF9447"><enum>(I)</enum><header>In
general</header><text>The rules and regulations described in clause (ii) shall
prescribe appropriate requirements with respect to—</text>
<item id="ID3f7602bc649b4f479c21bac909c1e81b"><enum>(aa)</enum><text>disclosure;</text>
</item><item id="ID98ccc67f0e93409f88372b328e024d2f"><enum>(bb)</enum><text>recordkeeping;</text>
</item><item id="ID0b4de3e95adf4167afeb96e8a41835e7"><enum>(cc)</enum><text>capital and
margin;</text>
</item><item id="IDf2480857db31472b83c4a6644f588df8"><enum>(dd)</enum><text>reporting;</text>
</item><item id="IDfe9dffd105ff46ea81a19879f96a20eb"><enum>(ee)</enum><text>business
conduct;</text>
</item><item id="ID333a3e6030d44fcc8f3d36475a6c0483"><enum>(ff)</enum><text>documentation;
and</text>
</item><item id="IDa87e809e73a648808d069c455e9d9b94"><enum>(gg)</enum><text>such
other standards or requirements as the Federal regulatory agency shall
determine to be necessary.</text>
</item></subclause><subclause id="ID196c256ef73c4b519fea9ce0b1ece95f"><enum>(II)</enum><header>Treatment</header><text>The
rules or regulations described in clause (ii) shall treat all agreements,
contracts, and transactions in foreign currency described in subparagraph
(B)(i)(I), and all agreements, contracts, and transactions in foreign currency
that are functionally or economically similar to agreements, contracts, or
transactions described in subparagraph (B)(i)(I),
similarly.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDb09ae8afc45e44a3a5d214ede878ef17"><enum>743.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by the amendments made by this subtitle, the amendments made by this
subtitle do not divest any appropriate Federal banking agency, the Commodity
Futures Trading Commission, the Securities and Exchange Commission, or other
Federal or State agency of any authority derived from any other applicable
law.</text>
</section><section id="id7FA8AD7A69DA4372B274F434B46CFF4D"><enum>744.</enum><header>Restitution
remedies</header><text display-inline="no-display-inline">Section 6c(d) of the
Commodity Exchange Act (7 U.S.C. 13a–1(d)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id1793A4B2DFD54CEF97FED5344B6A1CEC" style="OLC">
<paragraph id="idBCD7013945724D7786FDE251821246A9"><enum>(3)</enum><header>Equitable
remedies</header><text>In any action brought under this section, the Commission
may seek, and the court shall have jurisdiction to impose, on a proper showing,
on any person found in the action to have committed any violation, equitable
remedies including—</text>
<subparagraph id="id5321F39CC18346AC96D3577B629D6C2A"><enum>(A)</enum><text>restitution to
persons who have sustained losses proximately caused by such violation (in the
amount of such losses); and</text>
</subparagraph><subparagraph id="id23892080F32E49ED98AFD86174928A64"><enum>(B)</enum><text>disgorgement of
gains received in connection with such
violation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID3e121d2098f14413b1c17bd28f73d41d"><enum>745.</enum><header>Enhanced
compliance by registered entities</header>
<subsection id="id4A857A164FA94318A827BF3189984390"><enum>(a)</enum><header>Core principles
for contract markets</header><text display-inline="yes-display-inline">Section
5(d) of the Commodity Exchange Act (7 U.S.C. 7(d)) (as amended by section
735(b)) is amended by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idD6C8386D5D954884AAB727020EDC39FB" style="OLC">
<paragraph id="ID71a427419fad4dd1a2886f115402b3fb"><enum>(1)</enum><header>Designation</header>
<subparagraph id="id5801EF5DA7814BCBA5284FC00BAE561F"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="id758831B04C14471689F8BF16705C62DB"><enum>(i)</enum><text>the
core principles described in this subsection; and</text>
</clause><clause id="id1FFF0D779C114F81BD41EF0ABD6D703E"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation pursuant to
section 8a(5).</text>
</clause></subparagraph><subparagraph id="id77CFB8E6BF284317B4EE44F93F093198"><enum>(B)</enum><header>Discretion of
board of trade</header><text>Unless the Commission determines otherwise by rule
or regulation, the board of trade shall have reasonable discretion in
establishing the manner by which the board of trade complies with each core
principle.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDddbc8b0f7dbd4bac8cda83d0b151b0ed"><enum>(b)</enum><header>Core
principles</header><text>Section 5b(c)(2) of the Commodity Exchange Act (7
U.S.C. 7a–1(c)(2)) (as amended by section 725(c)) is amended by striking
subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id0B4544C445F341E8BDA9CA28EBA16CF1" style="OLC">
<subparagraph id="ID466c42a21aab478289d75ec070085c68"><enum>(A)</enum><header>Registration</header>
<clause id="idFFDCA6A35DCF48CD899A27A52812266A"><enum>(i)</enum><header>In
general</header><text>To be registered and to maintain registration as a
derivatives clearing organization, a derivatives clearing organization shall
comply with—</text>
<subclause id="idB4DF3F3E022D42F3A2C00CCAD11CB4BE"><enum>(I)</enum><text>the core
principles described in this paragraph; and</text>
</subclause><subclause id="idB1684F70557249CA9368499275D2D9CF"><enum>(II)</enum><text>any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</subclause></clause><clause id="id33081EAA763F4103BD9C470F8C40C8FD"><enum>(ii)</enum><header>Discretion of
Commission</header><text>Unless the Commission determines otherwise by rule or
regulation, a derivatives clearing organization shall have reasonable
discretion in establishing the manner by which the derivatives clearing
organization complies with each core
principle.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0fa04f5f9e70445fba349993a4f5f9f7"><enum>(c)</enum><header>Effect of
interpretation</header><text>Section 5c(a) of the Commodity Exchange Act (7
U.S.C. 7a–2(a)) is amended by striking paragraph (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idA6FFEADEFB5642419664FAFAAD6B7714" style="OLC">
<paragraph id="ID50b3823777c341d1a6991480384a3fe7"><enum>(2)</enum><header>Effect of
interpretation</header><text>An interpretation issued under paragraph (1) may
provide the exclusive means for complying with each section described in
paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDdc99ecd725274552be21c295e41e63a1"><enum>(d)</enum><header>New contracts,
new rules, and rule amendments</header>
<paragraph commented="no" id="ID68330e640d084926bd6d4940c2b24833"><enum>(1)</enum><header>In
general</header><text>A registered entity may elect to list for trading or
accept for clearing any new contract, or other instrument, or may elect to
approve and implement any new rule or rule amendment, by providing to the
Commission (and the Secretary of the Treasury, in the case of a contract of
sale of a government security for future delivery (or option on such a
contract) or a rule or rule amendment specifically related to such a contract)
a written certification that the new contract or instrument or clearing of the
new contract or instrument, new rule, or rule amendment complies with this Act
(including regulations under this Act).</text>
</paragraph><paragraph commented="no" id="idA40BB77D53454DC390B0C7114634A04C"><enum>(2)</enum><header>Rule
review</header><text>The new rule or rule amendment described in paragraph (1)
shall become effective, pursuant to the certification of the registered entity,
on the date that is 10 business days after the date on which the Commission
receives the certification (or such shorter period as determined by the
Commission by rule or regulation) unless the Commission notifies the registered
entity within such time that it is staying the certification because there
exist novel or complex issues that require additional time to analyze, an
inadequate explanation by the submitting registered entity, or a potential
inconsistency with this Act (including regulations under this Act).</text>
</paragraph><paragraph commented="no" id="ID08d09a5bfc204c60a7c9a0b741c8a383"><enum>(3)</enum><header>Stay of
certification for rules</header>
<subparagraph commented="no" id="id84757F65317A45A08702DF22AFB62883"><enum>(A)</enum><text>A notification by
the Commission pursuant to paragraph (2) shall stay the certification of the
new rule or rule amendment for up to an additional 90 days from the date of the
notification.</text>
</subparagraph><subparagraph commented="no" id="idB4CF379FFA99401BAC952221EA3497A6"><enum>(B)</enum><text>A rule or rule
amendment subject to a stay pursuant to subparagraph (A) shall become
effective, pursuant to the certification of the registered entity, at the
expiration of the period described in subparagraph (A) unless the
Commission—</text>
<clause commented="no" id="idD40FC147337F48A788C353838BBF052B"><enum>(i)</enum><text>withdraws the
stay prior to that time; or</text>
</clause><clause commented="no" id="id1B4E199C70574901B6878CE7B94F619F"><enum>(ii)</enum><text>notifies the
registered entity during such period that it objects to the proposed
certification on the grounds that it is inconsistent with this Act (including
regulations under this Act).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID03d19e8aaf01404593b338ac86baf18c"><enum>(4)</enum><header>Prior
approval</header>
<subparagraph commented="no" id="ID74f9f59a87b64cee891e6eb66e504baf"><enum>(A)</enum><header>In
general</header><text>A registered entity may request that the Commission grant
prior approval to any new contract or other instrument, new rule, or rule
amendment.</text>
</subparagraph><subparagraph commented="no" id="ID7dd2cfb72768455cbbd7ca7cbc18cbf9"><enum>(B)</enum><header>Prior approval
required</header><text>Notwithstanding any other provision of this section, a
designated contract market shall submit to the Commission for prior approval
each rule amendment that materially changes the terms and conditions, as
determined by the Commission, in any contract of sale for future delivery of a
commodity specifically enumerated in section 1a(10) (or any option thereon)
traded through its facilities if the rule amendment applies to contracts and
delivery months which have already been listed for trading and have open
interest.</text>
</subparagraph><subparagraph commented="no" id="ID3f0ccca059a74e82a8fd87d71e546173"><enum>(C)</enum><header>Deadline</header><text>If
prior approval is requested under subparagraph (A), the Commission shall take
final action on the request not later than 90 days after submission of the
request, unless the person submitting the request agrees to an extension of the
time limitation established under this subparagraph.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID3d148e18a7c34b15bbed37d1fcd1f589"><enum>(5)</enum><header>Approval</header>
<subparagraph commented="no" id="ID6fd48bd8b41c4c4898dc94fbc4643d14"><enum>(A)</enum><header>Rules</header><text>The
Commission shall approve a new rule, or rule amendment, of a registered entity
unless the Commission finds that the new rule, or rule amendment, is
inconsistent with this subtitle (including regulations).</text>
</subparagraph><subparagraph commented="no" id="ID7921e368bc334dcea78f6170b3fff152"><enum>(B)</enum><header>Contracts and
instruments</header><text>The Commission shall approve a new contract or other
instrument unless the Commission finds that the new contract or other
instrument would violate this subtitle (including regulations).</text>
</subparagraph><subparagraph commented="no" id="IDbd23d8763e23449a8a36f4066844f211"><enum>(C)</enum><header>Special rule
for review and approval of event contracts and swaps contracts</header>
<clause commented="no" id="IDb566a47361b0413fab91f5aec99de68d"><enum>(i)</enum><header>Event
contracts</header><text>In connection with the listing of agreements,
contracts, transactions, or swaps in excluded commodities that are based upon
the occurrence, extent of an occurrence, or contingency (other than a change in
the price, rate, value, or levels of a commodity described in section
1a(2)(i)), by a designated contract market or swap execution facility, the
Commission may determine that such agreements, contracts, or transactions are
contrary to the public interest if the agreements, contracts, or transactions
involve—</text>
<subclause commented="no" id="id76C4037493DA416D991D951C1A3E67C3"><enum>(I)</enum><text>activity that is
unlawful under any Federal or State law;</text>
</subclause><subclause commented="no" id="id0CCD1F6889394CADB2FB746ACE8E873D"><enum>(II)</enum><text>terrorism;</text>
</subclause><subclause commented="no" id="id9593F2A2ED7E46C8A2645541BC427C49"><enum>(III)</enum><text>assassination;</text>
</subclause><subclause commented="no" id="id8D886345FBBC44FFAD6390D4150321D8"><enum>(IV)</enum><text>war;</text>
</subclause><subclause commented="no" id="id9DD17461D981467294FA1501F5D37774"><enum>(V)</enum><text>gaming; or</text>
</subclause><subclause commented="no" id="id0CB5811845AC4BF6A5FE1A8C6457BDCA"><enum>(VI)</enum><text>other similar
activity determined by the Commission, by rule or regulation, to be contrary to
the public interest.</text>
</subclause></clause><clause commented="no" id="id3FBB8ACE249B46448F24723E953E5A17"><enum>(ii)</enum><header>Prohibition</header><text>No
agreement, contract, or transaction determined by the Commission to be contrary
to the public interest under clause (i) may be listed or made available for
clearing or trading on or through a registered entity.</text>
</clause><clause commented="no" id="ID69790f9629204e17841e23c66baa1106"><enum>(iii)</enum><header>Swaps
contracts</header>
<subclause commented="no" id="idBE95CE957BFC42778E2C4B4C7AC3C1C7"><enum>(I)</enum><header>In
general</header><text>In connection with the listing of a swap for clearing by
a derivatives clearing organization, the Commission shall determine, upon
request or on its own motion, the initial eligibility, or the continuing
qualification, of a derivatives clearing organization to clear such a swap
under those criteria, conditions, or rules that the Commission, in its
discretion, determines.</text>
</subclause><subclause id="ID06cceb8c51014ab9af3d28511cb091ee"><enum>(II)</enum><header>Requirements</header><text>Any
such criteria, conditions, or rules shall consider—</text>
<item id="ID22a742d43bf843baacf9f5e331f321ca"><enum>(aa)</enum><text>the
financial integrity of the derivatives clearing organization; and</text>
</item><item id="ID181eb562f53a454c89a71c39ec02a8af"><enum>(bb)</enum><text>any
other factors which the Commission determines may be appropriate.</text>
</item></subclause></clause><clause commented="no" id="IDfe3d1980671840738e50711ac5909779"><enum>(iv)</enum><header>Deadline</header><text>The
Commission shall take final action under clauses (i) and (ii) in not later than
90 days from the commencement of its review unless the party seeking to offer
the contract or swap agrees to an extension of this time limitation.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDf5dc1924ae444312bbd1a9878c96de6b"><enum>(e)</enum><header>Violation of
core principles</header><text>Section 5c of the Commodity Exchange Act (7
U.S.C. 7a–2) is amended by striking subsection (d).</text>
</subsection></section><section id="IDe3a7e9ab145b407abd7e01978e77aac0"><enum>746.</enum><header>Insider
trading</header><text display-inline="no-display-inline">Section 4c(a) of the
Commodity Exchange Act (7 U.S.C. 6c(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id476B1B5BCD2F44F391BCFCEF213352C0" style="OLC">
<paragraph id="ID53a8d747fd0844d0b0ed59a3f30fd20e"><enum>(3)</enum><header>Contract of
sale</header><text>It shall be unlawful for any employee or agent of any
department or agency of the Federal Government who, by virtue of the employment
or position of the employee or agent, acquires information that may affect or
tend to affect the price of any commodity in interstate commerce, or for future
delivery, or any swap, and which information has not been disseminated by the
department or agency of the Federal Government holding or creating the
information in a manner which makes it generally available to the trading
public, or disclosed in a criminal, civil, or administrative hearing, or in a
congressional, administrative, or Government Accountability Office report,
hearing, audit, or investigation, to use the information in his personal
capacity and for personal gain to enter into, or offer to enter into—</text>
<subparagraph id="IDcc493354062a4b83ae6204472e80b31b"><enum>(A)</enum><text>a contract of
sale of a commodity for future delivery (or option on such a contract);</text>
</subparagraph><subparagraph id="ID0a9174f13daf484e9ce31f98738c2965"><enum>(B)</enum><text>an option (other
than an option executed or traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</subparagraph><subparagraph id="IDe3637b7397324be0a5ddce46b7a3d33a"><enum>(C)</enum><text>a swap.</text>
</subparagraph></paragraph><paragraph id="IDc49c944c3210493eaa662d9082f624e5"><enum>(4)</enum><header>Nonpublic
information</header>
<subparagraph id="IDf2bd2a2a5a934d728edb0928d0190cca"><enum>(A)</enum><header>Imparting of
nonpublic information</header><text>It shall be unlawful for any employee or
agent of any department or agency of the Federal Government who, by virtue of
the employment or position of the employee or agent, acquires information that
may affect or tend to affect the price of any commodity in interstate commerce,
or for future delivery, or any swap, and which information has not been
disseminated by the department or agency of the Federal Government holding or
creating the information in a manner which makes it generally available to the
trading public, or disclosed in a criminal, civil, or administrative hearing,
or in a congressional, administrative, or Government Accountability Office
report, hearing, audit, or investigation, to impart the information in his
personal capacity and for personal gain with intent to assist another person,
directly or indirectly, to use the information to enter into, or offer to enter
into—</text>
<clause id="ID19f750c9ea2e4ccfb7802c02ae8d1a76"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="ID2e149eded64b478786e19b937e4c19bc"><enum>(ii)</enum><text>an
option (other than an option executed or traded on a national securities
exchange registered pursuant to section 6(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78f(a)); or</text>
</clause><clause id="ID66abb098d1bc417ea1d67736eef98d44"><enum>(iii)</enum><text>a
swap.</text>
</clause></subparagraph><subparagraph id="id98A788CC9B1643C7B399B6864B60056F"><enum>(B)</enum><header>Knowing
use</header><text>It shall be unlawful for any person who receives information
imparted by any employee or agent of any department or agency of the Federal
Government as described in subparagraph (A) to knowingly use such information
to enter into, or offer to enter into—</text>
<clause id="idA950CDF1693549429A0E91CE1183BE48"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="id553C1929ED254B109AB96EE4A9EAE2AE"><enum>(ii)</enum><text>an
option (other than an option executed or traded on a national securities
exchange registered pursuant to section 6(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78f(a)); or</text>
</clause><clause id="idF3BD6BA4B32342AC83063D252CD04A9C"><enum>(iii)</enum><text>a
swap.</text>
</clause></subparagraph><subparagraph id="ID689a16ab1b9f4a499adfc0338dae6fa7"><enum>(C)</enum><header>Theft of
nonpublic information</header><text>It shall be unlawful for any person to
steal, convert, or misappropriate, by any means whatsoever, information held or
created by any department or agency of the Federal Government that may affect
or tend to affect the price of any commodity in interstate commerce, or for
future delivery, or any swap, where such person knows, or acts in reckless
disregard of the fact, that such information has not been disseminated by the
department or agency of the Federal Government holding or creating the
information in a manner which makes it generally available to the trading
public, or disclosed in a criminal, civil, or administrative hearing, or in a
congressional, administrative, or Government Accountability Office report,
hearing, audit, or investigation, and to use such information, or to impart
such information with the intent to assist another person, directly or
indirectly, to use such information to enter into, or offer to enter
into—</text>
<clause id="IDa08b27f772be485fae9e8731f3003a3a"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="ID63e40cd50a124499b1aa4a4a476577c3"><enum>(ii)</enum><text>an
option (other than an option executed or traded on a national securities
exchange registered pursuant to section 6(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78f(a)); or</text>
</clause><clause id="IDb24b7573644b4d9180ebb8519f88dad5"><enum>(iii)</enum><text>a
swap.</text>
<continuation-text continuation-text-level="clause"><italic>Provided</italic>, however, that
nothing in this subparagraph shall preclude a person that has provided
information concerning, or generated by, the person, its operations or
activities, to any employee or agent of any department or agency of the Federal
Government, voluntarily or as required by law, from using such information to
enter into, or offer to enter into, a contract of sale, option, or swap
described in clauses (i), (ii), or
(iii).</continuation-text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idDAB6DE83DCA141779805D3035BB6BCF6"><enum>747.</enum><header>Antidisruptive
practices authority</header><text display-inline="no-display-inline">Section
4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) (as amended by section
746) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6AF88946332D4452893DF0811B90F428" style="OLC">
<paragraph id="IDa52b4477917348f6ab2035e30c4d365b"><enum>(5)</enum><header>Disruptive
practices</header><text>It shall be unlawful for any person to engage in any
trading, practice, or conduct on or subject to the rules of a registered entity
that—</text>
<subparagraph id="ID0c4cf0524b024621a4bdce7798cb384b"><enum>(A)</enum><text>violates bids or
offers;</text>
</subparagraph><subparagraph id="IDb1765b92d6de486da6360e3da303ff02"><enum>(B)</enum><text>demonstrates
intentional or reckless disregard for the orderly execution of transactions
during the closing period; or</text>
</subparagraph><subparagraph id="ID2b6eb8b0e7bb4b3289dae71208c61615"><enum>(C)</enum><text>is, is of the
character of, or is commonly known to the trade as, <quote>spoofing</quote>
(bidding or offering with the intent to cancel the bid or offer before
execution).</text>
</subparagraph></paragraph><paragraph id="ID2219cbc296204025a746c427d41fa651"><enum>(6)</enum><header>Rulemaking
authority</header><text>The Commission may make and promulgate such rules and
regulations as, in the judgment of the Commission, are reasonably necessary to
prohibit the trading practices described in paragraph (5) and any other trading
practice that is disruptive of fair and equitable trading.</text>
</paragraph><paragraph id="ID88164ea307bf46fb9b122931f8430afc"><enum>(7)</enum><header>Use of swaps to
defraud</header><text>It shall be unlawful for any person to enter into a swap
knowing, or acting in reckless disregard of the fact, that its counterparty
will use the swap as part of a device, scheme, or artifice to defraud any third
party.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="IDa5de230f929a47758920b64a994b6ae2"><enum>748.</enum><header>Commodity
whistleblower incentives and protection</header><text display-inline="no-display-inline">The <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C. 1 et seq.) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC5057BDBE8FF41E980B36FDE57AEDF61" style="OLC">
<section commented="no" id="id4C74B449CF7F4D0E85CE59D7756AB056"><enum>23.</enum><header>Commodity
whistleblower incentives and protection</header>
<subsection id="ID9d1e00f9888242f3a79110cbecadcd1a"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDf68df9567bf64a02a57c464ba0fdc74c"><enum>(1)</enum><header>Covered
judicial or administrative action</header><text>The term <term>covered judicial
or administrative action</term> means any judicial or administrative action
brought by the Commission under this Act that results in monetary sanctions
exceeding $1,000,000.</text>
</paragraph><paragraph id="IDbdbf4d67e8eb4221965796ff0032fbd2"><enum>(2)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Commodity Futures Trading Commission Customer
Protection Fund established under subsection (g).</text>
</paragraph><paragraph id="IDe9ad38e78d13406998ffb491ebbb23e3"><enum>(3)</enum><header>Monetary
sanctions</header><text>The term <term>monetary sanctions</term>, when used
with respect to any judicial or administrative action means—</text>
<subparagraph id="ID14b83f20dbd64b9584bf07c838dc04a5"><enum>(A)</enum><text>any monies,
including penalties, disgorgement, restitution, and interest ordered to be
paid; and</text>
</subparagraph><subparagraph id="IDe42e8363a6f64ac38338783795e73b07"><enum>(B)</enum><text>any monies
deposited into a disgorgement fund or other fund pursuant to section 308(b) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(b)), as a result of such action
or any settlement of such action.</text>
</subparagraph></paragraph><paragraph id="ID0c16d1047eff412bb87c3afc38c850bc"><enum>(4)</enum><header>Original
information</header><text>The term <term>original information</term> means
information that—</text>
<subparagraph id="ID1c8cf3da69334d04a384d889001b12b9"><enum>(A)</enum><text>is derived from
the independent knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph id="ID0ff14f6d184644838c8c7131488604e3"><enum>(B)</enum><text>is not known to
the Commission from any other source, unless the whistleblower is the original
source of the information; and</text>
</subparagraph><subparagraph id="ID6955ada7d2ab4f0c8c848ac0bc6ae37a"><enum>(C)</enum><text>is not
exclusively derived from an allegation made in a judicial or administrative
hearing, in a governmental report, hearing, audit, or investigation, or from
the news media, unless the whistleblower is a source of the information.</text>
</subparagraph></paragraph><paragraph id="ID53daf223e11a479bad01c8c693c58e7d"><enum>(5)</enum><header>Related
action</header><text>The term <term>related action</term>, when used with
respect to any judicial or administrative action brought by the Commission
under this Act, means any judicial or administrative action brought by an
entity described in subclauses (i) through (vi) of subsection (g)(2)(B) that is
based upon the original information provided by a whistleblower pursuant to
subsection (a) that led to the successful enforcement of the Commission
action.</text>
</paragraph><paragraph id="ID49b20419e20f48abb284f5fdc9fa0548"><enum>(6)</enum><header>Successful
resolution</header><text>The term <term>successful resolution</term>, when used
with respect to any judicial or administrative action brought by the Commission
under this Act, includes any settlement of such action.</text>
</paragraph><paragraph id="IDd52e486c96564d639ced9b337266bf20"><enum>(7)</enum><header>Whistleblower</header><text>The
term <term>whistleblower</term> means any individual, or 2 or more individuals
acting jointly, who provides information relating to a violation of this Act to
the Commission, in a manner established by rule or regulation, by the
Commission.</text>
</paragraph></subsection><subsection id="IDdcc6ecb417d24b918112b44853e829e3"><enum>(b)</enum><header>Awards</header>
<paragraph id="ID28feb4aceda14f3b9bd5c8457730b96f"><enum>(1)</enum><header>In
general</header><text>In any covered judicial or administrative action, or
related action, the Commission, under regulations prescribed by the Commission
and subject to subsection (c), shall pay an award or awards to 1 or more
whistleblowers who voluntarily provided original information to the Commission
that led to the successful enforcement of the covered judicial or
administrative action, or related action, in an aggregate amount equal
to—</text>
<subparagraph id="IDaa2403a41fda4be5a3a8e94bd4b1ada4"><enum>(A)</enum><text>not less than 10
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions; and</text>
</subparagraph><subparagraph id="ID14acfd6d7c2a401aa433577a9b4a8810"><enum>(B)</enum><text>not more than 30
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions.</text>
</subparagraph></paragraph><paragraph id="IDd2994b09832b43f5a1879157e9890b75"><enum>(2)</enum><header>Payment of
awards</header><text>Any amount paid under paragraph (1) shall be paid from the
Fund.</text>
</paragraph></subsection><subsection id="IDb0f3e1ad5f65457fbd5d614c78150d50"><enum>(c)</enum><header>Determination
of amount of award; denial of award</header>
<paragraph id="ID493bc0882c294fd4a1768802dec81c1e"><enum>(1)</enum><header>Determination
of amount of award</header>
<subparagraph id="ID793eb2c466284dab92b00d383e16ac1f"><enum>(A)</enum><header>Discretion</header><text>The
determination of the amount of an award made under subsection (b) shall be in
the discretion of the Commission.</text>
</subparagraph><subparagraph id="ID4ea5c177f6b843e28f8ccfc0364d4f94"><enum>(B)</enum><header>Criteria</header><text>In
determining the amount of an award made under subsection (b), the Commission
shall take into account—</text>
<clause id="IDb317f3692b49487db820298011383ead"><enum>(i)</enum><text>the
significance of the information provided by the whistleblower to the success of
the covered judicial or administrative action;</text>
</clause><clause id="ID19c74f190b014a5fa3136340425a797e"><enum>(ii)</enum><text>the
degree of assistance provided by the whistleblower and any legal representative
of the whistleblower in a covered judicial or administrative action;</text>
</clause><clause id="ID0fa23ece6dd14156bfa5834b54191934"><enum>(iii)</enum><text>the
programmatic interest of the Commission in deterring violations of the Act
(including regulations under the Act) by making awards to whistleblowers who
provide information that leads to the successful enforcement of such laws;
and</text>
</clause><clause id="IDbc21099f25af4c8cad2ba126b7e2a105"><enum>(iv)</enum><text>such
additional relevant factors as the Commission may establish by rule or
regulation.</text>
</clause></subparagraph></paragraph><paragraph id="IDacc56f93a9d343518a5d121d2df2ab0f"><enum>(2)</enum><header>Denial of
award</header><text>No award under subsection (b) shall be made—</text>
<subparagraph id="IDb63a60aa60a74773998a3674149edaf7"><enum>(A)</enum><text>to any
whistleblower who is, or was at the time the whistleblower acquired the
original information submitted to the Commission, a member, officer, or
employee of—</text>
<clause id="IDe13e38679f6b4737b0f9d7efa4df5637"><enum>(i)</enum><text>a
appropriate regulatory agency;</text>
</clause><clause id="IDf4829a2518b249fbbb44bc5e922e1647"><enum>(ii)</enum><text>the
Department of Justice;</text>
</clause><clause id="IDdb0e7bce895a49938dd420592d713fb9"><enum>(iii)</enum><text>a
registered entity;</text>
</clause><clause id="IDbb7797af59f34e5084eccebf32e371e6"><enum>(iv)</enum><text>a
registered futures association; or</text>
</clause><clause id="ID626ca2e4121b401abc71895a7cb959f2"><enum>(v)</enum><text>a
self-regulatory organization as defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)); or</text>
</clause><clause id="IDb098185ae4ee450c975eee13f50f9ee1"><enum>(vi)</enum><text>a
law enforcement organization;</text>
</clause></subparagraph><subparagraph id="ID6c4694a00db44dd8acdef3bf71af04f9"><enum>(B)</enum><text>to any
whistleblower who is convicted of a criminal violation related to the judicial
or administrative action for which the whistleblower otherwise could receive an
award under this section;</text>
</subparagraph><subparagraph id="ID91fba354c63140eb92c248c2b69b609c"><enum>(C)</enum><text>to any
whistleblower who submits information to the Commission that is based on the
facts underlying the covered action submitted previously by another
whistleblower;</text>
</subparagraph><subparagraph id="ID01a0121e31a0487181b4e5b8d7f1323b"><enum>(D)</enum><text>to any
whistleblower who fails to submit information to the Commission in such form as
the Commission may, by rule or regulation, require.</text>
</subparagraph></paragraph></subsection><subsection id="ID119e01c53e2c400e90663bd3eee9d205"><enum>(d)</enum><header>Representation</header>
<paragraph id="ID1fd782a27b3748b6898660ef470ccc5a"><enum>(1)</enum><header>Permitted
representation</header><text>Any whistleblower who makes a claim for an award
under subsection (b) may be represented by counsel.</text>
</paragraph><paragraph id="ID8b5b7317d4504f0491779fb668204f9d"><enum>(2)</enum><header>Required
representation</header>
<subparagraph id="IDfc75aededfee4e5481708232217e501c"><enum>(A)</enum><header>In
general</header><text>Any whistleblower who anonymously makes a claim for an
award under subsection (b) shall be represented by counsel if the whistleblower
submits the information upon which the claim is based.</text>
</subparagraph><subparagraph id="IDc352bb0d1dd34782833c47879b1d882e"><enum>(B)</enum><header>Disclosure of
identity</header><text>Prior to the payment of an award, a whistleblower shall
disclose the identity of the whistleblower and provide such other information
as the Commission may require, directly or through counsel for the
whistleblower.</text>
</subparagraph></paragraph></subsection><subsection id="ID966b261081cd4a9cba985997d8fc7aa4"><enum>(e)</enum><header>No contract
necessary</header><text>No contract with the Commission is necessary for any
whistleblower to receive an award under subsection (b), unless otherwise
required by the Commission, by rule or regulation.</text>
</subsection><subsection id="ID50c324b479134d049e32c2454ed5385c"><enum>(f)</enum><header>Appeals</header>
<paragraph id="id9B8522C0CEF44C93906893C9243CAC32"><enum>(1)</enum><header>In
general</header><text>Any determination made under this section, including
whether, to whom, or in what amount to make awards, shall be in the discretion
of the Commission.</text>
</paragraph><paragraph id="id0B168173ADE34C2B8FA0B3B3D8A2503A"><enum>(2)</enum><header>Appeals</header><text>Any
determination described in paragraph (1) may be appealed to the appropriate
court of appeals of the United States not more than 30 days after the
determination is issued by the Commission.</text>
</paragraph><paragraph id="idB38F55ED55F049CAB20E85E4EE747D99"><enum>(3)</enum><header>Review</header><text>The
court shall review the determination made by the Commission in accordance with
section 7064 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="IDb68aa06d2f564b4189b9c408a669cf17"><enum>(g)</enum><header>Commodity
futures trading commission customer protection fund</header>
<paragraph id="ID46bb965d65c1425cb821c3340014fc3c"><enum>(1)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a revolving fund to be
known as the <term>Commodity Futures Trading Commission Customer Protection
Fund</term>.</text>
</paragraph><paragraph id="ID36557285a9b342a3b4ec670000926524"><enum>(2)</enum><header>Use of
fund</header><text>The Fund shall be available to the Commission, without
further appropriation or fiscal year limitation, for—</text>
<subparagraph id="ID509686e3b1284cd4b5350814944f524a"><enum>(A)</enum><text>the payment of
awards to whistleblowers as provided in subsection (a); and</text>
</subparagraph><subparagraph id="IDd04cd4a7350a484483ac0b1ba249e05f"><enum>(B)</enum><text>the funding of
customer education initiatives designed to help customers protect themselves
against fraud or other violations of this Act, or the rules and regulations
thereunder.</text>
</subparagraph></paragraph><paragraph id="IDcf4fddd1bf7748fbbc9066647887dcbb"><enum>(3)</enum><header>Deposits and
credits</header><text>There shall be deposited into or credited to the
Fund—</text>
<subparagraph id="IDecc641201c4f461b8c8cf7e76edb06f8"><enum>(A)</enum><text>any monetary
judgment collected by the Commission in any judicial or administrative action
brought by the Commission under this Act, that is not otherwise distributed to
victims of a violation of this Act or the rules and regulations thereunder
underlying such action, unless the balance of the Fund at the time the monetary
judgment is collected exceeds $100,000,000; and</text>
</subparagraph><subparagraph id="IDd078dea5e9874b288dcde4852e4ede2a"><enum>(B)</enum><text>all income from
investments made under paragraph (4).</text>
</subparagraph></paragraph><paragraph id="ID22010f4335f74576a7eec2116db9a59a"><enum>(4)</enum><header>Investments</header>
<subparagraph id="ID7c8b34933559497188dfaea8764ac2c2"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Commission may request the Secretary of the
Treasury to invest the portion of the Fund that is not, in the Commission’s
judgment, required to meet the current needs of the Fund.</text>
</subparagraph><subparagraph id="ID81a77690dcf64ba09622b7115c079640"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary of the
Treasury in obligations of the United States or obligations that are guaranteed
as to principal and interest by the United States, with maturities suitable to
the needs of the Fund as determined by the Commission.</text>
</subparagraph><subparagraph id="IDb5655f5f03f1444c86fcdaf6025963ab"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Fund shall be credited to, and
form a part of, the Fund.</text>
</subparagraph></paragraph><paragraph id="IDbc8ca8b06dc44c4eba7bc87c33400987"><enum>(5)</enum><header>Reports to
congress</header><text>Not later than October 30 of each year, the Commission
shall transmit to the Committee on Agriculture, Nutrition, and Forestry of the
Senate, and the Committee on Agriculture of the House of Representatives a
report on—</text>
<subparagraph id="IDd9ff3e63c6c647c79e6136d3ea79fef0"><enum>(A)</enum><text>the Commission’s
whistleblower award program under this section, including a description of the
number of awards granted and the types of cases in which awards were granted
during the preceding fiscal year;</text>
</subparagraph><subparagraph id="ID47ddd966fe6b49d9afea42c411a92e4b"><enum>(B)</enum><text>customer
education initiatives described in paragraph (2)(B) that were funded by the
Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="ID3c5a72cfeccb4b03977285f5034f327a"><enum>(C)</enum><text>the balance of
the Fund at the beginning of the preceding fiscal year;</text>
</subparagraph><subparagraph id="ID7ba5117400ed4f08a6be9aa81d2e5693"><enum>(D)</enum><text>the amounts
deposited into or credited to the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="ID66eaa5b29bf64e98a4d81afbd96f0bba"><enum>(E)</enum><text>the amount of
earnings on investments of amounts in the Fund during the preceding fiscal
year;</text>
</subparagraph><subparagraph id="ID30879c1d839249c6a4bcd390329d607b"><enum>(F)</enum><text>the amount paid
from the Fund during the preceding fiscal year to whistleblowers pursuant to
subsection (b);</text>
</subparagraph><subparagraph id="ID971103eef2b245f3a7c8c2d3ed45c3cf"><enum>(G)</enum><text>the amount paid
from the Fund during the preceding fiscal year for customer education
initiatives described in paragraph (2)(B);</text>
</subparagraph><subparagraph id="IDf892d16f790b423cba5883797db722e3"><enum>(H)</enum><text>the balance of
the Fund at the end of the preceding fiscal year; and</text>
</subparagraph><subparagraph id="ID0c8f489e68da46b499262bd18c0bd2f9"><enum>(I)</enum><text>a complete set of
audited financial statements, including a balance sheet, income statement, and
cash flow analysis.</text>
</subparagraph></paragraph></subsection><subsection id="ID6f14bb9526ec48d69b80123338b15815"><enum>(h)</enum><header>Protection of
whistleblowers</header>
<paragraph id="ID9c5242a2fc2844bc8d619c6f6ce2e2d8"><enum>(1)</enum><header>Prohibition
against retaliation</header>
<subparagraph id="IDb3e56758d2514203bfea8758ac470d65"><enum>(A)</enum><header>In
general</header><text>No employer may discharge, demote, suspend, threaten,
harass, directly or indirectly, or in any other manner discriminate against, a
whistleblower in the terms and conditions of employment because of any lawful
act done by the whistleblower—</text>
<clause id="ID2b305d981aef46e5a0defd2c508c0dcb"><enum>(i)</enum><text>in
providing information to the Commission in accordance with subsection (b);
or</text>
</clause><clause id="IDb2f3422c457241cead88795888e9ca0e"><enum>(ii)</enum><text>in
assisting in any investigation or judicial or administrative action of the
Commission based upon or related to such information.</text>
</clause></subparagraph><subparagraph id="ID3db66d17a1a2481d8421e35596d870cd"><enum>(B)</enum><header>Enforcement</header>
<clause id="ID7b20cf4480ea4b538d9d88c54cb29c1c"><enum>(i)</enum><header>Cause of
action</header><text>An individual who alleges discharge or other
discrimination in violation of subparagraph (A) may bring an action under this
subsection in the appropriate district court of the United States for the
relief provided in subparagraph (C), unless the individual who is alleging
discharge or other discrimination in violation of subparagraph (A) is an
employee of the federal government, in which case the individual shall only
bring an action under section 1221 of title 5 United States Code.</text>
</clause><clause id="IDafbea23988ef4c0c96dcdcb9a20861ff"><enum>(ii)</enum><header>Subpoenas</header><text>A
subpoena requiring the attendance of a witness at a trial or hearing conducted
under this subsection may be served at any place in the United States.</text>
</clause><clause id="IDadcea138ac3b47e29589bbe964e07df4"><enum>(iii)</enum><header>Statute of
limitations</header><text>An action under this subsection may not be brought
more than 2 years after the date on which the violation reported in
subparagraph (A) is committed.</text>
</clause></subparagraph><subparagraph id="IDae39dca3712343849694e95813ad0dee"><enum>(C)</enum><header>Relief</header><text>Relief
for an individual prevailing in an action brought under subparagraph (B) shall
include—</text>
<clause id="ID41b13eeaa0334480bc841dd3bb1ccb47"><enum>(i)</enum><text>reinstatement
with the same seniority status that the individual would have had, but for the
discrimination;</text>
</clause><clause id="ID5e1b6b18c7fe44f5b258463ae906d21c"><enum>(ii)</enum><text>the
amount of back pay otherwise owed to the individual, with interest; and</text>
</clause><clause id="ID07a8e29470cc4473b40745d4a14aa3bf"><enum>(iii)</enum><text>compensation
for any special damages sustained as a result of the discharge or
discrimination, including litigation costs, expert witness fees, and reasonable
attorney’s fees.</text>
</clause></subparagraph></paragraph><paragraph id="ID5c3fe95e9e9f4a0fb0bc3dcb622d4222"><enum>(2)</enum><header>Confidentiality</header>
<subparagraph id="ID3aa9d7c4845d4a67b051c40bd478ae3e"><enum>(A)</enum><header>Information
provided</header>
<clause id="IDb9db3d17e4324adaa72cb986e0d1eb5c"><enum>(i)</enum><header>In
general</header><text>Except as provided in subparagraph (B), all information
provided to the Commission by a whistleblower shall be confidential and
privileged as an evidentiary matter (and shall not be subject to civil
discovery or other legal process) in any proceeding in any Federal or State
court or administrative agency, and shall be exempt from disclosure, in the
hands of a department or agency of the Federal Government, under section 552 of
title 5, United States Code (commonly known as the <quote>Freedom of
Information Act</quote>) or otherwise, 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).</text>
</clause><clause id="IDcf696b92d2a64a12842d50f4104dd2cb"><enum>(ii)</enum><header>Construction</header><text>For
purposes of section 552 of title 5, United States Code, this paragraph shall be
considered to be a statute described in subsection (b)(3)(B) of that
section.</text>
</clause><clause id="IDa7f5a2f41c734b3b8ad3870595522bf1"><enum>(iii)</enum><header>Effect</header><text>Nothing
in this paragraph is intended to limit the ability of the Attorney General to
present such evidence to a grand jury or to share such evidence with potential
witnesses or defendants in the course of an ongoing criminal
investigation.</text>
</clause></subparagraph><subparagraph id="ID46d0f8b00e0646eca61d49568336f01f"><enum>(B)</enum><header>Availability to
government agencies</header>
<clause id="id2897CE012A9A4D6D85D8660C8E100C75"><enum>(i)</enum><header>In
general</header><text>Without the loss of its status as confidential and
privileged in the hands of the Commission, all information referred to in
subparagraph (A) may, in the discretion of the Commission, when determined by
the Commission to be necessary or appropriate to accomplish the purposes of
this Act and protect customers and in accordance with clause (ii), be made
available to—</text>
<subclause id="ID178dd643418242a88af135ed0ddd8447"><enum>(I)</enum><text>the Department of
Justice;</text>
</subclause><subclause id="IDc1be68b6f0874fbe8a1abe8f1d80ef15"><enum>(II)</enum><text>an appropriate
department or agency of the Federal Government, acting within the scope of its
jurisdiction;</text>
</subclause><subclause id="ID47238a856bf14baaa6cf6e1eafe8cb4d"><enum>(III)</enum><text>a registered
entity, registered futures association, or self-regulatory organization as
defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a));</text>
</subclause><subclause id="ID22e41b0b765a4c019c7e17252761f5e9"><enum>(IV)</enum><text>a
State attorney general in connection with any criminal investigation;</text>
</subclause><subclause id="ID4d68c279b6c64c739602b0938e8d0673"><enum>(V)</enum><text>an
appropriate department or agency of any State, acting within the scope of its
jurisdiction; and</text>
</subclause><subclause id="ID55f49483084147deb4b3648af40ee86f"><enum>(VI)</enum><text>a
foreign futures authority.</text>
</subclause></clause><clause id="ID9f8235edc26a434c8cc30605efe43311"><enum>(ii)</enum><header>Maintenance of
information</header><text>Each of the entities, agencies, or persons described
in clause (i) shall maintain information described in that clause as
confidential and privileged, in accordance with the requirements in
subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph id="ID3bcb975144244f6785fc0d56d66c0a22"><enum>(3)</enum><header>Rights
retained</header><text>Nothing in this section shall be deemed to diminish the
rights, privileges, or remedies of any whistleblower under any Federal or State
law, or under any collective bargaining agreement.</text>
</paragraph></subsection><subsection id="ID09d4e88ded634bd4b22676b0274f2b68"><enum>(i)</enum><header>Rulemaking
authority</header><text>The Commission shall have the authority to issue such
rules and regulations as may be necessary or appropriate to implement the
provisions of this section consistent with the purposes of this section.</text>
</subsection><subsection id="IDac7ef247d0d34201bdb5871759c0ec17"><enum>(j)</enum><header>Implementing
rules</header><text>The Commission shall issue final rules or regulations
implementing the provisions of this section not later than 270 days after the
date of enactment of the <short-title>Wall Street
Transparency and Accountability Act of 2010</short-title>.</text>
</subsection><subsection id="ID648c5947e2ab4f04aac05ff6c48e9f43"><enum>(k)</enum><header>Original
information</header><text>Information submitted to the Commission by a
whistleblower in accordance with rules or regulations implementing this section
shall not lose its status as original information solely because the
whistleblower submitted such information prior to the effective date of such
rules or regulations, provided such information was submitted after the date of
enactment of the <short-title>Wall Street Transparency and
Accountability Act of 2010</short-title>.</text>
</subsection><subsection id="IDa2e0fa94f16c44cda36d88b95ad85d58"><enum>(l)</enum><header>Awards</header><text>A
whistleblower may receive an award pursuant to this section regardless of
whether any violation of a provision of this Act, or a rule or regulation
thereunder, underlying the judicial or administrative action upon which the
award is based occurred prior to the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>.</text>
</subsection><subsection id="IDdd83a92442214f2ea9d09fbc6c3126d3"><enum>(m)</enum><header>Provision of
false information</header><text>A whistleblower who knowingly and willfully
makes any false, fictitious, or fraudulent statement or representation, or who
makes or uses any false writing or document knowing the same to contain any
false, fictitious, or fraudulent statement or entry, shall not be entitled to
an award under this section and shall be subject to prosecution under section
1001 of title 18, United States
Code.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB2FD3BE108644BA286AFC9386EA708E0"><enum>749.</enum><header>Conforming
amendments</header>
<subsection id="id20B59E3D59E9458EB27021647F2EE37C"><enum>(a)</enum><text>Section 2(c)(1)
of the Commodity Exchange Act (7 U.S.C. 2(c)(1)) is amended, in the matter
preceding subparagraph (A), by striking <quote>5a (to the extent provided in
section 5a(g)),</quote>.</text>
</subsection><subsection id="id6BC49662B58344589E60ECE419D1D32F"><enum>(b)</enum><text display-inline="yes-display-inline">Section 4d of the Commodity Exchange Act (7
U.S.C. 6d) (as amended by section 724) is amended—</text>
<paragraph id="IDb513c315e1c74a6e9d7ab66a85bb7902"><enum>(1)</enum><text>in
subsection (a)—</text>
<subparagraph id="id0D2A12E53F4B4F969A86E79F42CDD809"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="idB31F1D7F5A0B4BB6B0690A0DEDAA51C8"><enum>(i)</enum><text>by
striking <quote>engage as</quote> and inserting <quote>be a</quote>; and</text>
</clause><clause id="idEA2ECF0DA9E24888B0908279BA3A0DFD"><enum>(ii)</enum><text>by
striking <quote>or introducing broker</quote> and all that follows through
<quote>or derivatives transaction execution facility</quote>;</text>
</clause></subparagraph><subparagraph id="ID1b44fc6aef36497cb49c3dffccf59026"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>or introducing broker</quote>; and</text>
</subparagraph><subparagraph id="IDea3ba37425424a3c80c5db58758e9466"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>if a futures commission merchant,</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID59e0a3a46ef34031af767ebe2093dbe4"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8659898B23ED4005BB51768DF3758C7C" style="OLC">
<subsection id="id82C3831E318F4A74B7AF77C0666660E5"><enum>(g)</enum><text>It shall be
unlawful for any person to be an introducing broker unless such person shall
have registered under this Act with the Commission as an introducing broker and
such registration shall not have expired nor been suspended nor
revoked.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDa101e5ce1ed04e1ea798fd3c3ef31ccd"><enum>(c)</enum><text>Section 4m(3) of
the Commodity Exchange Act (7 U.S.C. 6m(3)) is amended—</text>
<paragraph id="id980E6E5414044948A0D8D39B4C443334"><enum>(1)</enum><text>by
striking <quote>(3) Subsection (1) of this section</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF45C6F75AF2D45058BBC83BC37A99948" style="OLC">
<paragraph id="idD3601330617541368772F91DEA28F167"><enum>(3)</enum><header>Exception</header>
<subparagraph id="id0B1850E4E62846CB8E4E3799A7588D9F"><enum>(A)</enum><header>In
general</header><text>Paragraph (1)</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id73712482CB384EA284D070DF97386DC1"><enum>(2)</enum><text>by
striking <quote>to any investment trust</quote> and all that follows through
the period at the end and inserting the following: “to any commodity pool that
is engaged primarily in trading commodity interests.</text>
<quoted-block display-inline="no-display-inline" id="id3AB170320988452D8833595B1474F3B9" style="OLC">
<subparagraph id="id873345AEFA1A42739BC38A991FDEC97A"><enum>(B)</enum><header>Engaged
primarily</header><text>For purposes of subparagraph (A), a commodity trading
advisor or a commodity pool shall be considered to be <quote>engaged
primarily</quote> in the business of being a commodity trading advisor or
commodity pool if it is or holds itself out to the public as being engaged
primarily, or proposes to engage primarily, in the business of advising on
commodity interests or investing, reinvesting, owning, holding, or trading in
commodity interests, respectively.</text>
</subparagraph><subparagraph id="id16F59169A58148CC9E920F4E0290763A"><enum>(C)</enum><header>Commodity
interests</header><text>For purposes of this paragraph, commodity interests
shall include contracts of sale of a commodity for future delivery, options on
such contracts, security futures, swaps, leverage contracts, foreign exchange,
spot and forward contracts on physical commodities, and any monies held in an
account used for trading commodity
interests.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id69DBA48E49C643B194B5813EF7122199"><enum>(d)</enum><text>Section 5c of the
Commodity Exchange Act (7 U.S.C. 7a-2) is amended—</text>
<paragraph id="idB5E38289C28D44A685392EBB58A34761"><enum>(1)</enum><text>in
subsection (a)(1)—</text>
<subparagraph id="id1755562F4EE548D9861668ECFE615C6B"><enum>(A)</enum><text>by striking
<quote>, 5a(d),</quote>; and</text>
</subparagraph><subparagraph id="idCEFA60DE236842528787597EECCCC649"><enum>(B)</enum><text>by striking
<quote>and section (2)(h)(7) with respect to significant price discovery
contracts,</quote>; and</text>
</subparagraph></paragraph><paragraph id="id5775131668BA47EC9CB3DC34995954F9"><enum>(2)</enum><text>in
subsection (f)(1), by striking <quote>section 4d(c) of this Act</quote> and
inserting <quote>section 4d(e)</quote>.</text>
</paragraph></subsection><subsection id="id15528E68A4B34932ADC4F59FF6FCA5FF"><enum>(e)</enum><text>Section 5e of the
Commodity Exchange Act (7 U.S.C. 7b) is amended by striking <quote>or
revocation of the right of an electronic trading facility to rely on the
exemption set forth in section 2(h)(3) with respect to a significant price
discovery contract,</quote>.</text>
</subsection><subsection id="id215BCA3467614B83951C523C9F5853E4"><enum>(f)</enum><text>Section 6(b) of
the Commodity Exchange Act (7 U.S.C. 8(b)) is amended in the first sentence by
striking <quote>, or to revoke the right of an electronic trading facility to
rely on the exemption set forth in section 2(h)(3) with respect to a
significant price discovery contract,</quote>.</text>
</subsection><subsection id="id9AFEEBC749B64D74815B3BE05025A4EB"><enum>(g)</enum><text>Section
12(e)(2)(B) of the Commodity Exchange Act (7 U.S.C. 16(e)(2)(B)) is
amended—</text>
<paragraph id="idF3FC06C9C49246559155414AB5D0E95B"><enum>(1)</enum><text>by
striking <quote>section 2(c), 2(d), 2(f), or 2(g) of this Act</quote> and
inserting <quote>section 2(c), 2(f), or 2(i) of this Act</quote>; and</text>
</paragraph><paragraph id="idBB1C2115306446ED9DD1AE9466DA025D"><enum>(2)</enum><text>by
striking <quote>2(h) or</quote>.</text>
</paragraph></subsection><subsection id="id1C26927FFB394122B6B5A1BB1BF505F4"><enum>(h)</enum><text>Section 17(r)(1)
of the Commodity Exchange Act (7 U.S.C. 21(r)(1)) is amended by striking
<quote>section 4d(c) of this Act</quote> and inserting <quote>section
4d(e)</quote>.</text>
</subsection><subsection id="id99123E8A56984F4C9A1FD5B6E9A5C087"><enum>(i)</enum><text>Section
22(b)(1)(A) of the Commodity Exchange Act (7 U.S.C. 25(b)(1)(A)) is amended by
striking <quote>section 2(h)(7) or</quote>.</text>
</subsection><subsection id="id9759DF07FD224EAFB08D73A31C6A7ABE"><enum>(j)</enum><text>Section 408(2)(C)
of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4421(2)(C)) is amended—</text>
<paragraph id="id022913E8092C4DCD88675843603F3815"><enum>(1)</enum><text>by
striking <quote>section 2(c), 2(d), 2(f), or (2)(g) of such Act</quote> and
inserting <quote>section 2(c), 2(f), or 2(i) of that Act</quote>; and</text>
</paragraph><paragraph id="id61B95A678CB242EAA383C3B4D04869BE"><enum>(2)</enum><text>by
striking <quote>2(h) or</quote>.</text>
</paragraph></subsection></section><section id="idA43EDF1CA27E4F87A273173A477D1AC5"><enum>750.</enum><header>Study on
oversight of carbon markets</header>
<subsection id="idF58420DD8D784F0A99282B2D37318144"><enum>(a)</enum><header>Interagency
working group</header><text display-inline="yes-display-inline">There is
established to carry out this section an interagency working group (referred to
in this section as the <quote>interagency group</quote>) composed of the
following members or designees:</text>
<paragraph id="id3A70CE666B8049AFA309DF3CB8DAE6C6"><enum>(1)</enum><text display-inline="yes-display-inline">The Chairman of the Commodity Futures
Trading Commission (referred to in this section as the
<quote>Commission</quote>), who shall serve as Chairman of the interagency
group.</text>
</paragraph><paragraph id="id2F111846390E4E4F82F03870DCC25E65"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary of Agriculture.</text>
</paragraph><paragraph id="id30DAEDB4EADD4A02A2CD1D53C46D7EDD"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary of the Treasury.</text>
</paragraph><paragraph id="idA14F0C17A25441CE8DBABCC07E142945"><enum>(4)</enum><text display-inline="yes-display-inline">The Chairman of the Securities and Exchange
Commission.</text>
</paragraph><paragraph id="id8540FE32A39D4AE8BF0920FB71E49E3E"><enum>(5)</enum><text display-inline="yes-display-inline">The Administrator of the Environmental
Protection Agency.</text>
</paragraph><paragraph id="id6573CB1498E24E999A151808DD2EF625"><enum>(6)</enum><text display-inline="yes-display-inline">The Chairman of the Federal Energy
Regulatory Commission.</text>
</paragraph><paragraph id="id3806A9EDCB9D472EAA0C4D9F160AD704"><enum>(7)</enum><text>The
Commissioner of the Federal Trade Commission.</text>
</paragraph><paragraph id="id873B065B86074E89AC77B460846F8320"><enum>(8)</enum><text>The
Administrator of the Energy Information Administration.</text>
</paragraph></subsection><subsection id="id0540682E37F644B8A8CA2CFA29F66607"><enum>(b)</enum><header>Administrative
support</header><text>The Commission shall provide the interagency group such
administrative support services as are necessary to enable the interagency
group to carry out the functions of the interagency group under this
section.</text>
</subsection><subsection id="id9448031F33A44D04A267217DD54D9B2D"><enum>(c)</enum><header>Consultation</header><text>In
carrying out this section, the interagency group shall consult with
representatives of exchanges, clearinghouses, self-regulatory bodies, major
carbon market participants, consumers, and the general public, as the
interagency group determines to be appropriate.</text>
</subsection><subsection id="idA32A0DC4F9FC4A189385D4C010E4270A"><enum>(d)</enum><header>Study</header><text display-inline="yes-display-inline">The interagency group shall conduct a study
on the oversight of existing and prospective carbon markets to ensure an
efficient, secure, and transparent carbon market, including oversight of spot
markets and derivative markets.</text>
</subsection><subsection id="id303E2E243BFF4BFA9C94E15F35BC50AC"><enum>(e)</enum><header>Report</header><text>Not
later than 180 days after the date of enactment of this Act, the interagency
group shall submit to Congress a report on the results of the study conducted
under subsection (b), including recommendations for the oversight of existing
and prospective carbon markets to ensure an efficient, secure, and transparent
carbon market, including oversight of spot markets and derivative
markets.</text>
</subsection></section><section id="ID67c22423ba0744a8a234597cd35a39a3"><enum>751.</enum><header>Energy and
environmental markets advisory committee</header><text display-inline="no-display-inline">Section 2(a) of the Commodity Exchange Act
(7 U.S.C. 2(a)) (as amended by section 727) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idAD65E62E97EA4E3182F5176E6A3BD8ED" style="OLC">
<paragraph id="IDe949d463ea2f454f90031707de76b48f"><enum>(15)</enum><header>Energy and
environmental markets advisory committee</header>
<subparagraph id="idF96C0177E96248DB85F483CCB4081580"><enum>(A)</enum><header>Establishment</header>
<clause id="ID8be88593188e4de589fc19d722f1961a"><enum>(i)</enum><header>In
general</header><text>An Energy and Environmental Markets Advisory Committee is
hereby established.</text>
</clause><clause id="idF7ABC59988004BA597E494018D7BB7CD"><enum>(ii)</enum><header>Membership</header><text>The
Committee shall have 9 members.</text>
</clause><clause id="id2F4738862B9443F0AE68B589FB06B373"><enum>(iii)</enum><header>Activities</header><text>The
Committee’s objectives and scope of activities shall be—</text>
<subclause id="id5B4278C8D26E437F9524208313EE04AC"><enum>(I)</enum><text>to
conduct public meetings;</text>
</subclause><subclause id="idDF44CC00B97247D691450C154CB912B6"><enum>(II)</enum><text>to submit
reports and recommendations to the Commission (including dissenting or minority
views, if any); and</text>
</subclause><subclause id="id21C0DD5EF320471DB1C51CBBD4709BF8"><enum>(III)</enum><text>otherwise to
serve as a vehicle for discussion and communication on matters of concern to
exchanges, firms, end users, and regulators regarding energy and environmental
markets and their regulation by the Commission.</text>
</subclause></clause></subparagraph><subparagraph id="ID2938767db64746ff943a01ff0dd99e36"><enum>(B)</enum><header>Requirements</header>
<clause id="id61D6C9EC8CB142A7B4DA32D595910D54"><enum>(i)</enum><header>In
general</header><text>The Committee shall hold public meetings at such
intervals as are necessary to carry out the functions of the Committee, but not
less frequently than 2 times per year.</text>
</clause><clause id="id201FFAB19E434071B6B372A1ADA69A60"><enum>(ii)</enum><header>Members</header><text>Members
shall be appointed to 3-year terms, but may be removed for cause by vote of the
Commission.</text>
</clause></subparagraph><subparagraph id="ID0359ca7635f546eb8f52b236f4aa368a"><enum>(C)</enum><header>Appointment</header><text>The
Commission shall appoint members with a wide diversity of opinion and who
represent a broad spectrum of interests, including hedgers and
consumers.</text>
</subparagraph><subparagraph id="ID6841e507c6f04b318a9f1741a844e05a"><enum>(D)</enum><header>Reimbursement</header><text>Members
shall be entitled to per diem and travel expense reimbursement by the
Commission.</text>
</subparagraph><subparagraph id="ID53d385f437774010934273c599db34a2"><enum>(E)</enum><header>FACA</header><text>The
Committee shall not be subject to the <act-name parsable-cite="FACA">Federal
Advisory Committee Act</act-name> (5 U.S.C.
App.).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDe59bf9e6514444f4a5e6c96ef4ed7030"><enum>752.</enum><header>International
harmonization</header><text display-inline="no-display-inline">In order to
promote effective and consistent global regulation of swaps and security-based
swaps, the Securities and Exchange Commission, the Commodity Futures Trading
Commission, the Financial Stability Oversight Council, and the Treasury
Department—</text>
<paragraph id="IDffcb65af04d64af4902e4d432a3cb07f"><enum>(1)</enum><text>shall, both
individually and collectively, consult and coordinate with foreign regulatory
authorities on the establishment of consistent international standards with
respect to the regulation of such swaps; and</text>
</paragraph><paragraph id="IDe33cf14d90774f47906cd001582e0c6a"><enum>(2)</enum><text>may,
both individually and collectively, agree to such information-sharing
arrangements as may be deemed to be necessary or appropriate in the public
interest or for the protection of investors and swap counterparties.</text>
</paragraph></section><section id="id0313F110BFCA4A6A8EFF43088A620ECE"><enum>753.</enum><header>Effective
date</header><text display-inline="no-display-inline">Unless otherwise provided
in this title, this subtitle shall take effect on the date that is 180 days
after the date of enactment of this Act.</text>
</section></part></subtitle><subtitle id="H59FD1F324C664AF59E0EBDEF8BB8D250"><enum>B</enum><header>Regulation of
Security-Based Swap Markets</header>
<section id="HF2F11766A476400B802108128FE3756A"><enum>761.</enum><header>Definitions
under the Securities Exchange Act of 1934</header>
<subsection id="H6611479C9C6A458BA145A11FA0A7EFE4"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)) is amended—</text>
<paragraph id="H547A4E15F96B40FCB62620E41AE256E0"><enum>(1)</enum><text>in
subparagraphs (A) and (B) of paragraph (5), by inserting <quote>(not including
security-based swaps, other than security-based swaps with or for persons that
are not eligible contract participants)</quote> after <quote>securities</quote>
each place that term appears;</text>
</paragraph><paragraph id="HF18DD3BDA49B46C6B4CEEB2F0FA3CBFD"><enum>(2)</enum><text>in
paragraph (10), by inserting <quote>security-based swap,</quote> after
<quote>security future,</quote>;</text>
</paragraph><paragraph id="H6BB6174F01CC4671B0CF62C089CF25D7"><enum>(3)</enum><text>in
paragraph (13), by adding at the end the following: <quote>For security-based
swaps, such terms include the execution, termination (prior to its scheduled
maturity date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may require.</quote>;</text>
</paragraph><paragraph id="H605EABFECAD84E4888BFEA4F81723AB5"><enum>(4)</enum><text>in
paragraph (14), by adding at the end the following: <quote>For security-based
swaps, such terms include the execution, termination (prior to its scheduled
maturity date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may require.</quote>;</text>
</paragraph><paragraph id="HCD2E7A87BD024FFE84E661F811E1294E"><enum>(5)</enum><text>in
paragraph (39)—</text>
<subparagraph id="H4307E0700BA84FF1819E5C102EA6B88B"><enum>(A)</enum><text>in
subparagraph (B)(i)—</text>
<clause id="idCD7436A3F1924DEA96C33CA3BD5617D4"><enum>(i)</enum><text>in
subclause (I), by striking <quote>or government securities dealer</quote> and
inserting <quote>government securities dealer, security-based swap dealer, or
major security-based swap participant</quote>; and</text>
</clause><clause id="H7BC76DEF2073460B8C44E0EB6DFF568D"><enum>(ii)</enum><text>in
subclause (II), by inserting <quote>security-based swap dealer, major
security-based swap participant,</quote> after <quote>government securities
dealer,</quote>;</text>
</clause></subparagraph><subparagraph id="H559CC1FA7BFB42C988DF78EA83EC62A3"><enum>(B)</enum><text>in
subparagraph (C), by striking <quote>or government securities dealer</quote>
and inserting <quote>government securities dealer, security-based swap dealer,
or major security-based swap participant</quote>; and</text>
</subparagraph><subparagraph id="HD3B1D397567C4A3B82EEC8B905C0DCF0"><enum>(C)</enum><text>in
subparagraph (D), by inserting <quote>security-based swap dealer, major
security-based swap participant,</quote> after <quote>government securities
dealer,</quote>; and</text>
</subparagraph></paragraph><paragraph id="H2F1C78001B7B42FDBB7FD4E4AEA29985"><enum>(6)</enum><text>by
adding at the end the following:</text>
<quoted-block id="HB5E387BCC14841F2A7ECCE92C9EDA6E8" style="OLC">
<paragraph id="H51B0EA0C4FE447EE998F835FA76D79A7"><enum>(65)</enum><header>Eligible
contract participant</header><text>The term <term>eligible contract
participant</term> has the same meaning as in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="H0CAB5B8DFDEB41E1891A5E742B5D8CB0"><enum>(66)</enum><header>Major swap
participant</header><text>The term <term>major swap participant</term> has the
same meaning as in section 1a of the Commodity Exchange Act (7 U.S.C.
1a).</text>
</paragraph><paragraph id="IDa0acb2ce230649e1a3170e514fe409cc"><enum>(67)</enum><header>Major
security-based swap participant</header>
<subparagraph id="id1E5F9094636B45E8B7BAEB6E968A1D8A"><enum>(A)</enum><header>In
general</header><text>The term <term>major security-based swap
participant</term> means any person—</text>
<clause id="idB0946F9603D04203960ABA701E2763FD"><enum>(i)</enum><text>who
is not a security-based swap dealer; and</text>
</clause><clause id="id5323A637F905409696F030210BCF0782"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id109E110E3E67455097558FF2899E148D"><enum>(I)</enum><text>who maintains a
substantial position in security-based swaps for any of the major
security-based swap categories, as such categories are determined by the
Commission, excluding—</text>
<item id="id5F2CAE99736E421AA0A5A60DF1762734" indent="up1"><enum>(aa)</enum><text>positions held for hedging or
mitigating commercial risk; and</text>
</item><item id="id3416074C2DE84BB7845AFA493D3F923C" indent="up1"><enum>(bb)</enum><text>positions maintained by any employee
benefit plan (or any contract held by such a plan), as that term is defined in
paragraphs (3) and (32) of section 3 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1002), for the primary purpose of hedging or mitigating
any risk directly associated with the operation of the plan;</text>
</item></subclause><subclause id="id448A4E4D7B6E410CAA169A4AA1DA2FB0" indent="up1"><enum>(II)</enum><text>whose outstanding security-based swaps
create substantial counterparty exposure that could have serious adverse
effects on the financial stability of the United States banking system or
financial markets; or</text>
</subclause><subclause id="id31577326D99841B1AC4670F969673899" indent="up1"><enum>(III)</enum><text>that is a financial entity that—</text>
<item id="idCB245A76FC364B7ABB010B6F248B0006"><enum>(aa)</enum><text>is highly leveraged relative to the
amount of capital such entity holds; and</text>
</item><item id="id31E9B80DD93A425E9B626638ED614A26"><enum>(bb)</enum><text>maintains a substantial position in
outstanding security-based swaps in any major security-based swap category, as
such categories are determined by the Commission.</text>
</item></subclause></clause></subparagraph><subparagraph id="id4C090CC0783A49F888DA7ADAE5D29AE3"><enum>(B)</enum><header>Definition of
substantial position</header><text>For purposes of subparagraph (A), the
Commission shall define, by rule or regulation, the term <term>substantial
position</term> at the threshold that the Commission determines to be prudent
for the effective monitoring, management, and oversight of entities that are
systemically important or can significantly impact the financial system of the
United States.</text>
</subparagraph><subparagraph id="id9D12F8AE9EA8424FAE67D35A83ECB76E"><enum>(C)</enum><header>Scope of
designation</header><text>For purposes of subparagraph (A), a person may be
designated as a major security-based swap participant for 1 or more categories
of security-based swaps without being classified as a major security-based swap
participant for all classes of security-based swaps.</text>
</subparagraph><subparagraph id="idBB75C237C30E488EBF9FC8FFD307DFD8"><enum>(D)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a major
security-based swap participant for a single type or single class or category
of security-based swap or activities, the prudential regulator and the
Commission shall take into account the risks associated with other types of
security-based swaps or classes of security-based swaps or categories of
security-based swaps engaged in and the other activities conducted by that
person that are not otherwise subject to regulation applicable to that person
by virtue of the status of the person as a major security-based swap
participant.</text>
</subparagraph></paragraph><paragraph id="H4BD539FBD5C347ADA07D03DACE23E925"><enum>(68)</enum><header>Security-based
swap</header>
<subparagraph id="HCFFA9FD249FA4AD28F934EA9CA866088"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>security-based swap</term> means any agreement, contract, or transaction
that—</text>
<clause id="idCD558386112240DDA541630CD2EAD9E0"><enum>(i)</enum><text>is a
swap, as that term is defined under section 1a of the Commodity Exchange Act;
and</text>
</clause><clause id="id2924B5269A784560A0E02CF90CBA41BB"><enum>(ii)</enum><text>is
based on—</text>
<subclause id="H728B4CAC00E24F868822C3BFCCB0697B"><enum>(I)</enum><text>an
index that is a narrow-based security index, including any interest therein or
on the value thereof;</text>
</subclause><subclause id="HE9F431645E304E0E8D23759963E57D31"><enum>(II)</enum><text>a
single security or loan, including any interest therein or on the value
thereof; or</text>
</subclause><subclause id="H5CABC0A09FB94DF181BEA69D2AA815DB"><enum>(III)</enum><text>the occurrence,
nonoccurrence, or extent of the occurrence of an event relating to a single
issuer of a security or the issuers of securities in a narrow-based security
index, provided that such event directly affects the financial statements,
financial condition, or financial obligations of the issuer.</text>
</subclause></clause></subparagraph><subparagraph id="H85E73B8A06B04B43814CB701CB61C039"><enum>(B)</enum><header>Rule of
construction regarding master agreements</header><text>The term
<term>security-based swap</term> shall be construed to include a master
agreement that provides for an agreement, contract, or transaction that is a
security-based swap pursuant to subparagraph (A), together with all supplements
to any such master agreement, without regard to whether the master agreement
contains an agreement, contract, or transaction that is not a security-based
swap pursuant to subparagraph (A), except that the master agreement shall be
considered to be a security-based swap only with respect to each agreement,
contract, or transaction under the master agreement that is a security-based
swap pursuant to subparagraph (A).</text>
</subparagraph><subparagraph id="H609BBF22FC624AA5BEF792FACB0BB915"><enum>(C)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The term <term>security-based swap</term>
does not include any agreement, contract, or transaction that meets the
definition of a security-based swap only because such agreement, contract, or
transaction references, is based upon, or settles through the transfer,
delivery, or receipt of an exempted security under paragraph (12), as in effect
on the date of enactment of the Futures Trading Act of 1982 (other than any
municipal security as defined in paragraph (29) as in effect on the date of
enactment of the Futures Trading Act of 1982), unless such agreement, contract,
or transaction is of the character of, or is commonly known in the trade as, a
put, call, or other option.</text>
</subparagraph><subparagraph id="ID3d431a7fc1764d60b01c8d3c4c82a7ad"><enum>(D)</enum><header>Mixed
swap</header><text>The term <quote>security-based swap</quote> includes any
agreement, contract, or transaction that is as described in subparagraph (A)
and also is based on the value of 1 or more interest or other rates,
currencies, commodities, instruments of indebtedness, indices, quantitative
measures, other financial or economic interest or property of any kind (other
than a single security or a narrow-based security index), or the occurrence,
non-occurrence, or the extent of the occurrence of an event or contingency
associated with a potential financial, economic, or commercial consequence
(other than an event described in subparagraph (A)(ii)(III)).</text>
</subparagraph></paragraph><paragraph id="HD6E4E884FBD440A984B2FC425A42BC4A"><enum>(69)</enum><header>Swap</header><text>The
term <term>swap</term> has the same meaning as in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="HB9B80F677C7D4BD1B61B01B296D40ACE"><enum>(70)</enum><header>Person
associated with a security-based swap dealer or major security-based swap
participant</header>
<subparagraph id="id2130C000CDBA4960B0B57A01B5D04A9A"><enum>(A)</enum><header>In
general</header><text>The term <term>person associated with a security-based
swap dealer or major security-based swap participant</term> or <term>associated
person of a security-based swap dealer or major security-based swap
participant</term> means—</text>
<clause id="idC201D537C08F4EA1AEDBBDBFD1D824BF"><enum>(i)</enum><text>any
partner, officer, director, or branch manager of such security-based swap
dealer or major security-based swap participant (or any person occupying a
similar status or performing similar functions);</text>
</clause><clause id="idCD7AB24548AC4B0291DC1DBA425165D3"><enum>(ii)</enum><text>any
person directly or indirectly controlling, controlled by, or under common
control with such security-based swap dealer or major security-based swap
participant; or</text>
</clause><clause id="id7EF1392511C0499494DB495CEDC6EF16"><enum>(iii)</enum><text>any
employee of such security-based swap dealer or major security-based swap
participant.</text>
</clause></subparagraph><subparagraph id="id01E083CB678F435F9B16A15008FED301"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 15F(l)(2), the term <term>person associated with a
security-based swap dealer or major security-based swap participant</term> or
<term>associated person of a security-based swap dealer or major security-based
swap participant</term> does not include any person associated with a
security-based swap dealer or major security-based swap participant whose
functions are solely clerical or ministerial.</text>
</subparagraph></paragraph><paragraph id="H8D292561388A49969085FE75D22EF76E"><enum>(71)</enum><header>Security-based
swap dealer</header>
<subparagraph id="H55DE039115224B8A9E33428D6ED4D0F2"><enum>(A)</enum><header>In
general</header><text>The term <term>security-based swap dealer</term> means
any person who—</text>
<clause id="H2C613EEFDD444C8E8F8AA525F14F81BD"><enum>(i)</enum><text display-inline="yes-display-inline">holds themself out as a dealer in
security-based swaps;</text>
</clause><clause id="H3D37202B88554A308B4B0DFC7533D7C9"><enum>(ii)</enum><text>makes
a market in security-based swaps;</text>
</clause><clause id="HE0DAE846806340A7BFE7101B4CADA4D4"><enum>(iii)</enum><text>regularly
engages in the purchase and sale of security-based swaps in the ordinary course
of a business; or</text>
</clause><clause id="H878765FAC0BD4AD6819860EE180041E3"><enum>(iv)</enum><text>engages in any
activity causing it to be commonly known in the trade as a dealer or market
maker in security-based swaps.</text>
</clause></subparagraph><subparagraph id="id6AD1168503914138B8C01219E07A0B80"><enum>(B)</enum><header>Designation by
type or class</header><text>A person may be designated as a security-based swap
dealer for a single type or single class or category of security-based swap or
activities and considered not to be a security-based swap dealer for other
types, classes, or categories of security-based swaps or activities.</text>
</subparagraph><subparagraph id="id3E94687ED5CF42A4AC2A10356F5CDC0E"><enum>(C)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a
security-based swap dealer for a single type or single class or category of
security-based swap or activities, the prudential regulator and the Commission
shall take into account the risks associated with other types of security-based
swaps or classes of security-based swaps or categories of security-based swaps
engaged in and the other activities conducted by that person that are not
otherwise subject to regulation applicable to that person by virtue of the
status of the person as a security-based swap dealer.</text>
</subparagraph></paragraph><paragraph id="HB0BDEC4A1BD6407F906424825D37D189"><enum>(72)</enum><header>Appropriate
Federal banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the same meaning as in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="H11E1112951F14F20BDF146B478D20CB6"><enum>(73)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><paragraph id="HE74F9C3FED064B72AB36BB9B8FD23986"><enum>(74)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term> has the same
meaning as in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="H01CF8DC850B34481809F38C04B985029"><enum>(75)</enum><header>Security-based
swap data repository</header><text display-inline="yes-display-inline">The term
<term>security-based swap data repository</term> means any person that
collects, 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 id="HC2EA2DB7F6CD4730A5E2FFD6EFDCA25F"><enum>(76)</enum><header>Swap
dealer</header><text>The term <term>swap dealer</term> has the same meaning as
in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="HE3CF4FFE44B140649347860E0517AF3D"><enum>(77)</enum><header>Swap execution
facility</header><text>The term <term>swap execution facility</term> means a
facility in which multiple participants have the ability to execute or trade
security-based swaps by accepting bids and offers made by other participants
that are open to multiple participants in the facility or system, or
confirmation facility, that—</text>
<subparagraph id="id2356536F3A1645BDA0F6B7DB7D3345C2"><enum>(A)</enum><text>facilitates the
execution of security-based swaps between persons; and</text>
</subparagraph><subparagraph id="id77823DC794274BB3BD0AE24DE490267D"><enum>(B)</enum><text>is not a
designated contract market.</text>
</subparagraph></paragraph><paragraph id="id177280FFBEE04457B6233BE3F9EEB73F"><enum>(78)</enum><header>Security-based
swap agreement</header>
<subparagraph id="id9937D515D1494C0AB6F79E77FFB337F9"><enum>(A)</enum><header>In
general</header><text>For purposes of sections 9, 10, 16, 20, and 21A of this
Act, and section 17 of the Securities Act of 1933 (15 U.S.C. 77q), the term
<quote>security-based swap agreement</quote> means a swap agreement as defined
in section 206A of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note) of which a
material term is based on the price, yield, value, or volatility of any
security or any group or index of securities, or any interest therein.</text>
</subparagraph><subparagraph id="idC9D3F187460B4172890D16CF838B3377"><enum>(B)</enum><header>Exclusions</header><text>The
term <quote>security-based swap agreement</quote> does not include any
security-based
swap.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6031E36A1214448F898C75085F834EFE"><enum>(b)</enum><header>Authority to
further define terms</header><text display-inline="yes-display-inline">The
Securities and Exchange Commission may, by rule, further define the terms
<term>security-based swap</term>, <term>security-based swap dealer</term>,
<term>major security-based swap participant</term>, and <term>eligible contract
participant</term> with regard to security-based swaps (as such terms are
defined in the amendments made by subsection (a)) for the purpose of including
transactions and entities that have been structured to evade this subtitle or
the amendments made by this subtitle.</text>
</subsection><subsection id="id9496ECCA22474A46876E8B216302EE01"><enum>(c)</enum><header>Other
incorporated definitions</header><text display-inline="yes-display-inline">Except as the context otherwise requires,
in this subtitle, the terms <term>prudential regulator</term>,
<term>swap</term>, <term>swap dealer</term>, <term>major swap
participant</term>, <term>swap data repository</term>, <term>associated person
of a swap dealer or major swap participant</term>, <term>eligible contract
participant</term>, <term>swap execution facility</term>, <term>security-based
swap</term>, <term>security-based swap dealer</term>, <term>major
security-based swap participant</term>, <term>security-based swap data
repository</term>, and <term>associated person of a security-based swap dealer
or major security-based swap participant</term> have the same meanings as in
section 1a of the Commodity Exchange Act (7 U.S.C. 1a), as amended by this
Act.</text>
</subsection></section><section id="IDa05df65b935940baabd00ee35e35c726"><enum>762.</enum><header>Repeal of
prohibition on regulation of security-based swap agreements</header>
<subsection id="IDf1ed6ee0813946c38e9450cde074e7fe"><enum>(a)</enum><header>Repeal</header><text>Sections
206B and 206C of the Gramm-Leach-Bliley Act (Public Law 106–102; 15 U.S.C. 78c
note) are repealed.</text>
</subsection><subsection id="IDe8b31c97d5514620981cd1333f9c5166"><enum>(b)</enum><header>Conforming
amendments to the Securities Act of 1933</header>
<paragraph id="ID2fe676b6389640b7bb91a970d48256e0"><enum>(1)</enum><text>Section 2A of the
Securities Act of 1933 (15 U.S.C. 77b-1) is amended—</text>
<subparagraph id="ID2fc1800b79d44abaad9a8b2ea59940f9"><enum>(A)</enum><text>by striking
subsection (a) and reserving that subsection; and</text>
</subparagraph><subparagraph id="ID3096e32f963e4a8b86691c4decf453ba"><enum>(B)</enum><text>by striking
<quote>(as defined in section 206B of the Gramm-Leach-Bliley Act)</quote> each
place that such term appears and inserting <quote>(as defined in section
3(a)(78) of the Securities Exchange Act of 1934)</quote>.</text>
</subparagraph></paragraph><paragraph id="ID74783dc6dc9848db99ddbddd4cfb3ab9"><enum>(2)</enum><text>Section 17 of the
Securities Act of 1933 (15 U.S.C. 77q) is amended—</text>
<subparagraph id="ID7d2b23896fc640ceb5007a86c2c54ada"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="IDd140fa88423b47168d03f21d95f302fb"><enum>(i)</enum><text>by
inserting <quote>(including security-based swaps)</quote> after
<quote>securities</quote>; and</text>
</clause><clause id="ID5e7182e3b90b455c90fe8e4f7c9e90e5"><enum>(ii)</enum><text>by
striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote> and inserting <quote>(as defined in section 3(a)(78) of the
Securities Exchange Act)</quote>; and</text>
</clause></subparagraph><subparagraph id="ID12dc74e5467848d1a27614e71b7b6936"><enum>(B)</enum><text>in subsection
(d), by striking “206B of the Gramm-Leach-Bliley Act” and inserting
<quote>3(a)(78) of the Securities Exchange Act of 1934</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID3029a1ea51154858bacf6d80502081ce"><enum>(c)</enum><header>Conforming
amendments to the Securities Exchange Act of 1934</header><text>The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<paragraph id="IDe979a619939f4048aaf227820e310a52"><enum>(1)</enum><text>in
section 3A (15 U.S.C. 78c–1)—</text>
<subparagraph id="ID64d5ea9bf076400c8624458be4085233"><enum>(A)</enum><text>by striking
subsection (a) and reserving that subsection; and</text>
</subparagraph><subparagraph id="ID9eb89066ee1a4ff8b22db5b29ec25de0"><enum>(B)</enum><text>by striking “(as
defined in section 206B of the Gramm-Leach-Bliley Act)” each place that the
term appears;</text>
</subparagraph></paragraph><paragraph id="H8AD5502B5ED64CE9A7931699140DE5EB"><enum>(2)</enum><text>in
section 9 (15 U.S.C. 78i)—</text>
<subparagraph id="id76405B6DF0D644B09FCAFA5E812D98F1"><enum>(A)</enum><text>in subsection
(a), by striking paragraphs (2) through (5) and inserting the following:</text>
<quoted-block id="H846161F65CA249AA91B684F443F20E7E" style="OLC">
<paragraph id="H9CDBB2B528B94DCDA14AD29101ACB0E5" indent="up1"><enum>(2)</enum><text>To effect, alone or with 1 or more
other persons, a series of transactions in any security registered on a
national securities exchange, any security not so registered, or in connection
with any security-based swap or security-based swap agreement with respect to
such security creating actual or apparent active trading in such security, or
raising or depressing the price of such security, for the purpose of inducing
the purchase or sale of such security by others.</text>
</paragraph><paragraph id="HE514A2ECF33C43FF9384013228E858BC" indent="up1"><enum>(3)</enum><text>If a dealer, broker, security-based
swap dealer, major security-based swap participant, or other person selling or
offering for sale or purchasing or offering to purchase the security, a
security-based swap, or a security-based swap agreement with respect to such
security, to induce the purchase or sale of any security registered on a
national securities exchange, any security not so registered, any
security-based swap, or any security-based swap agreement with respect to such
security by the circulation or dissemination in the ordinary course of business
of information to the effect that the price of any such security will or is
likely to rise or fall because of market operations of any 1 or more persons
conducted for the purpose of raising or depressing the price of such
security.</text>
</paragraph><paragraph id="H8BB3DF9F5D984EB1B61569EC6B832789" indent="up1"><enum>(4)</enum><text>If a dealer, broker, security-based
swap dealer, major security-based swap participant, or other person selling or
offering for sale or purchasing or offering to purchase the security, a
security-based swap, or security-based swap agreement with respect to such
security, to make, regarding any security registered on a national securities
exchange, any security not so registered, any security-based swap, or any
security-based swap agreement with respect to such security, for the purpose of
inducing the purchase or sale of such security, such security-based swap, or
such security-based swap agreement any statement which was at the time and in
the light of the circumstances under which it was made, false or misleading
with respect to any material fact, and which that person knew or had reasonable
ground to believe was so false or misleading.</text>
</paragraph><paragraph id="H79A6BF8C6481442ABC525561BACD9065" indent="up1"><enum>(5)</enum><text>For a consideration, received
directly or indirectly from a broker, dealer, security-based swap dealer, major
security-based swap participant, or other person selling or offering for sale
or purchasing or offering to purchase the security, a security-based swap, or
security-based swap agreement with respect to such security, to induce the
purchase of any security registered on a national securities exchange, any
security not so registered, any security-based swap, or any security-based swap
agreement with respect to such security by the circulation or dissemination of
information to the effect that the price of any such security will or is likely
to rise or fall because of the market operations of any 1 or more persons
conducted for the purpose of raising or depressing the price of such
security.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID6df43d6f3daa499c8501af23bab55f81"><enum>(B)</enum><text>in subsection
(i), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="IDd856076831894936bb96109deef20ff0"><enum>(3)</enum><text>in
section 10 (15 U.S.C. 78j)—</text>
<subparagraph id="idD8AC91C293314705822DF6CC40629832"><enum>(A)</enum><text>in subsection
(b), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act),</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="id0BDB61BCBEC84711A3E460D697CB8657"><enum>(B)</enum><text>in the matter
following subsection (b), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="IDfbf04f19af0e47b0be0caff8dcc292bf"><enum>(4)</enum><text>in
section 15 (15 U.S.C. 78o)—</text>
<subparagraph id="IDafb7213f3eb04342918f5514566d2602"><enum>(A)</enum><text>in subsection
(c)(1)(A), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act),</quote>;</text>
</subparagraph><subparagraph id="IDc0f84613506642a899cfc54be0957419"><enum>(B)</enum><text>in subparagraphs
(B) and (C) of subsection (c)(1), by striking <quote>(as defined in section
206B of the Gramm-Leach-Bliley Act)</quote> each place that term
appears;</text>
</subparagraph><subparagraph id="ID5de05be9dd5a4aaebd7ea74a7e7b482e"><enum>(C)</enum><text>by redesignating
subsection (i), as added by section 303(f) of the Commodity Futures
Modernization Act of 2000 (Public Law 106–554; 114 Stat. 2763A–455)), as
subsection (j); and</text>
</subparagraph><subparagraph id="ID1fc27433beb642dca89f1521346a9117"><enum>(D)</enum><text>in subsection
(j), as redesignated by subparagraph (C), by striking <quote>(as defined in
section 206B of the Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="ID988d6778d7da48d1a29dc9464ad7fdd6"><enum>(5)</enum><text>in
section 16 (15 U.S.C. 78p)—</text>
<subparagraph id="ID4c8fdb05e21b4613b649ddf5e349487d"><enum>(A)</enum><text>in subsection
(a)(2)(C), by striking <quote>(as defined in section 206(b) of the
Gramm-Leach-Bliley Act (15 U.S.C. 78c note))</quote>;</text>
</subparagraph><subparagraph id="IDd10587f8e4bd4765bf5ca42949989fb0"><enum>(B)</enum><text>in subsection
(a)(3)(B), by inserting <quote>or security-based swaps</quote> after
<quote>security-based swap agreement</quote>;</text>
</subparagraph><subparagraph id="IDa2b4260151804508949c128fea452e2f"><enum>(C)</enum><text>in the first
sentence of subsection (b), by striking <quote>(as defined in section 206B of
the Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph><subparagraph id="ID25c2bd5978e14b69ae14248ee886be97"><enum>(D)</enum><text>in the third
sentence of subsection (b), by striking <quote>(as defined in section 206B of
the Gramm-Leach Bliley Act)</quote> and inserting <quote>or a security-based
swap</quote>; and</text>
</subparagraph><subparagraph id="ID9c4f65ec88a745b7be9a99ebd6d11840"><enum>(E)</enum><text>in subsection
(g), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="ID134157cb267a46e98ef85cfe39df547f"><enum>(6)</enum><text>in
section 20 (15 U.S.C. 78t),</text>
<subparagraph id="ID4944f6782a21458db58c4c53084e990c"><enum>(A)</enum><text>in subsection
(d), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>; and</text>
</subparagraph><subparagraph id="IDf90f791b8ebc47328ef2fba7f8bd05b9"><enum>(B)</enum><text>in subsection
(f), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="ID6490d151768e4832b43873cc06020812"><enum>(7)</enum><text>in
section 21A (15 U.S.C. 78u–1)—</text>
<subparagraph id="IDed8bba6550e642fb8a7c0881bde80ba3"><enum>(A)</enum><text>in subsection
(a)(1), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote>; and</text>
</subparagraph><subparagraph id="ID6fee7ea9e7ad486fac486e573eb9e392"><enum>(B)</enum><text>in subsection
(g), by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="HD123621C0F794AE18156C6C902F54F9D"><enum>763.</enum><header>Amendments to
the Securities Exchange Act of 1934</header>
<subsection id="H80062058AE954F46B16B4E4FC34E4CEC"><enum>(a)</enum><header>Clearing for
security-based swaps</header><text>The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3B (as added by
section 717 of this Act):</text>
<quoted-block display-inline="no-display-inline" id="H46818561C6C7480290A96EF53C7EF92E" style="OLC">
<section id="H84D9CEC23C564872B9E6D9D42AC9A105"><enum>3C.</enum><header>Clearing for
security-based swaps</header>
<subsection id="id8F459919108541EDBA96F731380D89D3"><enum>(a)</enum><header>Clearing
requirement</header>
<paragraph id="idA80323C6B9B94C238603AA8FB5687233"><enum>(1)</enum><header>Submission</header>
<subparagraph id="id7351E97547614FABB1104AAECE43AADC"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraphs (9) and (10), any person
who is a party to a security-based swap shall submit such security-based swap
for clearing to a clearing agency registered under section 17A of this
title.</text>
</subparagraph><subparagraph id="id99C2882B0D3E4AFFA81D0B64CE278E0F"><enum>(B)</enum><header>Open
access</header><text>The rules of a registered clearing agency shall—</text>
<clause id="ID4aff9de7658d4dcb8234b4bffc8fd657"><enum>(i)</enum><text>prescribe that
all security-based swaps with the same terms and conditions are economically
equivalent and may be offset with each other within the clearing agency;
and</text>
</clause><clause id="IDfa786eb700ba416e826d6493c56dbe50"><enum>(ii)</enum><text>provide for
nondiscriminatory clearing of a security-based swap executed bilaterally or on
or through the rules of an unaffiliated national securities exchange or swap
execution facility, subject to the requirements of section 5(b).</text>
</clause></subparagraph></paragraph><paragraph id="idC5A0043B9EDD4662B707DB69531AC9D4"><enum>(2)</enum><header>Commission
approval</header>
<subparagraph id="IDa4c6bc4dcd8946779d8485caf863a4b6"><enum>(A)</enum><header>In
general</header><text>A clearing agency shall submit to the Commission for
prior approval any group, category, type, or class of security-based swaps that
the clearing agency seeks to accept for clearing, which submission the
Commission shall make available to the public.</text>
</subparagraph><subparagraph id="ID3dab54e2887f45e68c6400875949698d"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall take final action on a request submitted pursuant to
subparagraph (A) not later than 90 days after submission of the request, unless
the clearing agency submitting the request agrees to an extension of the time
limitation established under this subparagraph.</text>
</subparagraph><subparagraph id="ID8a73b117c3ba4017b84d06e0cec823f8"><enum>(C)</enum><header>Approval</header><text>The
Commission shall approve, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, any request
submitted pursuant to subparagraph (A) if the Commission finds that the request
is consistent with the requirements of section 17A. The Commission shall not
approve any such request if the Commission does not make such finding.</text>
</subparagraph><subparagraph id="IDd4c8f8bb5fb24dcfa98974c134762783"><enum>(D)</enum><header>Rules</header><text>The
Commission shall adopt rules for a clearing agency’s submission for approval,
pursuant to this paragraph, of any group, category, type, or class of
security-based swaps that the clearing agency seeks to accept for
clearing.</text>
</subparagraph></paragraph><paragraph id="IDb457e52134de4f9d8edc04828eefe469"><enum>(3)</enum><header>Stay of
clearing requirement</header><text>At any time after issuance of an approval
pursuant to paragraph (2):</text>
<subparagraph id="ID280dcfe66c8a4146b918e6d294d47c46"><enum>(A)</enum><header>Review
process</header><text>The Commission, on application of a counterparty to a
security-based swap or on its own initiative, may stay the clearing requirement
of paragraph (1) until the Commission completes a review of the terms of the
security-based swap, or the group, category, type, or class of security-based
swaps, and the clearing arrangement.</text>
</subparagraph><subparagraph id="ID134a8461ba614765a501a9281d5a4223"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall complete a review undertaken pursuant to subparagraph (A) not
later than 90 days after issuance of the stay, unless the clearing agency that
clears the security-based swap, or the group, category, type, or class of
security-based swaps, agrees to an extension of the time limitation established
under this subparagraph.</text>
</subparagraph><subparagraph id="ID49210f7986c5457bb1b8157d2010374b"><enum>(C)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to subparagraph (A)—</text>
<clause id="ID6ebda42f3e6847e9b5ed6d7b77384e8a"><enum>(i)</enum><text>the
Commission may determine, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, that the
security-based swap, or the group, category, type, or class of security-based
swaps, must be cleared pursuant to this subsection if the Commission finds that
such clearing—</text>
<subclause id="ID17ee941f8b4f4878b201b568a158f410"><enum>(I)</enum><text>is
consistent with the requirements of section 17A; and</text>
</subclause><subclause id="ID03a0840553cc4ad9875b0583b0d8bf1e"><enum>(II)</enum><text>is otherwise in
the public interest, for the protection of investors, and consistent with the
purposes of this title;</text>
</subclause></clause><clause id="ID00d5e36b091f4fe982fd1948d7a54ae0"><enum>(ii)</enum><text>the
Commission may determine that the clearing requirement of paragraph (1) shall
not apply to the security-based swap, or the group, category, type, or class of
security-based swaps; or</text>
</clause><clause id="ID22eddab0dea4459ca56bd854ca6c5282"><enum>(iii)</enum><text>if
a determination is made that the clearing requirement of paragraph (1) shall no
longer apply, then the Commission may still permit such security-based swap, or
the group, category, type, or class of security-based swaps to be
cleared.</text>
</clause></subparagraph><subparagraph id="IDcd7c65d2429943f59ac55d41f49f5fd6"><enum>(D)</enum><header>Rules</header><text>The
Commission shall adopt rules for reviewing, pursuant to this paragraph, a
clearing agency’s clearing of a security-based swap, or a group, category,
type, or class of security-based swaps that the Commission has accepted for
clearing.</text>
</subparagraph></paragraph><paragraph id="ID27c8a7ef2bf047efad7deac3a3b83836"><enum>(4)</enum><header>Security-based
swaps required to be accepted for clearing</header>
<subparagraph id="ID8d1aa7fad2fa4c96a5d0542b9bb5c5f2"><enum>(A)</enum><header>Rulemaking</header><text>The
Commission shall adopt rules to further identify any group, category, type, or
class of security-based swaps not submitted for approval under paragraph (2)
that the Commission deems should be accepted for clearing. In adopting such
rules, the Commission shall take into account the following factors:</text>
<clause id="ID6bc28fdb86e44d6c8fe7c244710169b5"><enum>(i)</enum><text>The
extent to which any of the terms of the group, category, type, or class of
security-based swaps, including price, are disseminated to third parties or are
referenced in other agreements, contracts, or transactions.</text>
</clause><clause id="ID6782eec8d63645e5ae66809b9b5dbdaa"><enum>(ii)</enum><text>The
volume of transactions in the group, category, type, or class of security-based
swaps.</text>
</clause><clause id="IDf1c5041a65324318818e68f12b038dae"><enum>(iii)</enum><text>The
extent to which the terms of the group, category, type, or class of
security-based swaps are similar to the terms of other agreements, contracts,
or transactions that are cleared.</text>
</clause><clause id="IDf35e078b780a41f98e45a975804676f3"><enum>(iv)</enum><text>Whether any
differences in the terms of the group, category, type, or class of
security-based swaps, compared to other agreements, contracts, or transactions
that are cleared, are of economic significance.</text>
</clause><clause id="IDac519b3a27ce4b6d9aab440f632ce711"><enum>(v)</enum><text>Whether a
clearing agency is prepared to clear the group, category, type, or class of
security-based swaps and such clearing agency has in place effective risk
management systems.</text>
</clause><clause id="ID2719887952074f05ab5736c1e7c0f0df"><enum>(vi)</enum><text>Any
other factor the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="ID312d05b7d6fa4a2f887591bdf31c9e6f"><enum>(B)</enum><header>Other
designations</header><text>At any time after the adoption of the rules required
under subparagraph (A), the Commission may separately designate a particular
security-based swap or class of security-based swaps as subject to the clearing
requirement of paragraph (1), taking into account the factors established in
clauses (i) through (vi) of subparagraph (A) and the rules adopted in such
subparagraph.</text>
</subparagraph><subparagraph id="IDc838b181591e46faa3b069f1fbfe41e4"><enum>(C)</enum><header>In
general</header><text>In accordance with subparagraph (A), the Commission
shall, consistent with the public interest, adopt rules under the expedited
process described in subparagraph (D) to establish criteria for determining
that a swap, or any group, category, type, or class of swap is required to be
cleared.</text>
</subparagraph><subparagraph id="IDa86c2264bcd84caba97e7458e456239a"><enum>(D)</enum><header>Expedited
rulemaking authority</header>
<clause id="ID96a7656d279a43dcbfe515b16d3eae6e"><enum>(i)</enum><header>Procedure</header><text>The
promulgation of regulations under subparagraph (A) may be made without regard
to—</text>
<subclause id="ID6b8b8f30c87c4685a5057266c4d9e7f1"><enum>(I)</enum><text>the notice and
comment provisions of section 553 of title 5, United States Code; and</text>
</subclause><subclause id="IDbd47d1882d94409f88b8dba3d06fdc87"><enum>(II)</enum><text>chapter 35 of
title 44, United States Code (commonly known as the <quote>Paperwork Reduction
Act</quote>).</text>
</subclause></clause><clause id="ID7066f5656bf84396b7ec6ef7a828e735"><enum>(ii)</enum><header>Agency
rulemaking</header><text>In carrying out subparagraph (A), the Commission shall
use the authority provided under section 808 of title 5, United States
Code.</text>
</clause></subparagraph></paragraph><paragraph id="id9B1A296987D64C428B4768962E54B00E"><enum>(5)</enum><header>Prevention of
evasion</header>
<subparagraph id="idEEEA5410A66C485AAC868C939EE07393"><enum>(A)</enum><header>In
general</header><text>The Commission shall have authority to prescribe rules
under this section, or issue interpretations of such rules, as necessary to
prevent evasions of this section.</text>
</subparagraph><subparagraph id="id2FBC6FEFE4674F9394AE19402E396A37"><enum>(B)</enum><header>Duty of
Commission to investigate and take certain actions</header><text>To the extent
the Commission finds that a particular security-based swap or any group,
category, type, or class of security-based swaps that would otherwise be
subject to mandatory clearing but no clearing agency has listed the
security-based swap or the group, category, type, or class of security-based
swaps for clearing, the Commission shall—</text>
<clause id="ID446f465ce2bb406bb13c2fd5e5722a92"><enum>(i)</enum><text>investigate the
relevant facts and circumstances;</text>
</clause><clause id="ID5e97b814994c4958a785f23a0b803b6a"><enum>(ii)</enum><text>within 30 days
issue a public report containing the results of the investigation; and</text>
</clause><clause id="IDc8d4ab59a3a145dbbec9b0e78eb547f7"><enum>(iii)</enum><text>take such
actions as the Commission determines to be necessary and in the public
interest, which may include requiring the retaining of adequate margin or
capital by parties to the security-based swap or the group, category, type, or
class of security-based swaps.</text>
</clause></subparagraph><subparagraph id="id368A9C29C00D4612AC6EB6C440F38368"><enum>(C)</enum><header>Effect on
authority</header><text>Nothing in this paragraph—</text>
<clause id="ID3c158383196548faba9573328611f8fd"><enum>(i)</enum><text>authorize the
Commission to require a clearing agency to list for clearing a security-based
swap or any group, category, type, or class of security-based swaps if the
clearing of the security-based swap or the group, category, type, or class of
security-based swaps would adversely affect the business operations of the
clearing agency, threaten the financial integrity of the clearing agency, or
pose a systemic risk to the clearing agency; and</text>
</clause><clause id="IDf8b9093ab9544f04bb871242d6092b1f"><enum>(ii)</enum><text>affect the
authority of the Commission to enforce the open access provisions of paragraph
(1) with respect to a security-based swap or the group, category, type, or
class of security-based swaps that is listed for clearing by a clearing
agency.</text>
</clause></subparagraph></paragraph><paragraph id="id83E58E5B8EDF402C8C2FEE2FD863404D"><enum>(6)</enum><header>Required
reporting</header>
<subparagraph id="id2D21364336BC4428A050AFAE86A59680"><enum>(A)</enum><header>Both
counterparties</header><text>Both counterparties to a security-based swap that
is not cleared by any clearing agency shall report such a security-based swap
either to a registered security-based swap repository described in section
13(n) or, if there is no repository that would accept the security-based swap,
to the Commission pursuant to section 13A.</text>
</subparagraph><subparagraph id="IDc9f9e2fb06c9403482c5c0c6e790f380"><enum>(B)</enum><header>Timing</header><text>Counterparties
to a security-based swap shall submit the reports required under subparagraph
(A) not later than such time period as the Commission may by rule or regulation
prescribe.</text>
</subparagraph></paragraph><paragraph id="idCF009C1FA58043E5BFE9DAD623BB7576"><enum>(7)</enum><header>Transition
rules</header>
<subparagraph id="idAEE9A53DB8B54C3783D229B6F4DABCA0"><enum>(A)</enum><header>Reporting
transition rules</header><text>Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<clause id="ID40ce8aa2423e4dd7b2640535b287ae69"><enum>(i)</enum><text>Security-based
swaps entered into before the date of the enactment of this section shall be
reported to a registered security-based swap repository or the Commission not
later than 180 days after the effective date of this section.</text>
</clause><clause id="ID7a87867f80544801add1d91e8889b77d"><enum>(ii)</enum><text>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 not later than the
later of—</text>
<subclause id="ID3f3285bf3de045c29dd0d9671af9bb63"><enum>(I)</enum><text>90
days after such effective date; or</text>
</subclause><subclause id="IDe92f6bcbf5814bc79288fe47fa35e4b2"><enum>(II)</enum><text>such other time
after entering into the security-based swap as the Commission may prescribe by
rule or regulation.</text>
</subclause></clause></subparagraph><subparagraph id="id0DD962F5A32443DDBEFF4A6D6184A7CB"><enum>(B)</enum><header>Clearing
transition rules</header>
<clause id="idE1B903A75BA249B3B69F098D54B19EE2"><enum>(i)</enum><text>Security-based
swaps entered into before the date of the enactment of this section are exempt
from the clearing requirements of this subsection if reported pursuant to
subparagraph (A)(i).</text>
</clause><clause id="ID7f5f88774d6a47fe901d8c93ae807bd8"><enum>(ii)</enum><text>Security-based
swaps entered into before application of the clearing requirement pursuant to
this section are exempt from the clearing requirements of this section if
reported pursuant to subparagraph (A)(ii).</text>
</clause></subparagraph></paragraph><paragraph id="id1E95C0C894A347CAAC9A0015CFD28AEE"><enum>(8)</enum><header>Trade
execution</header>
<subparagraph id="id730E522439C744FCBCA30768E4A8A620"><enum>(A)</enum><header>In
general</header><text>With respect to transactions involving security-based
swaps subject to the clearing requirement of paragraph (1), counterparties
shall—</text>
<clause id="IDd7f0e80647914a38b2e3e8a2319a6cdc"><enum>(i)</enum><text>execute the
transaction on an exchange; or</text>
</clause><clause id="ID8fdd01f4e7184b70a1822d8c56998530"><enum>(ii)</enum><text>execute the
transaction on a swap execution facility registered under section 3D or a swap
execution facility that is exempt from registration under section 3D(e).</text>
</clause></subparagraph><subparagraph id="ID3d5344eea93b4d3f89f1f98f4cfde9dd"><enum>(B)</enum><header>Exception</header><text>The
requirements of clauses (i) and (ii) of subparagraph (A) shall not
apply—</text>
<clause id="idCD5CE3930169412EB45BED321A4C95BB"><enum>(i)</enum><text>if no
national securities exchange or security-based swap execution facility makes
the security-based swap available to trade; or</text>
</clause><clause id="idD50684975AFE4C278F0A8AC8A05EED7E"><enum>(ii)</enum><text>to
swap transactions where a commercial end user opts to use the clearing
exemption under paragraph (10).</text>
</clause></subparagraph></paragraph><paragraph id="IDec21acf048654870b89b6260df8763aa"><enum>(9)</enum><header>Required
exemption</header><text>Subject to paragraph (4), the Commission shall exempt a
security-based swap from the requirements of paragraphs (1) and (8) and any
rules issued under this subsection, if no clearing agency registered under this
Act will accept the security-based swap from clearing.</text>
</paragraph><paragraph id="ID6bb35ca17f48420bbe5ec244bc2a16ef"><enum>(10)</enum><header>End user
clearing exemption</header>
<subparagraph id="idD9A783B92A814E07A07CCDCD765B260D"><enum>(A)</enum><header>Definition of
commercial end user</header>
<clause id="id61AE6F613A8245BE943AE1CC60A68D98"><enum>(i)</enum><header>In
general</header><text>In this paragraph, the term <term>commercial end
user</term> means any person other than a financial entity described in clause
(ii) who, as its primary business activity, owns, uses, produces, processes,
manufactures, distributes, merchandises, or markets services or commodities
(which shall include coal, natural gas, electricity, ethanol, crude oil,
distillates, and other hydrocarbons) either individually or in a fiduciary
capacity.</text>
</clause><clause id="idE5886949002043A0AF60CF411B168D40"><enum>(ii)</enum><header>Financial
entity</header><text>The term <term>financial entity</term> means—</text>
<subclause id="idF44BACB7874346EDA8FB1DF001516D99"><enum>(I)</enum><text>a
swap dealer, major swap participant, security-based swap dealer, or major
security-based swap participant;</text>
</subclause><subclause id="id792161ADD2A145C4B36EDCE4D151363C"><enum>(II)</enum><text>a
person predominantly engaged in activities that are in the business of banking
or financial in nature, as defined in Section 4(k) of the Bank Holding Company
Act of 1956;</text>
</subclause><subclause id="id14386A9DBF92439C9F16101AB451CA9E"><enum>(III)</enum><text>a person
predominantly engaged in activities that are financial in nature;</text>
</subclause><subclause id="idF0638E93DE6444C89EFECAAD4D232BEC"><enum>(IV)</enum><text>a
private fund as defined in section 202(a) of the Investment Advisers Act of
1940 (15 U.S.C. 80b-2(a)) or a commodity pool as defined in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a); or</text>
</subclause><subclause id="idA9F0B91A529D4175984A7A3E881C8674"><enum>(V)</enum><text>a
person that is registered or required to be registered with the Commission, but
does not include a public company which registers its securities with the
Commission.</text>
</subclause></clause></subparagraph><subparagraph id="IDbcd58f5716a44321909a2a322a00fbbc"><enum>(B)</enum><header>End user
clearing exemption</header>
<clause id="id689A0C32AE9D4F8CBD9582D18DCA5AF7"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), in the event that a
security-based swap is subject to the mandatory clearing requirement under
paragraph (1), and 1 of the counterparties to the security-based swap is a
commercial end user that counterparty—</text>
<subclause id="ID824a19b9899f4d14b191e77b8b290807"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id37127E0BF626400B8A51A2394BD8AE46"><enum>(aa)</enum><text>may elect not to clear
the security-based swap, as required under paragraph (1); or</text>
</item><item id="id8BB564486FE84070B5D0BE0137FC61C5" indent="up1"><enum>(bb)</enum><text>may elect to require clearing of the
security-based swap; and</text>
</item></subclause><subclause id="ID9ab43ef7b73e4c5497b3c656b420ea5c"><enum>(II)</enum><text>if the end user
makes an election under subclause (I)(bb), shall have the sole right to select
the clearing agency at which the security-based swap will be cleared.</text>
</subclause></clause><clause id="id60803040C2F54A15AC8441A0C608C6D2"><enum>(ii)</enum><header>Limitation</header><text>A
commercial end user may only make an election under clause (i) if the end user
is using the security-based swap to hedge its own commercial risk.</text>
</clause></subparagraph><subparagraph id="ID2f159cd9d8d243048da188ca53667c5b"><enum>(C)</enum><header>Treatment of
affiliates</header>
<clause id="IDc1a43d2003ac4a56969859e53865e149"><enum>(i)</enum><header>In
general</header><text>An affiliate of a commercial end user (including
affiliate entities predominantly engaged in providing financing for the
purchase of the merchandise or manufactured goods of the commercial end user)
may make an election under subparagraph (B)(i) only if the affiliate, acting on
behalf of the commercial end user and as an agent, uses the security-based swap
to hedge or mitigate the commercial risk of the commercial end user parent or
other affiliates of the commercial end user that is not a financial
entity..</text>
</clause><clause id="IDde4a519a9b5f494891c8bf5881678bd8"><enum>(ii)</enum><header>Prohibition
relating to certain affiliates</header><text>An affiliate of a commercial end
user shall not use the exemption under subparagraph (B) if the affiliate
is—</text>
<subclause id="ID1227e0f9d99946939c9ec93559f429d1"><enum>(I)</enum><text>a
security-based swap dealer;</text>
</subclause><subclause id="IDe90986b5a1854494a9080ed1fd9f733a"><enum>(II)</enum><text>a
security-based security-based swap dealer;</text>
</subclause><subclause id="ID81f5370eec644161ab32e6d3f9a814dc"><enum>(III)</enum><text>a major
security-based swap participant;</text>
</subclause><subclause id="ID861302523b674fcc87d0e6352b1ae326"><enum>(IV)</enum><text>a
major security-based security-based swap participant;</text>
</subclause><subclause id="IDe054947d285c4af0bf1b1f80a702585c"><enum>(V)</enum><text>an
issuer that would be an investment company, as defined in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a–3), but for paragraph (1) or (7)
of subsection (c) of that section 3 (15 U.S.C. 80a–3(c));</text>
</subclause><subclause id="ID975b27b84a0f4aa28336c40a339fcaf8"><enum>(VI)</enum><text>a
commodity pool;</text>
</subclause><subclause id="id95714803484B40F9ACADBCA3B7D1A69F"><enum>(VII)</enum><text>a bank holding
company with over $50,000,000,000 in consolidated assets; or</text>
</subclause><subclause id="ID499dd89955e34b4bb12bf8db48d309fc"><enum>(VIII)</enum><text>an affiliate
of any entity described in subclauses (I) through (VII).</text>
</subclause></clause><clause id="IDfc902d95ea2942b8a885ebc2305afbd1"><enum>(iii)</enum><header>Abuse of
exemption</header><text>The Commission may prescribe such rules, or issue
interpretations of the rules, as the Commission determines to be necessary to
prevent abuse of the exemption described in subparagraph (B).</text>
</clause></subparagraph><subparagraph id="id61FE5283DCC54BD3A0DABF7D56A7E448"><enum>(D)</enum><header>Option to
clear</header>
<clause id="id2DAC371E531A4DC993FEDEAC0291EF9E"><enum>(i)</enum><header>Security-based
swaps required to be cleared entered into with a financial
entity</header><text>With respect to any securities-based swap that is required
to be cleared by a clearing agency and entered into by a securities-based swap
dealer or a major securities-based swap participant with a financial entity,
the financial entity shall have the sole right to select the clearing agency at
which the securities-based swap will be cleared.</text>
</clause><clause id="id32E99ACB41724425AFD7F6BB903248BF"><enum>(ii)</enum><header>Security-based
swaps not required to be cleared entered into with a financial entity or
commercial end user</header><text>With respect to any securities-based swap
that is not required to be cleared by a clearing agency and entered into by a
securities-based swap dealer or a major securities-based swap participant with
a financial entity or commercial end user, the financial entity or commercial
end user—</text>
<subclause id="ID9f22a83fc3954275808128aacd067f74"><enum>(I)</enum><text>may elect to
require clearing of the securities-based swap; and</text>
</subclause><subclause id="IDf5f3c489794644dcaf92acd23df9a3af"><enum>(II)</enum><text>shall have the
sole right to select the clearing agency at which the securities-based swap
will be cleared.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID4bbf06a7a626438caef10cf2813d7768"><enum>(b)</enum><header display-inline="yes-display-inline">Audit committee approval</header><text display-inline="yes-display-inline">Exemptions from the requirements of this
section to clear or trade a security-based swap through a national securities
exchange or security-based swap execution facility shall be available to a
counterparty that is an issuer of securities that are registered under section
12 or that is required to file reports pursuant to section 15(d), only if the
issuer’s audit committee has reviewed and approved the issuer's decision to
enter into security-based swaps that are subject to such exemptions.</text>
</subsection><subsection id="ID601122e3999e431f9c7e0a3a2a5d5db1"><enum>(c)</enum><header>Public
availability of security-based swap transaction data</header>
<paragraph id="idF5F40988DB764008841023417AA36395"><enum>(1)</enum><header>In
general</header>
<subparagraph id="ID424f3740968b481f957511a22b0681cc"><enum>(A)</enum><header>Definition of
real-time public reporting</header><text>In this paragraph, the term
<term>real-time public reporting</term> means to report data relating to a
security-based swap transaction as soon as technologically practicable after
the time at which the security-based swap transaction has been executed.</text>
</subparagraph><subparagraph id="id333C11C88C0C49559A44F2876F20FC1B"><enum>(B)</enum><header>Purpose</header><text>The
purpose of this section is to authorize the Commission to make security-based
swap transaction and pricing data available to the public in such form and at
such times as the Commission determines appropriate to enhance price
discovery.</text>
</subparagraph><subparagraph id="ID5d53557280414ec984f01c8405f2b60d"><enum>(C)</enum><header>General
rule</header><text>The Commission is authorized to provide by rule for the
public availability of security-based swap transaction and pricing data as
follows:</text>
<clause id="IDeb108c82d849469ea2d204f5d40f7fbd"><enum>(i)</enum><text>With
respect to those security-based swaps that are subject to the mandatory
clearing requirement described in subsection (a)(1) (including those
security-based swaps that are exempted from those requirements), the Commission
shall require real-time public reporting for such transactions.</text>
</clause><clause id="IDc476feac3f7c4589bc9c3457d8cda1cc"><enum>(ii)</enum><text>With
respect to those security-based swaps that are not subject to the mandatory
clearing requirement described in subsection (a)(1), but are cleared at a
registered clearing agency, the Commission shall require real-time public
reporting for such transactions.</text>
</clause><clause id="ID129b07fd0cba407692e3adc09e737b43"><enum>(iii)</enum><text>With respect to
security-based swaps that are not cleared at a registered clearing agency and
which are reported to a security-based swap data repository or the Commission
under subsection (a), the Commission 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 such security-based swap trading volumes and
positions.</text>
</clause><clause id="id9B4B8518D3154E9E8BC9C6065B077027"><enum>(iv)</enum><text>With
respect to security-based swaps that are exempt from the requirements of
subsection (a)(1), but are subject to the requirements of subsection (a)(8),
the Commission shall require real-time public reporting for such
transactions.</text>
</clause></subparagraph><subparagraph id="IDf224faeb69474bdebb74bf9c143c8988"><enum>(D)</enum><header>Registered
entities and public reporting</header><text>The Commission may require
registered entities to publicly disseminate the security-based swap transaction
and pricing data required to be reported under this paragraph.</text>
</subparagraph><subparagraph id="ID9e09c3939d5141d687bfd8b17689779a"><enum>(E)</enum><header>Rulemaking
required</header><text>With respect to the rule providing for the public
availability of transaction and pricing data for security-based swaps described
in clauses (i) and (ii) of subparagraph (C), the rule promulgated by the
Commission shall contain provisions—</text>
<clause id="IDbb9ca5fe57614c8c8e23eb17458f9ab9"><enum>(i)</enum><text>to
ensure such information does not identify the participants;</text>
</clause><clause id="IDc4943b3218f04bb496e09de0590bd8cd"><enum>(ii)</enum><text>to
specify the criteria for determining what constitutes a large notional
security-based swap transaction (block trade) for particular markets and
contracts;</text>
</clause><clause id="ID63499e425a634f538dc786e3f27c3eaa"><enum>(iii)</enum><text>to
specify the appropriate time delay for reporting large notional security-based
swap transactions (block trades) to the public; and</text>
</clause><clause id="IDf7e23a0157c440f5a2f2bfe3c25d8078"><enum>(iv)</enum><text>that
take into account whether the public disclosure will materially reduce market
liquidity.</text>
</clause></subparagraph><subparagraph id="ID3ee55c5f23f04e99a4bff539bb389bdc"><enum>(F)</enum><header>Timeliness of
reporting</header><text>Parties to a security-based swap (including agents of
the parties to a security-based swap) shall be responsible for reporting
security-based swap transaction information to the appropriate registered
entity in a timely manner as may be prescribed by the Commission.</text>
</subparagraph></paragraph><paragraph commented="no" id="H2788D110504341C08ED2071D5E889B36"><enum>(2)</enum><header>Semiannual and
annual public reporting of aggregate security-based swap data</header>
<subparagraph commented="no" id="id905AEBA25B8A49AD90E14632824D0DD8"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
issue a written report on a semiannual and annual basis to make available to
the public information relating to—</text>
<clause commented="no" id="id4A8FC05688A8475887B9D3CB5EE01744"><enum>(i)</enum><text>the trading and
clearing in the major security-based swap categories; and</text>
</clause><clause commented="no" id="idD92CC5E7B071473C8D8A8B8A107CB420"><enum>(ii)</enum><text>the market
participants and developments in new products.</text>
</clause></subparagraph><subparagraph commented="no" id="idA070ED873E744ACF8DF20DBFCC724965"><enum>(B)</enum><header>Use;
consultation</header><text>In preparing a report under subparagraph (A), the
Commission shall—</text>
<clause commented="no" id="idC349DC13882748C68985934224BB8361"><enum>(i)</enum><text>use information
from security-based swap data repositories and clearing agencies; and</text>
</clause><clause commented="no" id="id5FF6C93F38444DFEBCE20133BDC49597"><enum>(ii)</enum><text>consult with the
Office of the Comptroller of the Currency, the Bank for International
Settlements, and such other regulatory bodies as may be necessary.</text>
</clause></subparagraph><subparagraph id="IDfec61cd9b6e141d9ae577fb9e0ac21d6"><enum>(C)</enum><header>Transition rule
for preenactment security-based swaps</header>
<clause id="ID2a01163ec1ad4efe93ae398975572f89"><enum>(i)</enum><header>Security-based
swaps entered into before the date of enactment of the Wall Street Transparency
and Accountability Act of 2010</header><text>Each security-based swap entered
into before the date of enactment of the <short-title>Wall
Street Transparency and Accountability Act of 2010</short-title>, the terms of
which have not expired as of the date of enactment of that Act, shall be
reported to a registered security-based swap data repository or the Commission
by a date that is not later than—</text>
<subclause id="ID1d01347268c94b82af8417edc8316999"><enum>(I)</enum><text>30
days after the date of issuance of the interim final rule; or</text>
</subclause><subclause id="ID5287aaf14706410cb808f476cdd0c898"><enum>(II)</enum><text>such other
period as the Commission determines to be appropriate.</text>
</subclause></clause><clause id="IDa4ece656bec547c48dce788acee90126"><enum>(ii)</enum><header>Commission
rulemaking</header><text>The Commission shall promulgate an interim final rule
within 90 days of the date of enactment of this section providing for the
reporting of each security-based swap entered into before the date of enactment
as referenced in clause (i).</text>
</clause></subparagraph><subparagraph id="ID9caeda589f554297bfcf4126df3750e5"><enum>(D)</enum><header>Effective
date</header><text>The reporting provisions described in this paragraph shall
be effective upon the date of enactment of this section.</text>
</subparagraph></paragraph></subsection><subsection id="HA515E9802BA7426FAE37F21A76B496F9"><enum>(d)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="H5DCD2165655141FEBBDA20A2D4EC9557"><enum>(1)</enum><header>In
general</header><text>Each registered clearing agency shall designate an
individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="HB59FF51CB446454DBA4753B6F7D38AB1"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="HF35A2C071B6B4FF883180080A72B8BBF"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the clearing agency;</text>
</subparagraph><subparagraph id="H178BD50DA092400CAC9D9A9DBDDB6FA8"><enum>(B)</enum><text>in consultation
with its board, a body performing a function similar thereto, or the senior
officer of the registered clearing agency, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="H345D3990F3984CC785AB313D0E9B9D33"><enum>(C)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="HED0A78C2F51546D480DE2BF6C50DE56E"><enum>(D)</enum><text>ensure compliance
with this title (including regulations issued under this title) relating to
agreements, contracts, or transactions, including each rule prescribed by the
Commission under this section;</text>
</subparagraph><subparagraph id="ID390a832c086345b9b980dcd65e7c8839"><enum>(E)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the
compliance officer through any—</text>
<clause id="IDdc0592c8171948308b257c5dade3fa46"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="ID68be3cf42c164dc5a2c29bdebc1b29d5"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="ID6f180d83fd764e80a0012834e558109c"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="IDf21040f03d9e4ec9bfea7cb9bb602695"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="IDf5c3896d984f4dce9f2a097d8b0331f5"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="ID6d3d53646a4744d59df58d04cc4031fb"><enum>(F)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="ID7fcc4e7d7b46440cbb4d659f4db7899a"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="ID5203b1039a9a4235a0a7e19adf5ecd45"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="ID90a5745b527f4b69a33c1236432545d5"><enum>(i)</enum><text>the
compliance of the registered clearing agency or security-based swap execution
facility of the compliance officer with respect to this title (including
regulations under this title); and</text>
</clause><clause id="ID5e86146ec70a452396702415389f48d7"><enum>(ii)</enum><text>each
policy and procedure of the registered clearing agency of the compliance
officer (including the code of ethics and conflict of interest policies of the
registered clearing agency).</text>
</clause></subparagraph><subparagraph id="IDdd868aa79ec44f17abc2bc37fd73e6d8"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="ID70e270ad391142ee8c10276795ad8598"><enum>(i)</enum><text>accompany each
appropriate financial report of the registered clearing agency that is required
to be furnished to the Commission pursuant to this section; and</text>
</clause><clause id="ID89ad39afb4ee4222bc4965bdf289ebe0"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HEAFA45F6CA60490085AB5F70DC8A575A"><enum>(b)</enum><header>Clearing agency
requirements</header><text>Section 17A of the Securities Exchange Act of 1934
(15 U.S.C. 78q-1) is amended by adding at the end the following:</text>
<quoted-block id="H52023D5D82844FDAA8A7F7A076A43D6A" style="OLC">
<subsection commented="no" id="HD8F305F7C89C4B17A43BB237D270C9CF"><enum>(g)</enum><header>Registration
requirement</header><text>It shall be unlawful for a clearing agency, unless
registered with the Commission, directly or indirectly to make use of the mails
or any means or instrumentality of interstate commerce to perform the functions
of a clearing agency with respect to a security-based swap.</text>
</subsection><subsection commented="no" id="HF0C8020037AE4A7D846D4E8B7CA224C7"><enum>(h)</enum><header>Voluntary
registration</header><text>A person that clears agreements, contracts, or
transactions that are not required to be cleared under this title may register
with the Commission as a clearing agency.</text>
</subsection><subsection display-inline="no-display-inline" id="HE42CACFC3A784AE6850EBC4894F89081"><enum>(i)</enum><header>Standards for
clearing agencies clearing security-based swap transactions</header><text display-inline="yes-display-inline">To be registered and to maintain
registration as a clearing agency that clears security-based swap transactions,
a clearing agency shall comply with such standards as the Commission may
establish by rule. In establishing any such standards, and in the exercise of
its oversight of such a clearing agency pursuant to this title, the Commission
may conform such standards or oversight to reflect evolving United States and
international standards. Except where the Commission determines otherwise by
rule or regulation, a clearing agency shall have reasonable discretion in
establishing the manner in which it complies with any such standards.</text>
</subsection><subsection commented="no" id="H45E2E25EB3D34E5CBE65D0B56F0C575A"><enum>(j)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered as clearing agencies for security-based swaps under
this title.</text>
</subsection><subsection id="idA2A044029CAB4311B8CBAECF4F14CA95"><enum>(k)</enum><header>Exemptions</header>
<paragraph id="idB05EA0DA1A794910BAB8B14C0703B669"><enum>(1)</enum><header>In
general</header><text>The Commission may exempt, conditionally or
unconditionally, a clearing agency from registration under this section for the
clearing of security-based swaps if the Commission determines that the clearing
agency is subject to comparable, comprehensive supervision and regulation by
the Commodity Futures Trading Commission or the appropriate government
authorities in the home country of the agency. Such conditions may include, but
are not limited to, requiring that the clearing agency be available for
inspection by the Commission and make available all information requested by
the Commission.</text>
</paragraph><paragraph commented="no" id="H7988A01C79E347CAAD5831465A162C0E"><enum>(2)</enum><header>Derivatives
clearing organizations</header><text display-inline="yes-display-inline">A
person that is required to be registered as a derivatives clearing organization
under the Commodity Exchange Act, whose principal business is clearing
commodity futures and options on commodity futures transactions and swaps 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><subsection commented="no" id="id99B388065D774C808BAFC63CB78842F5"><enum>(l)</enum><header>Modification of
core principles</header><text>The Commission may conform the core principles
established in this section to reflect evolving United States and international
standards.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFF1DBD8492A44FFBB0041EA70F618F0C"><enum>(c)</enum><header>Security-based
swap execution facilities</header><text>The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3C (as added by
subsection (a) of this section) the following:</text>
<quoted-block display-inline="no-display-inline" id="HABBD003673E34E23B993103C1B4D363F" style="OLC">
<section id="H5B12A95EE79E4FD78E73F98B4254A117"><enum>3D.</enum><header>Security-based
swap execution facilities</header>
<subsection id="IDc1b102a2db1a4051a79053fd76948b75"><enum>(a)</enum><header>Registration</header>
<paragraph id="IDc1254c2714ed454a940c3a4bae020437"><enum>(1)</enum><header>In
general</header><text>No person may operate a facility for the trading or
processing of security-based swaps, unless the facility is registered as a
security-based swap execution facility or as a national securities exchange
under this section.</text>
</paragraph><paragraph id="ID3124794e119349fe89252dad09c0fef6"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is registered as a security-based
swap execution facility under this section shall register with the Commission
regardless of whether the person also is registered with the Commodity Futures
Trading Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="ID52b48f1ef75c4275b75de7c6a3b0cd01"><enum>(b)</enum><header>Trading and
trade processing</header><text>A security-based swap execution facility that is
registered under subsection (a) may—</text>
<paragraph id="idF519EBDA79E44436BC86171FEA7C56B9"><enum>(1)</enum><text>make available
for trading any security-based swap; and</text>
</paragraph><paragraph id="idFC2E1691C130428E8A72DE850744C710"><enum>(2)</enum><text>facilitate trade
processing of any security-based swap.</text>
</paragraph></subsection><subsection commented="no" id="ID997f5945ecda428b9dccf7cbb9647827"><enum>(c)</enum><header>Identification
of facility used to trade security-based swaps by national securities
exchanges</header><text>A national securities exchange shall, to the extent
that the exchange also operates a security-based swap execution facility and
uses the same electronic trade execution system for listing and executing
trades of security-based swaps on or through the exchange and the facility,
identify whether electronic trading of such security-based swaps is taking
place on or through the national securities exchange or the security-based swap
execution facility.</text>
</subsection><subsection id="ID9cafef2277ca4ca19964d3c11c880bae"><enum>(d)</enum><header>Core principles
for security-based swap execution facilities</header>
<paragraph id="IDcac2a5607a46450e8b84e6abd65b9f8a"><enum>(1)</enum><header>Compliance with
core principles</header>
<subparagraph id="idC285C02E83994679A6C588B01882AE8D"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a
security-based swap execution facility, the security-based swap execution
facility shall comply with—</text>
<clause id="idCC6FAED60F084B16990530FD3CE888DC"><enum>(i)</enum><text>the
core principles described in this subsection; and</text>
</clause><clause id="idD01B943D2F684B368A570BC262C10052"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation.</text>
</clause></subparagraph><subparagraph id="id12A8700A208A4B55B9D67814084B1EF0"><enum>(B)</enum><header>Reasonable
discretion of security-based swap execution facility</header><text>Unless
otherwise determined by the Commission, by rule or regulation, a security-based
swap execution facility described in subparagraph (A) shall have reasonable
discretion in establishing the manner in which it complies with the core
principles described in this subsection.</text>
</subparagraph></paragraph><paragraph id="ID48c686497fd34d59912a15aabeb1b4c7"><enum>(2)</enum><header>Compliance with
rules</header><text>A security-based swap execution facility shall—</text>
<subparagraph id="IDf862e6fe092745cb9d0cae2f713eb617"><enum>(A)</enum><text>monitor and
enforce compliance with any rule established by such security-based swap
execution facility, including—</text>
<clause id="idB89E32D2A2D9468583AB2CA13507FD00"><enum>(i)</enum><text>the
terms and conditions of the security-based swaps traded or processed on or
through the facility; and</text>
</clause><clause id="id58F0F2C7FC46486EB0FF4828DA3B5542"><enum>(ii)</enum><text>any
limitation on access to the facility;</text>
</clause></subparagraph><subparagraph id="ID90e5416579b14e86b492da608b6d76f6"><enum>(B)</enum><text>establish and
enforce trading, trade processing, and participation rules that will deter
abuses and have the capacity to detect, investigate, and enforce those rules,
including means—</text>
<clause id="IDd0d8296906434c7dbf6a58e409f92170"><enum>(i)</enum><text>to
provide market participants with impartial access to the market; and</text>
</clause><clause id="ID036904c64b65475faa503364de648500"><enum>(ii)</enum><text>to
capture information that may be used in establishing whether rule violations
have occurred; and</text>
</clause></subparagraph><subparagraph id="id746C7C726F1F4409850E77B6E7662278"><enum>(C)</enum><text>establish rules
governing the operation of the facility, including rules specifying trading
procedures to be used in entering and executing orders traded or posted on the
facility, including block trades.</text>
</subparagraph></paragraph><paragraph id="IDa85de0592f5a4a3da9de0e5f3df6fb8d"><enum>(3)</enum><header>Security-based
swaps not readily susceptible to manipulation</header><text>The security-based
swap execution facility shall permit trading only in security-based swaps that
are not readily susceptible to manipulation.</text>
</paragraph><paragraph id="ID3f6ab590e081484dbb59aa1b349fce21"><enum>(4)</enum><header>Monitoring of
trading and trade processing</header><text>The security-based swap execution
facility shall—</text>
<subparagraph id="ID2b69bec9141a47d5b1971da04ae24bb9"><enum>(A)</enum><text>establish and
enforce rules or terms and conditions defining, or specifications
detailing—</text>
<clause id="idD32CAF2E368E482D8D6E3AA2B1D60C33"><enum>(i)</enum><text>trading
procedures to be used in entering and executing orders traded on or through the
facilities of the security-based swap execution facility; and</text>
</clause><clause id="idED7D8CE99DE648C09B363A1D0AC58FFE"><enum>(ii)</enum><text>procedures for
trade processing of security-based swaps on or through the facilities of the
security-based swap execution facility; and</text>
</clause></subparagraph><subparagraph id="ID19b7f382c1c94bc18a9e58d68664684e"><enum>(B)</enum><text>monitor trading
in security-based swaps to prevent manipulation, price distortion, and
disruptions of the delivery or cash settlement process through surveillance,
compliance, and disciplinary practices and procedures, including methods for
conducting real-time monitoring of trading and comprehensive and accurate trade
reconstructions.</text>
</subparagraph></paragraph><paragraph id="IDa311da37f7b34704993d8ee664992ebf"><enum>(5)</enum><header>Ability to
obtain information</header><text>The security-based swap execution facility
shall—</text>
<subparagraph id="IDd6e255a44dfb4fe5aad22d196f5ddc88"><enum>(A)</enum><text>establish and
enforce rules that will allow the facility to obtain any necessary information
to perform any of the functions described in this subsection;</text>
</subparagraph><subparagraph id="IDc78a732be8074115b75c53665f528997"><enum>(B)</enum><text>provide the
information to the Commission on request; and</text>
</subparagraph><subparagraph id="IDa9ea82969d8742be944516e1e339a152"><enum>(C)</enum><text>have the capacity
to carry out such international information-sharing agreements as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="ID5d81955f7fe642789108c2c0e3d00880"><enum>(6)</enum><header>Position limits
or accountability</header>
<subparagraph id="ID8207244d69b94e47b166e6fb780f9da3"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion, especially during trading in the delivery month, a security-based
swap execution facility that is a trading facility shall adopt for each of the
contracts of the facility, as is necessary and appropriate, position
limitations or position accountability for speculators.</text>
</subparagraph><subparagraph id="IDaada682c786c482f8a1d88200f88113a"><enum>(B)</enum><header>Position
limits</header><text>For any contract or agreement that is subject to a
position limitation established by the Commission pursuant to section 10B, the
security-based swap execution facility shall set its position limitation at a
level no higher than the limitation established by the Commission.</text>
</subparagraph><subparagraph id="IDe320579d2a54418f930a5249dd30d9de"><enum>(C)</enum><header>Position
enforcement</header><text>For any contract or agreement that is subject to a
position limitation established by the Commission pursuant to section 10B, a
security-based swap execution facility shall reject any proposed security-based
swap transaction if, based on information readily available to a security-based
swap execution facility, any proposed security-based swap transaction would
cause a security-based swap execution facility customer that would be a party
to such swap transaction to exceed such position limitation.</text>
</subparagraph></paragraph><paragraph id="IDd02f78ad7c22468e9dfb5fb35fd7aa33"><enum>(7)</enum><header>Financial
integrity of transactions</header><text>The security-based swap execution
facility shall establish and enforce rules and procedures for ensuring the
financial integrity of security-based swaps entered on or through the
facilities of the security-based swap execution facility, including the
clearance and settlement of security-based swaps pursuant to section
3C(a)(1).</text>
</paragraph><paragraph id="IDa554c83ac73342169d945aef855b7248"><enum>(8)</enum><header>Emergency
authority</header><text>The security-based swap execution facility shall adopt
rules to provide for the exercise of emergency authority, in consultation or
cooperation with the Commission, as is necessary and appropriate, including the
authority to liquidate or transfer open positions in any security-based swap or
to suspend or curtail trading in a security-based swap.</text>
</paragraph><paragraph id="ID03a29750b4dc4c9fa3e199bd2c8ddb04"><enum>(9)</enum><header>Timely
publication of trading information</header>
<subparagraph id="id415B6A293DB44875B06EFF64ED158CC5"><enum>(A)</enum><header>In
general</header><text>The security-based swap execution facility shall make
public timely information on price, trading volume, and other trading data on
security-based swaps to the extent prescribed by the Commission.</text>
</subparagraph><subparagraph id="IDea61dedba8ca453eafd397d585ec8cce"><enum>(B)</enum><header>Capacity of
security-based swap execution facility</header><text>The security-based swap
execution facility shall be required to have the capacity to electronically
capture trade information with respect to transactions executed on the
facility.</text>
</subparagraph></paragraph><paragraph id="ID491151fe363b4b00b454dbd8b867aaca"><enum>(10)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="idF3F6A3765377455B9F0E2E3A887787F4"><enum>(A)</enum><header>In
general</header><text>A security-based swap execution facility shall—</text>
<clause id="id1C32C2201FFA412A930D7541145838EB"><enum>(i)</enum><text>maintain records
of all activities relating to the business of the facility, including a
complete audit trail, in a form and manner acceptable to the Commission for a
period of 5 years; and</text>
</clause><clause id="idA8DA062FA1794B4E8035FEEC6FD161A2"><enum>(ii)</enum><text>report to the
Commission, in a form and manner acceptable to the Commission, such information
as the Commission determines to be necessary or appropriate for the Commission
to perform the duties of the Commission under this title.</text>
</clause></subparagraph><subparagraph id="id934C982F05CA42838A46699C8EBCF67E"><enum>(B)</enum><header>Requirements</header><text>The
Commission shall adopt data collection and reporting requirements for
security-based swap execution facilities that are comparable to corresponding
requirements for clearing agencies and security-based swap data
repositories.</text>
</subparagraph></paragraph><paragraph id="ID1c4f4b38a4c8460c95e41230df40a634"><enum>(11)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the security-based swap execution facility shall
not—</text>
<subparagraph id="ID55bd223e4fea40628e1f7599006630ff"><enum>(A)</enum><text>adopt any rules
or taking any actions that result in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="ID988f58f8700d4dc48d48e3815f855b28"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="ID229fbead7c364a319a1cdef0c1bc0877"><enum>(12)</enum><header>Conflicts of
interest</header><text>The security-based swap execution facility shall—</text>
<subparagraph id="IDcc12024a16f349ba95f4c6514564b78f"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in its decision-making process;
and</text>
</subparagraph><subparagraph id="ID6a4d6eea4507404eb6d6248812515551"><enum>(B)</enum><text>establish a
process for resolving the conflicts of interest.</text>
</subparagraph></paragraph><paragraph id="ID992bbf737b3e4e5fa2b0a03e8c677e52"><enum>(13)</enum><header>Financial
resources</header>
<subparagraph id="ID95378ae878c34dfe89a1dbb046fc9240"><enum>(A)</enum><header>In
general</header><text>The security-based swap execution facility shall have
adequate financial, operational, and managerial resources to discharge each
responsibility of the security-based swap execution facility, as determined by
the Commission.</text>
</subparagraph><subparagraph id="ID8f9b915e66d14642b10bdf136b149b91"><enum>(B)</enum><header>Determination
of resource adequacy</header><text>The financial resources of a security-based
swap execution facility shall be considered to be adequate if the value of the
financial resources—</text>
<clause id="id34619CC994264ADEB9111E68A45F0571"><enum>(i)</enum><text>enables the
organization to meet its financial obligations to its members and participants
notwithstanding a default by the member or participant creating the largest
financial exposure for that organization in extreme but plausible market
conditions; and</text>
</clause><clause id="id9D4B159038044B65BD13ED2216473A92"><enum>(ii)</enum><text>exceeds the
total amount that would enable the security-based swap execution facility to
cover the operating costs of the security-based swap execution facility for a
1-year period, as calculated on a rolling basis.</text>
</clause></subparagraph></paragraph><paragraph id="ID069484dc114d4e848fbc02761563702f"><enum>(14)</enum><header>System
safeguards</header><text>The security-based swap execution facility
shall—</text>
<subparagraph id="IDc992151bab23467a8069682d7f49d39d"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and automated systems, that—</text>
<clause id="id13CEB8CFD8A843AB88376A301A09C817"><enum>(i)</enum><text>are
reliable and secure; and</text>
</clause><clause id="id2CA8C92BD2694C04ADE9370C8A1F8D3F"><enum>(ii)</enum><text>have
adequate scalable capacity;</text>
</clause></subparagraph><subparagraph id="ID088fded78c9a4499a99576f7ed7b0a1a"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that are designed to allow for—</text>
<clause id="id5A8F6A4BF40649D6BC48A8C137835177"><enum>(i)</enum><text>the
timely recovery and resumption of operations; and</text>
</clause><clause id="idE73A14CA98A7481EB38A8A7788FBECCD"><enum>(ii)</enum><text>the
fulfillment of the responsibilities and obligation of the security-based swap
execution facility; and</text>
</clause></subparagraph><subparagraph id="ID1f86611649044299b88ef3501576e068"><enum>(C)</enum><text>periodically
conduct tests to verify that the backup resources of the security-based swap
execution facility are sufficient to ensure continued—</text>
<clause id="id25F28C66CF2943D4866FF028D932996B"><enum>(i)</enum><text>order
processing and trade matching;</text>
</clause><clause id="idFFF9B19015E54E1EBFBFEAC5785EB611"><enum>(ii)</enum><text>price
reporting;</text>
</clause><clause id="id61B0EB6F146A4036BA30953E32E16F5E"><enum>(iii)</enum><text>market
surveillance; and</text>
</clause><clause id="idFE6B8DD213FE4F638A93B562076D3433"><enum>(iv)</enum><text>maintenance of a
comprehensive and accurate audit trail.</text>
</clause></subparagraph></paragraph><paragraph id="ID926e9ed01ed041e6ae33a7833e3958ae"><enum>(15)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="ID116aece0465c4a52a7a1bc6b6f9dc9e0"><enum>(A)</enum><header>In
general</header><text>Each security-based swap execution facility shall
designate an individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="IDe49928c8fbba44de89373ab9a6d46442"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="IDdc1bfdbf08ba447f8278e14097ad0ed7"><enum>(i)</enum><text>report directly
to the board or to the senior officer of the facility;</text>
</clause><clause id="idC0522AEB48354576BCC2CF12ACA2D2D0"><enum>(ii)</enum><text>review
compliance with the core principles in this subsection;</text>
</clause><clause id="IDed062bfcb46d420ba2c171fb0c5d9b2d"><enum>(iii)</enum><text>in
consultation with the board of the facility, a body performing a function
similar to that of a board, or the senior officer of the facility, resolve any
conflicts of interest that may arise;</text>
</clause><clause id="ID27b930f6fa0a4e49af632f65a39b9585"><enum>(iv)</enum><text>be
responsible for establishing and administering the policies and procedures
required to be established pursuant to this section;</text>
</clause><clause id="ID6eb9396471bc44fc8c604f2c9de03786"><enum>(v)</enum><text>ensure compliance
with this title and the rules and regulations issued under this title,
including rules prescribed by the Commission pursuant to this section;</text>
</clause><clause id="ID6ed3b8920b274288af2492ee015d783c"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues found during—</text>
<subclause id="id3DEF568AF74444FBBF0FA325077D0D8A"><enum>(I)</enum><text>compliance office
reviews;</text>
</subclause><subclause id="id0EAC8BC5ACBC494895CD0F83478021EC"><enum>(II)</enum><text>look
backs;</text>
</subclause><subclause id="id88557A4D32964B80B3FE05DFA7579F28"><enum>(III)</enum><text>internal or
external audit findings;</text>
</subclause><subclause id="id042500B6BF27419296CD394634E0FE1E"><enum>(IV)</enum><text>self-reported
errors; or</text>
</subclause><subclause id="id854B0EA89D67403AB16B096E22C2C252"><enum>(V)</enum><text>through validated
complaints; and</text>
</subclause></clause><clause id="idDEF3DEDE14744CA4A0BF8B7FE4E7F994"><enum>(vii)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</clause></subparagraph><subparagraph id="IDc810848b32244745baf4fc0a1de6aa8f"><enum>(C)</enum><header>Annual
reports</header>
<clause id="idCBF045F99A5B4A81BA13B3EE824E3D78"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="id2DEA3EAE2A414C4A909C128EE7162B5C"><enum>(I)</enum><text>the compliance of
the security-based swap execution facility with this title; and</text>
</subclause><subclause id="id46B5290DCB33483BACA9DF2A39D2E102"><enum>(II)</enum><text>the policies and
procedures, including the code of ethics and conflict of interest policies, of
the security-based security-based swap execution facility.</text>
</subclause></clause><clause id="id3E5FA8A87CFF4937914EBFB0DF88F807"><enum>(ii)</enum><header>Requirements</header><text>The
chief compliance officer shall—</text>
<subclause id="id2069FCCB98A44307BFDB118343AB3CAC"><enum>(I)</enum><text>submit each
report described in clause (i) with the appropriate financial report of the
security-based swap execution facility that is required to be submitted to the
Commission pursuant to this section; and</text>
</subclause><subclause id="id6AD6CFA83D8242DEACE8F45121B0F5C2"><enum>(II)</enum><text>include in the
report a certification that, under penalty of law, the report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="ID5bcb2eb0a1b345049d0534bcf13e29b3"><enum>(e)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a security-based swap
execution facility from registration under this section if the Commission finds
that the facility is subject to comparable, comprehensive supervision and
regulation on a consolidated basis by the Commodity Futures Trading
Commission.</text>
</subsection><subsection id="IDc8e7a464e11d4a6eaafe64e421b064db"><enum>(f)</enum><header>Rules</header><text>The
Commission shall prescribe rules governing the regulation of security-based
swap execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC96E6E9390145A395857DE20C231554"><enum>(d)</enum><header>Segregation of
assets held as collateral in security-based swap transactions</header><text display-inline="yes-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3D (as added by
subsection (b)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HC03C03BB15E44B53AC45DDF18BE6A7E6" style="OLC">
<section commented="no" id="H619375BECED24E83934793D786E4C677"><enum>3E.</enum><header>Segregation of
assets held as collateral in security-based swap transactions</header>
<subsection id="IDccff9aaddf2e4355b12404ae7f27646e"><enum>(a)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person to accept any
money, securities, or property (or to extend any credit in lieu of money,
securities, or property) from, for, or on behalf of a security-based swaps
customer or to margin, guarantee, or secure a security-based swap cleared by or
through a clearing agency (including money, securities, or property accruing to
the customer as the result of such a security-based swap), unless the person
shall have registered under this title with the Commission as a broker, dealer,
or security-based swap dealer, and the registration shall not have expired nor
been suspended nor revoked.</text>
</subsection><subsection id="ID83203aa9a0db45218c46e85fbf09f1a8"><enum>(b)</enum><header>Cleared
security-based swaps</header>
<paragraph id="ID2155a997fd3b491c9fe89e0d53db73a2"><enum>(1)</enum><header>Segregation
required</header><text>A broker, dealer, or security-based swap dealer shall
treat and deal with all money, securities, and property of any security-based
swaps customer received to margin, guarantee, or secure a security-based swap
cleared by or though a clearing agency (including money, securities, or
property accruing to the security-based swaps customer as the result of such a
security-based swap) as belonging to the security-based swaps customer.</text>
</paragraph><paragraph id="IDaecb8f113bc74bd49b55b8f3d6382be5"><enum>(2)</enum><header>Commingling
prohibited</header><text>Money, securities, and property of a security-based
swaps customer described in paragraph (1) shall be separately accounted for and
shall not be commingled with the funds of the broker, dealer, or security-based
swap dealer or be used to margin, secure, or guarantee any trades or contracts
of any security-based swaps customer or person other than the person for whom
the same are held.</text>
</paragraph></subsection><subsection id="IDa1be247118504e6baecd820979a0932b"><enum>(c)</enum><header>Exceptions</header>
<paragraph id="ID6ae51d95204a48f9a60279a27059bf41"><enum>(1)</enum><header>Use of
funds</header>
<subparagraph id="ID0e2ad0d16e4d4389840ad6ad26c8714d"><enum>(A)</enum><header>In
general</header><text>Notwithstanding subsection (b), money, securities, and
property of a security-based swaps customer of a broker, dealer, or
security-based swap dealer described in subsection (b) may, for convenience, be
commingled and deposited in the same 1 or more accounts with any bank or trust
company or with a clearing agency.</text>
</subparagraph><subparagraph id="ID644d12e63be6489cb152a79f86729030"><enum>(B)</enum><header>Withdrawal</header><text>Notwithstanding
subsection (b), such share of the money, securities, and property described in
subparagraph (A) as in the normal course of business shall be necessary to
margin, guarantee, secure, transfer, adjust, or settle a cleared security-based
swap with a clearing agency, or with any member of the clearing agency, may be
withdrawn and applied to such purposes, including the payment of commissions,
brokerage, interest, taxes, storage, and other charges, lawfully accruing in
connection with the cleared security-based swap.</text>
</subparagraph></paragraph><paragraph id="ID306b94a0c38f4646b455c8e367288c2a"><enum>(2)</enum><header>Commission
action</header><text>Notwithstanding subsection (b), in accordance with such
terms and conditions as the Commission may prescribe by rule, regulation, or
order, any money, securities, or property of the security-based swaps customer
of a broker, dealer, or security-based swap dealer described in subsection (b)
may be commingled and deposited as provided in this section with any other
money, securities, or property received by the broker, dealer, or
security-based swap dealer and required by the Commission to be separately
accounted for and treated and dealt with as belonging to the security-based
swaps customer of the broker, dealer, or security-based swap dealer.</text>
</paragraph></subsection><subsection id="ID29e729df6094490390fdc760f844149d"><enum>(d)</enum><header>Permitted
investments</header><text>Money described in subsection (b) may be invested in
obligations of the United States, in general obligations of any State or of any
political subdivision of a State, and in obligations fully guaranteed as to
principal and interest by the United States, or in any other investment that
the Commission may by rule or regulation prescribe, and such investments shall
be made in accordance with such rules and regulations and subject to such
conditions as the Commission may prescribe.</text>
</subsection><subsection id="ID48eb8b9188144538a183daedcf85e21c"><enum>(e)</enum><header>Prohibition</header><text>It
shall be unlawful for any person, including any clearing agency and any
depository institution, that has received any money, securities, or property
for deposit in a separate account or accounts as provided in subsection (b) to
hold, dispose of, or use any such money, securities, or property as belonging
to the depositing broker, dealer, or security-based swap dealer or any person
other than the swaps customer of the broker, dealer, or security-based swap
dealer.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE5C0510E8F824B0F92570F63D3735BC3"><enum>(e)</enum><header>Trading in
security-based swaps</header><text>Section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f) is amended by adding at the end the following:</text>
<quoted-block id="HA07A08B166464A63A6A10A69ECEA3821" style="OLC">
<subsection id="H402BED558D7B482297FE05EBB9127B72"><enum>(l)</enum><header>Security-based
swaps</header><text>It shall be unlawful for any person to effect a transaction
in a security-based swap with or for a person that is not an eligible contract
participant, unless such transaction is effected on a national securities
exchange registered pursuant to subsection
(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA50600979A43476785017671A54FB409"><enum>(f)</enum><header>Additions of
security-based swaps to certain enforcement provisions</header><text>Section
9(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is amended by
striking paragraphs (1) through (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H13B840BF75484D57B8C7DFF71E02FD8E" style="OLC">
<paragraph id="HF9C2272489384D748657BBB7537F87CB"><enum>(1)</enum><text>any
transaction in connection with any security whereby any party to such
transaction acquires—</text>
<subparagraph id="id415F5E78146F4CD2AB739F4B6649E625"><enum>(A)</enum><text>any put, call,
straddle, or other option or privilege of buying the security from or selling
the security to another without being bound to do so;</text>
</subparagraph><subparagraph id="id4AD78ABB43C048D4B84537B469360A2B"><enum>(B)</enum><text>any security
futures product on the security; or</text>
</subparagraph><subparagraph id="id925F76A893BD4D4A89FD0550C9D66B64"><enum>(C)</enum><text>any
security-based swap involving the security or the issuer of the
security;</text>
</subparagraph></paragraph><paragraph id="H30B16869EC8D495BA02B745CAFCFBC68"><enum>(2)</enum><text>any
transaction in connection with any security with relation to which such person
has, directly or indirectly, any interest in any—</text>
<subparagraph id="idB8CEC155E37D4D82893A39AD627B5E74"><enum>(A)</enum><text>such put, call,
straddle, option, or privilege;</text>
</subparagraph><subparagraph id="id7989FE4C84A9435F893FC25A55A4F824"><enum>(B)</enum><text>such security
futures product; or</text>
</subparagraph><subparagraph id="id7E6AB035C9BB468A86F7C70B4D43E975"><enum>(C)</enum><text>such
security-based swap; or</text>
</subparagraph></paragraph><paragraph id="HEC312E5193084E8F96647675B8CF5E7E"><enum>(3)</enum><text>any
transaction in any security for the account of any person who such person has
reason to believe has, and who actually has, directly or indirectly, any
interest in any—</text>
<subparagraph id="id592A5A4B88E444B694C2BDA4F0EC9487"><enum>(A)</enum><text>such put, call,
straddle, option, or privilege;</text>
</subparagraph><subparagraph id="id86322DC1340A4872B68EFD380591067B"><enum>(B)</enum><text>such security
futures product with relation to such security; or</text>
</subparagraph><subparagraph id="id5A1F63A6F1FE4A1A83C8B72CE52B9621"><enum>(C)</enum><text>any
security-based swap involving such security or the issuer of such
security.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF94A8EBC47CD458493EA3B25DF4DAC01"><enum>(g)</enum><header>Rulemaking
authority to prevent fraud, manipulation and deceptive conduct in
security-based swaps</header><text>Section 9 of the Securities Exchange Act of
1934 (15 U.S.C. 78i) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H80D4B7A01A9D4D8394A3054D3092FBC8" style="OLC">
<subsection id="H408AFA1E9FE148EEA9B3EE5905C58FAA"><enum>(j)</enum><text>It
shall be unlawful for any person, directly or indirectly, by the use of any
means or instrumentality of interstate commerce or of the mails, or of any
facility of any national securities exchange, to effect any transaction in, or
to induce or attempt to induce the purchase or sale of, any security-based
swap, in connection with which such person engages in any fraudulent,
deceptive, or manipulative act or practice, makes any fictitious quotation, or
engages in any transaction, practice, or course of business which operates as a
fraud or deceit upon any person. The Commission shall, for the purposes of this
subsection, by rules and regulations define, and prescribe means reasonably
designed to prevent, such transactions, acts, practices, and courses of
business as are fraudulent, deceptive, or manipulative, and such quotations as
are
fictitious.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5F3CFE882805400BB6BF799EF27F6C68"><enum>(h)</enum><header>Position limits
and position accountability for security-based swaps</header><text>The
Securities Exchange Act of 1934 is amended by inserting after section 10A (15
U.S.C. 78j–1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H2BC80AAA2B4B4EF7A329482A1329E020" style="OLC">
<section id="H5EE47277D9DA4D639966E51A44D3B177"><enum>10B.</enum><header>Position limits
and position accountability for security-based swaps and large trader
reporting</header>
<subsection id="H2C899F76187848D69F9866376EF4E599"><enum>(a)</enum><header>Position
limits</header><text display-inline="yes-display-inline">As a means reasonably
designed to prevent fraud and manipulation, the Commission shall, by rule or
regulation, as necessary or appropriate in the public interest or for the
protection of investors, establish limits (including related hedge exemption
provisions) on the size of positions in any security-based swap that may be
held by any person. In establishing such limits, the Commission may require any
person to aggregate positions in—</text>
<paragraph id="HCEC1A6C80AE2480FA1B08944939DD8BF"><enum>(1)</enum><text>any
security-based swap and any security or loan or group of securities or loans on
which such security-based swap is based, which such security-based swap
references, or to which such security-based swap is related as described in
paragraph (68) of section 3(a), and any other instrument relating to such
security or loan or group or index of securities or loans; or</text>
</paragraph><paragraph id="H849603974AAB4965852288A9A05872CF"><enum>(2)</enum><text>any
security-based swap and—</text>
<subparagraph id="id22B19B2B70A7416D835D9333EE9A4E58"><enum>(A)</enum><text>any security or
group or index of securities, the price, yield, value, or volatility of which,
or of which any interest therein, is the basis for a material term of such
security-based swap as described in paragraph (68) of section 3(a); and</text>
</subparagraph><subparagraph id="idECCD70F035724C6F8BE52BFEFA441D9B"><enum>(B)</enum><text>any other
instrument relating to the same security or group or index of securities
described under subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="H44BD4BFA77854906B50B8E0B9822125D"><enum>(b)</enum><header>Exemptions</header><text>The
Commission, by rule, regulation, or order, may conditionally or unconditionally
exempt any person or class of persons, any security-based swap or class of
security-based swaps, or any transaction or class of transactions from any
requirement the Commission may establish under this section with respect to
position limits.</text>
</subsection><subsection id="H6DDD8DB00D0A4ECFAA2BDD83F39A3F25"><enum>(c)</enum><header>SRO
Rules</header>
<paragraph id="H637BCE3BBA204EA78E23C0E7FD5B8649"><enum>(1)</enum><header>In
general</header><text>As a means reasonably designed to prevent fraud or
manipulation, the Commission, by rule, regulation, or order, as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title, may direct a
self-regulatory organization—</text>
<subparagraph id="H649E9FA8248C45E98260EF36946A087C"><enum>(A)</enum><text>to adopt rules
regarding the size of positions in any security-based swap that may be held
by—</text>
<clause id="HA44CC2C0AEA5418594ABD5C013D1BD9A"><enum>(i)</enum><text>any
member of such self-regulatory organization; or</text>
</clause><clause id="HEB84820001864CACBDBDD90988FE6D13"><enum>(ii)</enum><text>any
person for whom a member of such self-regulatory organization effects
transactions in such security-based swap; and</text>
</clause></subparagraph><subparagraph id="HC77C714F9F794B1BAED419385E59480F"><enum>(B)</enum><text>to adopt rules
reasonably designed to ensure compliance with requirements prescribed by the
Commission under this subsection.</text>
</subparagraph></paragraph><paragraph id="H3BAC00CBBA234897BF9611379D608E07"><enum>(2)</enum><header>Requirement to
aggregate positions</header><text>In establishing the limits under paragraph
(1), the self-regulatory organization may require such member or person to
aggregate positions in—</text>
<subparagraph id="H84E990C9B1614245AA3E4D94802EC3FC"><enum>(A)</enum><text>any security-based
swap and any security or loan or group or narrow-based security narrow-based
security index of securities or loans on which such security-based swap is
based, which such security-based swap references, or to which such
security-based swap is related as described in section 3(a)(68), and any other
instrument relating to such security or loan or group or narrow-based security
index of securities or loans; or</text>
</subparagraph><subparagraph id="H8C58BC9521CE4C16B1ADBC015C6F2259"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H5B0D24DA6A2940958F8703A926FFFE5A"><enum>(i)</enum><text>any security-based swap;
and</text>
</clause><clause id="HA1AFB37D290D4210A3A15607495E797F" indent="up1"><enum>(ii)</enum><text>any security-based swap and any
other instrument relating to the same security or group or narrow-based
security index of securities.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HDB7F1BABE6484937846C3575A23F3A5E"><enum>(d)</enum><header>Large trader
reporting</header><text display-inline="yes-display-inline">The Commission, by
rule or regulation, may require any person that effects transactions for such
person’s own account or the account of others in any securities-based swap or
uncleared security-based swap and any security or loan or group or narrow-based
security index of securities or loans as set forth in paragraphs (1) and (2) of
subsection (a) under this section to report such information as the Commission
may prescribe regarding any position or positions in any security-based swap or
uncleared security-based swap and any security or loan or group or narrow-based
security index of securities or loans and any other instrument relating to such
security or loan or group or narrow-based security index of securities or loans
as set forth in paragraphs (1) and (2) of subsection (a) under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB5A399D6B69048F4BAB067BFF200DF77"><enum>(i)</enum><header>Public reporting
and repositories for security-based swaps</header><text>Section 13 of the
Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id637C1C5D083B490AB08B0EC78E0C3FCE" style="OLC">
<subsection id="idA1306F522C8F4756A8D060E3BA8901C0"><enum>(m)</enum><header>Public
availability of security-based swap transaction data</header>
<paragraph id="id4E3A76236EE64EB1996E4331C3ED2FCF"><enum>(1)</enum><header>In
general</header>
<subparagraph id="idF7D3A66E19424197AD763BBF7AFD25AE"><enum>(A)</enum><header>Definition of
real-time public reporting</header><text>In this paragraph, the term
<term>real-time public reporting</term> means to report data relating to a
security-based swap transaction as soon as technologically practicable after
the time at which the security-based swap transaction has been executed.</text>
</subparagraph><subparagraph id="id133DB2BFA09342D5AA0F749EB5B81435"><enum>(B)</enum><header>Purpose</header><text>The
purpose of this section is to authorize the Commission to make security-based
swap transaction and pricing data available to the public in such form and at
such times as the Commission determines appropriate to enhance price
discovery.</text>
</subparagraph><subparagraph id="id757439017B4F4620B5AFF07F6302D7A6"><enum>(C)</enum><header>General
rule</header><text>The Commission is authorized to provide by rule for the
public availability of security-based swap transaction and pricing data as
follows:</text>
<clause id="idE7A6010303E34B649DE0F4C8E9E73756"><enum>(i)</enum><text>With
respect to those security-based swaps that are subject to the mandatory
clearing requirement described in section 3C(a)(1) (including those
security-based swaps that are exempted from the requirement pursuant to section
3C(a)(10)), the Commission shall require real-time public reporting for such
transactions.</text>
</clause><clause id="id338147CC5A8B46EC822B376FBDD2AFEB"><enum>(ii)</enum><text>With
respect to those security-based swaps that are not subject to the mandatory
clearing requirement described in subsection section 3C(a)(1), but are cleared
at a registered clearing agency, the Commission shall require real-time public
reporting for such transactions.</text>
</clause><clause id="idEC7D70B784CC4CB5AE47B28A1A1277C7"><enum>(iii)</enum><text>With respect to
security-based swaps that are not cleared at a registered clearing agency and
which are reported to a security-based swap data repository or the Commission
under section 3C(a), the Commission 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 such security-based swap trading volumes and
positions.</text>
</clause><clause id="id131431B0B27F43F780EA2086E80E514B"><enum>(iv)</enum><text>With
respect to security-based swaps that are exempt from the requirements of
section 3C(a)(1), but are subject to the requirements of section 3C(a)(8), the
Commission shall require real-time public reporting for such
transactions.</text>
</clause></subparagraph><subparagraph id="idB5E80DFE0E3A4B77B5B03CB030D81C2D"><enum>(D)</enum><header>Registered
entities and public reporting</header><text>The Commission may require
registered entities to publicly disseminate the security-based swap transaction
and pricing data required to be reported under this paragraph.</text>
</subparagraph><subparagraph id="idBFC552AC3B80411EB6E30164C8B010AF"><enum>(E)</enum><header>Rulemaking
required</header><text>With respect to the rule providing for the public
availability of transaction and pricing data for security-based swaps described
in clauses (i) and (ii) of subparagraph (C), the rule promulgated by the
Commission shall contain provisions—</text>
<clause id="id3E89839C8D9C4990837C73DA0A9B87D5"><enum>(i)</enum><text>to
ensure such information does not identify the participants;</text>
</clause><clause id="id838769A483AE44E59E396DC02C6B07C0"><enum>(ii)</enum><text>to
specify the criteria for determining what constitutes a large notional
security-based swap transaction (block trade) for particular markets and
contracts;</text>
</clause><clause id="idCECEE89D754D48F19E8E7C48555ADDB3"><enum>(iii)</enum><text>to
specify the appropriate time delay for reporting large notional security-based
swap transactions (block trades) to the public; and</text>
</clause><clause id="id0E124732E92042C8B067FBCAD683CAA4"><enum>(iv)</enum><text>that
take into account whether the public disclosure will materially reduce market
liquidity.</text>
</clause></subparagraph><subparagraph id="id859FF4C6186C4096A3283D0FE81DB953"><enum>(F)</enum><header>Timeliness of
reporting</header><text>Parties to a security-based swap (including agents of
the parties to a security-based swap) shall be responsible for reporting
security-based swap transaction information to the appropriate registered
entity in a timely manner as may be prescribed by the Commission.</text>
</subparagraph></paragraph><paragraph commented="no" id="id1EA3DF96331342F8B925240D8192BD69"><enum>(2)</enum><header>Semiannual and
annual public reporting of aggregate security-based swap data</header>
<subparagraph commented="no" id="id0A46D9B0CDF4411E9E3BF9FA1F4034F3"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
issue a written report on a semiannual and annual basis to make available to
the public information relating to—</text>
<clause commented="no" id="idEA6A8990F8784FBB849E0BE6A4885541"><enum>(i)</enum><text>the trading and
clearing in the major security-based swap categories; and</text>
</clause><clause commented="no" id="id65623D04D6FF45C8AAF0A2FAE811BD60"><enum>(ii)</enum><text>the market
participants and developments in new products.</text>
</clause></subparagraph><subparagraph commented="no" id="id74F6B2E6BB1A44E489898B0EB2815B11"><enum>(B)</enum><header>Use;
consultation</header><text>In preparing a report under subparagraph (A), the
Commission shall—</text>
<clause commented="no" id="id7D7D7B5B206641DDB0D4DDBD72BA4C1D"><enum>(i)</enum><text>use information
from security-based swap data repositories and derivatives clearing
organizations; and</text>
</clause><clause commented="no" id="idD9D6A8B171984355B2D557B81BC1EB0E"><enum>(ii)</enum><text>consult with the
Office of the Comptroller of the Currency, the Bank for International
Settlements, and such other regulatory bodies as may be necessary.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H74E93339ACFF4DCEBFF71BA15D40E1EA"><enum>(n)</enum><header>Security-based
swap data repositories</header>
<paragraph id="H6082C31EE4804264983362338FA609F1"><enum>(1)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person, unless
registered with the Commission, directly or indirectly, to make use of the
mails or any means or instrumentality of interstate commerce to perform the
functions of a security-based swap data repository.</text>
</paragraph><paragraph id="H086A96BC691C4F2F95013A4656A28596"><enum>(2)</enum><header>Inspection and
examination</header><text>Each registered security-based swap data repository
shall be subject to inspection and examination by any representative of the
Commission.</text>
</paragraph><paragraph id="IDb9ad352845424fbf80108e5129d08fe4"><enum>(3)</enum><header>Compliance with
core principles</header>
<subparagraph id="ID8cbe020159ce48028074efdb42b2e2b4"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a
security-based swap data repository, the security-based swap data repository
shall comply with—</text>
<clause id="ID4622e83d02f94deeb841a535c0c7e900"><enum>(i)</enum><text>the
core principles described in this subsection; and</text>
</clause><clause id="ID7cbc78a3b84e429aa2cd931126b2f5c4"><enum>(ii)</enum><text>any
requirement that the Commission may impose by rule or regulation.</text>
</clause></subparagraph><subparagraph id="ID1c3c369c5b784acb92b66ea20596c3ca"><enum>(B)</enum><header>Reasonable
discretion of security-based swap data repository</header><text>Unless
otherwise determined by the Commission, by rule or regulation, a security-based
swap data repository described in subparagraph (A) shall have reasonable
discretion in establishing the manner in which the security-based swap data
repository complies with the core principles described in this
subsection.</text>
</subparagraph></paragraph><paragraph id="HD5BB07F756784B93BAB5DF28271ACC22"><enum>(4)</enum><header>Standard
setting</header>
<subparagraph id="H72B5A088E7DD479E8A2F9E53AF87F209"><enum>(A)</enum><header>Data
identification</header><text>The Commission shall prescribe standards that
specify the data elements for each security-based swap that shall be collected
and maintained by each registered security-based swap data repository.</text>
</subparagraph><subparagraph id="H4CAF5BF8DF214F10A2B0AFF3B4D64B57"><enum>(B)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for security-based swap data
repositories.</text>
</subparagraph><subparagraph id="HDEDD421DDFEF43AB9C6D7A761351D55E"><enum>(C)</enum><header>Comparability</header><text>The
standards prescribed by the Commission under this subsection shall be
comparable to the data standards imposed by the Commission on clearing agencies
in connection with their clearing of security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H7830946196664AFBBC61269E52F475FF"><enum>(5)</enum><header>Duties</header><text>A
security-based swap data repository shall—</text>
<subparagraph id="ID78e2457a7ff14f13aba2c332e1d35feb"><enum>(A)</enum><text>accept data
prescribed by the Commission for each security-based swap under subsection
(b);</text>
</subparagraph><subparagraph id="ID07787cba0f3a4cc28a4cfd877718f5bd"><enum>(B)</enum><text>confirm with both
counterparties to the security-based swap the accuracy of the data that was
submitted;</text>
</subparagraph><subparagraph id="IDfe4d8755232e4b75952d8fc5288cf474"><enum>(C)</enum><text>maintain the data
described in subparagraph (A) in such form, in such manner, and for such period
as may be required by the Commission;</text>
</subparagraph><subparagraph id="ID5630bbd0c79e424c897f26197548e5f1"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="id768DC14A1DA044B3B14D36D0E2210698"><enum>(i)</enum><text>provide direct
electronic access to the Commission (or any designee of the Commission,
including another registered entity); and</text>
</clause><clause id="idFA0C200C619049C5A6BB9F348BF53321" indent="up1"><enum>(ii)</enum><text>provide the information described
in subparagraph (A) in such form and at such frequency as the Commission may
require to comply with the public reporting requirements set forth in
subsection (m);</text>
</clause></subparagraph><subparagraph id="ID4e81816ca71f44d88dfe16819988375e"><enum>(E)</enum><text>at the direction
of the Commission, establish automated systems for monitoring, screening, and
analyzing security-based swap data;</text>
</subparagraph><subparagraph id="id4E6450ABB02F420DA585EB5940567D72"><enum>(F)</enum><text>maintain the
privacy of any and all security-based swap transaction information that the
security-based swap data repository receives from a security-based swap dealer,
counterparty, or any other registered entity; and</text>
</subparagraph><subparagraph id="ID822a2206438841b8aaf78c284de9ebcd"><enum>(G)</enum><text>on a confidential
basis pursuant to section 24, upon request, and after notifying the Commission
of the request, make available all data obtained by the security-based swap
data repository, including individual counterparty trade and position data,
to—</text>
<clause id="IDf19f16c202ab4f9ca1601710bddf9c0a"><enum>(i)</enum><text>each
appropriate prudential regulator;</text>
</clause><clause id="IDb4e0366f141e48958d341341dfbc0bda"><enum>(ii)</enum><text>the
Financial Stability Oversight Council;</text>
</clause><clause id="id9E719C017B014A67BEA3E36FDDA9CCBE"><enum>(iii)</enum><text>the
Commodity Futures Trading Commission;</text>
</clause><clause id="IDfb6549b8f3df426aad5dce7c717ac1d6"><enum>(iv)</enum><text>the
Department of Justice; and</text>
</clause><clause id="ID3978041b42314619b69b83d1545c0dc7"><enum>(v)</enum><text>any
other person that the Commission determines to be appropriate,
including—</text>
<subclause id="IDdbd555c246754d63be6293074660d2e4"><enum>(I)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</subclause><subclause id="ID65be954fb88641c2947b472b15bcfa12"><enum>(II)</enum><text>foreign central
banks; and</text>
</subclause><subclause id="ID3aca427c3ff146c48b7476a20c8dd4af"><enum>(III)</enum><text>foreign
ministries.</text>
</subclause></clause></subparagraph><subparagraph id="ID020d0e5cc3634152b25b364f6d630366"><enum>(H)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the security-based swap data
repository may share information with any entity described in subparagraph
(G)—</text>
<clause id="id287D85B28D5C410590DAAD4082EEA474"><enum>(i)</enum><text>the
security-based swap data repository shall receive a written agreement from each
entity stating that the entity shall abide by the confidentiality requirements
described in section 24 relating to the information on security-based swap
transactions that is provided; and</text>
</clause><clause id="id0983AAA7512E4DF6A46279588579267F"><enum>(ii)</enum><text>each
entity shall agree to indemnify the security-based swap data repository and the
Commission for any expenses arising from litigation relating to the information
provided under section 24.</text>
</clause></subparagraph></paragraph><paragraph id="IDaf17f06215b54f6588d56d6b6efdab81"><enum>(6)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="ID67cbce8820a4459c88592692a55059aa"><enum>(A)</enum><header>In
general</header><text>Each security-based swap data repository shall designate
an individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="ID5d8a9760fe634652baafd7556663721d"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="ID63a6efc619cf4533b3ba52bcee20173b"><enum>(i)</enum><text>report directly
to the board or to the senior officer of the security-based swap data
repository;</text>
</clause><clause id="ID5fbd14075e81427d84b85d67f284ef1d"><enum>(ii)</enum><text>review the
compliance of the security-based swap data repository with respect to the core
principles described in paragraph (7);</text>
</clause><clause id="ID2848a36fbf3a4ca19f6413b26eab064f"><enum>(iii)</enum><text>in
consultation with the board of the security-based swap data repository, a body
performing a function similar to the board of the security-based swap data
repository, or the senior officer of the security-based swap data repository,
resolve any conflicts of interest that may arise;</text>
</clause><clause id="ID9723c079b6484822b8376365c40a0598"><enum>(iv)</enum><text>be
responsible for administering each policy and procedure that is required to be
established pursuant to this section;</text>
</clause><clause id="ID1f7c5c6712464f2aae83f1e3b42eea6c"><enum>(v)</enum><text>ensure compliance
with this title (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</clause><clause id="ID9e8aac02204e4ccb9b22fb73306d5735"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<subclause id="IDae49ecb662e44bf2ae1e4d5c2e297595"><enum>(I)</enum><text>compliance office
review;</text>
</subclause><subclause id="ID32d37c0c3c9c4f4e947e66a033acd6de"><enum>(II)</enum><text>look-back;</text>
</subclause><subclause id="ID2799fc7919f54bd884e20efa2bc1dff8"><enum>(III)</enum><text>internal or
external audit finding;</text>
</subclause><subclause id="IDeff8881b32334b5d82d5e8b87c9cf830"><enum>(IV)</enum><text>self-reported
error; or</text>
</subclause><subclause id="ID1a7176bc82d74e778fbb0b69f043505a"><enum>(V)</enum><text>validated
complaint; and</text>
</subclause></clause><clause id="IDcb225527946c42e4861f2ea4395c9981"><enum>(vii)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</clause></subparagraph><subparagraph id="IDe83ef5860d084d15bfac717fbec95ca6"><enum>(C)</enum><header>Annual
reports</header>
<clause id="ID732dc28c2cbc48149feb6da548aa53d3"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="idB52C1BDCBD62491984E96B68469660E6"><enum>(I)</enum><text>the compliance of
the security-based swap data repository of the chief compliance officer with
respect to this title (including regulations); and</text>
</subclause><subclause id="ID02550be98f5c46a885df87ef842dd7aa"><enum>(II)</enum><text>each policy and
procedure of the security-based swap data repository of the chief compliance
officer (including the code of ethics and conflict of interest policies of the
security-based swap data repository).</text>
</subclause></clause><clause id="ID0ea3708e0d254ba59784023b22be1e97"><enum>(ii)</enum><header>Requirements</header><text>A
compliance report under clause (i) shall—</text>
<subclause id="ID6a9f4445e45a4e95ab7731e3c551ba1f"><enum>(I)</enum><text>accompany each
appropriate financial report of the security-based swap data repository that is
required to be furnished to the Commission pursuant to this section; and</text>
</subclause><subclause id="ID22f82b63be6f4578b86d6169e29989f3"><enum>(II)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id46BB54663F0E4EB9829E306B24F6E29D"><enum>(7)</enum><header>Core principles
applicable to security-based swap data repositories</header>
<subparagraph commented="no" id="IDfa8a15eba7464bfd819e636ea15f5a8b"><enum>(A)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the swap data repository shall not—</text>
<clause commented="no" id="IDdc16fdc9142c4b1ea22b34a04a3464f9"><enum>(i)</enum><text>adopt any rule or
take any action that results in any unreasonable restraint of trade; or</text>
</clause><clause commented="no" id="ID02c9a534356447fb95327d2bad2d4261"><enum>(ii)</enum><text>impose any
material anticompetitive burden on the trading, clearing, or reporting of
transactions.</text>
</clause></subparagraph><subparagraph commented="no" id="ID475d69c136bc492cbd6836a3898e3ea2"><enum>(B)</enum><header>Governance
arrangements</header><text>Each security-based swap data repository shall
establish governance arrangements that are transparent—</text>
<clause commented="no" id="IDaec39c6e2cec4bd785c06c2a28bb572c"><enum>(i)</enum><text>to fulfill public
interest requirements; and</text>
</clause><clause commented="no" id="IDb0ff2b05b0f84dcdb47d911dda43fc8a"><enum>(ii)</enum><text>to support the
objectives of the Federal Government, owners, and participants.</text>
</clause></subparagraph><subparagraph commented="no" id="ID9380340e79974538a339025fd5c21bec"><enum>(C)</enum><header>Conflicts of
interest</header><text>Each security-based swap data repository shall—</text>
<clause commented="no" id="ID09202272384f4a78a43a2503dc14826d"><enum>(i)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the security-based swap data repository; and</text>
</clause><clause commented="no" id="ID59fa3b07e414443f8623af71c895592b"><enum>(ii)</enum><text>establish a
process for resolving any conflicts of interest described in clause (i).</text>
</clause></subparagraph></paragraph><paragraph id="idC44F2CBB51524698B6A7479417B88C93"><enum>(8)</enum><header>Required
registration for security-based swap data repositories</header><text display-inline="yes-display-inline">Any person that is required to be
registered as a security-based swap data repository under this subsection shall
register with the Commission, regardless of whether that person is also
licensed under the Commodity Exchange Act as a swap data repository.</text>
</paragraph><paragraph id="IDd29bec368fef48d18dbd1b4e59a5b59f"><enum>(9)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered under this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD89B676A7009400DB12D3C9BF5456464"><enum>764.</enum><header>Registration
and regulation of security-based swap dealers and major security-based 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 id="HB7315DA81EBA49B4BDE5EF046F542CC9"><enum>15F.</enum><header>Registration
and regulation of security-based swap dealers and major security-based swap
participants</header>
<subsection id="IDb6a70b2930d24567a45a6a4641edf483"><enum>(a)</enum><header>Registration</header>
<paragraph id="IDb00d1da27f1b4245850921f266da31e5"><enum>(1)</enum><header>security-based
swap dealers</header><text>It shall be unlawful for any person to act as a
security-based swap dealer unless the person is registered as a security-based
swap dealer with the Commission.</text>
</paragraph><paragraph id="IDfaffb12f597d4c1d903e69d4f2caf951"><enum>(2)</enum><header>Major
security-based swap participants</header><text>It shall be unlawful for any
person to act as a major security-based swap participant unless the person is
registered as a major security-based swap participant with the
Commission.</text>
</paragraph></subsection><subsection id="IDda80cbf4afed4315aa9f7c18e205c3ca"><enum>(b)</enum><header>Requirements</header>
<paragraph id="IDb7eddae710dc4800929d8bfd81b7e087"><enum>(1)</enum><header>In
general</header><text>A person shall register as a security-based swap dealer
or major security-based swap participant by filing a registration application
with the Commission.</text>
</paragraph><paragraph id="IDbe70a6e1e694454da9bc386aa273fab5"><enum>(2)</enum><header>Contents</header>
<subparagraph id="id8D963B08B605454981ED738E9A585EE5"><enum>(A)</enum><header>In
general</header><text>The application shall be made in such form and manner as
prescribed by the Commission, and shall contain such information, as the
Commission considers necessary concerning the business in which the applicant
is or will be engaged.</text>
</subparagraph><subparagraph id="id028AF38CF64641FDAC6B274238C15656"><enum>(B)</enum><header>Continual
reporting</header><text>A person that is registered as a security-based swap
dealer or major security-based swap participant shall continue to submit to the
Commission reports that contain such information pertaining to the business of
the person as the Commission may require.</text>
</subparagraph></paragraph><paragraph id="ID3dd8e59e9e034e89952b3193ed49fe6b"><enum>(3)</enum><header>Expiration</header><text>Each
registration under this section shall expire at such time as the Commission may
prescribe by rule or regulation.</text>
</paragraph><paragraph id="IDbc95414114d446f798ad6a0202d35246"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (c), (e), and (f), the Commission may prescribe
rules applicable to security-based swap dealers and major security-based swap
participants, including rules that limit the activities of non-bank
security-based swap dealers and non-bank major security-based swap
participants.</text>
</paragraph><paragraph id="IDfcd02f088ac1431f89df7c3054d03c53"><enum>(5)</enum><header>Transition</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>, the Commission shall issue rules under this section
to provide for the registration of security-based swap dealers and major
security-based swap participants.</text>
</paragraph><paragraph id="ID1419cd5b31d04f56bc5a30bfd92dcfb1"><enum>(6)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order of the Commission, it shall be unlawful
for a security-based swap dealer or a major security-based swap participant to
permit any person associated with a security-based swap dealer or a major
security-based swap participant who is subject to a statutory disqualification
to effect or be involved in effecting security-based swaps on behalf of the
security-based swap dealer or major security-based swap participant, if the
security-based swap dealer or major security-based swap participant knew, or in
the exercise of reasonable care should have known, of the statutory
disqualification.</text>
</paragraph></subsection><subsection id="ID9c88c34954e14cd2b09933fa18b28bdb"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="ID26eab166f03f47b58a7f4c42d290af27"><enum>(1)</enum><header>Security-based
swap dealer</header><text>Any person that is required to be registered as a
security-based swap dealer under this section shall register with the
Commission, regardless of whether the person also is registered with the
Commodity Futures Trading Commission as a swap dealer.</text>
</paragraph><paragraph id="ID23061bb2e9a7422a92486cb3e9cd7f6b"><enum>(2)</enum><header>Major
security-based swap participant</header><text>Any person that is required to be
registered as a major security-based swap participant under this section shall
register with the Commission, regardless of whether the person also is
registered with the Commodity Futures Trading Commission as a major swap
participant.</text>
</paragraph></subsection><subsection id="ID448d4172ad1d499dbb0a270627120431"><enum>(d)</enum><header>Rulemaking</header>
<paragraph id="ID5970181b769c448fac1b56ea9eb18736"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt rules for persons that are
registered as security-based swap dealers or major security-based swap
participants under this section.</text>
</paragraph><paragraph id="ID623682ddf664417985de7a5dfdfde1fd"><enum>(2)</enum><header>Exception for
prudential requirements</header>
<subparagraph id="idFA08A099AF3643409C4A98B0D86711AF"><enum>(A)</enum><header>In
general</header><text>The Commission may not prescribe rules imposing
prudential requirements on security-based swap dealers or major security-based
swap participants that are depository institutions, as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</subparagraph><subparagraph id="id078785CE8E36487AA76AC2C568D6E28A"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not limit the authority of the Commission to prescribe appropriate
business conduct, reporting, and recordkeeping requirements on security-based
swap dealers or major security-based swap participants that are depository
institutions to protect investors.</text>
</subparagraph></paragraph></subsection><subsection id="ID28bd87c5bebd43a5ab4fd6f9e70e9e6a"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="IDc0ba4cc2481249dc8c7727e2ed9b0c81"><enum>(1)</enum><header>In
general</header>
<subparagraph id="ID2267720d5e274176aa003a602c34ab9d"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are depository
institutions</header><text>Each registered security-based swap dealer and major
security-based swap participant that is a depository institution, as that term
is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813),
shall meet such minimum capital requirements and minimum initial and variation
margin requirements as the appropriate Federal banking agency shall by rule or
regulation prescribe under paragraph (2)(A) to help ensure the safety and
soundness of the security-based swap dealer or major security-based swap
participant.</text>
</subparagraph><subparagraph id="ID504bafef791b4fc0990365291c573df1"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not depository
institutions</header><text>Each registered security-based swap dealer and major
security-based swap participant that is not a depository institution, as that
term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813), shall meet such minimum capital requirements and minimum initial and
variation margin requirements as the Commission shall by rule or regulation
prescribe under paragraph (2)(B) to help ensure the safety and soundness of the
security-based swap dealer or major security-based swap participant.</text>
</subparagraph></paragraph><paragraph id="id2F0002B02CF44B108B54A48A32625793"><enum>(2)</enum><header>Rules</header>
<subparagraph id="id374021E8BFAA405DAF981F36BC5CCF03"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are depository
institutions</header><text>The appropriate Federal banking agencies, in
consultation with the Commission and the Commodity Futures Trading Commission,
shall adopt rules imposing capital and margin requirements under this
subsection for security-based swap dealers and major security-based swap
participants that are depository institutions, as that term is defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</subparagraph><subparagraph id="id1BA6735E8F8A4CA0A9EBDDBF524D3D4B"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not depository
institutions</header><text>The Commission shall adopt rules imposing capital
and margin requirements under this subsection for security-based swap dealers
and major security-based swap participants that are not depository
institutions, as that term is defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).</text>
</subparagraph></paragraph><paragraph id="id47C33746F6BE41FE8FA2D68B6553E790"><enum>(3)</enum><header>Capital</header>
<subparagraph id="id9D1966FFD9614D7C94871823F6746BA1"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are depository
institutions</header><text>The capital requirements prescribed under paragraph
(2)(A) for security-based swap dealers and major security-based swap
participants that are depository institutions shall contain—</text>
<clause id="ID7ead37eea95c4c609e8664272540d5bb"><enum>(i)</enum><text>a
capital requirement that is greater than zero for security-based swaps that are
cleared by a clearing agency; and</text>
</clause><clause id="IDa218c56234a44f7f91d35627b90e2902"><enum>(ii)</enum><text>to
offset the greater risk to the security-based swap dealer or major
security-based swap participant and to the financial system arising from the
use of security-based swaps that are not cleared, substantially higher capital
requirements for security-based swaps that are not cleared by a clearing agency
than for security-based swaps that are cleared.</text>
</clause></subparagraph><subparagraph id="IDc524495d97bb4e749a1c41993d231bce"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not depository
institutions</header><text>The capital requirements prescribed under paragraph
(2)(B) for security-based swap dealers and major security-based swap
participants that are not depository institutions shall be as strict as or
stricter than the capital requirements prescribed for security-based swap
dealers and major security-based swap participants that are depository
institutions under paragraph (2)(A).</text>
</subparagraph><subparagraph id="id1A212C9BCB374115888EB06E76CDC9EB"><enum>(C)</enum><header>Rule of
construction</header>
<clause id="idBC307C7F95AB49CEAEBD8E0EC585359D"><enum>(i)</enum><header>In
general</header><text>Nothing in this section shall limit, or be construed to
limit, the authority—</text>
<subclause id="ID082cc12c03294d2e907501b9dd38e49b"><enum>(I)</enum><text>of
the Commission to set financial responsibility rules for a broker or dealer
registered pursuant to section 15(b) (except for section 15(b)(11) thereof) in
accordance with section 15(c)(3); or</text>
</subclause><subclause id="ID503f421927954104a6384d5fb7927af0"><enum>(II)</enum><text>of the Commodity
Futures Trading Commission to set financial responsibility rules for a futures
commission merchant or introducing broker registered pursuant to section 4f(a)
of the Commodity Exchange Act (except for section 4f(a)(3) thereof) in
accordance with section 4f(b) of the Commodity Exchange Act.</text>
</subclause></clause><clause id="id65AEBC3A7BE6437FBE196ABCC211E13D"><enum>(ii)</enum><header>Futures
commission merchants and other dealers</header><text>A futures commission
merchant, introducing broker, broker, or dealer shall maintain sufficient
capital to comply with the stricter of any applicable capital requirements to
which such futures commission merchant, introducing broker, broker, or dealer
is subject to under this title or the Commodity Exchange Act.</text>
</clause></subparagraph></paragraph><paragraph id="ID02fe3b285aba4917b5f28641258069d3"><enum>(4)</enum><header>Margin</header>
<subparagraph id="IDcd77935a54be4f03b03f28e24e8e5a6f"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are depository
institutions</header><text>The appropriate Federal banking agency for
security-based swap dealers and major security-based swap participants that are
depository institutions shall impose both initial and variation margin
requirements in accordance with paragraph (2)(A) on all security-based swaps
that are not cleared by a clearing agency.</text>
</subparagraph><subparagraph id="ID0fcd94b8e24a42aca5243f722d2a57f8"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not depository
institutions</header><text>The Commission shall impose both initial and
variation margin requirements in accordance with paragraph (2)(B) for
security-based swap dealers and major security-based swap participants that are
not depository institutions on all security-based swaps that are not cleared by
a clearing agency. Any such initial and variation margin requirements shall be
as strict as or stricter than the margin requirements prescribed under
paragraph (4)(A).</text>
</subparagraph></paragraph><paragraph id="IDd7adcc7ce09344708000fe0f069c9fef"><enum>(5)</enum><header>Margin
requirements</header><text>In prescribing margin requirements under this
subsection, the appropriate Federal banking agency with respect to
security-based swap dealers and major security-based swap participants that are
depository institutions, and the Commission with respect to security-based swap
dealers and major security-based swap participants that are not depository
institutions may permit the use of noncash collateral, as the agency or the
Commission determines to be consistent with—</text>
<subparagraph id="IDec7cd9faea1b44a989fe154f84dde7e4"><enum>(A)</enum><text>preserving the
financial integrity of markets trading security-based swaps; and</text>
</subparagraph><subparagraph id="IDbb94d1c482c4479198984cf5937bfa63"><enum>(B)</enum><text>preserving the
stability of the United States financial system.</text>
</subparagraph></paragraph><paragraph id="ID686f07523a1f4d908dcbbdf1469a7195"><enum>(6)</enum><header>Comparability
of capital and margin requirements</header>
<subparagraph id="ID105593285c904b8aba9687300306e674"><enum>(A)</enum><header>In
general</header><text>The appropriate Federal banking agencies, the Commission,
and the Securities and Exchange Commission shall periodically (but not less
frequently than annually) consult on minimum capital requirements and minimum
initial and variation margin requirements.</text>
</subparagraph><subparagraph id="ID6501a23727f44262b7aa723ee80641d8"><enum>(B)</enum><header>Comparability</header><text>The
entities described in subparagraph (A) shall, to the maximum extent
practicable, establish and maintain comparable minimum capital requirements and
minimum initial and variation margin requirements, including the use of noncash
collateral, for—</text>
<clause id="IDdbb5164e9e2949e9b1983bcfd05fd6ee"><enum>(i)</enum><text>security-based
swap dealers; and</text>
</clause><clause id="ID7bb76bb6f40544c4b0c88369660d25c1"><enum>(ii)</enum><text>major
security-based swap participants.</text>
</clause></subparagraph></paragraph><paragraph id="ID9e1d03129f1e4b158dafc2fb8c4790f5"><enum>(7)</enum><header>Requested
margin</header><text>If any party to a security-based swap that is exempt from
the margin requirements of paragraph (4)(A) or paragraph (4)(B) requests that
such security-based swap be margined, then—</text>
<subparagraph id="ID146b7151ed7a454fa8b78049ccd5b847"><enum>(A)</enum><text>the exemption
shall not apply; and</text>
</subparagraph><subparagraph id="ID79ca913b71814a82963848d14057ba6b"><enum>(B)</enum><text>the counterparty
to such security-based swap shall provide the requested margin.</text>
</subparagraph></paragraph><paragraph id="IDf26da780ecfc4f4caf4c9de4bf4fe069"><enum>(8)</enum><header>Applicability
with respect to counterparties</header><text>Paragraphs (4) and (5) shall not
apply to initial and variation margin for security-based swaps in which 1 of
the counterparties is not—</text>
<subparagraph id="ID8f51ca6b39444659a101754992b7e4bc"><enum>(A)</enum><text>a security-based
swap dealer;</text>
</subparagraph><subparagraph id="ID43b62e5c9f6948729f9d7d021d8e892f"><enum>(B)</enum><text>a major
security-based swap participant; or</text>
</subparagraph><subparagraph id="IDf22a2f22f0af4c8cbbd31785f438bae1"><enum>(C)</enum><text>a financial
entity as described in section 3C(a)(10)(A)(ii), and such counterparty is
eligible for and utilizing the commercial end user clearing exemption under
section 3C(a)(10).</text>
</subparagraph></paragraph></subsection><subsection id="IDf2caf81dcc334dcea3024eef17b7e9bc"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="IDa003be06e0934139b81e60421722fb08"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant—</text>
<subparagraph id="IDcee3e1b01f2b4c7bb6f221eaab0c5bb1"><enum>(A)</enum><text>shall make such
reports as are required by the Commission, by rule or regulation, regarding the
transactions and positions and financial condition of the registered
security-based swap dealer or major security-based swap participant;</text>
</subparagraph><subparagraph id="ID040b13a103784117bdf451d7237ea526"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idED1442CC1FAF4F52B4B2808B230E270A"><enum>(i)</enum><text>for which there is a
prudential regulator, shall keep books and records of all activities related to
the business as a security-based swap dealer or major security-based swap
participant in such form and manner and for such period as may be prescribed by
the Commission by rule or regulation; and</text>
</clause><clause id="id7EA53CE0B03A44028EE043406E47C261" indent="up1"><enum>(ii)</enum><text>for which there is no prudential
regulator, shall keep books and records in such form and manner and for such
period as may be prescribed by the Commission by rule or regulation; and</text>
</clause></subparagraph><subparagraph id="ID2f6262363b6747488cc895bf67e934d3"><enum>(C)</enum><text>shall keep books
and records described in subparagraph (B) open to inspection and examination by
any representative of the Commission.</text>
</subparagraph></paragraph><paragraph id="IDb14026014b05408b847b0221b1e7a84d"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing reporting and recordkeeping for
security-based swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="IDfc5391bbef2448458e449da065168a3e"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="ID0e10254eea984093a2180581afe29e20"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain daily trading records of the
security-based swaps of the registered security-based swap dealer and major
security-based swap participant and all related records (including related cash
or forward transactions) and recorded communications, including electronic
mail, instant messages, and recordings of telephone calls, for such period as
may be required by the Commission by rule or regulation.</text>
</paragraph><paragraph id="ID7135bf49976b42a4bfbed915a741db18"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall require by rule or regulation.</text>
</paragraph><paragraph id="ID85790579965e42e3b43d54311820208e"><enum>(3)</enum><header>Customer
records</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain daily trading records for each
customer or counterparty in a manner and form that is identifiable with each
security-based swap transaction.</text>
</paragraph><paragraph id="ID36cef253037148b7b1ed4ad4759a68bc"><enum>(4)</enum><header>Audit
trail</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain a complete audit trail for
conducting comprehensive and accurate trade reconstructions.</text>
</paragraph><paragraph id="ID92e492ce7d784ba18b222515e0fcdf41"><enum>(5)</enum><header>Rules</header><text>The
Commission shall adopt rules governing daily trading records for security-based
swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="ID719a2defb625478dbc415c2b02e42baa"><enum>(h)</enum><header>Business
conduct standards</header>
<paragraph id="ID5362d941b5e94766b3796c9571977a42"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with such business conduct
standards as may be prescribed by the Commission, by rule or regulation, that
relate to—</text>
<subparagraph id="ID16bd48a5a2fb4646b1d295ebe4072043"><enum>(A)</enum><text>fraud,
manipulation, and other abusive practices involving security-based swaps
(including security-based swaps that are offered but not entered into);</text>
</subparagraph><subparagraph id="IDd40145bf28d642a6bbbfadca869b6f97"><enum>(B)</enum><text>diligent
supervision of the business of the registered security-based swap dealer and
major security-based swap participant;</text>
</subparagraph><subparagraph id="IDba34abe1b4ea42b3aedd6660ef9e3219"><enum>(C)</enum><text>adherence to all
applicable position limits; and</text>
</subparagraph><subparagraph id="ID4dbc477c0be6408c99c257d4f375ac25"><enum>(D)</enum><text>such other
matters as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="IDdc5a73bf53b04284a1015b2f7fd49686"><enum>(2)</enum><header>Special rule;
fiduciary duties to certain entities</header>
<subparagraph id="ID36775b81b5614e23be413971a927788c"><enum>(A)</enum><header>Governmental
entities</header><text>A security-based swap dealer that provides advice
regarding, or offers to enter into, or enters into a security-based swap with a
State, State agency, city, county, municipality, or other political subdivision
of a State, or a Federal agency shall have a fiduciary duty to the State, State
agency, city, county, municipality, or other political subdivision of the
State, or the Federal agency, as appropriate.</text>
</subparagraph><subparagraph id="IDaa24ff86a2a843cb90bbd5cccab37a2f"><enum>(B)</enum><header>Pension plans;
endowments; retirement plans</header><text>A security-based swap dealer that
provides advice regarding, or offers to enter into, or enters into a
security-based swap with a pension plan, endowment, or retirement plan shall
have a fiduciary duty to the pension plan, endowment, or retirement plan, as
appropriate.</text>
</subparagraph></paragraph><paragraph id="IDcbcb85712e5e42e69407219f57ae0704"><enum>(3)</enum><header>Business
conduct requirements</header><text>Business conduct requirements adopted by the
Commission under this subsection shall—</text>
<subparagraph id="IDa66b5b5febd5493ba66ea64f70404077"><enum>(A)</enum><text>establish the
standard of care for a security-based swap dealer or major security-based swap
participant to verify that any counterparty meets the eligibility standards for
an eligible contract participant;</text>
</subparagraph><subparagraph id="ID3c02977e96d445d7a0464c7043ef45bb"><enum>(B)</enum><text>require
disclosure by the security-based swap dealer or major security-based swap
participant to any counterparty to the transaction (other than a security-based
swap dealer or a major security-based swap participant) of—</text>
<clause id="ID4ae272af003f47448e00b1ac66193990"><enum>(i)</enum><text>information about
the material risks and characteristics of the security-based swap;</text>
</clause><clause id="IDc43d82ef75a145b2a80b2dcd35fa9cd9"><enum>(ii)</enum><text>the
source and amount of any fees or other material remuneration that the
security-based swap dealer or major security-based swap participant would
directly or indirectly expect to receive in connection with the security-based
swap;</text>
</clause><clause id="ID167b14a6703d40198b379e0351c218ca"><enum>(iii)</enum><text>any
other material incentives or conflicts of interest that the security-based swap
dealer or major security-based swap participant may have in connection with the
security-based swap; and</text>
</clause><clause id="ID779472111ba742288aece827110de10b"><enum>(iv)</enum><subclause commented="no" display-inline="yes-display-inline" id="id7BF06D00CAEC4B29988991D3C39EE751"><enum>(I)</enum><text>for cleared
security-based swaps, upon the request of the counterparty, the daily mark from
the appropriate clearing agency; and</text>
</subclause><subclause id="idE504521F12A14522A5A4532F45EABA07" indent="up1"><enum>(II)</enum><text>for uncleared security-based swaps, the
daily mark of the security-based swap dealer or the major security-based swap
participant;</text>
</subclause></clause></subparagraph><subparagraph id="ID4c860c19915548c8ae45d43cc8a0c825"><enum>(C)</enum><text>establish a
standard of conduct for a security-based swap dealer or major security-based
swap participant to communicate in a fair and balanced manner based on
principles of fair dealing and good faith;</text>
</subparagraph><subparagraph id="ID6da59a60c1a14028a87bc4c0f8085229"><enum>(D)</enum><text>establish a
standard of conduct for a security-based swap dealer or major security-based
swap participant, with respect to a counterparty that is an eligible contract
participant within the meaning of subclause (I) or (II) of clause (vii) of
section 1a(18) of the Commodity Exchange Act, to have a reasonable basis to
believe that the counterparty has an independent representative that—</text>
<clause id="ID81c577331ee64c47b47df3faf258e229"><enum>(i)</enum><text>has
sufficient knowledge to evaluate the transaction and risks;</text>
</clause><clause id="ID1a1ced143f084464af86b0782fd1cde4"><enum>(ii)</enum><text>is
not subject to a statutory disqualification;</text>
</clause><clause id="IDcd734a788a6e43cc90d4dce400351a26"><enum>(iii)</enum><text>is
independent of the security-based swap dealer or major security-based swap
participant;</text>
</clause><clause id="ID4c4aa2bd215a47c7bf616f89a54d4a53"><enum>(iv)</enum><text>undertakes a
duty to act in the best interests of the counterparty it represents;</text>
</clause><clause id="ID68cc081fd32b44f181a149949ca04ed7"><enum>(v)</enum><text>makes
appropriate disclosures; and</text>
</clause><clause id="ID275e29edff9b4ee9b89c76f8f699077c"><enum>(vi)</enum><text>will
provide written representations to the eligible contract participant regarding
fair pricing and the appropriateness of the transaction; and</text>
</clause></subparagraph><subparagraph id="ID84e4a2c4e0f84b57a23d7e0834867e77"><enum>(E)</enum><text>establish such
other standards and requirements as the Commission may determine are
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</text>
</subparagraph></paragraph><paragraph id="IDeca2e3d496334efeb77729925929b192"><enum>(4)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing business
conduct standards for security-based swap dealers and major security-based swap
participants.</text>
</paragraph></subsection><subsection id="ID39c26f3496074b65a7ab6ed8af9adc1f"><enum>(i)</enum><header>Documentation
and back office standards</header>
<paragraph id="ID82a29cabfe7042eba09f10bdf65fee3e"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with such standards as may be
prescribed by the Commission, by rule or regulation, that relate to timely and
accurate confirmation, processing, netting, documentation, and valuation of all
security-based swaps.</text>
</paragraph><paragraph id="IDe45230c776bd4ea0ad9f077749920fd6"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing documentation and back office standards
for security-based swap dealers and major security-based swap
participants.</text>
</paragraph></subsection><subsection id="ID0917ed21b5f7464a823c89a85fe74c37"><enum>(j)</enum><header>Duties</header><text display-inline="yes-display-inline">Each registered security-based swap dealer
and major security-based swap participant shall, at all times, comply with the
following requirements:</text>
<paragraph id="ID16ec8b329df44e828413f0a4a9bcf6f5"><enum>(1)</enum><header>Monitoring of
trading</header><text>The security-based swap dealer or major security-based
swap participant shall monitor its trading in security-based swaps to prevent
violations of applicable position limits.</text>
</paragraph><paragraph id="IDda34f7579afc40cab9156fed4f1623b7"><enum>(2)</enum><header>Risk management
procedures</header><text>The security-based swap dealer or major security-based
swap participant shall establish robust and professional risk management
systems adequate for managing the day-to-day business of the security-based
swap dealer or major security-based swap participant.</text>
</paragraph><paragraph id="IDb96b3f1af14c44b2b864fa8af8cc5177"><enum>(3)</enum><header>Disclosure of
general information</header><text>The security-based swap dealer or major
security-based swap participant shall disclose to the Commission and to the
prudential regulator for the security-based swap dealer or major security-based
swap participant, as applicable, information concerning—</text>
<subparagraph id="ID5a224af6122c43c588a958fc2c0ff90a"><enum>(A)</enum><text>terms and
conditions of its security-based swaps;</text>
</subparagraph><subparagraph id="IDba588ca4f88f4042b32e300e7365b044"><enum>(B)</enum><text>security-based
swap trading operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="ID9b3f759e95ab4ccf9b6ca9a245bc8829"><enum>(C)</enum><text>financial
integrity protections relating to security-based swaps; and</text>
</subparagraph><subparagraph id="ID09421cf433214a8ab766a30dd6e2d211"><enum>(D)</enum><text>other information
relevant to its trading in security-based swaps.</text>
</subparagraph></paragraph><paragraph id="IDad52796223a94bed919dba201d46dd5d"><enum>(4)</enum><header>Ability to
obtain information</header><text>The security-based swap dealer or major
security-based swap participant shall—</text>
<subparagraph id="IDedf21678405d481d88d7026fb904d087"><enum>(A)</enum><text>establish and
enforce internal systems and procedures to obtain any necessary information to
perform any of the functions described in this section; and</text>
</subparagraph><subparagraph id="ID8a743272fdbc4c299cc87fad7486eaf3"><enum>(B)</enum><text>provide the
information to the Commission and to the prudential regulator for the
security-based swap dealer or major security-based swap participant, as
applicable, on request.</text>
</subparagraph></paragraph><paragraph id="ID0a5c97db72684ab6a7ad08fd44334b35"><enum>(5)</enum><header>Conflicts of
interest</header><text>The security-based swap dealer and major security-based
swap participant shall implement conflict-of-interest systems and procedures
that—</text>
<subparagraph id="ID64cbdbfbe7be486e80890ff6c5c68337"><enum>(A)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any security-based swap or acting in a role of providing clearing
activities or making determinations as to accepting clearing customers are
separated by appropriate informational partitions within the firm from the
review, pressure, or oversight of persons whose involvement in pricing,
trading, or clearing activities might potentially bias their judgment or
supervision and contravene the core principles of open access and the business
conduct standards described in this title; and</text>
</subparagraph><subparagraph id="ID0599662dee344309a56ea7e1aaae2a4f"><enum>(B)</enum><text>address such
other issues as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="id2BAF0CCD20E34AFDAA8031EDEBCD878B"><enum>(6)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the security-based swap dealer or major security-based
swap participant shall not—</text>
<subparagraph id="id200BF14EE48E4A86B38BC695372D10E4"><enum>(A)</enum><text>adopt any process
or take any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="id409B67E77B57455BB9A39F529F069410"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph></subsection><subsection id="ID74fe21da423d4ce3ac061c5b35e66d85"><enum>(k)</enum><header>Designation of
Chief Compliance Officer</header>
<paragraph id="ID2b441a5190b7459c828c0ab2e5cfded7"><enum>(1)</enum><header>In
general</header><text>Each security-based swap dealer and major security-based
swap participant shall designate an individual to serve as a chief compliance
officer.</text>
</paragraph><paragraph id="IDa350604ff7394862b19c92726fa3a6e2"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="ID72f06dcf6b2c4b55ae27ee7cf52817d2"><enum>(A)</enum><text>report directly
to the board or to the senior officer of the security-based swap dealer or
major security-based swap participant;</text>
</subparagraph><subparagraph id="ID46c4249abd494605a93032cbb5f4de9f"><enum>(B)</enum><text>review the
compliance of the security-based swap dealer or major security-based swap
participant with respect to the security-based swap dealer and major
security-based swap participant requirements described in this section;</text>
</subparagraph><subparagraph id="ID3475cf913c1a41ae9b23140021f4f96f"><enum>(C)</enum><text>in consultation
with the board of directors, a body performing a function similar to the board,
or the senior officer of the organization, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="IDd9707747487d497ea5e77429e8be0803"><enum>(D)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="ID0de7e4b65145400d970eb4f0bf9e6648"><enum>(E)</enum><text>ensure compliance
with this title (including regulations) relating to security-based swaps,
including each rule prescribed by the Commission under this section;</text>
</subparagraph><subparagraph id="IDa129073514424e51bc9b0846929c7932"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="ID54a2596e5c5442218ec258fd68941db1"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="IDf51d584a3e5f4631a83c895a78d57550"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="IDf72864d62912406694b9b4583bc980f5"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="ID457a29daac864181adeffd6001e0c0ea"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="ID2dfefb8d52d84ad688c4b9b05d8ebd2d"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="ID07c501fcd60f4a20af813a64db3eb34d"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="ID1cfd4dffdd1740d3a4effba3f480458a"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="IDd7333c57fdf546dcb6c31b28074ee162"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="IDcd70598fa4d2491291cb153d6bdd6187"><enum>(i)</enum><text>the
compliance of the security-based swap dealer or major swap participant with
respect to this title (including regulations); and</text>
</clause><clause id="ID53ae5c5010814f149bc9973473dd1ce7"><enum>(ii)</enum><text>each
policy and procedure of the security-based swap dealer or major security-based
swap participant of the chief compliance officer (including the code of ethics
and conflict of interest policies).</text>
</clause></subparagraph><subparagraph id="ID132ced33621445b998d2b77285997f7c"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="ID671aafd11f614f8f92b5481eac4648eb"><enum>(i)</enum><text>accompany each
appropriate financial report of the security-based swap dealer or major
security-based swap participant that is required to be furnished to the
Commission pursuant to this section; and</text>
</clause><clause id="ID83b790c9f67246fabc5b2bfbf6f4a5f8"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H7D296911EDF346708020BEA6861D5B48"><enum>(l)</enum><header>Enforcement and
administrative proceeding authority</header>
<paragraph id="H1F25A2752999429E8F2351F8F07BD8C5"><enum>(1)</enum><header>Primary
enforcement authority</header>
<subparagraph id="H8164C0EF1319475AB84BB8D13A9E83D1"><enum>(A)</enum><header>Securities and
Exchange Commission</header><text>Except as provided in subparagraph (B), the
Commission shall have primary authority to enforce subtitle B, and the
amendments made by subtitle B of the Wall Street Transparency and
Accountability Act of 2010, with respect to any person.</text>
</subparagraph><subparagraph id="H3E84FDDB73044F76A60B9A4BEC6756B5"><enum>(B)</enum><header>Appropriate
Federal banking agencies</header><text>The appropriate Federal banking agency
for security-based swap dealers or major security-based swap participants that
are depository institutions, as that term is defined under section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813), shall have exclusive authority
to enforce the provisions of subsection (e) and other prudential requirements
of this title, with respect to depository institutions that are security-based
swap dealers or major security-based swap participants.</text>
</subparagraph><subparagraph id="HB1709E81EF6E4BE8AB360B3EF8CB62F2"><enum>(C)</enum><header>Referral</header>
<clause id="H4CEDE1EE6E1C4C33A0ACA7D486B17BFA"><enum>(i)</enum><header>Violations of
nonprudential requirements</header><text>If the appropriate Federal banking
agency for security-based swap dealers or major security-based swap
participants that are depository institutions has cause to believe that such
security-based swap dealer or major security-based swap participant may have
engaged in conduct that constitutes a violation of the nonprudential
requirements of this section or rules adopted by the Commission thereunder, the
agency may recommend in writing to the Commission that the Commission initiate
an enforcement proceeding as authorized under this title. The recommendation
shall be accompanied by a written explanation of the concerns giving rise to
the recommendation.</text>
</clause><clause id="H349ADBA4D0DC4E6C9B5A04626F835A59"><enum>(ii)</enum><header>Violations of
prudential requirements</header><text display-inline="yes-display-inline">If
the Commission has cause to believe that a securities-based swap dealer or
major securities-based swap participant that has a prudential regulator may
have engaged in conduct that constitute a violation of the prudential
requirements of subsection (e) or rules adopted thereunder, the Commission may
recommend in writing to the prudential regulator that the prudential regulator
initiate an enforcement proceeding as authorized under this title. The
recommendation shall be accompanied by a written explanation of the concerns
giving rise to the recommendation.</text>
</clause></subparagraph></paragraph><paragraph id="HA8A7AC18FFA946C69A31EB05322753F5"><enum>(2)</enum><header>Censure, denial,
suspension; notice and hearing</header><text>The Commission, by order, shall
censure, place limitations on the activities, functions, or operations of, or
revoke the registration of any security-based swap dealer or major
security-based swap participant that has registered with the Commission
pursuant to subsection (b) if the Commission finds, on the record after notice
and opportunity for hearing, that such censure, placing of limitations, or
revocation is in the public interest and that such security-based swap dealer
or major security-based swap participant, or any person associated with such
security-based swap dealer or major security-based swap participant effecting
or involved in effecting transactions in security-based swaps on behalf of such
security-based swap dealer or major security-based swap participant, whether
prior or subsequent to becoming so associated—</text>
<subparagraph id="H3661E473E8634DD6894D9BB164F43134"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of paragraph (4) of section 15(b);</text>
</subparagraph><subparagraph id="H8EE3FC4657BB40F3BCB873BFFD236E4F"><enum>(B)</enum><text>has been convicted
of any offense specified in subparagraph (B) of such paragraph (4) within 10
years of the commencement of the proceedings under this subsection;</text>
</subparagraph><subparagraph id="HB8BABD87B8E14714A41F3F5E8AE2E6F2"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="H10009EE63D634453B5B46747C812DD1E"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
such paragraph (4); or</text>
</subparagraph><subparagraph id="H25F6E5540A1041D6BDA2E5E2380ECC76"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in subparagraph (G)
of such paragraph (4).</text>
</subparagraph></paragraph><paragraph id="HDDE1846D8A7346D3A83F60E6856E3B27"><enum>(3)</enum><header>Associated
persons</header><text>With respect to any person who is associated, who is
seeking to become associated, or, at the time of the alleged misconduct, who
was associated or was seeking to become associated with a security-based swap
dealer or major security-based swap participant for the purpose of effecting or
being involved in effecting security-based swaps on behalf of such
security-based swap dealer or major security-based swap participant, the
Commission, by order, shall censure, place limitations on the activities or
functions of such person, or suspend for a period not exceeding 12 months, or
bar such person from being associated with a security-based swap dealer or
major security-based swap participant, if the Commission finds, on the record
after notice and opportunity for a hearing, that such censure, placing of
limitations, suspension, or bar is in the public interest and that such
person—</text>
<subparagraph id="H46058A188360477498224BE95E542008"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of paragraph (4) of section 15(b);</text>
</subparagraph><subparagraph id="H4E771CFDA8284B95849490E6C3FDC855"><enum>(B)</enum><text>has been convicted
of any offense specified in subparagraph (B) of such paragraph (4) within 10
years of the commencement of the proceedings under this subsection;</text>
</subparagraph><subparagraph id="H4536A58506BA4C5CB570F40D3E494F56"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="H45415736144E4ACEA7B3378BBBC8F2DB"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
such paragraph (4); or</text>
</subparagraph><subparagraph id="H61D905EA96A543E7B3101C245823C36E"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in subparagraph (G)
of such paragraph (4).</text>
</subparagraph></paragraph><paragraph id="H3C8EFC0725384C83A57871E368478D57"><enum>(4)</enum><header>Unlawful
conduct</header><text>It shall be unlawful—</text>
<subparagraph id="H2A4BAEB45BB94DFABBC76512E15BA707"><enum>(A)</enum><text>for any person as
to whom an order under paragraph (3) is in effect, without the consent of the
Commission, willfully to become, or to be, associated with a security-based
swap dealer or major security-based swap participant in contravention of such
order; or</text>
</subparagraph><subparagraph id="H7F5BADFC34804BBFB398BE2F8519D7B4"><enum>(B)</enum><text>for any
security-based swap dealer or major security-based swap participant to permit
such a person, without the consent of the Commission, to become or remain a
person associated with the security-based swap dealer or major security-based
swap participant in contravention of such order, if such security-based swap
dealer or major security-based swap participant knew, or in the exercise of
reasonable care should have known, of such
order.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id12B4F9389B6641F29A85B730EFFBDAA6"><enum>765.</enum><header>Rulemaking on
conflict of interest</header>
<subsection id="ID13251b49905f49438b44fb0494da20bf"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
the Wall Street Transparency and Accountability Act of 2010, the Securities and
Exchange Commission shall determine whether to adopt rules to establish limits
on the control of any clearing agency that clears security-based swaps, or on
the control of any security-based swap execution facility or national
securities exchange that posts or makes available for trading security-based
swaps, by a bank holding company (as defined in section 2 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841)) with total consolidated assets of
$50,000,000,000 or more, a nonbank financial company (as defined in section
102) supervised by the Board of Governors of the Federal Reserve System,
affiliate of such a bank holding company or nonbank financial company, a
security-based swap dealer, major security-based swap participant, or person
associated with a security-based swap dealer or major security-based swap
participant.</text>
</subsection><subsection id="ID611505000aa8486693303b576f993376"><enum>(b)</enum><header>Purposes</header><text>The
Commission shall adopt rules if the Commission determines, after the review
described in subsection (a), that such rules are necessary or appropriate to
improve the governance of, or to mitigate systemic risk, promote competition,
or mitigate conflicts of interest in connection with a security-based swap
dealer or major security-based swap participant’s conduct of business with, a
clearing agency, national securities exchange, or security-based swap execution
facility that clears, posts, or makes available for trading security-based
swaps and in which such security-based swap dealer or major security-based swap
participant has a material debt or equity investment.</text>
</subsection></section><section id="HA63FBC564FF8401A9112F9C73D96031A"><enum>766.</enum><header>Reporting and
recordkeeping</header>
<subsection id="HE7341666A7A74C3590D40D637AAA9FC9"><enum>(a)</enum><header>In
general</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.) is amended by inserting after section 13 the following:</text>
<quoted-block display-inline="no-display-inline" id="idC04FBA0AC2E843ABB9C7744CE9174238" style="OLC">
<section id="HAB77BE429DB74B548E371FF0C819CD7A"><enum>13A.</enum><header>Reporting and
recordkeeping for certain security-based swaps</header>
<subsection id="id1CB7A518159D485C8FDAC58713105F9A"><enum>(a)</enum><header>Required
reporting of security-based swaps not accepted by any clearing agency or
derivatives clearing organization</header>
<paragraph id="id572E9FC05927458CBB999709DCB1E9A7"><enum>(1)</enum><header>In
general</header><text>Each security-based swap that is not accepted for
clearing by any clearing agency or derivatives clearing organization shall be
reported to—</text>
<subparagraph id="idD998F718F4AD46C994128A3E94F41A6C"><enum>(A)</enum><text>a security-based
swap data repository described in section 10B(n); or</text>
</subparagraph><subparagraph id="idC22D5323C9154C56A905803CDA78E225"><enum>(B)</enum><text>in the case in
which there is no security-based swap data repository that would accept the
security-based swap, to the Commission pursuant to this section within such
time period as the Commission may by rule or regulation prescribe.</text>
</subparagraph></paragraph><paragraph id="idB1B64FA02DA941F38FF66D9E4102884D"><enum>(2)</enum><header>Transition rule
for preenactment security-based swaps</header>
<subparagraph id="idE7DBEE92596D47E890E0AA2DB8454960"><enum>(A)</enum><header>Security-based
swaps entered into before the date of enactment of the Wall Street Transparency
and Accountability Act of 2010</header><text>Each security-based swap entered
into before the date of enactment of the <short-title>Wall
Street Transparency and Accountability Act of 2010</short-title>, the terms of
which have not expired as of the date of enactment of that Act, shall be
reported to a registered security-based swap data repository or the Commission
by a date that is not later than—</text>
<clause id="id9143864215D94ED1980EDD8936FDB101"><enum>(i)</enum><text>30
days after issuance of the interim final rule; or</text>
</clause><clause id="id1D80D0CFB4194792AD11B15D9926DEE8"><enum>(ii)</enum><text>such
other period as the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="id023C1D369AB842AFADFFCD88F3123C36"><enum>(B)</enum><header>Commission
rulemaking</header><text>The Commission shall promulgate an interim final rule
within 90 days of the date of enactment of this section providing for the
reporting of each security-based swap entered into before the date of enactment
as referenced in subparagraph (A).</text>
</subparagraph><subparagraph id="id98C61FC105BD4B7CBEAEB747355B9695"><enum>(C)</enum><header>Effective
date</header><text>The reporting provisions described in this section shall be
effective upon the date of the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="IDcaca26cebf1845eba4eb9513534a235d"><enum>(3)</enum><header>Reporting
obligations</header>
<subparagraph id="ID9528d02fdf8f4a16a31ad53f6844eb71"><enum>(A)</enum><header>Security-based
swaps in which only 1 counterparty is a security-based swap dealer or major
security-based swap participant</header><text>With respect to a security-based
swap in which only 1 counterparty is a security-based swap dealer or major
security-based swap participant, the security-based swap dealer or major
security-based swap participant shall report the security-based swap as
required under paragraphs (1) and (2).</text>
</subparagraph><subparagraph id="ID8895d61d7f7a4908830240e8fc002243"><enum>(B)</enum><header>Security-based
swaps in which 1 counterparty is a security-based swap dealer and the other a
major security-based swap participant</header><text>With respect to a
security-based swap in which 1 counterparty is a security-based swap dealer and
the other a major security-based swap participant, the security-based swap
dealer shall report the security-based swap as required under paragraphs (1)
and (2).</text>
</subparagraph><subparagraph id="IDfc2460a8391a4e37a7f4857e7d344bac"><enum>(C)</enum><header>Other
security-based swaps</header><text>With respect to any other security-based
swap not described in subparagraph (A) or (B), the counterparties to the
security-based swap shall select a counterparty to report the security-based
swap as required under paragraphs (1) and (2).</text>
</subparagraph></paragraph></subsection><subsection id="idFEB267E9CA014AB1980CCEC114C25452"><enum>(b)</enum><header>Duties of
certain individuals</header><text>Any individual or entity that enters into a
security-based swap shall meet each requirement described in subsection (c) if
the individual or entity did not—</text>
<paragraph id="id5984DD6BCFD945C381941394683DD201"><enum>(1)</enum><text>clear the
security-based swap in accordance with section 3C(a)(1); or</text>
</paragraph><paragraph id="id4BA287509D224916839C75E4CE523D08"><enum>(2)</enum><text>have the data
regarding the security-based swap accepted by a security-based swap data
repository in accordance with rules (including timeframes) adopted by the
Commission under this title.</text>
</paragraph></subsection><subsection id="id99F2E27417E648B7A378D561C817C8D8"><enum>(c)</enum><header>Requirements</header><text>An
individual or entity described in subsection (b) shall—</text>
<paragraph id="id9A8B6DE8E6334BAF9833AE9F16A241C6"><enum>(1)</enum><text>upon written
request from the Commission, provide reports regarding the security-based swaps
held by the individual or entity to the Commission in such form and in such
manner as the Commission may request; and</text>
</paragraph><paragraph id="id031411AD21384B3C833B794C0C7CCE21"><enum>(2)</enum><text>maintain books
and records pertaining to the security-based swaps held by the individual or
entity in such form, in such manner, and for such period as the Commission may
require, which shall be open to inspection by—</text>
<subparagraph id="id077C0D0948FB44349D2E61934CFBA19E"><enum>(A)</enum><text>any
representative of the Commission;</text>
</subparagraph><subparagraph id="id888AF8AF3ACB4D798F32CE603F3A7545"><enum>(B)</enum><text>an appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="id4C8DC7D43E104D53A63FFAFBD187C8D8"><enum>(C)</enum><text>the Commodity
Futures Trading Commission;</text>
</subparagraph><subparagraph id="idB3704E2EE6CA44ADBDC2613FE1510F06"><enum>(D)</enum><text>the Financial
Stability Oversight Council; and</text>
</subparagraph><subparagraph id="id615A0AB3C0F34C6CAA3FB4512FBB2151"><enum>(E)</enum><text>the Department of
Justice.</text>
</subparagraph></paragraph></subsection><subsection id="id559ABD2B45E54A898FF95F3D05F95F32"><enum>(d)</enum><header>Identical
data</header><text>In prescribing rules under this section, the Commission
shall require individuals and entities described in subsection (b) to submit to
the Commission a report that contains data that is not less comprehensive than
the data required to be collected by security-based swap data repositories
under this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0B5C9B95C66844DDA81D88EB4A4C763F"><enum>(b)</enum><header>Beneficial
ownership reporting</header><text>Section 13 of the Securities Exchange Act of
1934 (15 U.S.C. 78m) is amended—</text>
<paragraph id="id429511F3A225479A816A3DC39DCEEB7D"><enum>(1)</enum><text>in
subsection (d)(1), by inserting <quote>or otherwise becomes or is deemed to
become a beneficial owner of any of the foregoing upon the purchase or sale of
a security-based swap that the Commission may define by rule, and</quote> after
<quote>Alaska Native Claims Settlement Act,</quote>; and</text>
</paragraph><paragraph id="H781E7E248553402DA74CBF4B0DAFF978"><enum>(2)</enum><text>in
subsection (g)(1), by inserting <quote>or otherwise becomes or is deemed to
become a beneficial owner of any security of a class described in subsection
(d)(1) upon the purchase or sale of a security-based swap that the Commission
may define by rule</quote> after <quote>subsection (d)(1) of this
section</quote>.</text>
</paragraph></subsection><subsection id="H723DC9856E3C4970B948902C22244EE6"><enum>(c)</enum><header>Reports by
institutional investment managers</header><text>Section 13(f)(1) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m(f)(1)) is amended by inserting
<quote>or otherwise becomes or is deemed to become a beneficial owner of any
security of a class described in subsection (d)(1) upon the purchase or sale of
a security-based swap that the Commission may define by rule,</quote> after
<quote>subsection (d)(1) of this section</quote>.</text>
</subsection><subsection id="H0EFEEDBD58164740B84F31AE0E7F9DDE"><enum>(d)</enum><header>Administrative
proceeding authority</header><text>Section 15(b)(4) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o(b)(4)) is amended—</text>
<paragraph id="HAA77E275EBF24FA2A8630A62E766B84F"><enum>(1)</enum><text>in
subparagraph (C), by inserting <quote>security-based swap dealer, major
security-based swap participant,</quote> after <quote>government securities
dealer,</quote>; and</text>
</paragraph><paragraph id="H5269F1A6CFA74479A11E0DD784E9890B"><enum>(2)</enum><text>in
subparagraph (F), by striking <quote>broker or dealer</quote> and inserting
<quote>broker, dealer, security-based swap dealer, or a major security-based
swap participant</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H014E19843CF84866AB5FC7B4F9A4D87E"><enum>(e)</enum><header>Security-based
swap beneficial ownership</header><text>Section 13 of the Securities Exchange
Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA821DE0D8B4F411190072CC4BB718457" style="OLC">
<subsection id="H8102853007734B47B86C52AFA8EB9AB2"><enum>(o)</enum><header>Beneficial
ownership</header><text display-inline="yes-display-inline">For purposes of
this section and section 16, a person shall be deemed to acquire beneficial
ownership of an equity security based on the purchase or sale of a
security-based swap, only to the extent that the Commission, by rule,
determines after consultation with the prudential regulators and the Secretary
of the Treasury, that the purchase or sale of the security-based swap, or class
of security-based swap, provides incidents of ownership comparable to direct
ownership of the equity security, and that it is necessary to achieve the
purposes of this section that the purchase or sale of the security-based swaps,
or class of security-based swap, be deemed the acquisition of beneficial
ownership of the equity
security.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H49955960E99E47E2B4C769D878544335"><enum>767.</enum><header>State gaming
and bucket shop laws</header><text display-inline="no-display-inline">Section
28(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78bb(a)) is amended to
read as follows:</text>
<quoted-block id="H0AE47BE429CF4D46AFA36FB868B5D9BD" style="OLC">
<subsection id="H068215C64B5C4BEB869070914C28E2D4"><enum>(a)</enum><header>Limitation on
judgments</header>
<paragraph id="idB9BFBD3F38AE4B0BAA9084EE32FEE824"><enum>(1)</enum><header>In
general</header><text>No person permitted to maintain a suit for damages under
the provisions of this title shall recover, through satisfaction of judgment in
1 or more actions, a total amount in excess of the actual damages to that
person on account of the act complained of. Except as otherwise specifically
provided in this title, nothing in this title shall affect the jurisdiction of
the securities commission (or any agency or officer performing like functions)
of any State over any security or any person insofar as it does not conflict
with the provisions of this title or the rules and regulations under this
title.</text>
</paragraph><paragraph id="id2A8EEE8291B448399C73409D46980473"><enum>(2)</enum><header>Rule of
construction</header><text>Except as provided in subsection (f), the rights and
remedies provided by this title shall be in addition to any and all other
rights and remedies that may exist at law or in equity.</text>
</paragraph><paragraph id="idCAF6C32A3BA948D7B4A62EAA98686380"><enum>(3)</enum><header>State Bucket
shop laws</header><text>No State law which prohibits or regulates the making or
promoting of wagering or gaming contracts, or the operation of <quote>bucket
shops</quote> or other similar or related activities, shall invalidate—</text>
<subparagraph id="idB181D5BD469C43A19597402E0AAAB010"><enum>(A)</enum><text>any put, call,
straddle, option, privilege, or other security subject to this title (except
any security that has a pari-mutuel payout or otherwise is determined by the
Commission, acting by rule, regulation, or order, to be appropriately subject
to such laws), or apply to any activity which is incidental or related to the
offer, purchase, sale, exercise, settlement, or closeout of any such
security;</text>
</subparagraph><subparagraph id="idCCA35FFAD771455B9FE62BF5A2DB5B2F"><enum>(B)</enum><text>any
security-based swap between eligible contract participants; or</text>
</subparagraph><subparagraph id="id347AB59AAA7349A1A06CA81E94F8D171"><enum>(C)</enum><text>any
security-based swap effected on a national securities exchange registered
pursuant to section 6(b).</text>
</subparagraph></paragraph><paragraph id="id9AA2B84F950D49A186C036492B92D425"><enum>(4)</enum><header>Other State
provisions</header><text>No provision of State law regarding the offer, sale,
or distribution of securities shall apply to any transaction in a
security-based swap or a security futures product, except that this paragraph
may not be construed as limiting any State antifraud law of general
applicability. A security-based swap may not be regulated as an insurance
contract under any provision of State
law.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HDA38AA2945FA4E2A81F11B0FA692F2B7"><enum>768.</enum><header>Amendments to
the Securities Act of 1933; treatment of security-based swaps</header>
<subsection id="H5B91A141F6B046119E0B3929970197A6"><enum>(a)</enum><header>Definitions</header><text>Section
2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended—</text>
<paragraph id="HB368EC2FF832472D912C04D6E3468F07"><enum>(1)</enum><text>in
paragraph (1), by inserting <quote>security-based swap,</quote> after
<quote>security future,</quote>;</text>
</paragraph><paragraph id="H00C01CB2C11E4D42B535BC34F16C13C4"><enum>(2)</enum><text>in
paragraph (3), by adding at the end the following: <quote>Any offer or sale of
a security-based swap by or on behalf of the issuer of the securities upon
which such security-based swap is based or is referenced, an affiliate of the
issuer, or an underwriter, shall constitute a contract for sale of, sale of,
offer for sale, or offer to sell such securities.</quote>; and</text>
</paragraph><paragraph id="H23C25BA56939494DB6CF67B607D77BF4"><enum>(3)</enum><text>by
adding at the end the following:</text>
<quoted-block id="HA964B9B7377D41BFB718988197B4B634" style="OLC">
<paragraph id="H7D199B5D3DEB4CD891A1D9C3C19B5B83"><enum>(17)</enum><text>The terms
<term>swap</term> and <term>security-based swap</term> have the same meanings
as in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="H568F23DA391342138AA2DB62BBA6077F"><enum>(18)</enum><text>The terms
<term>purchase</term> or <term>sale</term> of a security-based swap shall be
deemed to mean the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may
require.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3B107B73265749979C971C3BB633C618"><enum>(b)</enum><header>Registration of
security-based swaps</header><text>Section 5 of the Securities Act of 1933 (15
U.S.C. 77e) is amended by adding at the end the following:</text>
<quoted-block id="H8708916B41EF427DB58A168D471301E3" style="OLC">
<subsection id="H1A349022717D487F83CB241511C71F1F"><enum>(d)</enum><text>Notwithstanding
the provisions of section 3 or 4, unless a registration statement meeting the
requirements of section 10(a) is in effect as to a security-based swap, it
shall be unlawful for any person, directly or indirectly, to make use of any
means or instruments of transportation or communication in interstate commerce
or of the mails to offer to sell, offer to buy or purchase or sell a
security-based swap to any person who is not an eligible contract participant
as defined in section 1a(18) of the Commodity Exchange Act (7 U.S.C.
1a(18)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H7F37A7C57592401D930B5000FD0B6528"><enum>769.</enum><header>Definitions
under the Investment Company Act of 1940</header><text display-inline="no-display-inline">Section 2(a) of the Investment Company Act
of 1940 (15 U.S.C. 80a–2) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB98DEC2CA6CE428F9A9ECC0FF32E63AF" style="OLC">
<paragraph id="ID5ca3080b48f145e7a6affa75d372ab5c"><enum>(54)</enum><text>The terms
<term>commodity pool</term>, <quote>commodity pool operator</quote>,
<quote>commodity trading advisor</quote>, <term>major swap participant</term>,
<term>swap</term>, <term>swap dealer</term>, and <term>swap execution
facility</term> have the same meanings as in section 1a of the Commodity
Exchange Act (7 U.S.C.
1a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id25FA5ED38E904E2789BCE18471DF8ED1"><enum>770.</enum><header>Definitions
under the Investment Advisors Act of 1940</header><text display-inline="no-display-inline">Section 202(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–2) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id7649E2B5740D454EA2748EA55D39058C" style="OLC">
<paragraph id="IDfce5eab08e054f4da03e3cc9b745bacd"><enum>(29)</enum><text>The terms
<term>commodity pool</term>, <term>commodity pool operator</term>,
<term>commodity trading advisor</term>, <term>major swap participant</term>,
<term>swap</term>, <term>swap dealer</term>, and <term>swap execution
facility</term> have the same meanings as in section 1a of the Commodity
Exchange Act (7 U.S.C.
1a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idA40AE09871F04AA5B38FCC4F0B0D57A7"><enum>771.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by its terms, this subtitle does not divest any appropriate Federal
banking agency, the Securities and Exchange Commission, the Commodity Futures
Trading Commission, or any other Federal or State agency, of any authority
derived from any other provision of applicable law.</text>
</section><section id="H8ADDB42DF9644DB7A86429F43069D878"><enum>772.</enum><header>Jurisdiction</header>
<subsection id="H72D0ED8F8E2F4342899BFCC1E5D579F7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 36 of the
Securities Exchange Act of 1934 (15 U.S.C. 78mm) is amended by adding at the
end the following:</text>
<quoted-block id="HF047E1949E6D4E98BE33DCAEFB09B89B" style="OLC">
<subsection id="HCCBC916D3C5A4A6B958EDB1FD6C9E026"><enum>(c)</enum><header>Derivatives</header><text>The
Commission shall not grant exemptions from the security-based swap provisions
of the <short-title>Wall Street Transparency and
Accountability Act of 2010</short-title> or the amendments made by that Act,
except as expressly authorized under the provisions of that
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H20F3DE4518B848E2A1486A77ED96788F"><enum>(b)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Section 30 of
the Securities Exchange Act of 1934 (15 U.S.C. 78dd) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0596C1F2902C4EC0840D84F821E0B5AE" style="OLC">
<subsection commented="no" id="H2EE30716471C4E75BBA40F66EC1D6230"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">No provision of
this title that was added by the Wall Street Transparency and Accountability
Act of 2010, or any rule or regulation thereunder, shall apply to any person
insofar as such person transacts a business in security-based swaps without the
jurisdiction of the United States, unless such person transacts such business
in contravention of such rules and regulations as the Commission may prescribe
as necessary or appropriate to prevent the evasion of any provision of this
title that was added by the Wall Street Transparency and Accountability Act of
2010. This subsection shall not be construed to limit the jurisdiction of the
Commission under any provision of this title, as in effect prior to the date of
enactment of the Wall Street Transparency and Accountability Act of
2010.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H716AA1959F824355B4EF14F19E157F2B"><enum>773.</enum><header>Effective
date</header><text display-inline="no-display-inline">Unless otherwise
specifically provided in this subtitle, this subtitle, the provisions of this
subtitle, and the amendments made by this subtitle shall become effective 180
days after the date of enactment of this Act.</text>
</section></subtitle><enum>VIII</enum><header>Payment,
clearing, and settlement supervision</header>
<section id="ID8373f3ce74864302aeb0ba0eb9a8710c"><enum>801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Payment, Clearing, and
Settlement Supervision Act of 2010</short-title></quote>.</text>
</section><section id="ID8a65052290384c929e4fa2881d6797d6"><enum>802.</enum><header>Findings and
purposes</header>
<subsection id="ID6ca18a5c95854c90a02d4fbb103b6b10"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="ID9643702fbbef4f85b470913ee0f5b11b"><enum>(1)</enum><text>The
proper functioning of the financial markets is dependent upon safe and
efficient arrangements for the clearing and settlement of payment, securities,
and other financial transactions.</text>
</paragraph><paragraph id="ID7507f0799d504d148aeb719b123a1017"><enum>(2)</enum><text>Financial market
utilities that conduct or support multilateral payment, clearing, or settlement
activities may reduce risks for their participants and the broader financial
system, but such utilities may also concentrate and create new risks and thus
must be well designed and operated in a safe and sound manner.</text>
</paragraph><paragraph id="IDea708b8f67dc46b29fd1b6d4de1bf691"><enum>(3)</enum><text>Payment,
clearing, and settlement activities conducted by financial institutions also
present important risks to the participating financial institutions and to the
financial system.</text>
</paragraph><paragraph id="IDf146865b48d643c98844c9fa816a47cb"><enum>(4)</enum><text>Enhancements to
the regulation and supervision of systemically important financial market
utilities and the conduct of systemically important payment, clearing, and
settlement activities by financial institutions are necessary—</text>
<subparagraph id="idA867A7808F7F4473AABC08439A377AFC"><enum>(A)</enum><text>to provide
consistency;</text>
</subparagraph><subparagraph id="idE10F9BF8762E4ED38A0E803073CDA954"><enum>(B)</enum><text>to promote robust
risk management and safety and soundness;</text>
</subparagraph><subparagraph id="idA7312F3C29C84310A18FD15A4B80D33B"><enum>(C)</enum><text>to reduce
systemic risks; and</text>
</subparagraph><subparagraph id="idAC43222D880146E2A67DFF4F3B628422"><enum>(D)</enum><text>to support the
stability of the broader financial system.</text>
</subparagraph></paragraph></subsection><subsection id="IDeff39b84e9154ef1aa2c2352ce4f665c"><enum>(b)</enum><header>Purpose</header><text>The
purpose of this title is to mitigate systemic risk in the financial system and
promote financial stability by—</text>
<paragraph id="IDb8afd3e392fc4b2c9ef21cf7e7696614"><enum>(1)</enum><text>authorizing the
Board of Governors to prescribe uniform standards for the—</text>
<subparagraph id="id0090B169FA874180A90C71F7363156DA"><enum>(A)</enum><text>management of
risks by systemically important financial market utilities; and</text>
</subparagraph><subparagraph id="idBF93A780EA23409892E6ED48D9B650B9"><enum>(B)</enum><text>conduct of
systemically important payment, clearing, and settlement activities by
financial institutions;</text>
</subparagraph></paragraph><paragraph id="ID783d923fa9b34e10ad3b09ef0e20c3bb"><enum>(2)</enum><text>providing the
Board of Governors an enhanced role in the supervision of risk management
standards for systemically important financial market utilities;</text>
</paragraph><paragraph id="ID049c7e92034640e2a2d88634d0b3c4a3"><enum>(3)</enum><text>strengthening the
liquidity of systemically important financial market utilities; and</text>
</paragraph><paragraph id="ID77c8aec894c14e3f85f34c249a2e1c15"><enum>(4)</enum><text>providing the
Board of Governors an enhanced role in the supervision of risk management
standards for systemically important payment, clearing, and settlement
activities by financial institutions.</text>
</paragraph></subsection></section><section id="ID9f1fd09eead4486d88b1625e69169ea8"><enum>803.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="idD823A574638940B6962CD6F8C2B41F94"><enum>(1)</enum><header>Appropriate
financial regulator</header><text>The term <quote>appropriate financial
regulator</quote> means—</text>
<subparagraph id="ID1fcedcb5e54c4070a756219364e9f8da"><enum>(A)</enum><text>the primary
financial regulatory agency, as defined in section 2 of this Act;</text>
</subparagraph><subparagraph id="ID7ccb030b38c5474f9f80e141e30fa084"><enum>(B)</enum><text>the National
Credit Union Administration, with respect to any insured credit union under the
Federal Credit Union Act (12 U.S.C. 1751 et seq.); and</text>
</subparagraph><subparagraph id="IDc3f1c5883dfb4d0c9a4b3990c216c024"><enum>(C)</enum><text>the Board of
Governors, with respect to organizations operating under section 25A of the
Federal Reserve Act (12 U.S.C. 611), and any other financial institution
engaged in a designated activity.</text>
</subparagraph></paragraph><paragraph id="ID6a2a0f971f0742c28a5ff64374d203e8"><enum>(2)</enum><header>Designated
activity</header><text>The term <term>designated activity</term> means a
payment, clearing, or settlement activity that the Council has designated as
systemically important under section 804.</text>
</paragraph><paragraph id="IDc4c14d9a59bc4d33af86677aaf3bfe92"><enum>(3)</enum><header>Designated
financial market utility</header><text>The term <term>designated financial
market utility</term> means a financial market utility that the Council has
designated as systemically important under section 804.</text>
</paragraph><paragraph id="ID727e72566a734ab29771549cb3a0474e"><enum>(4)</enum><header>Financial
institution</header><text>The term <term>financial institution</term>
means—</text>
<subparagraph id="ID08ceb45b59394e84865f72325780e73b"><enum>(A)</enum><text>a
depository institution, as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813);</text>
</subparagraph><subparagraph id="ID66ea6b9d3d7f4c3ea1642a305625c8b9"><enum>(B)</enum><text>a
branch or agency of a foreign bank, as defined in section 1(b) of the
International Banking Act of 1978 (12 U.S.C. 3101);</text>
</subparagraph><subparagraph id="ID4bad93bf5a794b8f96eb254f43608449"><enum>(C)</enum><text>an organization
operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C.
601–604a and 611 through 631);</text>
</subparagraph><subparagraph id="ID2edfc2dd6481430a80766b620e8f0aa3"><enum>(D)</enum><text>a
credit union, as defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752);</text>
</subparagraph><subparagraph id="ID09d1a89c11584f55838aaf00a3f9d1ff"><enum>(E)</enum><text>a
broker or dealer, as defined in section 3 of the Securities Exchange Act of
1934 (15 U.S.C. 78c);</text>
</subparagraph><subparagraph id="ID9ab1ba1b4cd94661a1e6f5e2adcbcd87"><enum>(F)</enum><text>an investment
company, as defined in section 3 of the Investment Company Act of 1940 (15
U.S.C. 80a–3);</text>
</subparagraph><subparagraph id="ID96057d6ef1db4dc988e00d215720f4fa"><enum>(G)</enum><text>an insurance
company, as defined in section 2 of the Investment Company Act of 1940 (15
U.S.C. 80a–2);</text>
</subparagraph><subparagraph id="ID07e2fbef61594bfeaf32fcdd3a22142e"><enum>(H)</enum><text>an investment
adviser, as defined in section 202 of the Investment Advisers Act of 1940 (15
U.S.C. 80b–2);</text>
</subparagraph><subparagraph id="ID0bce430e051a4afaad4189dbbd7bc537"><enum>(I)</enum><text>a
futures commission merchant, commodity trading advisor, or commodity pool
operator, as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a);
and</text>
</subparagraph><subparagraph id="ID6681b7f9ba834ba580f4ffca4bb1f87a"><enum>(J)</enum><text>any company
engaged in activities that are financial in nature or incidental to a financial
activity, as described in section 4 of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(k)).</text>
</subparagraph></paragraph><paragraph id="IDdb521a437ef24822a604294dd5fc5e41"><enum>(5)</enum><header>Financial
market utility</header><text>The term <term>financial market utility</term>
means any person that manages or operates a multilateral system for the purpose
of transferring, clearing, or settling payments, securities, or other financial
transactions among financial institutions or between financial institutions and
the person.</text>
</paragraph><paragraph id="IDb6b7f7c2fdf44a01b69821c123ba2c59"><enum>(6)</enum><header>Payment,
clearing, or settlement activity</header>
<subparagraph id="idAFFD4DA6FE9B4CA5BA9D21059C04D39B"><enum>(A)</enum><header>In
general</header><text>The term <term>payment, clearing, or settlement
activity</term> means an activity carried out by 1 or more financial
institutions to facilitate the completion of financial transactions.</text>
</subparagraph><subparagraph id="idF2753EDF516B4B209809AD0EFEC2E171"><enum>(B)</enum><header>Financial
transaction</header><text>For the purposes of subparagraph (A), the term
<quote>financial transaction</quote> includes—</text>
<clause id="id8ECD57AA859A46519B4BFE91B87A4C28"><enum>(i)</enum><text>funds
transfers;</text>
</clause><clause id="id68F27AD8F37E48869EEB3B01D16CEF9C"><enum>(ii)</enum><text>securities
contracts;</text>
</clause><clause id="id00782AAA19484C4CB6870D4D7313A810"><enum>(iii)</enum><text>contracts of
sale of a commodity for future delivery;</text>
</clause><clause id="idED3AC1596AC347D2B3F68669FA5532AF"><enum>(iv)</enum><text>forward
contracts;</text>
</clause><clause id="id6F8590A5459E45958F9BE21A0CD9D785"><enum>(v)</enum><text>repurchase
agreements;</text>
</clause><clause id="id894C20F69E97474B95240E18B79ED2A3"><enum>(vi)</enum><text>swaps;</text>
</clause><clause id="id759CFEC45E444248BA4F0303E589F278"><enum>(vii)</enum><text>security-based
swaps;</text>
</clause><clause id="id6A06C2EEA374429BBC5D3DA1775E5E87"><enum>(viii)</enum><text>swap
agreements;</text>
</clause><clause id="id9D0F3FCD4B284EDCB02D2B0D4683FAB7"><enum>(ix)</enum><text>security-based
swap agreements;</text>
</clause><clause id="idA2384A78AE7C49BB8DFA2508DA8B4837"><enum>(x)</enum><text>foreign
exchange contracts;</text>
</clause><clause id="idA3CA5C58A7DB4E86829C9D8E5C125F6E"><enum>(xi)</enum><text>financial
derivatives contracts; and</text>
</clause><clause id="id4C2DD966E4DE4F65B498D78621E3C9FC"><enum>(xii)</enum><text>any
similar transaction that the Council determines to be a financial transaction
for purposes of this title.</text>
</clause></subparagraph><subparagraph id="idCF64BC5CB6C74E8B855E82EA9F0AA774"><enum>(C)</enum><header>Included
activities</header><text>When conducted with respect to a financial
transaction, payment, clearing, and settlement activities may include—</text>
<clause id="id1A38699385B24DE68B21E8F82C661845"><enum>(i)</enum><text>the
calculation and communication of unsettled financial transactions between
counterparties;</text>
</clause><clause id="id351A1E01F71142ABAC5C58AC73620A63"><enum>(ii)</enum><text>the
netting of transactions;</text>
</clause><clause id="idC63E95B781A542B689906D95AF66E7D4"><enum>(iii)</enum><text>provision and
maintenance of trade, contract, or instrument information;</text>
</clause><clause id="idF0BBDBEF5B1D4B05808BF85F741EB848"><enum>(iv)</enum><text>the
management of risks and activities associated with continuing financial
transactions;</text>
</clause><clause id="id34CBAA2A4A8148DCA064D02A77C77E2F"><enum>(v)</enum><text>transmittal and
storage of payment instructions;</text>
</clause><clause id="id0C699138D05146D993FBA5EA1EE14D62"><enum>(vi)</enum><text>the
movement of funds;</text>
</clause><clause id="idE27A0C751E0C4CD5971702453386490E"><enum>(vii)</enum><text>the
final settlement of financial transactions; and</text>
</clause><clause id="idD942792231B74DD8875A8AEC6113FD85"><enum>(viii)</enum><text>other similar
functions that the Council may determine.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="IDf52b4bb87b6e4088b19c3da7f4ec3a25"><enum>(7)</enum><header>Supervisory
agency</header>
<subparagraph commented="no" id="idED7838A467384D9B8F6512D21C0B8125"><enum>(A)</enum><header>In
general</header><text>The term <term>Supervisory Agency</term> means the
Federal agency that has primary jurisdiction over a designated financial market
utility under Federal banking, securities, or commodity futures laws, as
follows:</text>
<clause commented="no" id="IDc0485caba41d414baf61888ab73d886c"><enum>(i)</enum><text>The Securities
and Exchange Commission, with respect to a designated financial market utility
that is a clearing agency registered with the Securities and Exchange
Commission.</text>
</clause><clause commented="no" id="ID15fb30d9a64d4b58abfa4375ecf85d2f"><enum>(ii)</enum><text>The Commodity
Futures Trading Commission, with respect to a designated financial market
utility that is a derivatives clearing organization registered with the
Commodity Futures Trading Commission.</text>
</clause><clause commented="no" id="ID8159d8f668764bb296fad20edf9f68d7"><enum>(iii)</enum><text>The appropriate
Federal banking agency, with respect to a designated financial market utility
that is an institution described in section 3(q) of the Federal Deposit
Insurance Act.</text>
</clause><clause commented="no" id="id009D83A8D0C541519A9914CADD6F2FD3"><enum>(iv)</enum><text>The Board of
Governors, with respect to a designated financial market utility that is
otherwise not subject to the jurisdiction of any agency listed in clauses (i),
(ii), and (iii).</text>
</clause></subparagraph><subparagraph commented="no" id="id68BC538A89054209A12029AB7C8E0232"><enum>(B)</enum><header>Multiple agency
jurisdiction</header><text>If a designated financial market utility is subject
to the jurisdictional supervision of more than 1 agency listed in subparagraph
(A), then such agencies should agree on 1 agency to act as the Supervisory
Agency, and if such agencies cannot agree on which agency has primary
jurisdiction, the Council shall decide which agency is the Supervisory Agency
for purposes of this title.</text>
</subparagraph></paragraph><paragraph id="ID3de924a14e79461581cb5d4af5e80ed8"><enum>(8)</enum><header>Systemically
important and systemic importance</header><text>The terms <term>systemically
important</term> and <term>systemic importance</term> mean a situation where
the failure of or a disruption to the functioning of a financial market utility
or the conduct of a payment, clearing, or settlement activity could create, or
increase, the risk of significant liquidity or credit problems spreading among
financial institutions or markets and thereby threaten the stability of the
financial system.</text>
</paragraph></section><section id="ID9a34137721634e529ee12aa3412a7e75"><enum>804.</enum><header>Designation of
systemic importance</header>
<subsection id="ID5a4ffa18388e421bbbaf6d8c23dd51de"><enum>(a)</enum><header>Designation</header>
<paragraph id="ID06a5b6a3b2a64bfda6a6ad0dd4ec0209"><enum>(1)</enum><header>Financial
Stability Oversight Council</header><text>The Council, on a nondelegable basis
and by a vote of not fewer than <fraction>2/3</fraction> of members then
serving, including an affirmative vote by the Chairperson of the Council, shall
designate those financial market utilities or payment, clearing, or settlement
activities that the Council determines are, or are likely to become,
systemically important.</text>
</paragraph><paragraph id="ID44e67bc3ef554a208dbe99fad957de5c"><enum>(2)</enum><header>Considerations</header><text>In
determining whether a financial market utility or payment, clearing, or
settlement activity is, or is likely to become, systemically important, the
Council shall take into consideration the following:</text>
<subparagraph id="ID128e1a7452e845128c54ef173b18990e"><enum>(A)</enum><text>The aggregate
monetary value of transactions processed by the financial market utility or
carried out through the payment, clearing, or settlement activity.</text>
</subparagraph><subparagraph id="idD104F6ED9F674681A9E1F43E497696E4"><enum>(B)</enum><text>The aggregate
exposure of the financial market utility or a financial institution engaged in
payment, clearing, or settlement activities to its counterparties.</text>
</subparagraph><subparagraph id="IDfe45c6dda4c9484d8b961a072f734d80"><enum>(C)</enum><text>The relationship,
interdependencies, or other interactions of the financial market utility or
payment, clearing, or settlement activity with other financial market utilities
or payment, clearing, or settlement activities.</text>
</subparagraph><subparagraph id="ID13e49406c4d048d8af932e6333c732ca"><enum>(D)</enum><text>The effect that
the failure of or a disruption to the financial market utility or payment,
clearing, or settlement activity would have on critical markets, financial
institutions, or the broader financial system.</text>
</subparagraph><subparagraph id="IDa0ec1d5b8ec241d8845c7b3d0aa32c19"><enum>(E)</enum><text>Any other factors
that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDd996177cdbf74667b6efd483477d240e"><enum>(b)</enum><header>Rescission of
designation</header>
<paragraph id="id9F0D4AF689F94671A6563D3C00D8C3CB"><enum>(1)</enum><header>In
general</header><text>The Council, on a nondelegable basis and by a vote of not
fewer than <fraction>2/3</fraction> of members then serving, including an
affirmative vote by the Chairperson of the Council, shall rescind a designation
of systemic importance for a designated financial market utility or designated
activity if the Council determines that the utility or activity no longer meets
the standards for systemic importance.</text>
</paragraph><paragraph id="id3535E965F3BA4419859E5EB2292EDA30"><enum>(2)</enum><header>Effect of
rescission</header><text>Upon rescission, the financial market utility or
financial institutions conducting the activity will no longer be subject to the
provisions of this title or any rules or orders prescribed by the Council under
this title.</text>
</paragraph></subsection><subsection id="ID23c1fa3705d34249b63bd3bc312e64ca"><enum>(c)</enum><header>Consultation
and notice and opportunity for hearing</header>
<paragraph id="ID6f6b17d268574d559089e3b3dc678d6b"><enum>(1)</enum><header>Consultation</header><text>Before
making any determination under subsection (a) or (b), the Council shall consult
with the relevant Supervisory Agency and the Board of Governors.</text>
</paragraph><paragraph id="ID805c4b738e2f41cf8162d0d66a91947a"><enum>(2)</enum><header>Advance notice
and opportunity for hearing</header>
<subparagraph id="IDd81e9ade73fc4ebdbd8cb4c7744437ab"><enum>(A)</enum><header>In
general</header><text>Before making any determination under subsection (a) or
(b), the Council shall provide the financial market utility or, in the case of
a payment, clearing, or settlement activity, financial institutions with
advance notice of the proposed determination of the Council.</text>
</subparagraph><subparagraph id="IDcbfad3cf6a3a4e368f12713606c163b1"><enum>(B)</enum><header>Notice in
Federal register</header><text>The Council shall provide such advance notice to
financial institutions by publishing a notice in the Federal Register.</text>
</subparagraph><subparagraph id="IDfbb20dd0b6ab4705ac6c07354908ebf6"><enum>(C)</enum><header>Requests for
hearing</header><text>Within 30 days from the date of any notice of the
proposed determination of the Council, the financial market utility or, in the
case of a payment, clearing, or settlement activity, a financial institution
engaged in the designated activity may request, in writing, an opportunity for
a written or oral hearing before the Council to demonstrate that the proposed
designation or rescission of designation is not supported by substantial
evidence.</text>
</subparagraph><subparagraph id="IDe6a9c414753242b9a74d38e4bb20f553"><enum>(D)</enum><header>Written
submissions</header><text>Upon receipt of a timely request, the Council shall
fix a time, not more than 30 days after receipt of the request, unless extended
at the request of the financial market utility or financial institution, and
place at which the financial market utility or financial institution may
appear, personally or through counsel, to submit written materials, or, at the
sole discretion of the Council, oral testimony or oral argument.</text>
</subparagraph></paragraph><paragraph id="ID857c77aa534b46a78ebd51d0f14cd68a"><enum>(3)</enum><header>Emergency
exception</header>
<subparagraph id="ID858d39a1265241939981f4a505aaa07b"><enum>(A)</enum><header>Waiver or
modification by vote of the Council</header><text>The Council may waive or
modify the requirements of paragraph (2) if the Council determines, by an
affirmative vote of not less than <fraction>2/3</fraction> of all members then
serving, including an affirmative vote by the Chairperson of the Council, that
the waiver or modification is necessary to prevent or mitigate an immediate
threat to the financial system posed by the financial market utility or the
payment, clearing, or settlement activity.</text>
</subparagraph><subparagraph id="IDa32a23cb0b214d2b94988559306593d7"><enum>(B)</enum><header>Notice of
waiver or modification</header><text>The Council shall provide notice of the
waiver or modification to the financial market utility concerned or, in the
case of a payment, clearing, or settlement activity, to financial institutions,
as soon as practicable, which shall be no later than 24 hours after the waiver
or modification in the case of a financial market utility and 3 business days
in the case of financial institutions. The Council shall provide the notice to
financial institutions by posting a notice on the website of the Council and by
publishing a notice in the Federal Register.</text>
</subparagraph></paragraph></subsection><subsection id="IDd72a7794ef9a4e69abe4328353e57b6d"><enum>(d)</enum><header>Notification of
final determination</header>
<paragraph id="ID6a2f502e18a54fde8c61fda35cc7ac3b"><enum>(1)</enum><header>After
hearing</header><text>Within 60 days of any hearing under subsection (c)(3),
the Council shall notify the financial market utility or financial institutions
of the final determination of the Council in writing, which shall include
findings of fact upon which the determination of the Council is based.</text>
</paragraph><paragraph id="ID7e79d34dda2f4eada8466f7fe3d9937b"><enum>(2)</enum><header>When no hearing
requested</header><text>If the Council does not receive a timely request for a
hearing under subsection (c)(3), the Council shall notify the financial market
utility or financial institutions of the final determination of the Council in
writing not later than 30 days after the expiration of the date by which a
financial market utility or a financial institution could have requested a
hearing. All notices to financial institutions under this subsection shall be
published in the Federal Register.</text>
</paragraph></subsection><subsection id="id2898ACEDD4FD491F88896EDF6848832E"><enum>(e)</enum><header>Extension of
time periods</header><text>The Council may extend the time periods established
in subsections (c) and (d) as the Council determines to be necessary or
appropriate.</text>
</subsection></section><section id="ID378816429e954d6e869531ce46dd38d4"><enum>805.</enum><header>Standards for
systemically important financial market utilities and payment, clearing, or
settlement activities</header>
<subsection id="IDecbea6caadb446fab33e7fd4a6131cd3"><enum>(a)</enum><header>Authority To
prescribe standards</header><text>The Board, by rule or order, and in
consultation with the Council and the Supervisory Agencies, shall prescribe
risk management standards, taking into consideration relevant international
standards and existing prudential requirements, governing—</text>
<paragraph id="idACD5C350D8054D24928A1F0179450EA3"><enum>(1)</enum><text>the
operations related to the payment, clearing, and settlement activities of
designated financial market utilities; and</text>
</paragraph><paragraph id="id30C84EE0777B4AED8DFC4AA34E40A74E"><enum>(2)</enum><text>the
conduct of designated activities by financial institutions.</text>
</paragraph></subsection><subsection id="ID9d6d0156864340a19a4413c837cb1f34"><enum>(b)</enum><header>Objectives and
principles</header><text>The objectives and principles for the risk management
standards prescribed under subsection (a) shall be to—</text>
<paragraph id="ID8882a02e387c42f8a3e086a55be2935a"><enum>(1)</enum><text>promote robust
risk management;</text>
</paragraph><paragraph id="IDce84bf457b0249d29f9b62b98266858b"><enum>(2)</enum><text>promote safety
and soundness;</text>
</paragraph><paragraph id="ID1e3e16b684ce4c6b97e06121d0294819"><enum>(3)</enum><text>reduce systemic
risks; and</text>
</paragraph><paragraph id="ID7c7e5e51d60e42a288cc8768263ea2fe"><enum>(4)</enum><text>support the
stability of the broader financial system.</text>
</paragraph></subsection><subsection id="IDac4cf2a321594133a952883796821329"><enum>(c)</enum><header>Scope</header><text>The
standards prescribed under subsection (a) may address areas such as—</text>
<paragraph id="id8F4A414FA58A41D08AE42968E9C80631"><enum>(1)</enum><text>risk
management policies and procedures;</text>
</paragraph><paragraph id="id681F65D51A4D42D3B3FD417EA341B817"><enum>(2)</enum><text>margin and
collateral requirements;</text>
</paragraph><paragraph id="IDe9656dbf70564119875cf415402d55d0"><enum>(3)</enum><text>participant or
counterparty default policies and procedures;</text>
</paragraph><paragraph id="idD647FB4780AF416FB07B9713281B0243"><enum>(4)</enum><text>the
ability to complete timely clearing and settlement of financial
transactions;</text>
</paragraph><paragraph id="idA329E06996E446AEA0785E483F50B000"><enum>(5)</enum><text>capital and
financial resource requirements for designated financial market utilities;
and</text>
</paragraph><paragraph id="idA56E01D1FEA34B29A6A06893CF6A9D8C"><enum>(6)</enum><text>other areas that
the Board determines are necessary to achieve the objectives and principles in
subsection (b).</text>
</paragraph></subsection><subsection id="id0C005293186D4F8A98E2C82DA9099B35"><enum>(d)</enum><header>Threshold
level</header><text>The standards prescribed under subsection (a) governing the
conduct of designated activities by financial institutions shall, where
appropriate, establish a threshold as to the level or significance of
engagement in the activity at which a financial institution will become subject
to the standards with respect to that activity.</text>
</subsection><subsection id="ID2721f1c5ebfa4570b9aa9520aaa019d0"><enum>(e)</enum><header>Compliance
required</header><text>Designated financial market utilities and financial
institutions subject to the standards prescribed by the Board of Governors for
a designated activity shall conduct their operations in compliance with the
applicable risk management standards prescribed by the Board of
Governors.</text>
</subsection></section><section id="ID8b973f95ccce4cc2a2c964ceefd76603"><enum>806.</enum><header>Operations of
designated financial market utilities</header>
<subsection id="ID8051aefb14ac4188b5b5bf9206f34a62"><enum>(a)</enum><header>Federal reserve
account and services</header><text>The Board of Governors may authorize a
Federal Reserve Bank to establish and maintain an account for a designated
financial market utility and provide services to the designated financial
market utility that the Federal Reserve Bank is authorized under the Federal
Reserve Act to provide to a depository institution, subject to any applicable
rules, orders, standards, or guidelines prescribed by the Board of
Governors.</text>
</subsection><subsection id="IDd6d530049568469796af0b3917b64e32"><enum>(b)</enum><header>Advances</header><text>The
Board of Governors may authorize a Federal Reserve Bank to provide to a
designated financial market utility the same discount and borrowing privileges
as the Federal Reserve Bank may provide to a depository institution under the
Federal Reserve Act, subject to any applicable rules, orders, standards, or
guidelines prescribed by the Board of Governors.</text>
</subsection><subsection id="IDa16bdc92b8f944c99265ca7251aae71e"><enum>(c)</enum><header>Earnings on
Federal reserve balances</header><text>A Federal Reserve Bank may pay earnings
on balances maintained by or on behalf of a designated financial market utility
in the same manner and to the same extent as the Federal Reserve Bank may pay
earnings to a depository institution under the Federal Reserve Act, subject to
any applicable rules, orders, standards, or guidelines prescribed by the Board
of Governors.</text>
</subsection><subsection id="ID4a6b700ab7e34769ba7fdfd66bca154a"><enum>(d)</enum><header>Reserve
requirements</header><text>The Board of Governors may exempt a designated
financial market utility from, or modify any, reserve requirements under
section 19 of the Federal Reserve Act (12 U.S.C. 461) applicable to a
designated financial market utility.</text>
</subsection><subsection id="IDfb7200d4e50d4c0e8b96afe8afe8db8d"><enum>(e)</enum><header>Changes to
rules, procedures, or operations</header>
<paragraph id="ID2473ab16833149f5a951d2085b30f60f"><enum>(1)</enum><header>Advance
notice</header>
<subparagraph id="ID91726ee0a7f7468f86616a213c4e78a9"><enum>(A)</enum><header>Advance notice
of proposed changes required</header><text>A designated financial market
utility shall provide notice 60 days in advance advance notice to its
Supervisory Agency and the Board of Governors of any proposed change to its
rules, procedures, or operations that could, as defined in rules of the Board
of Governors, materially affect, the nature or level of risks presented by the
designated financial market utility.</text>
</subparagraph><subparagraph id="idA6127C5BA9A94AFAAC9BE48132DEA069"><enum>(B)</enum><header>Terms and
standards prescribed by the Board of Governors</header><text>The Board of
Governors shall prescribe regulations that define and describe the standards
for determining when notice is required to be provided under subparagraph
(A).</text>
</subparagraph><subparagraph id="ID0e2d15d6fb5c4b76a5c7eea4fbd3ce2d"><enum>(C)</enum><header>Contents of
notice</header><text>The notice of a proposed change shall describe—</text>
<clause id="id279654BA539449869FCAA2B7AF48777D"><enum>(i)</enum><text>the
nature of the change and expected effects on risks to the designated financial
market utility, its participants, or the market; and</text>
</clause><clause id="idBE882DE9A60C49CD807E4627178D77F3"><enum>(ii)</enum><text>how
the designated financial market utility plans to manage any identified
risks.</text>
</clause></subparagraph><subparagraph id="ID890d8069850e4f23bbaf565e5c6463f6"><enum>(D)</enum><header>Additional
information</header><text>The Supervisory Agency or the Board of Governors may
require a designated financial market utility to provide any information
necessary to assess the effect the proposed change would have on the nature or
level of risks associated with the designated financial market utility's
payment, clearing, or settlement activities and the sufficiency of any proposed
risk management techniques.</text>
</subparagraph><subparagraph id="IDcf6833ad3718486fbed8d57220cd802b"><enum>(E)</enum><header>Notice of
objection</header><text>The Supervisory Agency or the Board of Governors shall
notify the designated financial market utility of any objection regarding the
proposed change within 60 days from the later of—</text>
<clause id="IDa2dae6149bd74979a6ba71bc33aed5fd"><enum>(i)</enum><text>the
date that the notice of the proposed change is received; or</text>
</clause><clause id="ID7f9449e13e3c4511befbc9e9beb38e51"><enum>(ii)</enum><text>the
date any further information requested for consideration of the notice is
received.</text>
</clause></subparagraph><subparagraph id="ID08a809b942e24d18b32c81e22d8239df"><enum>(F)</enum><header>Change not
allowed if objection</header><text>A designated financial market utility shall
not implement a change to which the Board of Governors or the Supervisory
Agency has an objection.</text>
</subparagraph><subparagraph id="ID874a7a8678c14c598f905592262a38df"><enum>(G)</enum><header>Change allowed
if no objection within 60 days</header><text>A designated financial market
utility may implement a change if it has not received an objection to the
proposed change within 60 days of the later of—</text>
<clause id="IDa054c46b3a8449c2947f0b0f2d0f55e1"><enum>(i)</enum><text>the
date that the Supervisory Agency or the Board of Governors receives the notice
of proposed change; or</text>
</clause><clause id="ID5029587fa2544c3191723182a81c6c27"><enum>(ii)</enum><text>the
date the Supervisory Agency or the Board of Governors receives any further
information it requests for consideration of the notice.</text>
</clause></subparagraph><subparagraph id="IDa2175ec9375f46be8cc15fa2f421181c"><enum>(H)</enum><header>Review
extension for novel or complex issues</header><text>The Supervisory Agency or
the Board of Governors may, during the 60-day review period, extend the review
period for an additional 60 days for proposed changes that raise novel or
complex issues, subject to the Supervisory Agency or the Board of Governors
providing the designated financial market utility with prompt written notice of
the extension. Any extension under this subparagraph will extend the time
periods under subparagraphs (D) and (F).</text>
</subparagraph><subparagraph id="ID445ef40f68414298af05a1462574dbf1"><enum>(I)</enum><header>Change allowed
earlier if notified of no objection</header><text>A designated financial market
utility may implement a change in less than 60 days from the date of receipt of
the notice of proposed change by the Supervisory Agency or the Board of
Governors, or the date the Supervisory Agency or the Board of Governors
receives any further information it requested, if the Supervisory Agency or the
Board of Governors notifies the designated financial market utility in writing
that it does not object to the proposed change and authorizes the designated
financial market utility to implement the change on an earlier date, subject to
any conditions imposed by the Supervisory Agency or the Board of
Governors.</text>
</subparagraph></paragraph><paragraph id="ID645a087878ca42d58825617e7f5e2049"><enum>(2)</enum><header>Emergency
changes</header>
<subparagraph id="ID62ca23ff889640b3b93fd16c06e47e06"><enum>(A)</enum><header>In
general</header><text>A designated financial market utility may implement a
change that would otherwise require advance notice under this subsection if it
determines that—</text>
<clause id="IDbadf5db4b9df4f7d85c765d04c56438b"><enum>(i)</enum><text>an
emergency exists; and</text>
</clause><clause id="IDf407a9d8c93442d593c86b6e155f943e"><enum>(ii)</enum><text>immediate
implementation of the change is necessary for the designated financial market
utility to continue to provide its services in a safe and sound manner.</text>
</clause></subparagraph><subparagraph id="ID9339610dd2bc419584d656123cae1c4f"><enum>(B)</enum><header>Notice required
within 24 hours</header><text>The designated financial market utility shall
provide notice of any such emergency change to its Supervisory Agency and the
Board of Governors, as soon as practicable, which shall be no later than 24
hours after implementation of the change.</text>
</subparagraph><subparagraph id="ID9421a8b1cda840f5b71c83b251d84a67"><enum>(C)</enum><header>Contents of
emergency notice</header><text>In addition to the information required for
changes requiring advance notice, the notice of an emergency change shall
describe—</text>
<clause id="IDa33abe9de03e4241820e9a0ea5ca5110"><enum>(i)</enum><text>the
nature of the emergency; and</text>
</clause><clause id="IDd0b9f5fb5e6643c986abc3ba75f4cc9a"><enum>(ii)</enum><text>the
reason the change was necessary for the designated financial market utility to
continue to provide its services in a safe and sound manner.</text>
</clause></subparagraph><subparagraph id="ID91ddf60ac27746f79a8bed3f0af8381b"><enum>(D)</enum><header>Modification or
rescission of change may be required</header><text>The Supervisory Agency or
the Board of Governors may require modification or rescission of the change if
it finds that the change is not consistent with the purposes of this Act or any
rules, orders, or standards prescribed by the Board of Governors
hereunder.</text>
</subparagraph></paragraph><paragraph id="IDfed4efc3465849888b2f591d8a1a8d9c"><enum>(3)</enum><header>Copying the
Board of Governors</header><text>The Supervisory Agency shall provide the Board
of Governors concurrently with a complete copy of any notice, request, or other
information it issues, submits, or receives under this subsection.</text>
</paragraph><paragraph id="ID1e3fe4a7d23e4594b215090c38f50db0"><enum>(4)</enum><header>Consultation
with Board of Governors</header><text>Before taking any action on, or
completing its review of, a change proposed by a designated financial market
utility, the Supervisory Agency shall consult with the Board of
Governors.</text>
</paragraph></subsection></section><section id="ID1aec493114184f1593bc6649df6eca68"><enum>807.</enum><header>Examination of
and enforcement actions against designated financial market utilities</header>
<subsection id="IDe799667ed2c74e31ad756671e606227a"><enum>(a)</enum><header>Examination</header><text>Notwithstanding
any other provision of law and subject to subsection (d), the Supervisory
Agency shall conduct examinations of a designated financial market utility at
least once annually in order to determine the following:</text>
<paragraph id="ID043b38230f8349f8b07b9f4c3b67381e"><enum>(1)</enum><text>The
nature of the operations of, and the risks borne by, the designated financial
market utility.</text>
</paragraph><paragraph id="ID5a94f346c75740ce8551f0b2f62d5f98"><enum>(2)</enum><text>The
financial and operational risks presented by the designated financial market
utility to financial institutions, critical markets, or the broader financial
system.</text>
</paragraph><paragraph id="ID72a0d1ec0ed748d98de77b293bb8db9b"><enum>(3)</enum><text>The
resources and capabilities of the designated financial market utility to
monitor and control such risks.</text>
</paragraph><paragraph id="IDbe3d93c8f91444ddbc4a6270a7892d73"><enum>(4)</enum><text>The
safety and soundness of the designated financial market utility.</text>
</paragraph><paragraph id="ID7ccee1cf4d1b4801988322b4191b6343"><enum>(5)</enum><text>The
designated financial market utility’s compliance with—</text>
<subparagraph id="idFD01E6B7EC544F469644C35AB3DEB446"><enum>(A)</enum><text>this title;
and</text>
</subparagraph><subparagraph id="idD854D2965C8444B99F886479A7F9A701"><enum>(B)</enum><text>the rules and
orders prescribed by the Board of Governors under this title.</text>
</subparagraph></paragraph></subsection><subsection id="ID35a4d0cab2d24b0ebf1c0f55378ba957"><enum>(b)</enum><header>Service
providers</header><text>Whenever a service integral to the operation of a
designated financial market utility is performed for the designated financial
market utility by another entity, whether an affiliate or non-affiliate and
whether on or off the premises of the designated financial market utility, the
Supervisory Agency may examine whether the provision of that service is in
compliance with applicable law, rules, orders, and standards to the same extent
as if the designated financial market utility were performing the service on
its own premises.</text>
</subsection><subsection id="ID0ac290a479c5440083009cd53a146ec9"><enum>(c)</enum><header>Enforcement</header><text>For
purposes of enforcing the provisions of this section, a designated financial
market utility shall be subject to, and the appropriate Supervisory Agency
shall have authority under the provisions of subsections (b) through (n) of
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the same
manner and to the same extent as if the designated financial market utility was
an insured depository institution and the Supervisory Agency was the
appropriate Federal banking agency for such insured depository
institution.</text>
</subsection><subsection id="ID4a30a465b4d2490bb7789c6bac86d6a0"><enum>(d)</enum><header>Board of
Governors involvement in examinations</header>
<paragraph id="IDbe58f537c3884686bf5ddb4910cd5056"><enum>(1)</enum><header>Board of
Governors consultation on examination planning</header><text>The Supervisory
Agency shall consult with the Board of Governors regarding the scope and
methodology of any examination conducted under subsections (a) and (b).</text>
</paragraph><paragraph id="ID35f92758ada84022bad19c56d61bacac"><enum>(2)</enum><header>Board of
Governors participation in examination</header><text>The Board of Governors
may, in its discretion, participate in any examination led by a Supervisory
Agency and conducted under subsections (a) and (b).</text>
</paragraph></subsection><subsection id="IDfd65dbf147594d86b9bda2047df3c783"><enum>(e)</enum><header>Board of
Governors enforcement recommendations</header>
<paragraph id="ID7a7ac5c64ad448e7a486b9a2a4291bac"><enum>(1)</enum><header>Recommendation</header><text>The
Board of Governors may at any time recommend to the Supervisory Agency that
such agency take enforcement action against a designated financial market
utility. Any such recommendation for enforcement action shall provide a
detailed analysis supporting the recommendation of the Board of
Governors.</text>
</paragraph><paragraph id="IDdb3dc33de1a04c35867ea6c37575c3bc"><enum>(2)</enum><header>Consideration</header><text>The
Supervisory Agency shall consider the recommendation of the Board of Governors
and submit a response to the Board of Governors within 60 days.</text>
</paragraph><paragraph id="IDbb6cb37e243b476095a4b3a203253020"><enum>(3)</enum><header>Mediation</header><text>If
the Supervisory Agency rejects, in whole or in part, the recommendation of the
Board of Governors, the Board of Governors may dispute the matter by referring
the recommendation to the Council, which shall attempt to resolve the
dispute.</text>
</paragraph><paragraph id="IDe316d110f3b74b4996d03b6b38798a7f"><enum>(4)</enum><header>Enforcement
action</header><text>If the Council is unable to resolve the dispute under
paragraph (3) within 30 days from the date of referral, the Board of Governors
may, upon a vote of its members—</text>
<subparagraph id="idAE2D144AD5A84813AC33451C4E6E0CFB"><enum>(A)</enum><text>exercise the
enforcement authority referenced in subsection (c) as if it were the
Supervisory Agency; and</text>
</subparagraph><subparagraph id="id98E6A8472613483D9556A41881A50507"><enum>(B)</enum><text>take enforcement
action against the designated financial market utility.</text>
</subparagraph></paragraph></subsection><subsection id="IDf738b728c6e74f2da5f6594ffcfaa94e"><enum>(f)</enum><header>Emergency
enforcement actions by the Board of Governors</header>
<paragraph id="ID74682f60b29d459c8b9dbbc9457d5b01"><enum>(1)</enum><header>Imminent risk
of substantial harm</header><text>The Board of Governors may, after consulting
with the Council and the Supervisory Agency, take enforcement action against a
designated financial market utility if the Board of Governors has reasonable
cause to believe that—</text>
<subparagraph id="ID2c9c7de9c3e344aabad43a76e86d9b04"><enum>(A)</enum><text>either—</text>
<clause id="IDe893cb6d735c43039027b80cf91834bd"><enum>(i)</enum><text>an
action engaged in, or contemplated by, a designated financial market utility
(including any change proposed by the designated financial market utility to
its rules, procedures, or operations that would otherwise be subject to section
806(e)) poses an imminent risk of substantial harm to financial institutions,
critical markets, or the broader financial system; or</text>
</clause><clause id="ID0a0e39f9307a4b159a1c47a735d0a2e5"><enum>(ii)</enum><text>the
condition of a designated financial market utility poses an imminent risk of
substantial harm to financial institutions, critical markets, or the broader
financial system; and</text>
</clause></subparagraph><subparagraph id="ID29e6b3fc323f431d902fb038ded96fd6"><enum>(B)</enum><text>the imminent risk
of substantial harm precludes the Board of Governors’ use of the procedures in
subsection (e).</text>
</subparagraph></paragraph><paragraph id="ID7f40a2c0e0b7477888a5b9ab7a9f6b35"><enum>(2)</enum><header>Enforcement
authority</header><text>For purposes of taking enforcement action under
paragraph (1), a designated financial market utility shall be subject to, and
the Board of Governors shall have authority under the provisions of subsections
(b) through (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818) in the same manner and to the same extent as if the designated financial
market utility was an insured depository institution and the Board of Governors
was the appropriate Federal banking agency for such insured depository
institution.</text>
</paragraph><paragraph id="ID37f50a0a0b6f4733a420ca235063b38d"><enum>(3)</enum><header>Prompt notice
to supervisory agency of enforcement action</header><text>Within 24 hours of
taking an enforcement action under this subsection, the Board of Governors
shall provide written notice to the designated financial market utility’s
Supervisory Agency containing a detailed analysis of the action of the Board of
Governors, with supporting documentation included.</text>
</paragraph></subsection></section><section id="ID8889657ca1c84459af9b47932f206bc6"><enum>808.</enum><header>Examination of
and enforcement actions against financial institutions subject to standards for
designated activities</header>
<subsection id="ID7643f74f06634a46aac9c616bc5af678"><enum>(a)</enum><header>Examination</header><text>The
appropriate financial regulator is authorized to examine a financial
institution subject to the standards prescribed by the Board of Governors for a
designated activity in order to determine the following:</text>
<paragraph id="ID0d4b5e30a6674831bba9fd2f182e6fb8"><enum>(1)</enum><text>The
nature and scope of the designated activities engaged in by the financial
institution.</text>
</paragraph><paragraph id="ID22a8fdfe75a940bfb159c2f4932e1f21"><enum>(2)</enum><text>The
financial and operational risks the designated activities engaged in by the
financial institution may pose to the safety and soundness of the financial
institution.</text>
</paragraph><paragraph id="ID3a8671c77b3e4c3eae16a81a52f5d2f0"><enum>(3)</enum><text>The
financial and operational risks the designated activities engaged in by the
financial institution may pose to other financial institutions, critical
markets, or the broader financial system.</text>
</paragraph><paragraph id="IDe974528887a84295920d7795d5b3b7c6"><enum>(4)</enum><text>The
resources available to and the capabilities of the financial institution to
monitor and control the risks described in paragraphs (2) and (3).</text>
</paragraph><paragraph id="ID942eb96ef077469fbcbd4028addeef1a"><enum>(5)</enum><text>The
financial institution’s compliance with this title and the rules and orders
prescribed by the Board of Governors under this title.</text>
</paragraph></subsection><subsection id="ID45ad535ca264419c9535a99162bbdad4"><enum>(b)</enum><header>Enforcement</header><text>For
purposes of enforcing the provisions of this section, and the rules and orders
prescribed by the Board of Governors under this section, a financial
institution subject to the standards prescribed by the Board of Governors for a
designated activity shall be subject to, and the appropriate financial
regulator shall have authority under the provisions of subsections (b) through
(n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the
same manner and to the same extent as if the financial institution was an
insured depository institution and the appropriate financial regulator was the
appropriate Federal banking agency for such insured depository
institution.</text>
</subsection><subsection id="ID5c702b07d92f48bfbe6071b0e7d091ff"><enum>(c)</enum><header>Technical
assistance</header><text>The Board of Governors shall consult with and provide
such technical assistance as may be required by the appropriate financial
regulators to ensure that the rules and orders prescribed by the Board of
Governors under this title are interpreted and applied in as consistent and
uniform a manner as practicable.</text>
</subsection><subsection id="ID5d1247e53fb74e72833984c8e4d22ee1"><enum>(d)</enum><header>Delegation</header>
<paragraph id="IDebcc4ab6dd5e4843a120d9b7f3a85851"><enum>(1)</enum><header>Examination</header>
<subparagraph id="IDa7547537d3c4477c8625caed2430e34f"><enum>(A)</enum><header>Request to
Board of Governors</header><text>The appropriate financial regulator may
request the Board of Governors to conduct or participate in an examination of a
financial institution subject to the standards prescribed by the Board of
Governors for a designated activity in order to assess the compliance of such
financial institution with—</text>
<clause id="idB698E70A6E6B4063931F9839845CBD34"><enum>(i)</enum><text>this
title; or</text>
</clause><clause id="id2EBD245C99704FA5883DCF6876FDCC1E"><enum>(ii)</enum><text>the
rules or orders prescribed by the Board of Governors under this title.</text>
</clause></subparagraph><subparagraph id="ID1057f5a4b4864d498013d41175ae8db2"><enum>(B)</enum><header>Examination by
Board of Governors</header><text>Upon receipt of an appropriate written
request, the Board of Governors will conduct the examination under such terms
and conditions to which the Board of Governors and the appropriate financial
regulator mutually agree.</text>
</subparagraph></paragraph><paragraph id="ID9685bfb3cb404977a6ecb848d08f9504"><enum>(2)</enum><header>Enforcement</header>
<subparagraph id="ID9c6dd893d5e5453a8e42dfacb2e011cf"><enum>(A)</enum><header>Request to
Board of Governors</header><text>The appropriate financial regulator may
request the Board of Governors to enforce this title or the rules or orders
prescribed by the Board of Governors under this title against a financial
institution that is subject to the standards prescribed by the Board of
Governors for a designated activity.</text>
</subparagraph><subparagraph id="IDbc7123106c334da2b715a63f490ded0c"><enum>(B)</enum><header>Enforcement by
Board of Governors</header><text>Upon receipt of an appropriate written
request, the Board of Governors shall determine whether an enforcement action
is warranted, and, if so, it shall enforce compliance with this title or the
rules or orders prescribed by the Board of Governors under this title and, if
so, the financial institution shall be subject to, and the Board of Governors
shall have authority under the provisions of subsections (b) through (n) of
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the same
manner and to the same extent as if the financial institution was an insured
depository institution and the Board of Governors was the appropriate Federal
banking agency for such insured depository institution</text>
</subparagraph></paragraph></subsection><subsection id="IDcf9a6b2a51a34461aca942b88998450b"><enum>(e)</enum><header>Back-up
authority of the Board of Governors</header>
<paragraph id="ID247e7e35afd24eafbbd610cc22d2746a"><enum>(1)</enum><header>Examination and
enforcement</header><text>Notwithstanding any other provision of law, the Board
of Governors may—</text>
<subparagraph id="ID3dde107a3a8c4bda9467082a0f755c4a"><enum>(A)</enum><text>conduct an
examination of the type described in subsection (a) of any financial
institution that is subject to the standards prescribed by the Board of
Governors for a designated activity; and</text>
</subparagraph><subparagraph id="ID902ff096e5074f6cbbd96fad7799fcf1"><enum>(B)</enum><text>enforce the
provisions of this title or any rules or orders prescribed by the Board of
Governors under this title against any financial institution that is subject to
the standards prescribed by the Board of Governors for a designated
activity.</text>
</subparagraph></paragraph><paragraph id="ID8bbece00e8004c24b0455b4b47f375c4"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="ID7234d3949e454d3f81e472ccfdaac4a8"><enum>(A)</enum><header>Examination</header><text>The
Board of Governors may exercise the authority described in paragraph (1)(A)
only if the Board of Governors has—</text>
<clause id="IDf307c01041c04655b1099c8443dd67e4"><enum>(i)</enum><text>reasonable cause
to believe that a financial institution is not in compliance with this title or
the rules or orders prescribed by the Board of Governors under this title with
respect to a designated activity;</text>
</clause><clause id="IDd820e04a1c1a4937949e9ffe8ea9ee7e"><enum>(ii)</enum><text>notified, in
writing, the appropriate financial regulator and the Council of its belief
under clause (i) with supporting documentation included;</text>
</clause><clause id="ID6ab43264d15a454f808d6e22f14a7034"><enum>(iii)</enum><text>requested the
appropriate financial regulator to conduct a prompt examination of the
financial institution; and</text>
</clause><clause id="IDddeb9aace83a497bb0757b3a9ec29c50"><enum>(iv)</enum><text>either—</text>
<subclause id="ID9ca690ebcab745f7a0d269ab932dda62"><enum>(I)</enum><text>not
been afforded a reasonable opportunity to participate in an examination of the
financial institution by the appropriate financial regulator within 30 days
after the date of the Board’s notification under clause (ii); or</text>
</subclause><subclause id="ID60e85bd5f1524a4b95cd49a44258ca17"><enum>(II)</enum><text>reasonable cause
to believe that the financial institution’s noncompliance with this title or
the rules or orders prescribed by the Board of Governors under this title poses
a substantial risk to other financial institutions, critical markets, or the
broader financial system, subject to the Board of Governors affording the
appropriate financial regulator a reasonable opportunity to participate in the
examination.</text>
</subclause></clause></subparagraph><subparagraph id="IDf421287577df45b685c0fd83d923e849"><enum>(B)</enum><header>Enforcement</header><text>The
Board of Governors may exercise the authority described in paragraph (1)(B)
only if the Board of Governors has—</text>
<clause id="IDc6989067346b4f209f494469ca18ec51"><enum>(i)</enum><text>reasonable cause
to believe that a financial institution is not in compliance with this title or
the rules or orders prescribed by the Board of Governors under this title with
respect to a designated activity;</text>
</clause><clause id="ID1c722744ff20439ab50e5854158078a3"><enum>(ii)</enum><text>notified, in
writing, the appropriate financial regulator and the Council of its belief
under clause (i) with supporting documentation included and with a
recommendation that the appropriate financial regulator take 1 or more specific
enforcement actions against the financial institution; and</text>
</clause><clause id="ID9a9fc55098d24221b62af25097a73bd2"><enum>(iii)</enum><text>either—</text>
<subclause id="ID1e3d03083892402f8fe0fd90f3ab8bc2"><enum>(I)</enum><text>not
been notified, in writing, by the appropriate financial regulator of the
commencement of an enforcement action recommended by the Board of Governors
against the financial institution within 60 days from the date of the
notification under clause (ii); or</text>
</subclause><subclause id="IDf63ddc34b0ca4e82b48b0c39fa834a2b"><enum>(II)</enum><text>reasonable cause
to believe that the financial institution’s noncompliance with this title or
the rules or orders prescribed by the Board of Governors under this title poses
a substantial risk to other financial institutions, critical markets, or the
broader financial system, subject to the Board of Governors notifying the
appropriate financial regulator of the Board’s enforcement action.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID4ebb0a1e742343eab9701eb9dc2d4b56"><enum>(3)</enum><header>Enforcement
provisions</header><text>For purposes of taking enforcement action under
paragraph (1), the financial institution shall be subject to, and the Board of
Governors shall have authority under the provisions of subsections (b) through
(n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the
same manner and to the same extent as if the financial institution was an
insured depository institution and the Board of Governors was the appropriate
Federal banking agency for such insured depository institution.</text>
</paragraph></subsection></section><section id="IDc854da55a6e6413ca70da163899a657d"><enum>809.</enum><header>Requests for
information, reports, or records</header>
<subsection id="IDf0118b1f9f0e41f19a89488cbfbc0a7c"><enum>(a)</enum><header>Information to
assess systemic importance</header>
<paragraph id="IDc3edcdfb92054476af745c7b96490777"><enum>(1)</enum><header>Financial
market utilities</header><text>The Council is authorized to require any
financial market utility to submit such information as the Council may require
for the sole purpose of assessing whether that financial market utility is
systemically important, but only if the Council has reasonable cause to believe
that the financial market utility meets the standards for systemic importance
set forth in section 804.</text>
</paragraph><paragraph id="ID2823094b2f114c31a138d22e68aa00c3"><enum>(2)</enum><header>Financial
institutions engaged in payment, clearing, or settlement
activities</header><text>The Council is authorized to require any financial
institution to submit such information as the Council may require for the sole
purpose of assessing whether any payment, clearing, or settlement activity
engaged in or supported by a financial institution is systemically important,
but only if the Council has reasonable cause to believe that the activity meets
the standards for systemic importance set forth in section 804.</text>
</paragraph></subsection><subsection id="ID632ec8d5ced94a94a80d035cde997031"><enum>(b)</enum><header>Reporting after
designation</header>
<paragraph id="ID26d087f99d46400dbde6d4feeca81fd4"><enum>(1)</enum><header>Designated
financial market utilities</header><text>The Board of Governors and the Council
may require a designated financial market utility to submit reports or data to
the Board of Governors and the Council in such frequency and form as deemed
necessary by the Board of Governors and the Council in order to assess the
safety and soundness of the utility and the systemic risk that the utility’s
operations pose to the financial system.</text>
</paragraph><paragraph id="ID35cc0886b5374bf2b411be8e25af19c3"><enum>(2)</enum><header>Financial
institutions subject to standards for designated activities</header><text>The
Board of Governors and the Council may require 1 or more financial institutions
subject to the standards prescribed by the Board of Governors for a designated
activity to submit, in such frequency and form as deemed necessary by the Board
of Governors and the Council, reports and data to the Board of Governors and
the Council solely with respect to the conduct of the designated activity and
solely to assess whether—</text>
<subparagraph id="ID88f7299a717345ac99ee84d9a1ade65e"><enum>(A)</enum><text>the rules,
orders, or standards prescribed by the Board of Governors with respect to the
designated activity appropriately address the risks to the financial system
presented by such activity; and</text>
</subparagraph><subparagraph id="ID028ad0fab2c84d3ba0a2affd9c36c8b2"><enum>(B)</enum><text>the financial
institutions are in compliance with this title and the rules and orders
prescribed by the Board of Governors under this title with respect to the
designated activity.</text>
</subparagraph></paragraph></subsection><subsection id="ID8f6e8b1dd7dc4b16b77b5215f0967993"><enum>(c)</enum><header>Coordination
with appropriate Federal supervisory agency</header>
<paragraph id="ID428cc254e2054e6b8145023cc13d109e"><enum>(1)</enum><header>Advance
coordination</header><text>Before directly requesting any material information
from, or imposing reporting or recordkeeping requirements on, any financial
market utility or any financial institution engaged in a payment, clearing, or
settlement activity, the Board of Governors and the Council shall coordinate
with the Supervisory Agency for a financial market utility or the appropriate
financial regulator for a financial institution to determine if the information
is available from or may be obtained by the agency in the form, format, or
detail required by the Board of Governors and the Council.</text>
</paragraph><paragraph id="IDde14a75de7d2479ca974372fac3d22e9"><enum>(2)</enum><header>Supervisory
reports</header><text>Notwithstanding any other provision of law, the
Supervisory Agency, the appropriate financial regulator, and the Board of
Governors are authorized to disclose to each other and the Council copies of
its examination reports or similar reports regarding any financial market
utility or any financial institution engaged in payment, clearing, or
settlement activities.</text>
</paragraph></subsection><subsection id="IDc5446b5f239746c39efaaf6a798f3d52"><enum>(d)</enum><header>Timing of
response from appropriate Federal supervisory agency</header><text>If the
information, report, records, or data requested by the Board of Governors or
the Council under subsection (c)(1) are not provided in full by the Supervisory
Agency or the appropriate financial regulator in less than 15 days after the
date on which the material is requested, the Board of Governors or the Council
may request the information or impose recordkeeping or reporting requirements
directly on such persons as provided in subsections (a) and (b) with notice to
the agency.</text>
</subsection><subsection id="ID1385c7daf01747c280a285e6359d99a0"><enum>(e)</enum><header>Sharing of
information</header>
<paragraph id="IDd3e61378e1e54f7a8ea0946cd6bc96b4"><enum>(1)</enum><header>Material
concerns</header><text>Notwithstanding any other provision of law, the Board of
Governors, the Council, the appropriate financial regulator, and any
Supervisory Agency are authorized to—</text>
<subparagraph id="idB6D7D64B215F4925B7CAE252BA2A5A2E"><enum>(A)</enum><text>promptly notify
each other of material concerns about a designated financial market utility or
any financial institution engaged in designated activities; and</text>
</subparagraph><subparagraph id="id2AE423E781384EE2A990A0B7EF2799AA"><enum>(B)</enum><text>share appropriate
reports, information, or data relating to such concerns.</text>
</subparagraph></paragraph><paragraph id="IDacc25dfed873497b819cc0fca814f66e"><enum>(2)</enum><header>Other
information</header><text>Notwithstanding any other provision of law, the Board
of Governors, the Council, the appropriate financial regulator, or any
Supervisory Agency may, under such terms and conditions as it deems
appropriate, provide confidential supervisory information and other information
obtained under this title to other persons it deems appropriate, including the
Secretary, State financial institution supervisory agencies, foreign financial
supervisors, foreign central banks, and foreign finance ministries, subject to
reasonable assurances of confidentiality.</text>
</paragraph></subsection><subsection id="ID58b07d41a88b4f5c99b49a3aaffcfff9"><enum>(f)</enum><header>Privilege
maintained</header><text>The Board of Governors, the Council, the appropriate
financial regulator, and any Supervisory Agency providing reports or data under
this section shall not be deemed to have waived any privilege applicable to
those reports or data, or any portion thereof, by providing the reports or data
to the other party or by permitting the reports or data, or any copies thereof,
to be used by the other party.</text>
</subsection><subsection id="ID3281e4c95d7d461bb5b1af09053a34f4"><enum>(g)</enum><header>Disclosure
exemption</header><text>Information obtained by the Board of Governors or the
Council under this section and any materials prepared by the Board of Governors
or the Council regarding its assessment of the systemic importance of financial
market utilities or any payment, clearing, or settlement activities engaged in
by financial institutions, and in connection with its supervision of designated
financial market utilities and designated activities, shall be confidential
supervisory information exempt from disclosure under section 552 of title 5,
United States Code. For purposes of such section 552, this subsection shall be
considered a statute described in subsection (b)(3) of such section 552.</text>
</subsection></section><section id="ID051c03986cbe4abca9945df02b04086b"><enum>810.</enum><header>Rulemaking</header><text display-inline="no-display-inline">The Board of Governors and the Council are
authorized to prescribe such rules and issue such orders as may be necessary to
administer and carry out the authorities and duties granted to the Board of
Governors or the Council, respectively, and prevent evasions thereof.</text>
</section><section id="IDdb2b14c20d7440e1b0161e57c498ba48"><enum>811.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by its terms, this title does not divest any appropriate financial
regulator, any Supervisory Agency, or any other Federal or State agency, of any
authority derived from any other applicable law, except that any standards
prescribed by the Board of Governors under section 805 shall supersede any less
stringent requirements established under other authority to the extent of any
conflict.</text>
</section><section id="ID8c6331d75af542a8a1e265371240fc2a"><enum>812.</enum><header>Effective
date</header><text display-inline="no-display-inline">This title is effective
as of the date of enactment of this Act.</text>
</section><enum>IX</enum><header>Investor
protections and improvements to the regulation of securities</header>
<subtitle id="idBB18F5438AF04AF19AC501F54AB44D48"><enum>A</enum><header>Increasing
investor protection</header>
<section id="id8C82536B75054D4184CC4F48BA6F4199"><enum>911.</enum><header>Investor
Advisory Committee established</header><text display-inline="no-display-inline">Title I of the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id370164B991D6451389731DC2A7A89F28" style="OLC">
<section id="ID04a12177dfac4ec388069b7b20210f52"><enum>39.</enum><header>Investor
Advisory Committee</header>
<subsection id="ID5b47e0be15ba43919d309cad0e32b582"><enum>(a)</enum><header>Establishment
and purpose</header>
<paragraph id="idE213725254E843CFB5796C9E939148B6"><enum>(1)</enum><header>Establishment</header><text>There
is established within the Commission the Investor Advisory Committee (referred
to in this section as the <quote>Committee</quote>).</text>
</paragraph><paragraph id="id3E1A754AF40D4DAE8B30F766764AD2FC"><enum>(2)</enum><header>Purpose</header><text>The
Committee shall—</text>
<subparagraph id="id0C5D17B502114CA497586F4E0BFDE2DF"><enum>(A)</enum><text>advise and
consult with the Commission on—</text>
<clause id="ID09ea19d22d4f49588523e9720ca323f9"><enum>(i)</enum><text>regulatory
priorities of the Commission;</text>
</clause><clause id="id5CDE5C39652E4603A48418017C9C7DE8"><enum>(ii)</enum><text>issues relating
to the regulation of securities products, trading strategies, and fee
structures, and the effectiveness of disclosure;</text>
</clause><clause id="ID7adc656cc274480c8ecb987e4cca14f7"><enum>(iii)</enum><text>initiatives to
protect investor interest; and</text>
</clause><clause id="IDa971a81268774a14b688f8885fe31040"><enum>(iv)</enum><text>initiatives to
promote investor confidence and the integrity of the securities marketplace;
and</text>
</clause></subparagraph><subparagraph id="idE5253ECEFA6B4CD38856CF76734D7DBB"><enum>(B)</enum><text>submit to the
Commission such findings and recommendations as the Committee determines are
appropriate, including recommendations for proposed legislative changes.</text>
</subparagraph></paragraph></subsection><subsection id="ID20bd3e24afcb444cb37e9abfc3666a82"><enum>(b)</enum><header>Membership</header>
<paragraph id="id65C9CBDAA0094D6783171E4993DBF879"><enum>(1)</enum><header>In
general</header><text>The members of the Committee shall be—</text>
<subparagraph id="id58EFCBB40EFA4AA8ACD5568F2A1CC85D"><enum>(A)</enum><text>the Investor
Advocate;</text>
</subparagraph><subparagraph id="id9B21BC5443EB4A4DB14CE5C0625B9680"><enum>(B)</enum><text>a representative
of State securities commissions;</text>
</subparagraph><subparagraph id="id0FCCCF9CAEE3419AABA2C8A89A58CDEA"><enum>(C)</enum><text>a representative
of the interests of senior citizens; and</text>
</subparagraph><subparagraph id="idC83448A39ACE461D984BF1177883810B"><enum>(D)</enum><text>not fewer than
10, and not more than 20, members appointed by the Commission, from among
individuals who—</text>
<clause id="ID1f8c5336e2014c9aa3c5c8310d353c85"><enum>(i)</enum><text>represent the
interests of individual equity and debt investors, including investors in
mutual funds;</text>
</clause><clause id="ID32c8c6d5d74b4e959651546693ea6ce2"><enum>(ii)</enum><text>represent the
interests of institutional investors, including the interests of pension funds
and registered investment companies;</text>
</clause><clause id="ID912b46defe4f43a2a0274a0646d44763"><enum>(iii)</enum><text>are
knowledgeable about investment issues and decisions; and</text>
</clause><clause id="id5E998556FFDB49C68349BC4E8258159C"><enum>(iv)</enum><text>have
reputations of integrity.</text>
</clause></subparagraph></paragraph><paragraph id="id79A3A196E9C143DDAF1449C6CA0B077C"><enum>(2)</enum><header>Term</header><text>Each
member of the Committee appointed under paragraph (1)(B) shall serve for a term
of 4 years.</text>
</paragraph><paragraph id="ID966140bb42de45879d70e5a923eaedc4"><enum>(3)</enum><header>Members not
commission employees</header><text>Members appointed under paragraph (1)(B)
shall not be deemed to be employees or agents of the Commission solely because
of membership on the Committee.</text>
</paragraph></subsection><subsection id="id8B41151D626141AC90AA9FEFA305CF0A"><enum>(c)</enum><header>Chairman; Vice
Chairman; Secretary; Assistant Secretary</header>
<paragraph id="idF2E34FD26607475BB456997B19084DC6"><enum>(1)</enum><header>In
general</header><text>The members of the Committee shall elect, from among the
members of the Committee—</text>
<subparagraph id="idEF48AC6248804323BA6EDF80BF0BEEE7"><enum>(A)</enum><text>a chairman, who
may not be employed by an issuer;</text>
</subparagraph><subparagraph id="idB8658F148D8C405585867864F26BF328"><enum>(B)</enum><text>a vice chairman,
who may not be employed by an issuer;</text>
</subparagraph><subparagraph id="id5025A9A461DB4A66AF10A3595D4BA93E"><enum>(C)</enum><text>a secretary;
and</text>
</subparagraph><subparagraph id="id5A835783BB494FA6A57417554398121B"><enum>(D)</enum><text>an assistant
secretary.</text>
</subparagraph></paragraph><paragraph id="idA346A6D52F1B458EBDE248EF6F875A03"><enum>(2)</enum><header>Term</header><text>Each
member elected under paragraph (1) shall serve for a term of 3 years in the
capacity for which the member was elected under paragraph (1).</text>
</paragraph></subsection><subsection id="ID2f7487910fd4485c9c4d55e1c0e2b7ee"><enum>(d)</enum><header>Meetings</header>
<paragraph id="id04E861ADE51E4AD9B12DA5DACB6F33B3"><enum>(1)</enum><header>Frequency of
meetings</header><text>The Committee shall meet—</text>
<subparagraph id="id694F4CE52E41448F84293685548AE501"><enum>(A)</enum><text>not less
frequently than twice annually, at the call of the chairman of the Committee;
and</text>
</subparagraph><subparagraph id="idA0BD61B9A8AF473993D7C0320129D47E"><enum>(B)</enum><text>from time to
time, at the call of the Commission.</text>
</subparagraph></paragraph><paragraph id="id2CBB1A5A60BA4F419982DB0558D1C920"><enum>(2)</enum><header>Notice</header><text>The
chairman of the Committee shall give the members of the Committee written
notice of each meeting, not later than 2 weeks before the date of the
meeting.</text>
</paragraph></subsection><subsection id="IDf3b4771d7c7a4a10a2460da6d27b099b"><enum>(e)</enum><header>Compensation
and travel expenses</header><text>Each member of the Committee who is not a
full-time employee of the United States shall—</text>
<paragraph commented="no" id="ID36190cf0a68845a5b737be7f86dfeaa4"><enum>(1)</enum><text>be compensated at
a rate not to exceed the daily equivalent of the annual rate of basic pay in
effect for a position at level V of the Executive Schedule under section 5316
of title 5, United States Code, for each day during which the member is engaged
in the actual performance of the duties of the Committee; and</text>
</paragraph><paragraph commented="no" id="ID5326a2e9770447538e1ef92d966e5ef4"><enum>(2)</enum><text>while away from
the home or regular place of business of the member in the performance of
services for the Committee, be allowed travel expenses, including per diem in
lieu of subsistence, in the same manner as persons employed intermittently in
the Government service are allowed expenses under section 5703(b) of title 5,
United States Code.</text>
</paragraph></subsection><subsection commented="no" id="idA3F8DE04AE8E43B8B5A12614FA7E4F4B"><enum>(f)</enum><header>Staff</header><text>The
Commission shall make available to the Committee such staff as the chairman of
the Committee determines are necessary to carry out this section.</text>
</subsection><subsection id="id3E6E8DAE9395444EB4EFDCB6F2E3CAD6"><enum>(g)</enum><header>Review by
Commission</header><text>The Commission shall—</text>
<paragraph id="id1E52D633FF6B4A369F3EF87CBBE5E761"><enum>(1)</enum><text>review the
findings and recommendations of the Committee; and</text>
</paragraph><paragraph id="idCD6EB7AB40F44F72A0652588EE36A7E0"><enum>(2)</enum><text>each time the
Committee submits a finding or recommendation to the Commission, issue a public
statement—</text>
<subparagraph id="id58B3ACD1F7284DB0B58C0060D2530222"><enum>(A)</enum><text>assessing the
finding or recommendation of the Committee; and</text>
</subparagraph><subparagraph id="id8F20617A0C5C40AE927B31DD254C8CEF"><enum>(B)</enum><text>disclosing the
action, if any, the Commission intends to take with respect to the finding or
recommendation.</text>
</subparagraph></paragraph></subsection><subsection id="IDfd1c0ed1fba14bd6b0f7068266075a90"><enum>(h)</enum><header>Committee
findings</header><text>Nothing in this section shall require the Commission to
agree to or act upon any finding or recommendation of the Committee.</text>
</subsection><subsection id="id692C97A8D93D4BCC90857B548B954AF8"><enum>(i)</enum><header>Federal
Advisory Committee Act</header><text>The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply with respect to the Committee and its
activities.</text>
</subsection><subsection id="IDb8557f8490de45fa95d92f8adcc7c9d4"><enum>(j)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to the
Commission such sums as are necessary to carry out this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDca7d02cae3fc4ee8b31547d761dc212a"><enum>912.</enum><header>Clarification
of authority of the Commission to engage in investor testing</header><text display-inline="no-display-inline">Section 19 of the Securities Act of 1933 (15
U.S.C. 77s) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE0DD170C9A8B4094B7816A6169742778" style="OLC">
<subsection id="IDf89ef54f0be049eaaeef94163c8d164c"><enum>(e)</enum><header>Evaluation of
rules or programs</header><text>For the purpose of evaluating any rule or
program of the Commission issued or carried out under any provision of the
securities laws, as defined in section 3 of the Securities Exchange Act of 1934
(15 U.S.C. 78c), and the purposes of considering, proposing, adopting, or
engaging in any such rule or program or developing new rules or programs, the
Commission may—</text>
<paragraph id="id62A50B5F1D0A4EBCABAE2B4B0664BD92"><enum>(1)</enum><text>gather
information from and communicate with investors or other members of the
public;</text>
</paragraph><paragraph id="idBED8EFD0EA6046058A35E05628B43F13"><enum>(2)</enum><text>engage in such
temporary investor testing programs as the Commission determines are in the
public interest or would protect investors; and</text>
</paragraph><paragraph id="idD2EFF20A9A0749908AA36A1EB46F0651"><enum>(3)</enum><text>consult with
academics and consultants, as necessary to carry out this subsection.</text>
</paragraph></subsection><subsection id="id8FA30D124F7E4792A067287FFE2D3145"><enum>(f)</enum><header>Rule of
construction</header><text>For purposes of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.), any action taken under subsection (e) shall not be
construed to be a collection of
information.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB154263A75BC41A699B81F1D834DC882"><enum>913.</enum><header>Study and
rulemaking regarding obligations of brokers, dealers, and investment
advisers</header>
<subsection id="id1DA111DC297049A4AFB33A821C5C11D2"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="idAB5127CBFC22414B9F3781769159D453"><enum>(1)</enum><text>the
term <term>FINRA</term> means the Financial Industry Regulatory Authority;
and</text>
</paragraph><paragraph id="id2CBA6553307447319A901A8621BFB20F"><enum>(2)</enum><text>the
term <term>retail customer</term> means an individual customer of a broker,
dealer, investment adviser, person associated with a broker or dealer, or a
person associated with an investment adviser.</text>
</paragraph></subsection><subsection id="idFC4B4E59720E40B18EA80D5B0C914220"><enum>(b)</enum><header>In
general</header><text>The Commission shall conduct a study to evaluate—</text>
<paragraph id="id2BE2256B12774468807B0B0E8B1CB97A"><enum>(1)</enum><text>the
effectiveness of existing legal or regulatory standards of care for brokers,
dealers, investment advisers, persons associated with brokers or dealers, and
persons associated with investment advisers for providing personalized
investment advice and recommendations about securities to retail customers
imposed by the Commission and FINRA, and other Federal and State legal or
regulatory standards; and</text>
</paragraph><paragraph id="idBACCAF36E4754DD3A3AAEE5521A1D048"><enum>(2)</enum><text>whether there are
legal or regulatory gaps or overlap in legal or regulatory standards in the
protection of retail customers relating to the standards of care for brokers,
dealers, investment advisers, persons associated with brokers or dealers, and
persons associated with investment advisers for providing personalized
investment advice about securities to retail customers that should be addressed
by rule or statute.</text>
</paragraph></subsection><subsection id="id75C83AF492FF43F0B1CE9DC8D218B2F5"><enum>(c)</enum><header>Considerations</header><text>In
conducting the study required under subsection (b), the Commission shall
consider—</text>
<paragraph id="idD2F2F204C9E64A49A59C75C92524B74F"><enum>(1)</enum><text>the
regulatory, examination, and enforcement resources devoted to, and activities
of, the Commission and FINRA to enforce the standards of care for brokers,
dealers, investment advisers, persons associated with brokers or dealers, and
persons associated with investment advisers when providing personalized
investment advice and recommendations about securities to retail customers,
including—</text>
<subparagraph id="id81BAE2D3717443A7B454155EA4E45843"><enum>(A)</enum><text>the frequency of
examinations of brokers, dealers, and investment advisers; and</text>
</subparagraph><subparagraph id="idE630BE699DC64EC4A9DCF49B198831E0"><enum>(B)</enum><text>the length of
time of the examinations;</text>
</subparagraph></paragraph><paragraph id="id3F289858D9134133BE1A45772883A924"><enum>(2)</enum><text>the
substantive differences, compared and contrasted in detail, in the regulation
of brokers, dealers, and investment advisers, when providing personalized
investment advice and recommendations about securities to retail customers,
including the differences in the amount of resources devoted to the regulation
and examination of brokers, dealers, and investment advisers, by the Commission
and FINRA;</text>
</paragraph><paragraph id="id31D36E064B6441A6BA30132EAB80901C"><enum>(3)</enum><text>the
specific instances in which—</text>
<subparagraph id="id418716DBD2A941D2A2A2AC436D5D55C4"><enum>(A)</enum><text>the regulation
and oversight of investment advisers provide greater protection to retail
customers than the regulation and oversight of brokers and dealers; and</text>
</subparagraph><subparagraph id="id0073A9B9AF034B099044A124EA049233"><enum>(B)</enum><text>the regulation
and oversight of brokers and dealers provide greater protection to retail
customers than the regulation and oversight of investment advisers;</text>
</subparagraph></paragraph><paragraph id="id701AF582ABF0412AB284DC33057F3E16"><enum>(4)</enum><text>the
existing legal or regulatory standards of State securities regulators and other
regulators intended to protect retail customers;</text>
</paragraph><paragraph id="id613DC36E3F0A46C6B159F22A1BB1472B"><enum>(5)</enum><text>the
potential impact on retail customers, including the potential impact on access
of retail customers to the range of products and services offered by brokers
and dealers, of imposing upon brokers, dealers, and persons associated with
brokers or dealers—</text>
<subparagraph id="id80CFFF7AC4A84DE58F9EF18BAF340C41"><enum>(A)</enum><text>the standard of
care applied under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et
seq.) for providing personalized investment advice about securities to retail
customers of investment advisers; and</text>
</subparagraph><subparagraph id="id23A6869C918D4B55914C47FE898E606D"><enum>(B)</enum><text>other
requirements of the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et
seq.);</text>
</subparagraph></paragraph><paragraph id="id90F2AD4A57834287922FECBABEAB3959"><enum>(6)</enum><text>the
potential impact of—</text>
<subparagraph id="id9EAE60DE05F44779AC20A03D62838611"><enum>(A)</enum><text>imposing on
investment advisers the standard of care applied by the Commission and FINRA
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) for providing
recommendations about securities to retail customers of brokers and dealers and
other Commission and FINRA requirements applicable to brokers and dealers;
and</text>
</subparagraph><subparagraph id="id1CA8C84F5858421392539412B34D0F5C"><enum>(B)</enum><text>authorizing the
Commission to designate 1 or more self-regulatory organizations to augment the
efforts of the Commission to oversee investment advisers;</text>
</subparagraph></paragraph><paragraph id="idB4C65B94799241E4BE002F6E966AE43E"><enum>(7)</enum><text>the
potential impact of eliminating the broker and dealer exclusion from the
definition of <quote>investment adviser</quote> under section 202(a)(11)(C) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)(C)), in terms
of—</text>
<subparagraph id="idF06EDA340094484BB200BDA737B0AB67"><enum>(A)</enum><text>the potential
benefits or harm to retail customers that could result from such a change,
including any potential impact on access to personalized investment advice and
recommendations about securities to retail customers or the availability of
such advice and recommendations;</text>
</subparagraph><subparagraph id="id94E883C3128C4E6FB12E96C5ABD6ECF2"><enum>(B)</enum><text>the number of
additional entities and individuals that would be required to register under,
or become subject to, the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et
seq.), and the additional requirements to which brokers, dealers, and persons
associated with brokers and dealers would become subject, including—</text>
<clause id="idD75002D9A4DE438AAB49D755C78C47FE"><enum>(i)</enum><text>any
potential additional associated person licensing, registration, and examination
requirements; and</text>
</clause><clause id="id8CA41827883744F184CA68B6F36086FB"><enum>(ii)</enum><text>the
additional costs, if any, to the additional entities and individuals;
and</text>
</clause></subparagraph><subparagraph id="id734EE00F334D4B2C8E616206967CF99C"><enum>(C)</enum><text>the impact on
Commission resources to—</text>
<clause id="idE6A0EE1746AE454A9F472316BD106496"><enum>(i)</enum><text>conduct
examinations of registered investment advisers and the representatives of
registered investment advisers, including the impact on the examination cycle;
and</text>
</clause><clause id="idE71F7BFEA0EA4D82B344C154AD0DFACC"><enum>(ii)</enum><text>enforce the
standard of care and other applicable requirements imposed under the Investment
Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.);</text>
</clause></subparagraph></paragraph><paragraph id="idC3AD44D00DC2449D88A89B26CC1081AF"><enum>(8)</enum><text>the
ability of investors to understand the differences in terms of regulatory
oversight and examinations between brokers, dealers, and investment
advisers;</text>
</paragraph><paragraph id="idEF2607B3324F40A7AEFCDD60768058DA"><enum>(9)</enum><text>the
varying level of services provided by brokers, dealers, investment advisers,
persons associated with brokers or dealers, and persons associated with
investment advisers to retail customers and the varying scope and terms of
retail customer relationships of brokers, dealers, investment advisers, persons
associated with brokers or dealers, and persons associated with investment
advisers with such retail customers;</text>
</paragraph><paragraph id="idFEABE6DEB97747BE90A6179BCBDC3455"><enum>(10)</enum><text>any
potential benefits or harm to retail customers that could result from any
potential changes in the regulatory requirements or legal standards affecting
brokers, dealers, investment advisers, persons associated with brokers or
dealers, and persons associated with investment advisers relating to their
obligations to retail customers, including any potential impact on—</text>
<subparagraph id="idF15EAD1FD9B046A6A55CB76286084DBE"><enum>(A)</enum><text>protection from
fraud;</text>
</subparagraph><subparagraph id="id9FE51F1A9E7640709CC1312E4E1F7609"><enum>(B)</enum><text>access to
personalized investment advice, and recommendations about securities to retail
customers; or</text>
</subparagraph><subparagraph id="idF949B79CF83A405A8247DBDA82986331"><enum>(C)</enum><text>the availability
of such advice and recommendations;</text>
</subparagraph></paragraph><paragraph id="id5CAF48E3301E41A3977C77C60B2C27C6"><enum>(11)</enum><text>the
additional costs and expenses to retail customers and to brokers, dealers, and
investment advisers resulting from potential changes in the regulatory
requirements or legal standards affecting brokers, dealers, investment
advisers, persons associated with brokers or dealers, and persons associated
with investment advisers relating to their obligations to retail customers;
and</text>
</paragraph><paragraph id="idE5006457CCA44C1697498FC4F4763749"><enum>(12)</enum><text>any
other consideration that the Commission deems necessary and appropriate to
effectively execute the study required under subsection (b).</text>
</paragraph></subsection><subsection id="idF0BBC36190844AB7BCAF41E7F8602D89"><enum>(d)</enum><header>Report</header>
<paragraph id="idC0E8AE8A79404D4D86EDC4368DE6F51A"><enum>(1)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Commission shall submit a report on the study required under
subsection (b) to—</text>
<subparagraph id="id63AAD0EFB96F4D5A98BCB65B9B5694F2"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate; and</text>
</subparagraph><subparagraph id="idD4664D7C637F460AB6281F2DEBE3D571"><enum>(B)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="idC9CBF092CBBF418FB2696588D4B94443"><enum>(2)</enum><header>Content
requirements</header><text>The report required under paragraph (1) shall
describe the findings, conclusions, and recommendations of the Commission from
the study required under subsection (b), including—</text>
<subparagraph id="idF0CCF040530B4A21A2B3C7862C57877F"><enum>(A)</enum><text>a
description of the considerations, analysis, and public and industry input that
the Commission considered, as required under subsection (e), to make such
findings, conclusions, and policy recommendations; and</text>
</subparagraph><subparagraph id="idF5666AB071EE48DD830126D77FDA440B"><enum>(B)</enum><text>an analysis
of—</text>
<clause id="idC2AEDE6199994C428C9D6D2D248D01D0"><enum>(i)</enum><text>whether
any identified legal or regulatory gaps or overlap in legal or regulatory
standards in the protection of retail customers relating to the standards of
care for brokers, dealers, investment advisers, persons associated with brokers
or dealers, and persons associated with investment advisers for providing
personalized investment advice about securities to retail customers can be
addressed by rule; and</text>
</clause><clause id="idD59C6F019FEA40C78ACFF05CCA4ACD94"><enum>(ii)</enum><text>whether, and the
extent to which, the Commission would require additional statutory authority to
address such gaps or overlap.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id8CC81E8436EE417CA6358E668FAD595F"><enum>(e)</enum><header>Public
Comment</header><text>The Commission shall seek and consider public input,
comments, and data in order to prepare the report required under subsection
(d).</text>
</subsection><subsection id="id0299ADA4C0A04C21895C5A2E1392A30C"><enum>(f)</enum><header>Rulemaking</header>
<paragraph id="id5E7C202AD4074ADC81C29C73A7CCC534"><enum>(1)</enum><header>In
general</header><text>If the study required under subsection (b) identifies any
gaps or overlap in the legal or regulatory standards in the protection of
retail customers relating to the standards of care for brokers, dealers,
investment advisers, persons associated with brokers or dealers, and persons
associated with investment advisers for providing personalized investment
advice about securities to such retail customers, the Commission, not later
than 2 years after the date of enactment of this Act, shall—</text>
<subparagraph id="id4462E669972247FD9E6F217F564FF6BE"><enum>(A)</enum><text>commence a
rulemaking, as necessary or appropriate in the public interest and for the
protection of retail customers, to address such regulatory gaps and overlap
that can be addressed by rule, using its authority under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) and the Investment Advisers Act of
1940 (15 U.S.C. 80b–1 et seq.); and</text>
</subparagraph><subparagraph id="id6D102977F9804FE1BB15BCA72428DCE4"><enum>(B)</enum><text>consider and take
into account the findings, conclusions, and recommendations of the study
required under this section.</text>
</subparagraph></paragraph><paragraph id="id5428EA536D5449048DADAE423061DF12"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to limit
the rulemaking authority of the Commission under any other provision of Federal
law.</text>
</paragraph></subsection></section><section id="idEA3EA2FF4F83470CB7BA67C7D8100D07"><enum>914.</enum><header>Office of the
Investor Advocate</header><text display-inline="no-display-inline">Section 4 of
the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idED130AE2DE5E46818DDBEB2EB5AF709F" style="OLC">
<subsection id="id608F971EDF104DD299C6716237E38B86"><enum>(g)</enum><header>Office of the
Investor Advocate</header>
<paragraph id="id86180FB3FA4D4A9CB3C2B906A4118D94"><enum>(1)</enum><header>Office
Established</header><text>There is established within the Commission the Office
of the Investor Advocate (in this subsection referred to as the
<quote>Office</quote>).</text>
</paragraph><paragraph id="id15C872582FE14A5F9A36B4F4C2D7624E"><enum>(2)</enum><header>Investor
Advocate</header>
<subparagraph id="idF7214ADAB9204C3EA31D68187B727CB8"><enum>(A)</enum><header>In
General</header><text>The head of the Office shall be the Investor Advocate,
who shall—</text>
<clause id="id92AF9BE8EB0248D99776489910B91499"><enum>(i)</enum><text>report directly
to the Chairman; and</text>
</clause><clause id="id592BBBDFFC3E4B93AD62F2C4B3F6F8F7"><enum>(ii)</enum><text>be
appointed by the Chairman, in consultation with the Commission, from among
individuals having experience in advocating for the interests of investors in
securities and investor protection issues, from the perspective of
investors.</text>
</clause></subparagraph><subparagraph id="id77529F0D44E44CEF99D031FFD5AD3804"><enum>(B)</enum><header>Compensation</header><text>The
annual rate of pay for the Investor Advocate shall be equal to the highest rate
of annual pay for a Senior Executive Service position within the
Commission.</text>
</subparagraph><subparagraph id="id7631F6EF823D43C28580486F9218DE89"><enum>(C)</enum><header>Limitation on
service</header><text>An individual who serves as the Investor Advocate may not
be employed by the Commission—</text>
<clause id="id03256D86A35A47B4980D7DAC0018FFC5"><enum>(i)</enum><text>during the 2-year
period ending on the date of appointment as Investor Advocate; or</text>
</clause><clause id="idCCB5A92D1C16492391AD77E3853EC299"><enum>(ii)</enum><text>during the
5-year period beginning on the date on which the person ceases to serve as the
Investor Advocate.</text>
</clause></subparagraph></paragraph><paragraph id="idC91EE2D82FAC4E31B123A91CCE0D9646"><enum>(3)</enum><header>Staff of
Office</header><text>The Investor Advocate may retain or employ independent
counsel, research staff, and service staff, as the Investor Advocate deems
necessary to carry out the functions, powers, and duties of the Office.</text>
</paragraph><paragraph id="IDea8c689398fa4bea9be0b45932adc7d4"><enum>(4)</enum><header>Functions of
the Investor Advocate</header><text>The Investor Advocate shall—</text>
<subparagraph id="IDcf5cd9508eff4c15a4f717438b13d145"><enum>(A)</enum><text>assist retail
investors in resolving significant problems such investors may have with the
Commission or with self-regulatory organizations;</text>
</subparagraph><subparagraph id="IDde0f2a405b61470f86406a717a067e8f"><enum>(B)</enum><text>identify areas in
which investors would benefit from changes in the regulations of the Commission
or the rules of self-regulatory organizations;</text>
</subparagraph><subparagraph id="ID0efbee1015ab4a538cb38b39d1752fe5"><enum>(C)</enum><text>identify problems
that investors have with financial service providers and investment
products;</text>
</subparagraph><subparagraph id="idCC77641662C44C1AA5F21C5812A5DC3C"><enum>(D)</enum><text>analyze the
potential impact on investors of—</text>
<clause id="idD8C023E170D94B22A5DC1018E1BFD45F"><enum>(i)</enum><text>proposed
regulations of the Commission; and</text>
</clause><clause id="id12E86624656246138419220FC569FB36"><enum>(ii)</enum><text>proposed rules
of self-regulatory organizations registered under this title; and</text>
</clause></subparagraph><subparagraph id="id291FF77435CD4B15A84C8747E3A00FD3"><enum>(E)</enum><text>to the extent
practicable, propose to the Commission changes in the regulations or orders of
the Commission and to Congress any legislative, administrative, or personnel
changes that may be appropriate to mitigate problems identified under this
paragraph and to promote the interests of investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="idF354825AD7D942E2BECC39DF11F13D97"><enum>(5)</enum><header>Access to
documents</header><text>The Commission shall ensure that the Investor Advocate
has full access to the documents of the Commission and any self-regulatory
organization, as necessary to carry out the functions of the Office.</text>
</paragraph><paragraph id="IDba2438c02e1046c692891c386fb2a7b2"><enum>(6)</enum><header>Annual
Reports</header>
<subparagraph id="ID929d642ae9ab4497898cbcae8592704f"><enum>(A)</enum><header>Report on
objectives</header>
<clause id="idAD65C6AC4915409F82318C926881C0A4"><enum>(i)</enum><header>In
general</header><text>Not later than June 30 of each year after 2010, the
Investor Advocate shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives a report on the objectives of the Investor Advocate for the
following fiscal year.</text>
</clause><clause commented="no" id="idEEA93C602D8E46A49D184D4300946364"><enum>(ii)</enum><header>Contents</header><text>Each
report required under clause (i) shall contain full and substantive analysis
and explanation.</text>
</clause></subparagraph><subparagraph id="IDab43ec15192f4b2986cf41b673235b98"><enum>(B)</enum><header>Report on
activities</header>
<clause id="id5377D299989C4BF09735DDEAF8BCD4B1"><enum>(i)</enum><header>In
General</header><text>Not later than December 31 of each year after 2010, the
Investor Advocate shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives a report on the activities of the Investor Advocate during the
immediately preceding fiscal year.</text>
</clause><clause id="id770CC076287B404386BE9B79ED5F019B"><enum>(ii)</enum><header>Contents</header><text>Each
report required under clause (i) shall include—</text>
<subclause id="id9899832E0B4840CBB564F8827F1EB0EA"><enum>(I)</enum><text>appropriate
statistical information and full and substantive analysis;</text>
</subclause><subclause id="ID15f7fb4b51e54caa83722ce2adbac6f4"><enum>(II)</enum><text>information on
steps that the Investor Advocate has taken during the reporting period to
improve investor services and the responsiveness of the Commission and
self-regulatory organizations to investor concerns;</text>
</subclause><subclause id="ID5a65b3c9e243482c8b6dedc88c78abd2"><enum>(III)</enum><text>a summary of
the most serious problems encountered by investors during the reporting
period;</text>
</subclause><subclause id="ID1ffe54fe22e940c0950f0cae6379f65f"><enum>(IV)</enum><text>an inventory of
the items described in subclauses (III) that includes—</text>
<item id="idDB9A705EB9B540D79074ED6A6F94C3D9"><enum>(aa)</enum><text>identification
of any action taken by the Commission or the self-regulatory organization and
the result of such action;</text>
</item><item id="IDd06e02fc33bd4164a4a40d5baadd659a"><enum>(bb)</enum><text>the
length of time that each item has remained on such inventory; and</text>
</item><item id="ID7e2acf52b4ee4b5ca971f064e9a370f8"><enum>(cc)</enum><text>for
items on which no action has been taken, the reasons for inaction, and an
identification of any official who is responsible for such action;</text>
</item></subclause><subclause id="ID8fce051e9acb4ec8ab430f650bacb8d6"><enum>(V)</enum><text>recommendations
for such administrative and legislative actions as may be appropriate to
resolve problems encountered by investors; and</text>
</subclause><subclause id="ID36a946cfa82e4948a080eec560f8fa3b"><enum>(VI)</enum><text>any other
information, as determined appropriate by the Investor Advocate.</text>
</subclause></clause><clause id="IDa70ef3c187e24250a085253c4c684f3d"><enum>(iii)</enum><header>Independence</header><text>Each
report required under this paragraph shall be provided directly to the
Committees listed in clause (i) without any prior review or comment from the
Commission, any commissioner, any other officer or employee of the Commission,
or the Office of Management and Budget.</text>
</clause><clause id="idFE2A7C710C434A29803E65E48F60F4F7"><enum>(iv)</enum><header>Confidentiality</header><text>No
report required under clause (i) may contain confidential information.</text>
</clause></subparagraph></paragraph><paragraph id="ID480062c680e44715a6162f1b134fd915"><enum>(7)</enum><header>Regulations</header><text>The
Commission shall, by regulation, establish procedures requiring a formal
response to all recommendations submitted to the Commission by the Investor
Advocate, not later than 3 months after the date of such
submission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id8EC98E93B6404A0EA9F893A36CFE6216"><enum>915.</enum><header>Streamlining
of filing procedures for self-regulatory organizations</header>
<subsection id="IDcb165aa755cd4353932acc7edc4892ce"><enum>(a)</enum><header>Filing
procedures</header><text>Section 19(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)) is amended by striking paragraph (2) (including the
undesignated matter immediately following subparagraph (B)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id6E0D7304E0804340B51F4021068A5F80" style="OLC">
<paragraph id="IDc7f1a1369dac4ed3a4aedc149234ff44"><enum>(2)</enum><header>Approval
process</header>
<subparagraph id="ID2b6d8b059f22443e8d504e3b2a93b6d5"><enum>(A)</enum><header>Approval
process established</header>
<clause id="idEDEB264B03A748FD9958125E99D94B82"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), not later than 45 days
after the date of publication of a proposed rule change under paragraph (1),
the Commission shall—</text>
<subclause id="ID541a2519cca841d684f2c7905852fdf3"><enum>(I)</enum><text>by
order, approve the proposed rule change; or</text>
</subclause><subclause id="ID3ef908a7a4264109baa960924049c574"><enum>(II)</enum><text>institute
proceedings under subparagraph (B) to determine whether the proposed rule
change should be disapproved.</text>
</subclause></clause><clause id="id58AD8DCF9699492AA417288004405BF3"><enum>(ii)</enum><header>Extension of
time period</header><text>The Commission may extend the period established
under clause (i) by not more than an additional 45 days, if—</text>
<subclause id="id98E737FEF68248A988833AE54BBCA6AC"><enum>(I)</enum><text>the Commission
determines that a longer period is appropriate and publishes the reasons for
such determination; or</text>
</subclause><subclause id="id99972E2E5D3B48948B36F595F5F501EC"><enum>(II)</enum><text>the
self-regulatory organization that filed the proposed rule change consents to
the longer period.</text>
</subclause></clause></subparagraph><subparagraph id="IDb97e14302ff645d7a7961bf825b4cb9f"><enum>(B)</enum><header>Proceedings</header>
<clause id="id308142418F48493697B5F5A34BCE75DF"><enum>(i)</enum><header>Notice and
hearing</header><text>If the Commission does not approve a proposed rule change
under subparagraph (A), the Commission shall provide to the self-regulatory
organization that filed the proposed rule change—</text>
<subclause id="id029AF2C1EC254054A3D1A87C4C968035"><enum>(I)</enum><text>notice of the
grounds for disapproval under consideration; and</text>
</subclause><subclause id="id7BCCB2C87B0243458B49171BD21F612D"><enum>(II)</enum><text>opportunity for
hearing, to be concluded not later than 180 days after the date of publication
of notice of the filing of the proposed rule change.</text>
</subclause></clause><clause id="id7F5AF0F2B6CA4762B40B70B75D210787"><enum>(ii)</enum><header>Order of
approval or disapproval</header>
<subclause id="idA421ACBB368B4390A1000FD065F40C43"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclause (II), not later than 180
days after the date of publication under paragraph (1), the Commission shall
issue an order approving or disapproving the proposed rule change.</text>
</subclause><subclause id="id0484914C55814C88948EF1F2E4BE965F"><enum>(II)</enum><header>Extension of
time period</header><text>The Commission may extend the period for issuance
under clause (I) by not more than 60 days, if—</text>
<item id="id1F4D4369AD34410AA28B98B72E48097E"><enum>(aa)</enum><text>the
Commission determines that a longer period is appropriate and publishes the
reasons for such determination; or</text>
</item><item id="id54E697342D3943EA9378B06E3BA2F5E2"><enum>(bb)</enum><text>the
self-regulatory organization that filed the proposed rule change consents to
the longer period.</text>
</item></subclause></clause></subparagraph><subparagraph id="ID0994deef745146c7880a150e40d775ce"><enum>(C)</enum><header>Standards for
approval and disapproval</header>
<clause id="id0574223E346D4DD28A11294DC646CB29"><enum>(i)</enum><header>Approval</header><text>The
Commission shall approve a proposed rule change of a self-regulatory
organization if it finds that such proposed rule change is consistent with the
requirements of this title and the rules and regulations issued under this
title that are applicable to such organization.</text>
</clause><clause id="id1721B33E8C42490F9872475FB09ED437"><enum>(ii)</enum><header>Disapproval</header><text>The
Commission shall disapprove a proposed rule change of a self-regulatory
organization if it does not make a finding described in clause (i).</text>
</clause><clause id="idB2E023937ED8436B9013DED2B72A0D9E"><enum>(iii)</enum><header>Time for
approval</header><text>The Commission may not approve a proposed rule change
earlier than 30 days after the date of publication under paragraph (1), unless
the Commission finds good cause for so doing and publishes the reason for the
finding.</text>
</clause></subparagraph><subparagraph id="IDe0380277c3454ea49058a05f5b9c0cad"><enum>(D)</enum><header>Result of
failure to institute or conclude proceedings</header><text>A proposed rule
change shall be deemed to have been approved by the Commission, if—</text>
<clause id="id800BC17960B94D6FB87BA1CB5750A7F6"><enum>(i)</enum><text>the
Commission does not approve the proposed rule change or begin proceedings under
subparagraph (B) within the period described in subparagraph (A); or</text>
</clause><clause id="id689C1DFFE2BC4452A062D39963A1946B"><enum>(ii)</enum><text>the
Commission does not issue an order approving or disapproving the proposed rule
change under subparagraph (B) within the period described in subparagraph
(B)(ii).</text>
</clause></subparagraph><subparagraph id="IDe563caf74915414a8139eecab9301c0b"><enum>(E)</enum><header>Publication
date based on Federal Register publishing</header><text>For purposes of this
paragraph, if, after filing a proposed rule change with the Commission pursuant
to paragraph (1), a self-regulatory organization publishes a notice of the
filing of such proposed rule change, together with the substantive terms of
such proposed rule change, on a publicly accessible website, the Commission
shall thereafter send the notice to the Federal Register for publication
thereof under paragraph (1) within 15 days of the date on which such website
publication is made. If the Commission fails to send the notice for publication
thereof within such 15 day period, then the date of publication shall be deemed
to be the date on which such website publication was
made.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6624fc2dbacd4015ace7a2bc98939b76"><enum>(b)</enum><header>Clarification
of filing date</header>
<paragraph id="id4EB4A86D02F34481ACBDC649B47A185B"><enum>(1)</enum><header>Rule of
construction</header><text>Section 19(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0837F7B214AB420EB1715173CD28D545" style="OLC">
<paragraph id="ID1e196845ccfc4e3286a29286d53361e2"><enum>(10)</enum><header>Rule of
construction relating to filing date of proposed rule changes</header>
<subparagraph id="ID3f81a3fe3b584ebb8373410cf1651806"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the date of filing of a
proposed rule change shall be deemed to be the date on which the Commission
receives the proposed rule change.</text>
</subparagraph><subparagraph id="IDa351056f07054ae3b179c6beb0a5882d"><enum>(B)</enum><header>Exception</header><text>A
proposed rule change has not been received by the Commission for purposes of
subparagraph (A) if, not later than 7 days after the date of receipt by the
Commission, the Commission notifies the self-regulatory organization that such
proposed rule change does not comply with the rules of the Commission relating
to the required form of a proposed rule
change.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6E5FB5725D8B4023840B0BF658D42167"><enum>(2)</enum><header>Publication</header><text>Section
19(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)(1)) is
amended by striking <quote>upon</quote> and inserting <quote>as soon as
practicable after the date of</quote>.</text>
</paragraph></subsection><subsection id="IDdb9ee61591124b589437dd91973f4d00"><enum>(c)</enum><header>Effective date
of proposed rules</header><text>Section 19(b)(3) of the Securities Exchange Act
of 1934 (15 U.S.C. 78s(b)(3)) is amended—</text>
<paragraph id="ID887d5adcb8d64db38755c86dabd18a57"><enum>(1)</enum><text>in
subparagraph (A)—</text>
<subparagraph id="idFDB62213DF1D483EBD5D712EAC83A124"><enum>(A)</enum><text>by striking
<quote>may take effect</quote> and inserting <quote>shall take effect</quote>;
and</text>
</subparagraph><subparagraph id="ID2e0a6ed27b4642fab481d1dfd38571f1"><enum>(B)</enum><text>by inserting
<quote>on any person, whether or not the person is a member of the
self-regulatory organization</quote> after <quote>charge imposed by the
self-regulatory organization</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID4e01493a774946d8815d65fb5281ba0c"><enum>(2)</enum><text>in
subparagraph (C)—</text>
<subparagraph id="ID904b67589e4d4bb6961c0512fef1f69c"><enum>(A)</enum><text>by amending the
second sentence to read as follows: <quote>At any time within the 60-day period
beginning on the date of filing of such a proposed rule change in accordance
with the provisions of paragraph (1), the Commission summarily may temporarily
suspend the change in the rules of the self-regulatory organization made
thereby, if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</quote>;</text>
</subparagraph><subparagraph id="id347B20A80E794DFC8DD1CD6730161C01"><enum>(B)</enum><text>by inserting
after the second sentence the following: <quote>If the Commission takes such
action, the Commission shall institute proceedings under paragraph (2)(B) to
determine whether the proposed rule should be approved or disapproved.</quote>;
and</text>
</subparagraph><subparagraph id="IDb18977d2aa744ff3b19faad3e6c37ea2"><enum>(C)</enum><text>in the third
sentence, by striking <quote>the preceding sentence</quote> and inserting
<quote>this subparagraph</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID6fe5c9429052479fa3440de0bfc0a353"><enum>(d)</enum><header>Conforming
change</header><text>Section 19(b)(4)(D) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)(4)(D)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idAB6C376DA3864D1AAF636305D12B327A" style="OLC">
<subparagraph id="ID51135c7cc51a4539b14a8db92ed483e5"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="id0A139300C3B2479D947B618934873B7D"><enum>(i)</enum><text>The Commission shall
order the temporary suspension of any change in the rules of a clearing agency
made by a proposed rule change that has taken effect under paragraph (3), if
the appropriate regulatory agency for the clearing agency notifies the
Commission not later than 30 days after the date on which the proposed rule
change was filed of—</text>
<subclause id="idFA0F34D13CF945BB88ACD9BB77B1BEDA" indent="up1"><enum>(I)</enum><text>the determination by the appropriate
regulatory agency that the rules of such clearing agency, as so changed, may be
inconsistent with the safeguarding of securities or funds in the custody or
control of such clearing agency or for which it is responsible; and</text>
</subclause><subclause id="id67C7195CA9E442B9A35732C1A990CB28" indent="up1"><enum>(II)</enum><text>the reasons for the determination
described in subclause (I).</text>
</subclause></clause><clause id="idF7378D4D0F9C4BF1AF8AC710049ED61D" indent="up1"><enum>(ii)</enum><text>If the Commission takes action
under clause (i), the Commission shall institute proceedings under paragraph
(2)(B) to determine if the proposed rule change should be approved or
disapproved.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id294366874127450CBCBBA08C985F8A94"><enum>916.</enum><header>Study
regarding financial literacy among investors</header>
<subsection id="IDC0E39AA41C1B41618E9F5D07D82022E0"><enum>(a)</enum><header>In
general</header><text>The Commission shall conduct a study to identify—</text>
<paragraph id="ID734BA75EBB804536B3A3CFB9A340E3BB"><enum>(1)</enum><text>the
existing level of financial literacy among retail investors, including
subgroups of investors identified by the Commission;</text>
</paragraph><paragraph id="ID505EB3E054E84D0E81F8089D8EE29116"><enum>(2)</enum><text>methods to
improve the timing, content, and format of disclosures to investors with
respect to financial intermediaries, investment products, and investment
services;</text>
</paragraph><paragraph id="id2AF7812B3BCC40BC8AC996FD90CC14CA"><enum>(3)</enum><text>the
most useful and understandable relevant information that retail investors need
to make informed financial decisions before engaging a financial intermediary
or purchasing an investment product or service that is typically sold to retail
investors, including shares of open-end companies, as that term is defined in
section 5 of the Investment Company Act of 1940 (15 U.S.C. 80a–5) that are
registered under section 8 of that Act;</text>
</paragraph><paragraph id="id98D0296B06944383A3D3D3BAA521D433"><enum>(4)</enum><text>methods to
increase the transparency of expenses and conflicts of interests in
transactions involving investment services and products, including shares of
open-end companies described in paragraph (3);</text>
</paragraph><paragraph id="ID127A3D6CE7E645369F09F011224CFE1B"><enum>(5)</enum><text>the
most effective existing private and public efforts to educate investors;
and</text>
</paragraph><paragraph id="ID1C5CFB39F4D14B4CBF3D70F7B7512890"><enum>(6)</enum><text>in
consultation with the Financial Literacy and Education Commission, a strategy
(including, to the extent practicable, measurable goals and objectives) to
increase the financial literacy of investors in order to bring about a positive
change in investor behavior.</text>
</paragraph></subsection><subsection id="ID125DD648D2104F4E836581523500CE05"><enum>(b)</enum><header>Report</header><text>Not
later than 2 years after the date of enactment of this Act, the Commission
shall submit a report on the study required under subsection (a) to—</text>
<paragraph id="IDEB4B86FDEB044B0CA484BFE579F9BD6B"><enum>(1)</enum><text>the
Committee on Banking, Housing, and Urban Affairs of the Senate; and</text>
</paragraph><paragraph id="ID3BA41F4898C94D2BAE6894786F5FEEB7"><enum>(2)</enum><text>the
Committee on Financial Services of the House of Representatives.</text>
</paragraph></subsection></section><section id="IDF160394B85614895846D7773ADC241E8"><enum>917.</enum><header>Study
regarding mutual fund advertising</header>
<subsection id="ID805B205FB0564ABF94F166B162F05DA8"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study on mutual fund advertising to identify—</text>
<paragraph id="ID2CE521B6D92E4398B83505A866699900"><enum>(1)</enum><text>existing and
proposed regulatory requirements for open-end investment company
advertisements;</text>
</paragraph><paragraph id="ID8B41DA4D0A07431AA6326BB062DB91B0"><enum>(2)</enum><text>current marketing
practices for the sale of open-end investment company shares, including the use
of past performance data, funds that have merged, and incubator funds;</text>
</paragraph><paragraph id="ID1B6F419D83E84507A33F86280043BFF3"><enum>(3)</enum><text>the
impact of such advertising on consumers; and</text>
</paragraph><paragraph id="IDB53DBF24B39244FFA4E09E59B8301023"><enum>(4)</enum><text>recommendations
to improve investor protections in mutual fund advertising and additional
information necessary to ensure that investors can make informed financial
decisions when purchasing shares.</text>
</paragraph></subsection><subsection id="IDE4E4B5881CD44BDAB8266494C283DCF0"><enum>(b)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report on the results of the study
conducted under subsection (a) to—</text>
<paragraph id="ID104622C9037F40ADADC600BBC1A72D8B"><enum>(1)</enum><text>the
Committee on Banking, Housing, and Urban Affairs of the United States Senate;
and</text>
</paragraph><paragraph id="ID17027E13EEB142F0B0A26B070072AFB3"><enum>(2)</enum><text>the
Committee on Financial Services of the House of Representatives.</text>
</paragraph></subsection></section><section id="id450BA300F4014BCCB6701F97FF558DBD"><enum>918.</enum><header>Clarification
of commission authority to require investor disclosures before purchase of
investment products and services</header><text display-inline="no-display-inline">Section 15 of the Securities Exchange Act of
1934 (15 U.S.C. 78o) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE2B5D14068304A599519A111B58189B8" style="OLC">
<subsection id="idA60D6D0382EA451AADA0DA3C1C193FA8"><enum>(k)</enum><header>Disclosures to
retail investors</header>
<paragraph id="idA9EF005FA0814151ADABF8BC87EFBC42"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of the securities laws, the Commission may issue rules
designating documents or information that shall be provided by a broker or
dealer to a retail investor before the purchase of an investment product or
service by the retail investor.</text>
</paragraph><paragraph id="id4E2539BAEF3C4CF3BACFFE7B716D85AB"><enum>(2)</enum><header>Considerations</header><text>In
developing any rules under paragraph (1), the Commission shall consider whether
the rules will promote investor protection, efficiency, competition, and
capital formation.</text>
</paragraph><paragraph id="id7016746731BF44B3869BC01314C1DDB0"><enum>(3)</enum><header>Form and
contents of documents and information</header><text>Any documents or
information designated under a rule promulgated under paragraph (1)
shall—</text>
<subparagraph id="id2BBD9AAAD75F4FE39FD9E1B7C73D8543"><enum>(A)</enum><text>be in a summary
format; and</text>
</subparagraph><subparagraph id="id57BFA98800364A50AFD1185373DFAC61"><enum>(B)</enum><text>contain clear and
concise information about—</text>
<clause id="idCFEAD8EE61FD4E6BBEEE3A191A127913"><enum>(i)</enum><text>investment
objectives, strategies, costs, and risks; and</text>
</clause><clause id="idAA2B2E4FD566405BB2B1278C9ADF56E6"><enum>(ii)</enum><text>any
compensation or other financial incentive received by a broker, dealer, or
other intermediary in connection with the purchase of retail investment
products.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id45E82CC31C784437932C247D5C1E914A"><enum>919.</enum><header>Study on
conflicts of interest</header>
<subsection id="id2AF439B37C2D46289316C06D385B9F04"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study—</text>
<paragraph id="id83F029DC544E4B9C898D38A175BD9630"><enum>(1)</enum><text>to
identify and examine potential conflicts of interest that exist between the
staffs of the investment banking and equity and fixed income securities analyst
functions within the same firm; and</text>
</paragraph><paragraph id="idB82B0511DD7747219D3B5DDB3602535C"><enum>(2)</enum><text>to
make recommendations to Congress designed to protect investors in light of such
conflicts.</text>
</paragraph></subsection><subsection commented="no" id="ID9a57b5e154e3448bb0e97253d95700ed"><enum>(b)</enum><header>Considerations</header><text>In
conducting the study under subsection (a), the Comptroller General
shall—</text>
<paragraph commented="no" id="id7FEF25EC447D418FAAD3EA05650CAC99"><enum>(1)</enum><text>consider—</text>
<subparagraph commented="no" id="ID6a7995301b7046bf81a6c6d46c17abc8"><enum>(A)</enum><text>the potential for
investor harm resulting from conflicts, including consideration of the forms of
misconduct engaged in by the several securities firms and individuals that
entered into the Global Analyst Research Settlements in 2003 (also known as the
<quote>Global Settlement</quote>);</text>
</subparagraph><subparagraph commented="no" id="IDd402f8862d4347aa9fa8cb673ba12513"><enum>(B)</enum><text>the nature and
benefits of the undertakings to which those firms agreed in enforcement
proceedings, including firewalls between research and investment banking,
separate reporting lines, dedicated legal and compliance staffs, allocation of
budget, physical separation, compensation, employee performance evaluations,
coverage decisions, limitations on soliciting investment banking business,
disclosures, transparency, and other measures;</text>
</subparagraph><subparagraph commented="no" id="IDba8902ce48354c6c94034e139e3ff1d4"><enum>(C)</enum><text>whether any such
undertakings should be codified and applied permanently to securities firms, or
whether the Commission should adopt rules applying any such undertakings to
securities firms; and</text>
</subparagraph><subparagraph commented="no" id="IDfc74727db1734b09bc22dd7646ad3289"><enum>(D)</enum><text>whether to
recommend regulatory or legislative measures designed to mitigate possible
adverse consequences to investors arising from the conflicts of interest or to
enhance investor protection or confidence in the integrity of the securities
markets; and</text>
</subparagraph></paragraph><paragraph commented="no" id="IDaf99608e75cd4b07a76055992714a299"><enum>(2)</enum><text>consult with
State attorneys general, State securities officials, the Commission, the
Financial Industry Regulatory Authority (<quote>FINRA</quote>), NYSE
Regulation, investor advocates, brokers, dealers, retail investors,
institutional investors, and academics.</text>
</paragraph></subsection><subsection commented="no" id="IDc303ca42b2e14b64a35049253fa66dc1"><enum>(c)</enum><header>Report</header><text>The
Comptroller General shall submit a report on the results of the study required
by this section to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives,
not later than 18 months after the date of enactment of this Act.</text>
</subsection></section><section id="idEFE518B3EF34494E9009D67EEAB0A995"><enum>919A.</enum><header>Study on
improved investor access to information on investment advisers and
broker-dealers</header>
<subsection id="id14C040F041BF4AB48DD60008D40B0CEE"><enum>(a)</enum><header>Study</header>
<paragraph id="id16713B71B59E4ED9811F9B070930C2E1"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the date of enactment of
this Act, the Commission shall complete a study, including recommendations, of
ways to improve the access of investors to registration information (including
disciplinary actions, regulatory, judicial, and arbitration proceedings, and
other information) about registered and previously registered investment
advisers, associated persons of investment advisers, brokers and dealers and
their associated persons on the existing Central Registration Depository and
Investment Adviser Registration Depository systems, as well as identify
additional information that should be made publicly available.</text>
</paragraph><paragraph id="id8722E345846E47338DBC58681C188DAD"><enum>(2)</enum><header>Contents</header><text>The
study required by subsection (a) shall include an analysis of the advantages
and disadvantages of further centralizing access to the information contained
in the 2 systems, including—</text>
<subparagraph id="ID489c4fe60b09411fb2ed9d2b4e38cf45"><enum>(A)</enum><text>identification of
those data pertinent to investors; and</text>
</subparagraph><subparagraph id="ID7e046a1023f741dc9d0e900bdec9a984"><enum>(B)</enum><text>the
identification of the method and format for displaying and publishing such data
to enhance accessibility by and utility to investors.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID03955c759df04c5fa8e35a9029284d6e"><enum>(b)</enum><header>Implementation</header><text>Not
later than 18 months after the date of completion of the study required by
subsection (a), the Commission shall implement any recommendations of the
study.</text>
</subsection></section><section id="IDbbffea0cd5bd40999c19be72a3e5f494"><enum>919B.</enum><header>Study on
financial planners and the use of financial designations</header>
<subsection id="IDac6ef755087040b098dad223da5eea45"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall conduct a study to evaluate—</text>
<paragraph id="IDdfd470d1aa7f40558e2ffe5e3e39601c"><enum>(1)</enum><text>the
effectiveness of State and Federal regulations to protect consumers from
individuals who hold themselves out as financial planners through the use of
misleading designations;</text>
</paragraph><paragraph id="ID00d4dc6b20e04ac5aa6abe8a7558a333"><enum>(2)</enum><text>current State and
Federal oversight structure and regulations for financial planners; and</text>
</paragraph><paragraph id="ID296e77df75cf4da09e209585de7ed90b"><enum>(3)</enum><text>legal or
regulatory gaps in the regulation of financial planners and other individuals
who provide or offer to provide financial planning services to
consumers.</text>
</paragraph></subsection><subsection id="ID0c9a3eddae8e46309390d5578fc95e12"><enum>(b)</enum><header>Considerations</header><text>In
conducting the study required under subsection (a), the Comptroller General
shall consider—</text>
<paragraph id="IDd86d25e437304ee89477efc1042c9f27"><enum>(1)</enum><text>the
role of financial planners in providing advice regarding the management of
financial resources, including investment planning, income tax planning,
education planning, retirement planning, estate planning, and risk
management;</text>
</paragraph><paragraph id="ID879258d670a549c8863335448bd839c4"><enum>(2)</enum><text>whether current
regulations at the State and Federal level provide adequate ethical and
professional standards for financial planners;</text>
</paragraph><paragraph id="ID12afde1f75a44ba0a45d8802f537db82"><enum>(3)</enum><text>the
use of the title <quote>financial planner</quote> and misleading designations
in connection with sale of financial products, including insurance and
securities;</text>
</paragraph><paragraph id="ID1ef39d3b6a834a75a3ef1197ee9fc7ff"><enum>(4)</enum><text>the
possible risk posed to consumers by individuals who hold themselves out as
financial planners through the use of misleading designations, including
<quote>financial advisor</quote> and <quote>financial
consultant</quote>;</text>
</paragraph><paragraph id="IDc9334b6efe7c4b449b109f845acf7bb5"><enum>(5)</enum><text>the
ability of consumers to understand licensing requirements and standards of care
that apply to individuals who provide financial advice;</text>
</paragraph><paragraph id="IDd18b6e4e8f224b9eb872a407ee675ad3"><enum>(6)</enum><text>the
possible benefits to consumers of regulation and professional oversight of
financial planners; and</text>
</paragraph><paragraph id="ID38330d54d8fb4a8993278a5d685ba173"><enum>(7)</enum><text>any
other consideration that the Comptroller General deems necessary or appropriate
to effectively execute the study required under subsection (a).</text>
</paragraph></subsection><subsection id="ID6b64d414d1d34015966d7f8679318aa9"><enum>(c)</enum><header>Recommendations</header><text display-inline="yes-display-inline">In providing recommendations for the
appropriate regulation of financial planners and other individuals who provide
or offer to provide financial planning services, in order to protect consumers
of financial planning services, the Comptroller General shall consider—</text>
<paragraph id="ID59b67d0508154c8f96770c5ce49c42bc"><enum>(1)</enum><text>the
appropriate structure for regulation of financial planners and individuals
providing financial planning services; and</text>
</paragraph><paragraph id="IDfa8861927d144c068e6c5e264534c774"><enum>(2)</enum><text>the
appropriate scope of the regulations needed to protect consumers, including but
not limited to the need to establish competency standards, practice standards,
ethical guidelines, disciplinary authority, and transparency to
consumers.</text>
</paragraph></subsection><subsection id="ID819430c8cb944f3997987ab820b0242a"><enum>(d)</enum><header>Report</header>
<paragraph id="ID3998a8aa28874da3be1087fb52cb18af"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit a report on the study required
under subsection (a) to—</text>
<subparagraph id="ID5d8f64ee72994207968df623b3216594"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate;</text>
</subparagraph><subparagraph id="ID33bc0700a0e44e3485a0c33954183a97"><enum>(B)</enum><text>the Special
Committee on Aging of the Senate; and</text>
</subparagraph><subparagraph id="ID8835af85342a4558b23cd6c1cb9eab6c"><enum>(C)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="ID55467b90f34a4af9b9b8d90e0e55c407"><enum>(2)</enum><header>Content
requirements</header><text>The report required under paragraph (1) shall
describe the findings and determinations made by the Comptroller General in
carrying out the study required under subsection (a), including a description
of the considerations, analysis, and government, public, industry, nonprofit
and consumer input that the Comptroller General considered to make such
findings, conclusions, and legislative, regulatory, or other
recommendations.</text>
</paragraph></subsection></section></subtitle><subtitle id="id064E1DC00CB246DF874A029D07A907E1"><enum>B</enum><header>Increasing
regulatory enforcement and remedies</header>
<section id="id07E7FA4A0B46485997455695C5031C80"><enum>921.</enum><header>Authority to
issue rules related to mandatory predispute arbitration</header>
<subsection id="IDf67850b727574083bdbdb88921d942de"><enum>(a)</enum><header>Amendment to
Securities Exchange Act of 1934</header><text>Section 15 of the Securities
Exchange Act of 1934 (15 U.S.C. 78o), as amended by section 918, is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1F0E2D86F2F14D2F8647F140F2A38402" style="OLC">
<subsection id="IDc04edef464e64f8aae93a6ef391b4d86"><enum>(l)</enum><header>Authority to
restrict mandatory predispute arbitration</header><text>The Commission may
conduct a rulemaking to reaffirm or prohibit, or impose or not 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
dispute between them and such broker, dealer, or municipal securities dealer
that arises under the securities laws or the rules of a self-regulatory
organization, if the Commission finds that such reaffirmation, prohibition,
imposition of conditions or limitations, or other action is in the public
interest and for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDab1844f62faf4fdfa27ef355885326c3"><enum>(b)</enum><header>Amendment to
Investment Advisers Act of 1940</header><text>Section 205 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–5) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id4D33478F9F9F47C69AFB25BC6884714A" style="OLC">
<subsection id="ID51807e862298481285bd025672ab0182"><enum>(f)</enum><header>Authority to
issue rules related to mandatory predispute arbitration</header><text>The
Commission may conduct rulemaking to reaffirm or prohibit, or impose or not
impose conditions or limitations on the use of, agreements that require
customers or clients of any investment adviser to arbitrate any dispute between
them and such investment adviser that arises under the securities laws, as
defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), or
the rules of a self-regulatory organization, if the Commission finds that such
reaffirmation, prohibition, imposition of conditions or limitations, or other
action is in the public interest and for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID183a967936914efaa12b4e3136c5ddb0"><enum>922.</enum><header>Whistleblower
protection</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 21E the following:</text>
<quoted-block display-inline="no-display-inline" id="idA95D5B65C0E34C1E877EF8D923150670" style="OLC">
<section id="ID4331e31ac911432e9abf24fe703a6856"><enum>21F.</enum><header>Securities
whistleblower incentives and protection</header>
<subsection id="id46AA86CB253E490186B06E1609D8CE25"><enum>(a)</enum><header>Definitions</header><text>In
this section the following definitions shall apply:</text>
<paragraph id="id9B89BA376C30439FA9CA44C4E839F2AA"><enum>(1)</enum><header>Covered
judicial or administrative action</header><text>The term <term>covered judicial
or administrative action</term> means any judicial or administrative action
brought by the Commission under the securities laws that results in monetary
sanctions exceeding $1,000,000.</text>
</paragraph><paragraph id="id85E7277D03ED4A1F857A315A45606DD7"><enum>(2)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Securities and Exchange Commission Investor
Protection Fund.</text>
</paragraph><paragraph id="id8B9018567F3E4EAA9C51775ECA78A67D"><enum>(3)</enum><header>Original
information</header><text>The term <term>original information</term> means
information that—</text>
<subparagraph id="idA4E520BEAE6F4FA48F9728E025EBD6D4"><enum>(A)</enum><text>is derived from
the independent knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph id="id0818F71F1448471BBB9B21A2D287299F"><enum>(B)</enum><text>is not known to
the Commission from any other source, unless the whistleblower is the original
source of the information; and</text>
</subparagraph><subparagraph id="id7798A206C83E499DB0705EB0B7780B2B"><enum>(C)</enum><text>is not
exclusively derived from an allegation made in a judicial or administrative
hearing, in a governmental report, hearing, audit, or investigation, or from
the news media, unless the whistleblower is a source of the information.</text>
</subparagraph></paragraph><paragraph id="idAD3BCA64E37845F1BED52187E8ACC395"><enum>(4)</enum><header>Monetary
sanctions</header><text>The term <term>monetary sanctions</term>, when used
with respect to any judicial or administrative action, means—</text>
<subparagraph id="id8803795BC56941BDABCB09743D7937A7"><enum>(A)</enum><text>any monies,
including penalties, disgorgement, and interest, ordered to be paid; and</text>
</subparagraph><subparagraph id="idEC274D6730DA4D9C91826C833199CD83"><enum>(B)</enum><text>any monies
deposited into a disgorgement fund or other fund pursuant to section 308(b) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(b)), as a result of such action
or any settlement of such action.</text>
</subparagraph></paragraph><paragraph id="id665E944AE4354B05817CB98CE5350969"><enum>(5)</enum><header>Related
action</header><text>The term <term>related action</term>, when used with
respect to any judicial or administrative action brought by the Commission
under the securities laws, means any judicial or administrative action brought
by an entity described in subclauses (I) through (IV) of subsection
(h)(2)(D)(i) that is based upon the original information provided by a
whistleblower pursuant to subsection (a) that led to the successful enforcement
of the Commission action.</text>
</paragraph><paragraph commented="no" id="idBFD862A640F14A609424122CBEF54C35"><enum>(6)</enum><header>Whistleblower</header><text>The
term <term>whistleblower</term> means any individual, or 2 or more individuals
acting jointly, who provides information relating to a violation of the
securities laws to the Commission, in a manner established, by rule or
regulation, by the Commission.</text>
</paragraph></subsection><subsection id="id10256699D0F54D769F0EDCBE52151CAF"><enum>(b)</enum><header>Awards</header>
<paragraph id="id936950AD662E4357BCE852C83948E4A2"><enum>(1)</enum><header>In
general</header><text>In any covered judicial or administrative action, or
related action, the Commission, under regulations prescribed by the Commission
and subject to subsection (c), shall pay an award or awards to 1 or more
whistleblowers who voluntarily provided original information to the Commission
that led to the successful enforcement of the covered judicial or
administrative action, or related action, in an aggregate amount equal
to—</text>
<subparagraph id="id01D348823195483896CFB1F6570047A2"><enum>(A)</enum><text>not less than 10
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions; and</text>
</subparagraph><subparagraph id="id01641347A153497A8316495077D837F6"><enum>(B)</enum><text>not more than 30
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions.</text>
</subparagraph></paragraph><paragraph id="idDA93BA11EF5C4C3693953A8512AAF7ED"><enum>(2)</enum><header>Payment of
awards</header><text>Any amount paid under paragraph (1) shall be paid from the
Fund.</text>
</paragraph></subsection><subsection id="IDb756a34439584957a15245affec6b1d6"><enum>(c)</enum><header>Determination
of amount of award; denial of award</header>
<paragraph id="IDce1c95c55b944253a6efe10769f0f054"><enum>(1)</enum><header>Determination
of amount of award</header>
<subparagraph id="id00CC010C098E40A6A9FC8E2AAF46CFFC"><enum>(A)</enum><header>Discretion</header><text>The
determination of the amount of an award made under subsection (b) shall be in
the discretion of the Commission.</text>
</subparagraph><subparagraph id="id9878CB4677C0464180845DECCC0CC4D5"><enum>(B)</enum><header>Criteria</header><text>In
determining the amount of an award made under subsection (b), the Commission
shall take into account—</text>
<clause id="id6D2AEDF6A8624A6CA10ADB15A7F269B3"><enum>(i)</enum><text>the
significance of the information provided by the whistleblower to the success of
the covered judicial or administrative action;</text>
</clause><clause id="idA319AE612B274B5791DCD9E697BD3BCE"><enum>(ii)</enum><text>the
degree of assistance provided by the whistleblower and any legal representative
of the whistleblower in a covered judicial or administrative action;</text>
</clause><clause id="idE12AD5157C564C1A92AFCDF3E20A2E6C"><enum>(iii)</enum><text>the
programmatic interest of the Commission in deterring violations of the
securities laws by making awards to whistleblowers who provide information that
lead to the successful enforcement of such laws; and</text>
</clause><clause id="idBE1EDCFBEE6443DB9308058659102623"><enum>(iv)</enum><text>such
additional relevant factors as the Commission may establish by rule or
regulation.</text>
</clause></subparagraph></paragraph><paragraph id="IDc80aa1273d094c2189ee5dace354cd53"><enum>(2)</enum><header>Denial of
award</header><text>No award under subsection (b) shall be made—</text>
<subparagraph id="IDd8f95e3b5d514c338c8671fd1e4b1165"><enum>(A)</enum><text>to any
whistleblower who is, or was at the time the whistleblower acquired the
original information submitted to the Commission, a member, officer, or
employee of—</text>
<clause id="id6AC10A31A83A417B91095E5E71A8932E"><enum>(i)</enum><text>an
appropriate regulatory agency;</text>
</clause><clause id="id634E69779884430293EC9138005F23AA"><enum>(ii)</enum><text>the
Department of Justice;</text>
</clause><clause id="id4D52B195443A4405915E972B1946EF47"><enum>(iii)</enum><text>a
self-regulatory organization;</text>
</clause><clause id="id9947E5F999514155ADB19958AF50504D"><enum>(iv)</enum><text>the
Public Company Accounting Oversight Board; or</text>
</clause><clause id="idE6754CF906394C64B12CD0F7139FD89A"><enum>(v)</enum><text>a law
enforcement organization;</text>
</clause></subparagraph><subparagraph id="IDc14cedc1fa4541bf88e65e602fe0a695"><enum>(B)</enum><text>to any
whistleblower who is convicted of a criminal violation related to the judicial
or administrative action for which the whistleblower otherwise could receive an
award under this section;</text>
</subparagraph><subparagraph id="ID5dd0f0f9744f45a8bd5e8eaa399d1a24"><enum>(C)</enum><text>to any
whistleblower who gains the information through the performance of an audit of
financial statements required under the securities laws and for whom such
submission would be contrary to the requirements of section 101A of the
Securities Exchange Act of 1934 (15 U.S.C. 78j–1); or</text>
</subparagraph><subparagraph id="id5733DC109D5E4194987DD22B63A7C6DF"><enum>(D)</enum><text>to any
whistleblower who fails to submit information to the Commission in such form as
the Commission may, by rule, require.</text>
</subparagraph></paragraph></subsection><subsection id="ID2d81c172f160458eb1f38b8544349703"><enum>(d)</enum><header>Representation</header>
<paragraph id="ID913d25e8102f44ff9912bd50253c912d"><enum>(1)</enum><header>Permitted
representation</header><text>Any whistleblower who makes a claim for an award
under subsection (b) may be represented by counsel.</text>
</paragraph><paragraph id="IDa0adea08706c48f59bdaf8ba2ae179a5"><enum>(2)</enum><header>Required
representation</header>
<subparagraph id="id7712338611FB490E94C431C3899461D5"><enum>(A)</enum><header>In
general</header><text>Any whistleblower who anonymously makes a claim for an
award under subsection (b) shall be represented by counsel if the whistleblower
anonymously submits the information upon which the claim is based.</text>
</subparagraph><subparagraph id="idA9642AF6100B4D219CDBF990E53D91E2"><enum>(B)</enum><header>Disclosure of
identity</header><text>Prior to the payment of an award, a whistleblower shall
disclose the identity of the whistleblower and provide such other information
as the Commission may require, directly or through counsel for the
whistleblower.</text>
</subparagraph></paragraph></subsection><subsection id="ID27371b94699b4d3c9527c227d10e439a"><enum>(e)</enum><header>No contract
necessary</header><text>No contract with the Commission is necessary for any
whistleblower to receive an award under subsection (b), unless otherwise
required by the Commission by rule or regulation.</text>
</subsection><subsection id="ID1de615a8dccf4809b86625beea035cee"><enum>(f)</enum><header>Appeals</header><text>Any
determination made under this section, including whether, to whom, or in what
amount to make awards, shall be in the discretion of the Commission. Any such
determination may be appealed to the appropriate court of appeals of the United
States not more than 30 days after the determination is issued by the
Commission. The court shall review the determination made by the Commission in
accordance with section 706 of title 5, United States Code.</text>
</subsection><subsection id="IDf5d1a4c9517742dfaa3e881fa634d345"><enum>(g)</enum><header>Investor
Protection Fund</header>
<paragraph id="IDb84b76f01b344545a2cf6d6b4a948845"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a fund to be known as the <quote>Securities and Exchange Commission
Investor Protection Fund</quote>.</text>
</paragraph><paragraph id="ID2014f57869c64ecaaa084aead1d38c16"><enum>(2)</enum><header>Use of
Fund</header><text>The Fund shall be available to the Commission, without
further appropriation or fiscal year limitation, for—</text>
<subparagraph id="id8E15BFD42D7B4065A7C182E6D2C6503C"><enum>(A)</enum><text>paying awards to
whistleblowers as provided in subsection (b); and</text>
</subparagraph><subparagraph id="id1892BB29A827408C9967CDFFE387FD20"><enum>(B)</enum><text>funding the
activities of the Inspector General of the Commission under section
4(i).</text>
</subparagraph></paragraph><paragraph id="IDfa5815a25724476587bb2b7cc3312567"><enum>(3)</enum><header>Deposits and
credits</header><text>There shall be deposited into or credited to the Fund an
amount equal to—</text>
<subparagraph id="ID34d2f20597a145a3aa71984d7ed29428"><enum>(A)</enum><text>the amount
awarded under subsection (b) from any monetary sanction collected by the
Commission in any judicial or administrative action brought by the Commission
that is based on information provided by a whistleblower under the securities
laws, unless, the balance of the Fund at the time the monetary sanction is
collected exceeds $200,000,000;</text>
</subparagraph><subparagraph id="ID01a950ed3fd744bdbe8d7f358bb4e78f"><enum>(B)</enum><text>any monetary
sanction added to a disgorgement fund or other fund pursuant to section 308 of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246) that is not distributed to the
victims for whom the disgorgement fund was established, unless the balance of
the disgorgement fund at the time the determination is made not to distribute
the monetary sanction to such victims exceeds $100,000,000; and</text>
</subparagraph><subparagraph id="IDa9668e89a1f343b5aab0c1ea43674246"><enum>(C)</enum><text>all income from
investments made under paragraph (4).</text>
</subparagraph></paragraph><paragraph id="IDbcbe5784a3b6469ab009e18bdd29895a"><enum>(4)</enum><header>Investments</header>
<subparagraph id="ID1e0f007a688440d597673bd4623f9b83"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Commission may request the Secretary of the
Treasury to invest the portion of the Fund that is not, in the discretion of
the Commission, required to meet the current needs of the Fund.</text>
</subparagraph><subparagraph id="ID800feb628631433ab9d258ba487c1b25"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary of the
Treasury in obligations of the United States or obligations that are guaranteed
as to principal and interest by the United States, with maturities suitable to
the needs of the Fund as determined by the Commission on the record.</text>
</subparagraph><subparagraph id="ID033a7d3ed56c41569c3d64f57f42ad88"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Fund shall be credited to the
Fund.</text>
</subparagraph></paragraph><paragraph id="ID6bd4848700d04a4bbcbea9db1b377078"><enum>(5)</enum><header>Reports to
Congress</header><text>Not later than October 30 of each fiscal year beginning
after the date of enactment of this subsection, the Commission shall submit to
the Committee on Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of Representatives a report
on—</text>
<subparagraph id="IDb5fcd04d0ff1493386834479715b7576"><enum>(A)</enum><text>the whistleblower
award program, established under this section, including—</text>
<clause id="idB8B267E56B634849B4B4C7AD8C8FCBEF"><enum>(i)</enum><text>a
description of the number of awards granted; and</text>
</clause><clause id="idDD071AF8CB784E1B9894C7A24B6E4623"><enum>(ii)</enum><text>the
types of cases in which awards were granted during the preceding fiscal
year;</text>
</clause></subparagraph><subparagraph id="IDbe74e23b28a546819358334d746cc01a"><enum>(B)</enum><text>the balance of
the Fund at the beginning of the preceding fiscal year;</text>
</subparagraph><subparagraph id="IDaf401a8abc4441c69e51fa43da48e278"><enum>(C)</enum><text>the amounts
deposited into or credited to the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="ID22de4de97a7d439eafcfceb9267ef61c"><enum>(D)</enum><text>the amount of
earnings on investments made under paragraph (4) during the preceding fiscal
year;</text>
</subparagraph><subparagraph id="ID4f7fec854c77458f825efbb4ceb95427"><enum>(E)</enum><text>the amount paid
from the Fund during the preceding fiscal year to whistleblowers pursuant to
subsection (b);</text>
</subparagraph><subparagraph id="ID1c464c37497a405ab1af724a18acb82f"><enum>(F)</enum><text>the balance of
the Fund at the end of the preceding fiscal year; and</text>
</subparagraph><subparagraph id="ID1e582d807ebe4942931d3fa26f91bfc7"><enum>(G)</enum><text>a complete set of
audited financial statements, including—</text>
<clause id="id370C9515BE3B43D585992A20C14E421E"><enum>(i)</enum><text>a
balance sheet;</text>
</clause><clause id="idFF036569D87042B993FD2A04666ADC80"><enum>(ii)</enum><text>income
statement; and</text>
</clause><clause id="idAF31BF6AEC154C3A96E0E7F8E3B82C37"><enum>(iii)</enum><text>cash flow
analysis.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID95e2520a348147ce899a47092492252e"><enum>(h)</enum><header>Protection of
whistleblowers</header>
<paragraph id="IDf2b0faa0973c45c5961db09c34cf4495"><enum>(1)</enum><header>Prohibition
against retaliation</header>
<subparagraph id="idA66A72C67620495B909925691596D625"><enum>(A)</enum><header>In
general</header><text>No employer may discharge, demote, suspend, threaten,
harass, directly or indirectly, or in any other manner discriminate against, a
whistleblower in the terms and conditions of employment because of any lawful
act done by the whistleblower—</text>
<clause id="id013655AEE4334E098081555B9EBDCC21"><enum>(i)</enum><text>in
providing information to the Commission in accordance with subsection (a);
or</text>
</clause><clause id="id8549C09D3AF248C1843EC66F42BC9545"><enum>(ii)</enum><text>in
assisting in any investigation or judicial or administrative action of the
Commission based upon or related to such information.</text>
</clause></subparagraph><subparagraph id="id2D4C9396A4734955886010F07162D857"><enum>(B)</enum><header>Enforcement</header>
<clause id="HB0179B9E743941C6B50E2AEF30A92713"><enum>(i)</enum><header>Cause of
action</header><text>An individual who alleges discharge or other
discrimination in violation of subparagraph (A) may bring an action under this
subsection in the appropriate district court of the United States for the
relief provided in subparagraph (C).</text>
</clause><clause id="H91F262AE4A63403FA3AEF40275E5C8B9"><enum>(ii)</enum><header>Subpoenas</header><text>A
subpoena requiring the attendance of a witness at a trial or hearing conducted
under this section may be served at any place in the United States.</text>
</clause><clause id="H6C265F1EB4434EB6A5AD9CF01364CD5F"><enum>(iii)</enum><header>Statute of
limitations</header>
<subclause id="id1F219F17C9E24D049745B0E1788D21F7"><enum>(I)</enum><header>In
general</header><text>An action under this subsection may not be
brought—</text>
<item id="id3BEFA9B05F02438DBD46816160D2B386"><enum>(aa)</enum><text>more
than 6 years after the date on which the violation of subparagraph (A)
occurred; or</text>
</item><item id="id3C133DFDD3554B26A23F740A96CABCBD"><enum>(bb)</enum><text>more
than 3 years after the date when facts material to the right of action are
known or reasonably should have been known by the employee alleging a violation
of subparagraph (A).</text>
</item></subclause><subclause id="id65F09083941747C196A104EB2F080848"><enum>(II)</enum><header>Required
action within 10 years</header><text>Notwithstanding subclause (I), an action
under this subsection may not in any circumstance be brought more than 10 years
after the date on which the violation occurs.</text>
</subclause></clause></subparagraph><subparagraph id="idB13F0FFB4AB34199AE89CBB0400B855A"><enum>(C)</enum><header>Relief</header><text>Relief
for an individual prevailing in an action brought under subparagraph (B) shall
include—</text>
<clause id="idB484BE4B681A470480756B13B086C226"><enum>(i)</enum><text>reinstatement
with the same seniority status that the individual would have had, but for the
discrimination;</text>
</clause><clause id="idECDA82D15B6E4311B1092B3CB8C10FC0"><enum>(ii)</enum><text>2
times the amount of back pay otherwise owed to the individual, with interest;
and</text>
</clause><clause id="id66AADD2763564149A05BC34F899872A4"><enum>(iii)</enum><text>compensation
for litigation costs, expert witness fees, and reasonable attorneys’
fees.</text>
</clause></subparagraph></paragraph><paragraph id="IDcdfa71e6f9fa4aafae57f610d0009cd5"><enum>(2)</enum><header>Confidentiality</header>
<subparagraph id="ID914e7d5a865441ae94123123b9bc1704"><enum>(A)</enum><header>In
general</header><text>Unless and until required to be disclosed to a defendant
or respondent in connection with a proceeding instituted by the Commission or
any entity described in subparagraph (D), all information provided to the
Commission by a whistleblower—</text>
<clause id="id2A794CF6ABC84F3F89DA65978C0601B5"><enum>(i)</enum><text>in
any proceeding in any Federal or State court or administrative agency—</text>
<subclause id="idA8F3145130134AF4B117883C28902164"><enum>(I)</enum><text>shall be
confidential and privileged as an evidentiary matter; and</text>
</subclause><subclause id="idCD0C705C5E2346B1A44D8EA15215CA3B"><enum>(II)</enum><text>shall not be
subject to civil discovery or other legal process; and</text>
</subclause></clause><clause id="idA4A361F8C1A947BD80A4996D330F7099"><enum>(ii)</enum><text>shall not be
subject to disclosure under section 552 of title 5, United States Code
(commonly referred to as the Freedom of Information Act) or under any
proceeding under that section.</text>
</clause></subparagraph><subparagraph id="id00CF55DFF808479394B49461653E9E17"><enum>(B)</enum><header>Exempted
statute</header><text>For purposes of section 552 of title 5, United States
Code, this paragraph shall be considered a statute described in subsection
(b)(3)(B) of such section 552.</text>
</subparagraph><subparagraph id="idCEB353B2E93D488DA9F387E6D58BA43E"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in this section is intended to limit, or
shall be construed to limit, the ability of the Attorney General to present
such evidence to a grand jury or to share such evidence with potential
witnesses or defendants in the course of an ongoing criminal
investigation.</text>
</subparagraph><subparagraph id="ID63da2ba972c749d6bb6c428ab299b42e"><enum>(D)</enum><header>Availability to
government agencies</header>
<clause id="idAAD75939663D47A48B8EA60ED3D6497D"><enum>(i)</enum><header>In
general</header><text>Without the loss of its status as confidential and
privileged in the hands of the Commission, all information referred to in
subparagraph (A) may, in the discretion of the Commission, when determined by
the Commission to be necessary to accomplish the purposes of this Act and to
protect investors, be made available to—</text>
<subclause id="IDcf9747795e1a4d5898a05be65ed4fc60"><enum>(I)</enum><text>the Attorney
General of the United States;</text>
</subclause><subclause id="IDe007e2c3d9a44decb9fbcafad58ef465"><enum>(II)</enum><text>an appropriate
regulatory authority;</text>
</subclause><subclause id="ID54283d727cbe41beb7f96bc86bf11ac2"><enum>(III)</enum><text>a
self-regulatory organization;</text>
</subclause><subclause id="ID5ab89d2b863b440c8eea70cb4da26ad3"><enum>(IV)</enum><text>a
State attorney general in connection with any criminal investigation;</text>
</subclause><subclause id="ID9b9b5c1f46924655a766549656c74115"><enum>(V)</enum><text>any appropriate
State regulatory authority;</text>
</subclause><subclause id="idC339B02274E2499FBD098F59FB71992F"><enum>(VI)</enum><text>the Public
Company Accounting Oversight Board;</text>
</subclause><subclause id="id671A9046C5234EF2BFEF4BCFE2E9C265"><enum>(VII)</enum><text>a foreign
securities authority; and</text>
</subclause><subclause id="idE91EE4B7BC574E628809CF57F2E3AA20"><enum>(VIII)</enum><text>a foreign law
enforcement authority.</text>
</subclause></clause><clause id="id58D6EF95196E4F75AB8853EEBA064A2C"><enum>(ii)</enum><header>Confidentiality</header>
<subclause id="id16D4D5DB26944E58A92EE10CFDE1106D"><enum>(I)</enum><header>In
general</header><text>Each of the entities described in subclauses (I) through
(VI) of clause (i) shall maintain such information as confidential and
privileged, in accordance with the requirements established under subparagraph
(A).</text>
</subclause><subclause id="idF8FA16E8DE5E42F7A389269AC8C43F19"><enum>(II)</enum><header>Foreign
authorities</header><text>Each of the entities described in subclauses (VII)
and (VIII) of clause (i) shall maintain such information in accordance with
such assurances of confidentiality as the Commission determines
appropriate.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDde3c1f118c25477fa0885941323a7232"><enum>(3)</enum><header>Rights
retained</header><text>Nothing in this section shall be deemed to diminish the
rights, privileges, or remedies of any whistleblower under any Federal or State
law, or under any collective bargaining agreement.</text>
</paragraph></subsection><subsection id="IDc9aeedc97d6d4340bb10482d371511af"><enum>(i)</enum><header>Provision of
false information</header><text>A whistleblower shall not be entitled to an
award under this section if the whistleblower—</text>
<paragraph id="id89D0264C30E649DDA63DD12A4D1BC61E"><enum>(1)</enum><text>knowingly and
willfully makes any false, fictitious, or fraudulent statement or
representation; or</text>
</paragraph><paragraph id="idB50062CE698F40D8A3C4A7ABEEEE4DAF"><enum>(2)</enum><text>uses any false
writing or document knowing the writing or document contains any false,
fictitious, or fraudulent statement or entry.</text>
</paragraph></subsection><subsection id="id473B9447F45940D995FC02F651D33E39"><enum>(j)</enum><header>Rulemaking
authority</header><text>The Commission shall have the authority to issue such
rules and regulations as may be necessary or appropriate to implement the
provisions of this section consistent with the purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDf7af66f8c06c454fa778e6b3f43fc923"><enum>923.</enum><header>Conforming
amendments for whistleblower protection</header>
<subsection id="id373DAA5302A0495F8A3CBED4ABEE3A7D"><enum>(a)</enum><header>In
general</header>
<paragraph id="id362D03B28F674C5D93F453523F32B1A8"><enum>(1)</enum><header>Securities Act
of 1933</header><text>Section 20(d)(3)(A) of the Securities Act of 1933 (15
U.S.C. 77t(d)(3)(A)) is amended by inserting <quote>and section 21F of the
Securities Exchange Act of 1934</quote> after <quote>the Sarbanes-Oxley Act of
2002</quote>.</text>
</paragraph><paragraph id="id7AE01621CAC04F5EA7ECAD200E228340"><enum>(2)</enum><header>Investment
Company Act of 1940</header><text>Section 42(e)(3)(A) of the Investment Company
Act of 1940 (15 U.S.C. 80a–41(e)(3)(A)) is amended by inserting <quote>and
section 21F of the Securities Exchange Act of 1934</quote> after <quote>the
Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph><paragraph id="idCFB55B068B054FE0B0BFD10A18B63FBB"><enum>(3)</enum><header>Investment
Advisers Act of 1940</header><text>Section 209(e)(3)(A) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–9(e)(3)(A)) is amended by inserting
<quote>and section 21F of the Securities Exchange Act of 1934</quote> after
<quote>the Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph></subsection><subsection id="IDc72363e9dd584af888ae079ac2980fcb"><enum>(b)</enum><header>Securities
Exchange Act</header>
<paragraph id="ID6d99da00f572419c986459dc2d12edb3"><enum>(1)</enum><header>Section
21</header><text>Section 21(d)(3)(C)(i) of the Securities Exchange Act of 1934
(15 U.S.C. 78u(d)(3)(C)(i)) is amended by inserting <quote>and section 21F of
this title</quote> after <quote>the Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph><paragraph id="ID1932ea45b1264b0384e5b1816b948c21"><enum>(2)</enum><header>Section
21A</header><text>Section 21A of the Securities Exchange Act of 1934 (15 U.S.C.
78u–1) is amended—</text>
<subparagraph id="id5BD2531D8EC448FEA98C35F84F879455"><enum>(A)</enum><text>in subsection
(d)(1) by—</text>
<clause id="IDf85c8b0a7c22475ca934bdba9ec605e6"><enum>(i)</enum><text>striking
<quote>(subject to subsection (e))</quote>; and</text>
</clause><clause id="ID7e7046df364b4a78afa8595192e4e843"><enum>(ii)</enum><text>inserting
<quote>and section 21F of this title</quote> after <quote>the Sarbanes-Oxley
Act of 2002</quote>;</text>
</clause></subparagraph><subparagraph id="id37AA03D9145847ED9D29F5344D0C9626"><enum>(B)</enum><text>by striking
subsection (e); and</text>
</subparagraph><subparagraph id="idCEE8F987B8B2449F8A3F9BF8B8591F07"><enum>(C)</enum><text>by redesignating
subsections (f) and (g) as subsections (e) and (f), respectively.</text>
</subparagraph></paragraph></subsection></section><section id="ID2d9417cc5e6a49ca8cf151dec9711b72"><enum>924.</enum><header>Implementation
and transition provisions for whistleblower protection</header>
<subsection id="IDa2e916a06d5e4360be8cb43116dcb4b7"><enum>(a)</enum><header>Implementing
rules</header><text>The Commission shall issue final regulations implementing
the provisions of section 21F of the Securities Exchange Act of 1934, as added
by this subtitle, not later than 270 days after the date of enactment of this
Act.</text>
</subsection><subsection id="ID9e05cf948a004953aaf1ae7647e27127"><enum>(b)</enum><header>Original
information</header><text>Information provided to the Commission by a
whistleblower in accordance with the regulations referenced in subsection (a)
shall not lose the status of original information (as defined in section
21F(i)(1) of the Securities Exchange Act of 1934, as added by this subtitle)
solely because the whistleblower provided the information prior to the
effective date of the regulations, provided that the information is—</text>
<paragraph id="idA54B61D6EB69485EAF7BBDEB6A840BE8"><enum>(1)</enum><text>provided by the
whistleblower after the date of enactment of this subtitle, or monetary
sanctions are collected after the date of enactment of this subtitle; or</text>
</paragraph><paragraph id="idE16DF295F9CA4481AD357B1544A077E8"><enum>(2)</enum><text>related to a
violation for which an award under section 21F of the Securities Exchange Act
of 1934, as added by this subtitle, could have been paid at the time the
information was provided by the whistleblower.</text>
</paragraph></subsection><subsection id="ID0c1875085c2a48a7a52be957febb1c37"><enum>(c)</enum><header>Awards</header><text>A
whistleblower may receive an award pursuant to section 21F of the Securities
Exchange Act of 1934, as added by this subtitle, regardless of whether any
violation of a provision of the securities laws, or a rule or regulation
thereunder, underlying the judicial or administrative action upon which the
award is based, occurred prior to the date of enactment of this
subtitle.</text>
</subsection></section><section id="IDdb1f5b0703744f39bca5d1def27a649f"><enum>925.</enum><header>Collateral
bars</header>
<subsection id="ID52c70407d35e48539c54993705ac1f51"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header>
<paragraph id="idFF69B328763D41688DC3FF94F5807A68"><enum>(1)</enum><header>Section
15</header><text>Section 15(b)(6)(A) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b)(6)(A)) is amended by striking <quote>12 months, or bar such
person from being associated with a broker or dealer,</quote> and inserting
<quote>12 months, or bar any such person from being associated with a broker,
dealer, investment adviser, municipal securities dealer, municipal advisor,
transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph><paragraph id="ID6e7c24a76d364b22bd1cc9f8edc6242d"><enum>(2)</enum><header>Section
15b</header><text>Section 15B(c)(4) of the Securities Exchange Act of 1934 (15
U.S.C. 78o–4(c)(4)) is amended by striking <quote>twelve months or bar any such
person from being associated with a municipal securities dealer, </quote> and
inserting <quote>12 months or bar any such person from being associated with a
broker, dealer, investment adviser, municipal securities dealer, municipal
advisor, transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph><paragraph id="IDb81db5588a17471184a71905af36da10"><enum>(3)</enum><header>Section
17a</header><text>Section 17A(c)(4)(C) of the Securities Exchange Act of 1934
(15 U.S.C. 78q–1(c)(4)(C)) is amended by striking <quote>twelve months or bar
any such person from being associated with the transfer agent, </quote> and
inserting <quote>12 months or bar any such person from being associated with
any transfer agent, broker, dealer, investment adviser, municipal securities
dealer, municipal advisor, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph></subsection><subsection id="ID245e1008f56e4101aaea8ddf13e6cbc9"><enum>(b)</enum><header>Investment
Advisers Act of 1940</header><text>Section 203(f) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(f)) is amended by striking <quote>twelve months or
bar any such person from being associated with an investment adviser, </quote>
and inserting <quote>12 months or bar any such person from being associated
with an investment adviser, broker, dealer, municipal securities dealer,
municipal advisor, transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</subsection></section><section id="id04C39E29516E40079148F89195E997B1"><enum>926.</enum><header>Authority of
State regulators over Regulation D offerings</header><text display-inline="no-display-inline">Section 18(b)(4) of the Securities Act of
1933 (15 U.S.C. 77r(b)(4)) is amended—</text>
<paragraph id="id1D4F129098004CEE829D28F6E36DA51C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>A security</quote> and
inserting <quote>(A) <header-in-text level="subparagraph" style="OLC">In
general</header-in-text>—A security</quote>;</text>
</paragraph><paragraph id="idA0D61B108EEA490EA1F4C6301A7D0149"><enum>(2)</enum><text>by
redesignating subparagraphs (A) through (D) as clauses (i) through (iv),
respectively, and adjusting the margins accordingly; and</text>
</paragraph><paragraph id="id20F089F182D74082B92D968F229D5928"><enum>(3)</enum><text>by
striking clause (iv), as so redesignated, and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idD79F0773CC914939BE2EA54987B61E1B" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="IDEDEAD594CE694B5D99B1DB5FC2FCD539"><enum>(iv)</enum><text>Commission rules
or regulations issued under section 4(2), except that the Commission may
designate, by rule, a class of securities that it deems not to be covered
securities because the offering of such securities is not of sufficient size or
scope.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id16407E9C338F4550A1B5C856D1205931"><enum>(v)</enum><text>Not later than
360 days after the date of enactment of the Restoring American Financial
Stability Act of 2010, the Commission shall conduct a rulemaking to determine
whether to designate a class of securities because the offering of such
securities is not of sufficient size or scope.</text>
</clause><subparagraph id="id4D40C604C8DA407B91B07EDCEA0D393B"><enum>(B)</enum><header>Designation of
non-covered securities</header><text>In making a designation under subparagraph
(A)(iv), the Commission shall consider—</text>
<clause id="idB8F29E39ECAA497CADCF0D68D227B7E8"><enum>(i)</enum><text>the
size of the offering;</text>
</clause><clause id="id7154C64E6CB645178586B15D45520297"><enum>(ii)</enum><text>the
number of States in which the security is being offered; and</text>
</clause><clause id="id247DA5B59A0B4419A5BEB8E0C915E00F"><enum>(iii)</enum><text>the
nature of the persons to whom the security is being offered.</text>
</clause></subparagraph><subparagraph id="id5802348B791843798AD56A156B1429E0"><enum>(C)</enum><header>Review of
filings</header>
<clause id="idEE73F39BEB224306BBEF010CC414E716"><enum>(i)</enum><header>In
general</header><text>The Commission shall review any filings made relating to
any security issued under Commission rules or regulations under section 4(2),
other than one designated as a non-covered security under subparagraph (A)(iv),
not later than 120 days of the filing with the Commission.</text>
</clause><clause id="id1A097B538103412297ED190CC4FE45C9"><enum>(ii)</enum><header>Failure to
review within 120 days</header><text>If the Commission fails to review a filing
required under clause (i), the security shall no longer be a covered security,
except that—</text>
<subclause id="idC2BCD1EF3634489884F6C57F1AA040AA"><enum>(I)</enum><text>the failure of
the Commission to review a filing shall not result in the loss of status as a
covered security if the Commission, not later than 120 days of the filing with
the Commission, has determined that there has been a good faith and reasonable
attempt by the issuer to comply with all applicable terms, conditions, and
requirements of the filing; and</text>
</subclause><subclause id="idF76625D9CF82403597743EAA215F7232"><enum>(II)</enum><text>upon review of
the filing, if the Commission, not later than 120 days of the filing with the
Commission, determines that any failure to comply with the applicable filing
terms, conditions, and requirements is insignificant to the offering as a
whole.</text>
</subclause></clause></subparagraph><subparagraph id="id932D97AE65174428A623CEE5153B6678"><enum>(D)</enum><header>Effect on State
filing requirements</header>
<clause id="id6AB9B2F7DD4244B09444CA4A4B8F7594"><enum>(i)</enum><header>In
general</header><text>Nothing in subparagraph (A)(iv), (B), or (C) shall be
construed to prohibit a State from imposing notice filing requirements that are
substantially similar to filing requirements required by rule or regulation
under section 4(4) that were in effect on September 1, 1996.</text>
</clause><clause id="id4B8ED47006214B5696183FE01E96A7B2"><enum>(ii)</enum><header>Notification</header><text>Not
later than 180 days after the date of enactment of the Restoring American
Financial Stability Act of 2010, the Commission shall implement procedures,
after consultation with the States, to promptly notify States upon completion
of review of securities offerings described in subparagraph (A)(iv) by the
Commission.</text>
</clause></subparagraph><subparagraph id="id730506D17E7A48F0A972BF15BC578C15"><enum>(E)</enum><header>Offerings
affected</header><text>The requirements of this section shall apply to
offerings filed on or after the date of enactment of the Restoring Financial
Stability Act of
2010.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDab1e04248b214f20a684c656322d0568"><enum>927.</enum><header>Equal
treatment of self-regulatory organization rules</header><text display-inline="no-display-inline">Section 29(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78cc(a)) is amended by striking <quote>an exchange required
thereby</quote> and inserting <quote>a self-regulatory
organization,</quote>.</text>
</section><section id="ID80bfee52779242878580f13c1f04fe4b"><enum>928.</enum><header>Clarification
that Section 205 of the Investment Advisers Act of 1940 does not apply to
State-registered advisers</header><text display-inline="no-display-inline">Section 205(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–5(a)) is amended, in the matter preceding paragraph
(1)—</text>
<paragraph id="ID6b262af13f694f3b958006cca65ace4a"><enum>(1)</enum><text>by
striking <quote>, unless exempt from registration pursuant to section
203(b),</quote> and inserting <quote>registered or required to be registered
with the Commission</quote>;</text>
</paragraph><paragraph id="ID1441526c23eb43a8a47e20d8bf11dc5f"><enum>(2)</enum><text>by
striking <quote>make use of the mails or any means or instrumentality of
interstate commerce, directly or indirectly, to</quote>; and</text>
</paragraph><paragraph id="IDda427d64778d4ae897d3039cce6c3dfb"><enum>(3)</enum><text>by
striking <quote>to</quote> after <quote>in any way</quote>.</text>
</paragraph></section><section id="ID97a843ff545645e19b20552a95feba50"><enum>929.</enum><header>Unlawful
margin lending</header><text display-inline="no-display-inline">Section
7(c)(1)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78g(c)(1)(A)) is
amended by striking <quote>; and</quote> and inserting <quote>;
or</quote>.</text>
</section><section id="idDC3C406A4529465BB3A2597E8AABB275"><enum>929A.</enum><header>Protection
for employees of subsidiaries and affiliates of publicly traded
companies</header><text display-inline="no-display-inline">Section 1514A of
title 18, United States Code, is amended by inserting <quote>including any
subsidiary or affiliate whose financial information is included in the
consolidated financial statements of such company</quote> after <quote>the
Securities Exchange Act of 1934 (15 U.S.C. 78o(d))</quote>.</text>
</section><section id="HBFD7FAD77363483B8C045C09D8EC7674"><enum>929B.</enum><header>Fair Fund
amendments</header><text display-inline="no-display-inline">Section 308 of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(a)) is amended—</text>
<paragraph id="H776ABA050FDE43928E102F9303EAF7D0"><enum>(1)</enum><text>by
striking subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H243C6F18C5E042CD92D29123A979831C" style="OLC">
<subsection id="HE53E450A2D5F4E9EB73C707C54909419"><enum>(a)</enum><header>Civil penalties
To Be used for the relief of victims</header><text display-inline="yes-display-inline">If, in any judicial or administrative
action brought by the Commission under the securities laws, the Commission
obtains a civil penalty against any person for a violation of such laws, or
such person agrees, in settlement of any such action, to such civil penalty,
the amount of such civil penalty shall, on the motion or at the direction of
the Commission, be added to and become part of a disgorgement fund or other
fund established for the benefit of the victims of such
violation.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H75C9E10B7E6544C0A4ACD1E5DD62A73A"><enum>(2)</enum><text>in
subsection (b)—</text>
<subparagraph id="HDD23F19B54AD4E0C87B283A948DD6F0E"><enum>(A)</enum><text>by
striking <quote>for a disgorgement fund described in subsection (a)</quote> and
inserting <quote>for a disgorgement fund or other fund described in subsection
(a)</quote>; and</text>
</subparagraph><subparagraph id="H4E83A1496D94430E94BAD2F5E40410A7"><enum>(B)</enum><text>by
striking <quote>in the disgorgement fund</quote> and inserting <quote>in such
fund</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1FAC90A3180D4DE4A344D1429690C6FA"><enum>(3)</enum><text>by striking
subsection (e).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id7E874A7DB2A245D9ADDF54E098A7B4D7"><enum>929C.</enum><header>Increasing
the borrowing limit on Treasury loans</header><text display-inline="no-display-inline">Section 4(h) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78ddd(h)) is amended in the first sentence,
by striking <quote>$1,000,000,000</quote> and inserting
<quote>$2,500,000,000</quote>.</text>
</section></subtitle><subtitle id="idEF916A97951D46BBA6B02A8C84CDCA8F"><enum>C</enum><header>Improvements to
the Regulation of Credit Rating Agencies</header>
<section id="IDedbfcba8b66a4ccbac1d5b646016e98f"><enum>931.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="ID232b7ff1c63749e8a5cf0cf948474508"><enum>(1)</enum><text>Because of the
systemic importance of credit ratings and the reliance placed on credit ratings
by individual and institutional investors and financial regulators, the
activities and performances of credit rating agencies, including nationally
recognized statistical rating organizations, are matters of national public
interest, as credit rating agencies are central to capital formation, investor
confidence, and the efficient performance of the United States economy.</text>
</paragraph><paragraph id="ID0effa692308449c6a687b17717068ce7"><enum>(2)</enum><text>Credit rating
agencies, including nationally recognized statistical rating organizations,
play a critical <quote>gatekeeper</quote> role in the debt market that is
functionally similar to that of securities analysts, who evaluate the quality
of securities in the equity market, and auditors, who review the financial
statements of firms. Such role justifies a similar level of public oversight
and accountability.</text>
</paragraph><paragraph id="ID27962257752e4c0b87d227552e748a6e"><enum>(3)</enum><text>Because credit
rating agencies perform evaluative and analytical services on behalf of
clients, much as other financial <quote>gatekeepers</quote> do, the activities
of credit rating agencies are fundamentally commercial in character and should
be subject to the same standards of liability and oversight as apply to
auditors, securities analysts, and investment bankers.</text>
</paragraph><paragraph id="ID8a32fc80242d45549d6114618bbb23a9"><enum>(4)</enum><text>In
certain activities, particularly in advising arrangers of structured financial
products on potential ratings of such products, credit rating agencies face
conflicts of interest that need to be carefully monitored and that therefore
should be addressed explicitly in legislation in order to give clearer
authority to the Securities and Exchange Commission.</text>
</paragraph><paragraph id="ID2163cac107754ebbba157f19a3c9ea5c"><enum>(5)</enum><text>In
the recent financial crisis, the ratings on structured financial products have
proven to be inaccurate. This inaccuracy contributed significantly to the
mismanagement of risks by financial institutions and investors, which in turn
adversely impacted the health of the economy in the United States and around
the world. Such inaccuracy necessitates increased accountability on the part of
credit rating agencies.</text>
</paragraph></section><section id="id9F434ED5165E459390244D0C9B81F995"><enum>932.</enum><header>Enhanced
regulation, accountability, and transparency of nationally recognized
statistical rating organizations</header><text display-inline="no-display-inline">Section 15E of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–7) is amended—</text>
<paragraph id="ID9b77a48e89ce4e7c9a1ce58b7970d051"><enum>(1)</enum><text>in
subsection (c)—</text>
<subparagraph id="id21EE55FAC1CA4E66BEEF557CE69442CD"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="id5E02BE9ED72A484FAAF8FE598DA51C7E"><enum>(i)</enum><text>in the
second sentence, by inserting <quote>any other provision of this section,
or</quote> after <quote>Notwithstanding</quote>; and</text>
</clause><clause id="id9CCE6A07AE7643D09EDBCD18DB741690"><enum>(ii)</enum><text>by
inserting after the period at the end the following: <quote>Nothing in this
paragraph may be construed to afford a defense against any action or proceeding
brought by the Commission to enforce the antifraud provisions of the securities
laws.</quote>; and</text>
</clause></subparagraph><subparagraph id="IDf3ba637af28042de903907f5d45d07d8"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id45321E2BAB6B430D85035C8351945E59" style="OLC">
<paragraph id="IDe316c768dc3e4395a7e21f2879d2546e"><enum>(3)</enum><header>Internal
controls over processes for determining credit ratings</header>
<subparagraph id="ID1dd74234390447918f94f6f25950cf65"><enum>(A)</enum><header>In
general</header><text>Each nationally recognized statistical rating
organization shall establish, maintain, enforce, and document an effective
internal control structure governing the implementation of and adherence to
policies, procedures, and methodologies for determining credit ratings, taking
into consideration such factors as the Commission may prescribe, by
rule.</text>
</subparagraph><subparagraph id="IDc6b575068e0e40f8bd3785cfa5228c81"><enum>(B)</enum><header>Attestation
requirement</header><text>The Commission shall prescribe rules requiring each
nationally recognized statistical rating organization to submit to the
Commission an annual internal controls report, which shall contain—</text>
<clause id="ID251ac2edc3c74bd1bea3e99cce574f8f"><enum>(i)</enum><text>a
description of the responsibility of the management of the nationally
recognized statistical rating organization in establishing and maintaining an
effective internal control structure under subparagraph (A);</text>
</clause><clause id="IDdc7e4480da9640fdaecfd1088811cfd3"><enum>(ii)</enum><text>an
assessment of the effectiveness of the internal control structure of the
nationally recognized statistical rating organization; and</text>
</clause><clause id="ID5cb1eeacc44942f096c4e43181b9b950"><enum>(iii)</enum><text>the
attestation of the chief executive officer, or equivalent individual, of the
nationally recognized statistical rating
organization.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID1da5cd2ba4fb4566b15481b775325cc5"><enum>(2)</enum><text>in
subsection (d)—</text>
<subparagraph id="ID60c8c6d78d1045a99e50c061638e22f1"><enum>(A)</enum><text>in the subsection
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 id="id4368943243564DBC8F1561089E447317"><enum>(B)</enum><text>by inserting
<quote>fine,</quote> after <quote>censure,</quote> each place that term
appears;</text>
</subparagraph><subparagraph id="id22568690B6F64C0CB1F6CDC135312743"><enum>(C)</enum><text>in paragraph (2),
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
respectively, and adjusting the clause margins accordingly;</text>
</subparagraph><subparagraph id="id870071AC0AFB4F30A3FC7F4CB6BDA6EF"><enum>(D)</enum><text>by redesignating
paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and
adjusting the subparagraph margins accordingly;</text>
</subparagraph><subparagraph id="id0253020B9F944A97924A9186E95C8A31"><enum>(E)</enum><text>in the matter
preceding subparagraph (A), as so redesignated, by striking <quote>The
Commission</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idED23CC65827A4319A30062E8DF580631" style="OLC">
<paragraph id="id7B76B22653B148D88C48254615505810"><enum>(1)</enum><header>In
general</header><text>The
Commission</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDe2b75be656d045b0ade307506f908839"><enum>(F)</enum><text>in subparagraph
(D), as so redesignated, by striking <quote>or</quote> at the end;</text>
</subparagraph><subparagraph id="IDedb35e25ba9a4173881559f2c1b3bfe1"><enum>(G)</enum><text>in subparagraph
(E), as so redesignated, by striking the period at the end and inserting a
semicolon; and</text>
</subparagraph><subparagraph id="ID98557481787e4f6bae640e973c4dbc98"><enum>(H)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0CF96DA27F1049C8BCF3BCA525F28A31" style="OLC">
<subparagraph id="ID69e6882fb3a7426ab02c2aa16b4a086b"><enum>(F)</enum><text>has failed
reasonably to supervise, with a view to preventing a violation of the
securities laws, an individual who commits such a violation, if the individual
is subject to the supervision of that person.</text>
</subparagraph><paragraph id="IDb952363959f946758c7c8c53b306f5be"><enum>(2)</enum><header>Suspension or
revocation for particular class of securities</header>
<subparagraph id="id5B051994EE234948AD0481CDF503BDF7"><enum>(A)</enum><header>In
general</header><text>The Commission may temporarily suspend or permanently
revoke the registration of a nationally recognized statistical rating
organization with respect to a particular class or subclass of securities, if
the Commission finds, on the record after notice and opportunity for hearing,
that the nationally recognized statistical rating organization does not have
adequate financial and managerial resources to consistently produce credit
ratings with integrity.</text>
</subparagraph><subparagraph id="idC27BDD18533741B59C6335E3E7839D8D"><enum>(B)</enum><header>Considerations</header><text>In
making any determination under subparagraph (A), the Commission shall
consider—</text>
<clause id="id1AFBF0F8A3C34476B8B3598304F07ED8"><enum>(i)</enum><text>whether the
nationally recognized statistical rating organization has failed over a
sustained period of time, as determined by the Commission, to produce ratings
that are accurate for that class or subclass of securities; and</text>
</clause><clause id="id1091A31C8A7D4AE0903296247F350E2B"><enum>(ii)</enum><text>such
other factors as the Commission may
determine.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID8ec9c26efd8744cda7297d6a06da5531"><enum>(3)</enum><text>in
subsection (h), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA727CE8E99A9480E811BE31F7D4BC8E7" style="OLC">
<paragraph id="IDc14356cd71bd462395e5ef1d52aa808f"><enum>(3)</enum><header>Separation of
ratings from sales and marketing</header>
<subparagraph id="id7F2DEB683C5C4EAA97D41CB6525AF851"><enum>(A)</enum><header>Rules
required</header><text>The Commission shall issue rules to prevent the sales
and marketing considerations of a nationally recognized statistical rating
organization from influencing the production of ratings by the nationally
recognized statistical rating organization.</text>
</subparagraph><subparagraph id="id4D9D50E2B64D4466B5ECA6A7CF2FE8CD"><enum>(B)</enum><header>Contents of
rules</header><text>The rules issued under subparagraph (A) shall provide
for—</text>
<clause id="id374D3F81958A452B9EA6C63F95F9D927"><enum>(i)</enum><text>exceptions for
small nationally recognized statistical rating organizations with respect to
which the Commission determines that the separation of the production of
ratings and sales and marketing activities is not appropriate; and</text>
</clause><clause id="id51A2B03AAA974244B962A5CF46CE0377"><enum>(ii)</enum><text>suspension or
revocation of the registration of a nationally recognized statistical rating
organization, if the Commission finds, on the record, after notice and
opportunity for a hearing, that—</text>
<subclause id="id08B50EAE38E948A6A670B28D8E25F4EB"><enum>(I)</enum><text>the nationally
recognized statistical rating organization has committed a violation of a rule
issued under this subsection; and</text>
</subclause><subclause id="id6220B104AA7244218427391A7EE193C1"><enum>(II)</enum><text>the violation of
a rule issued under this subsection affected a
rating.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID24daae52ad174d6fa0af374d35371e1e"><enum>(4)</enum><text>in
subsection (j)—</text>
<subparagraph id="id2E2A13B90EE44901BCC6D516E963C556"><enum>(A)</enum><text>by striking
<quote>Each</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id9C1F1A6CE0034B74AF81A4EC9CE86F4B" style="OLC">
<paragraph id="idD1F16A3888B24FF4A32FF0CE9D5DD7F8"><enum>(1)</enum><header>In
general</header><text>Each</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID34e71743a4f34a448b98bac214b2077a"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id14C2C43DC4824CFAAB979E9C7FD18F3A" style="OLC">
<paragraph id="IDf00e5047563046c0bf8ee2298801ca95"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="idF8BA53D5A6EF446A8D0503E9DB543B63"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), an individual
designated under paragraph (1) may not, while serving in the designated
capacity—</text>
<clause id="ID7646430553314c3da0bbdf8ea4fb4dac"><enum>(i)</enum><text>perform credit
ratings;</text>
</clause><clause id="ID46ac7a44defe43a7b50fa177d2e3a0e9"><enum>(ii)</enum><text>participate in
the development of ratings methodologies or models;</text>
</clause><clause id="ID2bc6cebe359644609db7905bc0f88836"><enum>(iii)</enum><text>perform
marketing or sales functions; or</text>
</clause><clause id="IDeef29f7c434c48ea8db0f3e09c1f1772"><enum>(iv)</enum><text>participate in
establishing compensation levels, other than for employees working for that
individual.</text>
</clause></subparagraph><subparagraph id="ID483e71b00c6244169cbd5f0960be8349"><enum>(B)</enum><header>Exception</header><text>The
Commission may exempt a small nationally recognized statistical rating
organization from the limitations under this paragraph, if the Commission finds
that compliance with such limitations would impose an unreasonable burden on
the nationally recognized statistical rating organization.</text>
</subparagraph></paragraph><paragraph id="IDd8c8400093b34c3fab926c9adfb20754"><enum>(3)</enum><header>Other
duties</header><text>Each individual designated under paragraph (1) shall
establish procedures for the receipt, retention, and treatment of—</text>
<subparagraph id="ID3886b6072af54645b9c6849df3ae1570"><enum>(A)</enum><text>complaints
regarding credit ratings, models, methodologies, and compliance with the
securities laws and the policies and procedures developed under this section;
and</text>
</subparagraph><subparagraph id="ID0ed2c503690f461e8cbf6fc06c800254"><enum>(B)</enum><text>confidential,
anonymous complaints by employees or users of credit ratings.</text>
</subparagraph></paragraph><paragraph id="IDfb75a7703dcc4d4a861372f87ac4e38c"><enum>(4)</enum><header>Annual reports
required</header>
<subparagraph id="id7D9213E06846455185306098317E6680"><enum>(A)</enum><header>Annual reports
required</header><text>Each individual designated under paragraph (1) shall
submit to the nationally recognized statistical rating organization an annual
report on the compliance of the nationally recognized statistical rating
organization with the securities laws and the policies and procedures of the
nationally recognized statistical rating organization that includes—</text>
<clause id="idD68B9CD8B4C44393AF5BB97A12D48C60"><enum>(i)</enum><text>a
description of any material changes to the code of ethics and conflict of
interest policies of the nationally recognized statistical rating organization;
and</text>
</clause><clause id="id8200B64AA44F4DEEAE411474C92A09D2"><enum>(ii)</enum><text>a
certification that the report is accurate and complete.</text>
</clause></subparagraph><subparagraph id="idEDA57CE56A474580ADB7ABB206CCC009"><enum>(B)</enum><header>Submission of
reports to the Commission</header><text>Each nationally recognized statistical
rating organization shall file the reports required under subparagraph (A)
together with the financial report that is required to be submitted to the
Commission under this section.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDa63c621691854fd7b85f0bbfbe73842a"><enum>(5)</enum><text>by
striking subsection (p) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id7773CAA71A134EC28C10A576907953C2" style="OLC">
<subsection id="IDc869f9ccf4d6446c9c880841b7b1d4a1"><enum>(p)</enum><header>Regulation of
nationally recognized statistical rating organizations</header>
<paragraph id="ID6cd9d96e58c0422da603a5b876e86026"><enum>(1)</enum><header>Establishment
of Office of Credit Ratings</header>
<subparagraph id="idE1E065E290944E3F97709D3874CB8AF5"><enum>(A)</enum><header>Office
established</header><text>The Commission shall establish within the Commission
an Office of Credit Ratings (referred to in this subsection as the
<quote>Office</quote>) to administer the rules of the Commission—</text>
<clause id="idAAD7BE2885D748CBA4944CC41F029669"><enum>(i)</enum><text>with
respect to the practices of nationally recognized statistical rating
organizations in determining ratings, for the protection of users of credit
ratings and in the public interest;</text>
</clause><clause id="id54AED0F5CA234511B844F0977831DC58"><enum>(ii)</enum><text>to
promote accuracy in credit ratings issued by nationally recognized statistical
rating organizations; and</text>
</clause><clause id="idE4A0E2336F654C458162126E9C5054A6"><enum>(iii)</enum><text>to
ensure that such ratings are not unduly influenced by conflicts of
interest.</text>
</clause></subparagraph><subparagraph id="id0F4307CD8FFB4B718221B0E7B6CACB93"><enum>(B)</enum><header>Director of the
Office</header><text>The head of the Office shall be the Director, who shall
report to the Chairman.</text>
</subparagraph></paragraph><paragraph id="ID64ce1cc7a7b549239c42ff9635895540"><enum>(2)</enum><header>Staffing</header><text>The
Office established under this subsection shall be staffed sufficiently to carry
out fully the requirements of this section. The staff shall include persons
with knowledge of and expertise in corporate, municipal, and structured debt
finance.</text>
</paragraph><paragraph id="ID2441fc542ef247e8a6edfe26159b24fb"><enum>(3)</enum><header>Commission
examinations</header>
<subparagraph id="idC29431B986DD403BBBED289BE99B7F27"><enum>(A)</enum><header>Annual
examinations required</header><text>The Office shall conduct an examination of
each nationally recognized statistical rating organization at least
annually.</text>
</subparagraph><subparagraph id="idA336332918F44B5CB0C030A26641C694"><enum>(B)</enum><header>Conduct of
examinations</header><text>Each examination under subparagraph (A) shall
include a review of—</text>
<clause id="idDF7478C423D444F091FCACCBE5E438C8"><enum>(i)</enum><text>whether the
nationally recognized statistical rating organization conducts business in
accordance with the policies, procedures, and rating methodologies of the
nationally recognized statistical rating organization;</text>
</clause><clause id="idCE1216F970CC4271B3EE1DB98EFD12E7"><enum>(ii)</enum><text>the
management of conflicts of interest by the nationally recognized statistical
rating organization;</text>
</clause><clause id="idA30C2D90AE2A483C873E56124C66BECA"><enum>(iii)</enum><text>implementation
of ethics policies by the nationally recognized statistical rating
organization;</text>
</clause><clause id="idA586F99521F746D38DF25A92FA5F94CD"><enum>(iv)</enum><text>the
internal supervisory controls of the nationally recognized statistical rating
organization;</text>
</clause><clause id="id24E0E89A7DDC4D57955826F9E1FD311A"><enum>(v)</enum><text>the
governance of the nationally recognized statistical rating organization;</text>
</clause><clause id="idC2662EEAFCC84EA599575254678A3451"><enum>(vi)</enum><text>the
activities of the individual designated by the nationally recognized
statistical rating organization under subsection (j)(1);</text>
</clause><clause id="id23206A9CC6694C0C97ACB0B4B1E4918A"><enum>(vii)</enum><text>the
processing of complaints by the nationally recognized statistical rating
organization; and</text>
</clause><clause id="idD06D49A1FD604DDC94136763C9FD930E"><enum>(viii)</enum><text>the policies
of the nationally recognized statistical rating organization governing the
post-employment activities of former staff of the nationally recognized
statistical rating organization.</text>
</clause></subparagraph><subparagraph id="id76A80CE57554460FB0DD9E748CC1DF35"><enum>(C)</enum><header>Inspection
reports</header><text>The Commission shall make available to the public, in an
easily understandable format, an annual report summarizing—</text>
<clause id="idCBE6154A694D486194C858FB80BBDAB6"><enum>(i)</enum><text>the
essential findings of all examinations conducted under subparagraph (A), as
deemed appropriate by the Commission;</text>
</clause><clause id="id5B153E8DB950455FB5DC0984D81B2CA6"><enum>(ii)</enum><text>the
responses by the nationally recognized statistical rating organizations to any
material regulatory deficiencies identified by the Commission under clause (i);
and</text>
</clause><clause id="idA5FC5DF83E66428A9BB217C312A4A6FB"><enum>(iii)</enum><text>whether the
nationally recognized statistical rating organizations have appropriately
addressed the recommendations of the Commission contained in previous reports
under this subparagraph.</text>
</clause></subparagraph></paragraph><paragraph id="IDf370cd0dbb6f47fdaef8a53e4c909913"><enum>(4)</enum><header>Rulemaking
authority</header><text>The Commission shall—</text>
<subparagraph id="IDc9c36b7eecd94831bfed9f568fa26292"><enum>(A)</enum><text>establish, by
rule, fines, and other penalties applicable to any nationally recognized
statistical rating organization that violates the requirements of this
subsection and the rules thereunder; and</text>
</subparagraph><subparagraph id="IDff064a62ac694cecb56add2393b0ceac"><enum>(B)</enum><text>issue such rules
as may be necessary to carry out this subsection.</text>
</subparagraph></paragraph></subsection><subsection id="IDa1474df4561a44ecad5c84c75f159e46"><enum>(q)</enum><header>Transparency of
ratings performance</header>
<paragraph id="IDe740a7fc25db463b992be3a2f70e5a27"><enum>(1)</enum><header>Rulemaking
required</header><text>The Commission shall, by rule, require that each
nationally recognized statistical rating organization publicly disclose
information on the initial credit ratings determined by the nationally
recognized statistical rating organization for each type of obligor, security,
and money market instrument, and any subsequent changes to such credit ratings,
for the purpose of allowing users of credit ratings to evaluate the accuracy of
ratings and compare the performance of ratings by different nationally
recognized statistical rating organizations.</text>
</paragraph><paragraph id="IDde1e5ea2d4724c058e5d214333dbcea8"><enum>(2)</enum><header>Content</header><text>The
rules of the Commission under this subsection shall require, at a minimum,
disclosures that—</text>
<subparagraph id="ID4d12a8efd37b42f7955701608450e61e"><enum>(A)</enum><text>are comparable
among nationally recognized statistical rating organizations, to allow users of
credit ratings to compare the performance of credit ratings across nationally
recognized statistical rating organizations;</text>
</subparagraph><subparagraph id="ID748a5f778f764d3dbe63d4c3bcddc723"><enum>(B)</enum><text>are clear and
informative for investors who use or might use credit ratings;</text>
</subparagraph><subparagraph id="ID18dc34237bb74b8e9d9195bd8171b263"><enum>(C)</enum><text>include
performance information over a range of years and for a variety of types of
credit ratings, including for credit ratings withdrawn by the nationally
recognized statistical rating organization;</text>
</subparagraph><subparagraph id="ID07f0372f174a4af49f004bb5ce0ae21b"><enum>(D)</enum><text>are published and
made freely available by the nationally recognized statistical rating
organization, on an easily accessible portion of its website, and in writing,
when requested; and</text>
</subparagraph><subparagraph id="idF70E676B886845A990D4DA3BE26FE402"><enum>(E)</enum><text>are appropriate
to the business model of a nationally recognized statistical rating
organization.</text>
</subparagraph></paragraph></subsection><subsection id="ID6d6a975f17124315a586f7a9266e173e"><enum>(r)</enum><header>Credit ratings
methodologies</header><text>The Commission shall prescribe rules, for the
protection of investors and in the public interest, with respect to the
procedures and methodologies, including qualitative and quantitative data and
models, used by nationally recognized statistical rating organizations that
require each nationally recognized statistical rating organization—</text>
<paragraph id="ID8e1622681d5141a1b9d69b61f76aea24"><enum>(1)</enum><text>to
ensure that credit ratings are determined using procedures and methodologies,
including qualitative and quantitative data and models, that are—</text>
<subparagraph id="id07BC742D5EEB458C8C2C9C49C777ED12"><enum>(A)</enum><text>approved by the
board of the nationally recognized statistical rating organization, a body
performing a function similar to that of a board, or the senior credit officer
of the nationally recognized statistical rating organization; and</text>
</subparagraph><subparagraph id="id57F01D99183E456D8CAE738D2900F1FD"><enum>(B)</enum><text>in accordance
with the policies and procedures of the nationally recognized statistical
rating organization for the development and modification of credit rating
procedures and methodologies;</text>
</subparagraph></paragraph><paragraph id="ID6170bb8aba2b45f9ab2dca24b27cbad3"><enum>(2)</enum><text>to
ensure that when material changes to credit rating procedures and methodologies
(including changes to qualitative and quantitative data and models) are made,
that—</text>
<subparagraph id="idD5BC87DCF6524A058542FAA65E6E1FC6"><enum>(A)</enum><text>the changes are
applied consistently to all credit ratings to which the changed procedures and
methodologies apply;</text>
</subparagraph><subparagraph id="id5468DB11807C4D738EF3034BFAE732A8"><enum>(B)</enum><text>to the extent
that changes are made to credit rating surveillance procedures and
methodologies, the changes are applied to then-current credit ratings by the
nationally recognized statistical rating organization within a reasonable time
period determined by the Commission, by rule; and</text>
</subparagraph><subparagraph id="id1F0107DAED64426CAF4D7CD4B1F52D26"><enum>(C)</enum><text>the nationally
recognized statistical rating organization publicly discloses the reason for
the change; and</text>
</subparagraph></paragraph><paragraph id="IDa0b87a2f096f4cc995e55cfe78947940"><enum>(3)</enum><text>to
notify users of credit ratings—</text>
<subparagraph id="idD9C1858955784EA4AD9747AC0898C4EF"><enum>(A)</enum><text>of the version of
a procedure or methodology, including the qualitative methodology or
quantitative inputs, used with respect to a particular credit rating;</text>
</subparagraph><subparagraph id="ID45df4428ffc24693b9152e904e65711d"><enum>(B)</enum><text>when a material
change is made to a procedure or methodology, including to a qualitative model
or quantitative inputs;</text>
</subparagraph><subparagraph id="id27FAF92F2F634619A1C5A18CCC2987E2"><enum>(C)</enum><text>when a
significant error is identified in a procedure or methodology, including a
qualitative or quantitative model, that may result in credit rating actions;
and</text>
</subparagraph><subparagraph id="id2DD6FD1549064500A10E138DF8A3CFD4"><enum>(D)</enum><text>of the likelihood
of a material change described in subparagraph (B) resulting in a change in
current credit ratings.</text>
</subparagraph></paragraph></subsection><subsection id="IDa73640687e884050bd5f971d57a3eab9"><enum>(s)</enum><header>Transparency of
credit rating methodologies and information reviewed</header>
<paragraph id="ID0a83c7bd81394e40890b0d335db71e45"><enum>(1)</enum><header>Form for
disclosures</header><text>The Commission shall require, by rule, each
nationally recognized statistical rating organization to prescribe a form to
accompany the publication of each credit rating that discloses—</text>
<subparagraph id="ID30e7591025be4c23814c711bb27b4672"><enum>(A)</enum><text>information
relating to—</text>
<clause id="id604ECD5880724447B328B7880A416028"><enum>(i)</enum><text>the
assumptions underlying the credit rating procedures and methodologies;</text>
</clause><clause id="id8635C3E35DC44AFDB99408A0701BAE5C"><enum>(ii)</enum><text>the
data that was relied on to determine the credit rating; and</text>
</clause><clause id="idE2AE8AEA6A414396AAE8DA447BD0C7DC"><enum>(iii)</enum><text>if
applicable, how the nationally recognized statistical rating organization used
servicer or remittance reports, and with what frequency, to conduct
surveillance of the credit rating; and</text>
</clause></subparagraph><subparagraph id="IDc7537e8d47014380b4ce4d8178e0d446"><enum>(B)</enum><text>information that
can be used by investors and other users of credit ratings to better understand
credit ratings in each class of credit rating issued by the nationally
recognized statistical rating organization.</text>
</subparagraph></paragraph><paragraph id="IDd52c6512190a43c6b81fa8e002a93b01"><enum>(2)</enum><header>Format</header><text>The
form developed under paragraph (1) shall—</text>
<subparagraph id="ID858b107b554947f69ef258b424eca395"><enum>(A)</enum><text>be easy to use
and helpful for users of credit ratings to understand the information contained
in the report;</text>
</subparagraph><subparagraph id="IDa659dceab1474c4c9faf6368971396b9"><enum>(B)</enum><text>require the
nationally recognized statistical rating organization to provide the content
described in paragraph (3)(B) in a manner that is directly comparable across
types of securities; and</text>
</subparagraph><subparagraph id="id894202DCEB7B454DA089F833F4172E75"><enum>(C)</enum><text>be made readily
available to users of credit ratings, in electronic or paper form, as the
Commission may, by rule, determine.</text>
</subparagraph></paragraph><paragraph id="ID44f044119704434da8a82cf9b0cca59c"><enum>(3)</enum><header>Content of
form</header>
<subparagraph id="id02ADC5C2E0484D72B6CB7D76A0566707"><enum>(A)</enum><header>Qualitative
content</header><text>Each nationally recognized statistical rating
organization shall disclose on the form developed under paragraph (1)—</text>
<clause id="idC364D9B6AECB431C820110EE436F78C1"><enum>(i)</enum><text>the
credit ratings produced by the nationally recognized statistical rating
organization;</text>
</clause><clause id="IDe8e03f75354444119c1e92c72d823160"><enum>(ii)</enum><text>the
main assumptions and principles used in constructing procedures and
methodologies, including qualitative methodologies and quantitative inputs and
assumptions about the correlation of defaults across obligors used in rating
structured products;</text>
</clause><clause id="ID3b03735c468d4ddaa0abd93943938869"><enum>(iii)</enum><text>the
potential limitations of the credit ratings, and the types of risks excluded
from the credit ratings that the nationally recognized statistical rating
organization does not comment on, including liquidity, market, and other
risks;</text>
</clause><clause id="IDcc5dad73c256495ebd8f1604236c5448"><enum>(iv)</enum><text>information on
the uncertainty of the credit rating, including—</text>
<subclause id="id5AD44F29438F456E9520DAF07FED6C94"><enum>(I)</enum><text>information on
the reliability, accuracy, and quality of the data relied on in determining the
credit rating; and</text>
</subclause><subclause id="id21311324D8384BB7B071727C68061F14"><enum>(II)</enum><text>a
statement relating to the extent to which data essential to the determination
of the credit rating were reliable or limited, including—</text>
<item id="idDA6A1B4359884107AEF277012820AB93"><enum>(aa)</enum><text>any
limits on the scope of historical data; and</text>
</item><item id="id8E96048D78F3487AA826BBA0BE738F41"><enum>(bb)</enum><text>any
limits in accessibility to certain documents or other types of information that
would have better informed the credit rating;</text>
</item></subclause></clause><clause id="IDbb400cf3d94843aca322d5cc9cd7071c"><enum>(v)</enum><text>whether and to
what extent third party due diligence services have been used by the nationally
recognized statistical rating organization, a description of the information
that such third party reviewed in conducting due diligence services, and a
description of the findings or conclusions of such third party;</text>
</clause><clause id="IDb59d54872fe44b01a6a292cb790c56a1"><enum>(vi)</enum><text>a
description of the data about any obligor, issuer, security, or money market
instrument that were relied upon for the purpose of determining the credit
rating;</text>
</clause><clause id="ID4427209061344cd59b188935db7360c7"><enum>(vii)</enum><text>a
statement containing an overall assessment of the quality of information
available and considered in producing a rating for an obligor, security, or
money market instrument, in relation to the quality of information available to
the nationally recognized statistical rating organization in rating similar
issuances;</text>
</clause><clause id="id10F5C61F79F74CBBB4305A2B32355057"><enum>(viii)</enum><text>information
relating to conflicts of interest of the nationally recognized statistical
rating organization; and</text>
</clause><clause id="ID019f7c83790848baadd1d1a0a6fdb777"><enum>(ix)</enum><text>such
additional information as the Commission may require.</text>
</clause></subparagraph><subparagraph id="ID308151e934de4e1c9ff0746468f107ec"><enum>(B)</enum><header>Quantitative
content</header><text>Each nationally recognized statistical rating
organization shall disclose on the form developed under this subsection—</text>
<clause id="ID071faf53e11d4da19dbcf3e645d23c3e"><enum>(i)</enum><text>an
explanation or measure of the potential volatility of the credit rating,
including—</text>
<subclause id="idF74AE9F6A6454B35A0A70413B47A2144"><enum>(I)</enum><text>any factors that
might lead to a change in the credit ratings; and</text>
</subclause><subclause id="idE6EFF21B557E4C0ABC40830E3315F83C"><enum>(II)</enum><text>the magnitude of
the change that a user can expect under different market conditions;</text>
</subclause></clause><clause id="IDc51e695b0a91421f914262b0cf8adc16"><enum>(ii)</enum><text>information on
the content of the rating, including—</text>
<subclause id="ID86fc8ec8adfa462482943a9a4168ef50"><enum>(I)</enum><text>the historical
performance of the rating; and</text>
</subclause><subclause id="ID1300193f51b44c9fa9edc5c665961262"><enum>(II)</enum><text>the expected
probability of default and the expected loss in the event of default;</text>
</subclause></clause><clause id="IDf75bbf01e2f4460ca474a56ec842bed9"><enum>(iii)</enum><text>information on
the sensitivity of the rating to assumptions made by the nationally recognized
statistical rating organization; and</text>
</clause><clause id="ID1c5de58df5314ed7baaa5b96c5ea9aee"><enum>(iv)</enum><text>such
additional information as may be required by the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="ID74f7a8c442154d86a4c3a2016d33ace2"><enum>(4)</enum><header>Due diligence
services for asset-backed securities</header>
<subparagraph id="id1223657E1B50426BB6EA0B3637796ECE"><enum>(A)</enum><header>Findings</header><text>The
issuer or underwriter of any asset-backed security shall make publicly
available the findings and conclusions of any third-party due diligence report
obtained by the issuer or underwriter.</text>
</subparagraph><subparagraph id="ID64c8b4d49ed24612a27dafd0f076c20f"><enum>(B)</enum><header>Certification
required</header><text>In any case in which third-party due diligence services
are employed by a nationally recognized statistical rating organization, an
issuer, or an underwriter, the person providing the due diligence services
shall provide to any nationally recognized statistical rating organization that
produces a rating to which such services relate, written certification, as
provided in subparagraph (C).</text>
</subparagraph><subparagraph id="IDcc6060b0ee524edca51c43479fe52d3b"><enum>(C)</enum><header>Format and
content</header><text>The Commission shall establish the appropriate format and
content for the written certifications required under subparagraph (B), to
ensure that providers of due diligence services have conducted a thorough
review of data, documentation, and other relevant information necessary for a
nationally recognized statistical rating organization to provide an accurate
rating.</text>
</subparagraph><subparagraph id="ID9720aa4ffe584529a0b0bdafca5536cc"><enum>(D)</enum><header>Disclosure of
certification</header><text>The Commission shall adopt rules requiring a
nationally recognized statistical rating organization, at the time at which the
nationally recognized statistical rating organization produces a rating, to
disclose the certification described in subparagraph (B) to the public in a
manner that allows the public to determine the adequacy and level of due
diligence services provided by a third party.</text>
</subparagraph></paragraph></subsection><subsection id="idB953E6563F9C4C75A3E66FB491BA0872"><enum>(t)</enum><header>Corporate
governance, organization, and management of conflicts of interest</header>
<paragraph id="IDcb0de3e16d864b57a6bec22a20a2b58d"><enum>(1)</enum><header>Board of
directors</header><text>Each nationally recognized statistical rating
organization shall have a board of directors.</text>
</paragraph><paragraph id="ID2209c10f8e104efe941d2ef5aa3cca2c"><enum>(2)</enum><header>Independent
directors</header>
<subparagraph id="id725182EEB0814F6E9C343A60CAF53A74"><enum>(A)</enum><header>In
general</header><text>At least ½ of the board of directors, but not fewer than
2 of the members thereof, shall be independent of the nationally recognized
statistical rating agency. A portion of the independent directors shall include
users of ratings from a nationally recognized statistical rating
organization.</text>
</subparagraph><subparagraph id="idA2027C88AC93458A85877DD20CB28347"><enum>(B)</enum><header>Independence
determination</header><text>In order to be considered independent for purposes
of this subsection, a member of the board of directors of a nationally
recognized statistical rating organization—</text>
<clause id="id589DE4303D17411CA02422B2478D2828"><enum>(i)</enum><text>may
not, other than in his or her capacity as a member of the board of directors or
any committee thereof—</text>
<subclause id="IDeb52cdefd46a452bb43fa77b24f3ee4a"><enum>(I)</enum><text>accept any
consulting, advisory, or other compensatory fee from the nationally recognized
statistical rating organization; or</text>
</subclause><subclause id="ID9d0e8eb5dd5e46fc971e71fc47fa32d4"><enum>(II)</enum><text>be a person
associated with the nationally recognized statistical rating organization or
with any affiliated company thereof; and</text>
</subclause></clause><clause id="IDe41c09633a464b7dae15006e7d62a130"><enum>(ii)</enum><text>shall be
disqualified from any deliberation involving a specific rating in which the
independent board member has a financial interest in the outcome of the
rating.</text>
</clause></subparagraph><subparagraph id="ID40442314d12b4e1ab559fe2f9f38657e"><enum>(C)</enum><header>Compensation
and term</header><text>The compensation of the independent members of the board
of directors of a nationally recognized statistical rating organization shall
not be linked to the business performance of the nationally recognized
statistical rating organization, and shall be arranged so as to ensure the
independence of their judgment. The term of office of the independent directors
shall be for a pre-agreed fixed period, not to exceed 5 years, and shall not be
renewable.</text>
</subparagraph></paragraph><paragraph id="ID794c916cb43d4dfe9a24520167539f65"><enum>(3)</enum><header>Duties of board
of directors</header><text>In addition to the overall responsibilities of the
board of directors, the board shall oversee—</text>
<subparagraph id="ID3ed7b18a92114d5288d6b8bf59cd3fbd"><enum>(A)</enum><text>the
establishment, maintenance, and enforcement of policies and procedures for
determining credit ratings;</text>
</subparagraph><subparagraph id="ID8208477d2acb4ebb969630d1fb565bfb"><enum>(B)</enum><text>the
establishment, maintenance, and enforcement of policies and procedures to
address, manage, and disclose any conflicts of interest;</text>
</subparagraph><subparagraph id="ID7d6fd8e7a72646f2bc5cf1a98710f5b7"><enum>(C)</enum><text>the effectiveness
of the internal control system with respect to policies and procedures for
determining credit ratings; and</text>
</subparagraph><subparagraph id="IDfc17143160ab409d8ab41e968b0eeafb"><enum>(D)</enum><text>the compensation
and promotion policies and practices of the nationally recognized statistical
rating organization.</text>
</subparagraph></paragraph><paragraph id="ID29cc32c8d8024210bd05a3fddecad101"><enum>(4)</enum><header>Treatment of
nrsro subsidiaries</header><text>If a nationally recognized statistical rating
organization is a subsidiary of a parent entity, the board of the directors of
the parent entity may satisfy the requirements of this subsection by assigning
to a committee of such board of directors the duties under paragraph (3),
if—</text>
<subparagraph id="id63E35A75CA764F22A49F388D02857730"><enum>(A)</enum><text>at least ½ of the
members of the committee (including the chairperson of the committee) are
independent, as defined in this section; and</text>
</subparagraph><subparagraph id="idDD0A64B1424A4FB6B3E6CF1B36AF9EA5"><enum>(B)</enum><text>at least 1 member
of the committee is a user of ratings from a nationally recognized statistical
rating organization.</text>
</subparagraph></paragraph><paragraph id="idDC8B33474BB649808F5C4F82BF766FFE"><enum>(5)</enum><header>Exception
authority</header><text>If the Commission finds that compliance with the
provisions of this subsection present an unreasonable burden on a small
nationally recognized statistical rating organization, the Commission may
permit the nationally recognized statistical rating organization to delegate
such responsibilities to a committee that includes at least one individual who
is a user of ratings of a nationally recognized statistical rating
organization.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID9c3182e9b72e4963b7a4411f56a7da82"><enum>933.</enum><header>State of mind
in private actions</header>
<subsection id="id28749ED307F0495CB066A77CB805CCCE"><enum>(a)</enum><header>Accountability</header><text>Section
15E(m) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–7(m)) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id5C656509B4344DA797B2883AF0000D60" style="OLC">
<subsection id="id8FEC4DD075F746FD90485416AEBE3B63"><enum>(m)</enum><header>Accountability</header>
<paragraph id="id2AC0B61CABF54DB39F402C89177C28B0"><enum>(1)</enum><header>In
general</header><text>The enforcement and penalty provisions of this title
shall apply to statements made by a credit rating agency in the same manner and
to the same extent as such provisions apply to statements made by a registered
public accounting firm or a securities analyst under the securities laws, and
such statements shall not be deemed forward-looking statements for the purposes
of section 21E.</text>
</paragraph><paragraph id="idD328D363DF7B4E2894F8F2657CC48D7B"><enum>(2)</enum><header>Rulemaking</header><text>The
Commission shall issue such rules as may be necessary to carry out this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD718E8FE89B64AF2BAF735B87714ECB0"><enum>(b)</enum><header>State of
mind</header><text display-inline="yes-display-inline">Section 21D(b)(2) of the
Securities Exchange Act of 1934 (15 U.S.C. 78u–4(b)(2)) is amended—</text>
<paragraph id="idEAB517C4825944C4870FB33B0C824EEC"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>In any</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5CEBAC2A4EBA490799CBE8A31F5CA278" style="OLC">
<subparagraph id="idE5411165FF08423BB556A181AC1C5CFA"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), in
any</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id9CC08DF9955F4E90930C87F0959CDB2C"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id091E2D718EEA4CB8990A9675C84EEF11" style="OLC">
<subparagraph id="idE0BC8759FE5A499DBB02819797A93FCC"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">In the case of an action for money damages
brought against a credit rating agency or a controlling person under this
title, it shall be sufficient, for purposes of pleading any required state of
mind in relation to such action, that the complaint state with particularity
facts giving rise to a strong inference that the credit rating agency knowingly
or recklessly failed—</text>
<clause id="id5B1BF652AD4B4696A428D1A27D115339"><enum>(i)</enum><text display-inline="yes-display-inline">to conduct a reasonable investigation of
the rated security with respect to the factual elements relied upon by its own
methodology for evaluating credit risk; or</text>
</clause><clause id="idD5661F1D72FE480C8E591CA514D8A776"><enum>(ii)</enum><text display-inline="yes-display-inline">to obtain reasonable verification of such
factual elements (which verification may be based on a sampling technique that
does not amount to an audit) from other sources that the credit rating agency
considered to be competent and that were independent of the issuer and
underwriter.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID45dd154a02d647f29da673628b453982"><enum>934.</enum><header>Referring tips
to law enforcement or regulatory authorities</header><text display-inline="no-display-inline">Section 15E of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–7), as amended by this subtitle, is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1A8BFC9A40D846309A050DF4A178A595" style="OLC">
<subsection id="ID1f4f4724dd7a49b3b39aca1902c1351a"><enum>(u)</enum><header>Duty To report
tips alleging material violations of law</header>
<paragraph id="id533515C33DE349F692797E8D411CED73"><enum>(1)</enum><header>Duty to
report</header><text>Each nationally recognized statistical rating organization
shall refer to the appropriate law enforcement or regulatory authorities any
information that the nationally recognized statistical rating organization
receives from a third party and finds credible that alleges that an issuer of
securities rated by the nationally recognized statistical rating organization
has committed or is committing a material violation of law that has not been
adjudicated by a Federal or State court.</text>
</paragraph><paragraph id="idB0C567CA04634713A8254868E0DF7526"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in paragraph (1) may be construed to require
a nationally recognized statistical rating organization to verify the accuracy
of the information described in paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID1a1bb7fce92f4d739cdd1d20dfeea0db"><enum>935.</enum><header>Consideration
of information from sources other than the issuer in rating
decisions</header><text display-inline="no-display-inline">Section 15E of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–7), as amended by this subtitle,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7854F6923D1B45AFB7B56E81A699B91C" style="OLC">
<subsection id="ID8c0b59f22f0d481aa32fc6d2d9ee37f5"><enum>(v)</enum><header>Information
from sources other than the issuer</header><text>In producing a credit rating,
a nationally recognized statistical rating organization shall consider
information about an issuer that the nationally recognized statistical rating
organization has, or receives from a source other than the issuer, that the
nationally recognized statistical rating organization finds credible and
potentially significant to a rating
decision.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="ID7638d55f75e148dfa5c7a1de7765886e"><enum>936.</enum><header>Qualification
standards for credit rating analysts</header><text display-inline="no-display-inline">Not later than 1 year after the date of
enactment of this Act, the Commission shall issue rules that are reasonably
designed to ensure that any person employed by a nationally recognized
statistical rating organization to perform credit ratings—</text>
<paragraph id="id00ADA316AE4744A7828AC0CD7BA95890"><enum>(1)</enum><text display-inline="yes-display-inline">meets standards of training, experience,
and competence necessary to produce accurate ratings for the categories of
issuers whose securities the person rates; and</text>
</paragraph><paragraph id="idAA2846553F134D70AD41FD80F89A9469"><enum>(2)</enum><text display-inline="yes-display-inline">is tested for knowledge of the credit
rating process.</text>
</paragraph></section><section id="IDc8f74a7fe81c4242995097c3834225e6"><enum>937.</enum><header>Timing of
regulations</header><text display-inline="no-display-inline">Unless otherwise
specifically provided in this subtitle, the Commission shall issue final
regulations, as required by this subtitle and the amendments made by this
subtitle, not later than 1 year after the date of enactment of this Act.</text>
</section><section id="id61B14A530C5D4297B277D27702B308AA"><enum>938.</enum><header>Universal
ratings symbols</header>
<subsection id="id0D2D4E749F454BAE9AB11065DC394654"><enum>(a)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">The Commission shall require, by rule, each
nationally recognized statistical rating organization to establish, maintain,
and enforce written policies and procedures that—</text>
<paragraph id="id3A985D00390B4E0A93A3B14C87208738"><enum>(1)</enum><text display-inline="yes-display-inline">assess the probability that an issuer of a
security or money market instrument will default, fail to make timely payments,
or otherwise not make payments to investors in accordance with the terms of the
security or money market instrument;</text>
</paragraph><paragraph id="idBEED85E6C0924A40A0C1759F9DEE2C8D"><enum>(2)</enum><text>clearly define
and disclose the meaning of any symbol used by the nationally recognized
statistical rating organization to denote a credit rating; and</text>
</paragraph><paragraph id="idD3D783B06B9D465991FEF68734D5FEF5"><enum>(3)</enum><text>apply any symbol
described in paragraph (2) in a manner that is consistent for all types of
securities and money market instruments for which the symbol is used.</text>
</paragraph></subsection><subsection id="id660A8FD91421480EA75D26A1F14E81C0"><enum>(b)</enum><header>Rule of
construction</header><text>Nothing in this section shall prohibit a nationally
recognized statistical rating organization from using distinct sets of symbols
to denote credit ratings for different types of securities or money market
instruments.</text>
</subsection></section><section id="id3B95BE0DF03E4598B51A5D439A0183D7"><enum>939.</enum><header>Government
Accountability Office study and Federal agency review of required uses of
nationally recognized statistical rating organization ratings</header>
<subsection id="id22000EF984BF4E18813220834F5438DF"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study of the scope of
provisions of Federal and State laws and regulations with respect to the
regulation of securities markets, banking, insurance, and other areas that
require the use of ratings issued by nationally recognized statistical rating
organizations (in this section referred to as the <quote>ratings
requirements</quote>).</text>
</subsection><subsection id="id78DFC7B4862F40649C287963602BC4B3"><enum>(b)</enum><header>Subjects for
evaluation; process of evaluation</header>
<paragraph id="id4CB4CD1EE4A24C71A5D8451ED8B52260"><enum>(1)</enum><header>Subjects for
evaluation</header><text>In conducting the study under subsection (a), the
Comptroller General of the United States shall evaluate—</text>
<subparagraph id="id666C108A8BBC4AAAB32E3E7EF2B36C7E"><enum>(A)</enum><text>the necessity for
and purpose of ratings requirements;</text>
</subparagraph><subparagraph id="id89DB2CC6A4F34DDF979F99D29D528BFE"><enum>(B)</enum><text>which ratings
requirements, if any, could be removed with minimal disruption to the financial
markets;</text>
</subparagraph><subparagraph id="id472B2ADC9D8E431A913964C67B4D5C39"><enum>(C)</enum><text>the potential
impact on the financial markets and on investors if the ratings requirements
identified under subparagraph (B) were rescinded; and</text>
</subparagraph><subparagraph id="id0C3A173440964E61A1FDB75788CA9340"><enum>(D)</enum><text>whether the
financial markets and investors would benefit from the rescission of such
ratings requirements.</text>
</subparagraph></paragraph><paragraph id="id1860B4D8F4C04E81A26F28480B5C111C"><enum>(2)</enum><header>Process of
evaluation</header><text>In conducting the study under subsection (a), the
Comptroller General of the United States shall research and take into
consideration the views of—</text>
<subparagraph id="idA8DA7ACD2376491DB31F80944BC499FB"><enum>(A)</enum><text>the Federal
financial regulatory agencies;</text>
</subparagraph><subparagraph id="idFE997680106F4657AADB0E75E256FB00"><enum>(B)</enum><text>hedge
funds;</text>
</subparagraph><subparagraph id="idD7DF11C91D2B42CF9366D2D341C6AB2C"><enum>(C)</enum><text>banks;</text>
</subparagraph><subparagraph id="idDD2B5B9255C845C0A09BBA79D46BA5C2"><enum>(D)</enum><text>brokerage
firms;</text>
</subparagraph><subparagraph id="id3A0B18532067455097056076AB45833A"><enum>(E)</enum><text>mutual
funds;</text>
</subparagraph><subparagraph id="idA152AAAC63CD42FEBB2B190745E9D575"><enum>(F)</enum><text>pension funds;
and</text>
</subparagraph><subparagraph id="idDFE090EDB5C8436F934155AC1B1E8B08"><enum>(G)</enum><text>all other
interested parties.</text>
</subparagraph></paragraph></subsection><subsection id="idB850949902E24D2C91946FC27CAEE6B3"><enum>(c)</enum><header>Report and
recommendations</header><text>Not later than 2 years after the date of
enactment of this Act, the Comptroller General of the United States shall
submit to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives a
report on the results of the study conducted under subsection (a), including
recommendations, if any, on—</text>
<paragraph id="idBFF8FAC74D7C47C384348110728F6EF7"><enum>(1)</enum><text>which ratings
requirements, if any, could be removed with minimal disruption to the markets;
and</text>
</paragraph><paragraph id="idFAD0C0BCE9DF45E5BB5254109780D4E5"><enum>(2)</enum><text>whether the
financial markets and investors would benefit from the rescission of the
ratings requirements identified under paragraph (1).</text>
</paragraph></subsection><subsection id="id63725E24FF9344979696448DD7AAC05B"><enum>(d)</enum><header>Federal agency
review of ratings requirements</header>
<paragraph id="ID4b6ea3ad93774792963082f0c4bcb71c"><enum>(1)</enum><header>Review</header><text>Each
covered Federal agency shall review—</text>
<subparagraph id="ID856798ccaf6b4c4895d63d7612b12e99"><enum>(A)</enum><text>any regulation of
the covered Federal agency that requires the use of an assessment of the credit
worthiness of a security or money market instrument;</text>
</subparagraph><subparagraph id="ID6fd427badd5c4a1e8e0fe4004b55ff6b"><enum>(B)</enum><text>any other
reference to credit ratings or requirement relating to credit ratings in a
regulation of the covered Federal agency; and</text>
</subparagraph><subparagraph id="id87963837EF8F4EAA922B41B2C4896EA5"><enum>(C)</enum><text>alternative
standards of creditworthiness that are based on market-generated indicators,
including yield spreads, bond prices, and credit default swap spreads.</text>
</subparagraph></paragraph><paragraph id="ID9f6da3440af847578068c06993ee7482"><enum>(2)</enum><header>Modifications
required</header><text>Except as provided in paragraph (3), each covered
Federal agency shall modify any regulation identified under paragraph
(1)—</text>
<subparagraph id="id686ABFCA32B34453BB89B102BBC6433C"><enum>(A)</enum><text>to remove any
reference to credit ratings or a credit ratings requirement in the regulation;
and</text>
</subparagraph><subparagraph id="idAA6B6E7FD4204558811D08677B65C7D0"><enum>(B)</enum><text>to amend the
regulation to require the use of a standard of credit worthiness that—</text>
<clause id="idF6D4DEA4FE4C46F08A4B79E8293364DF"><enum>(i)</enum><text>is not
related to credit ratings; and</text>
</clause><clause id="idD4B06CE6CACD4177A133ED7B9888A22A"><enum>(ii)</enum><text>the
covered Federal agency determines appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="ID6b46c174d047472eb2fd784ca83a9e2c"><enum>(3)</enum><header>Exception</header><text>A
covered Federal agency may elect not to amend a regulation identified under
paragraph (1), if the covered Federal agency determines that—</text>
<subparagraph id="IDf9846230aba246879d0bac935a71ff31"><enum>(A)</enum><text>there is no
reasonable alternative standard of credit worthiness that could replace a
credit rating for purposes of the regulation; and</text>
</subparagraph><subparagraph id="ID51d2f07a53b44acf86c44054002a69bf"><enum>(B)</enum><text>an amendment to
the regulation would be inconsistent with the purposes of the statute that
authorized the regulation and not in the public interest.</text>
</subparagraph></paragraph><paragraph id="IDe3e50915910a41ea8ec1de9dd4b1bbaf"><enum>(4)</enum><header>Report</header><text>Not
later than 1 year after the date on which the Comptroller General submits the
report required under subsection (c), each covered Federal agency shall submit
to Congress a report that contains—</text>
<subparagraph id="idCA992B85634C4C5E8B82446F87EAF771"><enum>(A)</enum><text>a
description of any amendment under paragraph (2); and</text>
</subparagraph><subparagraph id="id466B2F62B3FE469C9941DCF614D7B7AC"><enum>(B)</enum><text>an explanation of
any determination under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="IDffcf7fffc6e84edba42482b3d5c41022"><enum>(5)</enum><header>Definition</header><text>In
this subsection, the term <term>covered Federal agency</term> means—</text>
<subparagraph id="IDa51c2551467f4e559521b4a49933edae"><enum>(A)</enum><text>the
Commission;</text>
</subparagraph><subparagraph id="IDdfa96bb688a94cbe8407bc78dd5380f2"><enum>(B)</enum><text>the
Corporation;</text>
</subparagraph><subparagraph commented="no" id="IDb04802174bc24c87b2535753647afa5c"><enum>(C)</enum><text>the Office of the
Comptroller of the Currency;</text>
</subparagraph><subparagraph id="ID6b3ec87d50ae4891909661ba5f02cfde"><enum>(D)</enum><text>the Board of
Governors;</text>
</subparagraph><subparagraph id="ID909aab4a3f9d41ec978e5b68ac77cd11"><enum>(E)</enum><text>the National
Credit Union Administration; and</text>
</subparagraph><subparagraph id="IDaa758352f9414ec8a8ff0aca8d0a0e48"><enum>(F)</enum><text>the Federal
Housing Finance Agency.</text>
</subparagraph></paragraph></subsection></section><section id="id6E87C868538B4D0D86D8D5BA097B8046"><enum>939A.</enum><header>Securities
and Exchange Commission study on strengthening credit rating agency
independence</header>
<subsection id="idB27FD9DD8D024E40A4AE8E5BDE23B62D"><enum>(a)</enum><header>Study</header><text>The
Commission shall conduct a study of—</text>
<paragraph id="idA986FE6A358A40EC9CB3EC351292FE7C"><enum>(1)</enum><text>the
independence of nationally recognized statistical rating organizations;
and</text>
</paragraph><paragraph id="id8CFB42D84B5F4A7E87E31E9D1F157A4C"><enum>(2)</enum><text>how
the independence of nationally recognized statistical rating organizations
affects the ratings issued by the nationally recognized statistical rating
organizations.</text>
</paragraph></subsection><subsection id="id8A40FA148AAD4C2BB0A9A17DE9BAD788"><enum>(b)</enum><header>Subjects for
evaluation</header><text>In conducting the study under subsection (a), the
Commission shall evaluate—</text>
<paragraph id="id616C8991CB5844329BB9F294BCDC9C5C"><enum>(1)</enum><text>the
management of conflicts of interest raised by a nationally recognized
statistical rating organization providing other services, including risk
management advisory services, ancillary assistance, or consulting
services;</text>
</paragraph><paragraph id="idCACEBABED6C24C65BCB71DDED23A4385"><enum>(2)</enum><text>the
potential impact of rules prohibiting a nationally recognized statistical
rating organization that provides a rating to an issuer from providing other
services to the issuer; and</text>
</paragraph><paragraph id="id7ADE00AFA4754CCCA7127E08B304B231"><enum>(3)</enum><text>any
other issue relating to nationally recognized statistical rating organizations,
as the Chairman of the Commission determines is appropriate.</text>
</paragraph></subsection><subsection id="idBB15FB27D45E41BC9AC9F43C725D147A"><enum>(c)</enum><header>Report</header><text>Not
later than 3 years after the date of enactment of this Act, the Chairman of the
Commission shall submit to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study conducted under subsection
(a), including recommendations, if any, for improving the integrity of ratings
issued by nationally recognized statistical rating organizations.</text>
</subsection></section><section id="idDD0536722DE2474080FF310EF4BB2D73"><enum>939B.</enum><header>Government
Accountability Office study on alternative business models</header>
<subsection id="idC7613D37E1AA4ABA8011CDEF113B01E5"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study on alternative
means for compensating nationally recognized statistical rating organizations
in order to create incentives for nationally recognized statistical rating
organizations to provide more accurate credit ratings, including any statutory
changes that would be required to facilitate the use of an alternative means of
compensation.</text>
</subsection><subsection id="idE583DFDF86964CE0815882B90F87FB20"><enum>(b)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study conducted under subsection
(a), including recommendations, if any, for providing incentives to credit
rating agencies to improve the credit rating process.</text>
</subsection></section><section id="id7AD92F7CE4F94BCD81D9D8A28D6B8DB0"><enum>939C.</enum><header>Government
Accountability Office study on the creation of an independent professional
analyst organization</header>
<subsection id="id165E2937C31B49008B0060423FFD3EE3"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study on the
feasibility and merits of creating an independent professional organization for
rating analysts employed by nationally recognized statistical rating
organizations that would be responsible for—</text>
<paragraph id="id78F5406861EB4FE19705AD3B7F1D6242"><enum>(1)</enum><text>establishing
independent standards for governing the profession of rating analysts;</text>
</paragraph><paragraph id="id3D3DA43C69F54C57A8F22B43F1D60A1B"><enum>(2)</enum><text>establishing a
code of ethical conduct; and</text>
</paragraph><paragraph id="id782A8174352D4DAC9F9D2BEA7CE1D2D4"><enum>(3)</enum><text>overseeing the
profession of rating analysts.</text>
</paragraph></subsection><subsection id="id910E906E8E954BE59F6C66023C289665"><enum>(b)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study conducted under subsection
(a).</text>
</subsection></section></subtitle><subtitle id="id3234CF1457C1406AB6509512C7B25ACA"><enum>D</enum><header>Improvements to
the Asset-Backed Securitization Process</header>
<section id="idDDF943AE74B74DC0BFB321AF04545DBA"><enum>941.</enum><header>Regulation of
credit risk retention</header>
<subsection id="id48D73E755D08464CA902427E9F28BEDE"><enum>(a)</enum><header>Definition of
asset-backed security</header><text display-inline="yes-display-inline">Section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4E00749B960E46988F16E18CA0263327" style="OLC">
<paragraph id="id3F01F3DD72F44C63B2E3A66139FB0F4F"><enum>(77)</enum><header>Asset-backed
security</header><text>The term <term>asset-backed security</term>—</text>
<subparagraph id="id892AAA591E6B4A8AB282BE95242A6661"><enum>(A)</enum><text>means a
fixed-income or other security collateralized by any type of self-liquidating
financial asset (including a loan, a lease, a mortgage, or a secured or
unsecured receivable) that allows the holder of the security to receive
payments that depend primarily on cash flow from the asset, including—</text>
<clause id="id00A068CAF66F429B9580328BE1F1C9F1"><enum>(i)</enum><text>a
collateralized mortgage obligation;</text>
</clause><clause id="id90C03CBF589847D9A36BB698D7FABF09"><enum>(ii)</enum><text>a
collateralized debt obligation;</text>
</clause><clause id="id640D9949885B4B2781BA92C22A37E92E"><enum>(iii)</enum><text>a
collateralized bond obligation;</text>
</clause><clause id="idD88536084F874C95AF08F5D575211BE8"><enum>(iv)</enum><text>a
collateralized debt obligation of asset-backed securities;</text>
</clause><clause id="idC78DEF8C55524A74AA09E30BA454271E"><enum>(v)</enum><text>a
collateralized debt obligation of collateralized debt obligations; and</text>
</clause><clause id="id78AD8AF86B694409A3CC8A04C043E259"><enum>(vi)</enum><text>a
security that the Commission, by rule, determines to be an asset-backed
security for purposes of this section; and</text>
</clause></subparagraph><subparagraph id="id0D7434824F0144759FBB634452CF3F58"><enum>(B)</enum><text>does not include
a security issued by a finance subsidiary held by the parent company or a
company controlled by the parent company, if none of the securities issued by
the finance subsidiary are held by an entity that is not controlled by the
parent
company.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id3CA0B8048A174563B76C9083FB65C52B"><enum>(b)</enum><header>Credit risk
retention</header><text display-inline="yes-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after
section 15F, as added by this Act, the following:</text>
<quoted-block display-inline="no-display-inline" id="idB2FDA55E7D6246B8857CE272BDAC8602" style="OLC">
<section id="IDa2c14615fa0c45068977a8e48f8ec1da"><enum>15G.</enum><header>Credit risk
retention</header>
<subsection id="ID24f1ff7603ea40d989daf5b4c9611f2f"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="idFFCA8B7DBCA1456DA331D0B04ECC5666"><enum>(1)</enum><text>the term
<term>Federal banking agencies</term> means the Office of the Comptroller of
the Currency and the Federal Deposit Insurance Corporation;</text>
</paragraph><paragraph id="id125CD461BFCF450396A954C82455D328"><enum>(2)</enum><text>the term
<quote>insured depository institution</quote> has the same meaning as in
section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));</text>
</paragraph><paragraph id="IDd766e7c51a314787a733026ac4f26afd"><enum>(3)</enum><text>the term
<term>securitizer</term> means—</text>
<subparagraph id="idA859C16BBFBD4211948174009B7D2B59"><enum>(A)</enum><text>an issuer of an
asset-backed security; or</text>
</subparagraph><subparagraph id="id57C6FB47ED554625A329FE6ABAAF869E"><enum>(B)</enum><text>a person who
organizes and initiates an asset-backed securities transaction by selling or
transferring assets, either directly or indirectly, including through an
affiliate, to the issuer; and</text>
</subparagraph></paragraph><paragraph id="IDb1b1c94d0a024a08b0394c7b481f969b"><enum>(4)</enum><text>the term
<term>originator</term> means a person who—</text>
<subparagraph id="idA6D83C48955A4EC4A6DEC1A91A068774"><enum>(A)</enum><text>through the
extension of credit or otherwise, creates a financial asset that collateralizes
an asset-backed security; and</text>
</subparagraph><subparagraph id="id5EE3E1F7FE0F42559FC6E0F2FEA06520"><enum>(B)</enum><text>sells an asset to
a securitizer.</text>
</subparagraph></paragraph></subsection><subsection id="ID529a11b1ece94a1dbef74baa2f849994"><enum>(b)</enum><header>In
general</header><text>Not later than 270 days after the date of enactment of
this section, the Federal banking agencies and the Commission shall jointly
prescribe regulations to require any securitizer to retain an economic interest
in a portion of the credit risk for any asset that the securitizer, through the
issuance of an asset-backed security, transfers, sells, or conveys to a third
party.</text>
</subsection><subsection id="ID512b8a4e97e84b5099d58906dfbf86c2"><enum>(c)</enum><header>Standards for
regulations</header>
<paragraph id="idCEC5A777DFEF4AB18263BFCF2A63CC92"><enum>(1)</enum><header>Standards</header><text>The
regulations prescribed under subsection (b) shall—</text>
<subparagraph id="IDfd3bd21b1cab4c76bae8606d5908440c"><enum>(A)</enum><text>prohibit a
securitizer from directly or indirectly hedging or otherwise transferring the
credit risk that the securitizer is required to retain with respect to an
asset;</text>
</subparagraph><subparagraph id="IDebaae43b83c9496ea38b9763f0789eda"><enum>(B)</enum><text>require a
securitizer to retain—</text>
<clause id="id134E4D3C5F38474AA4516B8C5C72BC94"><enum>(i)</enum><text>not
less than 5 percent of the credit risk for any asset that is transferred, sold,
or conveyed through the issuance of an asset-backed security by the
securitizer; or</text>
</clause><clause id="IDa6371071f7244e67bfc977e536fe9f3e"><enum>(ii)</enum><text>less
than 5 percent of the credit risk for an asset that is transferred, sold, or
conveyed through the issuance of an asset-backed security by the securitizer,
if the originator of the asset meets the underwriting standards prescribed
under paragraph (2)(B);</text>
</clause></subparagraph><subparagraph id="ID105315f703464bef88fde3d8af5523e8"><enum>(C)</enum><text>specify—</text>
<clause id="idBC892FF8E3064420B0256FEB5BEAB4C3"><enum>(i)</enum><text>the
permissible forms of risk retention for purposes of this section; and</text>
</clause><clause id="id0C08886B75E54F14ADD0D9625B11A2D7"><enum>(ii)</enum><text>the
minimum duration of the risk retention required under this section;</text>
</clause></subparagraph><subparagraph id="IDce5946a12bcd4e33bdfdafd7649d2b54"><enum>(D)</enum><text>apply, regardless
of whether the securitizer is an insured depository institution; and</text>
</subparagraph><subparagraph id="ID3d5e0a103c2841e5ab00974c4b71fbdd"><enum>(E)</enum><text>provide
for—</text>
<clause id="IDe1ea59212f284579bb8ef0e5a11dcf94"><enum>(i)</enum><text>a
total or partial exemption of any securitization, as may be appropriate in the
public interest and for the protection of investors; and</text>
</clause><clause id="IDa7459f50dd8a488086591ea59432d94a"><enum>(ii)</enum><text>the
allocation of risk retention obligations between a securitizer and an
originator in the case of a securitizer that purchases assets from an
originator, as the Federal banking agencies and the Commission jointly
determine appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="idC246E0A2E37E44078633F7481B1DEE38"><enum>(2)</enum><header>Asset
classes</header>
<subparagraph id="idC5934BF0090D42B7896B06775F30BCB3"><enum>(A)</enum><header>Asset
classes</header><text>The regulations prescribed under subsection (b) shall
establish asset classes with separate rules for securitizers of different
classes of assets, including residential mortgages, commercial mortgages,
commercial loans, auto loans, and any other class of assets that the Federal
banking agencies and the Commission deem appropriate.</text>
</subparagraph><subparagraph id="id215A9F18884A4B77B6691950AFD5D727"><enum>(B)</enum><header>Contents</header><text>For
each asset class established under subparagraph (A), the regulations prescribed
under subsection (b) shall establish underwriting standards that specify the
terms, conditions, and characteristics of a loan within the asset class that
indicate a reduced credit risk with respect to the loan.</text>
</subparagraph></paragraph></subsection><subsection id="id5D66C7DBD47C44DA8AFFFA91504B8269"><enum>(d)</enum><header>Originators</header><text>In
determining how to allocate risk retention obligations between a securitizer
and an originator under subsection (c)(1)(E)(ii), the Federal banking agencies
and the Commission shall—</text>
<paragraph id="idA81376A91D9D433B98254D037C52DA48"><enum>(1)</enum><text>reduce the
percentage of risk retention obligations required of the securitizer by the
percentage of risk retention obligations required of the originator; and</text>
</paragraph><paragraph id="idEF7D31C054904A53901CF1A70BD29304"><enum>(2)</enum><text>consider—</text>
<subparagraph id="idF45948423B99401891190EDCBD0C1E3E"><enum>(A)</enum><text>whether the
assets sold to the securitizer have terms, conditions, and characteristics that
reflect reduced credit risk;</text>
</subparagraph><subparagraph id="id31EDA0686EDB47A99E8B8222652450DF"><enum>(B)</enum><text>whether the form
or volume of transactions in securitization markets creates incentives for
imprudent origination of the type of loan or asset to be sold to the
securitizer; and</text>
</subparagraph><subparagraph id="idED4793DDFBE6436B85262C929389EA52"><enum>(C)</enum><text>the potential
impact of the risk retention obligations on the access of consumers and
businesses to credit on reasonable terms, which may not include the transfer of
credit risk to a third party.</text>
</subparagraph></paragraph></subsection><subsection id="ID11715f91ca0643e3bdefc04fe9f6272d"><enum>(e)</enum><header>Exemptions,
exceptions, and adjustments</header>
<paragraph id="ID1c0f3bab87c942c497f1984f8495d28c"><enum>(1)</enum><header>In
general</header><text>The Federal banking agencies and the Commission may
jointly adopt or issue exemptions, exceptions, or adjustments to the rules
issued under this section, including exemptions, exceptions, or adjustments for
classes of institutions or assets relating to the risk retention requirement
and the prohibition on hedging under subsection (c)(1).</text>
</paragraph><paragraph id="ID148e497f89c54df8ab7aef280cb70203"><enum>(2)</enum><header>Applicable
standards</header><text>Any exemption, exception, or adjustment adopted or
issued by the Federal banking agencies and the Commission under this paragraph
shall—</text>
<subparagraph id="IDca272a7fe56b4adc9a3a54418e2fa2f9"><enum>(A)</enum><text>help ensure high
quality underwriting standards for the securitizers and originators of assets
that are securitized or available for securitization; and</text>
</subparagraph><subparagraph id="ID0d946db4f1da40a685f00ce4a0f2ce72"><enum>(B)</enum><text>encourage
appropriate risk management practices by the securitizers and originators of
assets, improve the access of consumers and businesses to credit on reasonable
terms, or otherwise be in the public interest and for the protection of
investors.</text>
</subparagraph></paragraph><paragraph id="id58F4C1983E044C2D8F90E0C83B80D56E"><enum>(3)</enum><header>Farm credit
system institutions</header><text>A Farm Credit System institution, including
the Federal Agricultural Mortgage Corporation, that is chartered and subject to
the provisions of the Farm Credit Act of 1971, as amended (12 U.S.C. 2001 et
seq.), shall be exempt from the risk retention provisions of this
subsection.</text>
</paragraph></subsection><subsection id="ID8227fea6e53e4854b002063c5d84fbb9"><enum>(f)</enum><header>Enforcement</header><text>The
regulations issued under this section shall be enforced by—</text>
<paragraph id="IDe7e7827585b1480cabebb8f64ee7b6bd"><enum>(1)</enum><text>the appropriate
Federal banking agency, with respect to any securitizer that is an insured
depository institution; and</text>
</paragraph><paragraph id="ID9ee2f8cbd99244779214cabefff10e0e"><enum>(2)</enum><text>the Commission,
with respect to any securitizer that is not an insured depository
institution.</text>
</paragraph></subsection><subsection id="ID34ce5415bdff4508945a14e7f03bb6d7"><enum>(g)</enum><header>Authority of
Commission</header><text>The authority of the Commission under this section
shall be in addition to the authority of the Commission to otherwise enforce
the securities laws.</text>
</subsection><subsection id="IDf42fe6a930054344b950eade16f3837b"><enum>(h)</enum><header>Effective date
of regulations</header><text>The regulations issued under this section shall
become effective—</text>
<paragraph id="idAE43224F2C15488A9BF0041A63CE0CF4"><enum>(1)</enum><text>with respect to
securitizers and originators of asset-backed securities backed by residential
mortgages, 1 year after the date on which final rules under this section are
published in the Federal Register; and</text>
</paragraph><paragraph id="id0C0309E8418A4934B866532F0B225AE6"><enum>(2)</enum><text>with respect to
securitizers and originators of all other classes of asset-backed securities, 2
years after the date on which final rules under this section are published in
the Federal
Register.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDf316c78e98cc407e853cbc9de85b3503"><enum>942.</enum><header>Disclosures
and reporting for asset-backed securities</header>
<subsection id="id0C0F99938A7D4C31889F92C17BD13CBA"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">Section
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) is
amended—</text>
<paragraph id="id76E28DB0D84245D9A74BC560A1FD0584"><enum>(1)</enum><text>by
striking <quote>(d) Each</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idDCEE0AE8CCBA4D44837FB5233865222A" style="OLC">
<subsection id="id28EE4D112B52487891EB86A2B50DF12E"><enum>(d)</enum><header>Supplementary
and periodic information</header>
<paragraph id="id2A120DB285C1432CA0542A93B4C26776"><enum>(1)</enum><header>In
general</header><text>Each</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id666879351B6B40108795EAAF79ECF771"><enum>(2)</enum><text>in
the third sentence, by inserting after <quote>securities of each class</quote>
the following: <quote>, other than any class of asset-backed
securities,</quote>; and</text>
</paragraph><paragraph id="IDec12f1477d9142919b8953de05439c9d"><enum>(3)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAE36F23518A44ABCBDBF1C331BACB3A3" style="OLC">
<paragraph id="idA84871745676419F92B3BEA6B7EC6EAD"><enum>(2)</enum><header>Asset-backed
securities</header>
<subparagraph id="id9931412B972442E89CB736790C1F02D1"><enum>(A)</enum><header>Suspension of
duty to file</header><text>The Commission may, by rule or regulation, provide
for the suspension or termination of the duty to file under this subsection for
any class of asset-backed security, on such terms and conditions and for such
period or periods as the Commission deems necessary or appropriate in the
public interest or for the protection of investors.</text>
</subparagraph><subparagraph id="idA3C520F0397D44198AADC9B0F8267899"><enum>(B)</enum><header>Classification
of issuers</header><text>The Commission may, for purposes of this subsection,
classify issuers and prescribe requirements appropriate for each class of
issuers of asset-backed
securities.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idD884BF79174844EFBD1A61F9AFC46780"><enum>(b)</enum><header>Securities Act
of 1933</header><text>Section 7 of the Securities Act of 1933 (15 U.S.C. 77g)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id91D6B071780A4D5D830D3A6D375E4589" style="OLC">
<subsection id="id0E1426516A9740C2AED06C93E8357895"><enum>(c)</enum><header>Disclosure
requirements</header>
<paragraph id="id39D33F82BB664084962A66BB9A814591"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt regulations under this
subsection requiring each issuer of an asset-backed security to disclose, for
each tranche or class of security, information regarding the assets backing
that security.</text>
</paragraph><paragraph id="id98A77C843331426F9AE046DAF58AF748"><enum>(2)</enum><header>Content of
regulations</header><text>In adopting regulations under this subsection, the
Commission shall—</text>
<subparagraph id="idE07068E88BFC4DF69D6EC72EFB315C3D"><enum>(A)</enum><text>set standards for
the format of the data provided by issuers of an asset-backed security, which
shall, to the extent feasible, facilitate comparison of such data across
securities in similar types of asset classes; and</text>
</subparagraph><subparagraph id="idB43E7D0E7DB24E6DBC5CFF1231FFEDCB"><enum>(B)</enum><text>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,
including—</text>
<clause id="id497BD6DF6A624A2D9AB121D9D93E7A4B"><enum>(i)</enum><text>data
having unique identifiers relating to loan brokers or originators;</text>
</clause><clause id="id461A354028E540FAA391BB36B97698F6"><enum>(ii)</enum><text>the
nature and extent of the compensation of the broker or originator of the assets
backing the security; and</text>
</clause><clause id="idBDC0D80F7B614E74A33A5A3D0DAFFA3D"><enum>(iii)</enum><text>the
amount of risk retention by the originator and the securitizer of such
assets.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDdc7dd59514954c04b857b6ab40d565cb"><enum>943.</enum><header>Representations
and warranties in asset-backed offerings</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Securities and Exchange Commission shall prescribe
regulations on the use of representations and warranties in the market for
asset-backed securities (as that term is defined in section 3(a)(77) of the
Securities Exchange Act of 1934, as added by this subtitle) that—</text>
<paragraph id="ID1c58fe653f0445ceb4d315c2ef871f59"><enum>(1)</enum><text>require each
national recognized statistical rating organization to include in any report
accompanying a credit rating a description of—</text>
<subparagraph id="id6E1CC13ABEFA452EB6F3EF29EAAA3F4C"><enum>(A)</enum><text>the
representations, warranties, and enforcement mechanisms available to investors;
and</text>
</subparagraph><subparagraph id="id6729B4E9589D4C4BAC3ED1100689B3EA"><enum>(B)</enum><text>how they differ
from the representations, warranties, and enforcement mechanisms in issuances
of similar securities; and</text>
</subparagraph></paragraph><paragraph id="IDc22d12a2d4644259b0c0e6710f0201e3"><enum>(2)</enum><text>require any
securitizer (as that term is defined in section 15G(a) of the Securities
Exchange Act of 1934, as added by this subtitle) to disclose fulfilled and
unfulfilled repurchase requests across all trusts aggregated by the
securitizer, so that investors may identify asset originators with clear
underwriting deficiencies.</text>
</paragraph></section><section id="ID1672bf7261e14314a6bd0d7186efc0e0"><enum>944.</enum><header>Exempted
transactions under the Securities Act of 1933</header>
<subsection id="ID007c44800008439da9c0f64216727ed7"><enum>(a)</enum><header>Exemption
eliminated</header><text>Section 4 of the Securities Act of 1933 (15 U.S.C.
77d) is amended—</text>
<paragraph id="ID99272371221f4726b527b03b8274d758"><enum>(1)</enum><text>by
striking paragraph (5); and</text>
</paragraph><paragraph id="IDd7eb2ac7973a4eabb45608d62abe88cc"><enum>(2)</enum><text>by
striking <quote>(6) transactions</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id8B56B74763C9472092F64780D2302111" style="OLC">
<paragraph id="idB7CA8EA1AB8F42DFB21BD7570D0E0CFF"><enum>(5)</enum><text>transactions</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID125bfb8bdcb44618bc3163310de5ad41"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 3(a)(4)(B)(vii)(I) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(4)(B)(vii)(I)) is amended by striking
<quote>4(6)</quote> and inserting <quote>4(5)</quote>.</text>
</subsection></section><section id="id75B7B13466094D3092C98A1C8B70F958"><enum>945.</enum><header>Due
diligence analysis and disclosure in asset-backed securities
issues</header><text display-inline="no-display-inline">Section 7 of the
Securities Act of 1933 (15 U.S.C. 77g), as amended by this subtitle, is amended
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id685013FF2AA446568FAB11D07A81DD34" style="OLC">
<subsection id="idDFE8CCC456CB407FA21AC4C4E9FDF1A0"><enum>(d)</enum><header>Registration
statement for asset-backed securities</header><text>Not later than 180 days
after the date of enactment of this subsection, the Commission shall issue
rules relating to the registration statement required to be filed by any issuer
of an asset-backed security (as that term is defined in section 3(a)(77) of the
Securities Exchange Act of 1934) that require any issuer of an asset-backed
security—</text>
<paragraph id="idCB78FF9CBD9340328BA237E5AD864E70"><enum>(1)</enum><text>to
perform a due diligence analysis of the assets underlying the asset-backed
security; and</text>
</paragraph><paragraph id="idA93A7C7ED34B4A158AB2A3DA576423A1"><enum>(2)</enum><text>to
disclose the nature of the analysis under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="idEFA7E26AC8F54A3DB378E7B6078144D1"><enum>E</enum><header>Accountability
and Executive Compensation</header>
<section commented="no" display-inline="no-display-inline" id="H4E1486A9DF1C4939A7F053BB16885C0" section-type="subsequent-section"><enum>951.</enum><header display-inline="yes-display-inline">Shareholder vote on executive compensation
disclosures</header><text display-inline="no-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after
section 14 (15 U.S.C. 78n) the following:</text>
<quoted-block display-inline="no-display-inline" id="H97686321E421421099DA059F7079DFE" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H35E8FEAE5A4B47AA87C2B320916BB5DB"><enum>14A.</enum><header display-inline="yes-display-inline">Annual shareholder approval of executive
compensation</header>
<subsection commented="no" display-inline="no-display-inline" id="idA65DE38B540A4F51B320B119D85845F1"><enum>(a)</enum><header>Separate
resolution required</header><text display-inline="yes-display-inline">Any proxy
or consent or authorization for an annual or other meeting of the shareholders
occurring after the end of the 6-month period beginning on the date of
enactment of this section, for which the proxy solicitation rules of the
Commission require compensation disclosure, shall include a separate resolution
subject to shareholder vote to approve the compensation of executives, as
disclosed pursuant to section 229.402 of title 17, Code of Federal Regulations,
or any successor thereto.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA280CFB2350B442483D3E03C55E94A65"><enum>(b)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">The shareholder
vote referred to in subsection (a) shall not be binding on the issuer or the
board of directors of an issuer, and may not be construed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id0FC6AE141B2544D3BF6B7DE5A3A64817"><enum>(1)</enum><text display-inline="yes-display-inline">as overruling a decision by such issuer or
board of directors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5269169DBD1B41ABB0AC80A6F7F19F51"><enum>(2)</enum><text display-inline="yes-display-inline">to create or imply any change to the
fiduciary duties of such issuer or board of directors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id750A767681FE4114A533877AF0B165DB"><enum>(3)</enum><text display-inline="yes-display-inline">to create or imply any additional fiduciary
duties for such issuer or board of directors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDB242C6F244341FCBE5E2E13C2D7DA64"><enum>(4)</enum><text display-inline="yes-display-inline">to restrict or limit the ability of
shareholders to make proposals for inclusion in proxy materials related to
executive
compensation.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID87dd42d4ac8e4d88b06a4ba5ef9f4fdf"><enum>952.</enum><header>Compensation
committee independence</header><text display-inline="no-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended by inserting
after section 10B, as added by section 753, the following:</text>
<quoted-block display-inline="no-display-inline" id="idFD004C6C08FE4053853B783B4FBC1116" style="OLC">
<section id="IDb03bc563f43840ce95e2b4eb78136a52"><enum>10C.</enum><header>Compensation
committees</header>
<subsection id="id1391878B41BF401DBE6F8E1D26B10614"><enum>(a)</enum><header>Independence of
compensation committees</header>
<paragraph id="id70AF2460CC1C4D4A9D4DEFEE02F32343"><enum>(1)</enum><header>Listing
standards</header><text>The Commission shall, by rule, direct the national
securities exchanges and national securities associations to prohibit the
listing of any security of an issuer that does not comply with the requirements
of this subsection.</text>
</paragraph><paragraph id="id91490B8DBFB944818D340B1B5DCA43CD"><enum>(2)</enum><header>Independence of
compensation committees</header><text>The rules of the Commission under
paragraph (1) shall require that each member of the compensation committee of
the board of directors of an issuer be—</text>
<subparagraph id="idDD1C407581E04E61B7EB1FC966C19133"><enum>(A)</enum><text>a member of the
board of directors of the issuer; and</text>
</subparagraph><subparagraph id="id13F5B449C22440FAAE7A85593AB513B5"><enum>(B)</enum><text>independent.</text>
</subparagraph></paragraph><paragraph id="ID0b6a305a7eee4d0ca7151ecff508ed3a"><enum>(3)</enum><header>Independence</header><text>The
rules of the Commission under paragraph (1) shall require that, in determining
the definition of the term <term>independence</term> for purposes of paragraph
(2), the national securities exchanges and the national securities associations
shall consider relevant factors, including—</text>
<subparagraph id="idAD83EC2100EC4641948D8D7D1D2546F8"><enum>(A)</enum><text>the source of
compensation of a member of the board of directors of an issuer, including any
consulting, advisory, or other compensatory fee paid by the issuer to such
member of the board of directors; and</text>
</subparagraph><subparagraph id="idCAFC66260FA74CD282A9D1B6CAB819DA"><enum>(B)</enum><text>whether a member
of the board of directors of an issuer is affiliated with the issuer, a
subsidiary of the issuer, or an affiliate of a subsidiary of the issuer.</text>
</subparagraph></paragraph><paragraph id="ID224db3c73a074bb09203f023392ac5cc"><enum>(4)</enum><header>Exemption
authority</header><text>The rules of the Commission under paragraph (1) shall
permit a national securities exchange or a national securities association to
exempt a particular relationship from the requirements of paragraph (2), with
respect to the members of a compensation committee, as the national securities
exchange or national securities association determines is appropriate, taking
into consideration the size of an issuer and any other relevant factors.</text>
</paragraph></subsection><subsection id="ID12135910c14a4db8a430066c657ebac9"><enum>(b)</enum><header>Independence of
compensation consultants and other compensation committee advisers</header>
<paragraph id="id6C3DBF4A03EE45D5A98859DD1F343F7E"><enum>(1)</enum><header>In
general</header><text>The compensation committee of an issuer may only select a
compensation consultant, legal counsel, or other adviser to the compensation
committee after taking into consideration the factors identified by the
Commission under paragraph (2).</text>
</paragraph><paragraph id="idAA64A9FA5F34429E9DF8495A31BD93A7"><enum>(2)</enum><header>Rules</header><text>The
Commission shall identify factors that affect the independence of a
compensation consultant, legal counsel, or other adviser to a compensation
committee of an issuer, including—</text>
<subparagraph id="id5DA7CF50CD264B4A8D1F1641A4936EF9"><enum>(A)</enum><text>the provision of
other services to the issuer by the person that employs the compensation
consultant, legal counsel, or other adviser;</text>
</subparagraph><subparagraph id="id10CF61CF91594E42AE87775A4F134E32"><enum>(B)</enum><text>the amount of
fees received from the issuer by the person that employs the compensation
consultant, legal counsel, or other adviser, as a percentage of the total
revenue of the person that employs the compensation consultant, legal counsel,
or other adviser;</text>
</subparagraph><subparagraph id="id4814BBF4A9A64C42ABD629529D6FBF52"><enum>(C)</enum><text>the policies and
procedures of the person that employs the compensation consultant, legal
counsel, or other adviser that are designed to prevent conflicts of
interest;</text>
</subparagraph><subparagraph id="idCBCF976FB0EA4360A41E119C23B4CE5C"><enum>(D)</enum><text>any business or
personal relationship of the compensation consultant, legal counsel, or other
adviser with a member of the compensation committee; and</text>
</subparagraph><subparagraph id="idEB5B7208D273465CBA151BB14A568E99"><enum>(E)</enum><text>any stock of the
issuer owned by the compensation consultant, legal counsel, or other
adviser.</text>
</subparagraph></paragraph></subsection><subsection id="ID147c177f07cb43279b089ee968ed181c"><enum>(c)</enum><header>Compensation
committee authority relating to compensation consultants</header>
<paragraph id="IDde1d1cc834144ca28c334ef70de877be"><enum>(1)</enum><header>Authority to
retain compensation consultant</header>
<subparagraph id="id35F19B414AC544D89E0225500DC61130"><enum>(A)</enum><header>In
general</header><text>The compensation committee of an issuer, in its capacity
as a committee of the board of directors, may, in its sole discretion, retain
or obtain the advice of a compensation consultant.</text>
</subparagraph><subparagraph id="idFD6E2499FD2E4176914779F39208CEAD"><enum>(B)</enum><header>Direct
responsibility of compensation committee</header><text>The compensation
committee of an issuer shall be directly responsible for the appointment,
compensation, and oversight of the work of a compensation consultant.</text>
</subparagraph><subparagraph id="idAA2A39BC92A74D2AB35298BC7CD82F5C"><enum>(C)</enum><header>Rule of
construction</header><text>This paragraph may not be construed—</text>
<clause id="id8810995896E44FD89E98B77495404F71"><enum>(i)</enum><text>to
require the compensation committee to implement or act consistently with the
advice or recommendations of the compensation consultant; or</text>
</clause><clause id="id8D314DCBC1CE47C3A090DD6BAF4913BA"><enum>(ii)</enum><text>to
affect the ability or obligation of a compensation committee to exercise its
own judgment in fulfillment of the duties of the compensation committee.</text>
</clause></subparagraph></paragraph><paragraph id="ID340b42d356294238851c45c295697f60"><enum>(2)</enum><header>Disclosure</header><text>In
any proxy or consent solicitation material for an annual meeting of the
shareholders (or a special meeting in lieu of the annual meeting) occurring on
or after the date that is 1 year after the date of enactment of this section,
each issuer shall disclose in the proxy or consent material, in accordance with
regulations of the Commission, whether—</text>
<subparagraph id="ID97496db66b0a46d98d57b45eff728ffa"><enum>(A)</enum><text>the compensation
committee of the issuer retained or obtained the advice of a compensation
consultant; and</text>
</subparagraph><subparagraph id="ID5183f02753734f529e48bb5b602d4805"><enum>(B)</enum><text>the work of the
compensation consultant has raised any conflict of interest and, if so, the
nature of the conflict and how the conflict is being addressed.</text>
</subparagraph></paragraph></subsection><subsection id="IDf96749eb52a34367a30c5d654f146aa8"><enum>(d)</enum><header>Authority To
engage independent legal counsel and other advisers</header>
<paragraph id="id07D440AD33014F608657DF38E3B552CE"><enum>(1)</enum><header>In
general</header><text>The compensation committee of an issuer, in its capacity
as a committee of the board of directors, may, in its sole discretion, retain
and obtain the advice of independent legal counsel and other advisers.</text>
</paragraph><paragraph id="id8791343F2320435AA62843566A08A894"><enum>(2)</enum><header>Direct
responsibility of compensation committee</header><text>The compensation
committee of an issuer shall be directly responsible for the appointment,
compensation, and oversight of the work of independent legal counsel and other
advisers.</text>
</paragraph><paragraph id="idB3A06AB16A2F40C2881212B77CBDEAD1"><enum>(3)</enum><header>Rule of
construction</header><text>This subsection may not be construed—</text>
<subparagraph id="id3FD5136B813645DCA566A0969FF17F4B"><enum>(A)</enum><text>to require a
compensation committee to implement or act consistently with the advice or
recommendations of independent legal counsel or other advisers under this
subsection; or</text>
</subparagraph><subparagraph id="id53B7E30024854AE992AD84B04E69966C"><enum>(B)</enum><text>to affect the
ability or obligation of a compensation committee to exercise its own judgment
in fulfillment of the duties of the compensation committee.</text>
</subparagraph></paragraph></subsection><subsection id="ID10fe1db9e70044eca2699f8cfe73ba26"><enum>(e)</enum><header>Compensation of
compensation consultants, independent legal counsel, and other
advisers</header><text>Each issuer shall provide for appropriate funding, as
determined by the compensation committee in its capacity as a committee of the
board of directors, for payment of reasonable compensation—</text>
<paragraph id="ID684f687d4808462a80a83ed9741c9b56"><enum>(1)</enum><text>to
a compensation consultant; and</text>
</paragraph><paragraph id="ID1cd683b228b64e0f8368348a8d9bfa24"><enum>(2)</enum><text>to
independent legal counsel or any other adviser to the compensation
committee.</text>
</paragraph></subsection><subsection id="id40550AD701904689A0C4DAF1DAB4B184"><enum>(f)</enum><header>Commission
rules</header>
<paragraph id="ID63023fb0605b45c193855f67a7cb148a"><enum>(1)</enum><header>In
general</header><text>Not later than 360 days after the date of enactment of
this section, the Commission shall, by rule, direct the national securities
exchanges and national securities associations to prohibit the listing of any
security of an issuer that is not in compliance with the requirements of this
section.</text>
</paragraph><paragraph id="ID392506cab3de46c89c163b1714a81780"><enum>(2)</enum><header>Opportunity to
cure defects</header><text>The rules of the Commission under paragraph (1)
shall provide for appropriate procedures for an issuer to have a reasonable
opportunity to cure any defects that would be the basis for the prohibition
under paragraph (1), before the imposition of such prohibition.</text>
</paragraph><paragraph id="IDab9497c897a74188be480f281e95538f"><enum>(3)</enum><header>Exemption
authority</header>
<subparagraph id="id9A20CE7523C04D8D8B90BA4F6F94ADD4"><enum>(A)</enum><header>In
general</header><text>The rules of the Commission under paragraph (1) shall
permit a national securities exchange or a national securities association to
exempt a category of issuers from the requirements under this section, as the
national securities exchange or the national securities association determines
is appropriate.</text>
</subparagraph><subparagraph id="idB1893686544140C88E8DA74816D0D7ED"><enum>(B)</enum><header>Considerations</header><text>In
determining appropriate exemptions under subparagraph (A), the national
securities exchange or the national securities association shall take into
account the potential impact of the requirements of this section on smaller
reporting
issuers.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id55C445468CEA41E498823C0041AA2E7D"><enum>953.</enum><header>Executive
compensation disclosures</header>
<subsection id="idFE97735A1009463795BDBEE6FC582BD2"><enum>(a)</enum><header>Disclosure of
pay versus performance</header><text display-inline="yes-display-inline">Section 14 of the Securities Exchange Act
of 1934 (15 U.S.C. 78n), as amended by this title, is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id914ACE2D116A415995C3AEACE844D935" style="OLC">
<subsection id="id7960D62E662443578437BC5BDC3EDBDF"><enum>(i)</enum><header>Disclosure of
pay versus performance</header><text>The Commission shall, by rule, require
each issuer to disclose in any proxy or consent solicitation material for an
annual meeting of the shareholders of the issuer a clear description of any
compensation required to be disclosed by the issuer under section 229.402 of
title 17, Code of Federal Regulations (or any successor thereto), including
information that shows the relationship between executive compensation actually
paid and the financial performance of the issuer, taking into account any
change in the value of the shares of stock and dividends of the issuer and any
distributions. The disclosure under this subsection may include a graphic
representation of the information required to be
disclosed.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2F4E69D2664C4BE7937625E3A05B5AE6"><enum>(b)</enum><header>Additional
disclosure requirements</header>
<paragraph id="id814B64B3BCD6425C8833A9791DFA10F0"><enum>(1)</enum><header>In
general</header><text>The Commission shall amend section 229.402 of title 17,
Code of Federal Regulations, to require each issuer to disclose in any filing
of the issuer described in section 229.10(a) of title 17, Code of Federal
Regulations (or any successor thereto)—</text>
<subparagraph id="id126AA16CF6974FA5BB052983A78D1246"><enum>(A)</enum><text>the median of the
annual total compensation of all employees of the issuer, except the chief
executive officer (or any equivalent position) of the issuer;</text>
</subparagraph><subparagraph id="id2164967B025B496093F5A22404DECBE9"><enum>(B)</enum><text>the annual total
compensation of the chief executive officer (or any equivalent position) of the
issuer; and</text>
</subparagraph><subparagraph id="idCD7AB5D50172406FA890978B0E72F854"><enum>(C)</enum><text>the ratio of the
amount described in subparagraph (A) to the amount described in subparagraph
(B).</text>
</subparagraph></paragraph><paragraph id="idBF4D9AE3C25A4E568051F32453FC5A65"><enum>(2)</enum><header>Total
compensation</header><text>For purposes of this subsection, the total
compensation of an employee of an issuer shall be determined in accordance with
section 229.402(c)(2)(x) of title 17, Code of Federal Regulations, as in effect
on the day before the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="idCC68DE40EDCD47A5AFDF5C5CBA956C89"><enum>954.</enum><header>Recovery of
erroneously awarded compensation</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 is
amended by inserting after section 10C, as added by section 952, the
following:</text>
<quoted-block display-inline="no-display-inline" id="id7ED7319148D549DE901D69F373510CE6" style="OLC">
<section id="idD51414E7620E42B6921E523065DF5B51"><enum>10D.</enum><header>Recovery of
erroneously awarded compensation policy</header>
<subsection id="id1395CCAC246648348FA367ACABF7F333"><enum>(a)</enum><header>Listing
standards</header><text>The Commission shall, by rule, direct the national
securities exchanges and national securities associations to prohibit the
listing of any security of an issuer that does not comply with the requirements
of this section.</text>
</subsection><subsection id="id4B7D693BC9D64574AFFF2195486A8062"><enum>(b)</enum><header>Recovery of
funds</header><text>The rules of the Commission under subsection (a) shall
require each issuer to develop and implement a policy providing—</text>
<paragraph id="idC31EC1F19EA84CA1AA3AA0F4D708837E"><enum>(1)</enum><text>for disclosure of
the policy of the issuer on incentive-based compensation that is based on
financial information required to be reported under the securities laws;
and</text>
</paragraph><paragraph id="id5B21F122F60640E5BF013654D38AF891"><enum>(2)</enum><text>that, in the
event that the issuer is required to prepare an accounting restatement due to
the material noncompliance of the issuer with any financial reporting
requirement under the securities laws, the issuer will recover from any current
or former executive officer of the issuer who received incentive-based
compensation (including stock options awarded as compensation) during the
3-year period preceding the date on which the issuer is required to prepare an
accounting restatement, based on the erroneous data, in excess of what would
have been paid to the executive officer under the accounting
restatement.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id65007B949EFE44C396406BA048827506"><enum>955.</enum><header>Disclosure
regarding employee and director hedging</header><text display-inline="no-display-inline">Section 14 of the Securities Exchange Act of
1934 (15 U.S.C. 78n), as amended by this title, is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id083834635EA847EE853A2B2A94310B43" style="OLC">
<subsection id="id5FC153EDE0DF452DA1D785DAA738C257"><enum>(j)</enum><header>Disclosure of
hedging by employees and directors</header><text display-inline="yes-display-inline">The Commission shall, by rule, require each
issuer to disclose in any proxy or consent solicitation material for an annual
meeting of the shareholders of the issuer whether any employee or member of the
board of directors of the issuer, or any designee of such employee or member,
is permitted to purchase financial instruments (including prepaid variable
forward contracts, equity swaps, collars, and exchange funds) that are designed
to hedge or offset any decrease in the market value of equity
securities—</text>
<paragraph id="id4B26A25C430A433EA04CAB3055080473"><enum>(1)</enum><text display-inline="yes-display-inline">granted to the employee or member of the
board of directors by the issuer as part of the compensation of the employee or
member of the board of directors; or</text>
</paragraph><paragraph id="id12A5C6333A624AE2A833D6CD4F31936F"><enum>(2)</enum><text display-inline="yes-display-inline">held, directly or indirectly, by the
employee or member of the board of
directors.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idFCFF1D169C3E4373B2287A865E1882A1"><enum>956.</enum><header>Excessive
compensation by holding companies of depository institutions</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 adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idEA16221E7E4E44F1A59CDCB450393923" style="OLC">
<subsection id="id6C87404549914FCE89752E019502127D"><enum>(i)</enum><header>Excessive
compensation</header>
<paragraph id="idEBE7C0BFA2854A44A1E033B899BDBCD7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 180
days after the transfer date established under section 311 of the Restoring
American Financial Stability Act of 2010, the Board of Governors, in
consultation with the Comptroller of the Currency and the Federal Deposit
Insurance Corporation, shall, by rule, establish standards prohibiting as an
unsafe and unsound practice any compensation plan of a bank holding company
that—</text>
<subparagraph id="idBD1CAA2E1F624D39988E510E4BB348AC"><enum>(A)</enum><text display-inline="yes-display-inline">provides an executive officer, employee,
director, or principal shareholder of the bank holding company with excessive
compensation, fees, or benefits; or</text>
</subparagraph><subparagraph id="idC701A89F8C7444039A2DD628C961FCE0"><enum>(B)</enum><text display-inline="yes-display-inline">could lead to material financial loss to
the bank holding company.</text>
</subparagraph></paragraph><paragraph id="id7DB2852E46564F4AB0AF6EDC83FE15C6"><enum>(2)</enum><header>Considerations</header><text display-inline="yes-display-inline">In establishing the standards under
paragraph (1), the Board of Governors shall take into consideration the
compensation standards described in section 39(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1831p–1(c)) and the views and recommendations of the
Comptroller of the Currency and the Federal Deposit Insurance
Corporation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id3EDE8E909EDF4713832A96CF2EB8EB6B"><enum>957.</enum><header>Voting by
brokers</header><text display-inline="no-display-inline">Section 6(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78f(b)) is amended—</text>
<paragraph id="id82AD280CB98F46EABF7CAEB436CA84E6"><enum>(1)</enum><text>in
paragraph (9)—</text>
<subparagraph id="idAD108E56941E4641BCCBFA56F1FF0D3C"><enum>(A)</enum><text>in subparagraph
(A), by redesignating clauses (i) through (v) as subclauses (I) through (V),
respectively, and adjusting the margins accordingly;</text>
</subparagraph><subparagraph id="id8AE8EA7832194D318D3A10D7C5D72104"><enum>(B)</enum><text>by redesignating
subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph id="id3C0644F0EEAC4B0DBD89342A61F7E16E"><enum>(C)</enum><text>by inserting
<quote>(A)</quote> after <quote>(9)</quote>; and</text>
</subparagraph><subparagraph id="id5F027D6CCA7F43E0955DC4DFEE1AB056"><enum>(D)</enum><text>in the matter
immediately following clause (iv), as so redesignated, by striking <quote>As
used</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id37F850C1F6844BA8B842DD3EFC7EBD95" style="OLC">
<subparagraph id="id329C64FF2B6841919DB3518FCA894BA0" indent="up1"><enum>(B)</enum><text>As
used</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idEE65D16B06054858872B7E8EA3CC9E03"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA1A6149D87AA43E4B0034C6B8904F7B6" style="OLC">
<paragraph id="id9ECF73F7279948A79484303AF4708464"><enum>(10)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id2D659DDF7469482998832E1992D78F8F"><enum>(A)</enum><text>The rules of the
exchange prohibit any member that is not the beneficial owner of a security
registered under section 12 from granting a proxy to vote the security in
connection with a shareholder vote described in subparagraph (B), unless the
beneficial owner of the security has instructed the member to vote the proxy in
accordance with the voting instructions of the beneficial owner.</text>
</subparagraph><subparagraph id="idEF5C83B2C44F4E87B30C921E4764F03C" indent="up1"><enum>(B)</enum><text>A shareholder vote described in this
subparagraph is a shareholder vote with respect to the election of a member of
the board of directors of an issuer, executive compensation, or any other
significant matter, as determined by the Commission, by rule.</text>
</subparagraph><subparagraph id="idA1DEE2333BEF4F739BAE204E43D82E4D" indent="up1"><enum>(C)</enum><text>Nothing in this paragraph shall be
construed to prohibit a national securities exchange from prohibiting a member
that is not the beneficial owner of a security registered under section 12 from
granting a proxy to vote the security in connection with a shareholder vote not
described in subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="id4F89387A3B374819A2A67EC4467CF5A1"><enum>F</enum><header>Improvements to
the Management of the Securities and Exchange Commission</header>
<section id="id20412E5469DF46288A25389BBA45F6FC"><enum>961.</enum><header>Report and
Certification of Internal Supervisory Controls</header>
<subsection id="ID9064d4b921fe478fa30a126f4c776221"><enum>(a)</enum><header>Annual reports
and certification</header><text>Not later than 90 days after the end of each
fiscal year, the Commission shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives on the conduct by the Commission of
examinations of registered entities, enforcement investigations, and review of
corporate financial securities filings.</text>
</subsection><subsection id="ID9c1ec52fd16349218a2d67686f321f0f"><enum>(b)</enum><header>Contents of
reports</header><text>Each report under subsection (a) shall contain—</text>
<paragraph id="id7C2E08F4EC194113B59E4B33CCC4C5CD"><enum>(1)</enum><text>an
assessment, as of the end of the most recent fiscal year, of the effectiveness
of—</text>
<subparagraph id="idD1A7B79A4D794431BFAD65AA39932366"><enum>(A)</enum><text>the internal
supervisory controls of the Commission; and</text>
</subparagraph><subparagraph id="id39ABC8A9968646BCB25F274DA2D02A8E"><enum>(B)</enum><text>the procedures of
the Commission applicable to the staff of the Commission who perform
examinations of registered entities, enforcement investigations, and reviews of
corporate financial securities filings;</text>
</subparagraph></paragraph><paragraph id="idECFC0F3591ED423AA11FC2468FD8331A"><enum>(2)</enum><text>a
certification that the Commission has adequate internal supervisory controls to
carry out the duties of the Commission described in paragraph (1)(B);
and</text>
</paragraph><paragraph id="id603994E12E1D4E629416F4AEDCF3E964"><enum>(3)</enum><text>a
summary by the Comptroller General of the United States of the review carried
out under subsection (d).</text>
</paragraph></subsection><subsection id="idC70ACB8C0C9B468F97B8836CB496E9D9"><enum>(c)</enum><header>Certification</header>
<paragraph id="id4B1EF4C02720481B9FACFD1CC1BB6474"><enum>(1)</enum><header>Signature</header><text>The
certification under subsection (b)(2) shall be signed by the Director of the
Division of Enforcement, the Director of the Division of Corporation Finance,
and the Director of the Office of Compliance Inspections and Examinations (or
the head of any successor division or office).</text>
</paragraph><paragraph id="id2E6B0514BB094EFD925AC6FDDE934973"><enum>(2)</enum><header>Content of
certification</header><text>Each individual described in paragraph (1) shall
certify that the individual—</text>
<subparagraph id="idAE0E26EE9F6A4CEC9AAB0829427D0D78"><enum>(A)</enum><text>is directly
responsible for establishing and maintaining the internal supervisory controls
of the Division or Office of which the individual is the head;</text>
</subparagraph><subparagraph id="idA5A02FBB1C7C4546B0645B4BEFAEFFB7"><enum>(B)</enum><text>is knowledgeable
about the internal supervisory controls of the Division or Office of which the
individual is the head;</text>
</subparagraph><subparagraph id="idEF369E30BCE54103A0C6FDB4616C8B72"><enum>(C)</enum><text>has evaluated the
effectiveness of the internal supervisory controls during the 90-day period
ending on the final day of the fiscal year to which the report relates;
and</text>
</subparagraph><subparagraph id="idE2888DCD98D24CE0BDFAD0B6AE2EE903"><enum>(D)</enum><text>has disclosed to
the Commission any significant deficiencies in the design or operation of
internal supervisory controls that could adversely affect the ability of the
Division or Office to consistently conduct inspections, or investigations, or
reviews of filings with professional competence and integrity.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID8cc549cc8c8947078d16da6af35cd1b8"><enum>(d)</enum><header>Review by the
Comptroller General</header><text>Not later than the date on which the first
report is submitted under subsection (a), the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives an initial report that contains a review of the adequacy and
effectiveness of the internal supervisory control structure and procedures
described in subsection (b)(1).</text>
</subsection></section><section id="id317BBF7F5ECD4D558DF0F0EA8D93D68B"><enum>962.</enum><header>Triennial
report on personnel management</header>
<subsection id="ID407cafadc36244c082b8f4963aa98ae5"><enum>(a)</enum><header>Triennial
report required</header><text>Once every 3 years, the Comptroller General of
the United States shall submit a report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives on the quality of personnel management by the
Commission.</text>
</subsection><subsection id="ID4697bc6ba2c84c8fb468d4f52f218527"><enum>(b)</enum><header>Contents of
report</header><text>Each report under subsection (a) shall include—</text>
<paragraph id="idF238B6CE4D7044C487CFC6B79912AA73"><enum>(1)</enum><text>an
evaluation of—</text>
<subparagraph id="ID068ba51ae1ac421cb0b50a39f3ffcdcb"><enum>(A)</enum><text>the effectiveness
of supervisors in using the skills, talents, and motivation of the employees of
the Commission to achieve the goals of the Commission;</text>
</subparagraph><subparagraph id="IDb543cba5b2d346cbae5bf98dbd2e7b20"><enum>(B)</enum><text>the criteria for
promoting employees of the Commission to supervisory positions;</text>
</subparagraph><subparagraph id="ID6ed8698899f949a49bed81543278c7a3"><enum>(C)</enum><text>the fairness of
the application of the promotion criteria to the decisions of the
Commission;</text>
</subparagraph><subparagraph id="ID20089a1260dd4bbda0c950ffcff501dc"><enum>(D)</enum><text>the competence of
the professional staff of the Commission;</text>
</subparagraph><subparagraph id="IDdb8a9d29f7b34f30a6e5d6a694d2eb43"><enum>(E)</enum><text>the efficiency of
communication between the units of the Commission regarding the work of the
Commission (including communication between divisions and between subunits of a
division) and the efforts by the Commission to promote such
communication;</text>
</subparagraph><subparagraph id="IDda4f5f610f2948c68c82988c2d772baf"><enum>(F)</enum><text>the turnover
within subunits of the Commission, including the identification of supervisors
whose subordinates have an unusually high rate of turnover;</text>
</subparagraph><subparagraph id="ID3117eae28ab94e8eb7e1cbfb19dc033d"><enum>(G)</enum><text>whether there are
excessive numbers of low-level, mid-level, or senior-level managers;</text>
</subparagraph><subparagraph id="ID81912a5532b44fe8a3f5a35eadb13ad4"><enum>(H)</enum><text>any initiatives
of the Commission that increase the competence of the staff of the
Commission;</text>
</subparagraph><subparagraph id="ID4af2b3b1f658484eaba440c1ce095a8b"><enum>(I)</enum><text>the actions taken
by the Commission regarding employees of the Commission who have failed to
perform their duties; and</text>
</subparagraph><subparagraph id="idFCE68645296241859C8EDEE53A1F2FBF"><enum>(J)</enum><text>such other
factors relating to the management of the Commission as the Comptroller General
determines are appropriate;</text>
</subparagraph></paragraph><paragraph id="id164D4D3CB83445B6AA343EA9BC5C9514"><enum>(2)</enum><text>an
evaluation of any improvements made with respect to the areas described in
paragraph (1) since the date of submission of the previous report; and</text>
</paragraph><paragraph id="id9A773AFF4E9E42A8A116328A177814FD"><enum>(3)</enum><text>recommendations
for how the Commission can use the human resources of the Commission more
effectively and efficiently to carry out the mission of the Commission.</text>
</paragraph></subsection><subsection id="IDfe51a84399ae420d8d436604b36063c9"><enum>(c)</enum><header>Consultation</header><text>In
preparing the report under subsection (a), the Comptroller General shall
consult with current employees of the Commission, retired employees and other
former employees of the Commission, the Inspector General of the Commission,
persons that have business before the Commission, any union representing the
employees of the Commission, private management consultants, academics, and any
other source that the Comptroller General deems appropriate.</text>
</subsection><subsection id="idA869455BCE4944EAB19FE42966058304"><enum>(d)</enum><header>Report by
Commission</header><text>Not later than 90 days after the date on which the
Comptroller General submits each report under subsection (a), the Commission
shall submit to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
a report describing the actions taken by the Commission in response to the
recommendations contained in the report under subsection (a).</text>
</subsection><subsection id="idD994A7D3F5654321BA9D6C13881B9CE5"><enum>(e)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="id0EA2ED52130D497CB0025073147821BD"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under this
section, as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="id786C169F6ACE43A69CD89FCDA706E000"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="idC3A8415C4B84458597C2046042AF2C7E"><enum>(A)</enum><text>be credited to
the appropriation account <quote>Salaries and Expenses, Government
Accountability Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="id4F199950B3CC416AA01D9656023E72FA"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection></section><section id="id2F17F2DDC386457384AAF2D006834FD8"><enum>963.</enum><header>Annual
financial controls audit</header>
<subsection id="ID112fcf92b4524ae2a8bba535f6216478"><enum>(a)</enum><header>Reports of
commission</header>
<paragraph id="idB19936C6CBA24220895C7C55229BA3C8"><enum>(1)</enum><header>Annual reports
required</header><text>Not later than 6 months after the end of each fiscal
year, the Commission shall publish and submit to Congress a report that—</text>
<subparagraph id="ID233bc57bfb3340379e2ad8d55377531b"><enum>(A)</enum><text>describes the
responsibility of the management of the Commission for establishing and
maintaining an adequate internal control structure and procedures for financial
reporting; and</text>
</subparagraph><subparagraph id="ID113eed565a8a41b6b8c1c934ac56ccde"><enum>(B)</enum><text>contains an
assessment of the effectiveness of the internal control structure and
procedures for financial reporting of the Commission during that fiscal
year.</text>
</subparagraph></paragraph><paragraph id="ID2e9880bcccee44edbd2aa773b6beaf7f"><enum>(2)</enum><header>Attestation</header><text>The
reports required under paragraph (1) shall be attested to by the Chairman and
chief financial officer of the Commission.</text>
</paragraph></subsection><subsection id="ID05a34a323a844018b0d5eba261607cd9"><enum>(b)</enum><header>Report by
Comptroller General</header>
<paragraph id="idA1AC75170E844BDA90343CF48569B2D1"><enum>(1)</enum><header>Report
required</header><text>Not later than 6 months after the end of the first
fiscal year after the date of enactment of this Act, the Comptroller General of
the United States shall submit a report to Congress that assesses—</text>
<subparagraph id="IDd628f2d9c64745a6ae74d1508f1bfc89"><enum>(A)</enum><text>the effectiveness
of the internal control structure and procedures of the Commission for
financial reporting; and</text>
</subparagraph><subparagraph id="ID92005698e6744d578c595b20c07695eb"><enum>(B)</enum><text>the assessment of
the Commission under subsection (a)(1)(B).</text>
</subparagraph></paragraph><paragraph id="ID378fe54ede5f48b6896f487f3f5b5abf"><enum>(2)</enum><header>Attestation</header><text>The
Comptroller General shall attest to, and report on, the assessment made by the
Commission under subsection (a).</text>
</paragraph></subsection><subsection id="id7817309A1BE242F6969A3F94C638885F"><enum>(c)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="id2772BE0A81FE4AF88527ADFD6DB878C1"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under subsection
(b), as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="idE5B2BA273CAD476F951C1BD36B087AE8"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="idD45ADA292A82460BAFCA424349F1EFEF"><enum>(A)</enum><text>be credited to
the appropriation account <quote>Salaries and Expenses, Government
Accountability Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="idD212D66B5C774861BA58E6D69762E240"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection></section><section id="id4BB8AAA0B83E4004920CDE275876545F"><enum>964.</enum><header>Report on
oversight of national securities associations</header>
<subsection id="id1115DCE2BD68493F94CDC9237BA55B60"><enum>(a)</enum><header>Report
required</header><text display-inline="yes-display-inline">Not later than 2
years after the date of enactment of this Act, and every 3 years thereafter,
the Comptroller General of the United States shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report that includes an
evaluation of the oversight by the Commission of national securities
associations registered under section 15A of the Securities Exchange Act of
1934 (15 U.S.C. 78o–3) with respect to—</text>
<paragraph id="IDeefbe2726ce04c7690a2a10e03f3a00f"><enum>(1)</enum><text>the
governance of such national securities associations, including the
identification and management of conflicts of interest by such national
securities associations, together with an analysis of the impact of any
conflicts of interest on the regulatory enforcement or rulemaking by such
national securities associations;</text>
</paragraph><paragraph id="idEDEA94FC319646DD8C539C771EC88D92"><enum>(2)</enum><text>the
examinations carried out by the national securities associations, including the
expertise of the examiners;</text>
</paragraph><paragraph id="ID1daf082ed0c5416caec787d705e9b4be"><enum>(3)</enum><text>the
executive compensation practices of such national securities
associations;</text>
</paragraph><paragraph id="ID15f9cb91934c458a80c70d80f788a8fb"><enum>(4)</enum><text>the
arbitration services provided by the national securities associations;</text>
</paragraph><paragraph id="ID55175a9866bb4bed88a9e9799b2a8a4b"><enum>(5)</enum><text>the
review performed by national securities associations of advertising by the
members of the national securities associations;</text>
</paragraph><paragraph id="idB55434481FF6427EAD8CAEAC0EC3CD76"><enum>(6)</enum><text>the
cooperation with and assistance to State securities administrators by the
national securities associations to promote investor protection;</text>
</paragraph><paragraph id="idE54A8B4DB94D403E8662E02D41BBC873"><enum>(7)</enum><text>how
the funding of national securities associations is used to support the mission
of the national securities associations, including—</text>
<subparagraph id="id9A9F1ECCD92A492C8F8F9A5B9DA5ABFE"><enum>(A)</enum><text>the methods of
funding;</text>
</subparagraph><subparagraph id="id147B34313D144759A3FE673B0AB9A7A2"><enum>(B)</enum><text>the sufficiency
of funds;</text>
</subparagraph><subparagraph commented="no" id="idA8F807F4060F4301A9DAC2C22EF9ED45"><enum>(C)</enum><text>how funds are
invested by the national securities association pending use; and</text>
</subparagraph><subparagraph commented="no" id="idD94C658F122A43DA93EDFD40352D4EF9"><enum>(D)</enum><text>the impact of the
methods, sufficiency, and investment of funds on regulatory enforcement by the
national securities associations;</text>
</subparagraph></paragraph><paragraph id="id80345B6C2A804BF7B10FC8D146AE3FC9"><enum>(8)</enum><text>the
policies regarding the employment of former employees of national securities
associations by regulated entities;</text>
</paragraph><paragraph id="id3BBF4856FDBA479D923972404D7B6A3E"><enum>(9)</enum><text>the
ongoing effectiveness of the rules of the national securities associations in
achieving the goals of the rules;</text>
</paragraph><paragraph id="id50DFB4ADE70348D4838AC648307AFA3F"><enum>(10)</enum><text>the
transparency of governance and activities of the national securities
associations; and</text>
</paragraph><paragraph id="ID3d584ea689c644b68bb7ce91be68cdc1"><enum>(11)</enum><text>any
other issue that has an impact, as determined by the Comptroller General, on
the effectiveness of such national securities associations in performing their
mission and in dealing fairly with investors and members;</text>
</paragraph></subsection><subsection id="id77D6B92E861D4F1FA1C325B68B69F627"><enum>(b)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="id73309D8B1FEE4C07800BCFFB9CC026EA"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under subsection
(a), as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="id2EA577FBB9B64EF2A31E63CE35B51426"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="id9197FE30CC494B209AA95F5FBC266173"><enum>(A)</enum><text>be credited to
the appropriation account <quote>Salaries and Expenses, Government
Accountability Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="idBE0F53E3462840F1984EC67EDD0A13AE"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection></section><section id="id890B17883BBC47B4AADF086C204D34CE"><enum>965.</enum><header>Compliance
Examiners</header><text display-inline="no-display-inline">Section 4 of the
Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id50EE1A6F5EF64403846A992461EEF18E" style="OLC">
<subsection id="ID0f09ae4f193e40738716cb232a0a3737"><enum>(h)</enum><header>Examiners</header>
<paragraph id="id9BDC19713A4544C9B1C7360FBFE111D7"><enum>(1)</enum><header>Division of
Trading and Markets</header><text>The Division of Trading and Markets of the
Commission, or any successor organizational unit, shall have a staff of
examiners who shall—</text>
<subparagraph id="idAA888E2DBCAC4B9B991C082CAA13B865"><enum>(A)</enum><text>perform
compliance inspections and examinations of entities under the jurisdiction of
that Division; and</text>
</subparagraph><subparagraph id="id4A9A3CE2FBC841EF92A4969592BAFE29"><enum>(B)</enum><text>report to the
Director of that Division.</text>
</subparagraph></paragraph><paragraph id="idC29A5F9AE404473B82F898F6DC2195BA"><enum>(2)</enum><header>Division of
Investment Management</header><text>The Division of Investment Management of
the Commission, or any successor organizational unit, shall have a staff of
examiners who shall—</text>
<subparagraph id="id2E1D1C6B028148DCAEE09CD33AC71030"><enum>(A)</enum><text>perform
compliance inspections and examinations of entities under the jurisdiction of
that Division; and</text>
</subparagraph><subparagraph id="id53D8E156F2254EA5BB489E80D197FE8E"><enum>(B)</enum><text>report to the
Director of that
Division.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idDB8089C82BCA45E6842815D5875C5E73"><enum>966.</enum><header>Suggestion
program for employees of the Commission</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 4C (15 U.S.C. 78d–3)
the following:</text>
<quoted-block display-inline="no-display-inline" id="id4BB453CCA5664089941A633D2B092CFD" style="OLC">
<section id="idBE053D859B7144948050E91CEEBF8768"><enum>4D.</enum><header>Additional
duties of Inspector General</header>
<subsection id="idDA1992835BC2410DB4A16CBFA79DC11E"><enum>(a)</enum><header>Suggestion
submissions by Commission employees</header>
<paragraph id="idB3BF8DAC59B441E2A0BF1C4749C4FC01"><enum>(1)</enum><header>Hotline
established</header><text>The Inspector General of the Commission shall
establish and maintain a telephone hotline or other electronic means for the
receipt of—</text>
<subparagraph id="id028D1D9D502045B8838CC3DE71B1A04C"><enum>(A)</enum><text>suggestions by
employees of the Commission for improvements in the work efficiency,
effectiveness, and productivity, and the use of the resources, of the
Commission; and</text>
</subparagraph><subparagraph id="id33428092D1F543139AD8EF4BD2B8A147"><enum>(B)</enum><text>allegations by
employees of the Commission of waste, abuse, misconduct, or mismanagement
within the Commission.</text>
</subparagraph></paragraph><paragraph id="id4DE412737A384833B45FE94D5EEA1306"><enum>(2)</enum><header>Confidentiality</header><text>The
Inspector General shall maintain as confidential—</text>
<subparagraph id="id34FF41709BCC4A8B9D86197BAC39171E"><enum>(A)</enum><text>the identity of
any individual who provides information by the means established under
paragraph (1), unless the individual requests otherwise, in writing; and</text>
</subparagraph><subparagraph id="id38C062B030F34AD8A2A0CBDB6489DB9E"><enum>(B)</enum><text>at the request of
any such individual, any specific information provided by the
individual.</text>
</subparagraph></paragraph></subsection><subsection id="id702C11D4090245869E4207A6ACCDE3F7"><enum>(b)</enum><header>Consideration
of reports</header><text>The Inspector General shall consider any suggestions
or allegations received by the means established under subsection (a)(1), and
shall recommend appropriate action in relation to such suggestions or
allegations.</text>
</subsection><subsection id="id606740D03BB04746B4B32C0D9CFE6746"><enum>(c)</enum><header>Recognition</header><text>The
Inspector General may recognize any employee who makes a suggestion under
subsection (a)(1) (or by other means) that would or does—</text>
<paragraph id="idD90D3BE7C9874952AED08BAB684A6B2D"><enum>(1)</enum><text>increase the work
efficiency, effectiveness, or productivity of the Commission; or</text>
</paragraph><paragraph id="id7BE064126B6942B0B122A5E389219FAC"><enum>(2)</enum><text>reduce waste,
abuse, misconduct, or mismanagement within the Commission.</text>
</paragraph></subsection><subsection id="idC82D07277BB24E7788834A4BAB0B55FE"><enum>(d)</enum><header>Report</header><text>The
Inspector General of the Commission shall submit to Congress an annual report
containing a description of—</text>
<paragraph id="idD4FDC8DEB0BD4CAE8865FE8CBF464F19"><enum>(1)</enum><text>the nature,
number, and potential benefits of any suggestions received under subsection
(a);</text>
</paragraph><paragraph id="id4D11E2E150FD4879B43926F841EA01B0"><enum>(2)</enum><text>the nature,
number, and seriousness of any allegations received under subsection
(a);</text>
</paragraph><paragraph id="idF87DC02A7F8A4DC9883232C0189B0986"><enum>(3)</enum><text>any
recommendations made or actions taken by the Inspector General in response to
substantiated allegations received under subsection (a); and</text>
</paragraph><paragraph id="idC7A5140E04164506AFA75A046BFC6135"><enum>(4)</enum><text>any action the
Commission has taken in response to suggestions or allegations received under
subsection (a).</text>
</paragraph></subsection><subsection id="id42D233360E3B4A2E85D971D02D4304E9"><enum>(e)</enum><header>Funding</header><text>The
activities of the Inspector General under this subsection shall be funded by
the Securities and Exchange Commission Investor Protection Fund established
under section
21F.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="id84381FAD36FA41BCA72F39FBB97DD9D9"><enum>G</enum><header>Strengthening
Corporate Governance</header>
<section id="id04333C6FFCFE4E68BF5D6F06A4D82FD4"><enum>971.</enum><header>Election of
Directors by Majority Vote in Uncontested Elections</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 14A, as added by this
title, the following:</text>
<quoted-block display-inline="no-display-inline" id="idCB6515B6F256487DA3B70005C723E938" style="OLC">
<section id="ID6b5ea444936446b184b20fa093c98e7b"><enum>14B.</enum><header>Corporate
governance</header>
<subsection id="idA2F1458310594D80B18D36D6815A8C0C"><enum>(a)</enum><header>Corporate
Governance Standards</header>
<paragraph id="IDe8bc6efe1d8e4ab0b64f5ca54a6f9245"><enum>(1)</enum><header>Listing
standards</header>
<subparagraph id="IDf7cc93705f4d46f8ad20a68d95791db7"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
subsection, the Commission shall, by rule, direct the national securities
exchanges and national securities associations to prohibit the listing of any
security of an issuer that is not in compliance with any of the requirements of
this subsection.</text>
</subparagraph><subparagraph id="ID5db9b9cdfc004db183a43606ff4ad259"><enum>(B)</enum><header>Opportunity to
comply and cure</header><text>The rules established under this paragraph shall
allow an issuer to have an opportunity to come into compliance with the
requirements of this subsection, and to cure any defect that would be the basis
for a prohibition under subparagraph (A), before the imposition of such
prohibition.</text>
</subparagraph><subparagraph id="ID63cbe39d899649179aa6fdbd8c5733fa"><enum>(C)</enum><header>Authority to
exempt</header><text>The Commission may, by rule or order, exempt an issuer
from any or all of the requirements of this subsection and the rules issued
under this subsection, based on the size of the issuer, the market
capitalization of the issuer, the number of shareholders of record of the
issuer, or any other criteria, as the Commission deems necessary and
appropriate in the public interest or for the protection of investors.</text>
</subparagraph></paragraph><paragraph id="ID0a309fcebf244f9594eb934eb81931e9"><enum>(2)</enum><header>Commission
rules on elections</header><text>In an election for membership on the board of
directors of an issuer—</text>
<subparagraph id="IDe95f7c9aed944ea1ae22b7c8466e78f9"><enum>(A)</enum><text>that is
uncontested, each director who receives a majority of the votes cast shall be
deemed to be elected;</text>
</subparagraph><subparagraph id="ID74cfaf39ced846c4889503052db0ba3c"><enum>(B)</enum><text>that is
contested, if the number of nominees exceeds the number of directors to be
elected, each director shall be elected by the vote of a plurality of the
shares represented at a meeting and entitled to vote; and</text>
</subparagraph><subparagraph id="ID1b43b8c0b96542e8bd08012d7a7c4cab"><enum>(C)</enum><text>if a director of
an issuer receives less than a majority of the votes cast in an uncontested
election—</text>
<clause id="IDec538efd319a46058b2787511fbc59a0"><enum>(i)</enum><text>the
director shall tender the resignation of the director to the board of
directors; and</text>
</clause><clause id="ID2dbb084a372a4840926f6c3745848661"><enum>(ii)</enum><text>the
board of directors—</text>
<subclause id="IDa9565023750a4532b78e2f040f1b424e"><enum>(I)</enum><text>shall—</text>
<item id="idFB86BBEF7503424AA2FCCB5126ADBF6D"><enum>(aa)</enum><text>accept
the resignation of the director;</text>
</item><item id="IDbca95f3ea4da471996f966e99cd93928"><enum>(bb)</enum><text>determine a date
on which the resignation will take effect, within a reasonable period of time,
as established by the Commission; and</text>
</item><item id="ID46794b593f0645eaa99ad51843ba5d67"><enum>(cc)</enum><text>make
the date under item (bb) public within a reasonable period of time, as
established by the Commission; or</text>
</item></subclause><subclause id="ID55ecf100727947fd8b461d34252b4a3f"><enum>(II)</enum><text>shall, upon a
unanimous vote of the board, decline to accept the resignation and, not later
than 30 days after the date of the vote (or within such shorter period as the
Commission may establish), make public, together with a discussion of the
analysis used in reaching the conclusion, the specific reasons that—</text>
<item id="id744126076F9E4D2B8504E887DAE7D649"><enum>(aa)</enum><text>the
board chose not to accept the resignation; and</text>
</item><item id="id70E02FECF70A4B87BFB1DAA24CE8D340"><enum>(bb)</enum><text>the
decision was in the best interests of the issuer and the shareholders of the
issuer.</text>
</item></subclause></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id00DA7247E5AC4BE3BC75DDB0502815F4"><enum>972.</enum><header>Proxy
access</header>
<subsection id="idF18BD70EED6B4AB898EA207B93823C79"><enum>(a)</enum><header>Proxy
access</header><text>Section 14(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78n(a)) is amended—</text>
<paragraph id="id8C0ACD2CB80B4BBAB51822A07D83893A"><enum>(1)</enum><text>by
inserting <quote>(1)</quote> after <quote>(a)</quote>; and</text>
</paragraph><paragraph id="idFCAB0897696D485187A1915E69887778"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id3F4F50F0B2114D6AB87DDCF56C65D661" style="OLC">
<paragraph id="id781F54E2E3254C61B7CB46C0CEDA3632" indent="up1"><enum>(2)</enum><text>The rules and regulations prescribed
by the Commission under paragraph (1) may include—</text>
<subparagraph id="id351BE761C0FE432DA284B3918D7DE0A9"><enum>(A)</enum><text>a requirement that a solicitation of
proxy, consent, or authorization by (or on behalf of) an issuer include a
nominee submitted by a shareholder to serve on the board of directors of the
issuer; and</text>
</subparagraph><subparagraph id="id762D0A43EDC84673A2823539E9430F85"><enum>(B)</enum><text>a requirement that an issuer follow a
certain procedure in relation to a solicitation described in subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC1F4B264E4294B74AF53E36D3D3B3147"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Commission may issue rules permitting
the use by shareholders of proxy solicitation materials supplied by an issuer
of securities for the purpose of nominating individuals to membership on the
board of directors of the issuer, under such terms and conditions as the
Commission determines are in the interests of shareholders and for the
protection of investors.</text>
</subsection></section><section id="idC3A5D15A361B42188F10B78256CFE7B8"><enum>973.</enum><header>Disclosures
regarding chairman and CEO structures</header><text display-inline="no-display-inline">Section 14B of the Securities Exchange Act
of 1934, as added by section 971, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idC5A9E625822A4A90A9FED20CEA6FFF35" style="OLC">
<subsection id="id83BF0DDA5AC34CF29EE4043E8F162E72"><enum>(b)</enum><header>Disclosures
regarding chairman and CEO structures</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
enactment of this subsection, the Commission shall issue rules that require an
issuer to disclose in the annual proxy sent to investors the reasons why the
issuer has chosen—</text>
<paragraph id="idF6BD5EC1FAD045EB8694981297D9E36E"><enum>(1)</enum><text display-inline="yes-display-inline">the same person to serve as chairman of the
board of directors and chief executive officer (or in equivalent positions);
or</text>
</paragraph><paragraph id="idFFB7D4622268481B961D3255C406B425"><enum>(2)</enum><text display-inline="yes-display-inline">different individuals to serve as chairman
of the board of directors and chief executive officer (or in equivalent
positions of the
issuer).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="id1E3EB5958E864908B870C5607AD458EC"><enum>H</enum><header>Municipal
Securities</header>
<section id="id8C448E1A84D342349CCC8E48EF1943B9"><enum>975.</enum><header>Regulation of
municipal securities and changes to the board of the MSRB</header>
<subsection id="id29880281A43A441C9BAB67B9CE66F706"><enum>(a)</enum><header>Registration of
municipal securities dealers and municipal advisors</header><text display-inline="yes-display-inline">Section 15B(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–4(a)) is amended—</text>
<paragraph id="idFA6115A4F24C4B7B9FADACCC47C1F671"><enum>(1)</enum><text>in
paragraph (1)—</text>
<subparagraph id="id4E51854226B748469C98226E5F733E1D"><enum>(A)</enum><text>by inserting
<quote>(A)</quote> after <quote>(1)</quote>; and</text>
</subparagraph><subparagraph id="id4637D0047C4144BAA543E74D6A3303A9"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id90B4AFB406654B88A6E6619270A5EA53" style="OLC">
<subparagraph id="idECDAE337315F4781B44A98FC5C0A0808"><enum>(B)</enum><text>It shall be
unlawful for a municipal advisor to provide advice to or on behalf of a
municipal entity or obligated person with respect to municipal financial
products or the issuance of municipal securities, or to undertake a
solicitation of a municipal entity or obligated person, unless the municipal
advisor is registered in accordance with this
subsection.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id971C571ABE004542A4A0D2A78BCB47D2"><enum>(2)</enum><text>in
paragraph (2), by inserting <quote>or municipal advisor</quote> after
<quote>municipal securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="id4159D61C579645D48745D9E6F1CA6E48"><enum>(3)</enum><text>in
paragraph (3), by inserting <quote>or municipal advisor</quote> after
<quote>municipal securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="idB1E8551AD0134ADFA70792FCAFF23F23"><enum>(4)</enum><text>in
paragraph (4), by striking <quote>dealer, or municipal securities dealer or
class of brokers, dealers, or municipal securities dealers</quote> and
inserting <quote>dealer, municipal securities dealer, or municipal advisor, or
class of brokers, dealers, municipal securities dealers, or municipal
advisors</quote>; and</text>
</paragraph><paragraph id="id48E77F5EF2A140BC875B4094BD472E58"><enum>(5)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id33DCBD936089417BAE03FB44FBE0A911" style="OLC">
<paragraph id="idE1C8F36A627D42199C348949BBB6AE38"><enum>(5)</enum><text>No
municipal advisor shall make use of the mails or any means or instrumentality
of interstate commerce to provide advice to or on behalf of a municipal entity
or obligated person with respect to municipal financial products, the issuance
of municipal securities, or participation in the issuance of municipal
securities, or to undertake a solicitation of a municipal entity or obligated
person, in connection with which such municipal advisor engages in any
fraudulent, deceptive, or manipulative act or
practice.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id85D3517C73854EF1BE8BA64D204617ED"><enum>(b)</enum><header>Municipal
Securities Rulemaking Board</header><text>Section 15B(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o–4(b)) is amended—</text>
<paragraph id="idEF46F2B6B20146D8A99EE429C91DD015"><enum>(1)</enum><text>in
paragraph (1)—</text>
<subparagraph id="id698549399CDE4D6CB5F245182B7BBF05"><enum>(A)</enum><text>in the first
sentence, by striking <quote>Not later than</quote> and all that follows
through <quote>appointed by the Commission</quote> and inserting <quote>The
Municipal Securities Rulemaking Board shall be composed of 15 members, or such
other number of members as specified by rules of the Board pursuant to
paragraph (2)(B),</quote>;</text>
</subparagraph><subparagraph id="id66A284A6E91F4E9FBF7925C1A5E2C152"><enum>(B)</enum><text>by striking the
second sentence and inserting the following: <quote>The members of the Board
shall serve as members for a term of 3 years or for such other terms as
specified by rules of the Board pursuant to paragraph (2)(B), and shall consist
of (A) 8 individuals who are not associated with any broker, dealer, municipal
securities dealer, or municipal advisor (other than by reason of being under
common control with, or indirectly controlling, any broker or dealer which is
not a municipal securities broker or municipal securities dealer), at least 1
of whom shall be representative of institutional or retail investors in
municipal securities, at least 1 of whom shall be representative of municipal
entities, and at least 1 of whom shall be a member of the public with knowledge
of or experience in the municipal industry (which members are hereinafter
referred to as <quote>public representatives</quote>); and (B) 7 individuals
who are associated with a broker, dealer, municipal securities dealer, or
municipal advisor, including at least 1 individual who is associated with and
representative of brokers, dealers, or municipal securities dealers that are
not banks or subsidiaries or departments or divisions of banks (which members
are hereinafter referred to as <quote>broker-dealer representatives</quote>),
at least 1 individual who is associated with and representative of municipal
securities dealers which are banks or subsidiaries or departments or divisions
of banks (which members are hereinafter referred to as <quote>bank
representatives</quote>), and at least 1 individual who is associated with a
municipal advisor (which member is hereinafter referred to as the
<quote>advisor representative</quote>).</quote>; and</text>
</subparagraph><subparagraph id="id1F459C12F3CB48BFB02EF0CA9FF3580D"><enum>(C)</enum><text>in the third
sentence, by striking <quote>initial</quote>;</text>
</subparagraph></paragraph><paragraph id="idF8DBE3ADC5F44CD0B10A9C1503D2FDDB"><enum>(2)</enum><text>in
paragraph (2)—</text>
<subparagraph id="idA8D4408AF8FC4313A68764FF92169E79"><enum>(A)</enum><text>in the matter
preceding subparagraph (A)—</text>
<clause id="id6FB1A81222384CA298D66B6C380D7E2F"><enum>(i)</enum><text>by
inserting before the period at the end of the first sentence the following:
<quote>and advice provided to or on behalf of municipal entities or obligated
persons by brokers, dealers, municipal securities dealers, and municipal
advisors with respect to municipal financial products, the issuance of
municipal securities, or participation in the issuance of municipal securities,
and solicitations of municipal entities or obligated persons undertaken by
brokers, dealers, municipal securities dealers, and municipal advisors</quote>;
and</text>
</clause><clause id="id2CCC8FAD88C343A18896094A60AEB6DE"><enum>(ii)</enum><text>by
striking the second sentence;</text>
</clause></subparagraph><subparagraph commented="no" id="id18FDBF7E5EA84FAEBA680369BA1B45BF"><enum>(B)</enum><text>in subparagraph
(A)—</text>
<clause commented="no" id="id72BA3720D99A410A95684E117CCEB3D2"><enum>(i)</enum><text>in the matter
preceding clause (i)—</text>
<subclause commented="no" id="id8020394041CB499C8EAA489BF58DB112"><enum>(I)</enum><text>by inserting
<quote>, and no broker, dealer, municipal securities dealer, or municipal
advisor shall provide advice to or on behalf of a municipal entity or obligated
person with respect to municipal financial products, the issuance of municipal
securities, or participation in the issuance of municipal securities</quote>
after <quote>sale of, any municipal security</quote>; and</text>
</subclause><subclause commented="no" id="id63BAEEA2240C4308B8BD1979A57EFD1E"><enum>(II)</enum><text>by inserting
<quote>and municipal entities or obligated persons</quote> after
<quote>protection of investors</quote>;</text>
</subclause></clause><clause commented="no" id="id1ADC51E9B6144E6B8749A8FF74583AE3"><enum>(ii)</enum><text>in clause (i),
by striking <quote>municipal securities brokers and municipal securities
dealers</quote> each place that term appears and inserting <quote>municipal
securities brokers, municipal securities dealers, and municipal
advisors</quote>;</text>
</clause><clause commented="no" id="id60E6C8CFC439431E8BB07B7F8BF13264"><enum>(iii)</enum><text>in clause (ii),
by adding <quote>and</quote> at the end;</text>
</clause><clause commented="no" id="id33C1CE9F6E9845FAA3BACB41F3B41C6E"><enum>(iv)</enum><text>in clause (iii),
by striking <quote>; and</quote> and inserting a period; and</text>
</clause><clause commented="no" id="id1FFA009DBC4D4F91A58BC94AF9B6EEC7"><enum>(v)</enum><text>by striking
clause (iv);</text>
</clause></subparagraph><subparagraph commented="no" id="id17FD20A6176C422F93B4668FD0DDE9F8"><enum>(C)</enum><text>in subparagraph
(B), by striking <quote>nominations and elections</quote> and all that follows
through <quote>specify</quote> and inserting <quote>nominations and elections
of public representatives, broker-dealer representatives, bank representatives,
and advisor representatives. Such rules shall provide that the membership of
the Board shall at all times be as evenly divided in number as possible between
entities or individuals who are subject to regulation by the Board and entities
or individuals not subject to regulation by the Board, provided, however, that
a majority of the members of the Board shall at all times be public
representatives. Such rules shall also specify</quote>;</text>
</subparagraph><subparagraph commented="no" id="idEB2959A523634D228301E111DF9637F6"><enum>(D)</enum><text>in subparagraph
(C)—</text>
<clause commented="no" id="id0C7EE33596A349D98C12CAF4B6BFFEBC"><enum>(i)</enum><text>by inserting
<quote>and municipal financial products</quote> after <quote>municipal
securities</quote> the first two times that term appears;</text>
</clause><clause commented="no" id="idF1DB807121B544738134FC48C88E9181"><enum>(ii)</enum><text>by inserting
<quote>, municipal entities, obligated persons,</quote> before <quote>and the
public interest</quote>;</text>
</clause><clause commented="no" id="id3D172D9AD56F4BF68BB573EE6F15D546"><enum>(iii)</enum><text>by striking
<quote>between</quote> and inserting <quote>among</quote>;</text>
</clause><clause commented="no" id="id945042D940E240329122BCB6161F0526"><enum>(iv)</enum><text>by striking
<quote>issuers, municipal securities brokers, or municipal securities dealers,
to fix</quote> and inserting <quote>municipal entities, obligated persons,
municipal securities brokers, municipal securities dealers, or municipal
advisors, to fix</quote>; and</text>
</clause><clause id="ID455869380fd443a2b2a6b0b206160f69"><enum>(v)</enum><text>by
striking <quote>brokers or municipal securities dealers, to regulate</quote>
and inserting <quote>brokers, municipal securities dealers, or municipal
advisors, to regulate</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="id3CFECE90588E4C5B8D795CBF8CED510B"><enum>(E)</enum><text>in subparagraph
(D)—</text>
<clause commented="no" id="id33422E2A36AF4A3C85259242A4027D74"><enum>(i)</enum><text>by inserting
<quote>and advice concerning municipal financial products</quote> after
<quote>transactions in municipal securities</quote>;</text>
</clause><clause commented="no" id="id224B4DA463B0451D861A701F6AC94960"><enum>(ii)</enum><text>by striking
<quote>That no</quote> and inserting <quote>that no</quote>;</text>
</clause><clause commented="no" id="id543B433ED87E40EF8681AC7431DBAD09"><enum>(iii)</enum><text>by inserting
<quote>municipal advisor,</quote> before <quote>or person associated</quote>;
and</text>
</clause><clause commented="no" id="idD4FCB93A6664491B8C70F2E1F09DBDFB"><enum>(iv)</enum><text>by striking
<quote>a municipal securities broker or municipal securities dealer may be
compelled</quote> and inserting <quote>a municipal securities broker, municipal
securities dealer, or municipal advisor may be compelled</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="id98879FC06E12471E9CD1F0A602627C56"><enum>(F)</enum><text>in subparagraph
(E)—</text>
<clause commented="no" id="idAFD3BCEC95484E9E9B32E89EE88DA1BF"><enum>(i)</enum><text>by striking
<quote>municipal securities brokers and municipal securities dealers</quote>
and inserting <quote>municipal securities brokers, municipal securities
dealers, and municipal advisors</quote>; and</text>
</clause><clause commented="no" id="idEC15368134924B07A122F31B88511477"><enum>(ii)</enum><text>by striking
<quote>municipal securities broker or municipal securities dealer</quote> and
inserting <quote>municipal securities broker, municipal securities dealer, or
municipal advisor</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="id0564EAED02DE4172AE0D3BDCAE415468"><enum>(G)</enum><text>in subparagraph
(G), by striking <quote>municipal securities brokers and municipal securities
dealers</quote> and inserting <quote>municipal securities brokers, municipal
securities dealers, and municipal advisors</quote>;</text>
</subparagraph><subparagraph commented="no" id="id599C4F5A42D042CFAFAC2C2DF571D538"><enum>(H)</enum><text>in subparagraph
(J)—</text>
<clause commented="no" id="id5404BEB25E4F486992DBD1BD6AAD5EFA"><enum>(i)</enum><text>by striking
<quote>municipal securities broker and each municipal securities dealer</quote>
and inserting <quote>municipal securities broker, municipal securities dealer,
and municipal advisor</quote>; and</text>
</clause><clause commented="no" id="id169BCFE064DA477BA5CC1284661EF7B3"><enum>(ii)</enum><text>by striking the
period at the end of the second sentence and inserting <quote>, which may
include charges for failure to submit to the Board required information or
documents to any information system operated by the Board in a full, accurate,
or timely manner, or any other failure to comply with the rules of the
Board.</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="id1B54D764386A41A39857928DF4159514"><enum>(I)</enum><text>in subparagraph
(K)—</text>
<clause commented="no" id="idE7EB0AF6932C455E94F5276517BB607A"><enum>(i)</enum><text>by inserting
<quote>broker, dealer, or </quote> before <quote>municipal securities
dealer</quote> each place that term appears; and</text>
</clause><clause commented="no" id="id611D0679063848A49B2AC139F4174B77"><enum>(ii)</enum><text>by striking
<quote>municipal securities investment portfolio</quote> and inserting
<quote>related account of a broker, dealer, or municipal securities
dealer</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="idC6A2CB273386407CA0AC8050B2A5F27D"><enum>(J)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8B12783EABF74DC8860476592B2F14CC" style="OLC">
<subparagraph commented="no" id="id276D11AD10404AE88DC4C8818581EEC6"><enum>(L)</enum><text>provide
continuing education requirements for municipal advisors.</text>
</subparagraph><subparagraph commented="no" id="id0EE5EEA3D4AE4AE38D8B38369D206E5D"><enum>(M)</enum><text>provide
professional standards.</text>
</subparagraph><subparagraph commented="no" id="id484A36C5E4A842B78104324F45F74307"><enum>(N)</enum><text>not impose a
regulatory burden on small municipal advisors that is not necessary or
appropriate in the public interest and for the protection of investors,
municipal entities, and obligated
persons.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="id7B51642423044C63ACA784DEA2309D65"><enum>(3)</enum><text>by redesignating
paragraph (3) as paragraph (7); and</text>
</paragraph><paragraph commented="no" id="id0208FFEB22214040B996628925A6ACCE"><enum>(4)</enum><text>by inserting
after paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="id52A07DC716174997BA5A6E44C2BFD6DB" style="OLC">
<paragraph id="idD7B1413DAE09489AA81538E5E5EFB3AE"><enum>(3)</enum><text>The Board, in
conjunction with or on behalf of any Federal financial regulator or
self-regulatory organization, may—</text>
<subparagraph id="id88A954B695A3482A832FA93A241F978E"><enum>(A)</enum><text>establish
information systems; and</text>
</subparagraph><subparagraph id="id049C82CE312F43279DA840283A30AE29"><enum>(B)</enum><text>assess such
reasonable fees and charges for the submission of information to, or the
receipt of information from, such systems from any persons which systems may be
developed for the purposes of serving as a repository of information from
municipal market participants or otherwise in furtherance of the purposes of
the Board, a Federal financial regulator, or a self-regulatory
organization.</text>
</subparagraph></paragraph><paragraph id="idC108368F3CC14290B78AF92CF44B447F"><enum>(4)</enum><text>The Board shall
provide guidance and assistance in the enforcement of, and examination for,
compliance with the rules of the Board to the Commission, a registered
securities association under section 15A, or any other appropriate regulatory
agency, as
applicable.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idBAAEE0001E0C4EAFB79B35748FBABC95"><enum>(c)</enum><header>Discipline of
dealers and municipal advisors and other matters</header><text>Section 15B(c)
of the Securities Exchange Act of 1934 (15 U.S.C. 78o–4(c)) is amended—</text>
<paragraph id="id45577B869FC342AEB560495012CE02C4"><enum>(1)</enum><text>in
paragraph (1), by inserting <quote>, and no broker, dealer, municipal
securities dealer, or municipal advisor shall make use of the mails or any
means or instrumentality of interstate commerce to provide advice to or on
behalf of a municipal entity or obligated person with respect to municipal
financial products, the issuance of municipal securities, or participation in
the issuance of municipal securities, or to undertake a solicitation of a
municipal entity or obligated person,</quote> after <quote>any municipal
security</quote>;</text>
</paragraph><paragraph id="idD39193B5789741939E5261F73ED30F46"><enum>(2)</enum><text>in
paragraph (2), by inserting <quote>or municipal advisor</quote> after
<quote>municipal securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="idFCE75951C2384187ABF32BAC3ED9FEE9"><enum>(3)</enum><text>in
paragraph (3)—</text>
<subparagraph id="id2EB5307BBA30433CA5609B4A2A9409CB"><enum>(A)</enum><text>by inserting
<quote>or municipal entities or obligated person</quote> after
<quote>protection of investors</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="id05AA0A7FF8B4419F9ACC26F5644B4F30"><enum>(B)</enum><text>by inserting
<quote>or municipal advisor</quote> after <quote>municipal securities
dealer</quote> each place that term appears;</text>
</subparagraph></paragraph><paragraph id="id0B598FCAB86D4CB481BB89833D1E926F"><enum>(4)</enum><text>in
paragraph (4), by inserting <quote>or municipal advisor</quote> after
<quote>municipal securities dealer or obligated person</quote> each place that
term appears;</text>
</paragraph><paragraph id="idEFE3C20F03AC42E6A3E0593AAB753EDA"><enum>(5)</enum><text>in
paragraph (6)(B), by inserting <quote>or municipal entities</quote> after
<quote>protection of investors</quote>;</text>
</paragraph><paragraph id="id03AB2E7A737D4CF7A3C01B7A15A361D4"><enum>(6)</enum><text>in
paragraph (7)—</text>
<subparagraph id="idCFB3229D4677484EA2179536E6ACEDA0"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="id430FDBD335E74CB7968070AC1CE43BC9"><enum>(i)</enum><text>in
clause (i), by striking <quote>; and</quote> and inserting a semicolon;</text>
</clause><clause id="id9222ABE0EDC24344A20882195CB009E2"><enum>(ii)</enum><text>in
clause (ii), by striking the period and inserting <quote>; and</quote>;
and</text>
</clause><clause id="id456707D4DEBC4CF6A988E452836B93A0"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idBCEDF76026D34DEF952CBB3DBD511FD4" style="OLC">
<clause id="idBBC04456D95C4502A6D941BA58910D88"><enum>(iii)</enum><text>the
Commission, or its designee, in the case of municipal
advisors.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id4AA89F26FA964BCEA9A60DFDF75354A2"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>or municipal entities or obligated person</quote>
after <quote>protection of investors</quote>; and</text>
</subparagraph></paragraph><paragraph id="id8E880A62DB634B77842C24ED698C07E0"><enum>(7)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id28519B079639485DA69752EA57B30648" style="OLC">
<paragraph id="id206B83F7CEF746D48ABB57E54F743AE3"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id0089B59797F84A6780A79C2ECE840BFB"><enum>(A)</enum><text>Fines collected by the
Commission for violations of the rules of the Board shall be equally divided
between the Commission and the Board.</text>
</subparagraph><subparagraph id="id4B8BCBCD3EF8406EB183D0F8054F8F40" indent="up1"><enum>(B)</enum><text>Fines collected by a registered
securities association under section 15A(7) with respect to violations of the
rules of the Board shall be accounted for by such registered securities
association separately from other fines collected under section 15A(7) and
shall be allocated between such registered securities association and the Board
at the direction of the
Commission.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id09951380FBEC44EFA87A05740F9DC1B4"><enum>(d)</enum><header>Issuance of
municipal securities</header><text>Section 15B(d)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–4(d)) is amended—</text>
<paragraph id="id32A2B11D95284B3DB2AA4E533BC91874"><enum>(1)</enum><text>by
striking <quote>through a municipal securities broker or municipal securities
dealer or otherwise</quote> and inserting <quote>through a municipal securities
broker, municipal securities dealer, municipal advisor, or otherwise</quote>;
and</text>
</paragraph><paragraph id="idBEC624A0E25341A5988A95FD31019A54"><enum>(2)</enum><text>by
inserting <quote>or municipal advisors</quote> before <quote>to
furnish</quote>.</text>
</paragraph></subsection><subsection id="id946212BAA05D43F0BA0E0299D36299F8"><enum>(e)</enum><header>Definitions</header><text>Section
15B of the Securities Exchange Act of 1934 (15 U.S.C. 78o–4) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idDA8F1F1D44B3416996FA6CEE805E2D2F" style="OLC">
<subsection id="id923B2392372D4C068D0B6FDACFE0BBC4"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="idADE267286A614A66B1F45A796944E277"><enum>(1)</enum><text>the term
<term>Board</term> means the Municipal Securities Rulemaking Board established
under subsection (b)(1);</text>
</paragraph><paragraph id="id48BCD317B9804433B4EC6BFE20FB35B2"><enum>(2)</enum><text>the term
<term>guaranteed investment contract</term> includes any investment that has
specified withdrawal or reinvestment provisions and a specifically negotiated
or bid interest rate, and also includes any agreement to supply investments on
2 or more future dates, such as a forward supply contract;</text>
</paragraph><paragraph id="idC92FBEF8918A4163AB17C5F75FCF5DDB"><enum>(3)</enum><text>the term
<term>investment strategies</term> includes plans or programs for the
investment of the proceeds of municipal securities that are not municipal
derivatives, guaranteed investment contracts, and the recommendation of and
brokerage of municipal escrow investments;</text>
</paragraph><paragraph id="idCBD65A4AD7314225B723EEFECA9E113F"><enum>(4)</enum><text>the term
<term>municipal advisor</term>—</text>
<subparagraph id="idA80D7F670B5345ECA0A91BCB359ACF0D"><enum>(A)</enum><text>means a person
(who is not a municipal entity or an employee of a municipal entity)
that—</text>
<clause id="id671C074AB24F4A268E48FB6AB1B5C6A7"><enum>(i)</enum><text>provides advice
to or on behalf of a municipal entity or obligated person with respect to
municipal financial products or the issuance of municipal securities, including
advice with respect to the structure, timing, terms, and other similar matters
concerning such financial products or issues;</text>
</clause><clause id="id3B640E39BC0C40D8BD417F4C9707650D"><enum>(ii)</enum><text>participates in
the issuance of municipal securities; or</text>
</clause><clause commented="no" id="id343CFA141B574A9E9565CADBECC721A0"><enum>(iii)</enum><text>undertakes a
solicitation of a municipal entity;</text>
</clause></subparagraph><subparagraph commented="no" id="idC565A54EFDC8420D89E992E05CC52CA8"><enum>(B)</enum><text>includes
financial advisors, guaranteed investment contract brokers, third-party
marketers, placement agents, solicitors, finders, and swap advisors, if such
persons are described in any of clauses (i) through (iii) of subparagraph (A);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id15A265C397E34DD9BD898471DC859964"><enum>(C)</enum><text>does not include
a broker, dealer, or municipal securities dealer serving as an underwriter (as
defined in section 2(a)(11) of the Securities Act of 1933) (15 U.S.C.
77b(a)(11)), any investment adviser registered under the Investment Advisers
Act of 1940, or persons associated with such investment advisers who are
providing investment advice, attorneys offering legal advice or providing
services that are of a traditional legal nature, or engineers providing
engineering advice;</text>
</subparagraph></paragraph><paragraph id="id17C188045B144186A1CB68378672F5AE"><enum>(5)</enum><text>the term
<term>municipal derivative</term> means any financial instrument or contract
designed to hedge a risk (including interest rate swaps, basis swaps, credit
default swaps, caps, floors, and collars);</text>
</paragraph><paragraph id="id1239031D51ED454A894FCDCF012539DC"><enum>(6)</enum><text>the term
<term>municipal financial product</term> means municipal derivatives,
guaranteed investment contracts, and investment strategies;</text>
</paragraph><paragraph id="idFE1094D9AD2048BA875C51A56D490CE7"><enum>(7)</enum><text>the term
<term>rules of the Board</term> means the rules proposed and adopted by the
Board under subsection (b)(2);</text>
</paragraph><paragraph id="idC5DC620713184D13BEA3E4D7614A2DDD"><enum>(8)</enum><text>the term
<quote>person associated with a municipal advisor</quote> or <quote>associated
person of an advisor</quote> means—</text>
<subparagraph id="idCDF1311474FF463ABD5FDADCCCA59F51"><enum>(A)</enum><text>any partner,
officer, director, or branch manager of such municipal advisor (or any person
occupying a similar status or performing similar functions);</text>
</subparagraph><subparagraph id="id886CAAFC0BC34ABAA3DC3F6AE0FBD70B"><enum>(B)</enum><text>any other
employee of such municipal advisor who is engaged in the management, direction,
supervision, or performance of any activities relating to the provision of
advice to or on behalf of a municipal entity or obligated person with respect
to municipal financial products, the issuance of municipal securities, or
participation in the issuance of municipal securities; and</text>
</subparagraph><subparagraph id="id0602C877E2FB49CBA3723C33A0A67D15"><enum>(C)</enum><text>any person
directly or indirectly controlling, controlled by, or under common control with
such municipal advisor;</text>
</subparagraph></paragraph><paragraph id="id5F8A57C6385C4330974CA06700075EC9"><enum>(9)</enum><text>the term
<term>municipal entity</term> means any State, political subdivision of a
State, or municipal corporate instrumentality of a State, including—</text>
<subparagraph id="id5209A470127D4697AF2E7F4568A2302F"><enum>(A)</enum><text>any agency,
authority, or instrumentality of the State, political subdivision, or municipal
corporate instrumentality;</text>
</subparagraph><subparagraph id="id76014FA69EE142A5AEBB1EB628FC1213"><enum>(B)</enum><text>any plan,
program, or pool of assets sponsored or established by the State, political
subdivision, or municipal corporate instrumentality or any agency, authority,
or instrumentality thereof; and</text>
</subparagraph><subparagraph id="idF7F8BB1F4A5D43CD921F7A0AB7ADACE1"><enum>(C)</enum><text>any other issuer
of municipal securities;</text>
</subparagraph></paragraph><paragraph id="id02A60A6CD276478DB6898CF948B41925"><enum>(10)</enum><text>the term
<term>solicitation of a municipal entity or obligated person</term> means a
direct or indirect communication with a municipal entity or obligated person
made by a person, for direct or indirect compensation, on behalf of a broker,
dealer, municipal securities dealer, municipal advisor, or investment adviser
(as defined in section 202 of the Investment Advisers Act of 1940) that does
not control, is not controlled by, or is not under common control with the
person undertaking such solicitation for the purpose of obtaining or retaining
an engagement by a municipal entity or obligated person of a broker, dealer,
municipal securities dealer, or municipal advisor for or in connection with
municipal financial products, the issuance of municipal securities, or
participation in the issuance of municipal securities, or of an investment
adviser to provide investment advisory services to or on behalf of a municipal
entity; and</text>
</paragraph><paragraph id="id2113A60069004657A59F34DFF27F36ED"><enum>(11)</enum><text>the term
<term>obligated person</term> means any person, including an issuer of
municipal securities, who is either generally or through an enterprise, fund,
or account of such person, committed by contract or other arrangement to
support the payment of all or part of the obligations on the municipal
securities to be sold in an offering of municipal
securities.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF924E96D923A49F088508E8CB688DFAB"><enum>(f)</enum><header>Registered
securities association</header><text>Section 15A(b) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–3(b)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id3F0F864B8A2D45E58CB91F60D49D309C" style="OLC">
<paragraph id="idD030951FF027414B9EFD660EBC5E06A9"><enum>(15)</enum><text>The rules of the
association provide that the association shall—</text>
<subparagraph id="id185041EA6E974B11A6F49564DED0738C"><enum>(A)</enum><text>request guidance
from the Municipal Securities Rulemaking Board in interpretation of the rules
of the Municipal Securities Rulemaking Board; and</text>
</subparagraph><subparagraph id="id32FA36D02FF944B389E8127F9B57B8DD"><enum>(B)</enum><text>provide
information to the Municipal Securities Rulemaking Board about the enforcement
actions and examinations of the association under section 15B(b)(2)(E), so that
the Municipal Securities Rulemaking Board may—</text>
<clause id="id91DED08560944012A805FAEA4B0AAB9C"><enum>(i)</enum><text>assist in such
enforcement actions and examinations; and</text>
</clause><clause id="id7BBC36FC266848BE965B407E3322C6FC"><enum>(ii)</enum><text>evaluate the
ongoing effectiveness of the rules of the
Board.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID70414f0139fb4d17989e53a47fcc82f1"><enum>(g)</enum><header>Registration
and regulation of brokers and dealers</header><text>Section 15 of the
Securities Exchange Act of 1934 is amended—</text>
<paragraph id="id220E8E8716E34761B8D4018B72215E71"><enum>(1)</enum><text>in
subsection (b)(4), by inserting <quote>municipal advisor,</quote> after
<quote>municipal securities dealer</quote> each place that term appears;
and</text>
</paragraph><paragraph id="id22E7070A56114910B19262D7CCF970CF"><enum>(2)</enum><text>in
subsection (c), by inserting <quote>broker, dealer, or</quote> before
<term>municipal securities dealer</term> each place that term appears.</text>
</paragraph></subsection><subsection id="IDefd03eee89d1465d8c4b496f58d283b9"><enum>(h)</enum><header>Accounts and
records, reports, examinations of exchanges, members, and
others</header><text>Section 17(a)(1) of the Securities Exchange Act of 1934 is
amended by inserting <quote>municipal advisor,</quote> after <quote>municipal
securities dealer</quote>.</text>
</subsection><subsection id="ID065f249851794938a45a96ec4ac528c3"><enum>(i)</enum><header>Savings
clause</header><text>Notwithstanding any provision of the Over-the-Counter
Derivatives Markets Act of 2010, or any amendment made pursuant to such Act,
the provisions of this section, and the amendments made pursuant to this
section, shall apply to any municipal derivative.</text>
</subsection><subsection id="id72A2C7B71AC842ADBAD1CBF572BA226C"><enum>(j)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on October 1, 2010.</text>
</subsection></section><section id="id9E007575A7054A7AAA1E866DC22D9099"><enum>976.</enum><header>Government
Accountability Office study of increased disclosure to investors</header>
<subsection id="id85D7E7799ACE4EE2B82EC899C29FD82E"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study and review of
the disclosure required to be made by issuers of municipal securities.</text>
</subsection><subsection id="id0AC5A6CB1FEE445FA09D3DE3E9EEE3F0"><enum>(b)</enum><header>Subjects for
evaluation</header><text>In conducting the study under subsection (a), the
Comptroller General of the United States shall—</text>
<paragraph id="idED07311FFD15421A89A6048CA6267917"><enum>(1)</enum><text>broadly
describe—</text>
<subparagraph id="id783912262AE2429A80C35537C8ECEA8D"><enum>(A)</enum><text>the size of the
municipal securities markets and the issuers and investors; and</text>
</subparagraph><subparagraph id="idFBB26F5710954835914FB24D255417F3"><enum>(B)</enum><text>the disclosures
provided by issuers to investors;</text>
</subparagraph></paragraph><paragraph id="id05AD1E1CA38448738AACFCB9C6E277E2"><enum>(2)</enum><text>compare the
amount, frequency, and quality of disclosures that issuers of municipal
securities are required by law to provide for the benefit of municipal
securities holders, including the amount of and frequency of disclosures
actually provided by issuers of municipal securities, with the amount of and
frequency of disclosures that issuers of corporate securities provide for the
benefit of corporate securities holders, taking into account the differences
between issuers of municipal securities and issuers of corporate
securities;</text>
</paragraph><paragraph id="id063EEE4FA7CE4ECA9DA0E8415F092203"><enum>(3)</enum><text>evaluate the
costs and benefits to various types of issuers of municipal securities of
requiring issuers of municipal bonds to provide additional financial
disclosures for the benefit of investors;</text>
</paragraph><paragraph id="id0E5D5A49E487451D9180B928B498B7D1"><enum>(4)</enum><text>evaluate the
potential benefit to investors from additional financial disclosures by issuers
of municipal bonds; and</text>
</paragraph><paragraph id="id22BB946789654463B64D17AA9D55D8D3"><enum>(5)</enum><text>make
recommendations relating to disclosure requirements for municipal issuers,
including the advisability of the repeal or retention of section 15B(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–4(d)) (commonly known as the
<quote>Tower Amendment</quote>).</text>
</paragraph></subsection><subsection id="id5996A36A512B4054A638DA0CFBD015EF"><enum>(c)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report to Congress on the results
of the study conducted under subsection (a), including recommendations for how
to improve disclosure by issuers of municipal securities.</text>
</subsection></section><section id="id9910161884D94AA8B06BB598C646B252"><enum>977.</enum><header>Government
Accountability Office study on the municipal securities markets</header>
<subsection id="id15A0412928854042BAEFB76A51C16B09"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study of the municipal
securities markets.</text>
</subsection><subsection id="id791ECEBE7D7F4702BFC09E6F9E6434D9"><enum>(b)</enum><header>Report</header><text>Not
later than 180 days after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives, with copies to the Special Committee
on Aging of the Senate and the Commission, on the results of the study
conducted under subsection (a), including—</text>
<paragraph commented="no" id="id363ACD987E2E4915A5D2F0E5D8F17371"><enum>(1)</enum><text>an analysis of
the mechanisms for trading, quality of trade executions, market transparency,
trade reporting, price discovery, settlement clearing, and credit
enhancements;</text>
</paragraph><paragraph id="idB29114B56CAC479FA9F111D6C639A13C"><enum>(2)</enum><text>the
needs of the markets and investors and the impact of recent innovations;</text>
</paragraph><paragraph id="idC440575AAE4A46FB88B7B557D7384523"><enum>(3)</enum><text>recommendations
for how to improve the transparency, efficiency, fairness, and liquidity of
trading in the municipal securities markets, including with reference to items
listed in paragraph (1); and</text>
</paragraph><paragraph id="idE276DBA7B20A401997D7999CF1208D90"><enum>(4)</enum><text>potential uses of
derivatives in the municipal securities markets.</text>
</paragraph></subsection><subsection id="idC923B78CA5CC435B978F905CD75127D6"><enum>(c)</enum><header>Responses</header><text>Not
later than 180 days after receipt of the report required under subsection (b),
the Commission shall submit a response to the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the Committee on Financial Services of the
House of Representatives, with a copy to the Special Committee on Aging of the
Senate, stating the actions the Commission has taken in response to the
recommendations contained in such report.</text>
</subsection></section><section id="id68B72732C4AA4B36AA26D1426D23BDB3"><enum>978.</enum><header>Study of
funding for Government Accounting Standards Board</header>
<subsection id="idC346039CCA97445989EFDB25B036B56A"><enum>(a)</enum><header>Study</header><text>The
Commission shall conduct a study that evaluates—</text>
<paragraph id="id2AA7827888F34F84A2A95F586544515F"><enum>(1)</enum><text>the
role and importance of the Government Accounting Standards Board in the
municipal securities markets;</text>
</paragraph><paragraph id="id426A2A009C9249B4A6ACF15BF5F1E275"><enum>(2)</enum><text>the
manner in which the Government Accounting Standards Board is funded, and how
such manner of funding affects the financial information available to
securities investors;</text>
</paragraph><paragraph id="id89B23D4E6E764226A78D677E07A57502"><enum>(3)</enum><text>the
advisability of changes to the manner in which the Government Accounting
Standards Board is funded; and</text>
</paragraph><paragraph id="idDC7F3DC55D584378B8C5491B11FD4992"><enum>(4)</enum><text>whether
legislative changes to the manner in which the Government Accounting Standards
Board is funded are necessary for the benefit of investors and in the public
interest.</text>
</paragraph></subsection><subsection id="id9D8168D3125C44B292418095D6950813"><enum>(b)</enum><header>Consultation</header><text>In
conducting the study required under subsection (a), the Commission shall
consult with State and local government financial officers.</text>
</subsection><subsection id="id0CC06491B00B4D02B70E7686AB409D8E"><enum>(c)</enum><header>Report</header><text>Not
later than 270 days after the date of enactment of this Act, the Commission
shall submit to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
a report on the study required under subsection (a).</text>
</subsection></section><section id="idA306172FB79F4A5C9879B7C9AD2F99AE"><enum>979.</enum><header>Commission
Office of Municipal Securities</header>
<subsection id="idB65967DA4FA54DC895FF4367A3FF4971"><enum>(a)</enum><header>In
general</header><text>There shall be in the Commission an Office of Municipal
Securities, which shall—</text>
<paragraph id="id908ACEA31BB94C51AF500E708F32577E"><enum>(1)</enum><text>administer the
rules of the Commission with respect to the practices of municipal securities
brokers and dealers, municipal securities advisors, municipal securities
investors, and municipal securities issuers; and</text>
</paragraph><paragraph id="id34C4D3A0938041B79D0A521C716424B9"><enum>(2)</enum><text>coordinate with
the Municipal Securities Rulemaking Board for rulemaking and enforcement
actions as required by law.</text>
</paragraph></subsection><subsection id="id28F0895A2CC1447F83CDD3243B3D68A4"><enum>(b)</enum><header>Director of the
Office</header><text>The head of the Office of Municipal Securities shall be
the Director, who shall report to the Chairman.</text>
</subsection><subsection id="id8F1B444B3AE0437D925AB1F7194DBBBA"><enum>(c)</enum><header>Staffing</header>
<paragraph id="id27E8B30652C64D15BEC121BD5DC7449A"><enum>(1)</enum><header>In
general</header><text>The Office of Municipal Securities shall be staffed
sufficiently to carry out the requirements of this section.</text>
</paragraph><paragraph id="idFB2E01DC46FC451EBAD8769F8708C38B"><enum>(2)</enum><header>Requirement</header><text>The
staff of the Office of Municipal Securities shall include individuals with
knowledge of and expertise in municipal finance.</text>
</paragraph></subsection></section></subtitle><subtitle id="idB5DCCF63F5A3444D959B63DEEC369E13"><enum>I</enum><header>Public Company
Accounting Oversight Board, portfolio margining, and other matters</header>
<section id="idA2998CC3EE73432F8173D2D31E959149"><enum>981.</enum><header>Authority to
share certain information with foreign authorities</header>
<subsection id="HCB420D8EE679417580D355D467520F44"><enum>(a)</enum><header>Definition</header><text display-inline="yes-display-inline">Section 2(a) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7201(a)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7175BD2A21334B839DE9CF9B197CBAE9" style="OLC">
<paragraph id="H03B3EE54C84C4567B74FB6070317FAE9"><enum>(17)</enum><header>Foreign auditor
oversight authority</header><text display-inline="yes-display-inline">The term
<term>foreign auditor oversight authority</term> means any governmental body or
other entity empowered by a foreign government to conduct inspections of public
accounting firms or otherwise to administer or enforce laws related to the
regulation of public accounting
firms.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB8CD1500C0CA4FCE81624309E0746D7D"><enum>(b)</enum><header>Availability To
Share information</header><text>Section 105(b)(5) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7215(b)(5)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA55134E1F4CE4CB7B51E99648FB66187" style="OLC">
<subparagraph id="H790A9C3D06614B85B73D3DA776720477"><enum>(C)</enum><header>Availability to
foreign oversight authorities</header><text display-inline="yes-display-inline">Without the loss of its status as
confidential and privileged in the hands of the Board, all information referred
to in subparagraph (A) that relates to a public accounting firm that a foreign
government has empowered a foreign auditor oversight authority to inspect or
otherwise enforce laws with respect to, may, at the discretion of the Board, be
made available to the foreign auditor oversight authority, if—</text>
<clause id="id6EF822502BE944DFBB777FDC695A3D76"><enum>(i)</enum><text display-inline="yes-display-inline">the Board finds that it is necessary to
accomplish the purposes of this Act or to protect investors;</text>
</clause><clause id="id49A2DB9812964EFDBE2C53E382877974"><enum>(ii)</enum><text display-inline="yes-display-inline">the foreign auditor oversight authority
provides—</text>
<subclause id="idF0CDC4A747E3439A9A7651534FBE0DF6"><enum>(I)</enum><text display-inline="yes-display-inline">such assurances of confidentiality as the
Board may request;</text>
</subclause><subclause id="idACC8FDE83B5A42C483AFB8615D44C975"><enum>(II)</enum><text>a
description of the applicable information systems and controls of the foreign
auditor oversight authority; and</text>
</subclause><subclause id="id8D9D286611A14F15AA169398762D9083"><enum>(III)</enum><text>a description
of the laws and regulations of the foreign government of the foreign auditor
oversight authority that are relevant to information access; and</text>
</subclause></clause><clause id="id072FA7490CB049FBBD8BD63A8D3A7D34"><enum>(iii)</enum><text display-inline="yes-display-inline">the Board determines that it is appropriate
to share such
information.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA4BF4CA509F64304B10BCB3A17F4288B"><enum>(c)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section
105(b)(5)(A) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(A)) is
amended by striking <quote>subparagraph (B)</quote> and inserting
<quote>subparagraphs (B) and (C)</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id51187836D9ED4E96BB65B2757B568B83"><enum>982.</enum><header>Oversight of
brokers and dealers</header>
<subsection id="HDBD76099A3064BFA86D0C61633A972AC"><enum>(a)</enum><header>Definitions</header>
<paragraph id="idE9B29CABA23945169B29AE28521773ED"><enum>(1)</enum><header>Definitions
amended</header><text display-inline="yes-display-inline">Title I of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.) is amended by adding at the
end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HFAC8E95652874BF7B3E3228804096D68" style="OLC">
<section id="H1E97962D5D004A7390DE04629DBABB43"><enum>110.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this title, the
following definitions shall apply:</text>
<paragraph id="H1E359FA8BE494E5D842B7A8B8998B21B"><enum>(1)</enum><header>Audit</header><text display-inline="yes-display-inline">The term <term>audit</term> means an
examination of the financial statements, reports, documents, procedures,
controls, or notices of any issuer, broker, or dealer by an independent public
accounting firm in accordance with the rules of the Board or the Commission,
for the purpose of expressing an opinion on the financial statements or
providing an audit report.</text>
</paragraph><paragraph id="H9852351EA2B04441B8D98418E1DF2C9D"><enum>(2)</enum><header>Audit
report</header><text display-inline="yes-display-inline">The term <term>audit
report</term> means a document, report, notice, or other record—</text>
<subparagraph id="HA3381372E17648D99879184BCDC68DD6"><enum>(A)</enum><text>prepared following
an audit performed for purposes of compliance by an issuer, broker, or dealer
with the requirements of the securities laws; and</text>
</subparagraph><subparagraph id="HD1E7764B95224E68879CFD30FF05D5A8"><enum>(B)</enum><text>in which a public
accounting firm either—</text>
<clause id="HABEAA7D1B1004CC58363DC2025C349E0"><enum>(i)</enum><text>sets
forth the opinion of that firm regarding a financial statement, report, notice,
or other document, procedures, or controls; or</text>
</clause><clause id="H065FBEE2E0104720AA99182E42D84625"><enum>(ii)</enum><text>asserts that no
such opinion can be expressed.</text>
</clause></subparagraph></paragraph><paragraph id="HDB567514C6024F98ADE17DDD1DF94150"><enum>(3)</enum><header>Broker</header><text display-inline="yes-display-inline">The term <term>broker</term> means a broker
(as such term is defined in section 3(a)(4) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(4))) that is required to file a balance sheet, income
statement, or other financial statement under section 17(e)(1)(A) of such Act
(15 U.S.C. 78q(e)(1)(A)), where such balance sheet, income statement, or
financial statement is required to be certified by a registered public
accounting firm.</text>
</paragraph><paragraph id="H3C78EEE692F34E6A9E40A1904ACA2959"><enum>(4)</enum><header>Dealer</header><text display-inline="yes-display-inline">The term <quote>dealer</quote> means a
dealer (as such term is defined in section 3(a)(5) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(5))) that is required to file a balance sheet,
income statement, or other financial statement under section 17(e)(1)(A) of
such Act (15 U.S.C. 78q(e)(1)(A)), where such balance sheet, income statement,
or financial statement is required to be certified by a registered public
accounting firm.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H01D1A7D8C8B4423185281654E531A9C4"><enum>(5)</enum><header>Professional
standards</header><text>The term <term>professional standards</term>
means—</text>
<subparagraph id="H966BC00444684F05B2736A736C0F5E8F"><enum>(A)</enum><text>accounting
principles that are—</text>
<clause id="H884C77097EA344088ADEFD9CD08AA042"><enum>(i)</enum><text>established by the
standard setting body described in section 19(b) of the Securities Act of 1933,
as amended by this Act, or prescribed by the Commission under section 19(a) of
that Act (15 U.S.C. 17a(s)) or section 13(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78a(m)); and</text>
</clause><clause id="H3FB916E173554CBE90E6434FE73EB5C3"><enum>(ii)</enum><text>relevant to audit
reports for particular issuers, brokers, or dealers, or dealt with in the
quality control system of a particular registered public accounting firm;
and</text>
</clause></subparagraph><subparagraph id="H1DEE94C334FD4B36846B74DFC1B21AB6"><enum>(B)</enum><text>auditing
standards, standards for attestation engagements, quality control policies and
procedures, ethical and competency standards, and independence standards
(including rules implementing title II) that the Board or the Commission
determines—</text>
<clause id="H0ADBF1D0C0434A57973F2267C288546B"><enum>(i)</enum><text>relate
to the preparation or issuance of audit reports for issuers, brokers, or
dealers; and</text>
</clause><clause id="H63B022C14D4C44EBBE002D0FA4166213"><enum>(ii)</enum><text>are
established or adopted by the Board under section 103(a), or are promulgated as
rules of the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="HF176F0498E6D4BB18AAE49117D412AEE"><enum>(6)</enum><header>Self-regulatory
organization</header><text display-inline="yes-display-inline">The term
<quote>self-regulatory organization</quote> has the same meaning as in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id378A7B61ABC44D40BFB3D272DB02D955"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 2(a) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7201(a)) is amended in the matter preceding paragraph (1), by striking
<quote>In this</quote> and inserting <quote>Except as otherwise specifically
provided in this Act, in this</quote>.</text>
</paragraph></subsection><subsection id="H7F766004CA6B4BF9B6C3FB342F916B84"><enum>(b)</enum><header>Establishment
and Administration of the Public Company Accounting Oversight
Board</header><text>Section 101 of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7211) is amended—</text>
<paragraph id="HDE133776D6C44BA495FA5D37945F7000"><enum>(1)</enum><text>by
striking <quote>issuers</quote> each place that term appears and inserting
<quote>issuers, brokers, and dealers</quote>; and</text>
</paragraph><paragraph id="HE22D69889B8E4A1388F7D666FBFFBC9B"><enum>(2)</enum><text>in
subsection (a)—</text>
<subparagraph id="idBA7B14B055A54F08A5A98060EA77E7E1"><enum>(A)</enum><text>by striking
<quote>public companies</quote> and inserting <quote>companies</quote>;
and</text>
</subparagraph><subparagraph id="HFFCF5360E8974F65960FE77B88D0985F"><enum>(B)</enum><text>by
striking <quote>for companies the securities of which are sold to, and held by
and for, public investors</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H0CDAA66D6DE142B298274088D7032E1C"><enum>(c)</enum><header>Registration
with the Board</header><text display-inline="yes-display-inline">Section 102 of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7212) is amended—</text>
<paragraph id="HF3CBEEF1CC3342909E17BD7ACF9C3FDF"><enum>(1)</enum><text>in
subsection (a)—</text>
<subparagraph id="idBE2A9AD24E264C3598B31B9149BC8D5E"><enum>(A)</enum><text>by striking
<quote>Beginning 180</quote> and all that follows through <quote>101(d),
it</quote> and inserting <quote>It</quote>; and</text>
</subparagraph><subparagraph id="id64DA63A63D514CC8A3E8C3A379AF675A"><enum>(B)</enum><text>by striking
<quote>issuer</quote> and inserting <quote>issuer, broker, or
dealer</quote>;</text>
</subparagraph></paragraph><paragraph id="idDA574DC7B303494A9BBBECD0E3B03416"><enum>(2)</enum><text>in
subsection (b)—</text>
<subparagraph id="id6B54B9D3DBE0404ABE0018FA97939F9E"><enum>(A)</enum><text>in paragraph
(2)(A), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, and dealers</quote>; and</text>
</subparagraph><subparagraph id="H729D6A12B6B14D8999E64748BB2D9A8C"><enum>(B)</enum><text>by
striking <quote>issuer</quote> each place that term appears and inserting
<quote>issuer, broker, or dealer</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HCA324D74AE1546F6AFA70B9B8340EF49"><enum>(d)</enum><header>Auditing and
independence</header><text>Section 103(a) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7213(a)) is amended—</text>
<paragraph id="HBA2D40CA531D48D48447D1804A71B7F3"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>and such ethics standards</quote> and
inserting <quote>such ethics standards, and such independence
standards</quote>;</text>
</paragraph><paragraph id="HB2973802D51046F7916CD66FB47F214F"><enum>(2)</enum><text>in
paragraph (2)(A)(iii), by striking <quote>describe in each audit report</quote>
and inserting <quote>in each audit report for an issuer, describe</quote>;
and</text>
</paragraph><paragraph id="HDE549091810A4EFD83BB45EA50B53B5F"><enum>(3)</enum><text>in
paragraph (2)(B)(i), by striking <quote>issuers</quote> and inserting
<quote>issuers, brokers, and dealers</quote>.</text>
</paragraph></subsection><subsection id="HE3A8EECCDF4840B8805ECDFE9BC6D4C9"><enum>(e)</enum><header>Inspections of
registered public accounting firms</header><text>Section 104 of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214) is amended—</text>
<paragraph id="HEC90233D62BC4D728B5B045EEEF28E98"><enum>(1)</enum><text>in
subsection (a), by striking <quote>issuers</quote> and inserting
<quote>issuers, brokers, and dealers</quote>; and</text>
</paragraph><paragraph id="H4E5CC4956DF846BDABF80D60B26242AE"><enum>(2)</enum><text>in
subsection (b)(1)—</text>
<subparagraph id="id1BF24AE55E1344C2BABDAE97183D2005"><enum>(A)</enum><text>by striking
<quote>audit reports for</quote> each place that term appears and inserting
<quote>audit reports on annual financial statements for</quote>;</text>
</subparagraph><subparagraph id="idB93A947B5AE44805B33D793E8128C07E"><enum>(B)</enum><text>in subparagraph
(A), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HEB3E951BBC7B4BDC896DD8701A1C8F01"><enum>(C)</enum><text>in
subparagraph (B), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</subparagraph><subparagraph id="idBCD0B266F7244B67A36BAEA2D51C7334"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idEF6BFFA98B004B62A21A2BF485751B7F" style="OLC">
<subparagraph id="idCD8FE1CF1257472F971004C3AB507752"><enum>(C)</enum><text>with respect to
each registered public accounting firm that regularly provides audit reports
and that is not described in subparagraph (A) or (B), on a basis determined by
the Board, by rule, that is consistent with the public interest and protection
of
investors.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H2049B6D4C9DE4B87A24E67FB48A20E94"><enum>(f)</enum><header>Investigations
and disciplinary proceedings</header><text>Section 105(c)(7)(B) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(7)(B)) is amended—</text>
<paragraph id="HD0CD468B91EC4633882E0ADEEB009E7C"><enum>(1)</enum><text>in
the subparagraph heading, by inserting <quote><header-in-text level="subparagraph" style="OLC">, broker, or dealer</header-in-text></quote>
after <quote><header-in-text level="subparagraph" style="OLC">issuer</header-in-text></quote>;</text>
</paragraph><paragraph id="id6B30834C8E1643E7B5F4A8AA6AEE5DAF"><enum>(2)</enum><text>by
striking <quote>any issuer</quote> each place that term appears and inserting
<quote>any issuer, broker, or dealer</quote>; and</text>
</paragraph><paragraph id="HB43B363550374342B0AAC5D46F5F57BE"><enum>(3)</enum><text>by
striking <quote>an issuer under this subsection</quote> and inserting <quote>a
registered public accounting firm under this subsection</quote>.</text>
</paragraph></subsection><subsection id="H28E1EF53602948BAA1B127E3644BA2E0"><enum>(g)</enum><header>Foreign public
accounting firms</header><text>Section 106(a) of the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7216(a)) is amended—</text>
<paragraph id="id1F2F650BB7B74517B81CB7261BE8FDAD"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>issuer</quote> and inserting <quote>issuer,
broker, or dealer</quote>; and</text>
</paragraph><paragraph id="H5C76887687274DA4BD94E4A75978767D"><enum>(2)</enum><text>in
paragraph (2), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, or dealers</quote>.</text>
</paragraph></subsection><subsection id="H5EC1B2EC200B454BB4BF437EA842C8F5"><enum>(h)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 109 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7219) is amended—</text>
<paragraph display-inline="no-display-inline" id="H17007801DEBE4F02963B8A2E1D6EEFCC"><enum>(1)</enum><text>in subsection
(c)(2), by striking <quote>subsection (i)</quote> and inserting
<quote>subsection (j)</quote>;</text>
</paragraph><paragraph id="H68EC9B873B004C52A485B06A3BE9EB78"><enum>(2)</enum><text>in
subsection (d)—</text>
<subparagraph id="idF56BA637B32C483E9259EC4AAA5A259A"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>allowing for differentiation among classes of issuers, as
appropriate</quote> and inserting <quote>and among brokers and dealers, in
accordance with subsection (h), and allowing for differentiation among classes
of issuers, brokers and dealers, as appropriate</quote>; and</text>
</subparagraph><subparagraph id="id2F0CD89BE14744C3A75D53334A98B92B"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id576A4CF95E6C4DFE87FCFF9BCA426374" style="OLC">
<paragraph id="id1131B666D9F0496681199D8F89BA0C8A"><enum>(3)</enum><header>Brokers and
dealers</header><text>The Board shall begin the allocation, assessment, and
collection of fees under paragraph (2) with respect to brokers and dealers with
the payment of support fees to fund the first full fiscal year beginning after
the effective date of this
paragraph.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9BB6ABA5A73C40899D6A4B7892E94248"><enum>(3)</enum><text>by
redesignating subsections (h), (i), and (j) as subsections (i), (j), and (k),
respectively; and</text>
</paragraph><paragraph id="H44B9D6E87DCF4AB1A8A4C7CE37D29D07"><enum>(4)</enum><text>by
inserting after subsection (g) the following:</text>
<quoted-block display-inline="no-display-inline" id="HD7206C28FC5C4B7293759E1BAF257B07" style="OLC">
<subsection id="H30E407D9372D485E89D3E1339EE734F7"><enum>(h)</enum><header>Allocation of
accounting support fees among brokers and dealers</header>
<paragraph id="idD7E440E998204BC28D526E41FB7821A4"><enum>(1)</enum><header>Obligation to
pay</header><text display-inline="yes-display-inline">Each broker or dealer
shall pay to the Board the annual accounting support fee allocated to such
broker or dealer under this section.</text>
</paragraph><paragraph id="idCB5940D66A2242D7B4B6320D380F87F5"><enum>(2)</enum><header>Allocation</header><text>Any
amount due from a broker or dealer (or from a particular class of brokers and
dealers) under this section shall be allocated among brokers and dealers and
payable by the broker or dealer (or the brokers and dealers in the particular
class, as applicable).</text>
</paragraph><paragraph id="idD5106BB25AFF41C8962F77F581D4704A"><enum>(3)</enum><header>Proportionality</header><text>The
amount due from a broker or dealer shall be in proportion to the net capital of
the broker or dealer, compared to the total net capital of all brokers and
dealers, in accordance with rules issued by the
Board.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H645A8D4E0C934D1F969B99E2C8F7497C"><enum>(i)</enum><header>Referral of
investigations to a self-regulatory organization</header><text>Section
105(b)(4)(B) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(4)(B)) is
amended—</text>
<paragraph id="H4C68EFBFBC80413D903C6CFBFC3937C4"><enum>(1)</enum><text>by
redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively;
and</text>
</paragraph><paragraph id="H1BBD0281525347E8AE00DB2DE10B3F91"><enum>(2)</enum><text>by
inserting after clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="H98BBD15B4B614A4EADFD5C7B1DA1570A" style="OLC">
<clause id="H008FEA8C02494324852DAECED6066E1E"><enum>(ii)</enum><text display-inline="yes-display-inline">to a self-regulatory organization, in the
case of an investigation that concerns an audit report for a broker or dealer
that is under the jurisdiction of such self-regulatory
organization;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4594AE5D4E3A43A98E39A00E04773F4C"><enum>(j)</enum><header>Use of documents
related to an inspection or investigation</header><text>Section
105(b)(5)(B)(ii) of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7215(b)(5)(B)(ii)) is amended—</text>
<paragraph id="H456C6CE16F354CCCAC8F68E16781065C"><enum>(1)</enum><text>in
subclause (III), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H5567E4FE3EB24FB1B45D3FE7F6B2A457"><enum>(2)</enum><text>in
subclause (IV), by striking the comma and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H7918A095177A4CEDAAEF7363DCE29FB0"><enum>(3)</enum><text>by
inserting after subclause (IV) the following:</text>
<quoted-block display-inline="no-display-inline" id="HD6B251535DE549A9B85286493AC7DD54" style="OLC">
<subclause id="HE7EAC79E85614175B9968CF77E2F189A"><enum>(V)</enum><text display-inline="yes-display-inline">a self-regulatory organization, with
respect to an audit report for a broker or dealer that is under the
jurisdiction of such self-regulatory
organization,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5342C4B82AE046C5B249F54E595C14F8"><enum>(k)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect 180 days after the date of enactment of this
Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id70198622E325431A85D1511606058363"><enum>983.</enum><header>Portfolio
margining</header>
<subsection id="H30FF606F167A4174BC22D47592BF44C3"><enum>(a)</enum><header>Advances</header><text display-inline="yes-display-inline">Section 9(a)(1) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff–3(a)(1)) is amended by inserting
<quote>or options on commodity futures contracts</quote> after <quote>claim for
securities</quote>.</text>
</subsection><subsection id="HD9B32AEB4A964570AF79BA3C25975C12"><enum>(b)</enum><header>Definitions</header><text>Section
16 of the Securities Investor Protection Act of 1970 (15 U.S.C.
78<italic>lll</italic>) is amended—</text>
<paragraph id="HCC3C6B16CC96405194A80073460080A7"><enum>(1)</enum><text>by
striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HCCDEF7071F654422996F660090B5E453" style="OLC">
<paragraph id="HD93002EDE66548D7BA76E5DD289D4CDC"><enum>(2)</enum><header>Customer</header>
<subparagraph id="H358B0C8BF9514C44BF75D2E8BF7DD103"><enum>(A)</enum><header>In
general</header><text>The term <term>customer</term> of a debtor means any
person (including any person with whom the debtor deals as principal or agent)
who has a claim on account of securities received, acquired, or held by the
debtor in the ordinary course of its business as a broker or dealer from or for
the securities accounts of such person for safekeeping, with a view to sale, to
cover consummated sales, pursuant to purchases, as collateral, security, or for
purposes of effecting transfer.</text>
</subparagraph><subparagraph id="HA33800EFD8C546FA84A3B6A1D52E6657"><enum>(B)</enum><header>Included
persons</header><text>The term <term>customer</term> includes—</text>
<clause id="H4D230C95C64E4794BAAFF21616E1F5AA"><enum>(i)</enum><text>any
person who has deposited cash with the debtor for the purpose of purchasing
securities;</text>
</clause><clause id="H20C84A06085441B8B76DBEC600E1D443"><enum>(ii)</enum><text display-inline="yes-display-inline">any person who has a claim against the
debtor for cash, securities, futures contracts, or options on futures contracts
received, acquired, or held in a portfolio margining account carried as a
securities account pursuant to a portfolio margining program approved by the
Commission; and</text>
</clause><clause id="H557697A8A0DD4E18992BC8AECD36F37B"><enum>(iii)</enum><text>any
person who has a claim against the debtor arising out of sales or conversions
of such securities.</text>
</clause></subparagraph><subparagraph id="H7FBCF0FF78114E2E96E0175905B82D36"><enum>(C)</enum><header>Excluded
persons</header><text>The term <term>customer</term> does not include any
person, to the extent that—</text>
<clause id="H937C2D01FF5E4EB6AC2F70A5BA349DE2"><enum>(i)</enum><text>the
claim of such person arises out of transactions with a foreign subsidiary of a
member of SIPC; or</text>
</clause><clause id="H8BC63D0CBAAB44858FC3D52C2E841C9D"><enum>(ii)</enum><text>such
person has a claim for cash or securities which by contract, agreement, or
understanding, or by operation of law, is part of the capital of the debtor, or
is subordinated to the claims of any or all creditors of the debtor,
notwithstanding that some ground exists for declaring such contract, agreement,
or understanding void or voidable in a suit between the claimant and the
debtor.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5375FF8D65AB4055801C47B49E146E67"><enum>(2)</enum><text>in
paragraph (4)—</text>
<subparagraph id="idFBC50A7E254E4D589678C472CE03F9A1"><enum>(A)</enum><text>in subparagraph
(C), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="idB5852662DA2F41AF89110C1DA4836243"><enum>(B)</enum><text>by redesignating
subparagraph (D) as subparagraph (E); and</text>
</subparagraph><subparagraph id="idEFB20277A3C148209F08642A710E7FF5"><enum>(C)</enum><text>by inserting
after subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="id03F51D3D39724DB991B9DD8CFAD4E169" style="OLC">
<subparagraph id="id1273686F78C64F429237BD1E49D8C354"><enum>(D)</enum><text>in the case of a
portfolio margining account of a customer that is carried as a securities
account pursuant to a portfolio margining program approved by the Commission, a
futures contract or an option on a futures contract received, acquired, or held
by or for the account of a debtor from or for such portfolio margining account,
and the proceeds thereof;
and</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HF608B7285B5446AB966BA3540222BFB4"><enum>(3)</enum><text>in
paragraph (9), in the matter following subparagraph (L), by inserting after
<quote>Such term</quote> the following: <quote>includes revenues earned by a
broker or dealer in connection with a transaction in the portfolio margining
account of a customer carried as securities accounts pursuant to a portfolio
margining program approved by the Commission. Such term</quote>; and</text>
</paragraph><paragraph id="H49453212E063463098AFA3ADDB8D16AA"><enum>(4)</enum><text>in
paragraph (11)—</text>
<subparagraph id="id9716C69A6FC64D918EE5C2C471BEC7B1"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="H3407B8923CDA4207BEAAA0FE0000F2FD"><enum>(i)</enum><text>by
striking <quote>filing date, all</quote> and all that follows through the end
of the subparagraph and inserting the following: “filing date—</text>
<quoted-block display-inline="no-display-inline" id="HACFC43B506AE4016867CB9ACBCD6D5AA" style="OLC">
<clause id="H021FBCC16B334F80888D1C53EB043BA8"><enum>(i)</enum><text>all
securities positions of such customer (other than customer name securities
reclaimed by such customer); and</text>
</clause><clause id="HCA84474B86AE4E57B901E908AF3C7E7B"><enum>(ii)</enum><text>all
positions in futures contracts and options on futures contracts held in a
portfolio margining account carried as a securities account pursuant to a
portfolio margining program approved by the Commission, including all property
collateralizing such positions, to the extent that such property is not
otherwise included herein; minus</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD7354F948D0648448074008BD18C1048"><enum>(B)</enum><text>in the matter
following subparagraph (C), by striking <quote>In determining</quote> and
inserting the following: <quote>A claim for a commodity futures contract
received, acquired, or held in a portfolio margining account pursuant to a
portfolio margining program approved by the Commission or a claim for a
security futures contract, shall be deemed to be a claim with respect to such
contract as of the filing date, and such claim shall be treated as a claim for
cash. In determining</quote>.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idBE792972181443E1B9B31EBE1EAFC2E0"><enum>984.</enum><header>Loan or
borrowing of securities</header>
<subsection commented="no" display-inline="no-display-inline" id="id72C5FAEE030B40CA80F007254E4486E0"><enum>(a)</enum><header>Rulemaking
authority</header><text display-inline="yes-display-inline">Section 10 of the
Securities Exchange Act of 1934 (15 U.S.C. 78j) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="idDB0D39797FC24C7DAD2197BA3E772719" style="OLC">
<subsection id="IDe1d4523716284b9f978c2e4209e02163" indent="down1"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idAD8E4EA7D86C4BB280E7C1313FC75E87"><enum>(1)</enum><text>To effect, accept, or
facilitate a transaction involving the loan or borrowing of securities in
contravention of such rules and regulations as the Commission may prescribe as
necessary or appropriate in the public interest or for the protection of
investors.</text>
<subparagraph id="ID5dbeb80086a343feb44423126a65c209" indent="up2"><enum>(2)</enum><text>Nothing in paragraph (1) may be
construed to limit the authority of the appropriate Federal banking agency (as
defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), the National Credit Union Administration, or any other Federal
department or agency having a responsibility under Federal law to prescribe
rules or regulations restricting transactions involving the loan or borrowing
of securities in order to protect the safety and soundness of a financial
institution or to protect the financial system from systemic
risk.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1EDEAAE75740423ABC91F23348A00983"><enum>(b)</enum><header>Rulemaking
required</header><text>Not later than 2 years after the date of enactment of
this Act, the Commission shall promulgate rules that are designed to increase
the transparency of information available to brokers, dealers, and investors,
with respect to the loan or borrowing of securities.</text>
</subsection></section><section id="id09ED673ACC9B4AEF9201A9B96EBB546E"><enum>985.</enum><header>Technical
corrections to Federal securities laws</header>
<subsection id="H4C8C9AA8463F457D9B02D253AA93E6D"><enum>(a)</enum><header>Securities Act of
1933</header><text display-inline="yes-display-inline">The Securities Act of
1933 (15 U.S.C. 77a et seq.) is amended—</text>
<paragraph id="H638CDFDA25004EB38F2853B1035067CF"><enum>(1)</enum><text>in
section 3(a)(4) (15 U.S.C. 77c(a)(4)), by striking <quote>individual;</quote>
and inserting <quote>individual,</quote>;</text>
</paragraph><paragraph id="HE16D0E07FF9B44139E4711BC3647BF9B"><enum>(2)</enum><text display-inline="yes-display-inline">in section 18 (15 U.S.C. 77r)—</text>
<subparagraph id="id4E3EE6D59C7641ECB8EBDDD1D01B105F"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(C), by striking
<quote>is a security</quote> and inserting <quote>a security</quote>;
and</text>
</subparagraph><subparagraph id="H49A09552651F44B79339EE9787F0CC55"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c)(2)(B)(i), by striking
<quote>State, or</quote> and inserting <quote>State or</quote>;</text>
</subparagraph></paragraph><paragraph id="H9F9DD580B6B942869469FD1D00F436F8"><enum>(3)</enum><text display-inline="yes-display-inline">in section 19(d)(6)(A) (15 U.S.C.
77s(d)(6)(A)), by striking <quote>in paragraph (1) of (3)</quote> and inserting
<quote>in paragraph (1) or (3)</quote>; and</text>
</paragraph><paragraph id="H390F2313B9A74F929E45712FCA70B83E"><enum>(4)</enum><text display-inline="yes-display-inline">in section 27A(c)(1)(B)(ii) (15 U.S.C.
77z–2(c)(1)(B)(ii)), by striking <quote>business entity;</quote> and inserting
<quote>business entity,</quote>.</text>
</paragraph></subsection><subsection id="HA5BFBBDA677043E48B7057761D0900B6"><enum>(b)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<paragraph id="H034739305B744E529BEB276F31D325BF"><enum>(1)</enum><text>in
section 2 (15 U.S.C. 78b), by striking <quote>affected</quote> and inserting
<quote>effected</quote>;</text>
</paragraph><paragraph id="H527C89DC386F459992CE6D2FCB841B90"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3 (15 U.S.C. 78c)—</text>
<subparagraph id="id4B5ACC9495C94C89AD0468AF35E7100A"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(55)(A), by striking
<quote>section 3(a)(12) of the Securities Exchange Act of 1934</quote> and
inserting <quote>section 3(a)(12) of this title</quote>; and</text>
</subparagraph><subparagraph id="HEC1EBD4050704ACF82E860A313FFFF14"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (g), by striking
<quote>company, account person, or entity</quote> and inserting <quote>company,
account, person, or entity</quote>;</text>
</subparagraph></paragraph><paragraph id="HF507A2ECD538411C8167F5B34FEF91C"><enum>(3)</enum><text display-inline="yes-display-inline">in section 10A(i)(1)(B) (15 U.S.C.
78j–1(i)(1)(B))—</text>
<subparagraph id="idA153AB55E0E642F083D0B60552EBD548"><enum>(A)</enum><text display-inline="yes-display-inline">in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">minimus</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">minimis</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="id9F9920257D12449F89C8B84FAEE07A8E"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>nonaudit</quote> and inserting <quote>non-audit</quote>;</text>
</subparagraph></paragraph><paragraph id="HF5DC2244A3514CD1ACABD13694865961"><enum>(4)</enum><text display-inline="yes-display-inline">in section 13(b)(1) (15 U.S.C. 78m(b)(1)),
by striking <quote>earning statement</quote> and inserting <quote>earnings
statement</quote>;</text>
</paragraph><paragraph id="H5545DA3DC14444FCB4FD9566E5D14A5"><enum>(5)</enum><text display-inline="yes-display-inline">in section 15 (15 U.S.C. 78o)—</text>
<subparagraph id="idDC1E8EAF2E81466FAAB2E2CC99B151E4"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)—</text>
<clause id="HB51780BB332D43E3B88C5C974063E223"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>The order granting</quote> and all that
follows through <quote>from such membership.</quote>; and</text>
</clause><clause id="H11A961BA715344F4B68523D4F38487DA"><enum>(ii)</enum><text>in the
undesignated matter immediately following subparagraph (B), by inserting after
the first sentence the following: <quote>The order granting registration shall
not be effective until such broker or dealer has become a member of a
registered securities association, or until such broker or dealer has become a
member of a national securities exchange, if such broker or dealer effects
transactions solely on that exchange, unless the Commission has exempted such
broker or dealer, by rule or order, from such membership.</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H135F7536307D46B9AD06685600F800C6"><enum>(6)</enum><text display-inline="yes-display-inline">in section 15C(a)(2) (15 U.S.C.
78o–5(a)(2))—</text>
<subparagraph commented="no" id="HEAA139A6AB514B969509E7FE2CA05C39"><enum>(A)</enum><text>by redesignating
clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and adjusting
the subparagraph margins accordingly;</text>
</subparagraph><subparagraph id="HFFE191BD414B4BEDB3E2AA6C622C02F3"><enum>(B)</enum><text>in
subparagraph (B), as so redesignated, by striking <quote>The order
granting</quote> and all that follows through <quote>from such
membership.</quote>; and</text>
</subparagraph><subparagraph id="H5AFB6CF5CD0544EC941695C1165E721B"><enum>(C)</enum><text>in
the matter following subparagraph (B), as so redesignated, by inserting after
the first sentence the following: <quote>The order granting registration shall
not be effective until such government securities broker or government
securities dealer has become a member of a national securities exchange
registered under section 6 of this title, or a securities association
registered under section 15A of this title, unless the Commission has exempted
such government securities broker or government securities dealer, by rule or
order, from such membership.</quote>;</text>
</subparagraph></paragraph><paragraph id="H7E1E1DA8B8C745DC983CE9EADC67CA87"><enum>(7)</enum><text display-inline="yes-display-inline">in section 17(b)(1)(B) (15 U.S.C.
78q(b)(1)(B)), by striking <quote>15A(k) gives</quote> and inserting
<quote>15A(k), give</quote>; and</text>
</paragraph><paragraph id="H819F4DF81F24431CACABF4D9D5CFC8FF"><enum>(8)</enum><text display-inline="yes-display-inline">in section 21C(c)(2) (15 U.S.C.
78u–3(c)(2)), by striking <quote>paragraph (1) subsection</quote> and inserting
<quote>Paragraph (1)</quote>.</text>
</paragraph></subsection><subsection id="HD47E42626EA24CB7BC38D24BE7CA864B"><enum>(c)</enum><header>Trust Indenture
Act of 1939</header><text display-inline="yes-display-inline">The Trust
Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) is amended—</text>
<paragraph id="H5F619A68D36A4ED78E8DFE33EF5323E9"><enum>(1)</enum><text display-inline="yes-display-inline">in section 304(b) (15 U.S.C. 77ddd(b)), by
striking <quote>section 2 of such Act</quote> and inserting <quote>section 2(a)
of such Act</quote>; and</text>
</paragraph><paragraph id="HDA347B29401C46A2B78FB5A2C1007C03"><enum>(2)</enum><text display-inline="yes-display-inline">in section 317(a)(1) (15 U.S.C.
77qqq(a)(1)), by striking <quote>, in the</quote> and inserting <quote>in
the</quote>.</text>
</paragraph></subsection><subsection id="H28D5C16DBD5E4BCAB7D85085538FB87F"><enum>(d)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">The
Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended—</text>
<paragraph id="H0D5F1957C728492B81301F89C73E0026"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(19) (15 U.S.C.
80a–2(a)(19)), in the matter following subparagraph (B)(vii)—</text>
<subparagraph id="id38D78F8225BC49E1BAD2283E65941E18"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>clause (vi)</quote> each
place that term appears and inserting <quote>clause (vii)</quote>; and</text>
</subparagraph><subparagraph id="idF41EA6B8FC1E483796F5A72E1C3B3D47"><enum>(B)</enum><text>in each of
subparagraphs (A)(vi) and (B)(vi), by adding <quote>and</quote> at the end of
subclause (III);</text>
</subparagraph></paragraph><paragraph id="HB6084CAE92264E41AEC14948C0FA9EC0"><enum>(2)</enum><text display-inline="yes-display-inline">in section 9(b)(4)(B) (15 U.S.C.
80a–9(b)(4)(B)), by adding <quote>or</quote> after the semicolon at the
end;</text>
</paragraph><paragraph id="H3ECFE06034D74EAD9624EA797BF000B3"><enum>(3)</enum><text display-inline="yes-display-inline">in section 12(d)(1)(J) (15 U.S.C.
80a–12(d)(1)(J)), by striking <quote>any provision of this subsection</quote>
and inserting <quote>any provision of this paragraph</quote>;</text>
</paragraph><paragraph id="H50FEF8DA58C44D88BA71CDAF14367451"><enum>(4)</enum><text display-inline="yes-display-inline">in section 17(f) (15 U.S.C.
80a–17(f))—</text>
<subparagraph id="id74DF29BDE70E4F26A829B130C58EAFC1"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking <quote>No
such member</quote> and inserting <quote>No member of a national securities
exchange</quote>; and</text>
</subparagraph><subparagraph id="H08E74555636C4E60A232E96F4B6E7901"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (6), by striking
<quote>company may serve</quote> and inserting <quote>company, may
serve</quote>; and</text>
</subparagraph></paragraph><paragraph id="H03EEF25FBB084DBAA8695D61A84EE00"><enum>(5)</enum><text display-inline="yes-display-inline">in section 61(a)(3)(B)(iii) (15 U.S.C.
80a–60(a)(3)(B)(iii))—</text>
<subparagraph id="HC3AD4C90330447CDB100B500922B002E"><enum>(A)</enum><text>by
striking <quote>paragraph (1) of section 205</quote> and inserting
<quote>section 205(a)(1)</quote>; and</text>
</subparagraph><subparagraph id="H6348EF3E436C43EE93F8C094B139909B"><enum>(B)</enum><text>by
striking <quote>clause (A) or (B) of that section</quote> and inserting
<quote>paragraph (1) or (2) of section 205(b)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H245CEC63FC3144B889488595A9837C37"><enum>(e)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">The
Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended—</text>
<paragraph id="H62ED47C0780D427CB4DEF672152AC3C"><enum>(1)</enum><text display-inline="yes-display-inline">in section 203 (15 U.S.C. 80b–3)—</text>
<subparagraph id="id70DD19F0AFEB42348E236752CBF36BFA"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)(1)(A), by striking
<quote>principal business office and</quote> and inserting <quote>principal
office, principal place of business, and </quote>; and</text>
</subparagraph><subparagraph id="id36984EF97C00442D9736747CE1D154E5"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (k)(4)(B), in the matter
following clause (ii), by striking <quote>principal place of business</quote>
and inserting <quote>principal office or place of business</quote>;</text>
</subparagraph></paragraph><paragraph id="HF034596386734E88917E3CC472005D2C"><enum>(2)</enum><text display-inline="yes-display-inline">in section 206(3) (15 U.S.C. 80b–6(3)), by
adding <quote>or</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="id9CA3978B6EC14705B693545C61B2616A"><enum>(3)</enum><text display-inline="yes-display-inline">in section 213(a) (15 U.S.C. 80b–13(a)), by
striking <quote>principal place of business</quote> and inserting
<quote>principal office or place of business</quote>; and</text>
</paragraph><paragraph id="id5D7170287771439BBCA6E3B874EBCA90"><enum>(4)</enum><text display-inline="yes-display-inline">in section 222 (15 U.S.C. 80b–18a), by
striking <quote>principal place of business</quote> each place that term
appears and inserting <quote>principal office and place of
business</quote>.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H01278C7E0E1043DFA4F5A9C3BC68A487"><enum>986.</enum><header>Conforming
amendments relating to repeal of the Public Utility Holding Company Act of
1935</header>
<subsection id="HE97962223383401E8FF8D9372B930000"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended—</text>
<paragraph id="H89B26566AEC54BB2871970BCDEFF6279"><enum>(1)</enum><text>in
section 3(a)(47) (15 U.S.C. 78c(a)(47)), by striking <quote>the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79a et seq.),</quote>;</text>
</paragraph><paragraph id="H05FAE756835A4C6FAD6018C4B05A3FD"><enum>(2)</enum><text>in
section 12(k) (15 U.S.C. 78l(k)), by amending paragraph (7) to read as
follows: </text>
<quoted-block display-inline="no-display-inline" id="H9CA89EF107204C5E9D422EDCADAA4B2D" style="OLC">
<paragraph id="H226E95B7B0D342409E9FF2023429B0AE"><enum>(7)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>emergency</term> means—</text>
<subparagraph id="HA33E6DF3415248B3A72171BF29854426"><enum>(A)</enum><text>a major market
disturbance characterized by or constituting—</text>
<clause id="H713FAF2A42AA4797BD12C2C0EDD933BE"><enum>(i)</enum><text>sudden
and excessive fluctuations of securities prices generally, or a substantial
threat thereof, that threaten fair and orderly markets; or</text>
</clause><clause id="H1C94A955392A4A7B89E860BE5B99C4E"><enum>(ii)</enum><text>a
substantial disruption of the safe or efficient operation of the national
system for clearance and settlement of transactions in securities, or a
substantial threat thereof; or</text>
</clause></subparagraph><subparagraph id="H7E2A66F8F9B448A0966DAACF918BEF"><enum>(B)</enum><text>a
major disturbance that substantially disrupts, or threatens to substantially
disrupt—</text>
<clause id="H1F3F08900F7149C3B62B9E00F0623430"><enum>(i)</enum><text>the
functioning of securities markets, investment companies, or any other
significant portion or segment of the securities markets; or</text>
</clause><clause id="HE76CE739EEC54CD8854D32CBF6710043"><enum>(ii)</enum><text>the
transmission or processing of securities
transactions.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H73E9B7F1255A4D9E98F867EA9255C546"><enum>(3)</enum><text>in
section 21(h)(2) (15 U.S.C. 78u(h)(2)), by striking <quote>section 18(c) of the
Public Utility Holding Company Act of 1935,</quote>.</text>
</paragraph></subsection><subsection id="H7A5C75A558344A48A34D3C5F93838DCA"><enum>(b)</enum><header>Trust Indenture
Act of 1939</header><text display-inline="yes-display-inline">The Trust
Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) is amended—</text>
<paragraph id="H9CD688CC0715414086151B211FB30064"><enum>(1)</enum><text display-inline="yes-display-inline">in section 303 (15 U.S.C. 77ccc), by
striking paragraph (17) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H071545A02449455AA60045E805D65900" style="OLC">
<paragraph id="H035BA57B7E0745D4862339FF1FD9055C"><enum>(17)</enum><text>The terms
<term>Securities Act of 1933</term> and <term>Securities Exchange Act of
1934</term> shall be deemed to refer, respectively, to such Acts, as amended,
whether amended prior to or after the enactment of this
title.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBFD551147E1644FB8B62458E65DF1713"><enum>(2)</enum><text display-inline="yes-display-inline">in section 308 (15 U.S.C. 77hhh), by
striking <quote>Securities Act of 1933, the Securities Exchange Act of 1934, or
the Public Utility Holding Company Act of 1935</quote> each place that term
appears and inserting <quote>Securities Act of 1933 or the Securities Exchange
Act of 1934</quote>;</text>
</paragraph><paragraph id="HA371BE9534D445EF887454EAD187A835"><enum>(3)</enum><text display-inline="yes-display-inline">in section 310 (15 U.S.C. 77jjj), by
striking subsection (c);</text>
</paragraph><paragraph id="H6C03000CBC944EFFB39783F0375C01F3"><enum>(4)</enum><text display-inline="yes-display-inline">in section 311 (15 U.S.C. 77kkk), by
striking subsection (c);</text>
</paragraph><paragraph id="HC0856E7950C04C48A3F8F2C6D9338160"><enum>(5)</enum><text display-inline="yes-display-inline">in section 323(b) (15 U.S.C. 77www(b)), by
striking <quote>Securities Act of 1933, or the Securities Exchange Act of 1934,
or the Public Utility Holding Company Act of 1935</quote> and inserting
<quote>Securities Act of 1933 or the Securities Exchange Act of 1934</quote>;
and</text>
</paragraph><paragraph id="HB495880401FA4E5E96D18F132235778E"><enum>(6)</enum><text display-inline="yes-display-inline">in section 326 (15 U.S.C. 77zzz), by
striking <quote>Securities Act of 1933, or the Securities Exchange Act of 1934,
or the Public Utility Holding Company Act of 1935,</quote> and inserting
<quote>Securities Act of 1933 or the Securities Exchange Act of
1934</quote>.</text>
</paragraph></subsection><subsection id="HD7139AACE2B04CB2BDFCF76299F1707E"><enum>(c)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">The
Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended—</text>
<paragraph id="HBBB8C710A0FB4B7DA72E17626CB86BB1"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(44) (15 U.S.C.
80a–2(a)(44)), by striking <quote><quote>Public Utility Holding Company Act of
1935</quote>,</quote>;</text>
</paragraph><paragraph id="HB3F0B2B8D4B24D06931C30ED990048E9"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3(c) (15 U.S.C. 80a–3(c)), by
striking paragraph (8) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8438F34B23194571ADFF9D7BAD3CBD58" style="OLC">
<paragraph id="H2D2131B344804E4089D1C2306C37CDB7"><enum>(8)</enum><text>[Repealed]</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H101783C4EFD346AB9C136FD8C874B1AE"><enum>(3)</enum><text display-inline="yes-display-inline">in section 38(b) (15 U.S.C. 80a–37(b)), by
striking <quote>the Public Utility Holding Company Act of 1935,</quote>;
and</text>
</paragraph><paragraph id="H52517801D1EF4EAD988E30FE33452F34"><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="H6D9851C99E104359BD471C63E20032B3"><enum>(d)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">Section
202(a)(21) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(21)) is
amended by striking <quote><quote>Public Utility Holding Company Act of
1935</quote>,</quote>.</text>
</subsection></section><section id="HA0596F753FBA4E37A6F7C683BD5BC4A"><enum>987.</enum><header>Amendment to
definition of material loss and nonmaterial losses to the Deposit Insurance
Fund for purposes of Inspector General reviews</header>
<subsection id="HAAE621FB6C7B4D849D2874E42CA87869"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 38(k) of the
Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended—</text>
<paragraph id="H71F23F8BC09E4ACD844B4FE7F239AF00"><enum>(1)</enum><text>in
paragraph (2), by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5159DC4A2DC0442C83BFFBE4D5E5CD52" style="OLC">
<subparagraph id="HDD2E7B1369BE4A8695D8CB5789851FB2"><enum>(B)</enum><header>Material loss
defined</header><text display-inline="yes-display-inline">The term
<quote>material loss</quote> means any estimated loss in excess of—</text>
<clause id="idEE26A8989F7543B4BA2716C75A0AD402"><enum>(i)</enum><text display-inline="yes-display-inline">$100,000,000, if the loss occurs during the
period beginning on September 30, 2009, and ending on December 31, 2010;</text>
</clause><clause id="id15D6A447DCD84896B1AEA6F7D662A460"><enum>(ii)</enum><text display-inline="yes-display-inline">$75,000,000, if the loss occurs during the
period beginning on January 1, 2011, and ending on December 31, 2011;
and</text>
</clause><clause id="id8647E10740FE4DC19DDEA002AD736DE9"><enum>(iii)</enum><text display-inline="yes-display-inline">$50,000,000, if the loss occurs on or after
January 1,
2012.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3E077EF76EAA42AAA29F48E4B4A0D04F"><enum>(2)</enum><text>in
paragraph (4)(A) by striking <quote>the report</quote> and inserting <quote>any
report on losses required under this subsection,</quote>;</text>
</paragraph><paragraph id="H36291338178F4B43A1B7DFEDC2DF353"><enum>(3)</enum><text>by
striking paragraph (6);</text>
</paragraph><paragraph id="H85286F708A5A46589EC7555074D7F27D"><enum>(4)</enum><text>by
redesignating paragraph (5) as paragraph (6); and</text>
</paragraph><paragraph id="HC96BF83FE1FB4BE6B95915BA3FA52C90"><enum>(5)</enum><text>by
inserting after paragraph (4) the following:</text>
<quoted-block display-inline="no-display-inline" id="H4B3D0265CE0849CE94CEF8FF98369F42" style="OLC">
<paragraph id="H9DB524B101374A1DBA171C8B328B26C2"><enum>(5)</enum><header>Losses that are
not material</header>
<subparagraph id="H02757C66628E49F8A01E7F119FA43E03"><enum>(A)</enum><header>Semiannual
report</header><text display-inline="yes-display-inline">For the 6-month period
ending on March 31, 2010, and each 6-month period thereafter, the Inspector
General of each Federal banking agency shall—</text>
<clause id="HB2C0EC8122354D55B16DC98EA97E8C8D"><enum>(i)</enum><text display-inline="yes-display-inline">identify losses that the Inspector General
estimates have been incurred by the Deposit Insurance Fund during that 6-month
period, with respect to the insured depository institutions supervised by the
Federal banking agency;</text>
</clause><clause id="HE9FA3A19B08B4C09A32990E1996113D6"><enum>(ii)</enum><text>for
each loss incurred by the Deposit Insurance Fund that is not a material loss,
determine—</text>
<subclause id="id00E9127FF69044EC9E5E047007D0DBC3"><enum>(I)</enum><text>the grounds
identified by the Federal banking agency or State bank supervisor for
appointing the Corporation as receiver under section 11(c)(5); and</text>
</subclause><subclause id="idFB4A37380D93408197273767FD2C47E2"><enum>(II)</enum><text>whether any
unusual circumstances exist that might warrant an in-depth review of the loss;
and</text>
</subclause></clause><clause id="H722C8BB6F20D46AE95823D2F9CF9D7AC"><enum>(iii)</enum><text display-inline="yes-display-inline">prepare and submit a written report to the
appropriate Federal banking agency and to Congress on the results of any
determination by the Inspector General, including—</text>
<subclause id="H15A2C53A882D4D9DBDE63E37315284F2"><enum>(I)</enum><text display-inline="yes-display-inline">an identification of any loss that warrants
an in-depth review, together with the reasons why such review is warranted, or,
if the Inspector General determines that no review is warranted, an explanation
of such determination; and</text>
</subclause><subclause id="H141A8197BC9949FFB1B05DD0FEE6FD3"><enum>(II)</enum><text display-inline="yes-display-inline">for each loss identified under subclause
(I) that warrants an in-depth review, the date by which such review, and a
report on such review prepared in a manner consistent with reports under
paragraph (1)(A), will be completed and submitted to the Federal banking agency
and Congress.</text>
</subclause></clause></subparagraph><subparagraph id="H1A1F1AC07CE54E79BCD0D9D38B482C55"><enum>(B)</enum><header>Deadline for
semiannual report</header><text display-inline="yes-display-inline">The
Inspector General of each Federal banking agency shall—</text>
<clause id="HEEC12B2381E94478B69698B171DE2488"><enum>(i)</enum><text display-inline="yes-display-inline">submit each report required under paragraph
(A) expeditiously, and not later than 90 days after the end of the 6-month
period covered by the report; and</text>
</clause><clause id="H499327817F964D62BC8058804DBAC4BC"><enum>(ii)</enum><text>provide a copy of
the report required under paragraph (A) to any Member of Congress, upon
request.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H013BD676BC914978825D69B6F6801D59"><enum>(b)</enum><header>Technical and
conforming amendment</header><text display-inline="yes-display-inline">The
heading for subsection (k) of section 38 of the Federal Deposit Insurance Act
(U.S.C. 1831o(k)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id699F1968C9074C6EA8405A0C8D1D4CC7" style="OLC">
<subsection id="id0D4F6ED40918488BACA72AE5D58E2AD1"><enum>(k)</enum><header>Reviews
required when Deposit Insurance Fund incurs
losses</header>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HFBC2125C6A9342FC9667E834B9C3E592"><enum>988.</enum><header>Amendment to
definition of material loss and nonmaterial losses to the National Credit Union
Share Insurance Fund for purposes of Inspector General reviews</header>
<subsection id="HF66B126F71514BA7837D928880F92552"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 216(j) of the
Federal Credit Union Act (12 U.S.C. 1790d(j)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H79316C03EB2842CAABDA85B321F4E36A" style="OLC">
<subsection id="H86586F5D98DA447CA9AD62E95AC66996"><enum>(j)</enum><header>Reviews required
when share insurance fund experiences losses</header>
<paragraph id="H1E107EF2680044399F9A46D05CF9B59C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Fund incurs a
material loss with respect to an insured credit union, the Inspector General of
the Board shall—</text>
<subparagraph id="H749220EFD4204BFDB2836B699E368984"><enum>(A)</enum><text>submit to the
Board a written report reviewing the supervision of the credit union by the
Administration (including the implementation of this section by the
Administration), which shall include—</text>
<clause id="HAB092AE3631E43F393036829DF24CC45"><enum>(i)</enum><text>a
description of the reasons why the problems of the credit union resulted in a
material loss to the Fund; and</text>
</clause><clause id="H5AAACDB1AE09477A8BC80A4C79EA2D08"><enum>(ii)</enum><text>recommendations
for preventing any such loss in the future; and</text>
</clause></subparagraph><subparagraph id="HBF8C6742BE0D4988B44595A7D1335FAE"><enum>(B)</enum><text>submit a copy of
the report under subparagraph (A) to—</text>
<clause id="HD8929BB78DB04E19815371F52426D856"><enum>(i)</enum><text>the
Comptroller General of the United States;</text>
</clause><clause id="id829C60B2E50649918A6B2696C0D6E9EE"><enum>(ii)</enum><text>the
Corporation;</text>
</clause><clause id="H4726340A7A224964B1AB1603072F1BDE"><enum>(iii)</enum><text>in
the case of a report relating to a State credit union, the appropriate State
supervisor; and</text>
</clause><clause id="H4E724C9EC9B5480F8BF60771158AF56B"><enum>(iv)</enum><text>to
any Member of Congress, upon request.</text>
</clause></subparagraph></paragraph><paragraph id="HC8FF887CFD5F48A3A344F9A6EA1C48A8"><enum>(2)</enum><header>Material loss
defined</header><text display-inline="yes-display-inline">For purposes of
determining whether the Fund has incurred a material loss with respect to an
insured credit union, a loss is material if it exceeds the sum of—</text>
<subparagraph id="H15440BE6028542C79CCEA22CB11D21B8"><enum>(A)</enum><text>$25,000,000;
and</text>
</subparagraph><subparagraph id="HEAD1D2A3EB2F402A823D455AB57A9ACB"><enum>(B)</enum><text>an amount equal to
10 percent of the total assets of the credit union on the date on which the
Board initiated assistance under section 208 or was appointed liquidating
agent.</text>
</subparagraph></paragraph><paragraph id="H7CA6A708A949411D8832A20284BE2DAE"><enum>(3)</enum><header>Public
disclosure required</header>
<subparagraph id="HEBF1E5EC13D648A8A8733D95E5FF93E2"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall
disclose a report under this subsection, upon request under section 552 of
title 5, United States Code, without excising—</text>
<clause id="HE7915424CA154D2881D2CB5F1835BF81"><enum>(i)</enum><text>any
portion under section 552(b)(5) of title 5, United States Code; or</text>
</clause><clause id="HE89DB849B7574F7998B7B4176677695D"><enum>(ii)</enum><text>any
information about the insured credit union (other than trade secrets) under
section 552(b)(8) of title 5, United States Code.</text>
</clause></subparagraph><subparagraph id="H11E72A735F0B49369499624C578E07E4"><enum>(B)</enum><header>Rule of
construction</header><text>Subparagraph (A) may not be construed as requiring
the agency to disclose the name of any customer of the insured credit union
(other than an institution-affiliated party), or information from which the
identity of such customer could reasonably be ascertained.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HBA178522A4B54C8FADDEA4FF3BB4BC0F"><enum>(4)</enum><header>Losses that are
not material</header>
<subparagraph id="H98FFF294D6B943E4A6DE569B957858C8"><enum>(A)</enum><header>Semiannual
report</header><text display-inline="yes-display-inline">For the 6-month period
ending on March 31, 2010, and each 6-month period thereafter, the Inspector
General of the Board shall—</text>
<clause id="H94B4D57CBBE5479B80D51B13E9E09EC6"><enum>(i)</enum><text display-inline="yes-display-inline">identify any losses that the Inspector
General estimates were incurred by the Fund during such 6-month period, with
respect to insured credit unions;</text>
</clause><clause id="H544F7F018E0B4AB6A13BDBEF45FFADAB"><enum>(ii)</enum><text>for
each loss to the Fund that is not a material loss, determine—</text>
<subclause id="id17D7831E3DBB4D639EF61C965F37FB1B"><enum>(I)</enum><text>the grounds
identified by the Board or the State official having jurisdiction over a State
credit union for appointing the Board as the liquidating agent for any Federal
or State credit union; and</text>
</subclause><subclause id="id337F162E505E4007A96167FC6CAF68AE"><enum>(II)</enum><text>whether any
unusual circumstances exist that might warrant an in-depth review of the loss;
and</text>
</subclause></clause><clause id="HBADDF100212A4AB08A6E81803D919989"><enum>(iii)</enum><text display-inline="yes-display-inline">prepare and submit a written report to the
Board and to Congress on the results of the determinations of the Inspector
General that includes—</text>
<subclause id="H02CF17A992E0490EA81DAD3B9DB8F047"><enum>(I)</enum><text display-inline="yes-display-inline">an identification of any loss that warrants
an in-depth review, and the reasons such review is warranted, or if the
Inspector General determines that no review is warranted, an explanation of
such determination; and</text>
</subclause><subclause id="H64F2DC946D704BE8BBBEC171BF528DC9"><enum>(II)</enum><text display-inline="yes-display-inline">for each loss identified in subclause (I)
that warrants an in-depth review, the date by which such review, and a report
on the review prepared in a manner consistent with reports under paragraph
(1)(A), will be completed.</text>
</subclause></clause></subparagraph><subparagraph id="HF35873AD3DFD4455A6D5BE74F880B5DD"><enum>(B)</enum><header>Deadline for
semiannual report</header><text display-inline="yes-display-inline">The
Inspector General of the Board shall—</text>
<clause id="H269833E363824DC182D9236D39C1783A"><enum>(i)</enum><text display-inline="yes-display-inline">submit each report required under
subparagraph (A) expeditiously, and not later than 90 days after the end of the
6-month period covered by the report; and</text>
</clause><clause id="H1F04D9C07B5E408DB13D1F2F4AAB2E08"><enum>(ii)</enum><text>provide a copy of
the report required under subparagraph (A) to any Member of Congress, upon
request.</text>
</clause></subparagraph></paragraph><paragraph id="HFC9E1439B5734255BE481E65D86A2F8B"><enum>(5)</enum><header>GAO
review</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall, under such conditions as the Comptroller
General determines to be appropriate—</text>
<subparagraph id="id085909E6F44C43E8934515C512BC1B02"><enum>(A)</enum><text display-inline="yes-display-inline">review each report made under paragraph
(1), including the extent to which the Inspector General of the Board complied
with the requirements under section 8L of the Inspector General Act of 1978 (5
U.S.C. App.) with respect to each such report; and</text>
</subparagraph><subparagraph id="idD8061D2C310C456DA22959A37EFDAF98"><enum>(B)</enum><text display-inline="yes-display-inline">recommend improvements to the supervision
of insured credit unions (including improvements relating to the implementation
of this
section).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id702D28B002DC48CC818F9061A1D75BE3"><enum>989.</enum><header>Government
Accountability Office study on proprietary trading</header>
<subsection id="ID7634a394495f4804bb47a1ebae0f50d8"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="ID2c9fd9a6e76947238a019d092bd4cea4"><enum>(1)</enum><text>the
term <term>covered entity</term> means—</text>
<subparagraph id="idD89C45206F134E6283875C8C58D8AD76"><enum>(A)</enum><text>an insured
depository institution, an affiliate of an insured depository institution, a
bank holding company, a financial holding company, or a subsidiary of a bank
holding company or a financial holding company, as those terms are defined in
the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.); and</text>
</subparagraph><subparagraph id="idBE625AFE6AED4C7FA75DFA9E0FA66C5A"><enum>(B)</enum><text>any other entity,
as the Comptroller General of the United States may determine; and</text>
</subparagraph></paragraph><paragraph id="id94DE2AB474A34FC8B0F7B2B12F9FB8EC"><enum>(2)</enum><text>the
term <term>proprietary trading</term> means the act of a covered entity
investing as a principal in securities, commodities, derivatives, hedge funds,
private equity firms, or such other financial products or entities as the
Comptroller General may determine.</text>
</paragraph></subsection><subsection id="idCB4154497A194DEFB2827A72C23867B9"><enum>(b)</enum><header>Study</header>
<paragraph id="ID52a7c8785dbc4ea2a7d30201f44a1b99"><enum>(1)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study regarding the risks and conflicts associated with proprietary
trading by and within covered entities, including an evaluation of—</text>
<subparagraph id="ID567f4c84ee364909a12bb1576ca58f85"><enum>(A)</enum><text>whether
proprietary trading presents a material systemic risk to the stability of the
United States financial system, and if so, the costs and benefits of options
for mitigating such systemic risk;</text>
</subparagraph><subparagraph id="ID58511139df814064a03f180df6add84b"><enum>(B)</enum><text>whether
proprietary trading presents material risks to the safety and soundness of the
covered entities that engage in such activities, and if so, the costs and
benefits of options for mitigating such risks;</text>
</subparagraph><subparagraph id="ID1882f37004334e1ea198b2580534f8ec"><enum>(C)</enum><text>whether
proprietary trading presents material conflicts of interest between covered
entities that engage in proprietary trading and the clients of the institutions
who use the firm to execute trades or who rely on the firm to manage assets,
and if so, the costs and benefits of options for mitigating such conflicts of
interest;</text>
</subparagraph><subparagraph id="ID97d5d49d887e4ac6b002ae91281ad57b"><enum>(D)</enum><text>whether adequate
disclosure regarding the risks and conflicts of proprietary trading is provided
to the depositors, trading and asset management clients, and investors of
covered entities that engage in proprietary trading, and if not, the costs and
benefits of options for the improvement of such disclosure; and</text>
</subparagraph><subparagraph id="IDbe2db4bb0e4b442686089c8a6f743ad1"><enum>(E)</enum><text>whether the
banking, securities, and commodities regulators of institutions that engage in
proprietary trading have in place adequate systems and controls to monitor and
contain any risks and conflicts of interest related to proprietary trading, and
if not, the costs and benefits of options for the improvement of such systems
and controls.</text>
</subparagraph></paragraph><paragraph id="ID3493a2e86fd6420c884361640f1ed08a"><enum>(2)</enum><header>Considerations</header><text>In
carrying out the study required under paragraph (1), the Comptroller General
shall consider—</text>
<subparagraph id="IDffee504c3a8e4c5c92f4e3aa6f8e2985"><enum>(A)</enum><text>current practice
relating to proprietary trading;</text>
</subparagraph><subparagraph id="IDf21842bee74144569c842095daa890d7"><enum>(B)</enum><text>the advisability
of a complete ban on proprietary trading;</text>
</subparagraph><subparagraph id="ID681ec8576fb8473e8b4a2a5eac76134b"><enum>(C)</enum><text>limitations on
the scope of activities that covered entities may engage in with respect to
proprietary trading;</text>
</subparagraph><subparagraph id="IDcd5f56a160da4aebbe095280b2bf4b2c"><enum>(D)</enum><text>the advisability
of additional capital requirements for covered entities that engage in
proprietary trading;</text>
</subparagraph><subparagraph id="IDeb44e11078534357bc0cc7bf407c4319"><enum>(E)</enum><text>enhanced
restrictions on transactions between affiliates related to proprietary
trading;</text>
</subparagraph><subparagraph id="ID6c030c479c1e4da2999fb158b2f364c4"><enum>(F)</enum><text>enhanced
accounting disclosures relating to proprietary trading;</text>
</subparagraph><subparagraph id="ID6db107e7df814705994ca9c929e5817a"><enum>(G)</enum><text>enhanced public
disclosure relating to proprietary trading; and</text>
</subparagraph><subparagraph id="ID9cf4af762e324d2a8a42459f0d22a298"><enum>(H)</enum><text>any other options
the Comptroller General deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDa1a04a0b6fcf412288b7ab3554b7ca56"><enum>(c)</enum><header>Report to
Congress</header><text>Not later than 15 months after the date of enactment of
this Act, the Comptroller General shall submit a report to Congress on the
results of the study conducted under subsection (b).</text>
</subsection><subsection id="IDce5ff609a5a643fc801abb34731f6211"><enum>(d)</enum><header>Access by
Comptroller General</header><text>For purposes of conducting the study required
under subsection (b), the Comptroller General shall have access, upon request,
to any information, data, schedules, books, accounts, financial records,
reports, files, electronic communications, or other papers, things, or property
belonging to or in use by a covered entity that engages in proprietary trading,
and to the officers, directors, employees, independent public accountants,
financial advisors, staff, and agents and representatives of a covered entity
(as related to the activities of the agent or representative on behalf of the
covered entity), at such reasonable times as the Comptroller General may
request. The Comptroller General may make and retain copies of books, records,
accounts, and other records, as the Comptroller General deems
appropriate.</text>
</subsection><subsection id="IDc9bd0099bc084d0790fd0d4a3862ed85"><enum>(e)</enum><header>Confidentiality
of reports</header>
<paragraph id="idEC700C29D7F242808EC21EC2F5F2773D"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the Comptroller
General may not disclose information regarding—</text>
<subparagraph id="id673F200702D24ECE937FF1F30841010A"><enum>(A)</enum><text>any proprietary
trading activity of a covered entity, unless such information is disclosed at a
level of generality that does not reveal the investment or trading position or
strategy of the covered entity for any specific security, commodity,
derivative, or other investment or financial product; or</text>
</subparagraph><subparagraph id="id00541A7BAD8D44D681270D46D471C749"><enum>(B)</enum><text>any individual
interviewed by the Comptroller General for purposes of the study under
subsection (b), unless such information is disclosed at a level of generality
that does not reveal—</text>
<clause id="idD2BFD0D38FEE4ACCBFF114AEB8E8056C"><enum>(i)</enum><text>the
name of or identifying details relating to such individual; or</text>
</clause><clause id="id41E0720FA0BE46C1B941AAF297F23955"><enum>(ii)</enum><text>in the
case of an individual who is an employee of a third party that provides
professional services to a covered entity believed to be engaged in proprietary
trading, the name of or any identifying details relating to such third
party.</text>
</clause></subparagraph></paragraph><paragraph id="idD8D3A0DFB0E745DE99E93B2905E9D23F"><enum>(2)</enum><header>Exceptions</header><text>The
Comptroller General may disclose the information described in paragraph
(1)—</text>
<subparagraph id="ID4e1eb34cbac44737b3f01650922fd4ad"><enum>(A)</enum><text>to a department,
agency, or official of the Federal Government, for official use, upon
request;</text>
</subparagraph><subparagraph id="ID15aad2c757ca4825a0234a68aa984b2d"><enum>(B)</enum><text>to a committee of
Congress, upon request; and</text>
</subparagraph><subparagraph id="IDf235b4f5082f4c0198a68bf0066d008e"><enum>(C)</enum><text>to a court, upon
an order of such court.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDfc1f0df3594446728bed6e4d71363abb" section-type="subsequent-section"><enum>989A.</enum><header display-inline="yes-display-inline">Senior investor protections</header>
<subsection commented="no" display-inline="no-display-inline" id="id4130432B68354511AE0F3DD358419586"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id762294BF7FD34F0A8EE9A1559464B2F7"><enum>(1)</enum><text>the term
<term>eligible entity</term> means—</text>
<subparagraph id="id0E0094C051F643A284DBAE39BE65FC03"><enum>(A)</enum><text>a
securities commission (or any agency or office performing like functions) of a
State that the Office determines has adopted rules on the appropriate use of
designations in the offer or sale of securities or investment advice that meet
or exceed the minimum requirements of the NASAA Model Rule on the Use of
Senior-Specific Certifications and Professional Designations (or any successor
thereto);</text>
</subparagraph><subparagraph id="IDc6d9db5c7f6d413c8168a35e3101d67c"><enum>(B)</enum><text>the insurance
commission (or any agency or office performing like functions) of any State
that the Office determines has—</text>
<clause id="idD0994E72C6454E238F9BC9472E6B315D"><enum>(i)</enum><text>adopted
rules on the appropriate use of designations in the sale of insurance products
that, to the extent practicable, conform to the minimum requirements of the
National Association of Insurance Commissioners Model Regulation on the Use of
Senior-Specific Certifications and Professional Designations in the Sale of
Life Insurance and Annuities (or any successor thereto); and</text>
</clause><clause id="id0984BD136291472096FF7D95A49EA83F"><enum>(ii)</enum><text>adopted rules
with respect to fiduciary or suitability requirements in the sale of annuities
that meet or exceed the minimum requirements established by the Suitability in
Annuity Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto); or</text>
</clause></subparagraph><subparagraph id="ID2f5077ca7b194edaa40e5fc389a4252d"><enum>(C)</enum><text>a
consumer protection agency of any State, if—</text>
<clause id="id81E0C636A10341859FC05932A476ED10"><enum>(i)</enum><text>the
securities commission (or any agency or office performing like functions) of
the State is eligible under subparagraph (A); or</text>
</clause><clause id="idD2C7626F6B8245068BECBB24E55139BF"><enum>(ii)</enum><text>the
insurance commission (or any agency or office performing like functions) of the
State is eligible under subparagraph (B);</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8c6806a463c440a0855748c3982877d5"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>financial product</term>
means a security, an insurance product (including an insurance product that
pays a return, whether fixed or variable), a bank product, and a loan
product;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2d2c5b181a7846d4b90202273e3c81da"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>misleading
designation</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id6DED7988598646B3A1207F4E2ECF698B"><enum>(A)</enum><text display-inline="yes-display-inline">means a certification, professional
designation, or other purported credential that indicates or implies that a
salesperson or adviser has special certification or training in advising or
servicing seniors; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5CBAB3782DEB4D49A2604431F6F676DB"><enum>(B)</enum><text display-inline="yes-display-inline">does not include a certification,
professional designation, license, or other credential that—</text>
<clause commented="no" display-inline="no-display-inline" id="ID0e88bf0b88da40008b8aaf0b1e44ecb8"><enum>(i)</enum><text display-inline="yes-display-inline">was issued by or obtained from an academic
institution having regional accreditation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID391ece0595fd49c798877ac4cc1c9e48"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the standards for certifications,
licenses, and professional designations outlined by the NASAA Model Rule on the
Use of Senior-Specific Certifications and Professional Designations in the Sale
of Life Insurance and Annuities, adopted by the National Association of
Insurance Commissioners (or any successor thereto); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5D21DAE070254E719EFCF813B0A0FA4E"><enum>(iii)</enum><text display-inline="yes-display-inline">was issued by or obtained from a
State;</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID403028e2b5c74b84ba4983504d575845"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>misleading or fraudulent
marketing</term> means the use of a misleading designation by a person that
sells to or advises a senior in connection with the sale of a financial
product;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id266C4CFE90B94BBBB972C453D33FCC3D"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>NASAA</term> means the North
American Securities Administrators Association;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3D941707BECC4B1CB86B9D49820EE5FD"><enum>(6)</enum><text>the term
<term>Office</term> means the Office of Financial Literacy of the Bureau;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8243138a35894591a0a672b83a745650"><enum>(7)</enum><text display-inline="yes-display-inline">the term <term>senior</term> means any
individual who has attained the age of 62 years or older.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC14A182B1B1D41C0B2E4D2071133E1B9"><enum>(b)</enum><header display-inline="yes-display-inline">Grants to States for enhanced protection of
seniors from being misled by false designations</header><text display-inline="yes-display-inline">The Office shall establish a program under
which the Office may make grants to States or eligible entities—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0899fa52e13c43d5855fa61d063497c1"><enum>(1)</enum><text display-inline="yes-display-inline">to hire staff to identify, investigate, and
prosecute (through civil, administrative, or criminal enforcement actions)
cases involving misleading or fraudulent marketing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID51d98783e0c84159a1887dde5b40ffe0"><enum>(2)</enum><text display-inline="yes-display-inline">to fund technology, equipment, and training
for regulators, prosecutors, and law enforcement officers, in order to identify
salespersons and advisers who target seniors through the use of misleading
designations;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDdb3f51fbe1984b3f840cb05eb9ee972f"><enum>(3)</enum><text display-inline="yes-display-inline">to fund technology, equipment, and training
for prosecutors to increase the successful prosecution of salespersons and
advisers who target seniors with the use of misleading designations;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID41f1f27cb9a240c0be866207b3be2489"><enum>(4)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to regulators on the appropriateness of the use of designations by
salespersons and advisers in connection with the sale and marketing of
financial products;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDde17191094fd4742992aead54478019a"><enum>(5)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to seniors to increase awareness and understanding of misleading or
fraudulent marketing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID847bd9192e894a1ebef2d49341442bd3"><enum>(6)</enum><text display-inline="yes-display-inline">to develop comprehensive plans to combat
misleading or fraudulent marketing of financial products to seniors; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID68ee172b9f1b4397807f154508bb9a52"><enum>(7)</enum><text display-inline="yes-display-inline">to enhance provisions of State law to
provide protection for seniors against misleading or fraudulent
marketing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8a8ca3b60f4f438186e78733fe0316f8"><enum>(c)</enum><header display-inline="yes-display-inline">Applications</header><text display-inline="yes-display-inline">A State or eligible entity desiring a grant
under this section shall submit an application to the Office, in such form and
in such a manner as the Office may determine, that includes—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD0FEDE6885B348829FE5EF305CE9AEA4"><enum>(1)</enum><text display-inline="yes-display-inline">a proposal for activities to protect
seniors from misleading or fraudulent marketing that are proposed to be funded
using a grant under this section, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd977695ca4814df0a95af85d69f05374"><enum>(A)</enum><text display-inline="yes-display-inline">an identification of the scope of the
problem of misleading or fraudulent marketing in the State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID33741e988c364e4b94c45f4b70059d1e"><enum>(B)</enum><text display-inline="yes-display-inline">a description of how the proposed
activities would—</text>
<clause commented="no" display-inline="no-display-inline" id="id577D15B273184EDC8A8579D5CD118163"><enum>(i)</enum><text display-inline="yes-display-inline">protect seniors from misleading or
fraudulent marketing in the sale of financial products, including by
proactively identifying victims of misleading and fraudulent marketing who are
seniors;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID56402623255e4ed98ea3ff068b49b8a3"><enum>(ii)</enum><text display-inline="yes-display-inline">assist in the investigation and prosecution
of those using misleading or fraudulent marketing; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1ea88e8b06194ec49504ec2afefa3a69"><enum>(iii)</enum><text display-inline="yes-display-inline">discourage and reduce cases of misleading
or fraudulent marketing; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID88ac66819bb64cee92c5ca6d7fab2e6a"><enum>(C)</enum><text display-inline="yes-display-inline">a description of how the proposed
activities would be coordinated with other State efforts; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8AED1C1FCCA449E082935095E119AE1A"><enum>(2)</enum><text>any other
information, as the Office determines is appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID434c86da3d9547b793b03acf59a30129"><enum>(d)</enum><header>Performance
objectives and reporting requirements</header><text display-inline="yes-display-inline">The Office may establish such performance
objectives and reporting requirements for States and eligible entities
receiving a grant under this section as the Office determines are necessary to
carry out and assess the effectiveness of the program under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID3878773e6d2b42b1805bc19912e593c1"><enum>(e)</enum><header display-inline="yes-display-inline">Maximum
amount</header><text display-inline="yes-display-inline">The amount of a grant
under this section may not exceed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8F9ACF74117B4964BD63F5C26687BF7E"><enum>(1)</enum><text display-inline="yes-display-inline">$500,000 for each of 3 consecutive fiscal
years, if the recipient is a State, or an eligible entity of a State, that has
adopted rules—</text>
<subparagraph id="ID0a7e27d209d04e5c8091719c50fa778d"><enum>(A)</enum><text display-inline="yes-display-inline">on the appropriate use of designations in
the offer or sale of securities or investment advice that meet or exceed the
minimum requirements of the NASAA Model Rule on the Use of Senior-Specific
Certifications and Professional Designations (or any successor thereto);</text>
</subparagraph><subparagraph id="idF8E41ABD20564643A67369A6C8E716DC"><enum>(B)</enum><text>on the
appropriate use of designations in the sale of insurance products that, to the
extent practicable, conform to the minimum requirements of the National
Association of Insurance Commissioners Model Regulation on the Use of
Senior-Specific Certifications and Professional Designations in the Sale of
Life Insurance and Annuities (or any successor thereto); and</text>
</subparagraph><subparagraph id="id2A67C67FA18D401EA404429082ABF60D"><enum>(C)</enum><text>with respect to
fiduciary or suitability requirements in the sale of annuities that meet or
exceed the minimum requirements established by the Suitability in Annuity
Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id09FEB221BF1A41AC83BC1E47DF60F7D9"><enum>(2)</enum><text display-inline="yes-display-inline">$100,000 for each of 3 consecutive fiscal
years, if the recipient is a State, or an eligible entity of a State, that has
adopted—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id063A49FA6C9E429B9DF5DB9B9EF8B55B"><enum>(A)</enum><text>rules on the
appropriate use of designations in the offer or sale of securities or
investment advice that meet or exceed the minimum requirements of the NASAA
Model Rule on the Use of Senior-Specific Certifications and Professional
Designations (or any successor thereto); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id073FD1C464074B4F9609AB485832AF17"><enum>(B)</enum><text>rules—</text>
<clause id="id64F8EB3CFABF45468664C7C88288498C"><enum>(i)</enum><text>on the
appropriate use of designations in the sale of insurance products that, to the
extent practicable, conform to the minimum requirements of the National
Association of Insurance Commissioners Model Regulation on the Use of
Senior-Specific Certifications and Professional Designations in the Sale of
Life Insurance and Annuities (or any successor thereto); and</text>
</clause><clause id="id235AA0F202644016B9C90B7B9322BACC"><enum>(ii)</enum><text>with
respect to fiduciary or suitability requirements in the sale of annuities that
meet or exceed the minimum requirements established by the Suitability in
Annuity Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto).</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id612BC8B44AC741F5B9175E0D8FA82774"><enum>(f)</enum><header>Subgrants</header><text>A
State or eligible entity that receives a grant under this section may make a
subgrant, as the State or eligible entity determines is necessary to carry out
the activities funded using a grant under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC7DE41438E6642A788EF0B213095C865"><enum>(g)</enum><header>Reapplication</header><text>A
State or eligible entity that receives a grant under this section may reapply
for a grant under this section, notwithstanding the limitations on grant
amounts under subsection (e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID103014e7343b470b8e2ba926f5fc5f53"><enum>(h)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to carry out this section, $8,000,000 for each of
fiscal years 2011 through 2015.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD47828FA72254FC4B45B050252F42D48"><enum>989B.</enum><header display-inline="yes-display-inline">Changes in appointment of certain
Inspectors General</header>
<subsection commented="no" display-inline="no-display-inline" id="idFCEE7C60B5684B9CAD9367F1CFE05896"><enum>(a)</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>
<paragraph commented="no" display-inline="no-display-inline" id="H17620D63492146C2936CFDDD891357B7"><enum>(1)</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>
<subparagraph commented="no" display-inline="no-display-inline" id="HCFF842E63C714BF78097CF59BF43B844"><enum>(A)</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 Chairman of the Board
of Directors of the Pension Benefit Guaranty Corporation; the Chairman of the
Securities and Exchange Commission; or the Director of the Bureau of Consumer
Financial Protection;</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C930E0B613F4C4FB57F3C74CA7F25CC"><enum>(B)</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 Bureau of Consumer Financial
Protection,</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9895A451174447D5B8203B7BD83990AA"><enum>(2)</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>
<subparagraph commented="no" display-inline="no-display-inline" id="H607B4595AB0B450DBDA6B7E6A1DE7214"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>the Board of Governors
of the Federal Reserve System,</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE745240B35EE45FFA474F0632AAC28D0"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>the Commodity Futures
Trading Commission,</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB69870AA6A2540D0A76116B2B99C89DA"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>the National Credit
Union Administration,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBF3369E0A33F4E04A31B634A7A18D1C7"><enum>(D)</enum><text display-inline="yes-display-inline">by striking <quote>the Pension Benefit
Guaranty Corporation, the Securities and Exchange Commission,</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4AAA0C08927E419A8B32B91C2F81EC49"><enum>(b)</enum><header display-inline="yes-display-inline">Continuation of provisions relating to
personnel</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7A79B55624BE4992A60CB6998847FF1B"><enum>(1)</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; 122
Stat. 4304) shall apply in the same manner as if such covered establishment
were a designated Federal entity under section 8G of this Act. An Inspector
General who is subject to the preceding sentence shall not be subject to
section 3(e) of this Act.</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 the covered 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 the covered 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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H12368ADC59434D538BCA9894ED0F2C1F"><enum>(2)</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>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4A6B0875DAFF43DA8F80D7B0EC83155A"><enum>(c)</enum><header display-inline="yes-display-inline">Corrective responses by heads of certain
establishments to deficiencies identified by Inspectors General</header><text display-inline="yes-display-inline">The Chairman of the Board of Governors, the
Chairman of the Commodity Futures Trading Commission, the Chairman of the
National Credit Union Administration, the Chairman of the Board of Directors of
the Pension Benefit Guaranty Corporation, and the Chairman of the 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 the Senate and the House of
Representatives that no action is necessary or appropriate in connection with a
deficiency described in paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2E60FB2B667D4AFA9E534665E08B08F8"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date; transition rule</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF34DDC4A2EE94DCEA31DF2C4124EA380"><enum>(1)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This section and the
amendments made by this section shall take effect 30 days after the date of
enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23B9E65758B94FA18B08CE4C821E2F3D"><enum>(2)</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, the Commodity Futures Trading Commission, the
National Credit Union Administration, the Pension Benefit Guaranty Corporation,
or the Commission on the effective date of this section pursuant to an
appointment made under section 8G of the Inspector General Act of 1978 (5
U.S.C. App.)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6805F44DCE4748AA8828E784F34544A0"><enum>(A)</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, the Commodity Futures Trading Commission, the National Credit
Union Administration, the Pension Benefit Guaranty Corporation, or the
Commission, as the case may be, consistent with the amendments made by
subsection (a); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCB7B9350359941789620C2A90028D32C"><enum>(B)</enum><text display-inline="yes-display-inline">shall, while serving under subparagraph
(A)—</text>
<clause commented="no" display-inline="no-display-inline" id="idA0FFE0EFCD764FD9ADACA6023405DC49"><enum>(i)</enum><text display-inline="yes-display-inline">remain subject to the provisions of section
8G of such Act that applied with respect to the Inspector General of the Board
of Governors, the Commodity Futures Trading Commission, the National Credit
Union Administration, the Pension Benefit Guaranty Corporation, or the
Commission, as the case may be, on the day before the effective date of this
section; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4D3F08D2C5A24BAB851B8E3BC6E93192"><enum>(ii)</enum><text display-inline="yes-display-inline">suffer no reduction in pay.</text>
</clause></subparagraph></paragraph></subsection></section></subtitle><subtitle id="id12DF778279404563A689F788A021BF09"><enum>J</enum><header>Self-funding of
the Securities and Exchange Commission</header>
<section id="IDe444dd21ff6c4151a25e2ccd02cac31d"><enum>991.</enum><header>Securities and
exchange commission self-funding</header>
<subsection id="ID2390555131a74ca692042e9c3969faf9"><enum>(a)</enum><header>Self-funding
authority</header><text>Section 4 of the Securities Exchange Act of 1934 (15
U.S.C. 78d) is amended—</text>
<paragraph id="ID3c58f04fc7e84f0cb74727b177aef4e1"><enum>(1)</enum><text>in
subsection (c), in the second sentence, by striking <quote>credited to the
appropriated funds of the Commission</quote> and inserting <quote>deposited in
the account described in subsection (i)(4)</quote>;</text>
</paragraph><paragraph id="ID049af041c3d34596808fcfc7bb43d414"><enum>(2)</enum><text>in
subsection (f), in the second sentence, by striking <quote>considered a
reimbursement to the appropriated funds of the Commission</quote> and inserting
<quote>deposited in the account described in subsection (i)(4)</quote>;
and</text>
</paragraph><paragraph id="ID814fa55cbaf44865957e65aeac7da469"><enum>(3)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6D22561D9C4947889F1B020EB0220CEE" style="OLC">
<subsection id="ID21ad091f262b4bf79aae143ce71eaf1e"><enum>(i)</enum><header>Funding of the
commission</header>
<paragraph id="ID3ee62d762da7472382e31873a5d5b6ca"><enum>(1)</enum><header>Budget</header><text>For
each fiscal year, the Chairman of the Commission shall prepare and submit to
Congress a budget to Congress. Such budget shall be submitted at the same time
the President submits a budget of the United States to Congress for such fiscal
year. The budget submitted by the Chairman of the Commission pursuant to this
paragraph shall not be considered a request for appropriations.</text>
</paragraph><paragraph id="IDed14d108c13f44bb95a30a32c6cc783e"><enum>(2)</enum><header>Treasury
payment</header>
<subparagraph id="ID2c7e53846f07470a90a58e8454017431"><enum>(A)</enum><text>On the first day
of each fiscal year, the Treasury shall pay into the account described in
paragraph (4) an amount equal to the budget submitted by the Chairman of the
Commission pursuant to paragraph (1) for such fiscal year.</text>
</subparagraph><subparagraph id="ID92239f3f027541d88daa8945f87b9f5f"><enum>(B)</enum><text>At or prior to
the end of each fiscal year, the Commission shall pay to the Treasury from fees
and assessments deposited in the account described in paragraph (4) an amount
equal to the amount paid by the Treasury pursuant to subparagraph (A) for such
fiscal year, unless there are not sufficient fees and assessments deposited in
such account at or prior to the end of the fiscal year to make such payment, in
which case the Commission shall make such payment in a subsequent fiscal
year.</text>
</subparagraph></paragraph><paragraph id="ID9a9bf84bfcd14723b8624a005ecb0907"><enum>(3)</enum><header>Obligations and
expenses</header>
<subparagraph id="idA993D6655407461FA3DB64F142DD39B0"><enum>(A)</enum><header>In
general</header><text>The Commission shall determine and prescribe the manner
in which—</text>
<clause id="idFC7ADA68751042B19649D3CD4A3051FD"><enum>(i)</enum><text>the
obligations of the Commission shall be incurred; and</text>
</clause><clause id="id087ACA3E744141CDB33D61045ACB0345"><enum>(ii)</enum><text>the
disbursements and expenses of the Commission allowed and paid.</text>
</clause></subparagraph><subparagraph id="idBFC898DE300648019569B5AA46BFC2CB"><enum>(B)</enum><header>Insufficient
funds</header><text>If, in the course of any fiscal year, the Chairman of the
Commission determines that, due to unforeseen circumstances, the obligations of
the Commission will exceed those provided for in the budget submitted under
paragraph (1), the Chairman of the Commission may notify Congress of the amount
and expected uses of the additional obligations.</text>
</subparagraph><subparagraph id="idFAA785DC301D4897B8447EE7454E94D5"><enum>(C)</enum><header>Authority to
incur excess obligations</header><text>The Commission may incur obligations in
excess of the budget submitted under paragraph (1) from amounts available in
the account described in paragraph (4).</text>
</subparagraph><subparagraph id="id104437AFF62043129FDDE775EF72546F"><enum>(D)</enum><header>Rule of
construction</header><text>Any notification to Congress under this paragraph
shall not be considered a request for appropriations.</text>
</subparagraph></paragraph><paragraph id="IDefd610fd44594a2c88040f45bc43837a"><enum>(4)</enum><header>Account</header>
<subparagraph id="id96E8889885494DF1967EDA1F47A81E32"><enum>(A)</enum><header>Establishment</header><text>Fees
and assessments collected under this title, section 6(b) of the Securities Act
of 1933 (15 U.S.C. 77f(b)), and section 24(f) of the Investment Company Act of
1940 (15 U.S.C. 80a–24(f)) and payments made by the Treasury pursuant to
paragraph (2)(A) for any fiscal year shall be deposited into an account
established at any regular Government depositary or any State or national
bank.</text>
</subparagraph><subparagraph id="idF67BF235A0B248928533901E01C165BE"><enum>(B)</enum><header>Rule of
construction</header><text>Any amounts deposited into the account established
under subparagraph (A) shall not be construed to be Government funds or
appropriated monies.</text>
</subparagraph><subparagraph id="id662FC29D96E64616A89A4D0B72C920DA"><enum>(C)</enum><header>No
apportionment</header><text>Any amounts deposited into the account established
under subparagraph (A) shall not be subject to apportionment for the purpose of
chapter 15 of title 31, United States Code, or under any other
authority.</text>
</subparagraph></paragraph><paragraph id="ID8abca11cbef643c692ef4a094e1a62cd"><enum>(5)</enum><header>Use of account
funds</header>
<subparagraph id="id8AAC4427395F4C668DDCB5F1681E5A93"><enum>(A)</enum><header>Permissible
uses</header><text>Amounts available in the account described in paragraph (4)
may be withdrawn by the Commission and used for the purposes described in
paragraphs (2) and (3).</text>
</subparagraph><subparagraph id="id59F5EA24D6054B6B81D8F8237BF17AD4"><enum>(B)</enum><header>Impermissible
use</header><text>Except as provided in paragraph (6), no amounts available in
the account described in paragraph (4) shall be deposited and credited as
general revenue of the Treasury.</text>
</subparagraph></paragraph><paragraph id="IDf6345c22d4e24374ac31710ca67cab3e"><enum>(6)</enum><header>Excess
funds</header><text>If, at the end of any fiscal year and after all payments
have been made to the Treasury pursuant to paragraph (2)(B) for such fiscal
year and all prior fiscal years, the balance of the account described in
paragraph (4) exceeds 25 percent of the budget of the Commission for the
following fiscal year, the amount by which the balance exceeds 25 percent of
such budget shall be credited as general revenue of the
Treasury.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID030c8b5999e24a9c859a89a6c0b31eee"><enum>(b)</enum><header>Conforming
amendments to transaction fee provisions</header><text>Section 31 of the
Securities Exchange Act of 1934 (15 U.S.C. 78ee) is amended—</text>
<paragraph id="ID6db6e133bad141b98798709c5a7d4915"><enum>(1)</enum><text>by
amending subsection (a) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idAA8E501C942B4E5DAB53A0CE28B27AE3" style="OLC">
<subsection id="ID417bdb680a904ad8af61e85ff47b29f4"><enum>(a)</enum><header>Recovery of
costs and expenses</header>
<paragraph id="idE303A214A11540ABBDCFB08F42A23182"><enum>(1)</enum><header>In
general</header><text>The Commission shall, in accordance with this section,
collect transaction fees and assessments that are designed—</text>
<subparagraph id="idD18B8BA8607449E39D534D2BE3A2FC08"><enum>(A)</enum><text>to recover the
reasonable costs and expenses of the Commission, as set forth in the annual
budget of the Commission; and</text>
</subparagraph><subparagraph id="idEF81101F8DF844968E431BD25D017950"><enum>(B)</enum><text>to provide funds
necessary to maintain a reserve.</text>
</subparagraph></paragraph><paragraph id="idFD114EB5EA3F40EA8E6449CDFD3B4484"><enum>(2)</enum><header>Overpayments</header><text>The
authority to collect transaction fees and assessments in accordance with this
section shall include the authority to offset from such collection any
overpayment of transaction fees or assessments, regardless of the fiscal year
in which such overpayment is
made.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDd9612f83116d4d0596ae49f980026e92"><enum>(2)</enum><text>in
subsection (e)(2), by striking <quote>September 30</quote> and inserting
<quote>September 25</quote>;</text>
</paragraph><paragraph id="ID5e0e8ce909b244f39560eea4674cd0f8"><enum>(3)</enum><text>in
subsection (g), by striking <quote>April 30</quote> and inserting <quote>August
31</quote>;</text>
</paragraph><paragraph id="ID1da8d6e0c1374d499492bced7bd7e0ec"><enum>(4)</enum><text>by
amending subsection (i) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idDC26C0CB4B814879BE8142F7EC48B61A" style="OLC">
<subsection id="ID2e31be3518284b7fb26341b08315f898"><enum>(i)</enum><header>Fee
collections</header><text>Fees and assessments collected pursuant to this
section shall be deposited and credited in accordance with section 4(g) of this
title.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDec3f82363dda41cdad680b808a49595a"><enum>(5)</enum><text>by
amending subsection (j) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id33CC5ADF5B744334A649DFF5B1A0E16C" style="OLC">
<subsection id="ID3aa3f5c886ec47eba9d82919425ad02a"><enum>(j)</enum><header>Adjustments to
transaction fee rates</header>
<paragraph id="ID4c63a570023c469e87149fe84565b492"><enum>(1)</enum><header>Annual
adjustment</header><text>For each fiscal year, the Commission shall by order
adjust each of the rates applicable under subsections (b) and (c) for such
fiscal year to a uniform adjusted rate that, when applied to the baseline
estimate of the aggregate dollar amount of sales for such fiscal year, is
reasonably likely to produce aggregate fee collections under this section
(including assessments collected under subsection (d)) that are equal to the
budget of the Commission for such fiscal year, plus amounts necessary to
maintain a reserve.</text>
</paragraph><paragraph id="ID88e68a0506f84c8595a0bc3807e67105"><enum>(2)</enum><header>Mid-year
adjustment</header><text>For each fiscal year, the Commission shall determine,
by March 1 of such fiscal year, whether, based on the actual aggregate dollar
volume of sales during the first 4 months of such fiscal year, the baseline
estimate of the aggregate dollar volume of sales used under paragraph (1) for
such fiscal year is reasonably likely to be 10 percent (or more) greater or
less than the actual aggregate dollar volume of sales for such fiscal year. If
the Commission so determines, the Commission shall by order, not later than
March 1, adjust each of the rates applicable under subsections (b) and (c) for
such fiscal year to a uniform adjusted rate that, when applied to the revised
estimate of the aggregate dollar amount of sales for the remainder of such
fiscal year, is reasonably likely to produce aggregate fee collections under
this section (including fees estimated to be collected under subsections (b)
and (c) during such fiscal year prior to the effective date of the new uniform
adjusted rate and assessments collected under subsection (d)) that are equal to
the budget of the Commission for such fiscal year, plus amounts necessary to
maintain a reserve. In making such revised estimate, the Commission shall,
after consultation with the Congressional Budget Office and the Office of
Management and Budget, use the same methodology required by paragraph
(4).</text>
</paragraph><paragraph id="IDe304600098e54f43ae06682928b598d1"><enum>(3)</enum><header>Review and
effective date</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5 United States Code. An adjusted rate prescribed under paragraph
(1) or (2) and published under subsection (g) shall not be subject to judicial
review. An adjusted rate prescribed under paragraph (1) shall take effect on
the first day of the fiscal year to which such rate applies. An adjusted rate
prescribed under paragraph (2) shall take effect on April 1 of the fiscal year
to which such rate applies.</text>
</paragraph><paragraph id="ID7a1f6131487143798f17676c3775e5de"><enum>(4)</enum><header>Baseline
estimate of the aggregate dollar amount of sales</header><text>For purposes of
this subsection, the baseline estimate of the aggregate dollar amount of sales
for any fiscal year is the baseline estimate of the aggregate dollar amount of
sales of securities (other than bonds, debentures, other evidences of
indebtedness, security futures products, and options on securities indexes
excluding a narrow-based security index) to be transacted on each national
securities exchange and by or through any member of each national securities
association (otherwise than on a national securities exchange) during such
fiscal year as determined by the Commission, after consultation with the
Congressional Budget Office and the Office of Management and Budget, using the
methodology required for making projections pursuant to section 907 of title
2.</text>
</paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDba36944651fb4a0f9e0264bed76d75ca"><enum>(6)</enum><text>by
striking subsections (k) and (l).</text>
</paragraph></subsection><subsection id="ID0453a18ebe854297891b736defb07ed3"><enum>(c)</enum><header>Conforming
amendments to registration fee provisions</header>
<paragraph id="IDa733b8603c99417fba90907b981e52fa"><enum>(1)</enum><header>Section 6(b) of
the Securities Act of 1933</header><text>Section 6(b) of the Securities Act of
1933 (15 U.S.C. 77f(b)) is amended—</text>
<subparagraph id="ID8395f56e98514fa8b05e8d561aa11087"><enum>(A)</enum><text>by striking
<quote>offsetting</quote> each place that term appears and inserting
<quote>fee</quote>;</text>
</subparagraph><subparagraph id="idD1D087FD605848C29DA7EE09D77D5BFA"><enum>(B)</enum><text>in paragraph (3),
in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Offsetting</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Fee</header-in-text></quote>;</text>
</subparagraph><subparagraph id="id133D3F0F12DE4785B2F854179BD05FAB"><enum>(C)</enum><text>in paragraph
(11)(A), in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">offsetting</header-in-text></quote> and
inserting <quote><header-in-text level="subparagraph" style="OLC">fee</header-in-text></quote>;</text>
</subparagraph><subparagraph id="IDe6a2870746164fcf97f415eb81d325e2"><enum>(D)</enum><text>by striking
paragraphs (1), (3), (4), (6), (8), and (9);</text>
</subparagraph><subparagraph id="id9B9270AD444640E2852AC1AC928C29F4"><enum>(E)</enum><text>by redesignating
paragraph (2) as paragraph (1);</text>
</subparagraph><subparagraph id="IDa54a6fa5d5af424db7af2ef9eec6e990"><enum>(F)</enum><text>in paragraph (1),
as so redesignated, by striking <quote>(5) or (6)</quote> and inserting
<quote>(3)</quote>;</text>
</subparagraph><subparagraph id="id24780D968E4742D2B9922A90969D9EF5"><enum>(G)</enum><text>by inserting
after paragraph (1), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="idF3E309F711684CA3A1B590756E07DC65" style="OLC">
<paragraph id="IDacb7942d10fb4d11b570491bc06b2fa1"><enum>(2)</enum><header>Fee
collections</header><text>Fees collected pursuant to this subsection shall be
deposited and credited in accordance with section 4(i) of the Securities
Exchange Act of
1934.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id4B9BFA371BF240629FCE97589CB0BDB3"><enum>(H)</enum><text>by redesignating
paragraph (5) as paragraph (3);</text>
</subparagraph><subparagraph id="ID4241d58acd0743d2b05268f75bb1668e"><enum>(I)</enum><text>in paragraph (3),
as redesignated—</text>
<clause id="ID241cf4b5561f463483a65dbff5751ed2"><enum>(i)</enum><text>by
striking <quote>of the fiscal years 2003 through 2011</quote> and inserting
<quote>fiscal year</quote>; and</text>
</clause><clause id="ID3fe1d2eac6e14029a266e4448593f5b5"><enum>(ii)</enum><text>by
striking <quote>paragraph (2)</quote> and inserting <quote>paragraph
(1)</quote>;</text>
</clause></subparagraph><subparagraph id="IDc853749a7113493cad3cbf71447b0935"><enum>(J)</enum><text>by redesignating
paragraph (7) as paragraph (4);</text>
</subparagraph><subparagraph id="ID5aa43c93687645bea0b1e0e8be3aff27"><enum>(K)</enum><text>by inserting
after paragraph (4), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="idC979C313B99D442285D86C7B5B1F7311" style="OLC">
<paragraph id="ID532773dd35b74a4bb66b16977c6099b5"><enum>(5)</enum><header>Review and
effective date</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5, United States Code. An adjusted rate prescribed under paragraph
(3) and published under paragraph (6) shall not be subject to judicial review.
An adjusted rate prescribed under paragraph (3) shall take effect on the first
day of the fiscal year to which such rate
applies.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID1a2d9d2114254179bf4142578c902d90"><enum>(L)</enum><text>by redesignating
paragraphs (10) and (11), as paragraphs (6) and (7);</text>
</subparagraph><subparagraph id="ID37c3b5f010dd453f866fd915463f73fa"><enum>(M)</enum><text>in paragraph (6),
as redesignated, by striking <quote>April 30</quote> and inserting
<quote>August 31</quote>; and</text>
</subparagraph><subparagraph id="IDdfa282a7594a4729a52c0d0502602716"><enum>(N)</enum><text>in paragraph (7),
as redesignated—</text>
<clause id="ID0579650858f1442396a64a013f7ba282"><enum>(i)</enum><text>by
striking <quote>of the fiscal years 2002 through 2011</quote> and inserting
<quote>fiscal year</quote>; and</text>
</clause><clause id="ID8267ce3345a849ca82eae86b79b76f61"><enum>(ii)</enum><text>by
inserting at the end of the table in subparagraph (A) the following:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="all" line-rules="all-gen" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Entry: 2 text, bold hds" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt-no-ldr" colname="column1" colwidth="230pts" min-data-value="190"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colwidth="95pts" min-data-value="95"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" stub-definition="txt-clr" stub-hierarchy="1"><bold>2012 and each succeeding
fiscal year</bold></entry><entry colname="column2" leader-modify="clr-ldr"><bold>An amount that is equal to the target fee
collection amount for the prior fiscal year adjusted by the rate of
inflation.</bold></entry>
</row>
</tbody>
</tgroup>
</table>
</clause></subparagraph></paragraph><paragraph id="ID54e7c9e61b5c4b4c81e9907c2cae9507"><enum>(2)</enum><header>Section 13(e)
of the Securities Exchange Act of 1934</header><text>Section 13(e) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m(e)) is amended—</text>
<subparagraph id="IDb359fe15e8eb414484ffc20c5fa62240"><enum>(A)</enum><text>by striking
<quote>offsetting</quote> each place that term appears and inserting
<quote>fee</quote>;</text>
</subparagraph><subparagraph id="ID17426aba720642da91d2ba8a7fd3f372"><enum>(B)</enum><text>in paragraph (3)
by striking <quote>paragraphs (5) and (6)</quote> and inserting
<quote>paragraph (5)</quote>;</text>
</subparagraph><subparagraph id="IDbbcb1a1419424aa284d8eccc70cc5092"><enum>(C)</enum><text>by amending
paragraph (4) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id3C3AEEB5FFB34BC5BBD82A0CB6884AD9" style="OLC">
<paragraph id="ID25715d77a84547b1bf459e3db97eaafa"><enum>(4)</enum><header>Fee
collections</header><text>Fees collected pursuant to this subsection shall be
deposited and credited in accordance with section 4(g) of this
title.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDd29efae4fd33479b93c6cfc1daddfa70"><enum>(D)</enum><text>in paragraph (5),
by striking <quote>of the fiscal years 2003 through 2011</quote> and inserting
<quote>fiscal year</quote>;</text>
</subparagraph><subparagraph id="IDa74f15b1280a4ce9bc97b07c85a7edba"><enum>(E)</enum><text>by striking
paragraphs (6), (7), and (8);</text>
</subparagraph><subparagraph id="id6C5CC29EEA854F47BA5351322D01DB02"><enum>(F)</enum><text>by redesignating
paragraph (7) as paragraph (6);</text>
</subparagraph><subparagraph id="IDd1c06d5d2e8f4867b86623c1fea74aa2"><enum>(G)</enum><text>by inserting
after paragraph (6), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="idFE5A19F6D88E4DCA81401911B4E867A5" style="OLC">
<paragraph id="IDf9658ec72a4c4e3da3c3b844b9b2ea0e"><enum>(7)</enum><header>Review and
effective date</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5. An adjusted rate prescribed under paragraph (5) and published
under paragraph (8) shall not be subject to judicial review. An adjusted rate
prescribed under paragraph (5) shall take effect on the first day of the fiscal
year to which such rate
applies.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id560F2CF0FAF84A40906F01FDD940B978"><enum>(H)</enum><text>by striking
paragraph (9);</text>
</subparagraph><subparagraph id="idDA67D1F73C694C95AE968C3579902E68"><enum>(I)</enum><text>by redesignating
paragraph (10) as paragraph (8); and</text>
</subparagraph><subparagraph id="ID1731e62559de493eb0cdb79d28f485c7"><enum>(J)</enum><text>in paragraph (8),
as so redesignated, by striking <quote>6(b)(10)</quote> and inserting
<quote>6(b)(6)</quote>.</text>
</subparagraph></paragraph><paragraph id="IDfaae95f5aeb549c28cc5026b7d3fe62d"><enum>(3)</enum><header>Section 14 of
the Securities Exchange Act of 1934</header><text>Section 14(g) of the
Securities Exchange Act of 1934 (15 U.S.C. 78n(g)) is amended—</text>
<subparagraph id="ID205e47c1e78645c18368e2a75358a601"><enum>(A)</enum><text>by striking the
word <quote>offsetting</quote> each time that it appears and inserting in its
place the word <quote>fee</quote>;</text>
</subparagraph><subparagraph id="IDcd81ea6fb0f34bd3b389e3191497b9a8"><enum>(B)</enum><text>in paragraph
(1)(A), by striking <quote>paragraphs (5) and (6)</quote> each time it appears
and inserting <quote>paragraph (5)</quote>;</text>
</subparagraph><subparagraph id="ID32dd1ce1895e4e6a82272e39336aed3b"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>paragraphs (5) and (6)</quote> and inserting
<quote>paragraph (5)</quote>;</text>
</subparagraph><subparagraph id="ID5d76a6d88d6449eeacec1aaa51e1f0eb"><enum>(D)</enum><text>by amending
paragraph (4) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id3AF8BE54E0B040A992CBE6199BFA45F9" style="OLC">
<paragraph id="ID36bdc086e33741a683b427c1dafc1d0c"><enum>(4)</enum><header>Fee
collections</header><text>Fees collected pursuant to this subsection shall be
deposited and credited in accordance with section 4(g) of this
title.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID04bf0b8541d3488099f8b102abfdcf8e"><enum>(E)</enum><text>in paragraph (5),
by striking <quote>of the fiscal years 2003 through 2011</quote> and inserting
<quote>fiscal year</quote>;</text>
</subparagraph><subparagraph id="ID34ff2689b1be4a08b2c047fa6dc5c79f"><enum>(F)</enum><text>by striking
paragraphs (6), (8), and (9);</text>
</subparagraph><subparagraph id="id2DBB09227BF3471CBD2EBC56E5C2A35E"><enum>(G)</enum><text>by redesignating
paragraph (7) as paragraph (6);</text>
</subparagraph><subparagraph id="IDc1a8154a921f457e83426c8ae803f36f"><enum>(H)</enum><text>by inserting
after paragraph (6), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="idD646AE0872E347BA90341DE4F489FAE8" style="OLC">
<paragraph id="IDd39f1e8c39954e53905506281b1b1db1"><enum>(7)</enum><header>Review and
effective date</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5. An adjusted rate prescribed under paragraph (5) and published
under paragraph (8) shall not be subject to judicial review. An adjusted rate
prescribed under paragraph (5) shall take effect on the first day of the fiscal
year to which such rate
applies.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID08fc3e5964604295bc4e84f300156a48"><enum>(I)</enum><text>by redesignating
paragraphs (10) and (11) as paragraphs (8) and (9), respectively; and</text>
</subparagraph><subparagraph id="ID5b32c8d6b0994739b6c5be500fb577b3"><enum>(J)</enum><text>in paragraph (9),
as so redesignated, by striking <quote>6(b)(10)</quote> and inserting
<quote>6(b)(7)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDe86aada7ef6f4233baa8746f7c8a02f8"><enum>(d)</enum><header>Repeal of
authorization of appropriations</header><text>Section 35 of the Securities
Exchange Act of 1934 (15 U.S.C. 78kk) is repealed.</text>
</subsection><subsection id="ID994739076c5c4d75a0f4e294873527d5"><enum>(e)</enum><header>Effective date
and transition provisions</header>
<paragraph id="IDfd442d3bb2944d698bff6e6de2755f9c"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraphs (2) and (3), the
amendments made by this section shall be effective on the first day of the
fiscal year following the fiscal year in which this Act is enacted.</text>
</paragraph><paragraph id="ID2d726163305941229b2ca8d44b8b1c46"><enum>(2)</enum><header>Transition
period</header><text>For the fiscal year following the fiscal year in which
this Act is enacted, the budget of the Commission shall be deemed to be the
budget submitted by the Chairman of the Commission to the President for such
fiscal year in accordance with the provisions of section 1108 of title 31,
United States Code.</text>
</paragraph><paragraph id="ID822d904e4821443b9b07d89667df3b64"><enum>(3)</enum><header>Other
provisions</header><text>The amendments made by this section to subsections (g)
and (j)(1) of section 31 of the Securities Exchange Act of 1934 (15 U.S.C.
78ee) shall be effective on the date of enactment of this Act, and shall
require the Commission to make and publish an annual adjustment to the fee
rates applicable under subsections (b) and (c) of section 31 of the Securities
Exchange Act of 1934 (15 U.S.C. 78ee) for the fiscal year following the fiscal
year in which this Act is enacted. The adjusted rate described in the preceding
sentence shall supersede any previously published adjusted rate applicable
under subsections (b) and (c) of section 31 of the Securities Exchange Act of
1934 for the fiscal year following the fiscal year in which this Act is enacted
and shall take effect on the first day of the fiscal year following the fiscal
year in which this Act is enacted, except that, if this Act is enacted on or
after August 31 and on or prior to September 30, the adjusted rate described in
the first sentence shall be published not later than 15 days after the date of
enactment of this Act and take effect 30 days thereafter, and the Commission
shall continue to collect fees under subsections (b) and (c) of section 31 of
the Securities Exchange Act of 1934 at the rate in effect during the preceding
fiscal year until the adjusted rate is effective.</text>
</paragraph></subsection></section></subtitle><enum>X</enum><header>Bureau
of Consumer Financial Protection</header>
<section id="id9B98171A7A8E42B282E3A8E8C3FF15B8"><enum>1001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Consumer Financial Protection Act of 2010</quote>.</text>
</section><section id="ID20f8ddfabe19400ab5e455bcaaa8537b"><enum>1002.</enum><header>Definitions</header><text display-inline="no-display-inline">Except as otherwise provided in this title,
for purposes of this title, the following definitions shall apply:</text>
<paragraph id="id23B22E32341645D996C3BF0B5717500A"><enum>(1)</enum><header>Affiliate</header><text>The
term <quote>affiliate</quote> means any person that controls, is controlled by,
or is under common control with another person.</text>
</paragraph><paragraph id="id6EF60D964771452F945C27CBB0F9E84C"><enum>(2)</enum><header>Bureau</header><text>The
term <quote>Bureau</quote> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><paragraph id="ID665106b0c02343d7bca12cb8aad94e8c"><enum>(3)</enum><header>Business of
insurance</header><text>The term <quote>business of insurance</quote> means the
writing of insurance or the reinsuring of risks by an insurer, including all
acts necessary to such writing or reinsuring and the activities relating to the
writing of insurance or the reinsuring of risks conducted by persons who act
as, or are, officers, directors, agents, or employees of insurers or who are
other persons authorized to act on behalf of such persons.</text>
</paragraph><paragraph id="IDd89818f90c664699925c8b8183ccce80"><enum>(4)</enum><header>Consumer</header><text>The
term <term>consumer</term> means an individual or an agent, trustee, or
representative acting on behalf of an individual.</text>
</paragraph><paragraph id="ID494a3bfca17c43cea1ab7b769f983560"><enum>(5)</enum><header>Consumer
financial product or service</header><text>The term <term>consumer financial
product or service</term> means any financial product or service that is
described in one or more categories under—</text>
<subparagraph id="IDc8fbd4ca01824a51934afef0e6918e18"><enum>(A)</enum><text>paragraph (13)
and is offered or provided for use by consumers primarily for personal, family,
or household purposes; or</text>
</subparagraph><subparagraph id="ID11020b89b9174012a47e9b57bc03afe6"><enum>(B)</enum><text>clause (i),
(iii), (ix), or (x) of paragraph (13)(A), and is delivered, offered, or
provided in connection with a consumer financial product or service referred to
in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="IDc316dd64f1714d39843b3253a20b4dff"><enum>(6)</enum><header>Covered
person</header><text>The term <term>covered person</term> means—</text>
<subparagraph id="IDf669af09131a4bfd9726f8eab1952fdf"><enum>(A)</enum><text>any person that
engages in offering or providing a consumer financial product or service;
and</text>
</subparagraph><subparagraph id="ID7f6803cac67c43b287818c5fbd2f58b4"><enum>(B)</enum><text>any affiliate of
a person described in subparagraph (A) if such affiliate acts as a service
provider to such person.</text>
</subparagraph></paragraph><paragraph id="IDeafb455cdc3d4e86ba6ee6b08d51f5c9"><enum>(7)</enum><header>Credit</header><text>The
term <term>credit</term> means the right granted by a person to a consumer to
defer payment of a debt, incur debt and defer its payment, or purchase property
or services and defer payment for such purchase.</text>
</paragraph><paragraph commented="no" id="IDfc2964ed60964f818fcdf7ea0fb55ea8"><enum>(8)</enum><header>Deposit-taking
activity</header><text>The term <term>deposit-taking activity</term>
means—</text>
<subparagraph commented="no" id="ID3394b5531a7f47e0ac476d39f42626e0"><enum>(A)</enum><text>the acceptance of
deposits, maintenance of deposit accounts, or the provision of services related
to the acceptance of deposits or the maintenance of deposit accounts;</text>
</subparagraph><subparagraph commented="no" id="ID2b5accded024489a881cf32cbff8f83c"><enum>(B)</enum><text>the acceptance of
funds, the provision of other services related to the acceptance of funds, or
the maintenance of member share accounts by a credit union; or</text>
</subparagraph><subparagraph commented="no" id="ID7050dd35a47c4aa39680b847bd2d17ad"><enum>(C)</enum><text>the receipt of
funds or the equivalent thereof, as the Bureau may determine by rule or order,
received or held by a covered person (or an agent for a covered person) for the
purpose of facilitating a payment or transferring funds or value of funds
between a consumer and a third party.</text>
</subparagraph></paragraph><paragraph id="ID502b221e7dea41df9c461c2c1622f9d8"><enum>(9)</enum><header>Designated
transfer date</header><text>The term <term>designated transfer date</term>
means the date established under section 1062.</text>
</paragraph><paragraph id="ID21fbc467b8a54a96b57eed606c25d294"><enum>(10)</enum><header>Director</header><text>The
term <quote>Director</quote> means the Director of the Bureau.</text>
</paragraph><paragraph id="idC43B2050FFCA4E17AA97FC1D42B57765"><enum>(11)</enum><header>Enumerated
consumer laws</header><text>The term <term>enumerated consumer laws</term>
means—</text>
<subparagraph id="ID570cac5318544f9ab2ebf78fa054c3de"><enum>(A)</enum><text>the Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.);</text>
</subparagraph><subparagraph id="IDd6ce6c6fb4a6416b86aefa4523c35edd"><enum>(B)</enum><text>the Consumer
Leasing Act of 1976 (15 U.S.C. 1667 et seq.);</text>
</subparagraph><subparagraph id="IDb3237936a74348bbba88da065fd493ad"><enum>(C)</enum><text>the Electronic
Fund Transfer Act (15 U.S.C. 1693 et seq.);</text>
</subparagraph><subparagraph id="ID56abdaaa93d447689cd65107c11a04d7"><enum>(D)</enum><text>the Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.);</text>
</subparagraph><subparagraph id="ID67bd9efc6a2f40259e71c595515fe67c"><enum>(E)</enum><text>the Fair Credit
Billing Act (15 U.S.C. 1666 et seq.);</text>
</subparagraph><subparagraph id="ID8ff7ef09003d4ff2a172d7e8a82c0b47"><enum>(F)</enum><text>the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.), except with respect to sections 615(e)
and 628 of that Act (15 U.S.C. 1681m(e), 1681w);</text>
</subparagraph><subparagraph id="IDb9d3f8f19f54449da00339ee0bbe0e7a"><enum>(G)</enum><text>the Home Owners
Protection Act of 1998 (12 U.S.C. 4901 et seq.);</text>
</subparagraph><subparagraph id="ID71f43e6c0dce4afb8a7e45a0b5035d6f"><enum>(H)</enum><text>the Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.);</text>
</subparagraph><subparagraph id="ID76883ddf745a4b2c9439544ac43a29fa"><enum>(I)</enum><text>subsections (c)
through (f) of section 43 of the Federal Deposit Insurance Act (12 U.S.C.
1831t(c)–(f));</text>
</subparagraph><subparagraph id="ID74485f5095484600bab22018fb010d33"><enum>(J)</enum><text>sections 502
through 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802–6809);</text>
</subparagraph><subparagraph id="ID6c4d155c65ce4bf190b5e3e7b0b10e5e"><enum>(K)</enum><text>the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);</text>
</subparagraph><subparagraph id="IDc8110f0ed39b44e8b3ca86982baf37b0"><enum>(L)</enum><text>the Home
Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601 note);</text>
</subparagraph><subparagraph id="ID839880daf29044a9a568adc5cca17fd8"><enum>(M)</enum><text>the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);</text>
</subparagraph><subparagraph id="IDa890bfd98e65430c9cd326ad110ba265"><enum>(N)</enum><text>the S.A.F.E.
Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.);</text>
</subparagraph><subparagraph id="IDa02633bd58904c18957657e70c4b9782"><enum>(O)</enum><text>the Truth in
Lending Act (15 U.S.C. 1601 et seq.); and</text>
</subparagraph><subparagraph id="ID1a0c8867a3e1441c85f911d231edaed9"><enum>(P)</enum><text>the Truth in
Savings Act (12 U.S.C. 4301 et seq.).</text>
</subparagraph></paragraph><paragraph id="ID96e2513a1a54448c92a634ae789760fd"><enum>(12)</enum><header>Federal
consumer financial law</header><text>The term <term>Federal consumer financial
law</term> means the provisions of this title, the enumerated consumer laws,
the laws for which authorities are transferred under subtitles F and H, and any
rule or order prescribed by the Bureau under this title, an enumerated consumer
law, or pursuant to the authorities transferred under subtitles F and H.</text>
</paragraph><paragraph id="IDf109c26b972e4ed599e4cccd8090a5a5"><enum>(13)</enum><header>Financial
product or service</header><text>The term <term>financial product or
service</term>—</text>
<subparagraph id="idC97FD86220064BDC8D153AAEC513B473"><enum>(A)</enum><text>means—</text>
<clause id="ID9f5868874ba9470ebcea19b809e3e85d"><enum>(i)</enum><text>extending credit
and servicing loans, including acquiring, purchasing, selling, brokering, or
other extensions of credit (other than solely extending commercial credit to a
person who originates consumer credit transactions);</text>
</clause><clause id="ID5e03e0f0e7eb4d1a96cd34fa7c3e0156"><enum>(ii)</enum><text>extending or
brokering leases of personal or real property that are the functional
equivalent of purchase finance arrangements, if—</text>
<subclause id="IDb7a63a52945b4d7bafcf14a49d65b8a8"><enum>(I)</enum><text>the
lease is on a non-operating basis;</text>
</subclause><subclause id="ID73322504028345c4af5996a958c656d1"><enum>(II)</enum><text>the
initial term of the lease is at least 90 days; and</text>
</subclause><subclause id="ID7dc25ac430954f86a765fab1166bb1e7"><enum>(III)</enum><text>in
the case of a lease involving real property, at the inception of the initial
lease, the transaction is intended to result in ownership of the leased
property to be transferred to the lessee, subject to standards prescribed by
the Bureau;</text>
</subclause></clause><clause id="ID7d9ff90d25d64138ac22fcfdebd1fd27"><enum>(iii)</enum><text>providing real
estate settlement services or performing appraisals of real estate or personal
property;</text>
</clause><clause id="IDc45283523d9b4b809ce0beccb6effd74"><enum>(iv)</enum><text>engaging in
deposit-taking activities, transmitting or exchanging funds, or otherwise
acting as a custodian of funds or any financial instrument for use by or on
behalf of a consumer;</text>
</clause><clause id="IDa2f9364d76a44175b42f1dd236839dd7"><enum>(v)</enum><text>selling,
providing, or issuing stored value or payment instruments, except that, in the
case of a sale of, or transaction to reload, stored value, only if the seller
exercises substantial control over the terms or conditions of the stored value
provided to the consumer where, for purposes of this clause—</text>
<subclause id="IDbf46951907c84867988ab9be4b395eaa"><enum>(I)</enum><text>a
seller shall not be found to exercise substantial control over the terms or
conditions of the stored value if the seller is not a party to the contract
with the consumer for the stored value product, and another person is
principally responsible for establishing the terms or conditions of the stored
value; and</text>
</subclause><subclause id="ID5b0e8068d81742febd219cf4b7683a01"><enum>(II)</enum><text>advertising the
nonfinancial goods or services of the seller on the stored value card or device
is not in itself an exercise of substantial control over the terms or
conditions;</text>
</subclause></clause><clause id="ID70a0b052065340168e80d64ddb2514f0"><enum>(vi)</enum><text>providing check
cashing, check collection, or check guaranty services;</text>
</clause><clause id="ID97e808af8e2b4c4eb2a189bbc5b52778"><enum>(vii)</enum><text>providing
payments or other financial data processing products or services to a consumer
by any technological means, including processing or storing financial or
banking data for any payment instrument, or through any payments systems or
network used for processing payments data, including payments made through an
online banking system or mobile telecommunications network, except that a
person shall not be deemed to be a covered person with respect to financial
data processing solely because the person—</text>
<subclause id="ID33257ed140b5413281e62f582e4f5045"><enum>(I)</enum><text>unknowingly or
incidentally processes, stores, or transmits over the Internet, telephone line,
mobile network, or any other mode of transmission, as part of a stream of other
types of data, financial data in a manner that such data is undifferentiated
from other types of data of the same form that the person processes, stores, or
transmits;</text>
</subclause><subclause id="ID0d79448b33d44b2095508f0ebf308e56"><enum>(II)</enum><text>is
a merchant, retailer, or seller of any nonfinancial good or service who engages
in financial data processing by transmitting or storing payments data about a
consumer exclusively for purpose of initiating payments instructions by the
consumer to pay such person for the purchase of, or to complete a commercial
transaction for, such nonfinancial good or service sold directly by such person
to the consumer; or</text>
</subclause><subclause id="ID667452bbd7694f34a5a699ddd323eb9d"><enum>(III)</enum><text>provides access
to a host server to a person for purposes of enabling that person to establish
and maintain a website;</text>
</subclause></clause><clause id="IDdad37e96131048299a092cef53e48be1"><enum>(viii)</enum><text>providing
financial advisory services to consumers on individual financial matters or
relating to proprietary financial products or services (other than by
publishing any bona fide newspaper, news magazine, or business or financial
publication of general and regular circulation, including publishing market
data, news, or data analytics or investment information or recommendations that
are not tailored to the individual needs of a particular consumer),
including—</text>
<subclause id="IDcade650072884f3093ebb1a9521ed96a"><enum>(I)</enum><text>providing credit
counseling to any consumer; and</text>
</subclause><subclause id="IDfe10b650af674d4aa974aff71dce662c"><enum>(II)</enum><text>providing
services to assist a consumer with debt management or debt settlement,
modifying the terms of any extension of credit, or avoiding foreclosure;</text>
</subclause></clause><clause id="IDa2db47bb63114c179aac07fa7425c075"><enum>(ix)</enum><text>collecting,
analyzing, maintaining, or providing consumer report information or other
account information, including information relating to the credit history of
consumers, used or expected to be used in connection with any decision
regarding the offering or provision of a consumer financial product or service,
except to the extent that—</text>
<subclause id="ID049aee256ee348aca37da0baf256ce55"><enum>(I)</enum><text>a
person—</text>
<item id="ID82b08cb2013a4dd1ba7f1f9cc5e4f2ee"><enum>(aa)</enum><text>collects,
analyzes, or maintains information that relates solely to the transactions
between a consumer and such person; or</text>
</item><item id="ID9d9459ad129f4f9793daa48f371c290e"><enum>(bb)</enum><text>provides
the information described in item (aa) to an affiliate of such person;
and</text>
</item></subclause><subclause id="ID9b2b004e33d2445ab288b4ac0edc8aed"><enum>(II)</enum><text>the
information described in subclause (I)(aa) is not used by such person or
affiliate in connection with any decision regarding the offering or provision
of a consumer financial product or service to the consumer, other than credit
described in section 1027(a)(2)(A);</text>
</subclause></clause><clause id="IDed401f00d17b4ddf8ac34ef29770aa34"><enum>(x)</enum><text>collecting debt
related to any consumer financial product or service; and</text>
</clause><clause id="ID7c62bc2d6c3a4905b8f9c412eceaef97"><enum>(xi)</enum><text>such
other financial product or service as may be defined by the Bureau, by
regulation, for purposes of this title, if the Bureau finds that such financial
product or service is—</text>
<subclause id="IDdd476370a0c648c3847ec21ba4edeee7"><enum>(I)</enum><text>entered into or
conducted as a subterfuge or with a purpose to evade any Federal consumer
financial law; or</text>
</subclause><subclause id="IDdd58f46515b04485a1c2463e8b2f2f8e"><enum>(II)</enum><text>permissible for
a bank or for a financial holding company to offer or to provide under any
provision of a Federal law or regulation applicable to a bank or a financial
holding company, and has, or likely will have, a material impact on consumers;
and</text>
</subclause></clause></subparagraph><subparagraph id="ID977961a14e984bd49187947b6c9ffa9a"><enum>(B)</enum><text>does not include
the business of insurance.</text>
</subparagraph></paragraph><paragraph id="ID9424d357759e4e43af97678941ef417f"><enum>(14)</enum><header>Foreign
exchange</header><text>The term <term>foreign exchange</term> means the
exchange, for compensation, of currency of the United States or of a foreign
government for currency of another government.</text>
</paragraph><paragraph id="id40C813F3B5F044A4AB84A8C9B9B59618"><enum>(15)</enum><header>Insured credit
union</header><text>The term <term>insured credit union</term> has the same
meaning as in section 101 of the Federal Credit Union Act (12 U.S.C.
1752).</text>
</paragraph><paragraph id="ID3494416a559e412ab6769af8d609e2ca"><enum>(16)</enum><header>Payment
instrument</header><text>The term <term>payment instrument</term> means a
check, draft, warrant, money order, traveler’s check, electronic instrument, or
other instrument, payment of funds, or monetary value (other than
currency).</text>
</paragraph><paragraph id="ID7e0bfe73cf3444c082ddf229362e4f0d"><enum>(17)</enum><header>Person</header><text>The
term <term>person</term> means an individual, partnership, company,
corporation, association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity.</text>
</paragraph><paragraph id="IDb62c0f2da7bc42d5ad1f987553d3befb"><enum>(18)</enum><header>Person
regulated by the commodity futures trading commission</header><text>The term
<term>person regulated by the Commodity Futures Trading Commission</term> means
any person that is registered, or required by statute or regulation to be
registered, with the Commodity Futures Trading Commission, but only to the
extent that the activities of such person are subject to the jurisdiction of
the Commodity Futures Trading Commission under the Commodity Exchange
Act.</text>
</paragraph><paragraph id="ID52d2de3eb714494eb9fd80abc8df71ab"><enum>(19)</enum><header>Person
regulated by the commission</header><text>The term <term>person regulated by
the Commission</term> means a person who is—</text>
<subparagraph id="IDa9149d4965e2464e94868c10ec7a4bf8"><enum>(A)</enum><text>a
broker or dealer that is required to be registered under the Securities
Exchange Act of 1934;</text>
</subparagraph><subparagraph id="ID0f1ecd82bc9c4a21b94e4d9555e74422"><enum>(B)</enum><text>an investment
adviser that is registered under the Investment Advisers Act of 1940;</text>
</subparagraph><subparagraph id="ID2bd27b3261fc4396bebc1775d7df0cca"><enum>(C)</enum><text>an investment
company that is required to be registered under the Investment Company Act of
1940, and any company that has elected to be regulated as a business
development company under that Act;</text>
</subparagraph><subparagraph id="idF0F4B400AA6747BBADBF5777C1FD8E0F"><enum>(D)</enum><text>a
national securities exchange that is required to be registered under the
Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph id="id5CBC762A3A5245CCB749BCF591F501BA"><enum>(E)</enum><text>a
transfer agent that is required to be registered under the Securities Exchange
Act of 1934;</text>
</subparagraph><subparagraph id="id800CE9FB37BE4D7695C253D8E4609428"><enum>(F)</enum><text>a
clearing corporation that is required to be registered under the Securities
Exchange Act of 1934;</text>
</subparagraph><subparagraph id="ID30260dae76814d15807c0d30aa6c52e3"><enum>(G)</enum><text>any
self-regulatory organization that is required to be registered with the
Commission;</text>
</subparagraph><subparagraph id="IDfa5bdd88b9264d5ba157c98feb930159"><enum>(H)</enum><text>any nationally
recognized statistical rating organization that is required to be registered
with the Commission;</text>
</subparagraph><subparagraph id="ID13cd55476a854f4ba475d1a1305f4cfb"><enum>(I)</enum><text>any securities
information processor that is required to be registered with the
Commission;</text>
</subparagraph><subparagraph id="ID7a0144fe7f6c4fd79324dc76b009322a"><enum>(J)</enum><text>any municipal
securities dealer that is required to be registered with the Commission;</text>
</subparagraph><subparagraph id="ID097f25612abd4a77b5564c8111c1ee0d"><enum>(K)</enum><text>any other person
that is required to be registered with the Commission under the Securities
Exchange Act of 1934; and</text>
</subparagraph><subparagraph id="idDDF55F4C954B46CE809CEF1ABC35524C"><enum>(L)</enum><text>any employee,
agent, or contractor acting on behalf of, registered with, or providing
services to, any person described in any of subparagraphs (A) through (K), but
only to the extent that any person described in any of subparagraphs (A)
through (K), or the employee, agent, or contractor of such person, acts in a
regulated capacity.</text>
</subparagraph></paragraph><paragraph id="ID8a510d88cdde4970879969eb5497c14b"><enum>(20)</enum><header>Person
regulated by a State insurance regulator</header><text>The term <term>person
regulated by a State insurance regulator</term> means any person that is
engaged in the business of insurance and subject to regulation by any State
insurance regulator, but only to the extent that such person acts in such
capacity.</text>
</paragraph><paragraph id="IDa5dc92047db546c5b126f58e6ec2b42f"><enum>(21)</enum><header>Person that
performs income tax preparation activities for consumers</header><text>The term
<term>person that performs income tax preparation activities for
consumers</term> means—</text>
<subparagraph id="ID03c4bbe0d9694f18b7f4a2d10528e012"><enum>(A)</enum><text>any tax return
preparer (as defined in section 7701(a)(36) of the Internal Revenue Code of
1986), regardless of whether compensated, but only to the extent that the
person acts in such capacity;</text>
</subparagraph><subparagraph id="ID6213ce6d738e4057ab6b661dda5ec535"><enum>(B)</enum><text>any person
regulated by the Secretary under section 330 of title 31, United States Code,
but only to the extent that the person acts in such capacity; and</text>
</subparagraph><subparagraph id="ID9e15e0cb175b43aea828d3634d5f38aa"><enum>(C)</enum><text>any authorized
IRS e-file Providers (as defined for purposes of section 7216 of the Internal
Revenue Code of 1986), but only to the extent that the person acts in such
capacity.</text>
</subparagraph></paragraph><paragraph id="IDcb805c650d964053850fe9c48b4adf56"><enum>(22)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term>
means—</text>
<subparagraph id="ID7c2849ddb0b24960820cc4d765c0d187"><enum>(A)</enum><text>in the case of an
insured depository institution, the appropriate Federal banking agency, as that
term is defined in section 3 of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph commented="no" id="ID9b6883453c54442da49f2ce72384b5a1"><enum>(B)</enum><text>in the case of an
insured credit union, the National Credit Union Administration.</text>
</subparagraph></paragraph><paragraph id="ID42b5c464d69a498d9ba731a7c48d37b6"><enum>(23)</enum><header>Related
person</header><text>The term <quote>related person</quote>—</text>
<subparagraph id="id42E6684C288F4974B9345BA6732FCF0B"><enum>(A)</enum><text>shall apply only
with respect to a covered person that is not a bank holding company (as that
term is defined in section 2 of the Bank Holding Company Act of 1956), credit
union, or depository institution;</text>
</subparagraph><subparagraph id="IDe5def503bc6046929851662d2495653d"><enum>(B)</enum><text>shall be deemed
to mean a covered person for all purposes of any provision of Federal consumer
financial law; and</text>
</subparagraph><subparagraph id="id139433C5D2C3400B9D49E24F88262C68"><enum>(C)</enum><text>means—</text>
<clause id="IDf5ec5dc72522487f97b167c3880d66aa"><enum>(i)</enum><text>any
director, officer, or employee charged with managerial responsibility for, or
controlling shareholder of, or agent for, such covered person;</text>
</clause><clause id="ID6747fb383ba04687b24d7b6dded8ba8e"><enum>(ii)</enum><text>any
shareholder, consultant, joint venture partner, or other person, as determined
by the Bureau (by rule or on a case-by-case basis) who materially participates
in the conduct of the affairs of such covered person; and</text>
</clause><clause id="ID66beb15f1f5b4ac2886f92e59e95673f"><enum>(iii)</enum><text>any
independent contractor (including any attorney, appraiser, or accountant) who
knowingly or recklessly participates in any—</text>
<subclause id="ID06c6b5a75e564d76b168ff33334b2f82"><enum>(I)</enum><text>violation of any
provision of law or regulation; or</text>
</subclause><subclause id="IDda38e502661b42dba283a34412c81ca8"><enum>(II)</enum><text>breach of a
fiduciary duty.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID22a3a881c59042b5bf8490c6ffa59e14"><enum>(24)</enum><header>Service
provider</header>
<subparagraph id="ID9fbd3fa00def462ea4625c4de08ed289"><enum>(A)</enum><header>In
general</header><text>The term <term>service provider</term> means any person
that provides a material service to a covered person in connection with the
offering or provision by such covered person of a consumer financial product or
service, including a person that—</text>
<clause id="IDb403bba321894cb1925e155a4f70632d"><enum>(i)</enum><text>participates in
designing, operating, or maintaining the consumer financial product or service;
or</text>
</clause><clause id="ID0bc7f161028d42d4aa1e82f2f19d4716"><enum>(ii)</enum><text>processes
transactions relating to the consumer financial product or service (other than
unknowingly or incidentally transmitting or processing financial data in a
manner that such data is undifferentiated from other types of data of the same
form as the person transmits or processes).</text>
</clause></subparagraph><subparagraph id="IDdbb758d7801247ffbd719668228ad31c"><enum>(B)</enum><header>Exceptions</header><text>The
term <term>service provider</term> does not include a person solely by virtue
of such person offering or providing to a covered person—</text>
<clause id="IDcd7ce29d6ece4b7dbcf11db261f6ba93"><enum>(i)</enum><text>a
support service of a type provided to businesses generally or a similar
ministerial service; or</text>
</clause><clause id="ID9a1633ab75b14ef3955475b54e0c6274"><enum>(ii)</enum><text>time
or space for an advertisement for a consumer financial product or service
through print, newspaper, or electronic media.</text>
</clause></subparagraph><subparagraph id="ID46f04b585dc04669bdb6e9b51dd3be5a"><enum>(C)</enum><header>Rule of
construction</header><text>A person that is a service provider shall be deemed
to be a covered person to the extent that such person engages in the offering
or provision of its own consumer financial product or service.</text>
</subparagraph></paragraph><paragraph commented="no" id="id4DA17E110991429B8E5D046EA8AAD6DB"><enum>(25)</enum><header>State</header><text>The
term <term>State</term> means any State, territory, or possession of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the
United States Virgin Islands or any federally recognized Indian tribe, as
defined by the Secretary of the Interior under section 104(a) of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a–1(a)).</text>
</paragraph><paragraph id="IDafccf75118d64e9da5e355472aecd35a"><enum>(26)</enum><header>Stored
value</header><text>The term <term>stored value</term> means funds or monetary
value represented in any electronic format, whether or not specially encrypted,
and stored or capable of storage on electronic media in such a way as to be
retrievable and transferred electronically, and includes a prepaid debit card
or product, or any other similar product, regardless of whether the amount of
the funds or monetary value may be increased or reloaded.</text>
</paragraph><paragraph id="IDbcb3142afcd84c1db537c71655bf165c"><enum>(27)</enum><header>Transmitting
or exchanging funds</header><text>The term <term>transmitting or exchanging
funds</term> means receiving currency, monetary value, or payment instruments
from a consumer for the purpose of exchanging or transmitting the same by any
means, including transmission by wire, facsimile, electronic transfer, courier,
the Internet, or through bill payment services or through other businesses that
facilitate third-party transfers within the United States or to or from the
United States.</text>
</paragraph></section><subtitle id="idB3E8D8653CA24FB2A4C9B56C53850E1A"><enum>A</enum><header>Bureau of
Consumer Financial Protection</header>
<section id="idC94FC6B231224DA7B0F340DA432343B1"><enum>1011.</enum><header>Establishment
of the Bureau</header>
<subsection id="ID4b82e901768f46a895ab74cc3eac9f4a"><enum>(a)</enum><header>Bureau
established</header><text>There is established in the Federal Reserve System
the Bureau of Consumer Financial Protection, which shall regulate the offering
and provision of consumer financial products or services under the Federal
consumer financial laws.</text>
</subsection><subsection id="ID4b50f93708184c8083dd9a129a63409a"><enum>(b)</enum><header>Director and
deputy director</header>
<paragraph id="ID2af81cc46b3c4d14bb19bb94190e7e0c"><enum>(1)</enum><header>In
general</header><text>There is established the position of the Director, who
shall serve as the head of the Bureau.</text>
</paragraph><paragraph id="ID64c2ff9d1a6c41268b3f4924c11d518b"><enum>(2)</enum><header>Appointment</header><text>Subject
to paragraph (3), the Director shall be appointed by the President, by and with
the advice and consent of the Senate.</text>
</paragraph><paragraph id="ID3dbdb9bbcbd346f2b7b82bd225da80c4"><enum>(3)</enum><header>Qualification</header><text>The
President shall nominate the Director from among individuals who are citizens
of the United States.</text>
</paragraph><paragraph id="ID9019aaa3837043519112a82ee48ae56a"><enum>(4)</enum><header>Compensation</header><text>The
Director shall be compensated at the rate prescribed for level II of the
Executive Schedule under section 5313 of title 5, United States Code.</text>
</paragraph><paragraph id="id69EAFA330BDB4477A32E2BDCF16AB7A4"><enum>(5)</enum><header>Deputy
director</header><text>There is established the position of Deputy Director,
who shall—</text>
<subparagraph id="id9BA62FB135254BE8BCE21F58B7708E44"><enum>(A)</enum><text>be appointed by
the Director; and</text>
</subparagraph><subparagraph id="id0A15E3E7495D4BE7952F00B6C7ECA0E1"><enum>(B)</enum><text>serve as acting
Director in the absence or unavailability of the Director.</text>
</subparagraph></paragraph></subsection><subsection id="ID97c26754636d4fde982c133456aa25f5"><enum>(c)</enum><header>Term</header>
<paragraph id="ID3c05ec0e684242e7b0143355f07b2034"><enum>(1)</enum><header>In
general</header><text>The Director shall serve for a term of 5 years.</text>
</paragraph><paragraph id="ID3bc5a89f40ab4832b0d83e866fc35ac5"><enum>(2)</enum><header>Expiration of
term</header><text>An individual may serve as Director after the expiration of
the term for which appointed, until a successor has been appointed and
qualified.</text>
</paragraph><paragraph id="IDac51c9d01cc144888b01ff71ba748d85"><enum>(3)</enum><header>Removal for
cause</header><text>The President may remove the Director for inefficiency,
neglect of duty, or malfeasance in office.</text>
</paragraph></subsection><subsection id="IDbf1bfd0d92d443ab829b5fb234ee40d6"><enum>(d)</enum><header>Service
restriction</header><text>No Director or Deputy Director may hold any office,
position, or employment in any Federal reserve bank, Federal home loan bank,
covered person, or service provider during the period of service of such person
as Director or Deputy Director.</text>
</subsection><subsection id="ID3d0545193a404b65a8a38aaf053f9db3"><enum>(e)</enum><header>Offices</header><text>The
principal office of the Bureau shall be in the District of Columbia. The
Director may establish regional offices of the Bureau, including in cities in
which the Federal reserve banks, or branches of such banks, are located, in
order to carry out the responsibilities assigned to the Bureau under the
Federal consumer financial laws.</text>
</subsection></section><section id="IDc5eea95a6d364624974448ce3d0848ec"><enum>1012.</enum><header>Executive and
administrative powers</header>
<subsection id="ID30227b4d1edf4f86afd67aa7f075539a"><enum>(a)</enum><header>Powers of the
bureau</header><text>The Bureau is authorized to establish the general policies
of the Bureau with respect to all executive and administrative functions,
including—</text>
<paragraph id="IDd1f81bc4c2cb4b10aae521a5de24a97a"><enum>(1)</enum><text>the
establishment of rules for conducting the general business of the Bureau, in a
manner not inconsistent with this title;</text>
</paragraph><paragraph id="ID5af7d69fbfaf42f5a319d756b8faffec"><enum>(2)</enum><text>to
bind the Bureau and enter into contracts;</text>
</paragraph><paragraph id="IDc2db786210eb416da5c62b6d1dffcdfb"><enum>(3)</enum><text>directing the
establishment and maintenance of divisions or other offices within the Bureau,
in order to carry out the responsibilities under the Federal consumer financial
laws, and to satisfy the requirements of other applicable law;</text>
</paragraph><paragraph id="IDa5d22d64c9b7447ba6a4e95270ead1b7"><enum>(4)</enum><text>to
coordinate and oversee the operation of all administrative, enforcement, and
research activities of the Bureau;</text>
</paragraph><paragraph id="ID3ab0e0f410b24b93982f5ec507adfe88"><enum>(5)</enum><text>to
adopt and use a seal;</text>
</paragraph><paragraph id="ID3a23ba7a8dae4886acce1175e88fc152"><enum>(6)</enum><text>to
determine the character of and the necessity for the obligations and
expenditures of the Bureau;</text>
</paragraph><paragraph id="IDe2272a30091f4bf5974e8e0b7d1b3407"><enum>(7)</enum><text>the
appointment and supervision of personnel employed by the Bureau;</text>
</paragraph><paragraph id="IDf5107cd8736640a5a0e777287d726c14"><enum>(8)</enum><text>the
distribution of business among personnel appointed and supervised by the
Director and among administrative units of the Bureau;</text>
</paragraph><paragraph id="ID3f7b1d560f3745fdb33a46cbe43443d1"><enum>(9)</enum><text>the
use and expenditure of funds;</text>
</paragraph><paragraph id="ID355b7079d95c4957887241f766c1a2dd"><enum>(10)</enum><text>implementing the
Federal consumer financial laws through rules, orders, guidance,
interpretations, statements of policy, examinations, and enforcement actions;
and</text>
</paragraph><paragraph id="IDdd9f03e44e3342f9a3c464ad84ba0ec1"><enum>(11)</enum><text>performing such
other functions as may be authorized or required by law.</text>
</paragraph></subsection><subsection id="id407447668C25497EB70A778CBEB431A7"><enum>(b)</enum><header>Delegation of
authority</header><text>The Director of the Bureau may delegate to any duly
authorized employee, representative, or agent any power vested in the Bureau by
law.</text>
</subsection><subsection id="IDfe2ee6d7df024a2395795c97a47c6c9e"><enum>(c)</enum><header>Autonomy of the
bureau</header>
<paragraph id="ID680d0c6df65043ddb34716b2fa650dfa"><enum>(1)</enum><header>Coordination
with the board of governors</header><text>Notwithstanding section 18 of the
Federal Trade Commission Act (15 U.S.C. 57a) and any other provision of law
applicable to the supervision or examination of persons with respect to Federal
consumer financial laws, the Board of Governors may delegate to the Bureau the
authorities to examine persons subject to the jurisdiction of the Board of
Governors for compliance with the Federal consumer financial laws.</text>
</paragraph><paragraph id="ID67575bc250ba4a0184a0f6e8ed84aa37"><enum>(2)</enum><header>Autonomy</header><text>Notwithstanding
the authorities granted to the Board of Governors under the Federal Reserve
Act, the Board of Governors may not—</text>
<subparagraph id="IDdfe48d1714864e75ae99d933f731dabe"><enum>(A)</enum><text>intervene in any
matter or proceeding before the Director, including examinations or enforcement
actions, unless otherwise specifically provided by law;</text>
</subparagraph><subparagraph id="IDc9723db061f844f19031aa59ab64cf69"><enum>(B)</enum><text>appoint, direct,
or remove any officer or employee of the Bureau; or</text>
</subparagraph><subparagraph id="ID37b8d6e44e72498e86a02c9538e65502"><enum>(C)</enum><text>merge or
consolidate the Bureau, or any of the functions or responsibilities of the
Bureau, with any division or office of the Board of Governors or the Federal
reserve banks.</text>
</subparagraph></paragraph><paragraph id="IDb25485fae5834a7785c91c4d7fd2f533"><enum>(3)</enum><header>Rules and
orders</header><text>No rule or order of the Bureau shall be subject to
approval or review by the Board of Governors. The Board of Governors may not
delay or prevent the issuance of any rule or order of the Bureau.</text>
</paragraph><paragraph id="IDfd5a630450d3469c896ef21629262d93"><enum>(4)</enum><header>Recommendations
and testimony</header><text>No officer or agency of the United States shall
have any authority to require the Director or any other officer of the Bureau
to submit legislative recommendations, or testimony or comments on legislation,
to any officer or agency of the United States for approval, comments, or review
prior to the submission of such recommendations, testimony, or comments to the
Congress, if such recommendations, testimony, or comments to the Congress
include a statement indicating that the views expressed therein are those of
the Director or such officer, and do not necessarily reflect the views of the
Board of Governors or the President.</text>
</paragraph></subsection></section><section id="ID7ff0badfe8184b3abecf0a8fc9a82b00"><enum>1013.</enum><header>Administration</header>
<subsection id="ID0aee77b4bf4a444fa33343f72781e82e"><enum>(a)</enum><header>Personnel</header>
<paragraph id="IDf15c8db214f94e8fad8c802bae630477"><enum>(1)</enum><header>Appointment</header>
<subparagraph id="IDbc579ff15b0644f493f5654fe85d41f8"><enum>(A)</enum><header>In
general</header><text>The Director may fix the number of, and appoint and
direct, all employees of the Bureau.</text>
</subparagraph><subparagraph id="IDfee4e96f69354db4bd52032d9e87bb35"><enum>(B)</enum><header>Employees of
the bureau</header><text>The Director is authorized to employ attorneys,
compliance examiners, compliance supervision analysts, economists,
statisticians, and other employees as may be deemed necessary to conduct the
business of the Bureau. Notwithstanding any other provision of law, all such
employees shall be appointed and compensated on terms and conditions that are
consistent with the terms and conditions set forth in section 11(l) of the
Federal Reserve Act (12 U.S.C. 248(l)).</text>
</subparagraph></paragraph><paragraph id="ID4d2574021b45488095bf81cf65fc4acc"><enum>(2)</enum><header>Compensation</header><text>The
Director shall at all times provide compensation and benefits to each class of
employees that, at a minimum, are equivalent to the compensation and benefits
then being provided by the Board of Governors for the corresponding class of
employees.</text>
</paragraph></subsection><subsection id="IDcd7cca5a4dda43c4a57b916c5ebfc06e"><enum>(b)</enum><header>Specific
functional units</header>
<paragraph id="ID55bfde660f3547188549b4fbb27a21be"><enum>(1)</enum><header>Research</header><text>The
Director shall establish a unit whose functions shall include researching,
analyzing, and reporting on—</text>
<subparagraph id="IDc90f218c47f047b38d5725d8e9fb57a1"><enum>(A)</enum><text>developments in
markets for consumer financial products or services, including market areas of
alternative consumer financial products or services with high growth rates and
areas of risk to consumers;</text>
</subparagraph><subparagraph id="ID28b0aa60abc9471d82f4933b6ad91aa1"><enum>(B)</enum><text>access to fair
and affordable credit for traditionally underserved communities;</text>
</subparagraph><subparagraph id="ID425e708a0a3e432d9c5f6fe97206de9d"><enum>(C)</enum><text>consumer
awareness, understanding, and use of disclosures and communications regarding
consumer financial products or services;</text>
</subparagraph><subparagraph id="ID7e2986d7f63b45798a0a88982adfc610"><enum>(D)</enum><text>consumer
awareness and understanding of costs, risks, and benefits of consumer financial
products or services; and</text>
</subparagraph><subparagraph id="ID65e9f17e1e9944ee921a55d093fd9ed1"><enum>(E)</enum><text>consumer behavior
with respect to consumer financial products or services.</text>
</subparagraph></paragraph><paragraph id="ID5c508f72495b4b15ba26ca3161d6184a"><enum>(2)</enum><header>Community
affairs</header><text>The Director shall establish a unit whose functions shall
include providing information, guidance, and technical assistance regarding the
offering and provision of consumer financial products or services to
traditionally underserved consumers and communities.</text>
</paragraph><paragraph id="ID75e994ccd76f43e58c8d18626fc22fae"><enum>(3)</enum><header>Collecting and
tracking complaints</header>
<subparagraph id="IDb8bd4ec142be49d4b1bd10269e37114c"><enum>(A)</enum><header>In
general</header><text>The Director shall establish a unit whose functions shall
include establishing a single, toll-free telephone number, a website, and a
database to facilitate the centralized collection of, monitoring of, and
response to consumer complaints regarding consumer financial products or
services. The Director shall coordinate with other Federal agencies to route
complaints to other Federal regulators, where appropriate.</text>
</subparagraph><subparagraph id="ID8226831626e3491da844506d8aee97a4"><enum>(B)</enum><header>Routing calls
to States</header><text>To the extent practicable, State agencies may receive
appropriate complaints from the systems established under subparagraph (A),
if—</text>
<clause id="ID809d195322204639ae98eecf59465fff"><enum>(i)</enum><text>the
State agency system has the functional capacity to receive calls or electronic
reports routed by the Bureau systems; and</text>
</clause><clause id="ID4a39ab0884c64b3d84f55d8377c0929c"><enum>(ii)</enum><text>the
State agency has satisfied any conditions of participation in the system that
the Bureau may establish, including treatment of personally identifiable
information and sharing of information on complaint resolution or related
compliance procedures and resources.</text>
</clause></subparagraph><subparagraph id="IDe9bab39f8a8c431592a498975211af29"><enum>(C)</enum><header>Reports to the
congress</header><text>The Director shall present an annual report to Congress
not later than March 31 of each year on the complaints received by the Bureau
in the prior year regarding consumer financial products and services. Such
report shall include information and analysis about complaint numbers,
complaint types, and, where applicable, information about resolution of
complaints.</text>
</subparagraph><subparagraph id="ID2cab4ca4210945f3a09938d62bc8509b"><enum>(D)</enum><header>Data sharing
required</header><text>To facilitate preparation of the reports required under
subparagraph (C), supervision and enforcement activities, and monitoring of the
market for consumer financial products and services, the Bureau shall share
consumer complaint information with prudential regulators, other Federal
agencies, and State agencies, consistent with Federal law applicable to
personally identifiable information. The prudential regulators and other
Federal agencies shall share data relating to consumer complaints regarding
consumer financial products and services with the Bureau, consistent with
Federal law applicable to personally identifiable information.</text>
</subparagraph></paragraph></subsection><subsection id="H9D27D66A50A24C809E6F3F04FC6AA26A"><enum>(c)</enum><header>Office of Fair
Lending and Equal Opportunity</header>
<paragraph id="H36BD81E4FB7B4DCBA1C6FEE987B7250D"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Director shall establish within the
Bureau the Office of Fair Lending and Equal Opportunity.</text>
</paragraph><paragraph id="HF070AF02B7FD48C29714E74202EF2509"><enum>(2)</enum><header>Functions</header><text display-inline="yes-display-inline">The Office of Fair Lending and Equal
Opportunity shall have such powers and duties as the Director may delegate to
the Office, including—</text>
<subparagraph id="H8A2C287511AF4E058DB9E81AC0CFC3BF"><enum>(A)</enum><text>providing
oversight and enforcement of Federal laws intended to ensure the fair,
equitable, and nondiscriminatory access to credit for both individuals and
communities that are enforced by the Bureau, including the Equal Credit
Opportunity Act and the Home Mortgage Disclosure Act;</text>
</subparagraph><subparagraph id="HF4664D917AE143ACA513FA753C36FE35"><enum>(B)</enum><text>coordinating fair
lending and fair housing efforts of the Bureau with other Federal agencies and
State regulators, as appropriate, to promote consistent, efficient, and
effective enforcement of Federal fair lending laws;</text>
</subparagraph><subparagraph id="H5E58EBD4CF1A45D9942A67724EE035FB"><enum>(C)</enum><text>working with
private industry, fair lending, civil rights, consumer and community advocates
on the promotion of fair lending compliance and education; and</text>
</subparagraph><subparagraph id="H97B6D46C36954AADB9E67C565A4FF8D9"><enum>(D)</enum><text>providing annual
reports to Congress on the efforts of the Bureau to fulfill its fair lending
mandate.</text>
</subparagraph></paragraph><paragraph id="HF1227C41F3874B53A99BA9EB6DFA26B3"><enum>(3)</enum><header>Administration
of office</header><text>There is established the position of Assistant Director
of the Bureau for Fair Lending and Equal Opportunity, who—</text>
<subparagraph id="HFBE388E7DD724E4192E6D6F59DF81264"><enum>(A)</enum><text>shall be appointed
by the Director; and</text>
</subparagraph><subparagraph id="HBBB137A5AFBE48C4BA689A7240ACE2C8"><enum>(B)</enum><text display-inline="yes-display-inline">shall carry out such duties as the Director
may delegate to such Assistant Director.</text>
</subparagraph></paragraph></subsection><subsection id="id1B7DC9F4D76E4E6AB94A035EEAFE70E3"><enum>(d)</enum><header>Office of
Financial Literacy</header>
<paragraph id="idA1A8728320C6426DB842487C90A2803F"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Director shall establish an Office of
Financial Literacy, which shall be responsible for developing and implementing
initiatives intended to educate and empower consumers to make better informed
financial decisions.</text>
</paragraph><paragraph id="idE2FE627221EE490C9649C77A9C8EC9E4"><enum>(2)</enum><header>Other
Duties</header><text>The Office of Financial Literacy shall develop and
implement a strategy to improve the financial literacy of consumers that
includes measurable goals and objectives, in consultation with the Financial
Literacy and Education Commission, consistent with the National Strategy for
Financial Education, through activities including providing opportunities for
consumers to access—</text>
<subparagraph id="IDcbc40a3dfbbe40a8b7d086ccd2447ad3"><enum>(A)</enum><text>financial
counseling;</text>
</subparagraph><subparagraph id="IDc6c6d9d18588493b91323196f296f448"><enum>(B)</enum><text>information to
assist with the evaluation of credit products and the understanding of credit
histories and scores;</text>
</subparagraph><subparagraph id="IDda6ed27455a24e0789180ccae1b34125"><enum>(C)</enum><text>savings,
borrowing, and other services found at mainstream financial
institutions;</text>
</subparagraph><subparagraph id="ID09bdf84049ce4968a532ea68db8abbb6"><enum>(D)</enum><text>activities
intended to—</text>
<clause id="idB65C3E8304ED4CAE95B8FE5B473DF03F"><enum>(i)</enum><text>prepare
the consumer for educational expenses and the submission of financial aid
applications, and other major purchases;</text>
</clause><clause id="idDC65236AAF63482F9F387F35870FF44B"><enum>(ii)</enum><text>reduce
debt; and</text>
</clause><clause id="idB0E63D551A374DA490C59B24279E9599"><enum>(iii)</enum><text>improve the
financial situation of the consumer;</text>
</clause></subparagraph><subparagraph id="IDdd16c5703b88461a97a16f52e0f0d163"><enum>(E)</enum><text>assistance in
developing long-term savings strategies; and</text>
</subparagraph><subparagraph id="ID6a43b936e45d48dda5dafa9e09f02a99"><enum>(F)</enum><text>wealth building
and financial services during the preparation process to claim earned income
tax credits and Federal benefits.</text>
</subparagraph></paragraph><paragraph id="ID79744dd608f347bebca943eaa8c4a8b7"><enum>(3)</enum><header>Coordination</header><text>The
Office of Financial Literacy shall coordinate with other units within the
Bureau in carrying out its functions, including—</text>
<subparagraph id="IDa74c074dcfd740efac1137d3788130a7"><enum>(A)</enum><text>working with the
Community Affairs Office to implement the strategy to improve financial
literacy of consumers; and</text>
</subparagraph><subparagraph id="ID3c41020963ea4d36b679bfa293c78fb8"><enum>(B)</enum><text>working with the
research unit established by the Director to conduct research related to
consumer financial education and counseling.</text>
</subparagraph></paragraph><paragraph id="ID36a06b20bfa8445998d23655dfe12dab"><enum>(4)</enum><header>Report</header><text>Not
later than 24 months after the designated transfer date, and annually
thereafter, the Director shall submit a report on its financial literacy
activities and strategy to improve financial literacy of consumers to—</text>
<subparagraph id="IDf8ea3a122ff84c7c93746e2754b813b1"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate; and</text>
</subparagraph><subparagraph id="ID91fd762f935544b5940c276332865294"><enum>(B)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID3f567137b94d415682d7fd8ed2126029"><enum>(5)</enum><header>Membership In
Financial Literacy And Education Commission</header><text display-inline="yes-display-inline">Section 513(c)(1) of the Financial Literacy
and Education Improvement Act (20 U.S.C. 9702(c)(1)) is amended—</text>
<subparagraph commented="no" id="IDb38cb1c8aac94ccdb6e62c7aa948fc56"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" id="IDdc3e83674d994eae9b451bf2c576e524"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</subparagraph><subparagraph commented="no" id="IDacfc0c745ae34df892c9e8bb5c90ed87"><enum>(C)</enum><text>by inserting
after subparagraph (B) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idF39F11F8B9B746F6B3C5A21F066B3AD1" style="OLC">
<subparagraph commented="no" id="id90D4B0ED1D9B4E14836D65D333CB621C"><enum>(C)</enum><text>the Director of
the Bureau of Consumer Financial Protection;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDf274793f935e48338f54aa9ce2304972"><enum>(6)</enum><header>Conforming
amendment</header><text>Section 513(d) of the Financial Literacy and Education
Improvement Act (20 U.S.C. 9702(d)) is amended by adding at the end the
following: <quote>The Director of the Bureau of Consumer Financial Protection
shall serve as the Vice Chairman.</quote>.</text>
</paragraph></subsection></section><section id="IDc15a5fa0f12f49f6803370b21077d7d2"><enum>1014.</enum><header>Consumer
Advisory Board</header>
<subsection id="IDd3a708d9e48a4bc784177dd3051bdf3c"><enum>(a)</enum><header>Establishment
required</header><text>The Director shall establish a Consumer Advisory Board
to advise and consult with the Bureau in the exercise of its functions under
the Federal consumer financial laws, and to provide information on emerging
practices in the consumer financial products or services industry, including
regional trends, concerns, and other relevant information.</text>
</subsection><subsection id="IDb9debc6f26074fa09ce62f2d5bed02ee"><enum>(b)</enum><header>Membership</header><text>In
appointing the members of the Consumer Advisory Board, the Director shall seek
to assemble experts in consumer protection, financial services, community
development, fair lending, and consumer financial products or services and seek
representation of the interests of covered persons and consumers, without
regard to party affiliation. Not fewer than 6 members shall be appointed upon
the recommendation of the regional Federal Reserve Bank Presidents, on a
rotating basis.</text>
</subsection><subsection id="ID084bb6c6ff6d47dfa5a1e85b9d30eacf"><enum>(c)</enum><header>Meetings</header><text>The
Consumer Advisory Board shall meet from time to time at the call of the
Director, but, at a minimum, shall meet at least twice in each year.</text>
</subsection><subsection id="ID9de6e0ce77844975adb5e373ef9deaa8"><enum>(d)</enum><header>Compensation
and travel expenses</header><text>Members of the Consumer Advisory Board who
are not full-time employees of the United States shall—</text>
<paragraph id="ID559ece366e564b1baf515bca0e8980fb"><enum>(1)</enum><text>be
entitled to receive compensation at a rate fixed by the Director while
attending meetings of the Consumer Advisory Board, including travel time;
and</text>
</paragraph><paragraph id="IDdb3dcd116ed44282801a4e0c0d802ada"><enum>(2)</enum><text>be
allowed travel expenses, including transportation and subsistence, while away
from their homes or regular places of business.</text>
</paragraph></subsection></section><section id="IDedbfac2002c9428dbdfc99fb38d7825f"><enum>1015.</enum><header>Coordination</header><text display-inline="no-display-inline">The Bureau shall coordinate with the
Commission, the Commodity Futures Trading Commission, and other Federal
agencies and State regulators, as appropriate, to promote consistent regulatory
treatment of consumer financial and investment products and services.</text>
</section><section id="ID1b031083993d4b9190932dc89fe0accd"><enum>1016.</enum><header>Appearances
before and reports to Congress</header>
<subsection id="ID6b85227b331d49d48ea3316dcaa6df95"><enum>(a)</enum><header>Appearances
before congress</header><text>The Director of the Bureau shall appear before
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives at semi-annual
hearings regarding the reports required under subsection (b).</text>
</subsection><subsection id="ID9db5c093852449f0aafb2b9d934d50f0"><enum>(b)</enum><header>Reports
required</header><text>The Bureau shall, concurrent with each semi-annual
hearing referred to in subsection (a), prepare and submit to the President and
to the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, a report,
beginning with the session following the designated transfer date.</text>
</subsection><subsection id="ID0eb24f33d7284a1d903a9b0fdde89c44"><enum>(c)</enum><header>Contents</header><text>The
reports required by subsection (b) shall include—</text>
<paragraph id="IDedb728a9235e4feb8e16b45dcb6e6b3c"><enum>(1)</enum><text>a
discussion of the significant problems faced by consumers in shopping for or
obtaining consumer financial products or services;</text>
</paragraph><paragraph id="id88A1C0986ECC4019B7DD075A9F5B6C2C"><enum>(2)</enum><text>a
justification of the budget request of the previous year;</text>
</paragraph><paragraph id="ID1d1fd08eaefe4dd980378491aa3994b4"><enum>(3)</enum><text>a
list of the significant rules and orders adopted by the Bureau, as well as
other significant initiatives conducted by the Bureau, during the preceding
year and the plan of the Bureau for rules, orders, or other initiatives to be
undertaken during the upcoming period;</text>
</paragraph><paragraph id="ID7ca531f325b44afcbee6596fe66666cc"><enum>(4)</enum><text>an
analysis of complaints about consumer financial products or services that the
Bureau has received and collected in its central database on complaints during
the preceding year;</text>
</paragraph><paragraph id="IDdf2feed6ab854da7b6da38996a955a5b"><enum>(5)</enum><text>a
list, with a brief statement of the issues, of the public supervisory and
enforcement actions to which the Bureau was a party during the preceding
year;</text>
</paragraph><paragraph id="IDa81de0d3a67e4c4ba034018f639e402b"><enum>(6)</enum><text>the
actions taken regarding rules, orders, and supervisory actions with respect to
covered persons which are not credit unions or depository institutions;</text>
</paragraph><paragraph id="IDea1cebf5a48546d9a4b8a321c33bffcb"><enum>(7)</enum><text>an
assessment of significant actions by State attorneys general or State
regulators relating to Federal consumer financial law; and</text>
</paragraph><paragraph id="ID50fd0bb9a203441fae11001d317e258d"><enum>(8)</enum><text>an
analysis of the efforts of the Bureau to fulfill the fair lending mission of
the Bureau.</text>
</paragraph></subsection></section><section id="IDce478e362910433889e92dbbd4f9285e"><enum>1017.</enum><header>Funding;
penalties and fines</header>
<subsection id="IDe2be18a908cd465f818ab1aa8e537778"><enum>(a)</enum><header>Transfer of
funds from Board Of Governors</header>
<paragraph id="ID41acdcfa2726459bb34a3e24dee7688f"><enum>(1)</enum><header>In
general</header><text>Each year (or quarter of such year), beginning on the
designated transfer date, and each quarter thereafter, the Board of Governors
shall transfer to the Bureau from the combined earnings of the Federal Reserve
System, the amount determined by the Director to be reasonably necessary to
carry out the authorities of the Bureau under Federal consumer financial law,
taking into account such other sums made available to the Bureau from the
preceding year (or quarter of such year).</text>
</paragraph><paragraph id="ID144aa7cc36d642b08776747762c12ed6"><enum>(2)</enum><header>Funding
cap</header>
<subparagraph id="id007ADB070DC94521ADA5D1BE685F8C1D"><enum>(A)</enum><header>In
general</header><text>Notwithstanding paragraph (1), and in accordance with
this paragraph, the amount that shall be transferred to the Bureau in each
fiscal year shall not exceed a fixed percentage of the total operating expenses
of the Federal Reserve System, as reported in the Annual Report, 2009, of the
Board of Governors, equal to—</text>
<clause id="ID5516c8dd09e149f0a60872d373ade654"><enum>(i)</enum><text>10
percent of such expenses in fiscal year 2011;</text>
</clause><clause id="ID61da24d3b52645b2a84ecf781d26f9b2"><enum>(ii)</enum><text>11
percent of such expenses in fiscal year 2012; and</text>
</clause><clause id="IDdfe1b123e5d74e299ee31387ddc3082c"><enum>(iii)</enum><text>12
percent of such expenses in fiscal year 2013, and in each year
thereafter.</text>
</clause></subparagraph><subparagraph id="ID4cb56fdf9648442280190d10f99d8ef5"><enum>(B)</enum><header>Amount adjusted
for inflation</header><text>The dollar amount referred to in subparagraph
(A)(iii) shall be adjusted annually, using the percent by which the average
urban consumer price index for the quarter preceding the date of the payment
differs from the average of that index for the same quarter in the prior
year.</text>
</subparagraph></paragraph><paragraph id="ID9c197cdc55fd4c33b162021dec7adad0"><enum>(3)</enum><header>Transition
period</header><text>Beginning on the date of enactment of this Act and until
the designated transfer date, the Board of Governors shall transfer to the
Bureau the amount estimated by the Secretary needed to carry out the
authorities granted to the Bureau under Federal consumer financial law, from
the date of enactment of this Act until the designated transfer date.</text>
</paragraph><paragraph id="ID710c201a831741bda840143f3aed02ec"><enum>(4)</enum><header>Budget and
financial management</header>
<subparagraph id="ID10456e6bfcbb4b1092a2bb6fb74062c6"><enum>(A)</enum><header>Financial
operating plans and forecasts</header><text>The Director shall provide to the
Director of the Office of Management and Budget copies of the financial
operating plans and forecasts of the Director, as prepared by the Director in
the ordinary course of the operations of the Bureau, and copies of the
quarterly reports of the financial condition and results of operations of the
Bureau, as prepared by the Director in the ordinary course of the operations of
the Bureau.</text>
</subparagraph><subparagraph id="ID0c3ad001135d46cfb32ee97af0948f15"><enum>(B)</enum><header>Financial
statements</header><text>The Bureau shall prepare annually a statement
of—</text>
<clause id="IDdaea7d6da9ac418b984234e8d80a0af6"><enum>(i)</enum><text>assets
and liabilities and surplus or deficit;</text>
</clause><clause id="ID8ccd96c87b8146c29095615bcd50e721"><enum>(ii)</enum><text>income
and expenses; and</text>
</clause><clause id="IDd932f350abfb47e5b7569c55f44ea769"><enum>(iii)</enum><text>sources and
application of funds.</text>
</clause></subparagraph><subparagraph id="IDa67abc6876c24996ae3f87db0f19a5e9"><enum>(C)</enum><header>Financial
management systems</header><text>The Bureau shall implement and maintain
financial management systems that comply substantially with Federal financial
management systems requirements and applicable Federal accounting
standards.</text>
</subparagraph><subparagraph id="ID9fbe2f2d36004bd1913a4563f5e21e96"><enum>(D)</enum><header>Assertion of
internal controls</header><text>The Director shall provide to the Comptroller
General of the United States an assertion as to the effectiveness of the
internal controls that apply to financial reporting by the Bureau, using the
standards established in section 3512(c) of title 31, United States
Code.</text>
</subparagraph><subparagraph id="IDbf399e736e04414db1030446fb4d02ad"><enum>(E)</enum><header>Rule of
construction</header><text>This subsection may not be construed as implying any
obligation on the part of the Director to consult with or obtain the consent or
approval of the Director of the Office of Management and Budget with respect to
any report, plan, forecast, or other information referred to in subparagraph
(A) or any jurisdiction or oversight over the affairs or operations of the
Bureau.</text>
</subparagraph></paragraph><paragraph id="IDb90546cb0353492295cc88d4f95e1e8e"><enum>(5)</enum><header>Audit of the
bureau</header>
<subparagraph id="ID7f6d52aea885497f86dfbb52a722a3bc"><enum>(A)</enum><header>In
general</header><text>The Comptroller General shall annually audit the
financial transactions of the Bureau in accordance with the United States
generally accepted government auditing standards, as may be prescribed by the
Comptroller General of the United States. The audit shall be conducted at the
place or places where accounts of the Bureau are normally kept. The
representatives of the Government Accountability Office shall have access to
the personnel and to all books, accounts, documents, papers, records (including
electronic records), reports, files, and all other papers, automated data,
things, or property belonging to or under the control of or used or employed by
the Bureau pertaining to its financial transactions and necessary to facilitate
the audit, and such representatives shall be afforded full facilities for
verifying transactions with the balances or securities held by depositories,
fiscal agents, and custodians. All such books, accounts, documents, records,
reports, files, papers, and property of the Bureau shall remain in possession
and custody of the Bureau. The Comptroller General may obtain and duplicate any
such books, accounts, documents, records, working papers, automated data and
files, or other information relevant to such audit without cost to the
Comptroller General, and the right of access of the Comptroller General to such
information shall be enforceable pursuant to section 716(c) of title 31, United
States Code.</text>
</subparagraph><subparagraph id="ID6ce22707557a4f458a97127fe17c67d1"><enum>(B)</enum><header>Report</header><text>The
Comptroller General shall submit to the Congress a report of each annual audit
conducted under this subsection. The report to the Congress shall set forth the
scope of the audit and shall include the statement of assets and liabilities
and surplus or deficit, the statement of income and expenses, the statement of
sources and application of funds, and such comments and information as may be
deemed necessary to inform Congress of the financial operations and condition
of the Bureau, together with such recommendations with respect thereto as the
Comptroller General may deem advisable. A copy of each report shall be
furnished to the President and to the Bureau at the time submitted to the
Congress.</text>
</subparagraph><subparagraph id="IDa364ab514e3e41a38486d87861268c8d"><enum>(C)</enum><header>Assistance and
costs</header><text>For the purpose of conducting an audit under this
subsection, the Comptroller General may, in the discretion of the Comptroller
General, employ by contract, without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5), professional services of firms and
organizations of certified public accountants for temporary periods or for
special purposes. Upon the request of the Comptroller General, the Director of
the Bureau shall transfer to the Government Accountability Office from funds
available, the amount requested by the Comptroller General to cover the full
costs of any audit and report conducted by the Comptroller General. The
Comptroller General shall credit funds transferred to the account established
for salaries and expenses of the Government Accountability Office, and such
amount shall be available upon receipt and without fiscal year limitation to
cover the full costs of the audit and report.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="IDf77577d70ee34a1d8e7b988b686067e6"><enum>(b)</enum><header>Consumer
Financial Protection Fund</header>
<paragraph commented="no" id="ID8d327ee4fe554a0995356622a39c97cc"><enum>(1)</enum><header>Separate fund
in Federal Reserve Board established</header><text>There is established in the
Federal Reserve Board a separate fund, to be known as the <quote>Consumer
Financial Protection Fund</quote> (referred to in this section as the
<quote>Bureau Fund</quote>).</text>
</paragraph><paragraph commented="no" id="ID1703cc4ee5804bcc9008bab09f38630b"><enum>(2)</enum><header>Fund
receipts</header><text>All amounts transferred to the Bureau under subsection
(a) shall be deposited into the Bureau Fund.</text>
</paragraph><paragraph commented="no" id="IDa81d64f1b5f9400092caf59d275e6468"><enum>(3)</enum><header>Investment
authority</header>
<subparagraph commented="no" id="ID6f82e13c5d9e48f384f75c74ab5eba41"><enum>(A)</enum><header>Amounts in
Bureau fund may be invested</header><text>The Bureau may request the Board of
Governors to invest the portion of the Bureau Fund that is not, in the judgment
of the Bureau, required to meet the current needs of the Bureau.</text>
</subparagraph><subparagraph commented="no" id="ID78fd53a9aafb435d887937c989f03f4e"><enum>(B)</enum><header>Eligible
investments</header><text>Investments authorized by this paragraph shall be
made by the Board of Governors in obligations of the United States or
obligations that are guaranteed as to principal and interest by the United
States, with maturities suitable to the needs of the Bureau Fund, as determined
by the Bureau.</text>
</subparagraph><subparagraph commented="no" id="ID20b64e913e414ea6baf3ff79ef8d5a82"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Bureau Fund shall be credited to
the Bureau Fund.</text>
</subparagraph></paragraph></subsection><subsection id="ID6d02c2e21ac141f881bd92816d3e713e"><enum>(c)</enum><header>Use of
Funds</header>
<paragraph id="IDdba1bcf4d8cb4725b8aac133c67da969"><enum>(1)</enum><header>In
general</header><text>Funds obtained by, transferred to, or credited to the
Bureau Fund shall be immediately available to the Bureau and under the control
of the Director, and shall remain available until expended, to pay the expenses
of the Bureau in carrying out its duties and responsibilities. The compensation
of the Director and other employees of the Bureau and all other expenses
thereof may be paid from, obtained by, transferred to, or credited to the
Bureau Fund under this section.</text>
</paragraph><paragraph id="IDb6c6c7fb75934761b17a4638c30f8877"><enum>(2)</enum><header>Funds that are
not government funds</header><text>Funds obtained by or transferred to the
Bureau Fund shall not be construed to be Government funds or appropriated
monies.</text>
</paragraph><paragraph id="ID931b0ec2c70543c5aa1f7ecf74a192b1"><enum>(3)</enum><header>Amounts not
subject to apportionment</header><text>Notwithstanding any other provision of
law, amounts in the Bureau Fund and in the Civil Penalty Fund established under
subsection (d) shall not be subject to apportionment for purposes of chapter 15
of title 31, United States Code, or under any other authority.</text>
</paragraph></subsection><subsection id="IDff0441276ca449d49d754aecae1e7439"><enum>(d)</enum><header>Penalties and
Fines</header>
<paragraph id="ID8c7d1c28539a413ea489018199979342"><enum>(1)</enum><header>Establishment
of victims relief fund</header><text>There is established in the Federal
Reserve Board a fund to be known as the <quote>Consumer Financial Protection
Civil Penalty Fund</quote> (referred to in this subsection as the <quote>Civil
Penalty Fund</quote>). If the Bureau obtains a civil penalty against any person
in any judicial or administrative action under Federal consumer financial laws,
the Bureau shall deposit into the Civil Penalty Fund, the amount of the penalty
collected.</text>
</paragraph><paragraph id="ID40a2d32ac6b34ad1894cf36d8943d1b7"><enum>(2)</enum><header>Payment to
victims</header><text>Amounts in the Civil Penalty Fund shall be available to
the Bureau, without fiscal year limitation, for payments to the victims of
activities for which civil penalties have been imposed under the Federal
consumer financial laws. To the extent such victims cannot be located or such
payments are otherwise not practicable, the Bureau may use such funds for the
purpose of consumer education and financial literacy programs.</text>
</paragraph></subsection></section><section id="IDd028b766cf1c439d85dfbd7b56db88ae"><enum>1018.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the date of enactment of this Act.</text>
</section></subtitle><subtitle id="id6742674548234A429DA638829EF10015"><enum>B</enum><header>General Powers of
the Bureau</header>
<section id="ID77f659008bb0423f9d809ff90bfca563"><enum>1021.</enum><header>Purpose,
objectives, and functions</header>
<subsection id="IDa91ba62e5c8a428d84c7ea6ba73a79ba"><enum>(a)</enum><header>Purpose</header><text>The
Bureau shall seek to implement and, where applicable, enforce Federal consumer
financial law consistently for the purpose of ensuring that markets for
consumer financial products and services are fair, transparent, and
competitive.</text>
</subsection><subsection id="ID8f501251f7e94d7b898fe3b5df4408d8"><enum>(b)</enum><header>Objectives</header><text>The
Bureau is authorized to exercise its authorities under Federal consumer
financial law for the purposes of ensuring that, with respect to consumer
financial products and services—</text>
<paragraph id="ID45a87d11a1ee4cf09476df82bc91c0d5"><enum>(1)</enum><text>consumers are
provided with timely and understandable information to make responsible
decisions about financial transactions;</text>
</paragraph><paragraph id="ID0dcec289e4e3489caa47c3cb43267b0c"><enum>(2)</enum><text>consumers are
protected from unfair, deceptive, or abusive acts and practices and from
discrimination;</text>
</paragraph><paragraph id="ID1676987906fe4c73943454e71f7454da"><enum>(3)</enum><text>outdated,
unnecessary, or unduly burdensome regulations are regularly identified and
addressed in order to reduce unwarranted regulatory burdens;</text>
</paragraph><paragraph id="ID76f723987c7d4ff6a4e646a2dda87ac7"><enum>(4)</enum><text>Federal consumer
financial law is enforced consistently, without regard to the status of a
person as a depository institution, in order to promote fair competition;
and</text>
</paragraph><paragraph id="IDe0c5dd41c23249888e8c9e29d3d679af"><enum>(5)</enum><text>markets for
consumer financial products and services operate transparently and efficiently
to facilitate access and innovation.</text>
</paragraph></subsection><subsection id="ID3618b7d02b5340598bf9487eec19899d"><enum>(c)</enum><header>Functions</header><text>The
primary functions of the Bureau are—</text>
<paragraph id="IDe42633f4ebd7450bb0d2615dd2a3cb34"><enum>(1)</enum><text>conducting
financial education programs;</text>
</paragraph><paragraph id="IDf9ea15a838da438c87094b354877d7d5"><enum>(2)</enum><text>collecting,
investigating, and responding to consumer complaints;</text>
</paragraph><paragraph id="IDff11c7e489dd4cfebf42f2dcbea856fa"><enum>(3)</enum><text>collecting,
researching, monitoring, and publishing information relevant to the functioning
of markets for consumer financial products and services to identify risks to
consumers and the proper functioning of such markets;</text>
</paragraph><paragraph id="IDf9b7f5cf40c848d391357156ce261a8b"><enum>(4)</enum><text>subject to
sections 1024 through 1026, supervising covered persons for compliance with
Federal consumer financial law, and taking appropriate enforcement action to
address violations of Federal consumer financial law;</text>
</paragraph><paragraph id="id0D0AA4176B7140B8A9A8BA27A8136F4C"><enum>(5)</enum><text>issuing rules,
orders, and guidance implementing Federal consumer financial law; and</text>
</paragraph><paragraph id="IDde0ff1cc949c472daa18f4dea3a30a71"><enum>(6)</enum><text>performing such
support activities as may be necessary or useful to facilitate the other
functions of the Bureau.</text>
</paragraph></subsection></section><section id="IDf9e9b305e531450d9f9ed4fafda559ba"><enum>1022.</enum><header>Rulemaking
authority</header>
<subsection id="ID36ccbb1b589648c49ffb6fb40dd7dbe9"><enum>(a)</enum><header>In
general</header><text>The Bureau is authorized to exercise its authorities
under Federal consumer financial law to administer, enforce, and otherwise
implement the provisions of Federal consumer financial law.</text>
</subsection><subsection id="ID020ec3d019494b1b8b245c0035a66837"><enum>(b)</enum><header>Rulemaking,
orders, and guidance</header>
<paragraph id="id295E0C5DDA1146D9B2C6586A1674E950"><enum>(1)</enum><header>General
authority</header><text>The Director may prescribe rules and issue orders and
guidance, as may be necessary or appropriate to enable the Bureau to administer
and carry out the purposes and objectives of the Federal consumer financial
laws, and to prevent evasions thereof.</text>
</paragraph><paragraph id="ID68a136ad1d3747e79ba9826365251dff"><enum>(2)</enum><header>Standards for
rulemaking</header><text>In prescribing a rule under the Federal consumer
financial laws—</text>
<subparagraph id="ID0ade772b1e3b48d097e93cc901df2e70"><enum>(A)</enum><text>the Bureau shall
consider the potential benefits and costs to consumers and covered persons,
including the potential reduction of access by consumers to consumer financial
products or services resulting from such rule;</text>
</subparagraph><subparagraph id="ID9bb56df0d9044e898786a3617ec1d008"><enum>(B)</enum><text>the Bureau shall
consult with the appropriate prudential regulators or other Federal agencies
prior to proposing a rule and during the comment process regarding consistency
with prudential, market, or systemic objectives administered by such agencies;
and</text>
</subparagraph><subparagraph id="ID5d94adb8fcce4497beacd3355105985f"><enum>(C)</enum><text>if, during the
consultation process described in subparagraph (B), a prudential regulator
provides the Bureau with a written objection to the proposed rule of the Bureau
or a portion thereof, the Bureau shall include in the adopting release a
description of the objection and the basis for the Bureau decision, if any,
regarding such objection, except that nothing in this clause shall be construed
as altering or limiting the procedures under section 1023 that may apply to any
rule prescribed by the Bureau.</text>
</subparagraph></paragraph><paragraph id="IDfa4de16248a8487ab2949fb445f7c4ab"><enum>(3)</enum><header>Exemptions</header>
<subparagraph id="ID4f80c77437ce427ab7a9b43e49920dec"><enum>(A)</enum><header>In
general</header><text>The Bureau, by rule, may conditionally or unconditionally
exempt any class of covered persons, service providers, or consumer financial
products or services, from any provision of this title, or from any rule issued
under this title, as the Bureau determines necessary or appropriate to carry
out the purposes and objectives of this title, taking into consideration the
factors in subparagraph (B).</text>
</subparagraph><subparagraph id="ID310d0f17bd134d2cbaae47b17c7f9475"><enum>(B)</enum><header>Factors</header><text>In
issuing an exemption, as permitted under subparagraph (A), the Bureau shall, as
appropriate, take into consideration—</text>
<clause id="IDd92496b11b5249a0916e252658740979"><enum>(i)</enum><text>the
total assets of the class of covered persons;</text>
</clause><clause id="IDcf121ecffc6f4f0682080d758a354b54"><enum>(ii)</enum><text>the
volume of transactions involving consumer financial products or services in
which the class of covered persons engages; and</text>
</clause><clause id="ID88b734ce60fd4c09a4dfe4b86e16e419"><enum>(iii)</enum><text>existing
provisions of law which are applicable to the consumer financial product or
service and the extent to which such provisions provide consumers with adequate
protections.</text>
</clause></subparagraph></paragraph><paragraph id="idD1B19BE2484148878B28C1BA3B5FB916"><enum>(4)</enum><header>Exclusive
rulemaking authority</header><text>Notwithstanding any other provisions of
Federal law, to the extent that a provision of Federal consumer financial law
authorizes the Bureau and another Federal agency to issue regulations under
that provision of law for purposes of assuring compliance with Federal consumer
financial law and any regulations thereunder, the Bureau shall have the
exclusive authority to prescribe rules subject to those provisions of
law.</text>
</paragraph></subsection><subsection id="ID5b37fe3d1eff4535ae1fb0a48145f95f"><enum>(c)</enum><header>Monitoring</header>
<paragraph id="ID1c3e1f45ff0844beab30d9f7c40184cc"><enum>(1)</enum><header>In
general</header><text>In order to support its rulemaking and other functions,
the Bureau shall monitor for risks to consumers in the offering or provision of
consumer financial products or services, including developments in markets for
such products or services.</text>
</paragraph><paragraph id="id82F99D03E09F4D0CA963B3A7E9B15A9F"><enum>(2)</enum><header>Considerations</header><text>In
allocating its resources to perform the monitoring required by this section,
the Bureau may consider, among other factors—</text>
<subparagraph id="ID7d69bedda0954f549ec1114e2cc064a0"><enum>(A)</enum><text>likely risks and
costs to consumers associated with buying or using a type of consumer financial
product or service;</text>
</subparagraph><subparagraph id="ID08c484b1c6d740b8bcd04abe97268699"><enum>(B)</enum><text>understanding by
consumers of the risks of a type of consumer financial product or
service;</text>
</subparagraph><subparagraph id="IDdb2bc700cfd546a796079371512e212d"><enum>(C)</enum><text>the legal
protections applicable to the offering or provision of a consumer financial
product or service, including the extent to which the law is likely to
adequately protect consumers;</text>
</subparagraph><subparagraph id="ID1fbea91f8560497ab5ec9971a6d78b81"><enum>(D)</enum><text>rates of growth
in the offering or provision of a consumer financial product or service;</text>
</subparagraph><subparagraph id="ID3797a55b97314df989f2676df1a19d56"><enum>(E)</enum><text>the extent, if
any, to which the risks of a consumer financial product or service may
disproportionately affect traditionally underserved consumers; or</text>
</subparagraph><subparagraph id="IDc14403c3cd6846c7ab769044597e10aa"><enum>(F)</enum><text>the types,
number, and other pertinent characteristics of covered persons that offer or
provide the consumer financial product or service.</text>
</subparagraph></paragraph><paragraph id="ID9184d86ece1e4de2807595f39f7ac5f3"><enum>(3)</enum><header>Reports</header><text>The
Bureau shall publish not fewer than 1 report of significant findings of its
monitoring required by this subsection in each calendar year, beginning with
the first calendar year that begins at least 1 year after the designated
transfer date.</text>
</paragraph><paragraph commented="no" id="IDd95c779838ac49a081384bda8af275ac"><enum>(4)</enum><header>Collection of
information</header><text>In conducting research on the offering and provision
of consumer financial products or services, the Bureau shall have the authority
to gather information from time to time regarding the organization, business
conduct, markets, and activities of persons operating in consumer financial
services markets. In order to gather such information, the Bureau may—</text>
<subparagraph commented="no" id="IDc101c1cffce84c00ba0c5c91f8c1a90d"><enum>(A)</enum><text>gather and
compile information from examination reports concerning covered persons or
service providers, assessment of consumer complaints, surveys, and interviews
of covered persons and consumers, and review of available databases;</text>
</subparagraph><subparagraph commented="no" id="ID448f6f2f674e4740abbaedd4ab0e1cbf"><enum>(B)</enum><text>require persons
to file with the Bureau, under oath or otherwise, in such form and within such
reasonable period of time as the Bureau may prescribe, by rule or order, annual
or special reports, or answers in writing to specific questions, furnishing
such information as the Bureau may require; and</text>
</subparagraph><subparagraph commented="no" id="IDa515cea7c7274a17b65bf62cf13917a2"><enum>(C)</enum><text>make public such
information obtained by the Bureau 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><paragraph commented="no" id="IDaaa424ebec0c47b6a982e978ce444865"><enum>(5)</enum><header>Confidentiality
rules</header><text>The Bureau shall prescribe rules regarding the confidential
treatment of information obtained from persons in connection with the exercise
of its authorities under Federal consumer financial law.</text>
<subparagraph commented="no" id="ID708f03526a42445f824df364fad1eb72"><enum>(A)</enum><header>Access by the
bureau to reports of other regulators</header>
<clause commented="no" id="ID278d09afbf904983a35a3112ae983e5e"><enum>(i)</enum><header>Examination and
financial condition reports</header><text>Upon providing reasonable assurances
of confidentiality, the Bureau shall have access to any report of examination
or financial condition made by a prudential regulator or other Federal agency
having jurisdiction over a covered person or service provider, and to all
revisions made to any such report.</text>
</clause><clause commented="no" id="IDc4d6e0aa96774d5880cfafcc7c816a1c"><enum>(ii)</enum><header>Provision of
other reports to the bureau</header><text>In addition to the reports described
in clause (i), a prudential regulator or other Federal agency having
jurisdiction over a covered person or service provider may, in its discretion,
furnish to the Bureau any other report or other confidential supervisory
information concerning any insured depository institution, credit union, or
other entity examined by such agency under authority of any provision of
Federal law.</text>
</clause></subparagraph><subparagraph commented="no" id="ID9c2ab6d5d9b947408c1d095b783aa44c"><enum>(B)</enum><header>Access by other
regulators to reports of the bureau</header>
<clause commented="no" id="IDd50d182840784cc499e0095f10e846f8"><enum>(i)</enum><header>Examination
reports</header><text>Upon providing reasonable assurances of confidentiality,
a prudential regulator, a State regulator, or any other Federal agency having
jurisdiction over a covered person or service provider shall have access to any
report of examination made by the Bureau with respect to such person, and to
all revisions made to any such report.</text>
</clause><clause commented="no" id="ID4ebd29f2869e4683af77ec4415aeefef"><enum>(ii)</enum><header>Provision of
other reports to other regulators</header><text>In addition to the reports
described in clause (i), the Bureau may, in its discretion, furnish to a
prudential regulator or other agency having jurisdiction over a covered person
or service provider any other report or other confidential supervisory
information concerning such person examined by the Bureau under the authority
of any other provision of Federal law.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID4f4ef43cf8c641e68d3e80fe5f7aea1d"><enum>(6)</enum><header>Privacy
considerations</header><text>In collecting information from any person,
publicly releasing information held by the Bureau, or requiring covered persons
to publicly report information, the Bureau shall take steps to ensure that
proprietary, personal, or confidential consumer information that is protected
from public disclosure under section 552(b) or 552a of title 5, United States
Code, or any other provision of law, is not made public under this
title.</text>
</paragraph></subsection><subsection id="ID5cbd5474fd5945aa83e54495deaca720"><enum>(d)</enum><header>Assessment of
significant rules</header>
<paragraph id="ID6ae17ef0dcc74c99b87b138502f14f79"><enum>(1)</enum><header>In
general</header><text>The Bureau shall conduct an assessment of each
significant rule or order adopted by the Bureau under Federal consumer
financial law. The assessment shall address, among other relevant factors, the
effectiveness of the rule or order in meeting the purposes and objectives of
this title and the specific goals stated by the Bureau. The assessment shall
reflect available evidence and any data that the Bureau reasonably may
collect.</text>
</paragraph><paragraph id="ID7a36168ceefa41b495972bab7151c6fb"><enum>(2)</enum><header>Reports</header><text>The
Bureau shall publish a report of its assessment under this subsection not later
than 5 years after the effective date of the subject rule or order.</text>
</paragraph><paragraph id="ID151439914f1b4ae6a2a50b117c381489"><enum>(3)</enum><header>Public comment
required</header><text>Before publishing a report of its assessment, the Bureau
shall invite public comment on recommendations for modifying, expanding, or
eliminating the newly adopted significant rule or order.</text>
</paragraph></subsection><subsection id="ID2039490fef1145db8ad2275461cd1563"><enum>(e)</enum><header>Information
gathering</header><text>In conducting any monitoring or assessment required by
this section, the Bureau may gather information through a variety of methods,
including by conducting surveys or interviews of consumers.</text>
</subsection></section><section commented="no" id="IDe34d36e16fa5412f9e759014605bd2d3"><enum>1023.</enum><header>Review of
Bureau Regulations</header>
<subsection commented="no" id="ID39a1614ef8dd41888ebc79901f516221"><enum>(a)</enum><header>Review of
bureau regulations</header><text>On the petition of a member agency of the
Council, the Council may set aside a final regulation prescribed by the Bureau,
or any provision thereof, if the Council decides, in accordance with subsection
(c), that the regulation or provision would put the safety and soundness of the
United States banking system or the stability of the financial system of the
United States at risk.</text>
</subsection><subsection commented="no" id="IDe4e23248fa7647e6ac8a76518706386a"><enum>(b)</enum><header>Petition</header>
<paragraph commented="no" id="ID1ee0eabc32fa4a61bd4def534a636610"><enum>(1)</enum><header>Procedure</header><text>An
agency represented by a member of the Council may petition the Council, in
writing, and in accordance with rules prescribed pursuant to subsection (f), to
stay the effectiveness of, or set aside, a regulation if the member agency
filing the petition—</text>
<subparagraph commented="no" id="ID331a811e1af641de98262aa800711a2c"><enum>(A)</enum><text>has in good faith
attempted to work with the Bureau to resolve concerns regarding the effect of
the rule on the safety and soundness of the United States banking system or the
stability of the financial system of the United States; and</text>
</subparagraph><subparagraph commented="no" id="IDda9a60dd6c154662b6776c55ad8ef73a"><enum>(B)</enum><text>files the
petition with the Council not later than 10 days after the date on which the
regulation has be</text>
</subparagraph><subparagraph commented="no" id="idF4296F75E2AA4AADACEDA416E512E667"><enum>(C)</enum><text>en published in
the Federal Register.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID001f15cc3ff144a9b8b85dd1e194f9c8"><enum>(2)</enum><header>Publication</header><text>Any
petition filed with the Council under this section shall be published in the
Federal Register and transmitted contemporaneously with filing to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.</text>
</paragraph></subsection><subsection commented="no" id="IDe993ae41fc3e4b76a1d70de2bab40576"><enum>(c)</enum><header>Stays and set
asides</header>
<paragraph commented="no" id="id4435A0A2F0054F0388F5AF1D4F50B194"><enum>(1)</enum><header>Stay</header>
<subparagraph commented="no" id="id55B701869B1E419D95881C7891E24D80"><enum>(A)</enum><header>In
general</header><text>Upon the request of any member agency, the Chairperson of
the Council may stay the effectiveness of a regulation for the purpose of
allowing appropriate consideration of the petition by the Council.</text>
</subparagraph><subparagraph commented="no" id="idA306CD44D8374BAA8B997D294687F4DD"><enum>(B)</enum><header>Expiration</header><text>A
stay issued under this paragraph shall expire on the earlier of—</text>
<clause commented="no" id="idB307684C40DA414A80F7AC64AC26670A"><enum>(i)</enum><text>90 days after the
date of filing of the petition under subsection (b); or</text>
</clause><clause commented="no" id="id3A086BA2193442E6ADA6CADF6AFC390C"><enum>(ii)</enum><text>the date on
which the Council makes a decision under paragraph (3).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="idDF91B1A7F69742668724E4447D269D1E"><enum>(2)</enum><header>No adverse
inference</header><text>After the expiration of any stay imposed under this
section, no inference shall be drawn regarding the validity or enforceability
of a regulation which was the subject of the petition.</text>
</paragraph><paragraph commented="no" id="IDd49457cf941e48a7a42adf8387929f26"><enum>(3)</enum><header>Vote</header>
<subparagraph commented="no" id="ID791a7771664f4c8792c7f8700fc13912"><enum>(A)</enum><header>In
general</header><text>The decision to issue a stay of, or set aside, any
regulation under this section shall be made only with the affirmative vote in
accordance with subparagraph (B) of <fraction>2/3</fraction> of the members of
the Council then serving.</text>
</subparagraph><subparagraph commented="no" id="ID44cde2e202374612989342da429103d4"><enum>(B)</enum><header>Authorization
to vote</header><text>A member of the Council may vote to stay the
effectiveness of, or set aside, a final regulation prescribed by the Bureau
only if the agency or department represented by that member has—</text>
<clause commented="no" id="IDebf47ddadbad4751927edc02abe8a021"><enum>(i)</enum><text>considered any
relevant information provided by the agency submitting the petition and by the
Bureau; and</text>
</clause><clause commented="no" id="ID515994188a694cdfa88772d98a9827f3"><enum>(ii)</enum><text>made an official
determination, at a public meeting where applicable, that the regulation which
is the subject of the petition would put the safety and soundness of the United
States banking system or the stability of the financial system of the United
States at risk.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID2167c7ecbb5f43ceb23b42a060eae646"><enum>(4)</enum><header>Decisions to
set aside</header>
<subparagraph commented="no" id="IDc6f1f0f23bc249398552eb68950debb6"><enum>(A)</enum><header>Effect of
decision</header><text>A decision by the Council to set aside a regulation
prescribed by the Bureau, or provision thereof, shall render such regulation,
or provision thereof, unenforceable.</text>
</subparagraph><subparagraph commented="no" id="ID844fbd967c154b27898f3b7b4dbc0132"><enum>(B)</enum><header>Timely action
required</header><text>The Council may not issue a decision to set aside a
regulation, or provision thereof, which is the subject of a petition under this
section after the expiration of the later of—</text>
<clause commented="no" id="ID92295ef5e42c463bbe280fd43a5ffeeb"><enum>(i)</enum><text>45 days following
the date of filing of the petition, unless a stay is issued under paragraph
(1); or</text>
</clause><clause commented="no" id="ID87fd9cee842b4e2c853e0866338f3b03"><enum>(ii)</enum><text>the expiration
of a stay issued by the Council under this section.</text>
</clause></subparagraph><subparagraph commented="no" id="IDb9b195f8e74c4c1faea24c93b2977ebb"><enum>(C)</enum><header>Separate
authority</header><text>The issuance of a stay under this section does not
affect the authority of the Council to set aside a regulation.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID62be481eb54144e7a5aa2bc3ed6cd4f7"><enum>(5)</enum><header>Dismissal due
to inaction</header><text>A petition under this section shall be deemed
dismissed if the Council has not issued a decision to set aside a regulation,
or provision thereof, within the period for timely action under paragraph
(4)(B).</text>
</paragraph><paragraph commented="no" id="ID80e264ddd47b4c93b341012311d58871"><enum>(6)</enum><header>Publication of
decision</header><text>Any decision under this subsection to issue a stay of,
or set aside, a regulation or provision thereof shall be published by the
Council in the Federal Register as soon as practicable after the decision is
made, with an explanation of the reasons for the decision.</text>
</paragraph><paragraph commented="no" id="IDc2b5ccd2d12a4da99df6b08ffe6a3f51"><enum>(7)</enum><header>Rulemaking
procedures inapplicable</header><text>The notice and comment procedures under
section 553 of title 5, United States Code, shall not apply to any decision
under this section of the Council to issue a stay of, or set aside, a
regulation.</text>
</paragraph><paragraph commented="no" id="ID5dabab4fa04f4599a31751b6694967be"><enum>(8)</enum><header>Judicial review
of decisions by the council</header><text>A decision by the Council to set
aside a regulation prescribed by the Bureau, or provision thereof, shall be
subject to review under chapter 7 of title 5, United States Code.</text>
</paragraph></subsection><subsection commented="no" id="ID16bb1ee6d4c04477a22c24c4b28eccd3"><enum>(d)</enum><header>Application of
other law</header><text>Nothing in this section shall be construed as altering,
limiting, or restricting the application of any other provision of law, except
as otherwise specifically provided in this section, including chapter 5 and
chapter 7 of title 5, United States Code, to a regulation which is the subject
of a petition filed under this section.</text>
</subsection><subsection commented="no" id="ID1ea96adf5ab34a1d9d3a1c904962d5c6"><enum>(e)</enum><header>Savings
clause</header><text>Nothing in this section shall be construed as limiting or
restricting the Bureau from engaging in a rulemaking in accordance with
applicable law.</text>
</subsection><subsection commented="no" id="ID91a2d21c56064ba98f6830be44ec06e7"><enum>(f)</enum><header>Implementing
rules</header><text>The Council shall prescribe procedural rules to implement
this section.</text>
</subsection></section><section id="ID85c8b227e10e436483257967a1bbfee7"><enum>1024.</enum><header>Supervision
of nondepository covered persons</header>
<subsection id="ID6a7f8d41a13a4ec3890014a716b65d16"><enum>(a)</enum><header>Scope of
coverage</header>
<paragraph id="IDe6f333944a614c488933dc8e7b8d9560"><enum>(1)</enum><header>Applicability</header><text>Notwithstanding
any other provision of this title, and except as provided in paragraph (3),
this section shall apply to any covered person who—</text>
<subparagraph id="idC171BE98C0E040A48F73FB483D0E1ACB"><enum>(A)</enum><text>offers or
provides origination, brokerage, or servicing of loans secured by real estate
for use by consumers primarily for personal, family, or household purposes, or
loan modification or foreclosure relief services in connection with such loans;
or</text>
</subparagraph><subparagraph id="id36E8D35972E44314B44645D1E1A98C7A"><enum>(B)</enum><text>is a larger
participant of a market for other consumer financial products or services, as
defined by rule in accordance with paragraph (2).</text>
</subparagraph></paragraph><paragraph id="idBAD89F37AB654D7F847CC98ACC2F0E87"><enum>(2)</enum><header>Rulemaking to
define covered persons subject to this section</header><text>The Bureau shall
consult with the Federal Trade Commission prior to issuing a rule to define
covered persons subject to this section, in accordance with paragraph (1)(B).
The Bureau shall issue its initial rule within 1 year of the designated
transfer date.</text>
</paragraph><paragraph commented="no" id="IDce0f254014134dc99995e9b8621906aa"><enum>(3)</enum><header>Rules of
construction</header>
<subparagraph commented="no" id="idA6B8B2BB3D3547AC93A65A571B333299"><enum>(A)</enum><header>Certain persons
excluded</header><text>This section shall not apply to persons described in
section 1025(a) or 1026(a).</text>
</subparagraph><subparagraph commented="no" id="idC3C73FB99A3A46A7965DE6DE595C3638"><enum>(B)</enum><header>Activity
levels</header><text>For purposes of computing activity levels under paragraph
(1) or rules issued thereunder, activities of affiliated companies (other than
insured depository institutions or insured credit unions) shall be
aggregated.</text>
</subparagraph></paragraph></subsection><subsection id="ID46ee580df85c4112ad0661abcac96f61"><enum>(b)</enum><header>Supervision</header>
<paragraph id="ID40ec92463ab440aa98ecc2783d82710d"><enum>(1)</enum><header>In
general</header><text>The Bureau shall require reports and conduct examinations
on a periodic basis of persons described in subsection (a) for purposes
of—</text>
<subparagraph id="id00742545BB4F40E0BF813C10157239FC"><enum>(A)</enum><text>assessing
compliance with the requirements of Federal consumer financial law;</text>
</subparagraph><subparagraph id="idEB006CBD0EA540088F79651492100265"><enum>(B)</enum><text>obtaining
information about the activities and compliance systems or procedures of such
person; and</text>
</subparagraph><subparagraph id="idE86A03AD4EBD4B01BECFBE67664C56DC"><enum>(C)</enum><text>detecting and
assessing risks to consumers and to markets for consumer financial products and
services.</text>
</subparagraph></paragraph><paragraph id="ID163330a1cb594458be4bfb9504631953"><enum>(2)</enum><header>Risk-based
supervision program</header><text>The Bureau shall exercise its authority under
paragraph (1) in a manner designed to ensure that such exercise, with respect
to persons described in subsection (a), is based on the assessment by the
Bureau of the risks posed to consumers in the relevant product markets and
geographic markets, and taking into consideration, as applicable—</text>
<subparagraph id="ID7e327eaace84477ab8cb2579c218d90e"><enum>(A)</enum><text>the asset size of
the covered person;</text>
</subparagraph><subparagraph id="ID2557462d1d244db98d83c5576f37d621"><enum>(B)</enum><text>the volume of
transactions involving consumer financial products or services in which the
covered person engages;</text>
</subparagraph><subparagraph id="ID4a7df0574f024c16a2261b5841546695"><enum>(C)</enum><text>the risks to
consumers created by the provision of such consumer financial products or
services;</text>
</subparagraph><subparagraph id="IDa4fdb4d6390d4387b45385a08e5daf72"><enum>(D)</enum><text>the extent to
which such institutions are subject to oversight by State authorities for
consumer protection; and</text>
</subparagraph><subparagraph id="IDdd476cc33d6e44d88d3fb7ea5bfba5c3"><enum>(E)</enum><text>any other factors
that the Bureau determines to be relevant to a class of covered persons.</text>
</subparagraph></paragraph><paragraph id="IDe794eabd2b1b4b80b94b63a74f306e32"><enum>(3)</enum><header>Coordination</header><text>To
minimize regulatory burden, the Bureau shall coordinate its supervisory
activities with the supervisory activities conducted by prudential regulators
and the State bank regulatory authorities, including establishing their
respective schedules for examining persons described in subsection (a) and
requirements regarding reports to be submitted by such persons.</text>
</paragraph><paragraph id="id2AEE2CE095B740A8BA3BFC2FB69559F9"><enum>(4)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph id="id73F0A416006A40299976D870FE5BB222"><enum>(A)</enum><text>reports
pertaining to persons described in subsection (a) that have been provided or
required to have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph id="id218C4582D34140C2B77D6B1EACB53007"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph id="IDe4b3e6b9fd3c41588f919f6bc5fb5c4b"><enum>(5)</enum><header>Preservation of
authority</header><text>Nothing in this title may be construed as limiting the
authority of the Director to require reports from persons described in
subsection (a), as permitted under paragraph (1), regarding information owned
or under the control of such person, regardless of whether such information is
maintained, stored, or processed by another person.</text>
</paragraph><paragraph id="ID14ffd0e5af344109b8e9bd2bd62a41c2"><enum>(6)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph><paragraph id="IDde1ac262c8ec4c20b10db705ecda6b70"><enum>(7)</enum><header>Registration,
recordkeeping, and other requirements for certain persons</header>
<subparagraph id="ID859ee0b3c9f64679b57dfbb1d4e249ec"><enum>(A)</enum><header>In
general</header><text>The Bureau shall prescribe rules to facilitate
supervision of persons described in subsection (a) and assessment and detection
of risks to consumers.</text>
</subparagraph><subparagraph id="ID605b629f52924724972063b69ece6d54"><enum>(B)</enum><header>Registration</header>
<clause id="ID386012209da9492fba2abd143f599408"><enum>(i)</enum><header>In
general</header><text>The Bureau shall prescribe rules regarding registration
requirements for persons described in subsection (a).</text>
</clause><clause id="ID6c177810ecbc43f6a2bb3bee74a5b2ca"><enum>(ii)</enum><header>Exception for
related persons</header><text>The Bureau may not impose requirements under this
section regarding the registration of a related person.</text>
</clause><clause id="ID54187542089347a1844e1d8b299d1a43"><enum>(iii)</enum><header>Registration
information</header><text>Subject to rules prescribed by the Bureau, the Bureau
shall publicly disclose the registration information about persons described in
subsection (a) to facilitate the ability of consumers to identify persons
described in subsection (a) registered with the Bureau.</text>
</clause></subparagraph><subparagraph id="IDc3ace444b59d45cebb98333cb7c6e026"><enum>(C)</enum><header>Recordkeeping</header><text>The
Bureau may require a person described in subsection (a), to generate, provide,
or retain records for the purposes of facilitating supervision of such persons
and assessing and detecting risks to consumers.</text>
</subparagraph><subparagraph id="IDf730742d02274315bd9e7351a219f256"><enum>(D)</enum><header>Requirements
concerning obligations</header><text>The Bureau may prescribe rules regarding a
person described in subsection (a), to ensure that such persons are legitimate
entities and are able to perform their obligations to consumers. Such
requirements may include background checks for principals, officers, directors,
or key personnel and bonding or other appropriate financial
requirements.</text>
</subparagraph><subparagraph id="IDd99ddf1ef2ac497685e4cf5669358f31"><enum>(E)</enum><header>Consultation
with State agencies</header><text>In developing and implementing requirements
under this paragraph, the Bureau shall consult with State agencies regarding
requirements or systems (including coordinated or combined systems for
registration), where appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="ID7796a957bdf6415b8598bd176d10d713"><enum>(c)</enum><header>Exclusive
enforcement authority</header>
<paragraph id="ID4c028d678acc4d78ac067a4a6f274d6c"><enum>(1)</enum><header>The Bureau to
have exclusive enforcement authority</header><text>To the extent that Federal
law authorizes the Bureau and another Federal agency to enforce Federal
consumer financial law, the Bureau shall have exclusive authority to enforce
that Federal consumer financial law with respect to any person described in
subsection (a)(1)(B).</text>
</paragraph><paragraph id="ID8b072dcf164b4f4883243f5a29ee8764"><enum>(2)</enum><header>Referral</header><text>Any
Federal agency authorized to enforce a Federal consumer financial law described
in paragraph (1) may recommend in writing to the Bureau that the Bureau
initiate an enforcement proceeding, as the Bureau is authorized by that Federal
law or by this title.</text>
</paragraph><paragraph id="ID4293be6200cf481682da791d652f8dc8"><enum>(3)</enum><header>Coordination
with the Federal trade commission</header>
<subparagraph id="ID92db058b9b7544288b40ef1604f9135a"><enum>(A)</enum><header>In
general</header><text>The Bureau and the Federal Trade Commission shall
coordinate enforcement actions for violations of Federal law regarding the
offering or provision of consumer financial products or services by any covered
person that is described in subsection (a)(1)(A), or service providers thereto.
In carrying out this subparagraph, the agencies shall negotiate an agreement to
establish procedures for such coordination, including procedures for notice to
the other agency, where feasible, prior to initiating a civil action to enforce
a Federal law regarding the offering or provision of consumer financial
products or services.</text>
</subparagraph><subparagraph id="IDff560882aa624dc4acb89485c1090d9b"><enum>(B)</enum><header>Civil
actions</header><text>Whenever a civil action has been filed by, or on behalf
of, the Bureau or the Federal Trade Commission for any violation of any
provision of Federal law described in subparagraph (A), or any regulation
prescribed under such provision of law—</text>
<clause id="ID8bb86b33d14d4125901534e54274cafd"><enum>(i)</enum><text>the
other agency may not, during the pendency of that action, institute a civil
action under such provision of law against any defendant named in the complaint
in such pending action for any violation alleged in the complaint; and</text>
</clause><clause id="ID5f0ead2f727b41e1a39c5dd5af530810"><enum>(ii)</enum><text>the
Bureau or the Federal Trade Commission may intervene as a party in any such
action brought by the other agency, and, upon intervening—</text>
<subclause id="ID624608b5fd864f499a78f165d0a7bf6b"><enum>(I)</enum><text>be
heard on all matters arising in such enforcement action; and</text>
</subclause><subclause id="ID60a394912fdf400195dab05c4ac48047"><enum>(II)</enum><text>file petitions
for appeal in such actions.</text>
</subclause></clause></subparagraph><subparagraph id="ID5c3fe9fc12ef4836bf9264cb4a48b44f"><enum>(C)</enum><header>Agreement
terms</header><text>The terms of any agreement negotiated under subparagraph
(A) may modify or supersede the provisions of subparagraph (B).</text>
</subparagraph><subparagraph id="ID3049211d617e4782838407e8e16ba816"><enum>(D)</enum><header>Deadline</header><text>The
agencies shall reach the agreement required under subparagraph (A) not later
than 6 months after the designated transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="ID60293f0a5ee6413da343416fec9549d4"><enum>(d)</enum><header>Exclusive
rulemaking and examination authority</header><text>Notwithstanding any other
provision of Federal law, to the extent that Federal law authorizes the Bureau
and another Federal agency to issue regulations or guidance, conduct
examinations, or require reports from a person described in subsection (a)
under such law for purposes of assuring compliance with Federal consumer
financial law and any regulations thereunder, the Bureau shall have the
exclusive authority to prescribe rules, issue guidance, conduct examinations,
require reports, or issue exemptions with regard to a person described in
subsection (a), subject to those provisions of law.</text>
</subsection><subsection id="IDd081d963bae644ce92155b9ed4193553"><enum>(e)</enum><header>Service
providers</header><text>A service provider to a person described in subsection
(a) shall be subject to the authority of the Bureau under this section, to the
same extent as if such service provider were engaged in a service relationship
with a bank, and the Bureau were an appropriate Federal banking agency under
section 7(c) of the Bank Service Company Act (12 U.S.C. 1867(c)). In conducting
any examination or requiring any report from a service provider subject to this
subsection, the Bureau shall coordinate with the appropriate prudential
regulator, as applicable.</text>
</subsection><subsection id="idC6B1B406D63D47718DF22B5F0D4C8D8D"><enum>(f)</enum><header>Preservation of
farm credit administration authority</header><text>No provision of this title
may be construed as modifying, limiting, or otherwise affecting the authority
of the Farm Credit Administration.</text>
</subsection></section><section id="ID3a5a291100df41c19db5a578fce30c16"><enum>1025.</enum><header>Supervision
of very large banks, savings associations, and credit unions</header>
<subsection id="ID088bea83158a4a1db7bf53c9dbfe2c42"><enum>(a)</enum><header>Scope of
coverage</header>
<paragraph id="idA36814CBDE3D40128D9F8D9F0231EAFA"><enum>(1)</enum><header>Applicability</header><text>This
section shall apply to any covered person that is—</text>
<subparagraph id="ID2fbd2d253ac84380bfe328e3a5248f34"><enum>(A)</enum><text>an insured
depository institution with total assets of more than $10,000,000,000 and any
affiliate thereof; or</text>
</subparagraph><subparagraph id="IDc6b5bd737d3d494796a4465c409f7fe2"><enum>(B)</enum><text>an insured credit
union with total assets of more than $10,000,000,000 and any affiliate
thereof.</text>
</subparagraph></paragraph><paragraph id="id9DB5855FB31A4541BC1BB2C97D35D148"><enum>(2)</enum><header>Rule of
construction</header><text>For purposes of determining total assets under this
section and section 1026, the Bureau shall rely on the same regulations and
interim methodologies specified in section 312(e).</text>
</paragraph></subsection><subsection id="ID4da88155f6e046ae8d1ac1a0b35b22af"><enum>(b)</enum><header>Supervision</header>
<paragraph id="ID93c9e21cee534f5aa1421a9fbe2b2f15"><enum>(1)</enum><header>In
general</header><text>The Bureau shall require reports and conduct examinations
on a periodic basis of persons described in subsection (a) for purposes
of—</text>
<subparagraph id="ID53bc4003292f49d6845bd92ac2c2d3d3"><enum>(A)</enum><text>assessing
compliance with the requirements of Federal consumer financial laws;</text>
</subparagraph><subparagraph id="IDba805ecd7c9e4435a751fe4419d42465"><enum>(B)</enum><text>obtaining
information about the activities and compliance systems or procedures of such
persons; and</text>
</subparagraph><subparagraph id="ID1bc5ffed89a945b39762c033650fb651"><enum>(C)</enum><text>detecting and
assessing risks to consumers and to markets for consumer financial products and
services.</text>
</subparagraph></paragraph><paragraph id="ID69dcdf1b01d6497bb2595c1e1f55270c"><enum>(2)</enum><header>Coordination</header><text>To
minimize regulatory burden, the Bureau shall coordinate its supervisory
activities with the supervisory activities conducted by prudential regulators
and the State bank regulatory authorities, including establishing their
respective schedules for examining such persons described in subsection (a) and
requirements regarding reports to be submitted by such persons.</text>
</paragraph><paragraph id="id87E52689882A4BEF9FD7C9C111A81A71"><enum>(3)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph id="id25F0205A18B447D492FE5752416567ED"><enum>(A)</enum><text>reports
pertaining to a person described in subsection (a) that have been provided or
required to have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph id="id84D4CE7702274D35A64827C324C9C0D5"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph id="IDa247c1cb36ad406bb19cfea030cf0c88"><enum>(4)</enum><header>Preservation of
authority</header><text>Nothing in this title may be construed as limiting the
authority of the Director to require reports from a person described in
subsection (a), as permitted under paragraph (1), regarding information owned
or under the control of such person, regardless of whether such information is
maintained, stored, or processed by another person.</text>
</paragraph><paragraph id="IDb7684586d03147848999479445916fed"><enum>(5)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph></subsection><subsection id="ID107d2bbe385d42bd8a831b8c77bfd915"><enum>(c)</enum><header>Primary
enforcement authority</header>
<paragraph id="ID16ba27deab604d239e1484c31425a35a"><enum>(1)</enum><header>The bureau to
have primary enforcement authority</header><text>To the extent that the Bureau
and another Federal agency are authorized to enforce a Federal consumer
financial law, the Bureau shall have primary authority to enforce that Federal
consumer financial law with respect to any person described in subsection
(a).</text>
</paragraph><paragraph id="IDc0fa0df2bf874f948c7880e3811f491c"><enum>(2)</enum><header>Referral</header><text>Any
Federal agency, other than the Federal Trade Commission, that is authorized to
enforce a Federal consumer financial law may recommend, in writing, to the
Bureau that the Bureau initiate an enforcement proceeding with respect to a
person described in subsection (a), as the Bureau is authorized to do by that
Federal consumer financial law.</text>
</paragraph><paragraph id="IDd9ed44ce420e4cd3b65c753482a53ce3"><enum>(3)</enum><header>Backup
enforcement authority of other Federal agency</header><text>If the Bureau does
not, before the end of the 120-day period beginning on the date on which the
Bureau receives a recommendation under paragraph (2), initiate an enforcement
proceeding, the other agency referred to in paragraph (2) may initiate an
enforcement proceeding, as permitted by the subject provision of Federal
law.</text>
</paragraph></subsection><subsection id="ID635126c9f3f94269b9588d42e0ec2394"><enum>(d)</enum><header>Service
providers</header><text>A service provider to a person described in subsection
(a) shall be subject to the authority of the Bureau under this section, to the
same extent as if the Bureau were an appropriate Federal banking agency under
section 7(c) of the Bank Service Company Act 12 U.S.C. 1867(c). In conducting
any examination or requiring any report from a service provider subject to this
subsection, the Bureau shall coordinate with the appropriate prudential
regulator.</text>
</subsection><subsection display-inline="no-display-inline" id="HA154952DB72547F5BF1BC14E2BA0BD2B"><enum>(e)</enum><header>Simultaneous and
coordinated supervisory action</header>
<paragraph id="HA5EF58DE75414690806090E19B510DCB"><enum>(1)</enum><header>Examinations</header><text display-inline="yes-display-inline">A prudential regulator and the Bureau
shall, with respect to each insured depository institution, insured credit
union, or other covered person described in subsection (a) that is supervised
by the prudential regulator and the Bureau, respectively—</text>
<subparagraph id="HE5712181247C4F48A370710D7BA2FB75"><enum>(A)</enum><text>coordinate the
scheduling of examinations of the insured depository institution, insured
credit union, or other covered person described in subsection (a);</text>
</subparagraph><subparagraph id="HAA739031011C4639AE1ADBE3D1828A62"><enum>(B)</enum><text display-inline="yes-display-inline">conduct simultaneous examinations of each
insured depository institution, insured credit union, or other covered person
described in subsection (a), unless such institution requests examinations to
be conducted separately;</text>
</subparagraph><subparagraph id="HEC367E4C856845F2B765C984861D0EAD"><enum>(C)</enum><text>share each draft
report of examination with the other agency and permit the receiving agency a
reasonable opportunity (which shall not be less than a period of 30 days after
the date of receipt) to comment on the draft report before such report is made
final; and</text>
</subparagraph><subparagraph id="H42DC6620D980456D8C74FB0591FFB0F8"><enum>(D)</enum><text>prior to issuing a
final report of examination or taking supervisory action, take into
consideration concerns, if any, raised in the comments made by the other
agency.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H817CD0776C2D403889999BCF374D7786"><enum>(2)</enum><header>Coordination
with State bank supervisors</header><text>The Bureau shall pursue arrangements
and agreements with State bank supervisors to coordinate examinations,
consistent with paragraph (1).</text>
</paragraph><paragraph id="IDe690147969a546918655747cfd11870c"><enum>(3)</enum><header>Avoidance of
conflict in supervision</header>
<subparagraph id="ID1eac39fea9694a7e823b9f472cc3d039"><enum>(A)</enum><header>Request</header><text>If
the proposed supervisory determinations of the Bureau and a prudential
regulator (in this section referred to collectively as the
<quote>agencies</quote>) are conflicting, an insured depository institution,
insured credit union, or other covered person described in subsection (a) may
request the agencies to coordinate and present a joint statement of coordinated
supervisory action.</text>
</subparagraph><subparagraph id="IDa0618d6a719d40639970d70f63c32701"><enum>(B)</enum><header>Joint
statement</header><text>The agencies shall provide a joint statement under
subparagraph (A), not later than 30 days after the date of receipt of the
request of the insured depository institution, credit union, or covered person
described in subsection (a).</text>
</subparagraph></paragraph><paragraph id="ID2adce54268e54078aaade7d53922fe4a"><enum>(4)</enum><header>Appeals to
governing panel</header>
<subparagraph id="idD56C3D5A76C04C778F11F073EA8D0C28"><enum>(A)</enum><header>In
general</header><text>If the agencies do not resolve the conflict or issue a
joint statement required by subparagraph (B), or if either of the agencies
takes or attempts to take any supervisory action relating to the request for
the joint statement without the consent of the other agency, an insured
depository institution, insured credit union, or other covered person described
in subsection (a) may institute an appeal to a governing panel, as provided in
this subsection, not later than 30 days after the expiration of the period
during which a joint statement is required to be filed under paragraph
(3)(B).</text>
</subparagraph><subparagraph id="ID8c064af7cab148dd97cc8571c63bc962"><enum>(B)</enum><header>Composition of
governing panel</header><text>The governing panel for an appeal under this
paragraph shall be composed of—</text>
<clause id="ID5a1f4bf96fe14064a05c8bfe26f90ab8"><enum>(i)</enum><text>a
representative from the Bureau and a representative of the prudential
regulator, both of whom—</text>
<subclause id="ID69d890efd5b649569516e51a08024c91"><enum>(I)</enum><text>have
not participated in the material supervisory determinations under appeal;
and</text>
</subclause><subclause id="IDfdf07f1737c74b73a3ab17f13d481f46"><enum>(II)</enum><text>do
not directly or indirectly report to the person who participated materially in
the supervisory determinations under appeal; and</text>
</subclause></clause><clause id="IDed12e5f8f4284978a757c52d844f8df2"><enum>(ii)</enum><text>one
individual representative, to be determined on a rotating basis, from among the
Board of Governors, the Corporation, the National Credit Union Administration,
and the Office of the Comptroller of the Currency, other than any agency
involved in the subject dispute.</text>
</clause></subparagraph><subparagraph id="ID72c093dd7d13410f811a7059c27e51ca"><enum>(C)</enum><header>Conduct of
appeal</header><text>In an appeal under this paragraph—</text>
<clause id="ID153a5256f5c74474a8e3c97d47b99d69"><enum>(i)</enum><text>the
insured depository institution, insured credit union, or other covered person
described in subsection (a)—</text>
<subclause id="id3DE9A5EB7F5349FEB617C086B88800BB"><enum>(I)</enum><text>shall include in
its appeal all the facts and legal arguments pertaining to the matter;
and</text>
</subclause><subclause id="IDecf07dc4036b40db9274bf1d10a52b92"><enum>(II)</enum><text>may, through
counsel, employees, or representatives, appear before the governing panel in
person or by telephone; and</text>
</subclause></clause><clause id="ID22b7d470ebdd4eb1a2d04ff2511f3393"><enum>(ii)</enum><text>the
governing panel—</text>
<subclause id="id9BABA26AE4914058AA3E009D52F73A49"><enum>(I)</enum><text>may
request the insured depository institution, insured credit union, or other
covered person described in subsection (a), the Bureau, or the prudential
regulator to produce additional information relevant to the appeal; and</text>
</subclause><subclause id="ID06570a8ef2ab4c7b948efb878c55a91d"><enum>(II)</enum><text>by
a majority vote of its members, shall provide a final determination, in
writing, not later than 30 days after the date of filing of an informationally
complete appeal, or such longer period as the panel and the insured depository
institution, insured credit union, or other covered person described in
subsection (a) may jointly agree.</text>
</subclause></clause></subparagraph><subparagraph id="id0584AA29968548C6A34D4960D20039E0"><enum>(D)</enum><header>Public
availability of determinations</header><text>A governing panel shall publish
all information contained in a determination by the governing panel, with
appropriate redactions of information that would be subject to an exemption
from disclosure under section 552 of title 5, United States Code.</text>
</subparagraph><subparagraph id="ID14acac157f9e4cb1abe271d5ad58a210"><enum>(E)</enum><header>Prohibition
against retaliation</header><text>The Bureau and the prudential regulators
shall prescribe rules to provide safeguards from retaliation against the
insured depository institution, insured credit union, or other covered person
described in subsection (a) instituting an appeal under this paragraph, as well
as their officers and employees.</text>
</subparagraph><subparagraph id="ID9d3ddc55ee354f22bf8512bfdced53b5"><enum>(F)</enum><header>Limitation</header><text>The
process provided in this paragraph shall not apply to a determination by a
prudential regulator to appoint a conservator or receiver for an insured
depository institution or a liquidating agent for an insured credit union, as
the case may be, or a decision to take action pursuant to section 38 of the
Federal Deposit Insurance Act (12 U.S.C. 1831o) or section 212 of the Federal
Credit Union Act (112 U.S.C. 1790a), as applicable.</text>
</subparagraph><subparagraph id="IDe0305108622244ed97f1c1c7051fa03b"><enum>(G)</enum><header>Effect on other
authority</header><text>Nothing in this section shall modify or limit the
authority of the Bureau to interpret, or take enforcement action under, any
Federal consumer financial law.</text>
</subparagraph></paragraph></subsection></section><section id="ID971b05380e80478c9e85ba60e2fbf3a2"><enum>1026.</enum><header>Other banks,
savings associations, and credit unions</header>
<subsection id="IDe2a46cbe56df4b798d41df3b45848017"><enum>(a)</enum><header>Scope of
coverage</header><text>This section shall apply to any covered person that
is—</text>
<paragraph id="ID38c383266ff4460aa4189c9de954c35a"><enum>(1)</enum><text>an
insured depository institution with total assets of $10,000,000,000 or less;
or</text>
</paragraph><paragraph id="ID462ae74635d94677a7144164077e6e04"><enum>(2)</enum><text>an
insured credit union with total assets of $10,000,000,000 or less.</text>
</paragraph></subsection><subsection commented="no" id="id83FF6577E10E45B18E3284076BAB6B84"><enum>(b)</enum><header>Reports</header><text>The
Director may require reports from a person described in subsection (a), as
necessary to support the role of the Bureau in implementing Federal consumer
financial law, to support its examination activities under subsection (c), and
to assess and detect risks to consumers and consumer financial markets.</text>
<paragraph commented="no" id="IDe3270bb6733a486ebc32d6d2aabcf3c6"><enum>(1)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph commented="no" id="ID67235679ca1a4ca688a0b51b22419ce3"><enum>(A)</enum><text>reports
pertaining to a person described in subsection (a) that have been provided or
required to have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph commented="no" id="ID240e0a1d632f44cd8fb513b8e871210f"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID9e36917e4ac947b3b9f2cf6e2c004964"><enum>(2)</enum><header>Preservation of
authority</header><text>Nothing in this subsection may be construed as limiting
the authority of the Director from requiring from a person described in
subsection (a), as permitted under paragraph (1), information owned or under
the control of such person, regardless of whether such information is
maintained, stored, or processed by another person.</text>
</paragraph><paragraph commented="no" id="IDc8012984d4a842b680b2da94a23596ac"><enum>(3)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph></subsection><subsection commented="no" id="ID88dc2af98494486fb901aeef84851c29"><enum>(c)</enum><header>Examinations</header>
<paragraph commented="no" id="ID2fbd227c8d5e479b9729b4ab98341181"><enum>(1)</enum><header>In
general</header><text>The Bureau may, at its discretion, include examiners on a
sampling basis of the examinations performed by the prudential regulator of
persons described in subsection (a).</text>
</paragraph><paragraph commented="no" id="ID74e0b93ca41b42e0a3d586d913b4273c"><enum>(2)</enum><header>Agency
coordination</header><text>The prudential regulator shall—</text>
<subparagraph commented="no" id="idE22E2F162E8F489BB5503B98028B5F9D"><enum>(A)</enum><text>provide all
reports, records, and documentation related to the examination process for any
institution included in the sample referred to in paragraph (1) to the Bureau
on a timely and continual basis;</text>
</subparagraph><subparagraph commented="no" id="id829DFFDF87A643AC89E3B898C0AE54C0"><enum>(B)</enum><text>involve such
Bureau examiner in the entire examination process for such person; and</text>
</subparagraph><subparagraph commented="no" id="idC665DF60311A4901B3C50EB2CF3AB6EA"><enum>(C)</enum><text>consider input of
the Bureau concerning the scope of an examination, conduct of the examination,
the contents of the examination report, the designation of matters requiring
attention, and examination ratings.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idA3AB12962C8F4839B87DA98356FCCB45"><enum>(d)</enum><header>Enforcement</header>
<paragraph commented="no" id="ID9c756b460b1f470297fc5b6d15487cea"><enum>(1)</enum><header>In
general</header><text>Except for requiring reports under subsection (b), the
prudential regulator shall have exclusive authority to enforce compliance with
respect to a person described in subsection (a).</text>
</paragraph><paragraph commented="no" id="IDb0c2cb659e954531b035f326fb245645"><enum>(2)</enum><header>Coordination
with prudential regulator</header>
<subparagraph commented="no" id="IDc296a9bbbfbc47a2b567667e865a983d"><enum>(A)</enum><header>Referral</header><text>When
the Bureau has reason to believe that a person described in subsection (a) has
engaged in a material violation of a Federal consumer financial law, the Bureau
shall notify the prudential regulator in writing and recommend appropriate
action to respond.</text>
</subparagraph><subparagraph commented="no" id="ID8b01976166d94351b19db3894ebe194b"><enum>(B)</enum><header>Response</header><text>Upon
receiving a recommendation under subparagraph (A), the prudential regulator
shall provide a written response to the Bureau not later than 60 days
thereafter.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idF0468CDFA2D24467950E8F72893AA210"><enum>(e)</enum><header>Service
providers</header><text>A service provider to a substantial number of persons
described in subsection (a) shall be subject to the authority of the Bureau
under section 1025 to the same extent as if the Bureau were an appropriate
Federal bank agency under section 7(c) of the Bank Service Company Act (12
U.S.C. 1867(c)). When conducting any examination or requiring any report from a
service provider subject to this subsection, the Bureau shall coordinate with
the appropriate prudential regulator.</text>
</subsection></section><section id="IDa74bc0d50e074f2fbd7603e9d13cce74"><enum>1027.</enum><header>Limitations
on authorities of the Bureau; preservation of authorities</header>
<subsection id="ID64424d1b2d7c460daa494ab92bdba599"><enum>(a)</enum><header>Exclusion for
merchants, retailers, and other sellers of nonfinancial goods or
services</header>
<paragraph id="IDf479ac13a5e640c2aae554640f917248"><enum>(1)</enum><header>Sale or
brokerage of nonfinancial good or service</header><text>The Bureau may not
exercise any rulemaking, supervisory, enforcement or other authority under this
title with respect to a person who is a merchant, retailer, or seller of any
nonfinancial good or service and is engaged in the sale or brokerage of such
nonfinancial good or service, except to the extent that such person is engaged
in offering or providing any consumer financial product or service, or is
otherwise subject to any enumerated consumer law or any law for which
authorities are transferred under subtitle F or H.</text>
</paragraph><paragraph id="ID5d4130b2e6f24576ad4d61c9249cba9f"><enum>(2)</enum><header>Offering or
provision of certain consumer financial products or services in connection with
the sale or brokerage of nonfinancial good or service</header>
<subparagraph id="id21D73EC800AD457BB676172112C26264"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), and subject to
subparagraph (C), the Bureau may not exercise any rulemaking, supervisory,
enforcement, or other authority under this title with respect to a merchant,
retailer, or seller of nonfinancial goods or services who—</text>
<clause id="IDc8e78371cb274d7dbd27b03e309e1009"><enum>(i)</enum><text>extends
credit directly to a consumer, in a case in which the good or service being
provided is not itself a consumer financial product or service (other than
credit described in this subparagraph), exclusively for the purpose of enabling
that consumer to purchase such nonfinancial good or service directly from the
merchant, retailer, or seller;</text>
</clause><clause id="IDd178e312737a48398a1f4d4efd835684"><enum>(ii)</enum><text>directly, or
through an agreement with another person, collects debt arising from credit
extended as described in clause (i); or</text>
</clause><clause id="IDd3b0aa946fd4454c8d1b6dcfbc5add56"><enum>(iii)</enum><text>sells
or conveys debt described in clause (i) that is delinquent or otherwise in
default.</text>
</clause></subparagraph><subparagraph id="IDcb84f0425c3541518d46f560495323f5"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not apply to any credit transaction or collection of debt, other than
as described in subparagraph (C), arising from a transaction described in
subparagraph (A)—</text>
<clause id="ID603636288d0447ec9773f33910650f80"><enum>(i)</enum><text>in
which the merchant, retailer, or seller of nonfinancial goods or services
assigns, sells or otherwise conveys to another person such debt owed by the
consumer (except for a sale of debt that is delinquent or otherwise in default,
as described in subparagraph (A)(iii));</text>
</clause><clause id="ID8e9e807f83e048b981ba40e63bf78619"><enum>(ii)</enum><text>in
which the credit extended exceeds the market value of the nonfinancial good or
service provided, or the Bureau otherwise finds that the sale of the
nonfinancial good or service is done as a subterfuge, so as to evade or
circumvent the provisions of this title; or</text>
</clause><clause id="ID8150866e609d474ea9b510126435db11"><enum>(iii)</enum><text>in
which the merchant, retailer, or seller of nonfinancial goods or services
regularly extends credit and the credit is—</text>
<subclause id="IDb616e166d81d40768e7196d405049cb1"><enum>(I)</enum><text>subject to a
finance charge; or</text>
</subclause><subclause id="IDa8eaff6b30d3414899393f4ef04b32e2"><enum>(II)</enum><text>payable by
written agreement in more than 4 installments.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="id222FE19AD1CC4DB29531252377D41119"><enum>(C)</enum><header>Limitation</header><text>Notwithstanding
subparagraph (B), the Bureau may not exercise any rulemaking, supervisory,
enforcement, or other authority under this title with respect to a merchant,
retailer, or seller of nonfinancial goods or services that is not engaged
significantly in offering or providing consumer financial products or
services.</text>
</subparagraph><subparagraph id="ID33e0a632adad40da965e89786f862f8f"><enum>(D)</enum><header>Rule of
construction</header><text>No provision of this title may be construed as
modifying, limiting, or superseding the supervisory or enforcement authority of
the Federal Trade Commission or any other agency (other than the Bureau) with
respect to credit extended, or the collection of debt arising from such
extension, directly by a merchant or retailer to a consumer exclusively for the
purpose of enabling that consumer to purchase nonfinancial goods or services
directly from the merchant or retailer.</text>
</subparagraph></paragraph></subsection><subsection id="id7A94191EDEA34B32B28A9EFDF8B11664"><enum>(b)</enum><header>Exclusion for
real estate brokerage activities</header>
<paragraph id="idD55DB6183478491591BA1967BDF5EEC3"><enum>(1)</enum><header>Real estate
brokerage activities excluded</header><text>Without limiting subsection (a),
and except as permitted in paragraph (2), the Bureau may not exercise any
rulemaking, supervisory, enforcement, or other authority under this title with
respect to a person that is licensed or registered as a real estate broker or
real estate agent, in accordance with State law, to the extent that such
person—</text>
<subparagraph id="ID243cca8374e647a69f6d0c27f58d402b"><enum>(A)</enum><text>acts as a real
estate agent or broker for a buyer, seller, lessor, or lessee of real
property;</text>
</subparagraph><subparagraph id="IDf26668d0b4ca4cd18819b181f87ff117"><enum>(B)</enum><text>brings together
parties interested in the sale, purchase, lease, rental, or exchange of real
property;</text>
</subparagraph><subparagraph id="IDdcaa1a223fd34fb1a00102472224903e"><enum>(C)</enum><text>negotiates, on
behalf of any party, any portion of a contract relating to the sale, purchase,
lease, rental, or exchange of real property (other than in connection with the
provision of financing with respect to any such transaction); or</text>
</subparagraph><subparagraph id="ID537758bea6454f0b95afed0099ea4fe1"><enum>(D)</enum><text>offers to engage
in any activity, or act in any capacity, described in subparagraph (A), (B), or
(C).</text>
</subparagraph></paragraph><paragraph id="IDea3fabe6c050481794efc3b247e322f5"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) shall not apply to any person to the
extent that such person is engaged in the offering or provision of any consumer
financial product or service or is otherwise subject to any enumerated consumer
law or any law for which authorities are transferred under subtitle F or
H.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H056E70F7129E421C9F6EE68CC2FCBDFA"><enum>(c)</enum><header display-inline="yes-display-inline">Exclusion for manufactured home retailers
and modular home retailers</header>
<paragraph commented="no" display-inline="no-display-inline" id="H23BE29DD3BFD40C7BCA54929049B7E31"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director may not exercise any
rulemaking, supervisory, enforcement, or other authority over a person to the
extent that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id420198A0A7E649ECB8CD0AA229A27E31"><enum>(A)</enum><text display-inline="yes-display-inline">such person is not described in paragraph
(2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA323B9BB117B4E89863FDDCF990AF919"><enum>(B)</enum><text display-inline="yes-display-inline">such person—</text>
<clause commented="no" display-inline="no-display-inline" id="id65F9B9747A3043DD80179CE1624D9E42"><enum>(i)</enum><text display-inline="yes-display-inline">acts as an agent or broker for a buyer or
seller of a manufactured home or a modular home;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H889E6126FD7347589A323F61F9C18C48"><enum>(ii)</enum><text display-inline="yes-display-inline">facilitates the purchase by a consumer of a
manufactured home or modular home, by negotiating the purchase price or terms
of the sales contract (other than providing financing with respect to such
transaction); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3665691C991440C2935CD3035EEB7A4E"><enum>(iii)</enum><text display-inline="yes-display-inline">offers to engage in any activity described
in clause (i) or (ii).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H960F479D0FBA4EF4A7F05A64AD9B8B28"><enum>(2)</enum><header display-inline="yes-display-inline">Description of activities</header><text display-inline="yes-display-inline">A person is described in this paragraph to
the extent that such person is engaged in the offering or provision of any
consumer financial product or service or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFEADA82CB1EC42759CD8D3C10D322291"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDB18DA97D32F46E4A4F331E458D8AF29"><enum>(A)</enum><header display-inline="yes-display-inline">Manufactured home</header><text display-inline="yes-display-inline">The term <term>manufactured home</term> has
the same meaning as in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB2D2F9803475452794DC8AB24CB32D4E"><enum>(B)</enum><header display-inline="yes-display-inline">Modular home</header><text display-inline="yes-display-inline">The term <term>modular home</term> means a
house built in a factory in 2 or more modules that meet the State or local
building codes where the house will be located, and where such modules are
transported to the building site, installed on foundations, and
completed.</text>
</subparagraph></paragraph></subsection><subsection id="IDf2cc820f427949cd89e33752ac4c82e8"><enum>(d)</enum><header>Exclusion for
accountants and tax preparers</header>
<paragraph id="ID90b75661d2d3435ebac345dbaa29b3cd"><enum>(1)</enum><header>In
general</header><text>Except as permitted in paragraph (2), the Bureau may not
exercise any rulemaking, supervisory, enforcement, or other authority
over—</text>
<subparagraph id="IDbacc5115e86840f798633152b27c4106"><enum>(A)</enum><text>any person that
is a certified public accountant, permitted to practice as a certified public
accounting firm, or certified or licensed for such purpose by a State, or any
individual who is employed by or holds an ownership interest with respect to a
person described in this subparagraph, when such person is performing or
offering to perform—</text>
<clause id="idCFF52FB4869649F8813E7B813F09A1D1"><enum>(i)</enum><text>customary and
usual accounting activities, including the provision of accounting, tax,
advisory, or other services that are subject to the regulatory authority of a
State board of accountancy or a Federal authority; or</text>
</clause><clause id="id80A54C2CAA65459CA6586B8F996F1F11"><enum>(ii)</enum><text>other
services that are incidental to such customary and usual accounting activities,
to the extent that such incidental services are not offered or provided—</text>
<subclause id="id43D58D0E9A664D1CA8B3E2BE6D05B79A"><enum>(I)</enum><text>by
the person separate and apart from such customary and usual accounting
activities; or</text>
</subclause><subclause id="idBA715EE0D37B43939263CC51E2B37699"><enum>(II)</enum><text>to
consumers who are not receiving such customary and usual accounting activities;
or</text>
</subclause></clause></subparagraph><subparagraph id="IDf123c13147364032a827f0a44a2c5d39"><enum>(B)</enum><text>any person, other
than a person described in subparagraph (A) that performs income tax
preparation activities for consumers.</text>
</subparagraph></paragraph><paragraph id="ID0cfd8b2d61a3476a85c23bbf9bd35cef"><enum>(2)</enum><header>Description of
activities</header>
<subparagraph id="ID1fcfc24d8ad349099c79060f5e702539"><enum>(A)</enum><header>In
general</header><text>Paragraph (1) shall not apply to any person described in
paragraph (1)(A) or (1)(B) to the extent that such person is engaged in any
activity which is not a customary and usual accounting activity described in
paragraph (1)(A) or incidental thereto but which is the offering or provision
of any consumer financial product or service, except to the extent that a
person described in paragraph (1)(A) is engaged in an activity which is a
customary and usual accounting activity described in paragraph (1)(A), or
incidental thereto.</text>
</subparagraph><subparagraph id="IDd85f08b040c94c8abe6c030dd5312d7a"><enum>(B)</enum><header>Not a customary
and usual accounting activity</header><text>For purposes of this subsection,
extending or brokering credit is not a customary and usual accounting activity,
or incidental thereto.</text>
</subparagraph><subparagraph id="ID5b2a454cfb3d4bbbb28653d234536dcb"><enum>(C)</enum><header>Rule of
construction</header><text>For purposes of subparagraphs (A) and (B), a person
described in paragraph (1)(A) shall not be deemed to be extending credit, if
such person is only extending credit directly to a consumer, exclusively for
the purpose of enabling such consumer to purchase services described in clause
(i) or (ii) of paragraph (1)(A) directly from such person, and such credit
is—</text>
<clause id="ID8c5f3136c8e64b5187c00544efc95fc6"><enum>(i)</enum><text>not
subject to a finance charge; and</text>
</clause><clause id="IDd417ea3979b94055bf9776e8c07c9710"><enum>(ii)</enum><text>not
payable by written agreement in more than 4 installments.</text>
</clause></subparagraph><subparagraph id="IDa893616c63db4001a3d69ffe49946274"><enum>(D)</enum><header>Other
limitations</header><text>Paragraph (1) does not apply to any person described
in paragraph (1)(A) or (1)(B) that is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</subparagraph></paragraph></subsection><subsection id="ID225dc031d90e4f3791daf34de86fb2bc"><enum>(e)</enum><header>Exclusion for
attorneys</header>
<paragraph id="IDc2bac4648df8462abf9d595f7b39406e"><enum>(1)</enum><header>In
general</header><text>The Bureau may not exercise any authority to conduct
examinations of an attorney licensed by a State, to the extent that the
attorney is engaged in the practice of law under the laws of such State.</text>
</paragraph><paragraph id="ID068e28bd25d141e7992cf61ba5367714"><enum>(2)</enum><header>Exception for
enumerated consumer laws and transferred authorities</header><text>Paragraph
(1) shall not apply to an attorney who is engaged in the offering or provision
of any consumer financial product or service, or is otherwise subject to any
enumerated consumer law or any law for which authorities are transferred under
subtitle F or H.</text>
</paragraph></subsection><subsection id="idBE285D6497134556995BBE20E16BB279"><enum>(f)</enum><header>Exclusion for
persons regulated by a State insurance regulator</header>
<paragraph id="idD5A9E6621E5046F2BAF43C93601D6D2F"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of any State insurance regulator
to adopt rules, initiate enforcement proceedings, or take any other action with
respect to a person regulated by a State insurance regulator. Except as
provided in paragraph (2), the Bureau shall have no authority to exercise any
power to enforce this title with respect to a person regulated by a State
insurance regulator.</text>
</paragraph><paragraph id="idBA8A33272D2348DD991BB979E0BD5995"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) does not apply to any person described
in such paragraph to the extent that such person is engaged in the offering or
provision of any consumer financial product or service or is otherwise subject
to any enumerated consumer law or any law for which authorities are transferred
under subtitle F or H.</text>
</paragraph></subsection><subsection id="IDa26ddc80e6db44cbb39b889ed9ab118b"><enum>(g)</enum><header>Exclusion for
employee benefit and compensation plans and certain other arrangements under
the Internal Revenue Code of 1986</header>
<paragraph id="ID7be45b54f8d744f9b2b84b28b0d7e004"><enum>(1)</enum><header>Preservation of
authority of other agencies</header><text>No provision of this title shall be
construed as altering, amending, or affecting the authority of the Secretary of
the Treasury, the Secretary of Labor, or the Commissioner of Internal Revenue
to adopt regulations, initiate enforcement proceedings, or take any actions
with respect to any specified plan or arrangement.</text>
</paragraph><paragraph id="ID5f02c1006e4141fa8ce6f51b0b1b34de"><enum>(2)</enum><header>Activities not
constituting the offering or provision of any consumer financial product or
service</header><text>For purposes of this title, a person shall not be treated
as having engaged in the offering or provision of any consumer financial
product or service solely because such person is 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 id="ID563aad119367455ca45950f3aedb8d9c"><enum>(3)</enum><header>Limitation on
bureau authority</header>
<subparagraph id="IDe0e488386c7842228403e7af1a36da80"><enum>(A)</enum><header>In
general</header><text>Except as provided under subparagraphs (B) and (C), the
Bureau may not exercise any rulemaking or enforcement authority with respect to
products or services that relate to any specified plan or arrangement.</text>
</subparagraph><subparagraph id="IDcc9d2bea4268461b814ae44e24a18494"><enum>(B)</enum><header>Bureau action
only pursuant to agency request</header><text>The Secretary and the Secretary
of Labor may jointly issue a written request to the Bureau regarding
implementation of appropriate consumer protection standards under this title
with respect to the provision of services relating to any specified plan or
arrangement. Subject to a request made under this subparagraph, the Bureau may
exercise rulemaking authority, and may act to enforce a rule prescribed
pursuant to such request, in accordance with the provisions of this title. A
request made by the Secretary and the Secretary of Labor under this
subparagraph shall describe the basis for, and scope of, appropriate consumer
protection standards to be implemented under this title with respect to the
provision of services relating to any specified plan or arrangement.</text>
</subparagraph><subparagraph id="ID41cda247d63f4cfc90e0ab1bfaaed5fd"><enum>(C)</enum><header>Description of
products or services</header><text>To the extent that a person engaged in
providing products or services relating to any specified plan or arrangement is
subject to any enumerated consumer law or any law for which authorities are
transferred under subtitle F or H, subparagraph (A) shall not apply with
respect to that law.</text>
</subparagraph></paragraph><paragraph id="ID88595de3bb2d4dd59967dadaccbec811"><enum>(4)</enum><header>Specified plan
or arrangement</header><text>For purposes of this subsection, the term
<quote>specified plan or arrangement</quote> means any plan, account, or
arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A,
529, or 530 of the Internal Revenue Code of 1986, or any employee benefit or
compensation plan or arrangement, including a plan that is subject to title I
of the Employee Retirement Income Security Act of 1974.</text>
</paragraph></subsection><subsection id="IDf71d60d9b74d4dbe953d45c6f08bd5fa"><enum>(h)</enum><header>Persons
regulated by a State securities commission</header>
<paragraph id="IDfcbd38f1ee93430892013dca89aa7592"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of any securities commission (or
any agency or office performing like functions) of any State to adopt rules,
initiate enforcement proceedings, or take any other action with respect to a
person regulated by any securities commission (or any agency or office
performing like functions) of any State. Except as permitted in paragraph (2)
and subsection (f), the Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated by any securities
commission (or any agency or office performing like functions) of any State,
but only to the extent that the person acts in such regulated capacity.</text>
</paragraph><paragraph id="IDe541c16ab4ab4f7f9b0479d76486ffdf"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) shall not apply to any person to the
extent such person is engaged in the offering or provision of any consumer
financial product or service, or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</paragraph></subsection><subsection id="ID8691877c4ebf46ca8a18a6d684894af5"><enum>(i)</enum><header>Exclusion for
persons regulated by the commission</header>
<paragraph id="IDf2db6287ab4d483795143dfb38d7abca"><enum>(1)</enum><header>In
general</header><text>No provision of this title may be construed as altering,
amending, or affecting the authority of the Commission to adopt rules, initiate
enforcement proceedings, or take any other action with respect to a person
regulated by the Commission. The Bureau shall have no authority to exercise any
power to enforce this title with respect to a person regulated by the
Commission.</text>
</paragraph><paragraph id="ID4f06cc931be841a081958482cb4539cb"><enum>(2)</enum><header>Consultation
and coordination</header><text>Notwithstanding paragraph (1), the Commission
shall consult and coordinate, where feasible, with the Bureau with respect to
any rule (including any advance notice of proposed rulemaking) regarding an
investment product or service that is the same type of product as, or that
competes directly with, a consumer financial product or service that is subject
to the jurisdiction of the Bureau under this title or under any other law. In
carrying out this paragraph, the agencies shall negotiate an agreement to
establish procedures for such coordination, including procedures for providing
advance notice to the Bureau when the Commission is initiating a
rulemaking.</text>
</paragraph></subsection><subsection id="ID164ef976ef5e4b5e9c272ec92918ff6a"><enum>(j)</enum><header>Exclusion for
persons regulated by the commodity futures trading commission</header>
<paragraph id="ID7de9858435c44aa7bcc1ce0eee0ab9fe"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of the Commodity Futures Trading
Commission to adopt rules, initiate enforcement proceedings, or take any other
action with respect to a person regulated by the Commodity Futures Trading
Commission. The Bureau shall have no authority to exercise any power to enforce
this title with respect to a person regulated by the Commodity Futures Trading
Commission.</text>
</paragraph><paragraph id="ID784867517d324f6ab615d7da64730fa6"><enum>(2)</enum><header>Consultation
and coordination</header><text>Notwithstanding paragraph (1), the Commodity
Futures Trading Commission shall consult and coordinate with the Bureau with
respect to any rule (including any advance notice of proposed rulemaking)
regarding a product or service that is the same type of product as, or that
competes directly with, a consumer financial product or service that is subject
to the jurisdiction of the Bureau under this title or under any other
law.</text>
</paragraph></subsection><subsection id="id8691FD88B47E459283E97507FEAA655E"><enum>(k)</enum><header>Exclusion for
Persons regulated by the farm credit administration</header>
<paragraph id="ID0ba2e94028f74f018528c9bbd46561ae"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of the Farm Credit
Administration to adopt rules, initiate enforcement proceedings, or take any
other action with respect to a person regulated by the Farm Credit
Administration. The Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated by the Farm Credit
Administration.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4975cf8206264db389b97446020f7289"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <quote>person regulated by the Farm
Credit Administration</quote> means any Farm Credit System institution that is
chartered and subject to the provisions of the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.).</text>
</paragraph></subsection><subsection id="id79FC8C7982094EEFABB2E5E415C8AC2E"><enum>(l)</enum><header>Exclusion for
activities relating to charitable contributions</header>
<paragraph id="idA1CC60DC3AA34D719F0666021EE89F78"><enum>(1)</enum><header>In
general</header><text>The Director and the Bureau may not exercise any
rulemaking, supervisory, enforcement, or other authority, including authority
to order penalties, over any activities related to the solicitation or making
of voluntary contributions to a tax-exempt organization as recognized by the
Internal Revenue Service, by any agent, volunteer, or representative of such
organizations to the extent the organization, agent, volunteer, or
representative thereof is soliciting or providing advice, information,
education, or instruction to any donor or potential donor relating to a
contribution to the organization.</text>
</paragraph><paragraph id="idC5962B4EF8CA4227956F46B0DA342775"><enum>(2)</enum><header>Limitation</header><text>The
exclusion in paragraph (1) does not apply to other activities not described in
paragraph (1) that are the offering or provision of any consumer financial
product or service, or are otherwise subject to any enumerated consumer law or
any law for which authorities are transferred under subtitle F or H.</text>
</paragraph></subsection><subsection id="IDf59fc306d42e47bfb1e16e0803e4faf8"><enum>(m)</enum><header>Insurance</header><text>The
Bureau may not define as a financial product or service, by regulation or
otherwise, engaging in the business of insurance.</text>
</subsection><subsection id="ID8538750f205542979e463fa3cd0103d5"><enum>(n)</enum><header>Limited
authority of the bureau</header><text>Notwithstanding subsections (a) through
(h) and (l), a person subject to or described in one or more of such
subsections—</text>
<paragraph commented="no" id="ID072c17c6f84a499586dea198614cafba"><enum>(1)</enum><text>may be a service
provider; and</text>
</paragraph><paragraph id="IDb281f80b31fc47cd93708184a8e3deed"><enum>(2)</enum><text>may
be subject to requests from, or requirements imposed by, the Bureau regarding
information in order to carry out the responsibilities and functions of the
Bureau and in accordance with section 1022, 1052, or 1053.</text>
</paragraph></subsection><subsection id="ID9a64cae1e2234c4488d03495ad94152f"><enum>(o)</enum><header>No authority To
impose usury limit</header><text>No provision of this title shall be construed
as conferring authority on the Bureau to establish a usury limit applicable to
an extension of credit offered or made by a covered person to a consumer,
unless explicitly authorized by law.</text>
</subsection><subsection id="ID066df33095ad41bfa5f01e4efd7147e4"><enum>(p)</enum><header>Attorney
general</header><text>No provision of this title, including section 1024(c)(1),
shall affect the authorities of the Attorney General under otherwise applicable
provisions of law.</text>
</subsection><subsection id="ID70464ead3f8c43baaa736ff3df9ff002"><enum>(q)</enum><header>Secretary of
the treasury</header><text>No provision of this title shall affect the
authorities of the Secretary, including with respect to prescribing rules,
initiating enforcement proceedings, or taking other actions with respect to a
person that performs income tax preparation activities for consumers.</text>
</subsection><subsection id="ID6d9fefc83d524c7ca73fb1e7db11c19c"><enum>(r)</enum><header>Deposit
insurance and share insurance</header><text>Nothing in this title shall affect
the authority of the Corporation under the Federal Deposit Insurance Act or the
National Credit Union Administration Board under the Federal Credit Union Act
as to matters related to deposit insurance and share insurance,
respectively.</text>
</subsection></section><section id="ID9e6e6eadace6404a8bcc9cbf65d3721e"><enum>1028.</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header>
<subsection id="IDa75a2d9b74f34e45b9518545485e2439"><enum>(a)</enum><header>Study and
report</header><text>The Bureau shall conduct a study of, and shall provide a
report to Congress concerning, the use of agreements providing for arbitration
of any future dispute between covered persons and consumers in connection with
the offering or providing of consumer financial products or services.</text>
</subsection><subsection id="id94E358CFDFD9494FB301814C8EDFABCB"><enum>(b)</enum><header>Further
authority</header><text>The Bureau, by regulation, may prohibit or impose
conditions or limitations on the use of an agreement between a covered person
and a consumer for a consumer financial product or service providing for
arbitration of any future dispute between the parties, if the Bureau finds that
such a prohibition or imposition of conditions or limitations is in the public
interest and for the protection of consumers. The findings in such rule shall
be consistent with the study conducted under subsection (a).</text>
</subsection><subsection id="idA9D9F6FC927C46C4A0A574158572E1F5"><enum>(c)</enum><header>Limitation</header><text>The
authority described in subsection (b) may not be construed to prohibit or
restrict a consumer from entering into a voluntary arbitration agreement with a
covered person after a dispute has arisen.</text>
</subsection><subsection id="ID79bbed96799342f6a44afd7a03e4a224"><enum>(d)</enum><header>Effective
date</header><text>Notwithstanding any other provision of law, any regulation
prescribed by the Bureau 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 Bureau.</text>
</subsection></section><section id="ID9de2c19a62c74535bca0bbd537dfa548"><enum>1029.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date.</text>
</section></subtitle><subtitle id="id5788D71B4490410685993B0EDC1C8218"><enum>C</enum><header>Specific Bureau
Authorities</header>
<section id="idFF83FC5C598344A2891985A7FF6ADF73"><enum>1031.</enum><header>Prohibiting
unfair, deceptive, or abusive acts or practices</header>
<subsection id="IDa544a60cf31e4bd6be9354f823a4bdb0"><enum>(a)</enum><header>In
general</header><text>The Bureau may take any action authorized under subtitle
E to prevent a covered person or service provider from committing or engaging
in an unfair, deceptive, or abusive act or practice under Federal law in
connection with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial product or
service.</text>
</subsection><subsection id="ID1cbe54210f5e4cc9aa21feaa04b7b3ee"><enum>(b)</enum><header>Rulemaking</header><text>The
Bureau may prescribe rules applicable to a covered person or service provider
identifying as unlawful unfair, deceptive, or abusive acts or practices in
connection with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial product or service.
Rules under this section may include requirements for the purpose of preventing
such acts or practices.</text>
</subsection><subsection id="IDe8ac99f59fa7466fbf1cfce993c6563a"><enum>(c)</enum><header>Unfairness</header>
<paragraph id="id9557CD6F6B794C84B68FC02362286CD8"><enum>(1)</enum><header>In
general</header><text>The Bureau shall have no authority under this section to
declare an act or practice in connection with a transaction with a consumer for
a consumer financial product or service, or the offering of a consumer
financial product or service, to be unlawful on the grounds that such act or
practice is unfair, unless the Bureau has a reasonable basis to conclude
that—</text>
<subparagraph id="id80111E6F03B64A5884F78C623DF18346"><enum>(A)</enum><text>the act or
practice causes or is likely to cause substantial injury to consumers which is
not reasonably avoidable by consumers; and</text>
</subparagraph><subparagraph id="id316610CE7D174344B264D6FE2EF4560B"><enum>(B)</enum><text>such substantial
injury is not outweighed by countervailing benefits to consumers or to
competition.</text>
</subparagraph></paragraph><paragraph id="idD19E7CC31F5348E78213B37131CA2466"><enum>(2)</enum><header>Consideration
of public policies</header><text>In determining whether an act or practice is
unfair, the Bureau may consider established public policies as evidence to be
considered with all other evidence. Such public policy considerations may not
serve as a primary basis for such determination.</text>
</paragraph></subsection><subsection id="IDd6332f40d8114c339aa4e3f89d951760"><enum>(d)</enum><header>Abusive</header><text>The
Bureau shall have no authority under this section to declare an act or practice
abusive in connection with the provision of a consumer financial product or
service, unless the act or practice—</text>
<paragraph id="ID699ca429f7154d18af5b6aff4b21e37f"><enum>(1)</enum><text>materially
interferes with the ability of a consumer to understand a term or condition of
a consumer financial product or service; or</text>
</paragraph><paragraph commented="no" id="IDd5337c64d30d43328a7229b01143c763"><enum>(2)</enum><text>takes
unreasonable advantage of—</text>
<subparagraph commented="no" id="idAF9C7123EE1D46229A2E004DEDE1B4FC"><enum>(A)</enum><text>a lack of
understanding on the part of the consumer of the material risks, costs, or
conditions of the product or service;</text>
</subparagraph><subparagraph commented="no" id="id3F85699CB43C4A22957BC47D88023C6F"><enum>(B)</enum><text>the inability of
the consumer to protect the interests of the consumer in selecting or using a
consumer financial product or service; or</text>
</subparagraph><subparagraph commented="no" id="idA3B4E3C6E3ED4E648DF905473CA7635F"><enum>(C)</enum><text>the reasonable
reliance by the consumer on a covered person to act in the interests of the
consumer.</text>
</subparagraph></paragraph></subsection><subsection id="ID64d75598ed284b739c310da1e491b752"><enum>(e)</enum><header>Consultation</header><text>In
prescribing rules under this section, the Bureau shall consult with the Federal
banking agencies, or other Federal agencies, as appropriate, concerning the
consistency of the proposed rule with prudential, market, or systemic
objectives administered by such agencies.</text>
</subsection></section><section id="ID8df3019826214c00bce58c65f21b86e2"><enum>1032.</enum><header>Disclosures</header>
<subsection id="ID370569a747604f249c5df52f3e109d1f"><enum>(a)</enum><header>In
general</header><text>The Bureau may prescribe rules to ensure that the
features of any consumer financial product or service, both initially and over
the term of the product or service, are fully, accurately, and effectively
disclosed to consumers in a manner that permits consumers to understand the
costs, benefits, and risks associated with the product or service, in light of
the facts and circumstances.</text>
</subsection><subsection id="ID3b240791b86b4d93804c36dbececa82d"><enum>(b)</enum><header>Model
disclosures</header>
<paragraph id="ID0175c3135958495a99338286d2b54e9e"><enum>(1)</enum><header>In
general</header><text>Any final rule prescribed by the Bureau under this
section requiring disclosures may include a model form that may be used at the
option of the covered person for provision of the required disclosures.</text>
</paragraph><paragraph id="IDdbaa24137863419991020b28d215a547"><enum>(2)</enum><header>Format</header><text>A
model form issued pursuant to paragraph (1) shall contain a clear and
conspicuous disclosure that, at a minimum—</text>
<subparagraph id="IDc76d1be06472476db5744896fc4324e2"><enum>(A)</enum><text>uses plain
language comprehensible to consumers;</text>
</subparagraph><subparagraph id="ID7baa68bbca714ce58a2519677a26cc53"><enum>(B)</enum><text>contains a clear
format and design, such as an easily readable type font; and</text>
</subparagraph><subparagraph id="IDafdd07564081481fb249404ec20eb336"><enum>(C)</enum><text>succinctly
explains the information that must be communicated to the consumer.</text>
</subparagraph></paragraph><paragraph id="IDabf02ec6e5aa46c78fbae9f35e75f939"><enum>(3)</enum><header>Consumer
testing</header><text>Any model form issued pursuant to this subsection shall
be validated through consumer testing.</text>
</paragraph></subsection><subsection id="ID92b06122366644e491601f76310f21d9"><enum>(c)</enum><header>Basis for
rulemaking</header><text>In prescribing rules under this section, the Bureau
shall consider available evidence about consumer awareness, understanding of,
and responses to disclosures or communications about the risks, costs, and
benefits of consumer financial products or services.</text>
</subsection><subsection id="IDd3b0549e174945db91357561e73da09f"><enum>(d)</enum><header>Safe
harbor</header><text>Any covered person that uses a model form included with a
rule issued under this section shall be deemed to be in compliance with the
disclosure requirements of this section with respect to such model form.</text>
</subsection><subsection id="ID411d65e4f581458e980306b67297c957"><enum>(e)</enum><header>Trial
disclosure programs</header>
<paragraph id="ID271388d6dce84e668aeb7ab2daa3d54e"><enum>(1)</enum><header>In
general</header><text>The Bureau may permit a covered person to conduct a trial
program that is limited in time and scope, subject to specified standards and
procedures, for the purpose of providing trial disclosures to consumers that
are designed to improve upon any model form issued pursuant to subsection
(b)(1), or any other model form issued to implement an enumerated statute, as
applicable.</text>
</paragraph><paragraph id="ID380c0ba15bb546088bf61268a2468395"><enum>(2)</enum><header>Safe
harbor</header><text>The standards and procedures issued by the Bureau shall be
designed to encourage covered persons to conduct trial disclosure programs. For
the purposes of administering this subsection, the Bureau may establish a
limited period during which a covered person conducting a trial disclosure
program shall be deemed to be in compliance with, or may be exempted from, a
requirement of a rule or an enumerated consumer law.</text>
</paragraph><paragraph id="IDddd60815b65242af944ddafbdfcbbd56"><enum>(3)</enum><header>Public
disclosure</header><text>The rules of the Bureau shall provide for public
disclosure of trial disclosure programs, which public disclosure may be
limited, to the extent necessary to encourage covered persons to conduct
effective trials.</text>
</paragraph></subsection><subsection id="ID1a58797066874f3685b91947c5d0a69e"><enum>(f)</enum><header>Combined
mortgage loan disclosure</header><text>Not later than 1 year after the
designated transfer date, the Bureau shall propose for public comment rules and
model disclosures that combine the disclosures required under the Truth in
Lending Act and the Real Estate Settlement Procedures Act of 1974, into a
single, integrated disclosure for mortgage loan transactions covered by those
laws, unless the Bureau determines that any proposal issued by the Board of
Governors and the Secretary of Housing and Urban Development carries out the
same purpose.</text>
</subsection></section><section id="ID497461e358f04ddd8ec1b8d3b944b389"><enum>1033.</enum><header>Consumer
rights to access information</header>
<subsection id="ID0bf8736efe5047fd958f96d23a623bec"><enum>(a)</enum><header>In
general</header><text>Subject to rules prescribed by the Bureau, a covered
person shall make available to a consumer, upon request, information in the
control or possession of the covered person concerning the consumer financial
product or service that the consumer obtained from such covered person,
including information relating to any transaction, series of transactions, or
to the account including costs, charges and usage data. The information shall
be made available in an electronic form usable by consumers.</text>
</subsection><subsection id="ID4c023e3cc7474c6ca2cf0f95aabca44f"><enum>(b)</enum><header>Exceptions</header><text>A
covered person may not be required by this section to make available to the
consumer—</text>
<paragraph id="ID9d8e739100a34725af681bce634067e8"><enum>(1)</enum><text>any
confidential commercial information, including an algorithm used to derive
credit scores or other risk scores or predictors;</text>
</paragraph><paragraph id="ID56de86c1f3a9497eaf96f0c536c2ea56"><enum>(2)</enum><text>any
information collected by the covered person for the purpose of preventing fraud
or money laundering, or detecting, or making any report regarding other
unlawful or potentially unlawful conduct;</text>
</paragraph><paragraph id="ID828fa9bc20f240a7988b04f51d3833a7"><enum>(3)</enum><text>any
information required to be kept confidential by any other provision of law;
or</text>
</paragraph><paragraph id="ID06be4bafc6ea473e967950c3595e1d04"><enum>(4)</enum><text>any
information that the covered person cannot retrieve in the ordinary course of
its business with respect to that information.</text>
</paragraph></subsection><subsection id="ID1c000da2c20e4e848bdaa14a1eb10707"><enum>(c)</enum><header>No duty To
maintain records</header><text>Nothing in this section shall be construed to
impose any duty on a covered person to maintain or keep any information about a
consumer.</text>
</subsection><subsection id="ID1a4814b1737741afb090e73cb27d7b33"><enum>(d)</enum><header>Standardized
formats for data</header><text>The Bureau, by rule, shall prescribe standards
applicable to covered persons to promote the development and use of
standardized formats for information, including through the use of machine
readable files, to be made available to consumers under this section.</text>
</subsection><subsection id="IDe85218275cb344bbaa2fed1246cacb04"><enum>(e)</enum><header>Consultation</header><text>The
Bureau shall, when prescribing any rule under this section, consult with the
Federal banking agencies and the Federal Trade Commission to ensure that the
rules—</text>
<paragraph id="IDc1bd2afe52b84c159c413066ce893a18"><enum>(1)</enum><text>impose
substantively similar requirements on covered persons;</text>
</paragraph><paragraph id="IDd4ab0aeebdfd4762a846c2b9e01504b6"><enum>(2)</enum><text>take
into account conditions under which covered persons do business both in the
United States and in other countries; and</text>
</paragraph><paragraph id="ID04f13b17e38249ee845b514ddb6a5bda"><enum>(3)</enum><text>do
not require or promote the use of any particular technology in order to develop
systems for compliance.</text>
</paragraph></subsection></section><section id="ID7307cd45b05a409d8ac6662bd286f455"><enum>1034.</enum><header>Response to
consumer complaints and inquiries</header>
<subsection id="IDf63e8f5146db4117bb1edec1892b71ab"><enum>(a)</enum><header>Timely
regulator response to consumers</header><text>The Bureau shall establish, in
consultation with the appropriate Federal regulatory agencies, reasonable
procedures to provide a timely response to consumers, in writing where
appropriate, to complaints against, or inquiries concerning, a covered person,
including—</text>
<paragraph id="ID68090bdd9937437c9901fdf02c75da5a"><enum>(1)</enum><text>all
steps that have been taken by the regulator in response to the complaint or
inquiry of the consumer;</text>
</paragraph><paragraph id="IDaafcbf8ea86046ea8453651b42b28bcf"><enum>(2)</enum><text>any
responses received by the regulator from the covered person; and</text>
</paragraph><paragraph id="IDad2f7c8acfa04c2496209556c6b4058d"><enum>(3)</enum><text>any
follow-up actions or planned follow-up actions by the regulator in response to
the complaint or inquiry of the consumer.</text>
</paragraph></subsection><subsection id="IDe669558220b146828b04f07e82d3c035"><enum>(b)</enum><header>Timely response
to regulator by covered person</header><text>A covered person subject to
supervision and primary enforcement by the Bureau pursuant to section 1025
shall provide a timely response, in writing where appropriate, to the Bureau,
the prudential regulators, and any other agency having jurisdiction over such
covered person concerning a consumer complaint or inquiry, including—</text>
<paragraph id="ID96a5665b73b643398fca27ade0e86b0f"><enum>(1)</enum><text>steps that have
been taken by the covered person to respond to the complaint or inquiry of the
consumer;</text>
</paragraph><paragraph id="IDe44d105f324d4c72abd82f35a535447c"><enum>(2)</enum><text>responses
received by the covered person from the consumer; and</text>
</paragraph><paragraph id="ID50f8e911a21b4d7d9bbe6c4a5e072056"><enum>(3)</enum><text>follow-up actions
or planned follow-up actions by the covered person to respond to the complaint
or inquiry of the consumer.</text>
</paragraph></subsection><subsection id="IDe620f4c05cff4dc58ec47a41fc785947"><enum>(c)</enum><header>Provision of
information to consumers</header>
<paragraph id="ID9be94f55114f4ca0a2c8ac377b7bd7fc"><enum>(1)</enum><header>In
general</header><text>A covered person subject to supervision and primary
enforcement by the Bureau pursuant to section 1025 shall, in a timely manner,
comply with a consumer request for information in the control or possession of
such covered person concerning the consumer financial product or service that
the consumer obtained from such covered person, including supporting written
documentation, concerning the account of the consumer.</text>
</paragraph><paragraph id="IDb0fd48995fe74d689cddf3d2606a753a"><enum>(2)</enum><header>Exceptions</header><text>A
covered person subject to supervision and primary enforcement by the Bureau
pursuant to section 1025, a prudential regulator, and any other agency having
jurisdiction over a covered person subject to supervision and primary
enforcement by the Bureau pursuant to section 1025 may not be required by this
section to make available to the consumer—</text>
<subparagraph id="ID9c91ed4b8417476bb4082247637b4b98"><enum>(A)</enum><text>any confidential
commercial information, including an algorithm used to derive credit scores or
other risk scores or predictors;</text>
</subparagraph><subparagraph id="ID6c37355a2c6c4fd79af17ceeb170c347"><enum>(B)</enum><text>any information
collected by the covered person for the purpose of preventing fraud or money
laundering, or detecting or making any report regarding other unlawful or
potentially unlawful conduct;</text>
</subparagraph><subparagraph id="IDe2dbb2836f234e4ba0f9a7660aa3afb1"><enum>(C)</enum><text>any information
required to be kept confidential by any other provision of law; or</text>
</subparagraph><subparagraph id="ID080d55011d1a4498bfc18e8512b1a849"><enum>(D)</enum><text>any nonpublic or
confidential information, including confidential supervisory
information.</text>
</subparagraph></paragraph></subsection><subsection id="ID152075ff2e4747dd87c589354102a944"><enum>(d)</enum><header>Agreements with
other agencies</header><text>The Bureau shall enter into a memorandum of
understanding with any affected Federal regulatory agency to establish
procedures by which any covered person, and the prudential regulators, and any
other agency having jurisdiction over a covered person, including the Secretary
of the Department of Housing and Urban Development and the Secretary of
Education, shall comply with this section.</text>
</subsection></section><section id="IDd5e64773ae124d55b742a73a80d781eb"><enum>1035.</enum><header>Private
education loan ombudsman</header>
<subsection id="ID052a1153cfc94b9fa846e6c5906e5978"><enum>(a)</enum><header>Establishment</header><text>The
Secretary, in consultation with the Director, shall designate a Private
Education Loan Ombudsman (in this section referred to as the
<quote>Ombudsman</quote>) within the Bureau, to provide timely assistance to
borrowers of private education loans.</text>
</subsection><subsection id="ID9073fcc987fa4795a36132eb4fc9cc42"><enum>(b)</enum><header>Public
information</header><text>The Secretary and the Director shall disseminate
information about the availability and functions of the Ombudsman to borrowers
and potential borrowers, as well as institutions of higher education, lenders,
guaranty agencies, loan servicers, and other participants in private education
student loan programs.</text>
</subsection><subsection id="ID93aac0a5c2404c8d9bcbdce5ea9c266f"><enum>(c)</enum><header>Functions of
ombudsman</header><text>The Ombudsman designated under this subsection
shall—</text>
<paragraph id="IDbd7220a5a904446f9dafeba4f079fe89"><enum>(1)</enum><text>in
accordance with regulations of the Director, receive, review, and attempt to
resolve informally complaints from borrowers of loans described in subsection
(a), including, as appropriate, attempts to resolve such complaints in
collaboration with the Department of Education and with institutions of higher
education, lenders, guaranty agencies, loan servicers, and other participants
in private education loan programs;</text>
</paragraph><paragraph id="ID1cfbdd7ccb6f4a4b921639cfcc72e65f"><enum>(2)</enum><text>not
later than 90 days after the designated transfer date, establish a memorandum
of understanding with the student loan ombudsman established under section
141(f) of the Higher Education Act of 1965 (20 U.S.C. 1018(f)), to ensure
coordination in providing assistance to and serving borrowers seeking to
resolve complaints related to their private education or Federal student
loans;</text>
</paragraph><paragraph id="ID5a4e05ed188d46c58950a9956b6057a2"><enum>(3)</enum><text>compile and
analyze data on borrower complaints regarding private education loans;
and</text>
</paragraph><paragraph id="IDda95d4e27cc644a895b80cdf9b032278"><enum>(4)</enum><text>make
appropriate recommendations to the Director, the Secretary, the Secretary of
Education, the Committee on Banking, Housing, and Urban Affairs and the
Committee on Health, Education, Labor, and Pensions of the Senate and the
Committee on Financial Services and the Committee on Education and Labor of the
House of Representatives.</text>
</paragraph></subsection><subsection id="ID4c15ce37674e425fbe49940da2f69073"><enum>(d)</enum><header>Annual
reports</header>
<paragraph id="IDea142cdfcff04fc7aca5c70aa960b08d"><enum>(1)</enum><header>In
general</header><text>The Ombudsman shall prepare an annual report that
describes the activities, and evaluates the effectiveness of the Ombudsman
during the preceding year.</text>
</paragraph><paragraph id="ID444e58ef9a6b428e88a5fdc23bb72d9e"><enum>(2)</enum><header>Submission</header><text>The
report required by paragraph (1) shall be submitted on the same date annually
to the Secretary, the Secretary of Education, the Committee on Banking,
Housing, and Urban Affairs and the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Financial Services and the
Committee on Education and Labor of the House of Representatives.</text>
</paragraph></subsection><subsection id="ID96fc3280baf14ee790fb44a28e42a2bc"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section, the terms <quote>private education loan</quote> and
<quote>institution of higher education</quote> have the same meanings as in
section 140 of the Truth in Lending Act (15 U.S.C. 1650).</text>
</subsection></section><section id="ID717c19f21b7e4e58af63c7e29e01adf1"><enum>1036.</enum><header>Prohibited
acts</header><text display-inline="no-display-inline">It shall be unlawful for
any person—</text>
<paragraph id="id8C6F6FCAFCEC4446A54F502C3CE4956C"><enum>(1)</enum><text>to—</text>
<subparagraph id="idFF814029DDC54075ABD514F7B50B0ED9"><enum>(A)</enum><text>advertise,
market, offer, or sell a consumer financial product or service not in
conformity with this title or applicable rules or orders issued by the
Bureau;</text>
</subparagraph><subparagraph id="id1FEF1F17AD544C86B19987D3041703CB"><enum>(B)</enum><text>enforce, or
attempt to enforce, any agreement with a consumer (including any term or change
in terms in respect of such agreement), or impose, or attempt to impose, any
fee or charge on a consumer in connection with a consumer financial product or
service that is not in conformity with this title or applicable rules or orders
issued by the Bureau; or</text>
</subparagraph><subparagraph id="idE2AA0FECF1AD45CCB3855356AD31D40F"><enum>(C)</enum><text>engage in any
unfair, deceptive, or abusive act or practice,</text>
<continuation-text continuation-text-level="subparagraph">except that
no person shall be held to have violated this paragraph solely by virtue of
providing or selling time or space to a person placing an advertisement;</continuation-text></subparagraph></paragraph><paragraph id="ID8e0bef5069194dd5b76bbcfd1d1c16d3"><enum>(2)</enum><text>to
fail or refuse, as required by Federal consumer financial law, or any rule or
order issued by the Bureau thereunder—</text>
<subparagraph id="IDf60c0a52c81e4efcbf00f0565464b833"><enum>(A)</enum><text>to permit access
to or copying of records;</text>
</subparagraph><subparagraph id="ID9fb9d74fecc14f479cec1dbbd4b638ed"><enum>(B)</enum><text>to establish or
maintain records; or</text>
</subparagraph><subparagraph id="ID46d671e8706b4a8583299c514d9402e8"><enum>(C)</enum><text>to make reports
or provide information to the Bureau; or</text>
</subparagraph></paragraph><paragraph id="IDd86f4d96d45c4dad9b1d5d2f8b97cbb3"><enum>(3)</enum><text>knowingly or
recklessly to provide substantial assistance to another person in violation of
the provisions of section 1031, or any rule or order issued thereunder, and
notwithstanding any provision of this title, the provider of such substantial
assistance shall be deemed to be in violation of that section to the same
extent as the person to whom such assistance is provided.</text>
</paragraph></section><section id="id2011B02078AA4C8EA206242F0DC29FF7"><enum>1037.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section></subtitle><subtitle id="id3B5C177F3BEC44A9AEC31F37C329FE00"><enum>D</enum><header>Preservation of
State law</header>
<section id="id0B56578A14EE48D2AA8452A7AAFADC08"><enum>1041.</enum><header>Relation to
State law</header>
<subsection id="ID4d1d4cd88140405c8edf0328b12899ba"><enum>(a)</enum><header>In
general</header>
<paragraph id="ID3972eef9d1204644ac85947af0d5be14"><enum>(1)</enum><header>Rule of
construction</header><text>This title, other than sections 1044 through 1048,
may not be construed as annulling, altering, or affecting, or exempting any
person subject to the provisions of this title from complying with, the
statutes, regulations, orders, or interpretations in effect in any State,
except to the extent that any such provision of law is inconsistent with the
provisions of this title, and then only to the extent of the
inconsistency.</text>
</paragraph><paragraph id="IDbcc9adfb875845f19b95df604d0a9b12"><enum>(2)</enum><header>Greater
protection under State law</header><text>For purposes of this subsection, a
statute, regulation, order, or interpretation in effect in any State is not
inconsistent with the provisions of this title if the protection that such
statute, regulation, order, or interpretation affords to consumers is greater
than the protection provided under this title. A determination regarding
whether a statute, regulation, order, or interpretation in effect in any State
is inconsistent with the provisions of this title may be made by the Bureau on
its own motion or in response to a nonfrivolous petition initiated by any
interested person.</text>
</paragraph></subsection><subsection id="IDfeffdd746e7c42a6959beff977247350"><enum>(b)</enum><header>Relation to
other provisions of enumerated consumer laws that relate to State
law</header><text>No provision of this title, except as provided in section
1083, shall be construed as modifying, limiting, or superseding the operation
of any provision of an enumerated consumer law that relates to the application
of a law in effect in any State with respect to such Federal law.</text>
</subsection><subsection id="ID60cc6740d8c841f5a5c70c304890f05f"><enum>(c)</enum><header>Additional
consumer protection regulations in response to State action</header>
<paragraph id="ID925be4a26acf405ea98a833aa011581d"><enum>(1)</enum><header>Notice of
proposed rule required</header><text>The Bureau shall issue a notice of
proposed rulemaking whenever a majority of the States has enacted a resolution
in support of the establishment or modification of a consumer protection
regulation by the Bureau.</text>
</paragraph><paragraph id="IDc02270887be24ec3977d0850ba2820b3"><enum>(2)</enum><header>Bureau
considerations required for issuance of final regulation</header><text>Before
prescribing a final regulation based upon a notice issued pursuant to paragraph
(1), the Bureau shall take into account whether—</text>
<subparagraph id="ID77d4a04d931a4971baabc86519a031ba"><enum>(A)</enum><text>the proposed
regulation would afford greater protection to consumers than any existing
regulation;</text>
</subparagraph><subparagraph id="ID8509127937a44e0080fd0712740de5c0"><enum>(B)</enum><text>the intended
benefits of the proposed regulation for consumers would outweigh any increased
costs or inconveniences for consumers, and would not discriminate unfairly
against any category or class of consumers; and</text>
</subparagraph><subparagraph id="ID472de049de6c4089bd54fd40bc29a7de"><enum>(C)</enum><text>a
Federal banking agency has advised that the proposed regulation is likely to
present an unacceptable safety and soundness risk to insured depository
institutions.</text>
</subparagraph></paragraph><paragraph id="ID2c6ab1291c4b4aa7b46776ae8184b806"><enum>(3)</enum><header>Explanation of
considerations</header><text>The Bureau—</text>
<subparagraph id="IDde452b67a5054db3970e44aa45fba856"><enum>(A)</enum><text>shall include a
discussion of the considerations required in paragraph (2) in the Federal
Register notice of a final regulation prescribed pursuant to this subsection;
and</text>
</subparagraph><subparagraph id="IDde99712d4bb34ab0bdcd2c3b376936e9"><enum>(B)</enum><text>whenever the
Bureau determines not to prescribe a final regulation, shall publish an
explanation of such determination in the Federal Register, and provide a copy
of such explanation to each State that enacted a resolution in support of the
proposed regulation, the Committee on Financial Services of the House of
Representatives, and the Committee on Banking, Housing, and Urban Affairs of
the Senate.</text>
</subparagraph></paragraph><paragraph id="ID14e2399e768a4595a15bf466fac0dafb"><enum>(4)</enum><header>Reservation of
authority</header><text>No provision of this subsection shall be construed as
limiting or restricting the authority of the Bureau to enhance consumer
protection standards established pursuant to this title in response to its own
motion or in response to a request by any other interested person.</text>
</paragraph><paragraph id="IDce269703da1149789da386ffc54857de"><enum>(5)</enum><header>Rule of
construction</header><text>No provision of this subsection shall be construed
as exempting the Bureau from complying with subchapter II of chapter 5 of title
5, United States Code.</text>
</paragraph><paragraph id="ID82b342e46ccd4c5c843a8d7600409e72"><enum>(6)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>consumer protection
regulation</term> means a regulation that the Bureau is authorized to prescribe
under the Federal consumer financial laws.</text>
</paragraph></subsection></section><section id="IDbbdb0077afca4bd5ad14605d2c70428d"><enum>1042.</enum><header>Preservation
of enforcement powers of States</header>
<subsection id="idDAC48C3B792D4129B003F7EAB80EDC2F"><enum>(a)</enum><header>In
general</header>
<paragraph id="ID361557367d1a44feb1f94e789388ed60"><enum>(1)</enum><header>Action by
State</header><text>The attorney general (or the equivalent thereof) of any
State 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 in that State or in State court having jurisdiction over the
defendant, to enforce provisions of this title or regulations issued thereunder
and to secure remedies under provisions of this title or remedies otherwise
provided under other law. A State regulator may bring a civil action or other
appropriate proceeding to enforce the provisions of this title or regulations
issued thereunder with respect to any entity that is State-chartered,
incorporated, licensed, or otherwise authorized to do business under State law,
and to secure remedies under provisions of this title or remedies otherwise
provided under other provisions of law with respect to a State-chartered
entity.</text>
</paragraph><paragraph id="IDb18c92d50a37463cb0d76deb8f185bdf"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this title shall be construed as
modifying, limiting, or superseding the operation of any provision of an
enumerated consumer law that relates to the authority of a State attorney
general or State regulator to enforce such Federal law.</text>
</paragraph></subsection><subsection id="ID70dc49edc05f483bbedea7ac6fe9126d"><enum>(b)</enum><header>Consultation
required</header>
<paragraph id="ID3e383cd3a62a4f9fbe51a72d9ff081a5"><enum>(1)</enum><header>Notice</header>
<subparagraph id="IDf8c73fe9507f4407a0ba1880a49de57c"><enum>(A)</enum><header>In
general</header><text>Before initiating any action in a court or other
administrative or regulatory proceeding against any covered person to enforce
any provision of this title, including any regulation prescribed by the
Director under this title, a State attorney general or State regulator shall
timely provide a copy of the complete complaint to be filed and written notice
describing such action or proceeding to the Bureau and the prudential
regulator, if any, or the designee thereof.</text>
</subparagraph><subparagraph id="ID66cf4b0d3a204fb88c0e172723f11f31"><enum>(B)</enum><header>Emergency
action</header><text>If prior notice is not practicable, the State attorney
general or State regulator shall provide a copy of the complete complaint and
the notice to the Bureau and the prudential regulator, if any, immediately upon
instituting the action or proceeding.</text>
</subparagraph><subparagraph id="ID5f7120d03dc54895b54bf36ea2027c72"><enum>(C)</enum><header>Contents of
notice</header><text>The notification required under this paragraph shall, at a
minimum, describe—</text>
<clause id="ID55330e475bc34f3da56021e40307f1ee"><enum>(i)</enum><text>the
identity of the parties;</text>
</clause><clause id="ID6925ce2a6257431ebfa1a4811a8a9c5f"><enum>(ii)</enum><text>the
alleged facts underlying the proceeding; and</text>
</clause><clause id="IDd9115df541a242e78a6538cbcc5bcf47"><enum>(iii)</enum><text>whether there
may be a need to coordinate the prosecution of the proceeding so as not to
interfere with any action, including any rulemaking, undertaken by the
Director, a prudential regulator, or another Federal agency.</text>
</clause></subparagraph></paragraph><paragraph id="ID5a4bb86cdb31449ab56ab7ae423d2636"><enum>(2)</enum><header>Bureau
response</header><text>In any action described in paragraph (1), the Bureau
may—</text>
<subparagraph id="IDe2047abf842342f5925794d651ee29e1"><enum>(A)</enum><text>intervene in the
action as a party;</text>
</subparagraph><subparagraph id="ID70efc24d035e4f57b2c5768512a0042d"><enum>(B)</enum><text>upon
intervening—</text>
<clause id="IDe10bc5e68e064372822d7915a8b5c8b5"><enum>(i)</enum><text>remove
the action to the appropriate United States district court, if the action was
not originally brought there; and</text>
</clause><clause id="IDf9e65d6aaa0240819df27ce66a797aa7"><enum>(ii)</enum><text>be
heard on all matters arising in the action; and</text>
</clause></subparagraph><subparagraph id="ID4b78582e5cd34bcd9fce279daa835d6c"><enum>(C)</enum><text>appeal any order
or judgment, to the same extent as any other party in the proceeding
may.</text>
</subparagraph></paragraph></subsection><subsection id="ID9f35197c585044f2aac5312006dbe6b9"><enum>(c)</enum><header>Regulations</header><text>The
Director shall prescribe regulations to implement the requirements of this
section and, from time to time, provide guidance in order to further coordinate
actions with the State attorneys general and other regulators.</text>
</subsection><subsection id="ID34a5343014224d32adc4a0617ade6d5f"><enum>(d)</enum><header>Preservation of
State authority</header>
<paragraph commented="no" id="ID2bce00384ecb47fd82add5068d22a3de"><enum>(1)</enum><header>State
claims</header><text>No provision of this section shall be construed as
altering, limiting, or affecting the authority of a State attorney general or
any other regulatory or enforcement agency or authority to bring an action or
other regulatory proceeding arising solely under the law in effect in that
State.</text>
</paragraph><paragraph id="ID130e20973ab54c35973e7af0e54717a6"><enum>(2)</enum><header>State
securities regulators</header><text>No provision of this title shall be
construed as altering, limiting, or affecting the authority of a State
securities commission (or any agency or office performing like functions) under
State law to adopt rules, initiate enforcement proceedings, or take any other
action with respect to a person regulated by such commission or
authority.</text>
</paragraph><paragraph id="ID13ec72b35b2e42a28f9547a34cc7227c"><enum>(3)</enum><header>State insurance
regulators</header><text>No provision of this title shall be construed as
altering, limiting, or affecting the authority of a State insurance commission
or State insurance regulator under State law to adopt rules, initiate
enforcement proceedings, or take any other action with respect to a person
regulated by such commission or regulator.</text>
</paragraph></subsection></section><section commented="no" id="ID9bea9afb485b401cb890b3e062243c28"><enum>1043.</enum><header>Preservation
of existing contracts</header><text display-inline="no-display-inline">This
title, and regulations, orders, guidance, and interpretations prescribed,
issued, or established by the Bureau, shall not be construed to alter or affect
the applicability of any regulation, order, guidance, or interpretation
prescribed, issued, and established by the Comptroller of the Currency or the
Director of the Office of Thrift Supervision regarding the applicability of
State law under Federal banking law to any contract entered into on or before
the date of the enactment of this title, by national banks, Federal savings
associations, or subsidiaries thereof that are regulated and supervised by the
Comptroller of the Currency or the Director of the Office of Thrift
Supervision, respectively.</text>
</section><section id="ID1746ef06aa4342a48c05fb3fc2a4bfd6"><enum>1044.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="id1194B224C3B84DE5AB4BCFA307AC7879"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter one of title
LXII of the Revised Statutes of the United States (12 U.S.C. 21 et seq.) is
amended by inserting after section 5136B the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idEBB6D00F2303481A9A6D996ED94FBE7F" style="OLC">
<section id="IDf4a72e96d9a54e40b6cf5cf79c2be340"><enum>5136C.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="idACBD9384C86A4153BA868FB16580103C"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph id="ID392ac747d1e44e7e8af498b03066b231"><enum>(1)</enum><header>National
bank</header><text>The term <term>national bank</term> includes—</text>
<subparagraph id="ID78ee905306dd4b0ebfb80568b3f37ce5"><enum>(A)</enum><text>any bank
organized under the laws of the United States; and</text>
</subparagraph><subparagraph id="ID50adebfb40fd4a0ca3e3365b5250b5b8"><enum>(B)</enum><text>any Federal
branch established in accordance with the International Banking Act of
1978.</text>
</subparagraph></paragraph><paragraph id="ID1b616b3e3ac246bfb1dd8cc299952a21"><enum>(2)</enum><header>State consumer
financial laws</header><text>The term <term>State consumer financial law</term>
means a State law that does not directly or indirectly discriminate against
national banks and that directly and specifically regulates the manner,
content, or terms and conditions of any financial transaction (as may be
authorized for national banks to engage in), or any account related thereto,
with respect to a consumer.</text>
</paragraph><paragraph id="IDbdb2f1459318462cb9d94dd3f77d2096"><enum>(3)</enum><header>Other
definitions</header><text>The terms <term>affiliate</term>,
<term>subsidiary</term>, <term>includes</term>, and <term>including</term> have
the same meanings as in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph></subsection><subsection id="ID873d3a8ce5a44d18b79f2e526fd4e131"><enum>(b)</enum><header>Preemption
standard</header>
<paragraph id="ID07e5e60b8b65441fa86d09aaf1556274"><enum>(1)</enum><header>In
general</header><text>State consumer financial laws are preempted, only
if—</text>
<subparagraph id="ID4bf39377410748019dba6e05752dfb58"><enum>(A)</enum><text>application of a
State consumer financial law would have a discriminatory effect on national
banks, in comparison with the effect of the law on a bank chartered by that
State;</text>
</subparagraph><subparagraph id="ID35179948cb144396a3bb46a1358f1dd6"><enum>(B)</enum><text>the preemption of
the State consumer financial law is in accordance with the legal standard of
the decision of the Supreme Court of the United States in Barnett Bank of
Marion County, N.A. v. Nelson, Florida Insurance Commissioner, et al, 517 U.S.
25 (1996), and a 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, and any such
determination by a court shall comply with the standards set forth in
subsection (d), with the court making the finding under subsection (d), de
novo; or</text>
</subparagraph><subparagraph id="IDcfd62b5db5d34a2d91c59b24d908c1c4"><enum>(C)</enum><text>the State
consumer financial law is preempted by a provision of Federal law other than
this title.</text>
</subparagraph></paragraph><paragraph id="ID32aacb86f3fc4e3eb80af903d5f85e32"><enum>(2)</enum><header>Savings
clause</header><text>This title does not preempt, annul, or affect the
applicability of any State law to any subsidiary or affiliate of a national
bank (other than a subsidiary or affiliate that is chartered as a national
bank).</text>
</paragraph><paragraph id="ID575d9110290b4eddbad7e0b42cec8c8a"><enum>(3)</enum><header>Case-by-case
basis</header>
<subparagraph id="IDc1c1d09b9ff14155bf3902e2e6d9d4c0"><enum>(A)</enum><header>Definition</header><text>As
used in this section the term <term>case-by-case basis</term> refers to a
determination pursuant to this section made by the Comptroller concerning the
impact of a particular State consumer financial law on any national bank that
is subject to that law, or the law of any other State with substantively
equivalent terms.</text>
</subparagraph><subparagraph id="IDbdad9ab26c334c3f8504b7768e24fea4"><enum>(B)</enum><header>Consultation</header><text>When
making a determination on a case-by-case basis that a State consumer financial
law of another State has substantively equivalent terms as one that the
Comptroller is preempting, the Comptroller shall first consult with the Bureau
of Consumer Financial Protection and shall take the views of the Bureau into
account when making the determination.</text>
</subparagraph></paragraph><paragraph id="ID39e59fce998145ec80dfc9610a80694b"><enum>(4)</enum><header>Rule of
construction</header><text>This title does not occupy the field in any area of
State law.</text>
</paragraph><paragraph id="IDf1502a8c385640ce94c670999bc69ae8"><enum>(5)</enum><header>Standards of
review</header>
<subparagraph id="IDc82252adbbec445b88b41dc48c047254"><enum>(A)</enum><header>Preemption</header><text>A
court reviewing any determinations made by the Comptroller regarding preemption
of a State law by this title shall assess the validity of such determinations,
depending upon the thoroughness evident in the consideration of the agency, the
validity of the reasoning of the agency, the consistency with other valid
determinations made by the agency, and other factors which the court finds
persuasive and relevant to its decision.</text>
</subparagraph><subparagraph id="ID6ac399c3874b40ba8f3b91f00c15261a"><enum>(B)</enum><header>Savings
clause</header><text>Except as provided in subparagraph (A), nothing in this
section shall affect the deference that a court may afford to the Comptroller
in making determinations regarding the meaning or interpretation of title LXII
of the Revised Statutes of the United States or other Federal laws.</text>
</subparagraph></paragraph><paragraph id="IDb83b6463ccbf48b89c0dac3d43793560"><enum>(6)</enum><header>Comptroller
determination not delegable</header><text>Any regulation, order, or
determination made by the Comptroller of the Currency under paragraph (1)(B)
shall be made by the Comptroller, and shall not be delegable to another officer
or employee of the Comptroller of the Currency.</text>
</paragraph></subsection><subsection id="IDa5513e2fbb38475cbc0798d6a246e681"><enum>(c)</enum><header>Substantial
evidence</header><text>No regulation or order of the Comptroller of the
Currency prescribed under subsection (b)(1)(B), shall be interpreted or applied
so as to invalidate, or otherwise declare inapplicable to a national bank, the
provision of the State consumer financial law, unless substantial evidence,
made on the record of the proceeding, supports the specific finding regarding
the preemption of such provision in accordance with the legal standard of the
decision of the Supreme Court of the United States in Barnett Bank of Marion
County, N.A. v. Nelson, Florida Insurance Commissioner, et al., 517 U.S. 25
(1996).</text>
</subsection><subsection id="IDe293760dc5fe454a81ec848227318517"><enum>(d)</enum><header>Other Federal
laws</header><text>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
Director of the Bureau of Consumer Financial Protection, makes a finding, in
writing, that a Federal law provides a substantive standard, applicable to a
national bank, which regulates the particular conduct, activity, or authority
that is subject to such provision of the State consumer financial law.</text>
</subsection><subsection id="IDca242a435e4c4613bbf61e924cb73ec4"><enum>(e)</enum><header>Periodic review
of preemption determinations</header>
<paragraph id="IDde94bdcb0d0848969a968b1401fd4fde"><enum>(1)</enum><header>In
general</header><text>The Comptroller of the Currency shall periodically
conduct a review, through notice and public comment, of each determination that
a provision of Federal law preempts a State consumer financial law. The agency
shall conduct such review within the 5-year period after prescribing or
otherwise issuing such determination, and at least once during each 5-year
period thereafter. After conducting the review of, and inspecting the comments
made on, the determination, the agency shall publish a notice in the Federal
Register announcing the decision to continue or rescind the determination or a
proposal to amend the determination. Any such notice of a proposal to amend a
determination and the subsequent resolution of such proposal shall comply with
the procedures set forth in subsections (a) and (b) of section 5244 of the
Revised Statutes of the United States (12 U.S.C. 43 (a), (b)).</text>
</paragraph><paragraph id="ID4f39d09abc8b4491b09a172d90d537c8"><enum>(2)</enum><header>Reports to
Congress</header><text>At the time of issuing a review conducted under
paragraph (1), the Comptroller of the Currency shall submit a report regarding
such review to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate. The report submitted to the respective committees shall address whether
the agency intends to continue, rescind, or propose to amend any determination
that a provision of Federal law preempts a State consumer financial law, and
the reasons therefor.</text>
</paragraph></subsection><subsection id="ID661af4c37c7844cdb4686465f7983b81"><enum>(f)</enum><header>Application of
State consumer financial law to subsidiaries and
affiliates</header><text>Notwithstanding any provision of this title, a State
consumer financial law shall apply to a subsidiary or affiliate of a national
bank (other than a subsidiary or affiliate that is chartered as a national
bank) to the same extent that the State consumer financial law applies to any
person, corporation, or other entity subject to such State law.</text>
</subsection><subsection id="IDfd1bb48fa27648fe9bf43c9c967efd7a"><enum>(g)</enum><header>Preservation of
powers related to charging interest</header><text>No provision of this title
shall be construed as altering or otherwise affecting the authority conferred
by section 5197 of the Revised Statutes of the United States (12 U.S.C. 85) for
the charging of interest by a national bank at the rate allowed by the laws of
the State, territory, or district where the bank is located, including with
respect to the meaning of <quote>interest</quote> under such provision.</text>
</subsection><subsection id="IDd493cd3d627342eebc9b2330607f0650"><enum>(h)</enum><header>Transparency of
OCC preemption determinations</header><text>The Comptroller of the Currency
shall publish and update no less frequently than quarterly, a list of
preemption determinations by the Comptroller of the Currency then in effect
that identifies the activities and practices covered by each determination and
the requirements and constraints determined to be
preempted.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDeae30f374ec4405cbf707b1bcfe7bf2e"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter one of title LXII of
the Revised Statutes of the United States is amended by inserting after the
item relating to section 5136B the following new item:</text>
<quoted-block id="id61501783-0a7f-4224-82ba-b20108c785b8" style="OLC">
<toc>
<toc-entry idref="IDf4a72e96d9a54e40b6cf5cf79c2be340" level="section">Sec. 5136C. State law preemption standards for national banks
and subsidiaries
clarified.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDdeb2b775c448445d864ff20d3437f728"><enum>1045.</enum><header>Clarification
of law applicable to nondepository institution subsidiaries</header><text display-inline="no-display-inline">Section 5136C of the Revised Statutes of the
United States (as added by this subtitle) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idB72A17E8B1F740588D388A7B55C44064" style="OLC">
<subsection id="ID1ff8ecd1d0c74ff89d23f9c6f93a5b39"><enum>(i)</enum><header>Clarification
of law applicable to nondepository institution subsidiaries and affiliates of
national banks</header>
<paragraph id="ID2164f62342084ba6b19d4977f17efe39"><enum>(1)</enum><header>Definitions</header><text>For
purposes of this subsection, the terms <term>depository institution</term>,
<term>subsidiary</term>, and <term>affiliate</term> have the same meanings as
in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph><paragraph id="IDaa77274b384948499b99484964b5306b"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this title shall be construed as
preempting, annulling, or affecting the applicability of State law to any
subsidiary, affiliate, or agent of a national bank (other than a subsidiary,
affiliate, or agent that is chartered as a national
bank).</text>
</paragraph></subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="ID074aa9329d854e9e8131e5b655415afe"><enum>1046.</enum><header>State law
preemption standards for Federal savings associations and subsidiaries
clarified</header>
<subsection id="IDdee508ad386a452aa0425c4f78d75d00"><enum>(a)</enum><header>In
general</header><text>The Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is
amended by inserting after section 5 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id3581830D79D34F2B9F474CE5D3CD37C7" style="OLC">
<section id="ID84a94dedd7924e78be8ff18cb1cad256"><enum>6.</enum><header>State law
preemption standards for Federal savings associations clarified</header>
<subsection id="ID45cba2ad0ab74d26a66dc27e8a467570"><enum>(a)</enum><header>In
general</header><text>Any determination by a court or by the Director or any
successor officer or agency regarding the relation of State law to a provision
of this Act or any regulation or order prescribed under this Act shall be made
in accordance with the laws and legal standards applicable to national banks
regarding the preemption of State law.</text>
</subsection><subsection id="IDc8203e53d4ec402aa806c71f8d61e76a"><enum>(b)</enum><header>Principles of
conflict preemption applicable</header><text>Notwithstanding the authorities
granted under sections 4 and 5, this Act does not occupy the field in any area
of State
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDb87405c65d214df684f6c6583bdde09c"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for the Home Owners' Loan Act (12
U.S.C. 1461 et seq.) is amended by striking the item relating to section 6 and
inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idF246563C312E47C68469A08353B3DF8D" style="OLC">
<toc>
<toc-entry bold="off" level="paragraph">Sec. 6.. State law preemption
standards for Federal savings associations and subsidiaries
clarified.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDc2dcbd669dc141499a14b6a2c38616fd"><enum>1047.</enum><header>Visitorial
standards for national banks and savings associations</header>
<subsection id="id4ED2C02996524EBBA8F82DBA1FC5CDE9"><enum>(a)</enum><header>National
banks</header><text display-inline="yes-display-inline">Section 5136C of the
Revised Statutes of the United States (as added by this subtitle) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC7999D92B55549F686F931C05E392452" style="OLC">
<subsection id="IDb9559e1937f4492c9b1e6276a8685b9d"><enum>(j)</enum><header>Visitorial
powers</header>
<paragraph id="ID953251827bda4378af2d33886e809a98"><enum>(1)</enum><header>In
general</header><text>No provision of this title which relates to visitorial
powers 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, as authorized under section 5240(a)—</text>
<subparagraph id="IDee52ea260ffe416b80826a0261cdec8d"><enum>(A)</enum><text>to enforce any
applicable provision of Federal or State law, as authorized by such law;
or</text>
</subparagraph><subparagraph id="ID7b9a0211e0d3449c8ff840f91571c70c"><enum>(B)</enum><text>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 for such residents from any violation of any such law by any
national bank.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDd450c512344b4b60a0f0e4af5e2e507e"><enum>(2)</enum><header>Prior
consultation with OCC required</header><text>The attorney general (or other
chief law enforcement officer) of any State shall consult with the Comptroller
of the Currency before acting under paragraph (1).</text>
</paragraph></subsection><subsection id="IDa8941f245e864b29b019c810881873dd"><enum>(k)</enum><header>Enforcement
actions</header><text>The ability of the Comptroller of the Currency to bring
an enforcement action under this title or section 5 of the Federal Trade
Commission Act does not preclude any private party from enforcing rights
granted under Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id49D2328493684FC8A66F9F645774D553"><enum>(b)</enum><header>Savings
associations</header><text>Section 6 of the Home Owners' Loan Act (as added by
this title) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8A3565B94EB54F81809449CE950000EF" style="OLC">
<subsection id="ID4c0cede1d2e74a59a2cfd6617611303e"><enum>(c)</enum><header>Visitorial
powers</header>
<paragraph id="IDc0c73865f09049528d88226d95d5e8bc"><enum>(1)</enum><header>In
general</header><text>No provision of this Act shall be construed as limiting
or restricting the authority of any attorney general (or other chief law
enforcement officer) of any State to bring any action in any court of
appropriate jurisdiction—</text>
<subparagraph id="IDe7ec29a7768940ff955f928f77cac319"><enum>(A)</enum><text>to enforce any
applicable provision of Federal or State law, as authorized by such law;
or</text>
</subparagraph><subparagraph id="ID15e9f7ed11a24b04b3c3412e7d7f9abb"><enum>(B)</enum><text>on behalf of
residents of such State, to enforce any applicable provision of any Federal or
nonpreempted State law against a Federal savings association, as authorized by
such law, or to seek relief for such residents from any violation of any such
law by any Federal savings association.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDa224fec39b2d4f7098de58b9982174ec"><enum>(2)</enum><header>Prior
consultation with OCC required</header><text>The attorney general (or other
chief law enforcement officer) of any State shall consult with the Comptroller
of the Currency before acting under paragraph (1).</text>
</paragraph></subsection><subsection id="ID48bdc6077b754dcf967fb1df3b1671b5"><enum>(d)</enum><header>Enforcement
actions</header><text>The ability of the Comptroller of the Currency to bring
an enforcement action under this Act or section 5 of the Federal Trade
Commission Act does not preclude any private party from enforcing rights
granted under Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID1634c29185b6470db7de6d0d85d8bba2"><enum>1048.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date.</text>
</section></subtitle><subtitle id="idB76D2F4BB4E7419E88FD0B903D56F1E9"><enum>E</enum><header>Enforcement
Powers</header>
<section id="idB367482AC2CC44C98B5FCB25A3E15CD6"><enum>1051.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph id="IDdcea6bf707e44ae68e86c4e6a7ef0792"><enum>(1)</enum><header>Bureau
investigation</header><text>The term <term>Bureau investigation</term> means
any inquiry conducted by a Bureau investigator for the purpose of ascertaining
whether any person is or has been engaged in any conduct that is a violation,
as defined in this section.</text>
</paragraph><paragraph id="IDfe4ec6ed215b481c8e2846811cf9f449"><enum>(2)</enum><header>Bureau
investigator</header><text>The term <term>Bureau investigator</term> means any
attorney or investigator employed by the Bureau who is charged with the duty of
enforcing or carrying into effect any Federal consumer financial law.</text>
</paragraph><paragraph id="IDe9ba86d96f5c4a9fb8d25ab58d706e79"><enum>(3)</enum><header>Civil
investigative demand and demand</header><text>The terms <term>civil
investigative demand</term> and <term>demand</term> mean any demand issued by
the Bureau.</text>
</paragraph><paragraph id="ID80f4f83243d0484a91a4b644a6dd7bdc"><enum>(4)</enum><header>Custodian</header><text>The
term <term>custodian</term> means the custodian or any deputy custodian
designated by the Bureau.</text>
</paragraph><paragraph id="IDfba0779da78c4ac6bbd1824eee0db988"><enum>(5)</enum><header>Documentary
material</header><text>The term <term>documentary material</term> includes the
original or any copy of any book, document, record, report, memorandum, paper,
communication, tabulation, chart, logs, electronic files, or other data or data
compilations stored in any medium.</text>
</paragraph><paragraph id="ID104824c6c82f4d21806965053eed3a37"><enum>(6)</enum><header>Violation</header><text>The
term <term>violation</term> means any act or omission that, if proved, would
constitute a violation of any provision of Federal consumer financial
law.</text>
</paragraph></section><section id="IDc95caf673049478ca327ccd532c76c45"><enum>1052.</enum><header>Investigations
and administrative discovery</header>
<subsection id="IDaac40daa06bc41979e2a8d9b78588687"><enum>(a)</enum><header>Joint
investigations</header>
<paragraph id="ID7d2152b89fe441edb1d7782db77eadf0"><enum>(1)</enum><header>In
general</header><text>The Bureau or, where appropriate, a Bureau investigator,
may engage in joint investigations and requests for information, as authorized
under this title.</text>
</paragraph><paragraph id="IDc005833d72b94d2eb2433a6de1297c57"><enum>(2)</enum><header>Fair
lending</header><text>The authority under paragraph (1) includes matters
relating to fair lending, and where appropriate, joint investigations with, and
requests for information from, the Secretary of Housing and Urban Development,
the Attorney General of the United States, or both.</text>
</paragraph></subsection><subsection id="ID5b7d01feb8304aa2b32982783b70e673"><enum>(b)</enum><header>Subpoenas</header>
<paragraph id="ID21f9152c0d7649a6ba68d0ba4421bf24"><enum>(1)</enum><header>In
general</header><text>The Bureau or a Bureau investigator may issue subpoenas
for the attendance and testimony of witnesses and the production of relevant
papers, books, documents, or other material in connection with hearings under
this title.</text>
</paragraph><paragraph id="IDb5e7a57e08d0480986f8a05e51d6dd4a"><enum>(2)</enum><header>Failure to
obey</header><text>In the case of contumacy or refusal to obey a subpoena
issued pursuant to this paragraph and served upon any person, the district
court of the United States for any district in which such person is found,
resides, or transacts business, upon application by the Bureau or a Bureau
investigator and after notice to such person, may issue an order requiring such
person to appear and give testimony or to appear and produce documents or other
material.</text>
</paragraph><paragraph id="ID861e6ffe0562437ca55c724f6a136abd"><enum>(3)</enum><header>Contempt</header><text>Any
failure to obey an order of the court under this subsection may be punished by
the court as a contempt thereof.</text>
</paragraph></subsection><subsection id="ID9008952e3cc24bc99fcb1d87f0d2de92"><enum>(c)</enum><header>Demands</header>
<paragraph id="IDe2873ee7bdd14c6698cdaaa3b2e2a1e6"><enum>(1)</enum><header>In
general</header><text>Whenever the Bureau has reason to believe that any person
may be in possession, custody, or control of any documentary material or
tangible things, or may have any information, relevant to a violation, the
Bureau may, before the institution of any proceedings under the Federal
consumer financial law, issue in writing, and cause to be served upon such
person, a civil investigative demand requiring such person to—</text>
<subparagraph id="ID9872c2e286c14bb49e776ff5299653c3"><enum>(A)</enum><text>produce such
documentary material for inspection and copying or reproduction in the form or
medium requested by the Bureau;</text>
</subparagraph><subparagraph id="ID0a2450cfd16045659f54ee2b8d7708a1"><enum>(B)</enum><text>submit such
tangible things;</text>
</subparagraph><subparagraph id="IDec1af37feac54681898c1f4913ce7896"><enum>(C)</enum><text>file written
reports or answers to questions;</text>
</subparagraph><subparagraph id="IDfd2b411ea0a44dc5bc88b88f863c4c9c"><enum>(D)</enum><text>give oral
testimony concerning documentary material, tangible things, or other
information; or</text>
</subparagraph><subparagraph id="ID4191e01a8a3b4ec6b15dbf8304dd92b9"><enum>(E)</enum><text>furnish any
combination of such material, answers, or testimony.</text>
</subparagraph></paragraph><paragraph id="ID0fa7f4a4ce75474ca65ebcedb4022c23"><enum>(2)</enum><header>Requirements</header><text>Each
civil investigative demand shall state the nature of the conduct constituting
the alleged violation which is under investigation and the provision of law
applicable to such violation.</text>
</paragraph><paragraph id="ID8dc49d2f768a4a85836f5f43d8a8bc38"><enum>(3)</enum><header>Production of
documents</header><text>Each civil investigative demand for the production of
documentary material shall—</text>
<subparagraph id="ID740f6a4520e44d2e84bbe07efaf180da"><enum>(A)</enum><text>describe each
class of documentary material to be produced under the demand with such
definiteness and certainty as to permit such material to be fairly
identified;</text>
</subparagraph><subparagraph id="ID9baa86c0717c4a3f8636b83266384e1a"><enum>(B)</enum><text>prescribe a
return date or dates which will provide a reasonable period of time within
which the material so demanded may be assembled and made available for
inspection and copying or reproduction; and</text>
</subparagraph><subparagraph id="ID85e43dbff3624d64b07fa220058305ef"><enum>(C)</enum><text>identify the
custodian to whom such material shall be made available.</text>
</subparagraph></paragraph><paragraph id="IDe6b5d25f1713472cb51223506d4e68b1"><enum>(4)</enum><header>Production of
things</header><text>Each civil investigative demand for the submission of
tangible things shall—</text>
<subparagraph id="ID7cc71eb18af947138ce1dac0a8cd9f32"><enum>(A)</enum><text>describe each
class of tangible things to be submitted under the demand with such
definiteness and certainty as to permit such things to be fairly
identified;</text>
</subparagraph><subparagraph id="ID5d2657fd231c4dab9f9beb5c3bec117a"><enum>(B)</enum><text>prescribe a
return date or dates which will provide a reasonable period of time within
which the things so demanded may be assembled and submitted; and</text>
</subparagraph><subparagraph id="IDaaf2f0178f8e4dd593e0581bd0eabdac"><enum>(C)</enum><text>identify the
custodian to whom such things shall be submitted.</text>
</subparagraph></paragraph><paragraph id="IDd6f6eb14d1f54440979d480d836a5dce"><enum>(5)</enum><header>Demand for
written reports or answers</header><text>Each civil investigative demand for
written reports or answers to questions shall—</text>
<subparagraph id="ID1f8c0d60eafb4c21b1f58b460d285436"><enum>(A)</enum><text>propound with
definiteness and certainty the reports to be produced or the questions to be
answered;</text>
</subparagraph><subparagraph id="ID6c424992ef8a45f69ba7c8aaffe2e56a"><enum>(B)</enum><text>prescribe a date
or dates at which time written reports or answers to questions shall be
submitted; and</text>
</subparagraph><subparagraph id="IDdc5d725d31174b89acf740a61b9c2c80"><enum>(C)</enum><text>identify the
custodian to whom such reports or answers shall be submitted.</text>
</subparagraph></paragraph><paragraph id="ID6af88e719d24431799d48645901d0991"><enum>(6)</enum><header>Oral
testimony</header><text>Each civil investigative demand for the giving of oral
testimony shall—</text>
<subparagraph id="ID07542080820b4689a279f42fa3bd6908"><enum>(A)</enum><text>prescribe a date,
time, and place at which oral testimony shall be commenced; and</text>
</subparagraph><subparagraph id="IDd04f4f831bbb41f996ed6bd569fe67dc"><enum>(B)</enum><text>identify a Bureau
investigator who shall conduct the investigation and the custodian to whom the
transcript of such investigation shall be submitted.</text>
</subparagraph></paragraph><paragraph id="ID9793feab75de48f089850a0a3a753e95"><enum>(7)</enum><header>Service</header><text>Any
civil investigative demand and any enforcement petition filed under this
section may be served—</text>
<subparagraph id="ID6d313a4ab9cb477ba90030592e5565f2"><enum>(A)</enum><text>by any Bureau
investigator at any place within the territorial jurisdiction of any court of
the United States; and</text>
</subparagraph><subparagraph id="ID997aa700929046539b9a6b1120101165"><enum>(B)</enum><text>upon any person
who is not found within the territorial jurisdiction of any court of the United
States—</text>
<clause id="idB7147BC1B2DD4EE7BAB35EEB65778281"><enum>(i)</enum><text>in such
manner as the Federal Rules of Civil Procedure prescribe for service in a
foreign nation; and</text>
</clause><clause id="IDd8f77489288746ada4b5406c7741fc58"><enum>(ii)</enum><text>to the
extent that the courts of the United States have authority to assert
jurisdiction over such person, consistent with due process, the United States
District Court for the District of Columbia shall have the same jurisdiction to
take any action respecting compliance with this section by such person that
such district court would have if such person were personally within the
jurisdiction of such district court.</text>
</clause></subparagraph></paragraph><paragraph id="IDd28ed9443d494352900c2d1abe0aa95a"><enum>(8)</enum><header>Method of
service</header><text>Service of any civil investigative demand or any
enforcement petition filed under this section may be made upon a person,
including any legal entity, by—</text>
<subparagraph id="IDf955cd04434d4476a1ce22c128f2d1a8"><enum>(A)</enum><text>delivering a duly
executed copy of such demand or petition to the individual or to any partner,
executive officer, managing agent, or general agent of such person, or to any
agent of such person authorized by appointment or by law to receive service of
process on behalf of such person;</text>
</subparagraph><subparagraph id="IDeb8fcf9acfa04aeeaa981544edb0543b"><enum>(B)</enum><text>delivering a duly
executed copy of such demand or petition to the principal office or place of
business of the person to be served; or</text>
</subparagraph><subparagraph id="ID3720e7e9b1ae431f84bd40d64b349a41"><enum>(C)</enum><text>depositing a duly
executed copy in the United States mails, by registered or certified mail,
return receipt requested, duly addressed to such person at the principal office
or place of business of such person.</text>
</subparagraph></paragraph><paragraph id="ID027b873ed3a4487580c454491cac79ef"><enum>(9)</enum><header>Proof of
service</header>
<subparagraph id="IDece89f70f3d7486487742a2ef0064025"><enum>(A)</enum><header>In
general</header><text>A verified return by the individual serving any civil
investigative demand or any enforcement petition filed under this section
setting forth the manner of such service shall be proof of such service.</text>
</subparagraph><subparagraph id="ID546f9eb58e7c45058e11ca99551bb09b"><enum>(B)</enum><header>Return
receipts</header><text>In the case of service by registered or certified mail,
such return shall be accompanied by the return post office receipt of delivery
of such demand or enforcement petition.</text>
</subparagraph></paragraph><paragraph id="ID051c00dc131c480f8f4ba3cf08975613"><enum>(10)</enum><header>Production of
documentary material</header><text>The production of documentary material in
response to a civil investigative demand shall be made under a sworn
certificate, in such form as the demand designates, by the person, if a natural
person, to whom the demand is directed or, if not a natural person, by any
person having knowledge of the facts and circumstances relating to such
production, to the effect that all of the documentary material required by the
demand and in the possession, custody, or control of the person to whom the
demand is directed has been produced and made available to the
custodian.</text>
</paragraph><paragraph id="IDd395debcb957423b8cb54503341419d4"><enum>(11)</enum><header>Submission of
tangible things</header><text>The submission of tangible things in response to
a civil investigative demand shall be made under a sworn certificate, in such
form as the demand designates, by the person to whom the demand is directed or,
if not a natural person, by any person having knowledge of the facts and
circumstances relating to such production, to the effect that all of the
tangible things required by the demand and in the possession, custody, or
control of the person to whom the demand is directed have been submitted to the
custodian.</text>
</paragraph><paragraph id="ID599979d441414f10b4df0f8f132d01d7"><enum>(12)</enum><header>Separate
answers</header><text>Each reporting requirement or question in a civil
investigative demand shall be answered separately and fully in writing under
oath, unless it is objected to, in which event the reasons for the objection
shall be stated in lieu of an answer, and it shall be submitted under a sworn
certificate, in such form as the demand designates, by the person, if a natural
person, to whom the demand is directed or, if not a natural person, by any
person responsible for answering each reporting requirement or question, to the
effect that all information required by the demand and in the possession,
custody, control, or knowledge of the person to whom the demand is directed has
been submitted.</text>
</paragraph><paragraph id="ID70281487653b4c91b350640ab44bed00"><enum>(13)</enum><header>Testimony</header>
<subparagraph id="IDbdd5b6c8c89443329e5299531635cccf"><enum>(A)</enum><header>In
general</header>
<clause id="id7C022B9F99E6415095126C37F35AD6AA"><enum>(i)</enum><header>Oath
or affirmation</header><text>Any Bureau investigator before whom oral testimony
is to be taken shall put the witness under oath or affirmation, and shall
personally, or by any individual acting under the direction of and in the
presence of the Bureau investigator, record the testimony of the
witness.</text>
</clause><clause id="ID832a98ec3bcb419c856b197bdfd94663"><enum>(ii)</enum><header>Transcription</header><text>The
testimony shall be taken stenographically and transcribed.</text>
</clause><clause id="IDb0fb6915114f4182a7a493d8b61a7143"><enum>(iii)</enum><header>Transmission
to custodian</header><text>After the testimony is fully transcribed, the Bureau
investigator before whom the testimony is taken shall promptly transmit a copy
of the transcript of the testimony to the custodian.</text>
</clause></subparagraph><subparagraph id="ID37b8874b32d84007a8b73c373eda25a6"><enum>(B)</enum><header>Parties
present</header><text>Any Bureau investigator before whom oral testimony is to
be taken shall exclude from the place where the testimony is to be taken all
other persons, except the person giving the testimony, the attorney of that
person, the officer before whom the testimony is to be taken, and any
stenographer taking such testimony.</text>
</subparagraph><subparagraph id="ID7d9b9c28b89446e3a6c4a7ea0524d8d1"><enum>(C)</enum><header>Location</header><text>The
oral testimony of any person taken pursuant to a civil investigative demand
shall be taken in the judicial district of the United States in which such
person resides, is found, or transacts business, or in such other place as may
be agreed upon by the Bureau investigator before whom the oral testimony of
such person is to be taken and such person.</text>
</subparagraph><subparagraph id="ID614ddbb7af1445deb7d4734ff287af7c"><enum>(D)</enum><header>Attorney
representation</header>
<clause id="IDe07915ccab344c3b8c9aa9c1fc904c86"><enum>(i)</enum><header>In
general</header><text>Any person compelled to appear under a civil
investigative demand for oral testimony pursuant to this section may be
accompanied, represented, and advised by an attorney.</text>
</clause><clause id="IDd4c35773fec14fe39621cd9b1452530e"><enum>(ii)</enum><header>Authority</header><text>The
attorney may advise a person described in clause (i), in confidence, either
upon the request of such person or upon the initiative of the attorney, with
respect to any question asked of such person.</text>
</clause><clause id="IDa886548c2918483382a2f2250445abc7"><enum>(iii)</enum><header>Objections</header><text>A
person described in clause (i), or the attorney for that person, may object on
the record to any question, in whole or in part, and such person shall briefly
state for the record the reason for the objection. An objection may properly be
made, received, and entered upon the record when it is claimed that such person
is entitled to refuse to answer the question on grounds of any constitutional
or other legal right or privilege, including the privilege against
self-incrimination, but such person shall not otherwise object to or refuse to
answer any question, and such person or attorney shall not otherwise interrupt
the oral examination.</text>
</clause><clause id="IDc4c9210995cb4488aace8be25b5e1c27"><enum>(iv)</enum><header>Refusal to
answer</header><text>If a person described in clause (i) refuses to answer any
question—</text>
<subclause id="idDAB6584B37574C7A9B819AD8105BADFE"><enum>(I)</enum><text>the
Bureau may petition the district court of the United States pursuant to this
section for an order compelling such person to answer such question; and</text>
</subclause><subclause id="IDc39a6cda4e6f4610bee5c574493596e0"><enum>(II)</enum><text>on
grounds of the privilege against self-incrimination, the testimony of such
person may be compelled in accordance with the provisions of section 6004 of
title 18, United States Code.</text>
</subclause></clause></subparagraph><subparagraph id="ID8701642ab1d548febe362c67b55b2ddd"><enum>(E)</enum><header>Transcripts</header><text>For
purposes of this subsection—</text>
<clause id="IDed66fbca9a65451eb152a548b5bf2174"><enum>(i)</enum><text>after
the testimony of any witness is fully transcribed, the Bureau investigator
shall afford the witness (who may be accompanied by an attorney) a reasonable
opportunity to examine the transcript;</text>
</clause><clause id="ID54ffcc93ff4d455c8fc5578e0a08ee9f"><enum>(ii)</enum><text>the
transcript shall be read to or by the witness, unless such examination and
reading are waived by the witness;</text>
</clause><clause id="ID6eb5877faf4841668ee6c0bd25caca89"><enum>(iii)</enum><text>any
changes in form or substance which the witness desires to make shall be entered
and identified upon the transcript by the Bureau investigator, with a statement
of the reasons given by the witness for making such changes;</text>
</clause><clause id="IDadc6cad7122641729384703534867d85"><enum>(iv)</enum><text>the
transcript shall be signed by the witness, unless the witness in writing waives
the signing, is ill, cannot be found, or refuses to sign; and</text>
</clause><clause id="ID509fa4ae7de44be4a9d32814d0e53125"><enum>(v)</enum><text>if the
transcript is not signed by the witness during the 30-day period following the
date on which the witness is first afforded a reasonable opportunity to examine
the transcript, the Bureau investigator shall sign the transcript and state on
the record the fact of the waiver, illness, absence of the witness, or the
refusal to sign, together with any reasons given for the failure to
sign.</text>
</clause></subparagraph><subparagraph id="ID8bb4a4ba5653436b832aac8ecef4819a"><enum>(F)</enum><header>Certification
by investigator</header><text>The Bureau investigator shall certify on the
transcript that the witness was duly sworn by him or her and that the
transcript is a true record of the testimony given by the witness, and the
Bureau investigator shall promptly deliver the transcript or send it by
registered or certified mail to the custodian.</text>
</subparagraph><subparagraph id="ID455c96db09a54ede8a824a3a8edfc6d9"><enum>(G)</enum><header>Copy of
transcript</header><text>The Bureau investigator shall furnish a copy of the
transcript (upon payment of reasonable charges for the transcript) to the
witness only, except that the Bureau may for good cause limit such witness to
inspection of the official transcript of his testimony.</text>
</subparagraph><subparagraph id="ID13cadecd482d47828d93c2bad5f4405c"><enum>(H)</enum><header>Witness
fees</header><text>Any witness appearing for the taking of oral testimony
pursuant to a civil investigative demand shall be entitled to the same fees and
mileage which are paid to witnesses in the district courts of the United
States.</text>
</subparagraph></paragraph></subsection><subsection id="ID4b932c92f355420fa9478cb5e1e2a89e"><enum>(d)</enum><header>Confidential
treatment of demand material</header>
<paragraph id="ID5c24056abdc1473988ed174c489fa52b"><enum>(1)</enum><header>In
general</header><text>Documentary materials and tangible things received as a
result of a civil investigative demand shall be subject to requirements and
procedures regarding confidentiality, in accordance with rules established by
the Bureau.</text>
</paragraph><paragraph id="ID5f0fbfe5e1b24d46b2907c5939fac4e9"><enum>(2)</enum><header>Disclosure to
congress</header><text>No rule established by the Bureau regarding the
confidentiality of materials submitted to, or otherwise obtained by, the Bureau
shall be intended to prevent disclosure to either House of Congress or to an
appropriate committee of the Congress, except that the Bureau is permitted to
adopt rules allowing prior notice to any party that owns or otherwise provided
the material to the Bureau and had designated such material as
confidential.</text>
</paragraph></subsection><subsection id="ID61f420546b8640bb8b87cab902a77c1e"><enum>(e)</enum><header>Petition for
enforcement</header>
<paragraph id="IDd17c16014872482b86adce9297b8c1ee"><enum>(1)</enum><header>In
general</header><text>Whenever any person fails to comply with any civil
investigative demand duly served upon him under this section, or whenever
satisfactory copying or reproduction of material requested pursuant to the
demand cannot be accomplished and such person refuses to surrender such
material, the Bureau, through such officers or attorneys as it may designate,
may file, in the district court of the United States for any judicial district
in which such person resides, is found, or transacts business, and serve upon
such person, a petition for an order of such court for the enforcement of this
section.</text>
</paragraph><paragraph id="ID8b3ed4fe8c3a47329e3e66652db411c8"><enum>(2)</enum><header>Service of
process</header><text>All process of any court to which application may be made
as provided in this subsection may be served in any judicial district.</text>
</paragraph></subsection><subsection id="ID8499ea81480049feab51c7cb1fb59526"><enum>(f)</enum><header>Petition for
order modifying or setting aside demand</header>
<paragraph id="ID4b616bf71ebd4a14ac475aa379b0cb66"><enum>(1)</enum><header>In
general</header><text>Not later than 20 days after the service of any civil
investigative demand upon any person under subsection (b), or at any time
before the return date specified in the demand, whichever period is shorter, or
within such period exceeding 20 days after service or in excess of such return
date as may be prescribed in writing, subsequent to service, by any Bureau
investigator named in the demand, such person may file with the Bureau a
petition for an order by the Bureau modifying or setting aside the
demand.</text>
</paragraph><paragraph id="IDb994b6e6c0934d2ab2c6d1e4ed52cfa2"><enum>(2)</enum><header>Compliance
during pendency</header><text>The time permitted for compliance with the demand
in whole or in part, as determined proper and ordered by the Bureau, shall not
run during the pendency of a petition under paragraph (1) at the Bureau, except
that such person shall comply with any portions of the demand not sought to be
modified or set aside.</text>
</paragraph><paragraph id="IDdae5287d1df14409b72240acd77798fe"><enum>(3)</enum><header>Specific
grounds</header><text>A petition under paragraph (1) shall specify each ground
upon which the petitioner relies in seeking relief, and may be based upon any
failure of the demand to comply with the provisions of this section, or upon
any constitutional or other legal right or privilege of such person.</text>
</paragraph></subsection><subsection id="ID2c772296dd0349dd9395a660cd6e8553"><enum>(g)</enum><header>Custodial
control</header><text>At any time during which any custodian is in custody or
control of any documentary material, tangible things, reports, answers to
questions, or transcripts of oral testimony given by any person in compliance
with any civil investigative demand, such person may file, in the district
court of the United States for the judicial district within which the office of
such custodian is situated, and serve upon such custodian, a petition for an
order of such court requiring the performance by such custodian of any duty
imposed upon him by this section or rule promulgated by the Bureau.</text>
</subsection><subsection id="ID88a7350673784cfb800b44914cb1d6e3"><enum>(h)</enum><header>Jurisdiction of
court</header>
<paragraph id="ID63cb9dcd5ea549a7be90dd9ca7ac5d24"><enum>(1)</enum><header>In
general</header><text>Whenever any petition is filed in any district court of
the United States under this section, such court shall have jurisdiction to
hear and determine the matter so presented, and to enter such order or orders
as may be required to carry out the provisions of this section.</text>
</paragraph><paragraph id="IDe70e4b28de1145f68c595588a3dbecc8"><enum>(2)</enum><header>Appeal</header><text>Any
final order entered as described in paragraph (1) shall be subject to appeal
pursuant to section 1291 of title 28, United States Code.</text>
</paragraph></subsection></section><section id="ID3ce12e1fef8a41dcb33565042a165ae0"><enum>1053.</enum><header>Hearings and
adjudication proceedings</header>
<subsection id="ID94fcccb198114827a73df7c9d87d2915"><enum>(a)</enum><header>In
general</header><text>The Bureau is authorized to conduct hearings and
adjudication proceedings with respect to any person in the manner prescribed by
chapter 5 of title 5, United States Code in order to ensure or enforce
compliance with—</text>
<paragraph id="ID473b29baaf9b47a8b80c991abbc6feaf"><enum>(1)</enum><text>the
provisions of this title, including any rules prescribed by the Bureau under
this title; and</text>
</paragraph><paragraph id="ID2a80f1e4d5ca41bab5930cdce05940b8"><enum>(2)</enum><text>any
other Federal law that the Bureau is authorized to enforce, including an
enumerated consumer law, and any regulations or order prescribed thereunder,
unless such Federal law specifically limits the Bureau from conducting a
hearing or adjudication proceeding and only to the extent of such
limitation.</text>
</paragraph></subsection><subsection id="IDfe914ff34bd543e7a722c2e7d2457984"><enum>(b)</enum><header>Special rules
for cease-and-desist proceedings</header>
<paragraph id="ID9ea2101bc58f402e8f29cd7522df6360"><enum>(1)</enum><header>Orders
authorized</header>
<subparagraph id="id5DFEDE54F7D14E669A409818B60F379D"><enum>(A)</enum><header>In
general</header><text>If, in the opinion of the Bureau, any covered person or
service provider is engaging or has engaged in an activity that violates a law,
rule, or any condition imposed in writing on the person by the Bureau, the
Bureau may, subject to sections 1024, 1025, and 1026, issue and serve upon the
covered person or service provider a notice of charges in respect
thereof.</text>
</subparagraph><subparagraph id="idE79EA1E24CC247AEB23D367C00941C40"><enum>(B)</enum><header>Content of
notice</header><text>The notice under subparagraph (A) shall contain a
statement of the facts constituting the alleged violation or violations, and
shall fix a time and place at which a hearing will be held to determine whether
an order to cease and desist should issue against the covered person or service
provider, such hearing to be held not earlier than 30 days nor later than 60
days after the date of service of such notice, unless an earlier or a later
date is set by the Bureau, at the request of any party so served.</text>
</subparagraph><subparagraph id="idBD8A07B6EA6E4EE4B9530F5B3CE81198"><enum>(C)</enum><header>Consent</header><text>Unless
the party or parties served under subparagraph (B) appear at the hearing
personally or by a duly authorized representative, such person shall be deemed
to have consented to the issuance of the cease-and-desist order.</text>
</subparagraph><subparagraph id="id3C586394780A4BEC90DE00C933A4CEFA"><enum>(D)</enum><header>Procedure</header><text>In
the event of consent under subparagraph (C), or if, upon the record, made at
any such hearing, the Bureau finds that any violation specified in the notice
of charges has been established, the Bureau may issue and serve upon the
covered person or service provider an order to cease and desist from the
violation or practice. Such order may, by provisions which may be mandatory or
otherwise, require the covered person or service provider to cease and desist
from the subject activity, and to take affirmative action to correct the
conditions resulting from any such violation.</text>
</subparagraph></paragraph><paragraph id="IDaa8f8dbfd4fd4e518891669f1a1e7a8b"><enum>(2)</enum><header>Effectiveness
of order</header><text>A cease-and-desist order shall become effective at the
expiration of 30 days after the date of service of an order under paragraph (1)
upon the covered person or service provider concerned (except in the case of a
cease-and-desist order issued upon consent, which shall become effective at the
time specified therein), and shall remain effective and enforceable as provided
therein, except to such extent as the order is stayed, modified, terminated, or
set aside by action of the Bureau or a reviewing court.</text>
</paragraph><paragraph id="ID71ed9624be6a42b6bf5aa21d8d7b9ca2"><enum>(3)</enum><header>Decision and
appeal</header><text>Any hearing provided for in this subsection shall be held
in the Federal judicial district or in the territory in which the residence or
principal office or place of business of the person is located unless the
person consents to another place, and shall be conducted in accordance with the
provisions of chapter 5 of title 5 of the United States Code. After such
hearing, and within 90 days after the Bureau has notified the parties that the
case has been submitted to the Bureau for final decision, the Bureau shall
render its decision (which shall include findings of fact upon which its
decision is predicated) and shall issue and serve upon each party to the
proceeding an order or orders consistent with the provisions of this section.
Judicial review of any such order shall be exclusively as provided in this
subsection. Unless a petition for review is timely filed in a court of appeals
of the United States, as provided in paragraph (4), and thereafter until the
record in the proceeding has been filed as provided in paragraph (4), the
Bureau may at any time, upon such notice and in such manner as the Bureau shall
determine proper, modify, terminate, or set aside any such order. Upon filing
of the record as provided, the Bureau may modify, terminate, or set aside any
such order with permission of the court.</text>
</paragraph><paragraph id="ID87dba78b049c499c8c521a227326b696"><enum>(4)</enum><header>Appeal to court
of appeals</header><text>Any party to any proceeding under this subsection may
obtain a review of any order served pursuant to this subsection (other than an
order issued with the consent of the person concerned) by the filing in the
court of appeals of the United States for the circuit in which the principal
office of the covered person is located, or in the United States Court of
Appeals for the District of Columbia Circuit, within 30 days after the date of
service of such order, a written petition praying that the order of the Bureau
be modified, terminated, or set aside. A copy of such petition shall be
forthwith transmitted by the clerk of the court to the Bureau, and thereupon
the Bureau shall file in the court the record in the proceeding, as provided in
section 2112 of title 28 of the United States Code. Upon the filing of such
petition, such court shall have jurisdiction, which upon the filing of the
record shall except as provided in the last sentence of paragraph (3) be
exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the
order of the Bureau. Review of such proceedings shall be had as provided in
chapter 7 of title 5 of the United States Code. The judgment and decree of the
court shall be final, except that the same shall be subject to review by the
Supreme Court of the United States, upon certiorari, as provided in section
1254 of title 28 of the United States Code.</text>
</paragraph><paragraph id="ID63aeac18acbe4c1fad01de52028a37c6"><enum>(5)</enum><header>No
stay</header><text>The commencement of proceedings for judicial review under
paragraph (4) shall not, unless specifically ordered by the court, operate as a
stay of any order issued by the Bureau.</text>
</paragraph></subsection><subsection id="ID4022fbc81d91494faa62dfa0a313d7e0"><enum>(c)</enum><header>Special rules
for temporary cease-and-desist proceedings</header>
<paragraph id="ID4fb5cced50c742e6b8f74fa3549392a3"><enum>(1)</enum><header>In
general</header><text>Whenever the Bureau determines that the violation
specified in the notice of charges served upon a person, including a service
provider, pursuant to subsection (b), or the continuation thereof, is likely to
cause the person to be insolvent or otherwise prejudice the interests of
consumers before the completion of the proceedings conducted pursuant to
subsection (b), the Bureau may issue a temporary order requiring the person to
cease and desist from any such violation or practice and to take affirmative
action to prevent or remedy such insolvency or other condition pending
completion of such proceedings. Such order may include any requirement
authorized under this subtitle. Such order shall become effective upon service
upon the person and, unless set aside, limited, or suspended by a court in
proceedings authorized by paragraph (2), shall remain effective and enforceable
pending the completion of the administrative proceedings pursuant to such
notice and until such time as the Bureau shall dismiss the charges specified in
such notice, or if a cease-and-desist order is issued against the person, until
the effective date of such order.</text>
</paragraph><paragraph id="ID22a78135d611412e92d078d41e1d4598"><enum>(2)</enum><header>Appeal</header><text>Not
later than 10 days after the covered person or service provider concerned has
been served with a temporary cease-and-desist order, the person may apply to
the United States district court for the judicial district in which the
residence or principal office or place of business of the person is located, or
the United States District Court for the District of Columbia, for an
injunction setting aside, limiting, or suspending the enforcement, operation,
or effectiveness of such order pending the completion of the administrative
proceedings pursuant to the notice of charges served upon the person under
subsection (b), and such court shall have jurisdiction to issue such
injunction.</text>
</paragraph><paragraph id="ID3cddc4ac943e4e389083fae3976939c2"><enum>(3)</enum><header>Incomplete or
inaccurate records</header>
<subparagraph id="ID551f8a7625d94855b2ff9884b98045fc"><enum>(A)</enum><header>Temporary
order</header><text>If a notice of charges served under subsection (b)
specifies, on the basis of particular facts and circumstances, that the books
and records of a covered person or service provider are so incomplete or
inaccurate that the Bureau is unable to determine the financial condition of
that person or the details or purpose of any transaction or transactions that
may have a material effect on the financial condition of that person, the
Bureau may issue a temporary order requiring—</text>
<clause id="ID6ef64412b6ff491f980e729d4557d1b9"><enum>(i)</enum><text>the
cessation of any activity or practice which gave rise, whether in whole or in
part, to the incomplete or inaccurate state of the books or records; or</text>
</clause><clause id="IDe62c207ecd9f45eb838a78eb5bd82641"><enum>(ii)</enum><text>affirmative
action to restore such books or records to a complete and accurate state, until
the completion of the proceedings under subsection (b)(1).</text>
</clause></subparagraph><subparagraph id="ID941575a079b842c39f6a583b7c4c4f13"><enum>(B)</enum><header>Effective
period</header><text>Any temporary order issued under subparagraph (A)—</text>
<clause id="IDce3fbd21898146ddb6f937c98cddf136"><enum>(i)</enum><text>shall
become effective upon service; and</text>
</clause><clause id="ID86694052498b4fbfb597cec67f1d7240"><enum>(ii)</enum><text>unless
set aside, limited, or suspended by a court in proceedings under paragraph (2),
shall remain in effect and enforceable until the earlier of—</text>
<subclause id="IDfee20ac0bc3949d1b2d9ee946cbded95"><enum>(I)</enum><text>the
completion of the proceeding initiated under subsection (b) in connection with
the notice of charges; or</text>
</subclause><subclause id="ID6e3f34c85ed74b239a3247ff645b93ad"><enum>(II)</enum><text>the
date the Bureau determines, by examination or otherwise, that the books and
records of the covered person or service provider are accurate and reflect the
financial condition thereof.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="ID3f61bc022eb243539881e05936df3de0"><enum>(d)</enum><header>Special rules
for enforcement of orders</header>
<paragraph id="ID5a4eb84e4b7c42109a6ec23d2c7401be"><enum>(1)</enum><header>In
general</header><text>The Bureau may in its discretion apply to the United
States district court within the jurisdiction of which the principal office or
place of business of the person is located, for the enforcement of any
effective and outstanding notice or order issued under this section, and such
court shall have jurisdiction and power to order and require compliance
herewith.</text>
</paragraph><paragraph id="ID9a12792db8e54b38b50cd0b6a7ecb22d"><enum>(2)</enum><header>Exception</header><text>Except
as otherwise provided in this subsection, no court shall have jurisdiction to
affect by injunction or otherwise the issuance or enforcement of any notice or
order or to review, modify, suspend, terminate, or set aside any such notice or
order.</text>
</paragraph></subsection><subsection id="ID219016e8ca934a0aa800eb9dd2c10438"><enum>(e)</enum><header>Rules</header><text>The
Bureau shall prescribe rules establishing such procedures as may be necessary
to carry out this section.</text>
</subsection></section><section id="IDb438ae6b95fb42d2b42c661c77b04a14"><enum>1054.</enum><header>Litigation
authority</header>
<subsection id="ID7b6cff77abdc47359819aa559a116e4d"><enum>(a)</enum><header>In
general</header><text>If any person violates a Federal consumer financial law,
the Bureau may, subject to sections 1024, 1025, and 1026, commence a civil
action against such person to impose a civil penalty or to seek all appropriate
legal and equitable relief including a permanent or temporary injunction as
permitted by law.</text>
</subsection><subsection id="ID20ea06e59b1a4e42b27ee6b8e2ff8562"><enum>(b)</enum><header>Representation</header><text>The
Bureau may act in its own name and through its own attorneys in enforcing any
provision of this title, rules thereunder, or any other law or regulation, or
in any action, suit, or proceeding to which the Bureau is a party.</text>
</subsection><subsection id="IDa72266dce57c4747a18647e3dee5be9c"><enum>(c)</enum><header>Compromise of
actions</header><text>The Bureau may compromise or settle any action if such
compromise is approved by the court.</text>
</subsection><subsection id="ID9d62ee0ec806437fadf1cb9ad662eda9"><enum>(d)</enum><header>Notice to the
attorney general</header><text>When commencing a civil action under Federal
consumer financial law, or any rule thereunder, the Bureau shall notify the
Attorney General and, with respect to a civil action against an insured
depository institution or insured credit union, the appropriate prudential
regulator.</text>
</subsection><subsection id="ID5aeaf013a44749b5b2641b79364dcadd"><enum>(e)</enum><header>Appearance
before the supreme court</header><text>The Bureau may represent itself in its
own name before the Supreme Court of the United States, provided that the
Bureau makes a written request to the Attorney General within the 10-day period
which begins on the date of entry of the judgment which would permit any party
to file a petition for writ of certiorari, and the Attorney General concurs
with such request or fails to take action within 60 days of the request of the
Bureau.</text>
</subsection><subsection id="ID17d4644747cb4f91b41fa086c1a0d95e"><enum>(f)</enum><header>Forum</header><text>Any
civil action brought under this title may be brought in a United States
district court or in any court of competent jurisdiction of a state in a
district in which the defendant is located or resides or is doing business, and
such court shall have jurisdiction to enjoin such person and to require
compliance with any Federal consumer financial law.</text>
</subsection><subsection id="ID03439f2d2ce94a629691b2239227a15c"><enum>(g)</enum><header>Time for
bringing action</header>
<paragraph id="IDa6c2dabbd8a54b63abe6de82279e990e"><enum>(1)</enum><header>In
general</header><text>Except as otherwise permitted by law or equity, no action
may be brought under this title more than 3 years after the date of discovery
of the violation to which an action relates.</text>
</paragraph><paragraph id="IDffc5c09213f7498b8baf207d7cc3fb45"><enum>(2)</enum><header>Limitations
under other Federal laws</header>
<subparagraph id="IDd0d0d4454225480d8996197de19ca8fa"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, an action arising under
this title does not include claims arising solely under enumerated consumer
laws.</text>
</subparagraph><subparagraph id="IDa614830c52f047b58762770b1d0954cc"><enum>(B)</enum><header>Bureau
authority</header><text>In any action arising solely under an enumerated
consumer law, the Bureau may commence, defend, or intervene in the action in
accordance with the requirements of that provision of law, as
applicable.</text>
</subparagraph><subparagraph id="ID901361df1b624fa3afb61c04085a2855"><enum>(C)</enum><header>Transferred
authority</header><text>In any action arising solely under laws for which
authorities were transferred under subtitles F and H, the Bureau may commence,
defend, or intervene in the action in accordance with the requirements of that
provision of law, as applicable.</text>
</subparagraph></paragraph></subsection></section><section id="IDac48e18aab964e2ba1b63b5cbbc38074"><enum>1055.</enum><header>Relief
available</header>
<subsection id="ID55870bc7f6f3429897acd4e3cb273410"><enum>(a)</enum><header>Administrative
proceedings or court actions</header>
<paragraph id="ID6df8ded7a2c04d6b9d5ed8b2d2284b96"><enum>(1)</enum><header>Jurisdiction</header><text>The
court (or the Bureau, as the case may be) in an action or adjudication
proceeding brought under Federal consumer financial law, shall have
jurisdiction to grant any appropriate legal or equitable relief with respect to
a violation of Federal consumer financial law, including a violation of a rule
or order prescribed under a Federal consumer financial law.</text>
</paragraph><paragraph id="IDe0ed7373448c4a7a945cbc3926403530"><enum>(2)</enum><header>Relief</header><text>Relief
under this section may include, without limitation—</text>
<subparagraph id="ID4f9c8569e5d246bca8bc1c0941697ddc"><enum>(A)</enum><text>rescission or
reformation of contracts;</text>
</subparagraph><subparagraph id="ID29253fd3a16f4187924f7c77691f2436"><enum>(B)</enum><text>refund of moneys
or return of real property;</text>
</subparagraph><subparagraph id="IDfaa854a19dd944a8a10db5218f6898be"><enum>(C)</enum><text>restitution;</text>
</subparagraph><subparagraph id="IDffc54a82d79f4b13a395b9264591499e"><enum>(D)</enum><text>disgorgement or
compensation for unjust enrichment;</text>
</subparagraph><subparagraph id="ID802b4b06f9ab4c14a42c0730a62b56ee"><enum>(E)</enum><text>payment of
damages or other monetary relief;</text>
</subparagraph><subparagraph id="ID756eaaa802d44760b6057a5280c60d14"><enum>(F)</enum><text>public
notification regarding the violation, including the costs of
notification;</text>
</subparagraph><subparagraph id="ID382c14ba4f594e998586842d1a2efeca"><enum>(G)</enum><text>limits on the
activities or functions of the person; and</text>
</subparagraph><subparagraph id="IDc3a84c01665243bd9b31ac27581d8a17"><enum>(H)</enum><text>civil money
penalties, as set forth more fully in subsection (c).</text>
</subparagraph></paragraph><paragraph id="ID3d970fb131b644838d7326ea85c92c11"><enum>(3)</enum><header>No
exemplary or punitive damages</header><text>Nothing in this subsection shall be
construed as authorizing the imposition of exemplary or punitive
damages.</text>
</paragraph></subsection><subsection id="ID480325e4e9fb4f5d8da32572f6c0901c"><enum>(b)</enum><header>Recovery of
costs</header><text>In any action brought by the Bureau, a State attorney
general, or any State regulator to enforce any Federal consumer financial law,
the Bureau, the State attorney general, or the State regulator may recover its
costs in connection with prosecuting such action if the Bureau, the State
attorney general, or the State regulator is the prevailing party in the
action.</text>
</subsection><subsection id="ID8b78ffdf48734becaf5c0b8f4b8bdb6a"><enum>(c)</enum><header>Civil money
penalty in court and administrative actions</header>
<paragraph id="ID8a20bb41063448ceb85485f0829345aa"><enum>(1)</enum><header>In
general</header><text>Any person that violates, through any act or omission,
any provision of Federal consumer financial law shall forfeit and pay a civil
penalty pursuant to this subsection.</text>
</paragraph><paragraph id="id7FFAF1AB9216445F8A74E22707EFD794"><enum>(2)</enum><header>Penalty
amounts</header>
<subparagraph id="IDd5ebc13b24194d10a58b7c87753bc366"><enum>(A)</enum><header>First
tier</header><text>For any violation of a law, rule, or final order or
condition imposed in writing by the Bureau, a civil penalty may not exceed
$5,000 for each day during which such violation or failure to pay
continues.</text>
</subparagraph><subparagraph id="IDabbf220567644746a5ffac61e24a8a14"><enum>(B)</enum><header>Second
tier</header><text>Notwithstanding paragraph (A), for any person that
recklessly engages in a violation of a Federal consumer financial law, a civil
penalty may not exceed $25,000 for each day during which such violation
continues.</text>
</subparagraph><subparagraph id="ID74589e17fad04a52b91e0db981b92d33"><enum>(C)</enum><header>Third
tier</header><text>Notwithstanding subparagraphs (A) and (B), for any person
that knowingly violates a Federal consumer financial law, a civil penalty may
not exceed $1,000,000 for each day during which such violation
continues.</text>
</subparagraph></paragraph><paragraph id="ID58235d1c4e054edc94b7719296a90383"><enum>(3)</enum><header>Mitigating
factors</header><text>In determining the amount of any penalty assessed under
paragraph (2), the Bureau or the court shall take into account the
appropriateness of the penalty with respect to—</text>
<subparagraph id="ID972deba7309f427e9d6f56e0d388eab0"><enum>(A)</enum><text>the size of
financial resources and good faith of the person charged;</text>
</subparagraph><subparagraph id="IDe10998f7d54b4dab94562146829bdbc1"><enum>(B)</enum><text>the gravity of
the violation or failure to pay;</text>
</subparagraph><subparagraph id="ID9138c3508f7f4f6fa39700adb0e1bc37"><enum>(C)</enum><text>the severity of
the risks to or losses of the consumer, which may take into account the number
of products or services sold or provided;</text>
</subparagraph><subparagraph id="ID84a4b748518543658d25d740cbe11867"><enum>(D)</enum><text>the history of
previous violations; and</text>
</subparagraph><subparagraph id="ID66f8a6067a3343679cdd9319451d5e88"><enum>(E)</enum><text>such other
matters as justice may require.</text>
</subparagraph></paragraph><paragraph id="ID130340ad0ffb4751b70abcc1575bab98"><enum>(4)</enum><header>Authority to
modify or remit penalty</header><text>The Bureau may compromise, modify, or
remit any penalty which may be assessed or had already been assessed under
paragraph (2). The amount of such penalty, when finally determined, shall be
exclusive of any sums owed by the person to the United States in connection
with the costs of the proceeding, and may be deducted from any sums owing by
the United States to the person charged.</text>
</paragraph><paragraph id="IDc25dee44126c4ba2987b3d51b0bc80dc"><enum>(5)</enum><header>Notice and
hearing</header><text>No civil penalty may be assessed under this subsection
with respect to a violation of any Federal consumer financial law,
unless—</text>
<subparagraph id="IDe9ed77d3ffb445fdab50816283b7fb43"><enum>(A)</enum><text>the Bureau gives
notice and an opportunity for a hearing to the person accused of the violation;
or</text>
</subparagraph><subparagraph id="ID1948581dc2ac474e9c11dd3df0664a4d"><enum>(B)</enum><text>the appropriate
court has ordered such assessment and entered judgment in favor of the
Bureau.</text>
</subparagraph></paragraph></subsection></section><section id="IDa65a25f5e064442dbe3473adad3232bc"><enum>1056.</enum><header>Referrals for
criminal proceedings</header><text display-inline="no-display-inline">If the
Bureau obtains evidence that any person, domestic or foreign, has engaged in
conduct that may constitute a violation of Federal criminal law, the Bureau
shall have the power to transmit such evidence to the Attorney General of the
United States, who may institute criminal proceedings under appropriate law.
Nothing in this section affects any other authority of the Bureau to disclose
information.</text>
</section><section id="ID2f622de2fe46427f83945a447e5ce51b"><enum>1057.</enum><header>Employee
protection</header>
<subsection id="ID747698a2a64c4e8c87b6e1b9aed7a6b8"><enum>(a)</enum><header>In
general</header><text>No covered person or service provider shall terminate or
in any other way discriminate against, or cause to be terminated or
discriminated against, any covered employee or any authorized representative of
covered employees by reason of the fact that such employee or representative,
whether at the initiative of the employee or in the ordinary course of the
duties of the employee (or any person acting pursuant to a request of the
employee), has—</text>
<paragraph id="ID69018123379844768c8723403ca31dc2"><enum>(1)</enum><text>provided, caused
to be provided, or is about to provide or cause to be provided, information to
the employer, the Bureau, or any other State, local, or Federal, government
authority or law enforcement agency relating to any violation of, or any act or
omission that the employee reasonably believes to be a violation of, any
provision of this title or any other provision of law that is subject to the
jurisdiction of the Bureau, or any rule, order, standard, or prohibition
prescribed by the Bureau;</text>
</paragraph><paragraph id="ID250aad43af004ca7a271caeb1e9de6c6"><enum>(2)</enum><text>testified or will
testify in any proceeding resulting from the administration or enforcement of
any provision of this title or any other provision of law that is subject to
the jurisdiction of the Bureau, or any rule, order, standard, or prohibition
prescribed by the Bureau;</text>
</paragraph><paragraph id="ID7fc1e857f270425db11cd1fb3ad2d49a"><enum>(3)</enum><text>filed,
instituted, or caused to be filed or instituted any proceeding under any
Federal consumer financial law; or</text>
</paragraph><paragraph id="ID0be1361074b54dea9634dfd5ddf8ed8d"><enum>(4)</enum><text>objected to, or
refused to participate in, any activity, policy, practice, or assigned task
that the employee (or other such person) reasonably believed to be in violation
of any law, rule, order, standard, or prohibition, subject to the jurisdiction
of, or enforceable by, the Bureau.</text>
</paragraph></subsection><subsection id="ID2cb90ea58b094d76af67f8a3cdb5d5cf"><enum>(b)</enum><header>Definition of
covered employee</header><text>For the purposes of this section, the term
<term>covered employee</term> means any individual performing tasks related to
the offering or provision of a consumer financial product or service.</text>
</subsection><subsection id="IDeae5c6dc739045db86596e70ce60a1db"><enum>(c)</enum><header>Procedures and
Timetables</header>
<paragraph id="ID6b6b40e9a1554b9fb5446d2837984350"><enum>(1)</enum><header>Complaint</header>
<subparagraph id="idA6313751A8B743F3A4C4E023BCA1DBB2"><enum>(A)</enum><header>In
general</header><text>A person who believes that he or she has been discharged
or otherwise discriminated against by any person in violation of subsection (a)
may, not later than 180 days after the date on which such alleged violation
occurs, file (or have any person file on his or her behalf) a complaint with
the Secretary of Labor alleging such discharge or discrimination and
identifying the person responsible for such act.</text>
</subparagraph><subparagraph id="idF7D3E0B05228409AA05DD485120978D0"><enum>(B)</enum><header>Actions of
secretary of labor</header><text>Upon receipt of such a complaint, the
Secretary of Labor shall notify, in writing, the person named in the complaint
who is alleged to have committed the violation, of —</text>
<clause id="IDd043238f14aa4934831ea325deb1c5cb"><enum>(i)</enum><text>the
filing of the complaint;</text>
</clause><clause id="IDd2a2295af5c949498817b88d75e25bd1"><enum>(ii)</enum><text>the
allegations contained in the complaint;</text>
</clause><clause id="IDc298f73c26fb4c0a8849a75de5e570de"><enum>(iii)</enum><text>the
substance of evidence supporting the complaint; and</text>
</clause><clause id="IDed673ce6b98644c0955a3fcbab050cf0"><enum>(iv)</enum><text>opportunities
that will be afforded to such person under paragraph (2).</text>
</clause></subparagraph></paragraph><paragraph id="ID58c69b432ef04443906a85375b4b5d08"><enum>(2)</enum><header>Investigation
by Secretary of Labor</header>
<subparagraph id="id15317B22A12642C190A03EE21747E1C3"><enum>(A)</enum><header>In
general</header><text>Not later than 60 days after the date of receipt of a
complaint filed under paragraph (1), and after affording the complainant and
the person named in the complaint who is alleged to have committed the
violation that is the basis for the complaint an opportunity to submit to the
Secretary of Labor a written response to the complaint and an opportunity to
meet with a representative of the Secretary of Labor to present statements from
witnesses, the Secretary of Labor shall—</text>
<clause id="id7931F186A2B84F01AE59B6895FFB68BD"><enum>(i)</enum><text>initiate an
investigation and determine whether there is reasonable cause to believe that
the complaint has merit; and</text>
</clause><clause id="idCDA478053C8A4813B4C64EF3E41D52D4"><enum>(ii)</enum><text>notify
the complainant and the person alleged to have committed the violation of
subsection (a), in writing, of such determination.</text>
</clause></subparagraph><subparagraph id="idDA957F50C02448299B9D37A7408DCD46"><enum>(B)</enum><header>Notice of
relief available</header><text>If the Secretary of Labor concludes that there
is reasonable cause to believe that a violation of subsection (a) has occurred,
the Secretary of Labor shall, together with the notice under subparagraph
(A)(ii), issue a preliminary order providing the relief prescribed by paragraph
(4)(B).</text>
</subparagraph><subparagraph id="idD6168C1DECC5480781D49953F40DD099"><enum>(C)</enum><header>Request for
hearing</header><text>Not later than 30 days after the date of receipt of
notification of a determination of the Secretary of Labor under this paragraph,
either the person alleged to have committed the violation or the complainant
may file objections to the findings or preliminary order, or both, and request
a hearing on the record. The filing of such objections shall not operate to
stay any reinstatement remedy contained in the preliminary order. Any such
hearing shall be conducted expeditiously, and if a hearing is not requested in
such 30-day period, the preliminary order shall be deemed a final order that is
not subject to judicial review.</text>
</subparagraph></paragraph><paragraph id="id28F0C361F68241329EFD806691ED61C6"><enum>(3)</enum><header>Grounds for
determination of complaints</header>
<subparagraph id="idD0D7DB08BA6D4C30AD56918BD72DE817"><enum>(A)</enum><header>In
general</header><text>The Secretary of Labor shall dismiss a complaint filed
under this subsection, and shall not conduct an investigation otherwise
required under paragraph (2), unless the complainant makes a prima facie
showing that any behavior described in paragraphs (1) through (4) of subsection
(a) was a contributing factor in the unfavorable personnel action alleged in
the complaint.</text>
</subparagraph><subparagraph id="id2E450687F8604992A4EAB1CF5368C285"><enum>(B)</enum><header>Rebuttal
evidence</header><text>Notwithstanding a finding by the Secretary of Labor that
the complainant has made the showing required under subparagraph (A), no
investigation otherwise required under paragraph (2) shall be conducted, if the
employer demonstrates, by clear and convincing evidence, that the employer
would have taken the same unfavorable personnel action in the absence of that
behavior.</text>
</subparagraph><subparagraph id="id8CDE49BF2BB3456D8A97CBCA0DD8A78A"><enum>(C)</enum><header>Evidentiary
standards</header><text>The Secretary of Labor may determine that a violation
of subsection (a) has occurred only if the complainant demonstrates that any
behavior described in paragraphs (1) through (4) of subsection (a) was a
contributing factor in the unfavorable personnel action alleged in the
complaint. Relief may not be ordered under subparagraph (A) if the employer
demonstrates by clear and convincing evidence that the employer would have
taken the same unfavorable personnel action in the absence of that
behavior.</text>
</subparagraph></paragraph><paragraph id="IDca106db11e60440dbcc4599380118596"><enum>(4)</enum><header>Issuance of
final orders; review procedures</header>
<subparagraph id="idA9330B24465F46B1B194351F57C156ED"><enum>(A)</enum><header>Timing</header><text>Not
later than 120 days after the date of conclusion of any hearing under paragraph
(2), the Secretary of Labor shall issue a final order providing the relief
prescribed by this paragraph or denying the complaint. At any time before
issuance of a final order, a proceeding under this subsection may be terminated
on the basis of a settlement agreement entered into by the Secretary of Labor,
the complainant, and the person alleged to have committed the violation.</text>
</subparagraph><subparagraph id="id670FC948F1034C6D8D5AA2A285D659B5"><enum>(B)</enum><header>Penalties</header>
<clause id="id7A5C00C4B7C841E28235B17DBC83FD4A"><enum>(i)</enum><header>Order
of Secretary of labor</header><text>If, in response to a complaint filed under
paragraph (1), the Secretary of Labor determines that a violation of subsection
(a) has occurred, the Secretary of Labor shall order the person who committed
such violation—</text>
<subclause id="id5F7933B6310C4AACAD14EFD2139D9F7F"><enum>(I)</enum><text>to
take affirmative action to abate the violation;</text>
</subclause><subclause id="idCC38C839BDFB48F5B838E1647D8ED16E"><enum>(II)</enum><text>to
reinstate the complainant to his or her former position, together with
compensation (including back pay) and restore the terms, conditions, and
privileges associated with his or her employment; and</text>
</subclause><subclause id="id63BD772DEFDD450AB4BB094AECB26368"><enum>(III)</enum><text>to
provide compensatory damages to the complainant.</text>
</subclause></clause><clause id="id69B05038B8154446A20D9D06C51E7EB5"><enum>(ii)</enum><header>Penalty</header><text>If
an order is issued under clause (i), the Secretary of Labor, at the request of
the complainant, shall assess against the person against whom the order is
issued, a sum equal to the aggregate amount of all costs and expenses
(including attorney fees and expert witness fees) reasonably incurred, as
determined by the Secretary of Labor, by the complainant for, or in connection
with, the bringing of the complaint upon which the order was issued.</text>
</clause></subparagraph><subparagraph id="id39F82D1594224ABDB85EABC8C77F7784"><enum>(C)</enum><header>Penalty for
frivolous claims</header><text>If the Secretary of Labor finds that a complaint
under paragraph (1) is frivolous or has been brought in bad faith, the
Secretary of Labor may award to the prevailing employer a reasonable attorney
fee, not exceeding $1,000, to be paid by the complainant.</text>
</subparagraph><subparagraph id="idB226191AE16A4C84ACF437E26E27DE61"><enum>(D)</enum><header>De novo
review</header>
<clause id="id9D7AAEAC7AF441C5996123B5A41ED77D"><enum>(i)</enum><header>Failure of the
Secretary to act</header><text>If the Secretary of Labor has not issued a final
order within 210 days after the date of filing of a complaint under this
subsection, or within 90 days after the date of receipt of a written
determination, the complainant may bring an action at law or equity for de novo
review in the appropriate district court of the United States having
jurisdiction, which shall have jurisdiction over such an action without regard
to the amount in controversy, and which action shall, at the request of either
party to such action, be tried by the court with a jury.</text>
</clause><clause id="idA87217C196D24956BFCFCC65ADBF873B"><enum>(ii)</enum><header>Procedures</header><text>A
proceeding under clause (i) shall be governed by the same legal burdens of
proof specified in paragraph (3). The court shall have jurisdiction to grant
all relief necessary to make the employee whole, including injunctive relief
and compensatory damages, including—</text>
<subclause id="ID35188efc656e4a699ea2e3d97c70d663"><enum>(I)</enum><text>reinstatement
with the same seniority status that the employee would have had, but for the
discharge or discrimination;</text>
</subclause><subclause id="ID998d7872a2384a68943157c88cd10dc5"><enum>(II)</enum><text>the
amount of back pay, with interest; and</text>
</subclause><subclause id="ID64457c7a26b74e0c8dc6fa261b441c10"><enum>(III)</enum><text>compensation
for any special damages sustained as a result of the discharge or
discrimination, including litigation costs, expert witness fees, and reasonable
attorney fees.</text>
</subclause></clause></subparagraph><subparagraph id="id83564C817A3E44D8815960957F8470F7"><enum>(E)</enum><header>Other
appeals</header><text>Unless the complainant brings an action under
subparagraph (D), any person adversely affected or aggrieved by a final order
issued under subparagraph (A) may file a petition for review of the order in
the United States Court of Appeals for the circuit in which the violation with
respect to which the order was issued, allegedly occurred or the circuit in
which the complainant resided on the date of such violation, not later than 60
days after the date of the issuance of the final order of the Secretary of
Labor under subparagraph (A). Review shall conform to chapter 7 of title 5,
United States Code. The commencement of proceedings under this subparagraph
shall not, unless ordered by the court, operate as a stay of the order. An
order of the Secretary of Labor with respect to which review could have been
obtained under this subparagraph shall not be subject to judicial review in any
criminal or other civil proceeding.</text>
</subparagraph></paragraph><paragraph id="ID630d083be4fa4211af70b1e4ca81048b"><enum>(5)</enum><header>Failure to
comply with order</header>
<subparagraph id="id41DBB05CB95E4571AF0BF50EF119B4B9"><enum>(A)</enum><header>Actions by the
secretary</header><text>If any person has failed to comply with a final order
issued under paragraph (4), the Secretary of Labor may file a civil action in
the United States district court for the district in which the violation was
found to have occurred, or in the United States district court for the District
of Columbia, to enforce such order. In actions brought under this paragraph,
the district courts shall have jurisdiction to grant all appropriate relief
including injunctive relief and compensatory damages.</text>
</subparagraph><subparagraph id="id669A8F099C42472490B13F0F27883333"><enum>(B)</enum><header>Civil actions
to compel compliance</header><text>A person on whose behalf an order was issued
under paragraph (4) may commence a civil action against the person to whom such
order was issued to require compliance with such order. The appropriate United
States district court shall have jurisdiction, without regard to the amount in
controversy or the citizenship of the parties, to enforce such order.</text>
</subparagraph><subparagraph id="id4A3B52DE9E3945659D36F0F650C4CE7E"><enum>(C)</enum><header>Award of costs
authorized</header><text>The court, in issuing any final order under this
paragraph, may award costs of litigation (including reasonable attorney and
expert witness fees) to any party, whenever the court determines such award is
appropriate.</text>
</subparagraph><subparagraph id="idAE6E1EE40E744F5192D3E30D7C9C0165"><enum>(D)</enum><header>Mandamus
proceedings</header><text>Any nondiscretionary duty imposed by this section
shall be enforceable in a mandamus proceeding brought under section 1361 of
title 28, United States Code.</text>
</subparagraph></paragraph></subsection><subsection id="IDf75f4d4961104d08b1410b7064b2a7a3"><enum>(d)</enum><header>Unenforceability
of certain agreements</header>
<paragraph id="IDba97bdbb6f7145acbdfe266a5ce0e3c5"><enum>(1)</enum><header>No
waiver of rights and remedies</header><text>Except as provided under paragraph
(3), and notwithstanding any other provision of law, the rights and remedies
provided for in this section may not be waived by any agreement, policy, form,
or condition of employment, including by any predispute arbitration
agreement.</text>
</paragraph><paragraph id="IDf5a7d65437d04ec18db475ae71ec7005"><enum>(2)</enum><header>No
Predispute arbitration agreements</header><text>Except as provided under
paragraph (3), and notwithstanding any other provision of law, no predispute
arbitration agreement shall be valid or enforceable to the extent that it
requires arbitration of a dispute arising under this section.</text>
</paragraph><paragraph id="ID269e1c8a50de404b8ae276e005987b1a"><enum>(3)</enum><header>Exception</header><text>Notwithstanding
paragraphs (1) and (2), an arbitration provision in a collective bargaining
agreement shall be enforceable as to disputes arising under subsection (a)(4),
unless the Bureau determines, by rule, that such provision is inconsistent with
the purposes of this title.</text>
</paragraph></subsection></section><section id="IDb91c59b88c9d43c191daf2b3949f02f5"><enum>1058.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date.</text>
</section></subtitle><subtitle id="id6011340F08554451A1909329DDE194E9"><enum>F</enum><header>Transfer of
Functions and Personnel; Transitional Provisions</header>
<section id="id001A428045BF44DCA31B2107B799897A"><enum>1061.</enum><header>Transfer of
consumer financial protection functions</header>
<subsection id="ID39395c01000042a9ad91d7aff112d662"><enum>(a)</enum><header>Defined
terms</header><text>For purposes of this subtitle—</text>
<paragraph id="idEE3C73AD1D5C433EB7229F41BED81322"><enum>(1)</enum><text>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 offering or
provision of consumer financial products or services; and</text>
</paragraph><paragraph commented="no" id="id56F70C15EC8E469AAA98BB96B12BF903"><enum>(2)</enum><text>the terms
<quote>transferor agency</quote> and <quote>transferor agencies</quote> mean,
respectively—</text>
<subparagraph commented="no" id="idD623DBA7EDD74E5B82BEF235DA8BA34D"><enum>(A)</enum><text>the Board of
Governors (and any Federal reserve bank, as the context requires), the Federal
Deposit Insurance Corporation, the Federal Trade Commission, the National
Credit Union Administration, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, and the Department of Housing and Urban
Development, and the heads of those agencies; and</text>
</subparagraph><subparagraph commented="no" id="id4785EBE3CD1B4EF5BA022674453FCB15"><enum>(B)</enum><text>the agencies
listed in subparagraph (A), collectively.</text>
</subparagraph></paragraph></subsection><subsection id="IDd44c9559a0bf44b6a59e7a81c5deb772"><enum>(b)</enum><header>In
general</header><text>Except as provided in subsection (c), consumer financial
protection functions are transferred as follows:</text>
<paragraph id="ID8bf7c2b7e04b42c2b8a958a1728ae2bb"><enum>(1)</enum><header>Board of
governors</header>
<subparagraph id="ID22ce5c5364b04e54891c843af8c8e3cf"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Board of Governors are transferred to the Bureau.</text>
</subparagraph><subparagraph id="ID2d008f5be4e542ffb2c098f2f4148623"><enum>(B)</enum><header>Board of
governors authority</header><text>The Bureau shall have all powers and duties
that were vested in the Board of Governors, relating to consumer financial
protection functions, on the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="IDe627ad9b9ddd4a3190d7be24c1c93f03"><enum>(2)</enum><header>Comptroller of
the currency</header>
<subparagraph id="ID57e80cbb779c4c8b9bdfc56d09d7b51b"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Comptroller of the Currency are transferred to the Bureau.</text>
</subparagraph><subparagraph id="ID9856eba0269445c493f32ede85b18969"><enum>(B)</enum><header>Comptroller
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Comptroller of the Currency, relating to consumer financial
protection functions, on the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID7b70a949c1ef4b74975b8cb354887505"><enum>(3)</enum><header>Director of the
office of thrift supervision</header>
<subparagraph id="ID43e6be864e7b4deb8c5600012b1ca73b"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Director of the Office of Thrift Supervision are transferred to the
Bureau.</text>
</subparagraph><subparagraph id="ID81b0afe9390548b7885738522eda3286"><enum>(B)</enum><header>Director
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Director of the Office of Thrift Supervision, relating to
consumer financial protection functions, on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph id="ID9933f9e2a7024a7b8d41e9cc45bdf2fa"><enum>(4)</enum><header>Federal deposit
insurance corporation</header>
<subparagraph id="IDe672162123534872889050a6a891ab97"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Federal Deposit Insurance Corporation are transferred to the Bureau.</text>
</subparagraph><subparagraph id="IDb01d29a334c040298b7a3753b2de1209"><enum>(B)</enum><header>Corporation
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Federal Deposit Insurance Corporation, relating to consumer
financial protection functions, on the day before the designated transfer
date.</text>
</subparagraph></paragraph><paragraph id="IDc76dd208e256405287615400205cfbff"><enum>(5)</enum><header>Federal trade
commission</header>
<subparagraph id="IDfcbd25b662824e3a9f18c22fe110f04a"><enum>(A)</enum><header>Transfer of
functions</header><text>Except as provided in subparagraph (C), all consumer
financial protection functions of the Federal Trade Commission are transferred
to the Bureau.</text>
</subparagraph><subparagraph id="IDcf341545a3b1458eaebca14e524adc0e"><enum>(B)</enum><header>Commission
authority</header><text>Except as provided in subparagraph (C), the Bureau
shall have all powers and duties that were vested in the Federal Trade
Commission relating to consumer financial protection functions on the day
before the designated transfer date.</text>
</subparagraph><subparagraph id="ID4ec8c4b3f6db4b92ad6ce9386cca55a8"><enum>(C)</enum><header>Continuation of
certain commission authorities</header><text>Notwithstanding subparagraphs (A)
and (B), the Federal Trade Commission shall continue to have authority to
enforce, and issue rules with respect to—</text>
<clause id="ID031e1300930e4b2fa3cd2183ac2136ef"><enum>(i)</enum><text>the
Credit Repair Organizations Act (15 U.S.C. 1679 et seq.);</text>
</clause><clause id="ID70eda3c266864888be8bd949fefae6b3"><enum>(ii)</enum><text>section 5 of the
Federal Trade Commission Act (15 U.S.C. 45); and</text>
</clause><clause id="ID7682dd9bbd2c4b3dbff912c4e613f444"><enum>(iii)</enum><text>the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6101 et
seq.).</text>
</clause></subparagraph></paragraph><paragraph id="ID826746b9fe3e4e8dbb9e3d5988a0454c"><enum>(6)</enum><header>National credit
union administration</header>
<subparagraph id="ID2bfc0903a49945a28ec5cab23373de51"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
National Credit Union Administration are transferred to the Bureau.</text>
</subparagraph><subparagraph id="ID50e3072ccea640f19ceed62bcb73c511"><enum>(B)</enum><header>National credit
union administration authority</header><text>The Bureau shall have all powers
and duties that were vested in the National Credit Union Administration,
relating to consumer financial protection functions, on the day before the
designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID501584669b714631acba18dbce2a1d6f"><enum>(7)</enum><header>Department of
housing and urban development</header>
<subparagraph id="IDaeac2a8da31e4a45a1da6282bf9bb2ea"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer protection functions of the Secretary of
the Department of Housing and Urban Development relating to the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) and the Secure and
Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5102 et seq.)
are transferred to the Bureau.</text>
</subparagraph><subparagraph id="ID9582ed65a3894e509a336a0573d8d002"><enum>(B)</enum><header>Authority of
the Department of housing and urban development</header><text>The Bureau shall
have all powers and duties that were vested in the Secretary of the Department
of Housing and Urban Development relating to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et seq.), and the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.), on the
day before the designated transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="IDfa26d4c47d324bccad25a7a00e713ddf"><enum>(c)</enum><header>Transfers of
functions subject to examination and enforcement authority remaining with
transferor agencies</header><text>The transfers of functions in subsection (b)
do not affect the authority of the agencies identified in subsection (b) from
conducting examinations or initiating and maintaining enforcement proceedings,
including performing appropriate supervisory and support functions relating
thereto, in accordance with sections 1024, 1025, and 1026.</text>
</subsection><subsection id="IDc3dd72d73cd240e19b83032489d3c758"><enum>(d)</enum><header>Effective
date</header><text>Subsections (b) and (c) shall become effective on the
designated transfer date.</text>
</subsection></section><section id="ID73c67bf6466a48a29ea797fc8c25427c"><enum>1062.</enum><header>Designated
transfer date</header>
<subsection id="ID341969510749424eae9de5d75c688447"><enum>(a)</enum><header>In
general</header><text>Not later than 60 days after the date of enactment of
this Act, the Secretary shall—</text>
<paragraph id="IDdceb7c99e44a4a1fb7ff3534ed79d78a"><enum>(1)</enum><text>in
consultation with the Chairman of the Board of Governors, the Chairperson of
the Corporation, the Chairman of the Federal Trade Commission, the Chairman of
the National Credit Union Administration Board, the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, the Secretary of
the Department of Housing and Urban Development, and the Director of the Office
of Management and Budget, designate a single calendar date for the transfer of
functions to the Bureau under section 1061; and</text>
</paragraph><paragraph id="ID55ac30a082764111a64e525a0409252f"><enum>(2)</enum><text>publish notice of
that designated date in the Federal Register.</text>
</paragraph></subsection><subsection id="ID1d07b35ff120456d9afddce89aaaf448"><enum>(b)</enum><header>Changing
designation</header><text>The Secretary—</text>
<paragraph id="IDb62b4cdabb64489a95862af4bfd134e9"><enum>(1)</enum><text>may,
in consultation with the Chairman of the Board of Governors, the Chairperson of
the Federal Deposit Insurance Corporation, the Chairman of the Federal Trade
Commission, the Chairman of the National Credit Union Administration Board, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Secretary of the Department of Housing and Urban Development, and the
Director of the Office of Management and Budget, change the date designated
under subsection (a); and</text>
</paragraph><paragraph id="ID7c62fa53ac644bc88835bff51e273adc"><enum>(2)</enum><text>shall publish
notice of any changed designated date in the Federal Register.</text>
</paragraph></subsection><subsection id="ID6c5c6724a2c648e0b61c0664deded4bd"><enum>(c)</enum><header>Permissible
dates</header>
<paragraph id="ID079e32f5fc724c62a29f09cfa30c7071"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), any date designated
under this section shall be not earlier than 180 days, nor later than 18
months, after the date of enactment of this Act.</text>
</paragraph><paragraph id="ID428e9d42a8164cb99f27a7ebe4d6a826"><enum>(2)</enum><header>Extension of
time</header><text>The Secretary may designate a date that is later than 18
months after the date of enactment of this Act if the Secretary transmits to
appropriate committees of Congress—</text>
<subparagraph id="IDdedf06de40c6451dac0258063dfc4865"><enum>(A)</enum><text>a
written determination that orderly implementation of this title is not feasible
before the date that is 18 months after the date of enactment of this
Act;</text>
</subparagraph><subparagraph id="IDe13ee438b92747d9985573434eccc854"><enum>(B)</enum><text>an explanation of
why an extension is necessary for the orderly implementation of this title;
and</text>
</subparagraph><subparagraph id="IDd346ac006ca54ad1a6502fed16e3fd1e"><enum>(C)</enum><text>a
description of the steps that will be taken to effect an orderly and timely
implementation of this title within the extended time period.</text>
</subparagraph></paragraph><paragraph id="ID5eb29c8642344c46a25565798f22ef87"><enum>(3)</enum><header>Extension
limited</header><text>In no case may any date designated under this section be
later than 24 months after the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="ID240c2e53b09549158ac0159d71cb491e"><enum>1063.</enum><header>Savings
provisions</header>
<subsection id="IDd81de25e0a9241e8a5a678a26bc05104"><enum>(a)</enum><header>Board of
governors</header>
<paragraph id="ID0a9be625c8aa41ceb5c6e2c409e4bbe8"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(1)
does not affect the validity of any right, duty, or obligation of the United
States, the Board of Governors (or any Federal reserve bank), or any other
person that—</text>
<subparagraph id="IDfc5e70e97e424d358be527437bfeaef6"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Board of Governors transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="ID0aec0c34c0664c7b849674703cca0bd0"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="IDbd41aec2982443238504f6551dbdaaab"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Board of Governors (or any Federal reserve bank)
before the designated transfer date with respect to any consumer financial
protection function of the Board of Governors (or any Federal reserve bank)
transferred to the Bureau by this title, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the Board of Governors
(or Federal reserve bank) as a party to any such proceeding as of the
designated transfer date.</text>
</paragraph></subsection><subsection id="IDa15957ae738f43c4b4e8439b839441b6"><enum>(b)</enum><header>Federal deposit
insurance corporation</header>
<paragraph id="ID01fdb53564754b4dbbae057b15b93beb"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(4)
does not affect the validity of any right, duty, or obligation of the United
States, the Federal Deposit Insurance Corporation, the Board of Directors of
that Corporation, or any other person, that—</text>
<subparagraph id="ID2c8a6af17109405e8209e1c2a099a8e5"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Federal Deposit Insurance Corporation transferred to the Bureau by this title;
and</text>
</subparagraph><subparagraph id="IDdafe895e29334dbb98d3b5676ba8083a"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID35b2845a135a4413a984c056235cc637"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Federal Deposit Insurance Corporation (or the Board
of Directors of that Corporation) before the designated transfer date with
respect to any consumer financial protection function of the Federal Deposit
Insurance Corporation transferred to the Bureau by this title, except that the
Bureau, subject to sections 1024, 1025, and 1026, shall be substituted for the
Federal Deposit Insurance Corporation (or Board of Directors) as a party to any
such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="ID0b4c498c68594fceabf664999720d2e4"><enum>(c)</enum><header>Federal trade
commission</header>
<paragraph id="ID14fd05a05c9e48369d9b579429b74b7d"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(5)
does not affect the validity of any right, duty, or obligation of the United
States, the Federal Trade Commission, or any other person, that—</text>
<subparagraph id="IDfe504daa452d4ab6b3899e929d6de411"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Federal Trade Commission transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="IDe53f056d8aca44f3b6fee8aacd5d9480"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID45ed1f3998354667b469372c4592d7a7"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Federal Trade Commission before the designated
transfer date with respect to any consumer financial protection function of the
Federal Trade Commission transferred to the Bureau by this title, except that
the Bureau, subject to sections 1024, 1025, and 1026, shall be substituted for
the Federal Trade Commission as a party to any such proceeding as of the
designated transfer date.</text>
</paragraph></subsection><subsection id="IDda4563e9890f43beb341153b5e36820d"><enum>(d)</enum><header>National credit
union administration</header>
<paragraph id="ID3467a113fa2144208be62605bddfb690"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(6)
does not affect the validity of any right, duty, or obligation of the United
States, the National Credit Union Administration, the National Credit Union
Administration Board, or any other person, that—</text>
<subparagraph id="ID293dbb2f682c4b979cbdf246ba482505"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
National Credit Union Administration transferred to the Bureau by this title;
and</text>
</subparagraph><subparagraph id="IDea005d1d22984394989da32052add663"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID27b9c90f58c74dc6a5f26e48d7609f65"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the National Credit Union Administration (or the
National Credit Union Administration Board) before the designated transfer date
with respect to any consumer financial protection function of the National
Credit Union Administration transferred to the Bureau by this title, except
that the Bureau, subject to sections 1024, 1025, and 1026, shall be substituted
for the National Credit Union Administration (or National Credit Union
Administration Board) as a party to any such proceeding as of the designated
transfer date.</text>
</paragraph></subsection><subsection id="ID87deeaca722741daba31d631b1334d68"><enum>(e)</enum><header>Office of the
comptroller of the currency</header>
<paragraph id="IDc449c1b081de4ce18d176e4a8287448c"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(2)
does not affect the validity of any right, duty, or obligation of the United
States, the Comptroller of the Currency, the Office of the Comptroller of the
Currency, or any other person, that—</text>
<subparagraph id="ID42fd2d86f0f8437a8571deca8e7388bd"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Comptroller of the Currency transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="ID6947aaa901134f878fa1f04c8c445292"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID432ba88238c84294ba59d4df3833677d"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Comptroller of the Currency (or the Office of the
Comptroller of the Currency) with respect to any consumer financial protection
function of the Comptroller of the Currency transferred to the Bureau by this
title before the designated transfer date, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the Comptroller of the
Currency (or the Office of the Comptroller of the Currency) as a party to any
such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="ID2f8eda22d4724191a454dfedbfc12ffe"><enum>(f)</enum><header>Office of
thrift supervision</header>
<paragraph id="ID93643d0cc064430fb699781d730cb779"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(3)
does not affect the validity of any right, duty, or obligation of the United
States, the Director of the Office of Thrift Supervision, the Office of Thrift
Supervision, or any other person, that—</text>
<subparagraph id="ID22a35b2993324183960f4544ff87e08f"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Director of the Office of Thrift Supervision transferred to the Bureau by this
title; and</text>
</subparagraph><subparagraph id="ID7bced18b01414c598a1dbe1859e5e7b8"><enum>(B)</enum><text>that existed on
the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="IDa811100995744a09bccf84218122d6ca"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Director of the Office of Thrift Supervision (or
the Office of Thrift Supervision) with respect to any consumer financial
protection function of the Director of the Office of Thrift Supervision
transferred to the Bureau by this title before the designated transfer date,
except that the Bureau, subject to sections 1024, 1025, and 1026, shall be
substituted for the Director (or the Office of Thrift Supervision) as a party
to any such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="ID6a90d4ae04be42f5bfcda1163c3ad2f6"><enum>(g)</enum><header>Department of
housing and urban development</header>
<paragraph id="ID051f8ecab7ea42358c6c44ef3df16819"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Section 1061(b)(7)
shall not affect the validity of any right, duty, or obligation of the United
States, the Secretary of the Department of Housing and Urban Development (or
the Department of Housing and Urban Development), or any other person,
that—</text>
<subparagraph id="IDa2fad2ce6ced4ff385b67f6b9ae00050"><enum>(A)</enum><text>arises under any
provision of law relating to any function of the Secretary of the Department of
Housing and Urban Development with respect to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et seq.) or the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5102 et seq.)
transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="ID4c9a5ded652a404dab0b1586b8502964"><enum>(B)</enum><text>existed on the
day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="ID9d55ff6a785d47538e66ab9dc836224d"><enum>(2)</enum><header>Continuation of
suits</header><text>This title shall not abate any proceeding commenced by or
against the Secretary of the Department of Housing and Urban Development (or
the Department of Housing and Urban Development) with respect to any consumer
financial protection function of the Secretary of the Department of Housing and
Urban Development transferred to the Bureau by this title before the designated
transfer date, except that the Bureau, subject to sections 1024, 1025, and
1026, shall be substituted for the Secretary of the Department of Housing and
Urban Development (or the Department of Housing and Urban Development) as a
party to any such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="ID2a8cd2b0507645269f945af1a812438b"><enum>(h)</enum><header>Continuation of
existing orders, rules, determinations, agreements, and
resolutions</header><text>All orders, resolutions, determinations, agreements,
and rules that have been issued, made, prescribed, or allowed to become
effective by any transferor agency or by a court of competent jurisdiction, in
the performance of consumer financial protection functions that are transferred
by this title and that are in effect on the day before the designated transfer
date, shall continue in effect according to the terms of those orders,
resolutions, determinations, agreements, and rules, and shall not be
enforceable by or against the Bureau.</text>
</subsection><subsection id="IDda40385a48f548fdb6fed22626951a2b"><enum>(i)</enum><header>Identification
of rules continued</header><text>Not later than the designated transfer date,
the Bureau—</text>
<paragraph id="ID826f21e43f1d42a9be72344f7ca0e4cb"><enum>(1)</enum><text>shall, after
consultation with the head of each transferor agency, identify the rules
continued under subsection (h) that will be enforced by the Bureau; and</text>
</paragraph><paragraph id="ID09f4b9fbfa52439299748fe95be1df3c"><enum>(2)</enum><text>shall publish a
list of such rules in the Federal Register.</text>
</paragraph></subsection><subsection id="ID8c39f285912641b597e264bf1528c1ec"><enum>(j)</enum><header>Status of rules
proposed or not yet effective</header>
<paragraph id="IDa6ba726a24c4427688f589cd470e7e17"><enum>(1)</enum><header>Proposed
rules</header><text>Any proposed rule of a transferor agency which that agency,
in performing consumer financial protection functions transferred by this
title, has proposed before the designated transfer date, but has not been
published as a final rule before that date, shall be deemed to be a proposed
rule of the Bureau.</text>
</paragraph><paragraph id="IDd03563176d9a417e8103f3879d3d6952"><enum>(2)</enum><header>Rules not yet
effective</header><text>Any interim or final rule of a transferor agency which
that agency, in performing consumer financial protection functions transferred
by this title, has published before the designated transfer date, but which has
not become effective before that date, shall become effective as a rule of the
Bureau according to its terms.</text>
</paragraph></subsection></section><section id="ID74612a8713084eb39103fdbf7536731d"><enum>1064.</enum><header>Transfer of
certain personnel</header>
<subsection id="ID95f70203376646cf80693235ad3699a1"><enum>(a)</enum><header>In
general</header>
<paragraph id="ID071071419848487bb6dc2a3976106771"><enum>(1)</enum><header>Certain Federal
reserve system employees transferred</header>
<subparagraph id="IDe790ddcc9d47436d839810f73591f998"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Board of Governors
shall—</text>
<clause id="IDe84c8171ca2f4fcdbf913825def11ddd"><enum>(i)</enum><text>jointly
determine the number of employees of the Board of Governors necessary to
perform or support the consumer financial protection functions of the Board of
Governors that are transferred to the Bureau by this title; and</text>
</clause><clause id="ID7712e57fa72a486991397d766cff4d01"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the Board
of Governors for transfer to the Bureau, in a manner that the Bureau and the
Board of Governors, in their sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="ID528ed76b584d4c8d9ebe94652a195880"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Board of Governors
identified under subparagraph (A)(ii) shall be transferred to the Bureau for
employment.</text>
</subparagraph><subparagraph id="IDd1881cabae594ccd86cdbfcd46d419f0"><enum>(C)</enum><header>Federal reserve
bank employees</header><text>Employees of any Federal reserve bank who, on the
day before the designated transfer date, are performing consumer financial
protection functions on behalf of the Board of Governors shall be treated as
employees of the Board of Governors for purposes of subparagraphs (A) and
(B).</text>
</subparagraph></paragraph><paragraph id="ID17dbae3550a0444eb70622a54757ac72"><enum>(2)</enum><header>Certain fdic
employees transferred</header>
<subparagraph id="ID37adc893606e4f75b7b732e9027dbc29"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Board of Directors of
the Federal Deposit Insurance Corporation shall—</text>
<clause id="ID0fa12334e8a24522bdba8ec2d0b2cf8f"><enum>(i)</enum><text>jointly
determine the number of employees of that Corporation necessary to perform or
support the consumer financial protection functions of the Corporation that are
transferred to the Bureau by this title; and</text>
</clause><clause id="ID54b400d67721428aa90aafb0b69212c1"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Corporation for transfer to the Bureau, in a manner that the Bureau and the
Board of Directors of the Corporation, in their sole discretion, determine
equitable.</text>
</clause></subparagraph><subparagraph id="ID02b6232207134dbd9e5d178f2e9a5365"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Corporation identified
under subparagraph (A)(ii) shall be transferred to the Bureau for
employment.</text>
</subparagraph></paragraph><paragraph id="id7EE5EC03672E4304A65D27EF57D0F750"><enum>(3)</enum><header>Certain ncua
employees transferred</header>
<subparagraph id="ID06d88122a38a492db4e99d48fea71d5c"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the National Credit Union
Administration Board shall—</text>
<clause id="ID38ca9a76e5274fbd9d430a471344d9dd"><enum>(i)</enum><text>jointly
determine the number of employees of the National Credit Union Administration
necessary to perform or support the consumer financial protection functions of
the National Credit Union Administration that are transferred to the Bureau by
this title; and</text>
</clause><clause id="ID52dabccd703645b8a16c308c342fb419"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
National Credit Union Administration for transfer to the Bureau, in a manner
that the Bureau and the National Credit Union Administration Board, in their
sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="ID53f08d6bfb7745908eb361f0829b6e43"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the National Credit Union
Administration identified under subparagraph (A)(ii) shall be transferred to
the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="idDAF327FAD5E94923802DD5AB867F1528"><enum>(4)</enum><header>Certain Office
of the Comptroller of the Currency Employees Transferred</header>
<subparagraph id="id393BA15E8B2547C6863ABB3336FBE483"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Comptroller of the
Currency shall—</text>
<clause id="ID23a2437216024f068e674952ab7da011"><enum>(i)</enum><text>jointly
determine the number of employees of the Office of the Comptroller of the
Currency necessary to perform or support the consumer financial protection
functions of the Office of the Comptroller of the Currency that are transferred
to the Bureau by this title; and</text>
</clause><clause id="IDe1359bf4f1de4942bac679246e04116e"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Office of the Comptroller of the Currency for transfer to the Bureau, in a
manner that the Bureau and the Office of the Comptroller of the Currency, in
their sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="id51B8A7201AC84C51BB95751C7A4751E2"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Office of the
Comptroller of the Currency identified under subparagraph (A)(ii) shall be
transferred to the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="idE90BC3A37A44444C91B552C3A66CEBF8"><enum>(5)</enum><header>Certain Office
of Thrift Supervision Employees Transferred</header>
<subparagraph id="id079FAF5FD53A402CB789A4EF6BD788E3"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Director of the Office
of Thrift Supervision shall—</text>
<clause id="id2ECFBCF2AC1F4D119E4E59ACA7A8528D"><enum>(i)</enum><text>jointly
determine the number of employees of the Office of Thrift Supervision necessary
to perform or support the consumer financial protection functions of the Office
of Thrift Supervision that are transferred to the Bureau by this title;
and</text>
</clause><clause id="ID7fc19c37c9714f55875f340d56213153"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Office of Thrift Supervision for transfer to the Bureau, in a manner that the
Bureau and the Office of Thrift Supervision, in their sole discretion,
determine equitable.</text>
</clause></subparagraph><subparagraph id="ID5c2c19f948804a49a652fcc9d0f7c6d6"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Office of Thrift
Supervision identified under subparagraph (A)(ii) shall be transferred to the
Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="ID356cf02d4c0f4a0ab5cbbc265bb8f32e"><enum>(6)</enum><header>Certain
employees of department of housing and urban development transferred</header>
<subparagraph id="IDc65c9660d5c94dafa42c3ea1d4faa193"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Secretary of the
Department of Housing and Urban Development shall—</text>
<clause id="ID3d46deced70e42b08c9e28f5806b8928"><enum>(i)</enum><text>jointly
determine the number of employees of the Department of Housing and Urban
Development necessary to perform or support the consumer protection functions
of the Department that are transferred to the Bureau by this title; and</text>
</clause><clause id="ID446644d5ad3a41c4a275c36c91f0da79"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Department of Housing and Urban Development for transfer to the Bureau in a
manner that the Bureau and the Secretary of the Department of Housing and Urban
Development, in their sole discretion, deem equitable.</text>
</clause></subparagraph><subparagraph id="ID163735c49227483cad471f25cadbf841"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Department of Housing
and Urban Development identified under subparagraph (A)(ii) shall be
transferred to the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="IDd4815147a12f45329991c81d14864794"><enum>(7)</enum><header>Appointment
authority for excepted service and senior executive service
transferred</header>
<subparagraph id="IDcbd69197bf814e6f909bdaf6d8d68553"><enum>(A)</enum><header>In
general</header><text>In the case of an employee occupying a position in the
excepted service or the Senior Executive Service, any appointment authority
established pursuant to law or regulations of the Office of Personnel
Management for filling such positions shall be transferred, subject to
subparagraph (B).</text>
</subparagraph><subparagraph id="IDe686abcd6a104ec381b49c2654506218"><enum>(B)</enum><header>Declining
transfers allowed</header><text>An agency or entity may decline to make a
transfer of authority under subparagraph (A) (and the employees appointed
pursuant thereto) to the extent that such authority relates to positions
excepted from the competitive service because of their confidential,
policy-making, policy-determining, or policy-advocating character, and
non-career positions in the Senior Executive Service (within the meaning of
section 3132(a)(7) of title 5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection id="ID81c382e417ba4016bc457e3377af929d"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under this section shall—</text>
<paragraph id="ID4375a16a3bb2469b878d05562da1dd0b"><enum>(1)</enum><text>be
transferred not later than 90 days after the designated transfer date;
and</text>
</paragraph><paragraph id="ID01760f3103ae485391764e45c923d9a1"><enum>(2)</enum><text>receive notice of
a position assignment not later than 120 days after the effective date of his
or her transfer.</text>
</paragraph></subsection><subsection id="ID76dfd6647e2c4f02b99f124b70555257"><enum>(c)</enum><header>Transfer of
function</header>
<paragraph id="IDf63ab7a2ce1f428687f31242d957979a"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the transfer
of employees shall be deemed a transfer of functions for the purpose of section
3503 of title 5, United States Code.</text>
</paragraph><paragraph id="IDd8ea811d1da94343bc34c68ee64df44d"><enum>(2)</enum><header>Priority of
this title</header><text>If any provisions of this title conflict with any
protection provided to transferred employees under section 3503 of title 5,
United States Code, the provisions of this title shall control.</text>
</paragraph></subsection><subsection id="IDf0298354055d4280a306b4ed44240c0a"><enum>(d)</enum><header>Equal status
and tenure positions</header>
<paragraph id="ID692d99e696dc4dd19e0e2d91b7ea3222"><enum>(1)</enum><header>Employees
transferred from fdic, ftc, hud, ncua, occ, and ots</header><text>Each employee
transferred from the Federal Deposit Insurance Corporation, the Federal Trade
Commission, the National Credit Union Administration, the Office of the
Comptroller of the Currency, the Office of Thrift Supervision, or the
Department of Housing and Urban Development shall be placed in a position at
the Bureau with the same status and tenure as that employee held on the day
before the designated transfer date.</text>
</paragraph><paragraph id="ID88ca3a9693f54fc4999da18175554b63"><enum>(2)</enum><header>Employees
transferred from the Federal reserve system</header>
<subparagraph id="IDe608ac87ba154e21a2a5aeeaedeaff85"><enum>(A)</enum><header>Comparability</header><text>Each
employee transferred from the Board of Governors or from a Federal reserve bank
shall be placed in a position with the same status and tenure as that of an
employee transferring to the Bureau from the Office of the Comptroller of the
Currency who perform similar functions and have similar periods of
service.</text>
</subparagraph><subparagraph id="IDbacbacdec4a94cccbe8de3c6a31948b8"><enum>(B)</enum><header>Service periods
credited</header><text>For purposes of this paragraph, periods of service with
the Board of Governors or a Federal reserve bank shall be credited as periods
of service with a Federal agency.</text>
</subparagraph></paragraph></subsection><subsection id="ID9332f6bfb59142ecae98f37d4c8a2ddd"><enum>(e)</enum><header>Additional
certification requirements limited</header><text>Examiners transferred to the
Bureau are not subject to any additional certification requirements before
being placed in a comparable examiner position at the Bureau examining the same
types of institutions as they examined before they were transferred.</text>
</subsection><subsection id="IDbb44b89c58e645d9b234731a65465c3f"><enum>(f)</enum><header>Personnel
actions limited</header>
<paragraph id="ID1a70210a2b2d4d00986612ccad8fc2cb"><enum>(1)</enum><header>2-Year
protection</header><text>Except as provided in paragraph (2), each transferred
employee holding a permanent position on the day before the designated transfer
date may not, during the 2-year period beginning on the designated transfer
date, be involuntarily separated, or involuntarily reassigned outside his or
her locality pay area, as defined by the Office of Personnel Management.</text>
</paragraph><paragraph id="IDc86201b68dea433dbd066057c9000e34"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not limit the right of the Bureau—</text>
<subparagraph id="ID6d1f4fcccf13435cbdb49866f14fec8b"><enum>(A)</enum><text>to separate an
employee for cause or for unacceptable performance;</text>
</subparagraph><subparagraph id="ID174953799c4543da8d4ad6e0411b155e"><enum>(B)</enum><text>to terminate an
appointment to a position excepted from the competitive service because of its
confidential policy-making, policy-determining, or policy-advocating character;
or</text>
</subparagraph><subparagraph id="ID266c3651f332467c93979dfbdf9a1fd0"><enum>(C)</enum><text>to reassign a
supervisory employee outside his or her locality pay area, as defined by the
Office of Personnel Management, when the Bureau determines that the
reassignment is necessary for the efficient operation of the Bureau.</text>
</subparagraph></paragraph></subsection><subsection id="ID357b9aaed5ca4ecdae458583395aef18"><enum>(g)</enum><header>Pay</header>
<paragraph id="ID9f5f259e6c954433a5d9f29a91bc8071"><enum>(1)</enum><header>2-Year
protection</header><text>Except as provided in paragraph (2), each transferred
employee shall, during the 2-year period beginning on the designated transfer
date, receive pay at a rate equal to not less than the basic rate of pay
(including any geographic differential) that the employee received during the
pay period immediately preceding the date of transfer.</text>
</paragraph><paragraph id="ID2aa5d563aba54468b4301e90fa8cbfd7"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not limit the right of the Bureau to reduce the rate of basic pay of a
transferred employee—</text>
<subparagraph id="ID16d3937cfae04e5fabe1cfcbf866da74"><enum>(A)</enum><text>for cause;</text>
</subparagraph><subparagraph id="ID9e2bc008d8a547599f11aa4701280e5a"><enum>(B)</enum><text>for unacceptable
performance; or</text>
</subparagraph><subparagraph id="ID43c0a1c574314dc8a60808475f0120c6"><enum>(C)</enum><text>with the consent
of the employee.</text>
</subparagraph></paragraph><paragraph id="IDe92a86e1651f4d709e8e15eab5234a87"><enum>(3)</enum><header>Protection only
while employed</header><text>Paragraph (1) applies to a transferred employee
only while that employee remains employed by the Bureau.</text>
</paragraph><paragraph id="IDf85cf849a4ae489c87777160aefdcae7"><enum>(4)</enum><header>Pay increases
permitted</header><text>Paragraph (1) does not limit the authority of the
Bureau to increase the pay of a transferred employee.</text>
</paragraph></subsection><subsection id="ID0ca49d31325c481c85b69e398d670750"><enum>(h)</enum><header>Reorganization</header>
<paragraph id="ID9d4df148a3fa4f6a9fa20c2344e720d8"><enum>(1)</enum><header>Between 1st and
3rd year</header>
<subparagraph id="IDd5eca2cf81a54d0a9a81e259dcf1e6a1"><enum>(A)</enum><header>In
general</header><text>If the Bureau determines, during the 2-year period
beginning 1 year after the designated transfer date, that a reorganization of
the staff of the Bureau is required—</text>
<clause id="ID5d6b8810ce904d33a9ac9c0c5c3eebe8"><enum>(i)</enum><text>that
reorganization shall be deemed a <quote>major reorganization</quote> for
purposes of affording affected employees retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code;</text>
</clause><clause id="IDf0723f9b037f4ca19faa15885b5ad914"><enum>(ii)</enum><text>before
the reorganization occurs, all employees in the same locality pay area as
defined by the Office of Personnel Management shall be placed in a uniform
position classification system; and</text>
</clause><clause id="ID483b23b92c1d44f084565a5bcc3f43ab"><enum>(iii)</enum><text>any
resulting reduction in force shall be governed by the provisions of chapter 35
of title 5, United States Code, except that the Bureau shall—</text>
<subclause id="ID15b82c23202b42b1a185897d9cd5c770"><enum>(I)</enum><text>establish
competitive areas (as that term is defined in regulations issued by the Office
of Personnel Management) to include at a minimum all employees in the same
locality pay area as defined by the Office of Personnel Management;</text>
</subclause><subclause id="ID4f4808e8b8c546abb6cde77b784a1821"><enum>(II)</enum><text>establish
competitive levels (as that term is defined in regulations issued by the Office
of Personnel Management) without regard to whether the particular employees
have been appointed to positions in the competitive service or the excepted
service; and</text>
</subclause><subclause id="ID108849e23a0e47a686f5911384ccbe21"><enum>(III)</enum><text>afford
employees appointed to positions in the excepted service (other than to a
position excepted from the competitive service because of its confidential
policy-making, policy-determining, or policy-advocating character) the same
assignment rights to positions within the Bureau as employees appointed to
positions in the competitive service.</text>
</subclause></clause></subparagraph><subparagraph id="ID1c146084c9d1425fae47fa0d9acdc82e"><enum>(B)</enum><header>Service credit
for reductions in force</header><text>For purposes of this paragraph, periods
of service with a Federal home loan bank, a joint office of the Federal home
loan banks, the Board of Governors, a Federal reserve bank, the Federal Deposit
Insurance Corporation, or the National Credit Union Administration shall be
credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph><paragraph id="ID5bb967cde4a64e5498e55310a651a419"><enum>(2)</enum><header>After 3rd
year</header>
<subparagraph id="ID86327b062eda45da9aeb47035b3b05cb"><enum>(A)</enum><header>In
general</header><text>If the Bureau determines, at any time after the 3-year
period beginning on the designated transfer date, that a reorganization of the
staff of the Bureau is required, any resulting reduction in force shall be
governed by the provisions of chapter 35 of title 5, United States Code, except
that the Bureau shall establish competitive levels (as that term is defined in
regulations issued by the Office of Personnel Management) without regard to
types of appointment held by particular employees transferred under this
section.</text>
</subparagraph><subparagraph id="ID8dbd9ef798f84c11a0a798b5f2508044"><enum>(B)</enum><header>Service credit
for reductions in force</header><text>For purposes of this paragraph, periods
of service with a Federal home loan bank, a joint office of the Federal home
loan banks, the Board of Governors, a Federal reserve bank, the Federal Deposit
Insurance Corporation, or the National Credit Union Administration shall be
credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph></subsection><subsection id="ID2b97d7f2ac584402adb080ca338eb2dc"><enum>(i)</enum><header>Benefits</header>
<paragraph id="ID2ab9306a30604065801626aa11b8a777"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="ID19101d8d29744dc1b00a609ed9d4b7d3"><enum>(A)</enum><header>In
general</header>
<clause id="IDbeb2354f2d5e430eb22770668dd652d1"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text>Except as provided in subparagraph (B),
each transferred employee shall remain enrolled in his or her existing
retirement plan, through any period of continuous employment with the
Bureau.</text>
</clause><clause id="ID93bfda9e63554063bdc5737b8e282392"><enum>(ii)</enum><header>Employer
contribution</header><text>The Bureau shall pay any employer contributions to
the existing retirement plan of each transferred employee, as required under
that plan.</text>
</clause></subparagraph><subparagraph id="ID3d1c78539de84e27ad3e21bcfcffe8f8"><enum>(B)</enum><header>Option for
employees transferred from Federal reserve system to be subject to federal
employee retirement program</header>
<clause id="ID8869213559414ff3bb364ff57ebb80e0"><enum>(i)</enum><header>Election</header><text>Any
transferred employee who was enrolled in a Federal Reserve System retirement
plan on the day before his or her transfer to the Bureau may, during the 1-year
period beginning 6 months after the designated transfer date, elect to be
subject to the Federal employee retirement program.</text>
</clause><clause id="ID19146f4e8a184773b499d46424e0ec56"><enum>(ii)</enum><header>Effective date
of coverage</header><text>For any employee making an election under clause (i),
coverage by the Federal employee retirement program shall begin 1 year after
the designated transfer date.</text>
</clause></subparagraph><subparagraph id="ID00011fb63eb64c88bcccdfbb5a1fde41"><enum>(C)</enum><header>Bureau
participation in Federal reserve system retirement plan</header>
<clause id="IDa1c4c3ed6eaf43afbea35c0d5e000a63"><enum>(i)</enum><header>Separate
account in Federal reserve system retirement plan
established</header><text>Notwithstanding any other provision of law, and
subject to the terms and conditions of this section, a separate account in the
Federal Reserve System retirement plan shall be established for Bureau
employees who do not make the election under subparagraph (B).</text>
</clause><clause id="ID8ff5a5cfec384720881bfa41158d7278"><enum>(ii)</enum><header>Funds
attributable to transferred employees remaining in Federal reserve system
retirement plan transferred</header><text>The proportionate share of funds in
the Federal Reserve System retirement plan, including the proportionate share
of any funding surplus in that plan, attributable to a transferred employee who
does not make the election under subparagraph (B), shall be transferred to the
account established under clause (i).</text>
</clause><clause id="ID339e965873954bebb99e7a4d926923e2"><enum>(iii)</enum><header>Employer
contributions deposited</header><text>The Bureau shall deposit into the account
established under clause (i) the employer contributions that the Bureau makes
on behalf of employees who do not make the election under subparagraph
(B).</text>
</clause><clause id="IDf0be019092674d6d94972f5c515827a3"><enum>(iv)</enum><header>Account
administration</header><text>The Bureau shall administer the account
established under clause (i) as a participating employer in the Federal Reserve
System retirement plan.</text>
</clause></subparagraph><subparagraph id="IDdcc48ecc4a6b47af81cc19a4e85166d2"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph—</text>
<clause id="ID4bbee4d29a3547c9b6c0867492465936"><enum>(i)</enum><text>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 or Federal reserve bank from which the employee was transferred,
in which the employee was enrolled on the day before the designated transfer
date; and</text>
</clause><clause id="ID2acfc594ac644f63b8b7e027e827448d"><enum>(ii)</enum><text>the
term <term>Federal employee retirement program</term> means the retirement
program for Federal employees established by chapter 84 of title 5, United
States Code.</text>
</clause></subparagraph></paragraph><paragraph id="IDe7b547ae1f544ef1b34c46c0a05ceb8e"><enum>(2)</enum><header>Benefits other
than retirement benefits for transferred employees</header>
<subparagraph id="IDc05ca003fc384762bbf1d8882c0a3e31"><enum>(A)</enum><header>During 1st
year</header>
<clause id="IDf3c4e5ad3501436a8a081fd519fff7e4"><enum>(i)</enum><header>Existing plans
continue</header><text>Each transferred employee may, for 1 year after the
designated transfer date, retain membership in any other employee benefit
program of the agency or bank from which the employee transferred, including a
dental, vision, long term care, or life insurance program, to which the
employee belonged on the day before the designated transfer date.</text>
</clause><clause id="ID379b5cc8c3c6430db82c4c70e46fbd54"><enum>(ii)</enum><header>Employer
contribution</header><text>The Bureau shall reimburse the agency or bank from
which an employee was transferred for any cost incurred by that agency or bank
in continuing to extend coverage in the benefit program to the employee, as
required under that program or negotiated agreements.</text>
</clause></subparagraph><subparagraph id="ID4a22d48a244c48d88e71431b55aa310b"><enum>(B)</enum><header>Dental, vision,
or life insurance after 1st year</header><text>If, after the 1-year period
beginning on the designated transfer date, the Bureau decides not to continue
participation in any dental, vision, or life insurance program of an agency or
bank from which an employee transferred, a transferred employee who is a member
of such a program may, before the decision of the Bureau takes effect, elect to
enroll, without regard to any regularly scheduled open season, in—</text>
<clause id="ID9412e4555665457781bb3a91152a3cb3"><enum>(i)</enum><text>the
enhanced dental benefits established by chapter 89A of title 5, United States
Code;</text>
</clause><clause id="IDd65156caa1b44c348137eaebb485e48f"><enum>(ii)</enum><text>the
enhanced vision benefits established by chapter 89B of title 5, United States
Code; or</text>
</clause><clause id="IDb005329fbc954f93af0778e68357b174"><enum>(iii)</enum><text>the
Federal Employees Group Life Insurance Program established by chapter 87 of
title 5, United States Code, without regard to any requirement of
insurability.</text>
</clause></subparagraph><subparagraph id="ID41b28d625f884bd6ae3b00ffa76f91bd"><enum>(C)</enum><header>Long term care
insurance after 1st year</header><text>If, after the 1-year period beginning on
the designated transfer date, the Bureau decides not to continue participation
in any long term care insurance program of an agency or bank from which an
employee transferred, a transferred employee who is a member of such a program
may, before the decision of the Bureau takes effect, elect to apply for
coverage under the Federal Long Term Care Insurance Program established by
chapter 90 of title 5, United States Code, under the underwriting requirements
applicable to a new active workforce member (as defined in part 875, title 5,
Code of Federal Regulations).</text>
</subparagraph><subparagraph id="ID132617389ddb44a5bab7cb2138c1ecbb"><enum>(D)</enum><header>Employee
contribution</header><text>An individual enrolled in the Federal Employees
Health Benefits program shall pay any employee contribution required by the
plan.</text>
</subparagraph><subparagraph id="ID8853d6ca66e742ef96c8083cd20095a1"><enum>(E)</enum><header>Additional
funding</header><text>The Bureau shall transfer to the Federal Employees Health
Benefits Fund established under section 8909 of title 5, United States Code, an
amount determined by the Director of the Office of Personnel Management, after
consultation with the Bureau and the Office of Management and Budget, to be
necessary to reimburse the Fund for the cost to the Fund of providing benefits
under this paragraph.</text>
</subparagraph><subparagraph id="ID662d1d41456b4a0894b39776382bd768"><enum>(F)</enum><header>Credit for time
enrolled in other plans</header><text>For employees transferred under this
title, enrollment in a health benefits plan administered by a transferor agency
or a Federal reserve bank, as the case may be, immediately before enrollment in
a health benefits plan under chapter 89 of title 5, United States Code, shall
be considered as enrollment in a health benefits plan under that chapter for
purposes of section 8905(b)(1)(A) of title 5, United States Code.</text>
</subparagraph><subparagraph id="ID193729cf245344d4ab19a94de3d13a68"><enum>(G)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="ID7668b6bb7e544b9682c014e657acae76"><enum>(i)</enum><header>In
general</header><text>An annuitant (as defined in section 8901(3) of title 5,
United States Code) who is enrolled in a life insurance plan administered by a
transferor agency on the day before the designated transfer date shall be
eligible for coverage by a life insurance plan under sections 8706(b), 8714a,
8714b, and 8714c of title 5, United States Code, or in a life insurance plan
established by the Bureau, without regard to any regularly scheduled open
season and requirement of insurability.</text>
</clause><clause id="IDd11115ae6bbd4bcc87a1ddfb31196e10"><enum>(ii)</enum><header>Employee
contribution</header><text>An individual enrolled in a life insurance plan
under this subparagraph shall pay any employee contribution required by the
plan.</text>
</clause><clause id="IDd973ed462cf145f0a104e1042abc7921"><enum>(iii)</enum><header>Additional
funding</header><text>The Bureau shall transfer to the Employees’ Life
Insurance Fund established under section 8714 of title 5, United States Code,
an amount determined by the Director of the Office of Personnel Management,
after consultation with the Bureau and the Office of Management and Budget, to
be necessary to reimburse the Fund for the cost to the Fund of providing
benefits under this subparagraph not otherwise paid for by the employee under
clause (ii).</text>
</clause><clause id="IDdb616c8becd74db7812cacaa5ead40ce"><enum>(iv)</enum><header>Credit for
time enrolled in other plans</header><text>For employees transferred under this
title, enrollment in a life insurance plan administered by a transferor agency
immediately before enrollment in a life insurance plan under chapter 87 of
title 5, United States Code, shall be considered as enrollment in a life
insurance plan under that chapter for purposes of section 8706(b)(1)(A) of
title 5, United States Code.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="idCFE4C341FFF64BE1A2BA41D3F4FC941C"><enum>(3)</enum><header>OPM
rules</header><text>The Office of Personnel Management shall issue such rules
as are necessary to carry out this subsection.</text>
</paragraph></subsection><subsection id="ID82c9243120d3473d8da7fc5b723195e8"><enum>(j)</enum><header>Implementation
of uniform pay and classification system</header><text>Not later than 2 years
after the designated transfer date, the Bureau shall implement a uniform pay
and classification system for all employees transferred under this
title.</text>
</subsection><subsection id="IDb06734e6e2964d6398e3271f928cb25b"><enum>(k)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Bureau—</text>
<paragraph id="ID9ac1821f63934ea29b38b8e82f597c90"><enum>(1)</enum><text>shall take no
action that would unfairly disadvantage transferred employees relative to each
other based on their prior employment by the Board of Governors, the Federal
Deposit Insurance Corporation, the Federal Trade Commission, the National
Credit Union Administration, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, a Federal reserve bank, a Federal home loan bank,
or a joint office of the Federal home loan banks; and</text>
</paragraph><paragraph id="ID09027c877f784526a8aaa88db7c513f2"><enum>(2)</enum><text>may
take such action as is appropriate in individual cases so that employees
transferred under this section receive equitable treatment, with respect to the
status, tenure, pay, benefits (other than benefits under programs administered
by the Office of Personnel Management), and accrued leave or vacation time of
those employees, for prior periods of service with any Federal agency,
including the Board of Governors, the Corporation, the Federal Trade
Commission, the National Credit Union Administration, the Office of the
Comptroller of the Currency, the Office of Thrift Supervision, a Federal
reserve bank, a Federal home loan bank, or a joint office of the Federal home
loan banks.</text>
</paragraph></subsection><subsection id="ID059362c214564b21ab51cf7d10547d73"><enum>(l)</enum><header>Implementation</header><text>In
implementing the provisions of this section, the Bureau shall coordinate with
the Office of Personnel Management and other entities having expertise in
matters related to employment to ensure a fair and orderly transition for
affected employees.</text>
</subsection></section><section id="ID3b8acfe253104f0491a322fa3262e0ed"><enum>1065.</enum><header>Incidental
transfers</header>
<subsection id="ID1c1b9f4bc1d3446ba2941b94f93af6d1"><enum>(a)</enum><header>Incidental
transfers authorized</header><text>The Director of the Office of Management and
Budget, in consultation with the Secretary, shall make such additional
incidental transfers and dispositions of assets and liabilities held, used,
arising from, available, or to be made available, in connection with the
functions transferred by this title, as the Director may determine necessary to
accomplish the purposes of this title.</text>
</subsection><subsection id="ID4821769d876e42f48a19a6252c7a7458"><enum>(b)</enum><header>Sunset</header><text>The
authority provided in this section shall terminate 5 years after the date of
enactment of this Act.</text>
</subsection></section><section id="ID2d1cafdaf1f5415b91febba3f7635cd3"><enum>1066.</enum><header>Interim
authority of the Secretary</header>
<subsection id="ID194e7cca84444abe9d68b1dd7e7ae6cf"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to perform the functions of
the Bureau under this subtitle until the Director of the Bureau is confirmed by
the Senate in accordance with section 1011.</text>
</subsection><subsection id="IDfe249f1c180349948636b8d39b0d7a09"><enum>(b)</enum><header>Interim
administrative services by the department of the treasury</header><text>The
Department of the Treasury may provide administrative services necessary to
support the Bureau before the designated transfer date.</text>
</subsection></section><section id="id586B2000607E4B9A9D1C0BCDB2C4BADB"><enum>1067.</enum><header>Transition
oversight</header>
<subsection id="idBFE3D0F307D94C23849045AF2D7A9EAC"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to ensure that the Bureau—</text>
<paragraph id="id6644E8BFA7404B34A7DEB988FCF9FC0B"><enum>(1)</enum><text>has
an orderly and organized startup;</text>
</paragraph><paragraph id="id27BBFD7080E548E395DDEE7C7093D4D9"><enum>(2)</enum><text>attracts and
retains a qualified workforce; and</text>
</paragraph><paragraph id="id38B7C66CC7B04A33ABC7DB95666CAF05"><enum>(3)</enum><text>establishes
comprehensive employee training and benefits programs.</text>
</paragraph></subsection><subsection id="id9CFC290E64F141ACB2561B48F1313988"><enum>(b)</enum><header>Reporting
requirement</header>
<paragraph id="idF0A9D30CDB0C4F8085B79E4E1A438FAE"><enum>(1)</enum><header>In
general</header><text>The Bureau shall submit an annual report to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that includes the plans
described in paragraph (2).</text>
</paragraph><paragraph id="id3F944010B0BA45D6B516ABFCC3C6565E"><enum>(2)</enum><header>Plans</header><text>The
plans described in this paragraph are as follows:</text>
<subparagraph id="id99F61DED0AF44BDCBC8D4CD43A6137FE"><enum>(A)</enum><header>Training and
workforce development plan</header><text>The Bureau shall submit a training and
workforce development plan that includes, to the extent practicable—</text>
<clause id="idE7793A3A73EC4511BBA6D7E3779AECD2"><enum>(i)</enum><text>identification of
skill and technical expertise needs and actions taken to meet those
requirements;</text>
</clause><clause id="idCAE91E5E622E44F6BDDC971071DA3AB6"><enum>(ii)</enum><text>steps
taken to foster innovation and creativity;</text>
</clause><clause id="idD00A48EAA7DB4747A05776C4EAD7938D"><enum>(iii)</enum><text>leadership
development and succession planning; and</text>
</clause><clause id="idF82EB37E5A87407794E23A1650E9F421"><enum>(iv)</enum><text>effective use of
technology by employees.</text>
</clause></subparagraph><subparagraph id="idB0400A4C2B0848DEA9CE232CE64A67DB"><enum>(B)</enum><header>Workplace
flexibilities plan</header><text>The Bureau shall submit a workforce
flexibility plan that includes, to the extent practicable—</text>
<clause id="id51B769282A9241B09EE04E9F7495D862"><enum>(i)</enum><text>telework;</text>
</clause><clause id="idD9A256D15E144021B4164EF57EE6C527"><enum>(ii)</enum><text>flexible work
schedules;</text>
</clause><clause id="id800961BCC3054414A773DDB19E0FBB9D"><enum>(iii)</enum><text>phased
retirement;</text>
</clause><clause id="id4E15F68EB34E48BCAF9A7A18AAFF9741"><enum>(iv)</enum><text>reemployed
annuitants;</text>
</clause><clause id="id9E0D6187487649BB8B1FC0D037196937"><enum>(v)</enum><text>part-time
work;</text>
</clause><clause id="id44244E0F23A0409382FCBBC9F81376C4"><enum>(vi)</enum><text>job
sharing;</text>
</clause><clause id="id20AE7C3CAF3C4EBCAE2A20CC03DBD6C2"><enum>(vii)</enum><text>parental leave
benefits and childcare assistance;</text>
</clause><clause id="id5B31BEF5742342229144B4C37C7159D1"><enum>(viii)</enum><text>domestic
partner benefits;</text>
</clause><clause id="id4C90BAD9123F426795C57AFBAE424C57"><enum>(ix)</enum><text>other
workplace flexibilities; or</text>
</clause><clause id="id20A97B13668D465DA1910B5B27FE50FE"><enum>(x)</enum><text>any
combination of the items described in clauses (i) through (ix).</text>
</clause></subparagraph><subparagraph id="id30F66F88915F46DABBFAE9B637C8BB36"><enum>(C)</enum><header>Recruitment and
retention plan</header><text>The Bureau shall submit a recruitment and
retention plan that includes, to the extent practicable, provisions relating
to—</text>
<clause id="id061781AE07134AABAF468EBD2087CACF"><enum>(i)</enum><text>the
steps necessary to target highly qualified applicant pools with diverse
backgrounds;</text>
</clause><clause id="idBA202E43A2AD4BE09C8F3D67575F46A7"><enum>(ii)</enum><text>streamlined
employment application processes;</text>
</clause><clause id="id2C3D61D6EC584C69828AEB3F853977CD"><enum>(iii)</enum><text>the
provision of timely notification of the status of employment applications to
applicants; and</text>
</clause><clause id="idD7936996CA8B44689BE80EECE837AB18"><enum>(iv)</enum><text>the
collection of information to measure indicators of hiring effectiveness.</text>
</clause></subparagraph></paragraph></subsection><subsection id="idBF0D9A665BAC4ED38315B5543013F8FC"><enum>(c)</enum><header>Expiration</header><text>The
reporting requirement under subsection (b) shall terminate 5 years after the
date of enactment of this Act.</text>
</subsection><subsection id="id901943EBECF9461899D59352A854C2A3"><enum>(d)</enum><header>Rule of
construction</header><text>Nothing in this section may be construed to
affect—</text>
<paragraph id="idF18E61E80CA848CDBCC6F73847D1CFC5"><enum>(1)</enum><text>a
collective bargaining agreement, as that term is defined in section 7103(a)(8)
of title 5, United States Code, that is in effect on the date of enactment of
this Act; or</text>
</paragraph><paragraph id="id8E538E2E736247569C4F9F3880427AD9"><enum>(2)</enum><text>the
rights of employees under chapter 71 of title 5, United States Code.</text>
</paragraph></subsection></section></subtitle><subtitle id="id477CE09A2603411090F166479E5FFDDB"><enum>G</enum><header>Regulatory
Improvements</header>
<section id="id2D4F6772A5074C8DB862CA487BC1DC42"><enum>1071.</enum><header>Collection of
deposit account data</header>
<subsection id="ID9d585812f6684a72a31805d1ba45293c"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to promote awareness and understanding of the access
of individuals and communities to financial services, and to identify business
and community development needs and opportunities.</text>
</subsection><subsection id="IDfc08f21ebc314ee7acd43cf63bdc2d72"><enum>(b)</enum><header>In
general</header>
<paragraph id="ID185e460fef6d4507b82a29f23c4243af"><enum>(1)</enum><header>Records
required</header><text>For each branch, automated teller machine at which
deposits are accepted, and other deposit taking service facility with respect
to any financial institution, the financial institution shall maintain a record
of the number and dollar amounts of the deposit accounts of customers.</text>
</paragraph><paragraph id="ID32810af64a0e4415883d5c09dd7dd788"><enum>(2)</enum><header>Geo-coded
addresses of depositors</header><text>Customer addresses shall be geo-coded for
the collection of data regarding the census tracts of the residences or
business locations of customers.</text>
</paragraph><paragraph id="ID72b8c5b48111416c9f4318d52adca8a6"><enum>(3)</enum><header>Identification
of depositor type</header><text>In maintaining records on any deposit account
under this section, the financial institution shall record whether the deposit
account is for a residential or commercial customer.</text>
</paragraph><paragraph id="IDdebeb6bf52234839b795a0d33e5a6a96"><enum>(4)</enum><header>Public
availability</header>
<subparagraph id="IDdae522daa03542f7b51d8e6213e4ab10"><enum>(A)</enum><header>In
general</header><text>Each financial institution shall make publicly available
on an annual basis, from information collected under this section—</text>
<clause id="IDad69acb4b30245f292d51b1ebcb78547"><enum>(i)</enum><text>the
address and census tract of each branch, automated teller machine at which
deposits are accepted, and other deposit taking service facility with respect
to the financial institution;</text>
</clause><clause id="ID891597e0805a42618e2e1b274e1ead5b"><enum>(ii)</enum><text>the
type of deposit account, including whether the account was a checking or
savings account; and</text>
</clause><clause id="ID2f5b40b8ba6f46998a713f8cb3deb90e"><enum>(iii)</enum><text>data
on the number and dollar amount of the accounts, presented by census tract
location of the residential and commercial customer.</text>
</clause></subparagraph><subparagraph id="IDf03a313a1a57439e959956a6bb7c3609"><enum>(B)</enum><header>Protection of
identity</header><text>In making data publicly available, any personally
identifiable data element shall be removed so as to protect the identities of
the commercial and residential customers.</text>
</subparagraph></paragraph></subsection><subsection id="ID90c4127481a149fc840fa30838a17855"><enum>(c)</enum><header>Availability of
information</header>
<paragraph id="IDa356bdd3269f4a3fb619e339cf82356e"><enum>(1)</enum><header>Submission to
agencies</header><text>The data required to be compiled and maintained under
this section by any financial institution shall be submitted annually to the
Bureau, or to a Federal banking agency, in accordance with rules prescribed by
the Bureau.</text>
</paragraph><paragraph id="ID56b40ba5a319421e8ac2e6ff7d1c637d"><enum>(2)</enum><header>Availability of
information</header><text>Information compiled and maintained under this
section shall be retained for not less than 3 years after the date of
preparation and shall be made available to the public, upon request, in the
form required under rules prescribed by the Bureau.</text>
</paragraph></subsection><subsection id="ID3cb7805c044142bfb58a5246b8db61fe"><enum>(d)</enum><header>Bureau
use</header><text>The Bureau—</text>
<paragraph id="IDf0600c16c7f9405e9924025e85637ecd"><enum>(1)</enum><text>shall use the
data on branches and deposit accounts acquired under this section as part of
the examination of a covered person as part of an examination under this
title;</text>
</paragraph><paragraph id="ID8e38e0b6cf33401ca53e65cf6286a969"><enum>(2)</enum><text>shall assess the
distribution of residential and commercial accounts at such financial
institution across income and minority level of census tracts; and</text>
</paragraph><paragraph id="ID47f186a64d2142d083838b38157bdb14"><enum>(3)</enum><text>may
use the data for any other purpose as permitted by law.</text>
</paragraph></subsection><subsection id="ID28119b346a554fc1a09bbfb2ce871d16"><enum>(e)</enum><header>Rules and
guidance</header><text>The Bureau shall prescribe such rules and issue guidance
as may be necessary to carry out, enforce, and compile data pursuant to this
section. The Bureau shall prescribe rules 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 this section and the
requirements of rules prescribed thereunder.</text>
</subsection><subsection id="IDbcfdc0267b9246ddb56b12e275e6cda6"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph commented="no" id="IDa1aa9901515c492bb13c4ae23b0080ae"><enum>(1)</enum><header>Deposit
account</header><text>The term <term>deposit account</term> includes any
checking account, savings account, credit union share account, and other types
of accounts, as defined by the Bureau.</text>
</paragraph><paragraph commented="no" id="ID68b9466536d14ef08d851ab3cd4b735f"><enum>(2)</enum><header>Financial
institution</header><text>The term <term>financial institution</term>—</text>
<subparagraph commented="no" id="ID4ded81ce70a74b1c9788fcde177b85ab"><enum>(A)</enum><text>has the meaning
given to the term <term>insured depository institution</term> in section
3(c)(2) of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph commented="no" id="ID5ac5a8fe19f8402689f3fc686484c013"><enum>(B)</enum><text>includes any
credit union.</text>
</subparagraph></paragraph></subsection><subsection id="ID1212dfb7903c46f3b22a3cd8cc9bf52b"><enum>(g)</enum><header>Effective
date</header><text>This section shall become effective on the designated
transfer date.</text>
</subsection></section><section id="IDe5af87f7daf24545a774ecf5e7a5b919"><enum>1072.</enum><header>Small
business data collection</header>
<subsection id="IDc6a28777060f48b0b00694100777d703"><enum>(a)</enum><header>In
general</header><text>The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.)
is amended by inserting after section 704A the following:</text>
<quoted-block display-inline="no-display-inline" id="id4D7CD030DBEE4CEA9C8728B77FD125B3" style="OLC">
<section id="ID1db1af17ef1f4b9aac6b228fac60cbb7"><enum>740B.</enum><header>Small
business loan data collection</header>
<subsection id="ID414892ad84894b27b321f64592463589"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to facilitate enforcement of fair lending laws and
enable communities, governmental entities, and creditors to identify business
and community development needs and opportunities of women-owned and
minority-owned small businesses.</text>
</subsection><subsection id="ID955254fa1e25484c9935d6dcc9860dba"><enum>(b)</enum><header>Information
gathering</header><text>Subject to the requirements of this section, in the
case of any application to a financial institution for credit for a small
business, the financial institution shall—</text>
<paragraph id="ID7ca986bf67914c16adb5055896f0c4ac"><enum>(1)</enum><text>inquire whether
the small business is a women- or minority-owned small business, without regard
to whether such application is received in person, by mail, by telephone, by
electronic mail or other form of electronic transmission, or by any other
means, and whether or not such application is in response to a solicitation by
the financial institution; and</text>
</paragraph><paragraph id="ID53d1cd4d037547efb840729c79861cb0"><enum>(2)</enum><text>maintain a record
of the responses to such inquiry, separate from the application and
accompanying information.</text>
</paragraph></subsection><subsection id="IDb2f662f4fc3b4bb396f52fec3a4e4ed1"><enum>(c)</enum><header>Right To
refuse</header><text>Any applicant for credit may refuse to provide any
information requested pursuant to subsection (b) in connection with any
application for credit.</text>
</subsection><subsection id="ID36a9f07667f8436488dbe6774eae5892"><enum>(d)</enum><header>No access by
underwriters</header>
<paragraph id="IDfaf040f09a834483b5d48a6ae81b3b72"><enum>(1)</enum><header>Limitation</header><text>Where
feasible, no loan underwriter or other officer or employee of a financial
institution, or any affiliate of a financial institution, involved in making
any determination concerning an application for credit shall have access to any
information provided by the applicant pursuant to a request under subsection
(b) in connection with such application.</text>
</paragraph><paragraph id="IDf6d3283d33784230a3d7ca799befed38"><enum>(2)</enum><header>Limited
access</header><text>If a financial institution determines that a loan
underwriter or other officer or employee of a financial institution, or any
affiliate of a financial institution, involved in making any determination
concerning an application for credit should have access to any information
provided by the applicant pursuant to a request under subsection (b), the
financial institution shall provide notice to the applicant of the access of
the underwriter to such information, along with notice that the financial
institution may not discriminate on the basis of such information.</text>
</paragraph></subsection><subsection id="ID8835f513db784cc4b73dbaf54482bdd8"><enum>(e)</enum><header>Form and manner
of information</header>
<paragraph id="IDacdbeab96bd0400499078db81a30d094"><enum>(1)</enum><header>In
general</header><text>Each financial institution shall compile and maintain, in
accordance with regulations of the Bureau, a record of the information provided
by any loan applicant pursuant to a request under subsection (b).</text>
</paragraph><paragraph id="ID2df98d9db193412b8beb593f4a926eb0"><enum>(2)</enum><header>Itemization</header><text>Information
compiled and maintained under paragraph (1) shall be itemized in order to
clearly and conspicuously disclose—</text>
<subparagraph id="ID94f0a39652f3440388a653caae1fd352"><enum>(A)</enum><text>the number of the
application and the date on which the application was received;</text>
</subparagraph><subparagraph id="IDa0ba0aec26b54478b706ede52aa76ad5"><enum>(B)</enum><text>the type and
purpose of the loan or other credit being applied for;</text>
</subparagraph><subparagraph id="IDa33c0f141b3e4261add4e12c1294c9d7"><enum>(C)</enum><text>the amount of the
credit or credit limit applied for, and the amount of the credit transaction or
the credit limit approved for such applicant;</text>
</subparagraph><subparagraph id="ID8107b10e7a0845fa9159a49ae6a06267"><enum>(D)</enum><text>the type of
action taken with respect to such application, and the date of such
action;</text>
</subparagraph><subparagraph id="IDf686ab6c71b948aaa2886ed2d74a2d7f"><enum>(E)</enum><text>the census tract
in which is located the principal place of business of the small business loan
applicant;</text>
</subparagraph><subparagraph id="ID8a19c69a49cf4177af72bc219773d51c"><enum>(F)</enum><text>the gross annual
revenue of the business in the last fiscal year of the small business loan
applicant preceding the date of the application;</text>
</subparagraph><subparagraph id="IDb74602f31bff472f850091799a2b25cb"><enum>(G)</enum><text>the race and
ethnicity of the principal owners of the business; and</text>
</subparagraph><subparagraph id="ID3de9e03de61a4ac8b0bccef38dbf8ed3"><enum>(H)</enum><text>any additional
data that the Bureau determines would aid in fulfilling the purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="IDcbad5e6d0d8648a787abb31004dffbdc"><enum>(3)</enum><header>No personally
identifiable information</header><text>In compiling and maintaining any record
of information under this section, a financial institution may not include in
such record the name, specific address (other than the census tract required
under paragraph (1)(E)), telephone number, electronic mail address, or any
other personally identifiable information concerning any individual who is, or
is connected with, the small business loan applicant.</text>
</paragraph><paragraph id="ID27b8e543c0ec4ba4998998d8430dfc96"><enum>(4)</enum><header>Discretion to
delete or modify publicly available data</header><text>The Bureau may, at its
discretion, delete or modify data collected under this section which is or will
be available to the public, if the Bureau determines that the deletion or
modification of the data would advance a compelling privacy interest.</text>
</paragraph></subsection><subsection id="ID3e87b78bb4ce4247837320524fb94d72"><enum>(f)</enum><header>Availability of
information</header>
<paragraph id="IDbc8647b31d284fcda327c15bb00a405d"><enum>(1)</enum><header>Submission to
Bureau</header><text>The data required to be compiled and maintained under this
section by any financial institution shall be submitted annually to the
Bureau.</text>
</paragraph><paragraph id="ID09e0ea14e8ab4278af6037743557aec4"><enum>(2)</enum><header>Availability of
information</header><text>Information compiled and maintained under this
section shall be—</text>
<subparagraph id="id7EB82DD4971E41F2A85EBB154585CBED"><enum>(A)</enum><text>retained for not
less than 3 years after the date of preparation;</text>
</subparagraph><subparagraph id="id6CB8C29BCA2F49CFA2887F3728C7EACE"><enum>(B)</enum><text>made available to
any member of the public, upon request, in the form required under regulations
prescribed by the Bureau;</text>
</subparagraph><subparagraph id="id4E1AC2C57F6C40F2A41C48F373D02F9D"><enum>(C)</enum><text>annually made
available to the public generally by the Bureau, in such form and in such
manner as is determined appropriate by the Bureau.</text>
</subparagraph></paragraph><paragraph id="ID5d0e4423079a467687cbd1f4cf00a6a1"><enum>(3)</enum><header>Compilation of
aggregate data</header><text>The Bureau may, at its discretion—</text>
<subparagraph id="id9B7AF6DCD7A94650BE07D4E7D4E3C705"><enum>(A)</enum><text>compile and
aggregate data collected under this section for its own use; and</text>
</subparagraph><subparagraph id="idFF9DEDB0AC2D4094A715F37C9FB36750"><enum>(B)</enum><text>make public such
compilations of aggregate data.</text>
</subparagraph></paragraph></subsection><subsection id="ID086b70beda7448ba908c0cbf93068f26"><enum>(g)</enum><header>Bureau
action</header>
<paragraph id="ID714e82166fdb47ea95a60c9a4c0150ad"><enum>(1)</enum><header>In
general</header><text>The Bureau shall prescribe such rules and issue such
guidance as may be necessary to carry out, enforce, and compile data pursuant
to this section.</text>
</paragraph><paragraph id="ID4321cbef089c470eaa7d536b15744ba2"><enum>(2)</enum><header>Exceptions</header><text>The
Bureau, by rule or order, may adopt exceptions to any requirement of this
section and may, conditionally or unconditionally, exempt any financial
institution or class of financial institutions from the requirements of this
section, as the Bureau deems necessary or appropriate to carry out the purposes
of this section.</text>
</paragraph><paragraph id="ID371daba9c35643899462ae9163d611d3"><enum>(3)</enum><header>Guidance</header><text>The
Bureau shall issue guidance designed to facilitate compliance with the
requirements of this section, including assisting financial institutions in
working with applicants to determine whether the applicants are women- or
minority-owned for purposes of this section.</text>
</paragraph></subsection><subsection id="ID59ebe7dd714c413587e0e8bc479e5525"><enum>(h)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="IDcce4ebdb9b9b4abdb771a57631c841af"><enum>(1)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> means any
partnership, company, corporation, association (incorporated or
unincorporated), trust, estate, cooperative organization, or other entity that
engages in any financial activity.</text>
</paragraph><paragraph id="IDb0d8e7c823294a70ba52e80cc871b15e"><enum>(2)</enum><header>Minority</header><text>The
term <term>minority</term> has the same meaning as in section 1204(c)(3) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989.</text>
</paragraph><paragraph id="ID6daa27cee3fb40cabe4bf05ebe8121bb"><enum>(3)</enum><header>Minority-owned
small business</header><text>The term <term>minority-owned small
business</term> means a small business—</text>
<subparagraph id="IDd966db856d3a4a7fa6bac96d5f7f159e"><enum>(A)</enum><text>more than 50
percent of the ownership or control of which is held by 1 or more minority
individuals; and</text>
</subparagraph><subparagraph id="ID5abbefa5495043c5be651b98f17bcf51"><enum>(B)</enum><text>more than 50
percent of the net profit or loss of which accrues to 1 or more minority
individuals.</text>
</subparagraph></paragraph><paragraph id="ID68753eaab41945d68c0edc9ed24489b7"><enum>(4)</enum><header>Small business
loan</header><text>The term <term>small business loan</term> shall be defined
by the Bureau, which may take into account—</text>
<subparagraph id="ID0021949c68364c1398aaf228a5f9a2a4"><enum>(A)</enum><text>the gross
revenues of the borrower;</text>
</subparagraph><subparagraph id="ID7965d460e8a14260bc2967a0febe71c1"><enum>(B)</enum><text>the total number
of employees of the borrower;</text>
</subparagraph><subparagraph id="ID585ac8a334e7418f878b6f59ea800b81"><enum>(C)</enum><text>the industry in
which the borrower has its primary operations; and</text>
</subparagraph><subparagraph id="IDe27c9d67be994ddb991f24405453eb73"><enum>(D)</enum><text>the size of the
loan.</text>
</subparagraph></paragraph><paragraph id="ID22d5a8051bc94b7b808f699073204edd"><enum>(5)</enum><header>Women-owned
small business</header><text>The term <term>women-owned small business</term>
means a business—</text>
<subparagraph id="IDe1c5763178ad443eab5b07629b08863a"><enum>(A)</enum><text>more than 50
percent of the ownership or control of which is held by 1 or more women;
and</text>
</subparagraph><subparagraph id="ID09d20877608e432d9c88595b061a6346"><enum>(B)</enum><text>more than 50
percent of the net profit or loss of which accrues to 1 or more
women.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID582846ce4b934597954aed1d502559a3"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>Section 701(b) of the Equal Credit
Opportunity Act (15 U.S.C. 1691(b)) is amended—</text>
<paragraph id="ID730f6ba2b2a74407894f79fbc413c46c"><enum>(1)</enum><text>in
paragraph (3), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="ID813e6031ec9b43c88b48d7c8b5a7b906"><enum>(2)</enum><text>in
paragraph (4), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</paragraph><paragraph id="ID0baf26f0d6854ec0843d225408e62ed5"><enum>(3)</enum><text>by
inserting after paragraph (4), the following:</text>
<quoted-block display-inline="no-display-inline" id="id4A2958F5BBA142D3B7A2C7F8A0F421B6" style="OLC">
<paragraph id="ID1356462adc864330b35cf3b087318413"><enum>(5)</enum><text>to
make an inquiry under section 704B, in accordance with the requirements of that
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID035f2ffcacc54b89bff8f2a0d14cd90f"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for title VII of the Consumer
Credit Protection Act is amended by inserting after the item relating to
section 704A the following new item:</text>
<quoted-block display-inline="no-display-inline" id="id9AF981A205494CE2B816880F84C21B6A" style="OLC">
<toc>
<toc-entry bold="off" level="section">704B. Small business loan data
collection.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID652ec440de3d405698c2cc865f918b40"><enum>(d)</enum><header>Effective
date</header><text>This section shall become effective on the designated
transfer date.</text>
</subsection></section><section id="ID4ce4887817e34ba78ec742cbf44a3237"><enum>1073.</enum><header>GAO study on
the effectiveness and impact of various appraisal methods</header>
<subsection id="ID9c8ff6e56be642f19e58e5fcc62a6003"><enum>(a)</enum><header>In
general</header><text>The Government Accountability Office shall conduct a
study on the effectiveness and impact of various appraisal methods, including
the cost approach, the comparative sales approach, the income approach, and
others that may be available.</text>
</subsection><subsection id="IDa527ac8844bf4bd084afb036f0fe34d0"><enum>(b)</enum><header>Study</header><text>Not
later than—</text>
<paragraph id="id63084A79A9824C3E8DE7DDE08FB5D597"><enum>(1)</enum><text>1
year after the date of enactment of this Act, the Government Accountability
Office shall submit a study to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives;</text>
</paragraph><paragraph id="IDe0ad5962969448a4afeca05fa960f5f1"><enum>(2)</enum><text>90
days after the date of enactment of this Act, the Government Accountability
Office shall provide a report on the status of the study and any preliminary
findings to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives.</text>
</paragraph></subsection><subsection id="ID65bbe0ad252b4a3a9116dbf794c86a2b"><enum>(c)</enum><header>Content of
study</header><text>The study required by this section shall include an
examination of—</text>
<paragraph id="IDa6d1f1ccff6740188c643c63f13ecba1"><enum>(1)</enum><text>the
prevalence, alone or in combination, of these approaches in purchase-money and
refinance mortgage transactions;</text>
</paragraph><paragraph id="ID1f390978b9fd435894c68f2537dae7c3"><enum>(2)</enum><text>the
accuracy of the various approaches in assessing the property as
collateral;</text>
</paragraph><paragraph id="ID66ec7c0c8dfa4287a6b4524924cc6998"><enum>(3)</enum><text>whether and how
the approaches contributed to price speculation in the previous cycle;</text>
</paragraph><paragraph id="ID25ed06ce821c494eae5dfa6b10bcdbac"><enum>(4)</enum><text>the
costs to consumers of these approaches;</text>
</paragraph><paragraph id="IDa91f8e4dfb3a4fcea5c5a433b46bacb6"><enum>(5)</enum><text>the
disclosure of fees to consumers in the appraisal process;</text>
</paragraph><paragraph id="ID711560845bc948659f57061af2a624ca"><enum>(6)</enum><text>to
what extent such approaches may be influenced by a conflict of interest between
the mortgage lender and the appraiser and the mechanism by which the lender
selects and compensates the appraiser; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe9850ec6992d4a8d8fac245e430bf47f"><enum>(7)</enum><text>the suitability
of appraisal approaches in rural versus urban areas.</text>
</paragraph></subsection></section><section id="IDcb6406b3486743a69bf0aeab0865a420"><enum>1074.</enum><header>Prohibition
on certain prepayment penalties</header>
<subsection id="ID1133b606da8b4916bd72d56825631f6d"><enum>(a)</enum><header>In
general</header><text>Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by inserting after section 129A (15 U.S.C. 1639a) the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="id0136881A7BB6463C89DFF6E63316503A" style="OLC">
<section id="ID47a895b4bb904496b138ff75ea190a03"><enum>129B.</enum><header>Prohibition
on certain prepayment penalties</header>
<subsection id="IDedea67b81dc64899870bdd10ac762ae6"><enum>(a)</enum><header>Prohibited on
certain loans</header><text>A residential mortgage loan that is not a qualified
mortgage may not contain terms under which a consumer is required to pay a
prepayment penalty for paying all or part of the principal after the loan is
consummated.</text>
</subsection><subsection id="IDc2a290681a914a4f9d8f5e43e2eafb4d"><enum>(b)</enum><header>Phased-out
penalties on qualified mortgages</header>
<paragraph id="id1ECDCC9E436642B394602D19BD29E3CA"><enum>(1)</enum><header>In
general</header><text>A qualified mortgage may not contain terms under which a
consumer is required to pay a prepayment penalty for paying all or part of the
principal after the loan is consummated in excess of—</text>
<subparagraph id="IDeb0a235a427b4996920676884aa8c9a9"><enum>(A)</enum><text>during the 1-year
period beginning on the date on which the loan is consummated, an amount equal
to 3 percent of the outstanding balance on the loan;</text>
</subparagraph><subparagraph id="ID502672d1627c4b5d9a6bf174fab70e95"><enum>(B)</enum><text>during the 1-year
period beginning immediately after the end of the period described in
subparagraph (A), an amount equal to 2 percent of the outstanding balance on
the loan; and</text>
</subparagraph><subparagraph id="ID933c032d9f3d432fab3c6ad52e270de5"><enum>(C)</enum><text>during the 1-year
period beginning immediately after the end of the 1-year period described in
subparagraph (B), an amount equal to 1 percent of the outstanding balance on
the loan.</text>
</subparagraph></paragraph><paragraph id="ID1de5726160db45e8a3d0ae828f32fcf4"><enum>(2)</enum><header>Prohibition</header><text>After
the end of the 3-year period beginning on the date on which the loan is
consummated, no prepayment penalty may be imposed on a qualified
mortgage.</text>
</paragraph></subsection><subsection id="IDc7b863d5d7a84356aa8b8c6899ed6335"><enum>(c)</enum><header>Option for no
prepayment penalty required</header><text>A creditor may not offer a consumer a
residential mortgage loan product that has a prepayment penalty for paying all
or part of the principal after the loan is consummated as a term of the loan,
without offering to the consumer a residential mortgage loan product that does
not have a prepayment penalty as a term of the loan.</text>
</subsection><subsection id="ID612cf4bdd2b44a62bc39a57b100f0233"><enum>(d)</enum><header>Prohibitions on
evasions, structuring of transactions, and reciprocal
arrangements</header><text>A creditor may not take any action in connection
with a residential mortgage loan—</text>
<paragraph id="ID6426e83d7b4d4e00bcf8e073ea507c40"><enum>(1)</enum><text>to
structure a loan transaction as an open end consumer credit plan or another
form of loan for the purpose and with the intent of evading the provisions of
this section; or</text>
</paragraph><paragraph id="ID9a7fd2c20c7e4db1a93a07b67286beb4"><enum>(2)</enum><text>to
divide any loan transaction into separate parts for the purpose and with the
intent of evading provisions of this section.</text>
</paragraph></subsection><subsection id="ID6f534ab0cff741bf8f8876ab19a6ff9d"><enum>(e)</enum><header>Publication of
average prime offer rate and APR thresholds</header><text>The Board—</text>
<paragraph id="ID274d050048b44ec68d0f334343ec3e4d"><enum>(1)</enum><text>shall publish,
and update at least weekly, average prime offer rates;</text>
</paragraph><paragraph id="IDbab5e78e72b24788bb77de1fac16d12b"><enum>(2)</enum><text>may publish
multiple rates based on varying types of mortgage transactions; and</text>
</paragraph><paragraph id="IDa0e167c5d7e549ed8010e76a77e5ce39"><enum>(3)</enum><text>shall adjust the
thresholds of 1.50 percentage points in subsection (g)(3)(A)(v)(I), 2.50
percentage points in subsection (g)(3)(A)(v)(II), and 3.50 percentage points in
subsection (g)(3)(A)(v)(III), as necessary to reflect significant changes in
market conditions and to effectuate the purposes of this section.</text>
</paragraph></subsection><subsection id="ID108cd0ac01f74189a375f64818d1378b"><enum>(f)</enum><header>Regulations</header>
<paragraph id="ID3f0e08371c7d4f76ba3185d48018abfa"><enum>(1)</enum><header>In
general</header><text>The Bureau shall prescribe regulations to carry out this
section.</text>
</paragraph><paragraph id="ID7542012d52f341b0b3207a64135353d8"><enum>(2)</enum><header>Revision of
safe harbor criteria</header><text>The Bureau may prescribe regulations that
revise, add to, or subtract from the criteria that define a qualified mortgage,
upon a finding that such regulations are necessary or appropriate—</text>
<subparagraph id="id38409D1E07B14F6CA98CAD8F92C22FF0"><enum>(A)</enum><text>to ensure that
responsible, affordable mortgage credit remains available to consumers in a
manner consistent with the purposes of this section;</text>
</subparagraph><subparagraph id="id1170ED3FDD2E43FA848600F3ADC8C684"><enum>(B)</enum><text>to effectuate the
purposes of this section;</text>
</subparagraph><subparagraph id="id2F3C3BD09B7041F0BCE890E75574A9FE"><enum>(C)</enum><text>to prevent
circumvention or evasion thereof; or</text>
</subparagraph><subparagraph id="id33BB3CB2D51247B5B4B5FF346F54DBBF"><enum>(D)</enum><text>to facilitate
compliance with this section.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDdd8aeefe3f434987ad903a9f67caf2aa"><enum>(3)</enum><header>Interagency
harmonization</header>
<subparagraph commented="no" id="id593E413F0F9B4BA48E8D8B73C2868EDC"><enum>(A)</enum><header>Determination
of Qualifying mortgage treatment</header><text>The agencies and officials
described in subparagraph (B) shall, in consultation with the Bureau, prescribe
rules defining the types of loans they insure, guarantee, or administer, as the
case may be, that are qualified mortgages for purposes of this section, upon a
finding that such rules are consistent with the purposes of this section or are
appropriate to prevent circumvention or evasion thereof or to facilitate
compliance with this section.</text>
</subparagraph><subparagraph id="id890B4A2FF69C41F98CEDD8749D32614F"><enum>(B)</enum><header>Agencies and
officials</header><text>The agencies and officials described in this
subparagraph are—</text>
<clause id="ID5414caf53cb54470a5f7855693dee9bb"><enum>(i)</enum><text>the
Secretary of 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>
</clause><clause id="IDdd901b2f25384796860e498fabade486"><enum>(ii)</enum><text>the
Secretary of Veterans Affairs, with regard to a loan made or guaranteed by the
Secretary of Veterans Affairs;</text>
</clause><clause id="ID8dfb04661ffe4a808cb753297dbf405f"><enum>(iii)</enum><text>the
Secretary of Agriculture, with regard to loans guaranteed by the Secretary of
Agriculture pursuant to section 502 of the Housing Act of 1949 (42 U.S.C.
1472(h));</text>
</clause><clause id="ID9d5991387c224ae1b4ca2b6334efad8e"><enum>(iv)</enum><text>the
Federal Housing Finance Agency, with regard to loans meeting the conforming
loan standards of the Federal National Mortgage Association or the Federal Home
Loan Mortgage Corporation; and</text>
</clause><clause id="ID712dcc2c593d4d21b787fd4f48497c98"><enum>(v)</enum><text>the
Rural Housing Service, with regard to loans insured by the Rural Housing
Service.</text>
</clause></subparagraph></paragraph><paragraph id="ID98f03e475080453f9a5292a54ff0c609"><enum>(4)</enum><header>Implementation</header><text>Regulations
required or authorized to be prescribed under this subsection—</text>
<subparagraph id="ID3c72781b9acc4e49ae7e4fb66663ea8e"><enum>(A)</enum><text>shall be
prescribed in final form before the end of the 12-month period beginning on the
date of enactment of this section; and</text>
</subparagraph><subparagraph id="ID6137f72482924a929b2106548a160733"><enum>(B)</enum><text>shall take effect
not later than 18 months after the date of enactment of this section.</text>
</subparagraph></paragraph></subsection><subsection id="IDd7d40d0f42eb4e6e9bc6900e4fe0e4ef"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="ID32bcc85e98ed40f6acc6021e3d6d83bf"><enum>(1)</enum><header>Average prime
offer rate</header><text>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>
</paragraph><paragraph id="IDa994a81dc51a48f6b01c71e99a0181a9"><enum>(2)</enum><header>Prepayment
penalty</header><text>The term <term>prepayment penalty</term> means any
penalty for paying all or part of the principal on an extension of credit
before the date on which the principal is due, including a computation of a
refund of unearned interest by a method that is less favorable to the consumer
than the actuarial method, as defined in section 933(d) of the Housing and
Community Development Act of 1992 (15 U.S.C. 1615(d)).</text>
</paragraph><paragraph id="ID2444ca3891e84c72862dc49b163a126f"><enum>(3)</enum><header>Qualified
mortgage</header><text>The term <term>qualified mortgage</term> means—</text>
<subparagraph id="id3BD430F7155D478A917A87014ACEB1D3"><enum>(A)</enum><text>any residential
mortgage loan—</text>
<clause id="IDaf9bb555c574497f86cc447863f73ef6"><enum>(i)</enum><text>that
does not have an adjustable rate;</text>
</clause><clause id="ID45d56dc82874491494adae75d197dad5"><enum>(ii)</enum><text>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 Bureau;</text>
</clause><clause id="IDbe40ce3ea90d4a22a1070d6cc422ff4d"><enum>(iii)</enum><text>that does not
provide for a repayment schedule that results in negative amortization at any
time;</text>
</clause><clause id="ID83ae195d88d247488235be73bd45b2ae"><enum>(iv)</enum><text>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 id="IDb07581c967dc4e778b4e0585b57e9cfd"><enum>(v)</enum><text>which
has an annual percentage rate that does not exceed the average prime offer rate
for a comparable transaction, as of the date on which the interest rate is
set—</text>
<subclause id="ID4c8766892c9e47859c6b60720a1fecb2"><enum>(I)</enum><text>by
1.5 or more percentage points, in the case of a first lien residential mortgage
loan having an original principal obligation amount that is equal to or less
than the amount of the maximum limitation on the original principal obligation
of a mortgage in effect for a residence of the applicable size, as of the date
on which such interest rate is set, pursuant to the sixth sentence of section
305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2));</text>
</subclause><subclause id="ID58b50c8efc01497a989abc6686ac3191"><enum>(II)</enum><text>by 2.5 or more
percentage points, in the case of a first lien residential mortgage loan having
an original principal obligation amount that is more than the amount of the
maximum limitation on the original principal obligation of a mortgage in effect
for a residence of the applicable size, as of the date on which such interest
rate is set, pursuant to the sixth sentence of section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)); or</text>
</subclause><subclause id="ID8aecf50b590c4faa96b29a0dd3b6eab8"><enum>(III)</enum><text>by 3.5 or more
percentage points, in the case of a subordinate lien residential mortgage
loan;</text>
</subclause></clause><clause id="ID81f86ab9c7be412f8d77d7252ac346ad"><enum>(vi)</enum><text>for
which the income and financial resources relied upon to qualify the obligors on
the loan are verified and documented;</text>
</clause><clause id="IDa16066f09fc4451fb3545acaae56034e"><enum>(vii)</enum><text>for
which the underwriting process is based on a payment schedule that fully
amortizes the loan over the loan term and takes into account all applicable
taxes, insurance, and assessments;</text>
</clause><clause id="IDab568dfdd2974b2c89c01b31732fad5f"><enum>(viii)</enum><text>that does not
cause the total monthly debts of the consumer, including amounts under the
loan, to exceed a percentage established by regulation of the monthly gross
income of the consumer, or such other maximum percentage of such income, as may
be prescribed by regulation under subsection (g), which rules shall take into
consideration the income of the consumer available to pay regular expenses
after payment of all installment and revolving debt;</text>
</clause><clause id="ID37a18c667fcb4405a5ace6d88fadcb4c"><enum>(ix)</enum><text>for
which the total points and fees payable in connection with the loan do not
exceed 2 percent of the total loan amount, where the term <quote>points and
fees</quote> 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 id="IDa96916b0ed3843e68b68e43f334a4a16"><enum>(x)</enum><text>for
which the term of the loan does not exceed 30 years, except as such term may be
extended under subsection (g); and</text>
</clause></subparagraph><subparagraph id="IDb5cd57c68ff545beae970931e05f7fb9"><enum>(B)</enum><text>any reverse
mortgage that is insured by the Federal Housing Administration or complies with
the condition established in subparagraph (A)(v).</text>
</subparagraph></paragraph><paragraph id="IDcaf78e43cfa04189a8dcfb9a5a621357"><enum>(4)</enum><header>Residential
mortgage loan</header><text>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 an extension of credit
relating to a plan described in section 101(53D) of title 11, United States
Code.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID192e3fbb52d143359aa2b364f10b1089"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 129(c) of the Truth in Lending Act (15 U.S.C.
1639(c)) is amended—</text>
<paragraph id="idFB346C49F8244C88867E32473A9B260E"><enum>(1)</enum><text>by
striking paragraph (2);</text>
</paragraph><paragraph id="idE4F61EF5FB274CF4A175723F91094D00"><enum>(2)</enum><text>by
striking <quote>(1) <header-in-text level="paragraph" style="OLC">In
general.—</header-in-text></quote>; and</text>
</paragraph><paragraph id="idFEC182F303AF46E9B5ECDA1DC96B1D0E"><enum>(3)</enum><text>by
redesignating subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively.</text>
</paragraph></subsection></section><section id="IDbf91e9aa621a4e54a63c63aacd3082e6"><enum>1075.</enum><header>Assistance
for economically vulnerable individuals and families</header>
<subsection id="IDb9b70899fc5b415a99c0e99832064651"><enum>(a)</enum><header>HERA
amendments</header><text>Section 1132 of the Housing and Economic Recovery Act
of 2008 (12 U.S.C. 1701x note) is amended—</text>
<paragraph id="ID61fd42da97484d66bde69233a4814cc6"><enum>(1)</enum><text>in
subsection (a), by inserting in each of paragraphs (1), (2), (3), and (4) “or
economically vulnerable individuals and families” after
<quote>homebuyers</quote> each place that term appears;</text>
</paragraph><paragraph id="IDcc66681c47ef477e8f178633836d0ac1"><enum>(2)</enum><text>in
subsection (b)(1), by inserting <quote>or economically vulnerable individuals
and families</quote> after <quote>homebuyers</quote>;</text>
</paragraph><paragraph id="IDc898e07421cc4fc7a83ad250486b58be"><enum>(3)</enum><text>in
subsection (c)(1)—</text>
<subparagraph id="ID3fc70bfccc0a4491a3eaae383aec8758"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>or</quote> at the end;</text>
</subparagraph><subparagraph id="ID17ffc430b1d340f3a6fc779039ac21b8"><enum>(B)</enum><text>in subparagraph
(B), by striking the period at the end and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="ID4a874b4ecd8b42b8b3801ea6445b26af"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id38A1428F3F2C47E1BB6C0A23E2980D2D" style="OLC">
<subparagraph id="ID725abd9d6f7043418b8a144853491664"><enum>(C)</enum><text>a nonprofit
corporation that—</text>
<clause id="IDc668e3a5cbbb4530b1899164d720065b"><enum>(i)</enum><text>is
exempt from taxation under section 501(c)(3) of the Internal Revenue Code of
1986; and</text>
</clause><clause id="ID3ed559f8a5f049f4b75c0e99793a9494"><enum>(ii)</enum><text>specializes or
has expertise in working with economically vulnerable individuals and families,
but whose primary purpose is not provision of credit counseling
services.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID69cdba8c5783475887f2172a4fb7f3b3"><enum>(4)</enum><text>in
subsection (d)(1), by striking <quote>not more than 5</quote>.</text>
</paragraph></subsection><subsection id="ID6c903b2a48b54ab193b898b7c0201e30"><enum>(b)</enum><header>Applicability</header><text>Amendments
made by subsection (a) shall not apply to programs authorized by section 1132
of the Housing and Economic Recovery Act of 2008 (12 U.S.C. 1701x note) that
are funded with appropriations prior to fiscal year 2011.</text>
</subsection></section><section id="id8DB8AF88744F43D0895EDA2E4AF5916E"><enum>1076.</enum><header>Remittance
transfers</header>
<subsection id="id0F4BF903665E410A92C83A1092E7C405"><enum>(a)</enum><header>Treatment of
remittance transfers</header><text>The <act-name parsable-cite="EFTA">Electronic Fund Transfer Act</act-name> (15 U.S.C. 1693 et
seq.) is amended—</text>
<paragraph id="id7093FDA7E858428EAAD77EC597BE3D57"><enum>(1)</enum><text>in
section 902(b) (15 U.S.C. 1693(b)), by inserting <quote>and remittance</quote>
after <quote>electronic fund</quote>;</text>
</paragraph><paragraph id="id3C576B9FE48F400E8A4DFCD6FF07BB8E"><enum>(2)</enum><text>by
redesignating sections 919, 920, 921, and 922 as sections 920, 921, 922, and
923, respectively; and</text>
</paragraph><paragraph id="idAA372EC0A2034DDC9111792B08D56F8F"><enum>(3)</enum><text>by
inserting after section 918 the following:</text>
<quoted-block display-inline="no-display-inline" id="idB90AB7DB3C194CDEB40CA5BD3B562B95" style="OLC">
<section id="id0908105751C1487CBF9C87551404F866"><enum>919.</enum><header>Remittance
transfers</header>
<subsection id="idBC11567835914156BB38359B964D000B"><enum>(a)</enum><header>Disclosures
required for remittance transfers</header>
<paragraph id="idF4DABCE5FAF5444B9C42097085891D83"><enum>(1)</enum><header>In
general</header><text>Each remittance transfer provider shall make disclosures
as required under this section and in accordance with rules prescribed by the
Board.</text>
</paragraph><paragraph id="id2A19FB258C624385846CCD1687386CC2"><enum>(2)</enum><header>Storefront
disclosures</header>
<subparagraph id="idF07BDC7F5A75495B88656B95DFF78E86"><enum>(A)</enum><header>In
general</header><text>At every physical storefront location owned or controlled
by a remittance transfer provider (with respect to remittance transfer
activities), the remittance transfer provider shall prominently post, and
update daily, a notice describing a model transfer for the amounts of $100 and
$200 (in United States dollars) showing the amount of currency that will be
received by the designated recipient, using the values of the currency into
which the funds will be exchanged for the 3 currencies to which that particular
storefront sends the greatest number of remittance transfer payments, measured
irrespective of the value of such payments. The values shall include all fees
charged by the remittance transfer provider, taken out of the $100 and $200
amounts.</text>
</subparagraph><subparagraph commented="no" id="id1877249AFBFA440F9D0B436B7B94A0BA"><enum>(B)</enum><header>Electronic
disclosure</header><text>Subject to the rules prescribed by the Board, a
remittance transfer provider shall prominently post, and update daily, a notice
describing a model transfer, as described in subparagraph (A), on the Internet
site owned or controlled by the remittance transfer provider which senders use
to electronically conduct remittance transfer transactions.</text>
</subparagraph></paragraph><paragraph id="id0D73DB676E804EBD833091C2D90AC4D3"><enum>(3)</enum><header>Specific
disclosures</header><text>In addition to any other disclosures applicable under
this title, and subject to paragraph (4), a remittance transfer provider shall
provide, in writing and in a form that the sender may keep, to each sender
requesting a remittance transfer, as applicable to the transaction—</text>
<subparagraph id="id5076BCEFE57441EFB92059C0AC3B91B9"><enum>(A)</enum><text>at the time at
which the sender requests a remittance transfer to be initiated, and prior to
the sender making any payment in connection with the remittance transfer, a
disclosure describing the amount of currency that will be sent to the
designated recipient, using the values of the currency into which the funds
will be exchanged; and</text>
</subparagraph><subparagraph id="id6F9145EBE88D4BF596F6C89804F1F50F"><enum>(B)</enum><text>at the time at
which the sender makes payment in connection with the remittance
transfer—</text>
<clause id="idA79F9F1223A04C0CAFF14C7EE25CBD38"><enum>(i)</enum><text>a
receipt showing—</text>
<subclause id="idBCE0CA764D194469AEF2984F0B521582"><enum>(I)</enum><text>the information
described in subparagraph (A);</text>
</subclause><subclause id="id37F781FDFF3F4165BBEF0A5176860357"><enum>(II)</enum><text>the promised
date of delivery to the designated recipient; and</text>
</subclause><subclause id="id68C9D358B3814E2BA81ECE367FA7C395"><enum>(III)</enum><text>the name and
either the telephone number or the address of the designated recipient;
and</text>
</subclause></clause><clause id="idF3034693853E4662ABCDB3B0D0C58887"><enum>(ii)</enum><text>a
statement containing—</text>
<subclause id="id60EF21EF37E44E778244012F2B0BBA02"><enum>(I)</enum><text>information about
the rights of the sender under this section regarding the resolution of errors;
and</text>
</subclause><subclause id="id9ACAB848973C4177B80D2483CABEC8C5"><enum>(II)</enum><text>appropriate
contact information for—</text>
<item id="idB4BBF06BF88E4740A73068A11DDA1AA2"><enum>(aa)</enum><text>the
remittance transfer provider; and</text>
</item><item id="idB848457B769548ED9BC2A435A4D241A1"><enum>(bb)</enum><text>each
State or Federal agency supervising the remittance transfer provider, including
its State licensing authority or Federal regulator, as applicable.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph id="id6B0191AC25174EAFB92BAA40F8782BA3"><enum>(4)</enum><header>Requirements
relating to disclosures</header><text>With respect to each disclosure required
to be provided under paragraph (3), and subject to paragraph (5), a remittance
transfer provider shall—</text>
<subparagraph id="idBE5910F3B7854E45AEC75E9EFAE38468"><enum>(A)</enum><text>provide an
initial notice and receipt, as required by subparagraphs (A) and (B) of
paragraph (3), and an error resolution statement, as required by subsection
(c), that clearly and conspicuously describe the information required to be
disclosed therein; and</text>
</subparagraph><subparagraph id="id7D1F1A698517463EA4482260DD4EAF3A"><enum>(B)</enum><text>with respect to
any transaction that a sender conducts electronically, comply with the
Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et
seq.).</text>
</subparagraph></paragraph><paragraph id="id06C5EFD8549C422784DCBCF3D2B60545"><enum>(5)</enum><header>Exemption
authority</header><text>The Board may, by rule, permit a remittance transfer
provider to satisfy the requirements of—</text>
<subparagraph id="id51606303EE434FDDBF28DD987DEE3AFF"><enum>(A)</enum><text>paragraph (3)(A)
orally, if the transaction is conducted entirely by telephone;</text>
</subparagraph><subparagraph id="id2AD7D9891A4C48E9971F9A2F32B922DF"><enum>(B)</enum><text>paragraph (3)(B),
by mailing the documents required under such subparagraph to the sender, not
later than 1 business day after the date on which the transaction is conducted,
if the transaction is conducted entirely by telephone;</text>
</subparagraph><subparagraph id="idC3DEFB89B25A434CB7D037F13D952D95"><enum>(C)</enum><text>subparagraphs (A)
and (B) of paragraph (3) together in one written disclosure, but only to the
extent that the information provided in accordance with paragraph (3)(A) is
accurate at the time at which payment is made in connection with the subject
remittance transfer;</text>
</subparagraph><subparagraph id="id654F8212E89D41CB986D65F238205D98"><enum>(D)</enum><text>paragraph (3)(A),
if a sender initiates a transaction to one of those countries displayed, in the
exact amount of the transfers displayed pursuant to paragraph (2), if the Board
finds it to be appropriate; and</text>
</subparagraph><subparagraph id="id9CCD614930B94168A62885EFE482FAFE"><enum>(E)</enum><text>paragraph (3)(A),
without compliance with section 101(c) of the Electronic Signatures in Global
Commerce Act, if a sender initiates the transaction electronically and the
information is displayed electronically in a manner that the sender can
keep.</text>
</subparagraph></paragraph></subsection><subsection id="id33AFBBB2D1F642CF89F784DCDFBDDE86"><enum>(b)</enum><header>Foreign
language disclosures</header>
<paragraph id="idF5F64E095DF9402EB474F485A5E3E161"><enum>(1)</enum><header>In
general</header><text>The disclosures required under this section shall be made
in English and in each of the same foreign languages principally used by the
remittance transfer provider, or any of its agents, to advertise, solicit, or
market, either orally or in writing, at that office.</text>
</paragraph><paragraph id="id1CC7E589C1C7455FAA6CB773C2A9C94E"><enum>(2)</enum><header>Accounts</header><text>In
the case of a sender who holds a demand deposit, savings deposit, or other
asset account with the remittance transfer provider (other than an occasional
or incidental credit balance under an open end credit plan, as defined in
section 103(i) of the Truth in Lending Act), the disclosures required under
this section shall be made in the language or languages principally used by the
remittance transfer provider to communicate to the sender with respect to the
account.</text>
</paragraph></subsection><subsection id="id926E6F77EC874416945675A530183D87"><enum>(c)</enum><header>Remittance
transfer errors</header>
<paragraph id="idAABAF4A5CAE24D79970C094215965DDF"><enum>(1)</enum><header>Error
resolution</header>
<subparagraph id="id6B93034074694057978D22F6566D425E"><enum>(A)</enum><header>In
general</header><text>If a remittance transfer provider receives oral or
written notice from the sender within 180 days of the promised date of delivery
that an error occurred with respect to a remittance transfer, including the
amount of currency designated in subsection (a)(3)(A) that was to be sent to
the designated recipient of the remittance transfer, using the values of the
currency into which the funds should have been exchanged, but was not made
available to the designated recipient in the foreign country, the remittance
transfer provider shall resolve the error pursuant to this subsection and
investigate the reason for the error.</text>
</subparagraph><subparagraph id="idF744D8C7AF794EAF947F87FD4C54E345"><enum>(B)</enum><header>Remedies</header><text>Not
later than 90 days after the date of receipt of a notice from the sender
pursuant to subparagraph (A), the remittance transfer provider shall, as
applicable to the error and as designated by the sender—</text>
<clause id="id5EB8EC6E1B654D30B005E2E4F0E75DFD"><enum>(i)</enum><text>refund to the
sender the total amount of funds tendered by the sender in connection with the
remittance transfer which was not properly transmitted;</text>
</clause><clause id="id22B54F0137714810B716DDB4BC037709"><enum>(ii)</enum><text>make
available to the designated recipient, without additional cost to the
designated recipient or to the sender, the amount appropriate to resolve the
error;</text>
</clause><clause id="id676E49DFC9F34F479036E98E317AA691"><enum>(iii)</enum><text>provide such
other remedy, as determined appropriate by rule of the Board for the protection
of senders; or</text>
</clause><clause id="idBF5E00B5A668483B8E9E5913D30642AF"><enum>(iv)</enum><text>provide written
notice to the sender that there was no error with an explanation responding to
the specific complaint of the sender.</text>
</clause></subparagraph></paragraph><paragraph id="idBEC18C3BC0F448D2813E18423BBBD910"><enum>(2)</enum><header>Rules</header><text>The
Board shall establish, by rule issued not later than 1 calendar year after the
date of enactment of the Restoring American Financial Stability Act of 2010,
clear and appropriate standards for remittance transfer providers with respect
to error resolution relating to remittance transfers, to protect senders from
such errors. Standards prescribed under this paragraph shall include
appropriate standards regarding record keeping, as required, including
documentation—</text>
<subparagraph id="idA9406CD3500E4BCA92347A8211D181A5"><enum>(A)</enum><text>of the complaint
of the sender;</text>
</subparagraph><subparagraph id="idB1724E88039649149E81CD87A60FCDA7"><enum>(B)</enum><text>that the sender
provides the remittance transfer provider with respect to the alleged error;
and</text>
</subparagraph><subparagraph id="idB1F01F42B6174D788A42141A632C6D57"><enum>(C)</enum><text>of the findings
of the remittance transfer provider regarding the investigation of the alleged
error that the sender brought to their attention.</text>
</subparagraph></paragraph></subsection><subsection id="id85D6BD79FF8B467F8ED352733463277C"><enum>(d)</enum><header>Applicability
of this title</header>
<paragraph id="idEF407EC86A7F4F76821C68860091A0DF"><enum>(1)</enum><header>In
general</header><text>A remittance transfer that is not an electronic fund
transfer, as defined in section 903, shall not be subject to any of the
provisions of sections 905 through 913. A remittance transfer that is an
electronic fund transfer, as defined in section 903, shall be subject to all
provisions of this title, except for section 908, that are otherwise applicable
to electronic fund transfers under this title.</text>
</paragraph><paragraph id="idC0B85D78CFC14D8495B8A72609613F7E"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed—</text>
<subparagraph id="id0AF0D6229F2140A892B4E342D50528C9"><enum>(A)</enum><text>to affect the
application to any transaction, to any remittance provider, or to any other
person of any of the provisions of subchapter II of chapter 53 of title 31,
United States Code, section 21 of the Federal Deposit Insurance Act (12 U.S.C.
1829b), or chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951–1959), or
any regulations promulgated thereunder; or</text>
</subparagraph><subparagraph id="id2C1E33419ECC4DBA9E092572909F236F"><enum>(B)</enum><text>to cause any fund
transfer that would not otherwise be treated as such under paragraph (1) to be
treated as an electronic fund transfer, or as otherwise subject to this title,
for the purposes of any of the provisions referred to in subparagraph (A) or
any regulations promulgated thereunder.</text>
</subparagraph></paragraph></subsection><subsection id="id487302EE6B334248AE5B92C892F5B1D2"><enum>(e)</enum><header>Acts of
agents</header><text>A remittance transfer provider shall be liable for any
violation of this section by any agent, authorized delegate, or person
affiliated with such provider, when such agent, authorized delegate, or
affiliate acts for that remittance transfer provider.</text>
</subsection><subsection id="id9BAD3E04DF9947678BC1CE3AFEF02677"><enum>(f)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="idFAF2942CC2C142B881F28C8D6F5C23AC"><enum>(1)</enum><text>the term
<term>designated recipient</term> means any person located in a foreign country
and identified by the sender as the authorized recipient of a remittance
transfer to be made by a remittance transfer provider, except that a designated
recipient shall not be deemed to be a consumer for purposes of this Act;</text>
</paragraph><paragraph id="id51D1EFFA4DB440C287D42EA5FE7A6BF2"><enum>(2)</enum><text>the term
<term>remittance transfer</term> means the electronic (as defined in section
106(2) of the Electronic Signatures in Global and National Commerce Act (15
U.S.C. 7006(2))) transfer of funds requested by a sender located in any State
to a designated recipient that is initiated by a remittance transfer provider,
whether or not the sender holds an account with the remittance transfer
provider or whether or not the remittance transfer is also an electronic fund
transfer, as defined in section 903;</text>
</paragraph><paragraph id="id31B0F3443A8A48118F821B419D861834"><enum>(3)</enum><text>the term
<term>remittance transfer provider</term> means any person or financial
institution that provides remittance transfers for a consumer in the normal
course of its business, whether or not the consumer holds an account with such
person or financial institution; and</text>
</paragraph><paragraph id="id35E77337382E4A748D9D3C42D3B23F8B"><enum>(4)</enum><text>the term
<term>sender</term> means a consumer who requests a remittance provider to send
a remittance transfer for the consumer to a designated
recipient.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idF4289D2A47344ECB9072C0E8F4214970"><enum>(b)</enum><header>Automated
clearinghouse system</header>
<paragraph id="idD6802E4455224E0F9CCF59593085FED2"><enum>(1)</enum><header>Expansion of
system</header><text>The Board of Governors shall work with the Federal reserve
banks to expand the use of the automated clearinghouse system for remittance
transfers to foreign countries, with a focus on countries that receive
significant remittance transfers from the United States, based on—</text>
<subparagraph id="idA91982A5911541DAA5508DF6ED1F5C20"><enum>(A)</enum><text>the number,
volume, and size of such transfers;</text>
</subparagraph><subparagraph id="id0F9917A2FF5C42D2ADDAAEDBD0A7A85D"><enum>(B)</enum><text>the significance
of the volume of such transfers relative to the external financial flows of the
receiving country, including—</text>
<clause id="idAE7F07F1D31E4BD7882F80CC914B46AB"><enum>(i)</enum><text>the
total amount transferred; and</text>
</clause><clause id="id9C72EC1729CE4C5EB22F099DE60294F2"><enum>(ii)</enum><text>the
total volume of payments made by United States Government agencies to
beneficiaries and retirees living abroad;</text>
</clause></subparagraph><subparagraph id="id5532848843724EC396EDF1D653DDAAAB"><enum>(C)</enum><text>the feasibility
of such an expansion; and</text>
</subparagraph><subparagraph id="idDA76159190DE4EFE80A4024077715AE5"><enum>(D)</enum><text>the ability of
the Federal Reserve System to establish payment gateways in different
geographic regions and currency zones to receive remittance transfers and route
them through the payments systems in the destination countries.</text>
</subparagraph></paragraph><paragraph id="id94313F98732F4C73AC95DB54E1D61B3C"><enum>(2)</enum><header>Report to
congress</header><text>Not later than one calendar year after the date of
enactment of this Act, and on April 30 biennially thereafter during the 10-year
period beginning on that date of enactment, the Board of Governors shall submit
a report to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives on the
status of the automated clearinghouse system and its progress in complying with
the requirements of this subsection. The report shall include an analysis of
adoption rates of International ACH Transactions rules and formats, the
efficacy of increasing adoption rates, and potential recommendations to
increase adoption.</text>
</paragraph></subsection><subsection id="id0D59CD6E025D4996A1D70DEF66AAEEF0"><enum>(c)</enum><header>Expansion of
financial institution provision of remittance transfers</header>
<paragraph id="idD2A0D9E65A5F496F9BE6772B330AA521"><enum>(1)</enum><header>Provision of
guidelines to institutions</header><text>Each of the Federal banking agencies
and the National Credit Union Administration shall provide guidelines to
financial institutions under the jurisdiction of the agency regarding the
offering of low-cost remittance transfers and no-cost or low-cost basic
consumer accounts, as well as agency services to remittance transfer
providers.</text>
</paragraph><paragraph id="id2C13836EFE8A479DAEE0044C51D7D49E"><enum>(2)</enum><header>Assistance to
financial literacy commission</header><text>As part of its duties as members of
the Financial Literacy and Education Commission, the Bureau, the Federal
banking agencies, and the National Credit Union Administration shall assist the
Financial Literacy and Education Commission in executing the Strategy for
Assuring Financial Empowerment (or the <quote>SAFE Strategy</quote>), as it
relates to remittances.</text>
</paragraph></subsection><subsection id="id7765A8294B36499BACA4BF841AC38B8A"><enum>(d)</enum><header>Federal Credit
Union Act conforming amendment</header><text display-inline="yes-display-inline">Paragraph (12) of section 107 of the
<act-name parsable-cite="FCUA">Federal Credit Union Act</act-name> (12 U.S.C.
1757) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idAEF94E525C4A46638CC200DD8E8E155C" style="OLC">
<paragraph id="id87AC32B1DCF24CF5A1CFBEDDBBA5AA28"><enum>(12)</enum><text>in accordance
with regulations prescribed by the Board—</text>
<subparagraph id="idA1A5921FF6BA42DEB0BCB35989DA4DD7"><enum>(A)</enum><text>to sell, to
persons in the field of membership, negotiable checks (including travelers
checks), money orders, and other similar money transfer instruments (including
international and domestic electronic fund transfers);</text>
</subparagraph><subparagraph id="id6610320BB4B545FEA0F0967F49D5DEDB"><enum>(B)</enum><text>to provide
remittance transfers, as defined in section 919 of the
<act-name parsable-cite="EFTA">Electronic Fund Transfer Act</act-name>, to
persons in the field of membership; and</text>
</subparagraph><subparagraph id="idCCA6B3D6AFEA43C8B15CBDF7E3CD4F9C"><enum>(C)</enum><text>to cash checks
and money orders for persons in the field of membership for a
fee;</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id11013149F0D3404FAF1C5F7C6AF29DCB"><enum>H</enum><header>Conforming
Amendments</header>
<section id="idDC10FFD5300C4C7AB9896A4D72E408BA"><enum>1081.</enum><header>Amendments to
the Inspector General Act</header><text display-inline="no-display-inline">Effective on the date of enactment of this
Act, the Inspector General Act of 1978 (5 U.S.C. App. 3) is amended—</text>
<paragraph id="ID66a4b88677074d17913acd056a9e10ed"><enum>(1)</enum><text>in
section 8G(a)(2), by inserting <quote>and the Bureau of Consumer Financial
Protection</quote> after <quote>Board of Governors of the Federal Reserve
System</quote>;</text>
</paragraph><paragraph id="ID6374ce741a324103b7f2b663e5fd257f"><enum>(2)</enum><text>in
section 8G(c), by adding at the end the following: <quote>For purposes of
implementing this section, the Chairman of the Board of Governors of the
Federal Reserve System shall appoint the Inspector General of the Board of
Governors of the Federal Reserve System and the Bureau of Consumer Financial
Protection. The Inspector General of the Board of Governors of the Federal
Reserve System and the Bureau of Consumer Financial Protection shall have all
of the authorities and responsibilities provided by this Act with respect to
the Bureau of Consumer Financial Protection, as if the Bureau were part of the
Board of Governors of the Federal Reserve System.</quote>; and</text>
</paragraph><paragraph id="ID2cb0fcd42c56440c869686dccb09397f"><enum>(3)</enum><text>in
section 8G(g)(3), by inserting <quote>and the Bureau of Consumer Financial
Protection</quote> after <quote>Board of Governors of the Federal Reserve
System</quote> the first place that term appears.</text>
</paragraph></section><section id="ID483638841268420b808a8b1ea5800daf"><enum>1082.</enum><header>Amendments to
the Privacy Act of 1974</header><text display-inline="no-display-inline">Effective on the date of enactment of this
Act, section 552a of title 5, United States Code, is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4DF5F2DEFA1B499FAB6261ED8CFB6ADD" style="OLC">
<subsection id="IDa97be0823ca44fcd859e7a983d1af096"><enum>(w)</enum><header>Applicability
to Bureau of Consumer Financial Protection</header><text>Except as provided in
the Consumer Financial Protection Act of 2010, this section shall apply with
respect to the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDe539d309386c45dc9ffa728aca2f205a"><enum>1083.</enum><header>Amendments to
the Alternative Mortgage Transaction Parity Act of 1982</header>
<subsection id="id9CC3FCE7213C496D825E960B777D40A9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.) is
amended—</text>
<paragraph id="idEFBFB664D9CA44A69B448055CCECF88B"><enum>(1)</enum><text display-inline="yes-display-inline">in section 803 (12 U.S.C. 3802(1)), by
striking <quote>1974</quote> and all that follows through <quote>described and
defined</quote> and inserting the following: <quote>1974), in which the
interest rate or finance charge may be adjusted or renegotiated, described and
defined</quote>; and</text>
</paragraph><paragraph id="ID27ae90e97f4b4759926abd34f7d8269f"><enum>(2)</enum><text>in
section 804 (12 U.S.C. 3803)—</text>
<subparagraph id="ID42e3d1fd929142c1b21bab878c8c19b1"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="ID4222bcf2b871463cb415e4b79cc4f05b"><enum>(i)</enum><text>in each
of paragraphs (1), (2), and (3), by inserting after <quote>transactions
made</quote> each place that term appears <quote>on or before the designated
transfer date, as determined under section 1062 of the Consumer Financial
Protection Act of 2010,</quote>;</text>
</clause><clause id="ID933e35f19c10470a9026aef6589cbf68"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>and</quote> at the end;</text>
</clause><clause id="IDd184979d64a2429492dac5e7a42bfaeb"><enum>(iii)</enum><text>in
paragraph (3), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="ID224d56a444cd4d52bfda7107d90296a6"><enum>(iv)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id2471111CC57D4AF6A261989B85B84EFC" style="OLC">
<paragraph id="IDa7d11a56330948f0abd84554223330bf"><enum>(4)</enum><text>with respect to
transactions made after the designated transfer date, only in accordance with
regulations governing alternative mortgage transactions, as issued by the
Bureau of Consumer Financial Protection for federally chartered housing
creditors, in accordance with the rulemaking authority granted to the Bureau of
Consumer Financial Protection with regard to federally chartered housing
creditors under provisions of law other than this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDfdb36a9ef1a34eb4a889f5a824e0e251"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id801F2A1D9859427B9BCC2E3B13908268" style="OLC">
<subsection id="IDa175896c4d344e9b9398dcf301895dd9"><enum>(c)</enum><header>Preemption of
state law</header><text>An alternative mortgage transaction may be made by a
housing creditor in accordance with this section, notwithstanding any State
constitution, law, or regulation that prohibits an alternative mortgage
transaction. For purposes of this subsection, a State constitution, law, or
regulation that prohibits an alternative mortgage transaction does not include
any State constitution, law, or regulation that regulates mortgage transactions
generally, including any restriction on prepayment penalties or late
charges.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID40f4c680a2cf4e43b0701bb89bb4129d"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1B953A3057754E55A508D5C8635C96E9" style="OLC">
<subsection id="ID3613cb3ffe074fb69ca1d84b6ad6ff7e"><enum>(d)</enum><header>Bureau
actions</header><text>The Bureau of Consumer Financial Protection shall—</text>
<paragraph id="ID6ad3ca35060c4b7fad986e2c776f76b6"><enum>(1)</enum><text>review the
regulations identified by the Comptroller of the Currency and the National
Credit Union Administration, (as those rules exist on the designated transfer
date), as applicable under paragraphs (1) through (3) of subsection (a);</text>
</paragraph><paragraph id="IDa765354a9f524d97bf1ebfecabdb3803"><enum>(2)</enum><text>determine whether
such regulations are fair and not deceptive and otherwise meet the objectives
of the Consumer Financial Protection Act of 2010; and</text>
</paragraph><paragraph id="IDb02891925ad84c128923a23e7c5f615e"><enum>(3)</enum><text>promulgate
regulations under subsection (a)(4) after the designated transfer date.</text>
</paragraph></subsection><subsection id="id22A9B8A5BFBB439280A80BDDD89B0F2B"><enum>(e)</enum><header>Designated
transfer date</header><text>As used in this section, the term <quote>designated
transfer date</quote> means the date determined under section 1062 of the
Consumer Financial Protection Act of
2010.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="ID77d50f0d739e4967b2434093f4a360be"><enum>(b)</enum><header>Effective
date</header><text>This section and the amendments made by this section shall
become effective on the designated transfer date.</text>
</subsection><subsection id="ID17a5c27ec49546fe9cb9998ecb50a23e"><enum>(c)</enum><header>Rule of
construction</header><text>The amendments made by subsection (a) shall not
affect any transaction covered by the Alternative Mortgage Transaction Parity
Act of l982 (12 U.S.C. 3801 et seq.) and entered into on or before the
designated transfer date.</text>
</subsection></section><section id="IDed4f9e212c63431bab0be15f52e04a2a"><enum>1084.</enum><header>Amendments to
the Electronic Fund Transfer Act</header><text display-inline="no-display-inline">The Electronic Fund Transfer Act (15 U.S.C.
1693 et seq.) is amended—</text>
<paragraph commented="no" id="idF62795F93202433AB12ADA055E0D3898"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
that term appears and inserting <quote>Bureau</quote>, except in section 918
(as so designated by the Credit Card Act of 2009) (15 U.S.C. 1693o);</text>
</paragraph><paragraph commented="no" id="id588F9C60D6124510BF1D892DB95B2D32"><enum>(2)</enum><text display-inline="yes-display-inline">in section 903 (15 U.S.C. 1693a), by
striking paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idDF469E3A22D04B18A47C067DED3DC9FD" style="OLC">
<paragraph id="IDeaa4ac2ea9e44df9ac50f094be90687e"><enum>(3)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id9DD2621D61FA4E718FDBA39D39B66579"><enum>(3)</enum><text>in section 916(d)
(as so designated by section 401 of the Credit CARD Act of 2009) (15 U.S.C.
1693m)—</text>
<subparagraph id="ID01004d9840414b499bccb1eb24c1cabc"><enum>(A)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">Federal reserve
system</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Bureau of Consumer Financial
Protection</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="ID69913b3097b94458bec095bf49249487"><enum>(B)</enum><text>by striking
<quote>Federal Reserve System</quote> and inserting <quote>Bureau of Consumer
Financial Protection</quote>; and</text>
</subparagraph></paragraph><paragraph id="id7E6701440CAA495687CC9C897F92578A"><enum>(4)</enum><text>in
section 918 (as so designated by the Credit CARD Act of 2009) (15 U.S.C.
1693o)—</text>
<subparagraph id="ID498083c8196f48ddbe2c65c768cb7782"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="ID543e0bdeb67c4fdda89029c66add0596"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Except as otherwise
provided by subtitle B of the Consumer Financial Protection Act of 2010,
compliance</quote>; and</text>
</clause><clause id="IDd30a6d87ca5e4698ad5807ad5699ceb5"><enum>(ii)</enum><text>by
striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB9BACB2625EE40F29354091F9C26C29B" style="OLC">
<paragraph id="IDc10218cd7f9645ad96ce843f237354c3"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the
Bureau;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="ID817983670ca7457eac3e2dca1db3ed75"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id15F08EC87BFE44B7B971EA6B621888C5" style="OLC">
<subsection id="ID5b1a05a2e0884b37a816035970e8029b"><enum>(c)</enum><header>Overall
enforcement authority of the Federal Trade Commission</header><text>Except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under subsection (a),
and subject to subtitle B of the Consumer Financial Protection Act of 2010, 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 Federal Trade Commission to
enforce compliance by any person subject to the jurisdiction of the Federal
Trade Commission with the requirements imposed under this title, irrespective
of whether that person is engaged in commerce or meets any other jurisdictional
tests under the Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="IDbcfa00b792284fb9b158cdd7220f38c8"><enum>1085.</enum><header>Amendments to
the Equal Credit Opportunity Act</header><text display-inline="no-display-inline">The Equal Credit Opportunity Act (15 U.S.C.
1691 et seq.) is amended—</text>
<paragraph commented="no" id="id947BB60833614241876944A7955EA3D7"><enum>(1)</enum><text>by striking
<quote>Board</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="idF05CE82187884E6895465C54E29A1FB7"><enum>(2)</enum><text>in
section 702 (15 U.S.C. 1691a), by striking subsection (c) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id328B1CC7FB2941E1BC94EE6C8443472F" style="OLC">
<subsection id="ID99237bbe3ce14f73aedee2cc5e3d689f"><enum>(c)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5AD5856961674E1ABA913642C2C0404B"><enum>(3)</enum><text>in
section 703 (15 U.S.C. 1691b)—</text>
<subparagraph id="id512DDCFD8AC046CEB0F7BBCDBBC99AE0"><enum>(A)</enum><text>by striking the
section heading and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id91154BACD1EE493985CAFC12B362D75E" style="OLC">
<section id="id1E607CC0351047F6B2D6624C728DEC09"><enum>703.</enum><header>Promulgation
of regulations by the
Bureau</header>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID7c729a7c42c14be7b95b800b266ab424"><enum>(B)</enum><text>by striking
<quote>(a) <header-in-text level="subsection" style="OLC">Regulations</header-in-text>.—</quote>;</text>
</subparagraph><subparagraph id="IDfb2cecc931b74575a8104ca9c632b8f1"><enum>(C)</enum><text>by striking
subsection (b);</text>
</subparagraph><subparagraph id="ID54398e761a9f495c9875078b3f82368d"><enum>(D)</enum><text>by redesignating
paragraphs (1) through (5) as subsections (a) through (e), respectively;
and</text>
</subparagraph><subparagraph id="idF782F0B9F53341EDBC8F4B2D6D7B0A60"><enum>(E)</enum><text>in subsection
(c), as so redesignated, by striking <quote>paragraph (2)</quote> and inserting
<quote>subsection (b)</quote>;</text>
</subparagraph></paragraph><paragraph id="id4992F65E64C3416FA75A1EAA8413522D"><enum>(4)</enum><text>in
section 704 (15 U.S.C. 1691c)—</text>
<subparagraph id="IDadb1d9918d1c4db48a994299bf78a11d"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="ID8640d5d3a4c64c05b78316288214a95c"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Except as otherwise
provided by subtitle B of the Consumer Protection Financial Protection Act of
2010</quote>; and</text>
</clause><clause id="ID249a4c509c51472483cdaf27268ceb53"><enum>(ii)</enum><text>by
striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id71E187FEA9CC4837B77DD3DAE7C1AE37" style="OLC">
<paragraph id="IDaed8c4ee5ac44a278b5a282389dbacb5"><enum>(2)</enum><text>Subtitle E of the
Consumer Financial Protection Act of 2010, by the
Bureau.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="ID5db1097fef0e46a2b344cfbdd7023eb1"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idCE93A516778C4F83BDD76083D21A13C3" style="OLC">
<subsection id="ID2021fc73ce3640008a970f588c5cdc00"><enum>(c)</enum><header>Overall
enforcement authority of Federal trade commission</header><text>Except to the
extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under subsection (a),
and subject to subtitle B of the Consumer Financial Protection Act of 2010, 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 (15 U.S.C. 41 et seq.), a violation of any
requirement imposed under this subchapter shall be deemed a violation of a
requirement imposed under that Act. All of the functions and powers of the
Federal Trade Commission under the Federal Trade Commission Act are available
to the Federal Trade Commission to enforce compliance by any person with the
requirements imposed under this title, irrespective of whether that person is
engaged in commerce or meets any other jurisdictional tests under the Federal
Trade Commission Act, including the power to enforce any rule prescribed by the
Bureau under this title in the same manner as if the violation had been a
violation of a Federal Trade Commission trade regulation
rule.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id0362F0F893AB4015815AA3C043F46E7D"><enum>(C)</enum><text>in subsection
(d), by striking <quote>Board</quote> and inserting <quote>Bureau</quote>;
and</text>
</subparagraph></paragraph><paragraph id="id35CBF97890844F4490F8F99E1BD341B1"><enum>(5)</enum><text>in
section 706(e) (15 U.S.C. 1691e(e))—</text>
<subparagraph id="idCF4ED3A27E4349FE987A60CCAAC1F3A8"><enum>(A)</enum><text>in the subsection
heading—</text>
<clause id="IDb3712ebe7c214de0a91dcc8766859c84"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">Board</header-in-text></quote> each place that term appears and
inserting <quote><header-in-text level="subsection" style="OLC">Bureau</header-in-text></quote>; and</text>
</clause><clause id="IDad7c40902539483ea9b5b604732627cc"><enum>(ii)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">Federal reserve
system</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Bureau of Consumer Financial
Protection</header-in-text></quote>; and</text>
</clause></subparagraph><subparagraph id="ID09eb6e75b87a450389f9b9306128fe01"><enum>(B)</enum><text>by striking
<quote>Federal Reserve System</quote> and inserting <quote>Bureau of Consumer
Financial Protection</quote>.</text>
</subparagraph></paragraph></section><section id="ID5011e4e3414e406396b12d0a203c0a82"><enum>1086.</enum><header>Amendments to
the Expedited Funds Availability Act</header>
<subsection id="IDd634ebad2842409395fff1bd13ba299f"><enum>(a)</enum><header>Amendment to
Section <enum-in-header>603</enum-in-header></header><text>Section 603(d)(1) of
the Expedited Funds Availability Act (12 U.S.C. 4002) is amended by inserting
after <quote>Board</quote> the following <quote>, jointly with the Director of
the Bureau of Consumer Financial Protection,</quote>.</text>
</subsection><subsection id="ID94f547b12ece45b691c7798973ec7588"><enum>(b)</enum><header>Amendments to
Section <enum-in-header>604</enum-in-header></header><text>Section 604 of the
Expedited Funds Availability Act (12 U.S.C. 4003) is amended—</text>
<paragraph id="id15BFE37C75F641D3B26714DE316922B0"><enum>(1)</enum><text>by
inserting after <quote>Board</quote> each place that term appears, other than
in subsection (f), the following: <quote>, jointly with the Director of the
Bureau of Consumer Financial Protection,</quote>; and</text>
</paragraph><paragraph id="id903D8E6E7FE443AAB5ED29D36EEDE2F1"><enum>(2)</enum><text>in
subsection (f), by striking <quote>Board.</quote> each place that term appears
and inserting the following: <quote>Board, jointly with the Director of the
Bureau of Consumer Financial Protection.</quote>.</text>
</paragraph></subsection><subsection id="ID7b33a4e168be4538a580569fe16bb348"><enum>(c)</enum><header>Amendments to
Section <enum-in-header>605</enum-in-header></header><text>Section 605 of the
Expedited Funds Availability Act (12 U.S.C. 4004) is amended—</text>
<paragraph id="ID149ba7e3e3944db99be37aaf606dd35f"><enum>(1)</enum><text>by
inserting after <quote>Board</quote> each place that term appears, other than
in the heading for section 605(f)(1), the following: <quote>, jointly with the
Director of the Bureau of Consumer Financial Protection,</quote>; and</text>
</paragraph><paragraph id="IDaa33f09155654bfab16f884943151dbe"><enum>(2)</enum><text>in
subsection (f)(1), in the paragraph heading, by inserting
<quote><header-in-text level="paragraph" style="OLC">and
Bureau</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">board</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="ID10a1f22c03364030957ff07b3a9f231c"><enum>(d)</enum><header>Amendments to
Section <enum-in-header>609</enum-in-header></header><text>Section 609 of the
Expedited Funds Availability Act (12 U.S.C. 4008) is amended:</text>
<paragraph id="ID8de0050365ac4e92b978b2f81f1cec88"><enum>(1)</enum><text>in
subsection (a), by inserting after <quote>Board</quote> the following <quote>,
jointly with the Director of the Bureau of Consumer Financial
Protection,</quote>; and</text>
</paragraph><paragraph id="ID6358577f3cba40c387012549bef33a4c"><enum>(2)</enum><text>by
striking subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id009CF13212094F9BA0C59F0DC7CC2A2E" style="OLC">
<subsection id="idC5E5F4C9704A49589FE95A019BA97871"><enum>(e)</enum><header>Consultations</header><text>In
prescribing regulations under subsections (a) and (b), the Board and the
Director of the Bureau of Consumer Financial Protection, in the case of
subsection (a), and the Board, in the case of subsection (b), shall consult
with the Comptroller of the Currency, the Board of Directors of the Federal
Deposit Insurance Corporation, and the National Credit Union Administration
Board.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id3F430A906A3D4BBDB252B80D5394A19B"><enum>(e)</enum><header>Expedited funds
availability improvements</header><text>Section 603 of the Expedited Funds
Availability Act (12 U.S.C. 4002) is amended—</text>
<paragraph id="id77DE30EACC514EB1ACF49DD03F64CF60"><enum>(1)</enum><text>in
subsection (a)(2)(D), by striking “$100” and inserting <quote>$200</quote>;
and</text>
</paragraph><paragraph id="id4505A9DCE0EC4221ADF6C03CF7F3C710"><enum>(2)</enum><text>in
subsection (b)(3)(C), in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">$100</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">$200</header-in-text></quote>; and</text>
</paragraph><paragraph id="id3AD718A0D10A4A09B49BCCE7BB42D55F"><enum>(3)</enum><text>in
subsection (c)(1)(B)(iii), in the clause heading, by striking
<quote><header-in-text level="clause" style="OLC">$100</header-in-text></quote>
and inserting <quote><header-in-text level="clause" style="OLC">$200</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="id145E34ECFA0C45D0A9B64B89CF4FB00F"><enum>(f)</enum><header>Regular
adjustments for inflation</header><text display-inline="yes-display-inline">Section 607 of the Expedited Funds
Availability Act (12 U.S.C. 4006) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF8245963EB7B477E84840E527D2D6D06" style="OLC">
<subsection id="idB88EA868538A4AA48E1C55375B49B7B1"><enum>(f)</enum><header>Adjustments to
dollar amounts for inflation</header><text>The dollar amounts under this title
shall be adjusted every 5 years after December 31, 2011, by the annual
percentage increase in the Consumer Price Index for Urban Wage Earners and
Clerical Workers, as published by the Bureau of Labor Statistics, rounded to
the nearest multiple of
$25.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID726c0f89641340ba98e82bea43a5c2d2"><enum>1087.</enum><header>Amendments to
the Fair Credit Billing Act</header><text display-inline="no-display-inline">The Fair Credit Billing Act (15 U.S.C.
1666–1666j) is amended by striking <quote>Board</quote> each place that term
appears and inserting <quote>Bureau</quote>.</text>
</section><section id="IDbf3ebb35bd2b4b66acb625461b4aa7b4"><enum>1088.</enum><header>Amendments to
the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions
Act</header>
<subsection id="idE904BD27C2C946B1B087E256CFA72D35"><enum>(a)</enum><header>Fair Credit
Reporting Act</header><text>The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended—</text>
<paragraph id="ID60c8e6564d6640edafe46282fe3bb747"><enum>(1)</enum><text>in
section 603 (15 U.S.C. 1681a)—</text>
<subparagraph id="IDe8e605cd378e4e3f9167293cf1a1b4d7"><enum>(A)</enum><text>by redesignating
subsections (w) and (x) as subsections (x) and (y), respectively; and</text>
</subparagraph><subparagraph id="IDbd5ecae3cd52401980a4ecf909f746d7"><enum>(B)</enum><text>by inserting
after subsection (v) the following:</text>
<quoted-block display-inline="no-display-inline" id="id0F423B3258924C57B5CCD745333EE969" style="OLC">
<subsection id="ID4974f1754f4b4150bfafb1ce303599a0"><enum>(w)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID4df26cecb2634726ba353025498dde12"><enum>(2)</enum><text>except as
otherwise specifically provided in this subsection—</text>
<subparagraph id="ID10060e0b21724233a342494aba21e953"><enum>(A)</enum><text>by striking
<quote>Federal Trade Commission</quote> each place that term appears and
inserting <quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="ID0a4babc215ef452b9f776220f654e434"><enum>(B)</enum><text>by striking
<quote>FTC</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="ID79ea0226bbf34cac817f2b5ad9445014"><enum>(C)</enum><text>by striking
<quote>the Commission</quote> each place that term appears and inserting
<quote>the Bureau</quote>; and</text>
</subparagraph><subparagraph id="ID29643ba467b543e69aa2b9282cbc280c"><enum>(D)</enum><text>by striking
<quote>The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly</quote> each place that term appears and
inserting <quote>The Bureau shall</quote>;</text>
</subparagraph></paragraph><paragraph id="IDf469625f05884cf9a7063e315817c6cb"><enum>(3)</enum><text>in
section 603(k)(2) (15 U.S.C. 1681a(k)(2)), by striking <quote>Board of
Governors of the Federal Reserve System</quote> and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="IDdf7ad4b5c09e45c2b949af214840ae01"><enum>(4)</enum><text>in
section 604(g) (15 U.S.C. 1681b(g))—</text>
<subparagraph id="ID34653f3e409a41e9a3e5db307f6327c7"><enum>(A)</enum><text>in paragraph (3),
by striking subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC083CC11CFC54AC287B901F6A64023B3" style="OLC">
<subparagraph id="ID8a3eb82b514c419db9bb70dbef346d39"><enum>(C)</enum><text>as otherwise
determined to be necessary and appropriate, by regulation or order, by the
Bureau (consistent with the enforcement authorities prescribed under 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>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID68e5f6949daf4bc69dcb390fa7b82c35"><enum>(B)</enum><text>by striking
paragraph (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id85BC8FF94BE143C2A8FBDB3430F6E156" style="OLC">
<paragraph id="IDda016f3b91d74d9a965e9ad30bb9c22b"><enum>(5)</enum><header>Regulations and
effective date for paragraph (2)</header>
<subparagraph id="ID5445513971be496284c243422cd26cfd"><enum>(A)</enum><header>Regulations
required</header><text>The Bureau may, after notice and opportunity for
comment, prescribe regulations that permit transactions under paragraph (2)
that are determined to be necessary and appropriate to protect legitimate
operational, transactional, risk, consumer, and other needs (and which shall
include permitting actions necessary for administrative verification purposes),
consistent with the intent of paragraph (2) to restrict the use of medical
information for inappropriate purposes.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDd381f420f6fb41849cf21e6faa8caf58"><enum>(C)</enum><text>by striking
paragraph (6);</text>
</subparagraph></paragraph><paragraph id="ID9f3c8b429e954cb39b168a5e7a2ed912"><enum>(5)</enum><text>in
section 611(e)(2) (15 U.S.C. 1681i(e)), by striking paragraph (2) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="id6A311A2315B040AB9DE52398C1AD3502" style="OLC">
<paragraph id="IDe56a45227eac4f1ba39b37059d4ede64"><enum>(2)</enum><header>Exclusion</header><text>Complaints
received or obtained by the Bureau pursuant to its investigative authority
under the Consumer Financial Protection Act of 2010 shall not be subject to
paragraph
(1).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID61f8edad94bd44979da986009f7ee776"><enum>(6)</enum><text>in
section 615(h)(6) (15 U.S.C. 1681m(h)(6)), by striking subparagraph (A) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC8DCC0D0EB754ADA88748B817A916E1A" style="OLC">
<subparagraph id="ID11aab0e67c204117b9eeed015adb8c93"><enum>(A)</enum><header>Rules
required</header><text>The Bureau shall prescribe rules to carry out this
subsection.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID6e3f2a171feb4ca7a4139cd219e5530d"><enum>(7)</enum><text>in
section 621 (15 U.S.C. 1681s)—</text>
<subparagraph id="IDb2f674a0d4c74a579bed3692dc953910"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id577B360DEAFA41E094979805817144E7" style="OLC">
<subsection id="ID23ee692a42154c78a92b4c4f6d5e97a4"><enum>(a)</enum><header>Enforcement by
Federal Trade Commission</header>
<paragraph id="ID59dd547e38ed410f9cdd07b4a9f0e032"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, compliance with the requirements
imposed under this title shall be enforced under the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) by the Federal Trade Commission, with respect to
consumer reporting agencies and all other persons subject thereto, except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under subsection (b).
For the purpose of the exercise by the Federal Trade Commission of its
functions and powers under the Federal Trade Commission Act, a violation of any
requirement or prohibition imposed under this title shall constitute an unfair
or deceptive act or practice in commerce, in violation of section 5(a) of the
Federal Trade Commission Act (15 U.S.C. 45(a)), and shall be subject to
enforcement by the Federal Trade Commission under section 5(b) of that Act with
respect to any consumer reporting agency or person that is subject to
enforcement by the Federal Trade Commission pursuant to this subsection,
irrespective of whether that person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission Act. The Federal Trade
Commission shall have such procedural, investigative, and enforcement powers
(except as otherwise provided by subtitle B of the Consumer Financial
Protection Act of 2010), including the power to issue procedural rules in
enforcing compliance with the requirements imposed under this title and to
require the filing of reports, the production of documents, and the appearance
of witnesses, as though the applicable terms and conditions of the Federal
Trade Commission Act were part of this title. Any person violating any of the
provisions of this title shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade Commission Act as
though the applicable terms and provisions of such Act are part of this
title.</text>
</paragraph><paragraph id="IDc9427393f4a642e68957b0bf6a4fb097"><enum>(2)</enum><header>Penalties</header>
<subparagraph id="id1CD490B945EC437DA2569BA67565F567"><enum>(A)</enum><header>Knowing
violations</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, in the event of a knowing violation,
which constitutes a pattern or practice of violations of this title, the
Federal Trade Commission may commence a civil action to recover a civil penalty
in a district court of the United States against any person that violates this
title. In such action, such person shall be liable for a civil penalty of not
more than $2,500 per violation.</text>
</subparagraph><subparagraph id="ID067d0c68b0364a4c8159a1a861609b0b"><enum>(B)</enum><header>Determining
penalty amount</header><text>In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree of culpability,
any history of such prior conduct, ability to pay, effect on ability to
continue to do business, and such other matters as justice may require.</text>
</subparagraph><subparagraph id="IDe9d5cc5967a249e4977b9cb4af486add"><enum>(C)</enum><header>Limitation</header><text>Notwithstanding
paragraph (2), a court may not impose any civil penalty on a person for a
violation of section 623(a)(1), unless the person has been enjoined from
committing the violation, or ordered not to commit the violation, in an action
or proceeding brought by or on behalf of the Federal Trade Commission, and has
violated the injunction or order, and the court may not impose any civil
penalty for any violation occurring before the date of the violation of the
injunction or
order.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDaf9570b95c9540fead8627ee8f5c6c95"><enum>(8)</enum><text>by
striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC34286E8DA7F46A0B6B5D62969D7E214" style="OLC">
<subsection id="ID30cbb160de69465f945b818bb03ff042"><enum>(b)</enum><header>Enforcement by
other agencies</header>
<paragraph id="id6F2B8345F16340668270580C57400B00"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, compliance with the requirements
imposed under this title with respect to consumer reporting agencies, persons
who use consumer reports from such agencies, persons who furnish information to
such agencies, and users of information that are subject to section 615(d)
shall be enforced under—</text>
<subparagraph id="ID924bde93737d4a5daa74772b2b42a164"><enum>(A)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), in the case of—</text>
<clause id="ID4e288ccd9aec4d8fb83b8b804e9f9590"><enum>(i)</enum><text>any
national bank, and any Federal branch or Federal agency of a foreign bank, by
the Office of the Comptroller of the Currency;</text>
</clause><clause id="IDcdb98bd5077444fd85bc01084e174e07"><enum>(ii)</enum><text>any
member bank of the Federal Reserve System (other than a national bank), a
branch or agency of a foreign bank (other than a Federal branch, Federal
agency, or insured State branch of a foreign bank), a commercial lending
company owned or controlled by a foreign bank, and any organization operating
under section 25 or 25A of the Federal Reserve Act, by the Board of Governors
of the Federal Reserve System; and</text>
</clause><clause id="ID5e98a5f0e23c42bb862e1826afaf893c"><enum>(iii)</enum><text>any
bank insured by the Federal Deposit Insurance Corporation (other than a member
of the Federal Reserve System) and any insured State branch of a foreign bank,
by the Board of Directors of the Federal Deposit Insurance Corporation;</text>
</clause></subparagraph><subparagraph id="ID72efd44efb6d43de984493a5e75b113e"><enum>(B)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau;</text>
</subparagraph><subparagraph id="IDedc54d68f7814fa3afc9774aa555e2a7"><enum>(C)</enum><text>the Federal
Credit Union Act (12 U.S.C. 1751 et seq.), by the Administrator of the National
Credit Union Administration with respect to any Federal credit union;</text>
</subparagraph><subparagraph id="ID56dc609246924655afd002ad1fd2cbff"><enum>(D)</enum><text>subtitle IV of
title 49, United States Code, by the Secretary of Transportation, with respect
to all carriers subject to the jurisdiction of the Surface Transportation
Board;</text>
</subparagraph><subparagraph id="ID46d1a5b29a4d4a49987e3254eff8ecf9"><enum>(E)</enum><text>the Federal
Aviation Act of 1958 (49 U.S.C. App. 1301 et seq.), by the Secretary of
Transportation, with respect to any air carrier or foreign air carrier subject
to that Act;</text>
</subparagraph><subparagraph id="ID1edf7df91c944d69ad77efbf45b2cfc3"><enum>(F)</enum><text>the Packers and
Stockyards Act, 1921 (7 U.S.C. 181 et seq.) (except as provided in section 406
of that Act), by the Secretary of Agriculture, with respect to any activities
subject to that Act;</text>
</subparagraph><subparagraph id="ID33c0d89f738345c7995721f3718c039b"><enum>(G)</enum><text>the Commodity
Exchange Act, with respect to a person subject to the jurisdiction of the
Commodity Futures Trading Commission; and</text>
</subparagraph><subparagraph id="ID2d6b68a057644b018ca5215f0f7ad24d"><enum>(H)</enum><text>the Federal
securities laws, and any other laws that are subject to the jurisdiction of the
Securities and Exchange Commission, with respect to a person that is subject to
the jurisdiction of the Securities and Exchange Commission.</text>
</subparagraph></paragraph><paragraph id="id8384943C8CDD4262BD0491ACBF13CE88"><enum>(2)</enum><header>Incorporated
definitions</header><text>The terms used in paragraph (1) that are not defined
in this title or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) have the same meanings as in section 1(b) of
the International Banking Act of 1978 (12 U.S.C.
3101).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID10204f41813a4063a56a6ca6a64290a0"><enum>(9)</enum><text>by
striking subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id8D6F79F201184153BF6587D293F7CCC5" style="OLC">
<subsection id="ID34f15b1a089a4dab83ac96ed87b89bfb"><enum>(e)</enum><header>Regulatory
authority</header><text>The Bureau shall prescribe such regulations as are
necessary to carry out the purposes of this Act. The regulations prescribed by
the Bureau under this subsection shall apply to any person that is subject to
this Act, notwithstanding the enforcement authorities granted to other agencies
under this section.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID4804d23b6205441dbe0f3493837e98ed"><enum>(10)</enum><text>in
section 623 (15 U.S.C. 1681s–2)—</text>
<subparagraph id="IDcadad04967f641ee862c4645246a853f"><enum>(A)</enum><text>in subsection
(a)(7), by striking subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idBCB6691DFBEA428D816526A3EC3F8C58" style="OLC">
<subparagraph id="ID876c084ca1c748b3aea4e152e2ec2c57"><enum>(D)</enum><header>Model
disclosure</header>
<clause id="ID43ccff2426424709a5b1650b7287b9ce"><enum>(i)</enum><header>Duty of
Bureau</header><text>The Bureau shall prescribe a brief model disclosure that a
financial institution may use to comply with subparagraph (A), which shall not
exceed 30 words.</text>
</clause><clause id="ID4cc24ef1a11a4a619098b650d26b3c3d"><enum>(ii)</enum><header>Use of model
not required</header><text>No provision of this paragraph may be construed to
require a financial institution to use any such model form prescribed by the
Bureau.</text>
</clause><clause id="IDd501a26582af4f8794ada1555db67d51"><enum>(iii)</enum><header>Compliance
using model</header><text>A financial institution shall be deemed to be in
compliance with subparagraph (A) if the financial institution uses any model
form prescribed by the Bureau under this subparagraph, or the financial
institution uses any such model form and rearranges its
format.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDab46b9362d664d84aafee93a4d7f9efb"><enum>(B)</enum><text>by striking
subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idAD84C6A377DD4F929507332F0756CF52" style="OLC">
<subsection id="ID9bd4c783f0514fcba43d5be1b9513d54"><enum>(e)</enum><header>Accuracy
guidelines and regulations required</header>
<paragraph id="ID31631763613048a3a514c89514edd4a2"><enum>(1)</enum><header>Guidelines</header><text>The
Bureau shall, with respect to persons or entities that are subject to the
enforcement authority of the Bureau under section 621—</text>
<subparagraph id="IDae149624765c4d1aad58d3eafbb56ff5"><enum>(A)</enum><text>establish and
maintain guidelines for use by each person that furnishes information to a
consumer reporting agency regarding the accuracy and integrity of the
information relating to consumers that such entities furnish to consumer
reporting agencies, and update such guidelines as often as necessary;
and</text>
</subparagraph><subparagraph id="IDc02077f3f06d453bbf1a4752ca14713c"><enum>(B)</enum><text>prescribe
regulations requiring each person that furnishes information to a consumer
reporting agency to establish reasonable policies and procedures for
implementing the guidelines established pursuant to subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="ID6687b3603c9d44d09344066288de9e8e"><enum>(2)</enum><header>Criteria</header><text>In
developing the guidelines required by paragraph (1)(A), the Bureau
shall—</text>
<subparagraph id="IDe457cb069d0d4915992a54208db0fb29"><enum>(A)</enum><text>identify
patterns, practices, and specific forms of activity that can compromise the
accuracy and integrity of information furnished to consumer reporting
agencies;</text>
</subparagraph><subparagraph id="IDd429aea887a947a59a3565ea4e71f664"><enum>(B)</enum><text>review the
methods (including technological means) used to furnish information relating to
consumers to consumer reporting agencies;</text>
</subparagraph><subparagraph id="IDb126b6a3ebd049ff8ddbc3985b3e260b"><enum>(C)</enum><text>determine whether
persons that furnish information to consumer reporting agencies maintain and
enforce policies to ensure the accuracy and integrity of information furnished
to consumer reporting agencies; and</text>
</subparagraph><subparagraph id="IDe55896cc7e7d4d089b3416f3a66643bb"><enum>(D)</enum><text>examine the
policies and processes that persons that furnish information to consumer
reporting agencies employ to conduct reinvestigations and correct inaccurate
information relating to consumers that has been furnished to consumer reporting
agencies.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="IDf3a09c4ee49540bd810d65681233ddaf"><enum>(b)</enum><header>Fair and
Accurate Credit Transactions Act of 2003</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
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id24CDA3304F2B4560B2BD7B656BA0DF38" style="OLC">
<paragraph id="id54A0E781A09448268911796AEB73ECF7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Regulations to carry
out section 624 of the Fair Credit Reporting Act (15 U.S.C. 1681s–3), shall be
prescribed, as described in paragraph (2), by—</text>
<subparagraph id="id600319435EBE44089B628A63795A0D11"><enum>(A)</enum><text display-inline="yes-display-inline">the Commodity Futures Trading Commission,
with respect to entities subject to its enforcement authorities;</text>
</subparagraph><subparagraph id="id57C413ED5A9C4F88B1AA308B9FCC0316"><enum>(B)</enum><text display-inline="yes-display-inline">the Securities and Exchange Commission,
with respect to entities subject to its enforcement authorities; and</text>
</subparagraph><subparagraph id="id46DD447451E940BBAAE33A13BA8E722F"><enum>(C)</enum><text display-inline="yes-display-inline">the Bureau, with respect to other entities
subject to this
Act.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDbd61a6fc5bc0462e9a510a8e64bc242a"><enum>1089.</enum><header>Amendments to
the Fair Debt Collection Practices Act</header><text display-inline="no-display-inline">The Fair Debt Collection Practices Act (15
U.S.C. 1692 et seq.) is amended—</text>
<paragraph commented="no" id="idC0DA9E03B2E142DA90AA2E7DF6141B32"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Commission</quote> each
place that term appears and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="idF713A76F9FA7457082DE76A8F9D2E366"><enum>(2)</enum><text>in
section 803 (15 U.S.C. 1692a)—</text>
<subparagraph id="IDb19f7143c58a4194a60daf4bd780e676"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC2C4C49079304CFB83F388D5E15589E0" style="OLC">
<paragraph id="ID7b3657ac58d0421ea011a360baff063f"><enum>(1)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id6F46AF89CCC64C5BB8CA8C311E8F1B76"><enum>(3)</enum><text>in
section 814 (15 U.S.C. 1692l)—</text>
<subparagraph id="IDe4cf2d01a38144e1b64f089c2637b414"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idD8D78BB979504394A4A7DFF83A603169" style="OLC">
<subsection id="ID3a588e3f22d9452daedd03e7b2459136"><enum>(a)</enum><header>Federal Trade
Commission</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, compliance with this title shall be
enforced by the Federal Trade Commission, except to the extent that enforcement
of the requirements imposed under this title is specifically committed to
another Government agency under subsection (b). For purpose of the exercise by
the Federal Trade Commission of its functions and powers under the Federal
Trade Commission Act (15 U.S.C. 41 et seq.), a violation of this title shall be
deemed an unfair or deceptive act or practice in violation of that Act. All of
the functions and powers of the Federal Trade Commission under the Federal
Trade Commission Act are available to the Federal Trade Commission to enforce
compliance by any person with this title, irrespective of whether that person
is engaged in commerce or meets any other jurisdictional tests under the
Federal Trade Commission Act, including the power to enforce the provisions of
this title, in the same manner as if the violation had been a violation of a
Federal Trade Commission trade regulation
rule.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID376ec4434cd34e56801e07d3cf130d77"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="ID9d471099fe4c4f318826fe5303cfdde7"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Except as otherwise
provided by subtitle B of the Consumer Financial Protection Act of 2010,
compliance</quote>; and</text>
</clause><clause id="ID7e82929b1d3e4abe90542fa6683039eb"><enum>(ii)</enum><text>by
striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idD66F85FEA2BF491290F68ADBE45DE53A" style="OLC">
<paragraph id="IDd1ffce8ee153401d8db2916ffb063306"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the
Bureau;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="IDcafb024b700844a0852fa54b65b530a4"><enum>(4)</enum><text>in
subsection (d), by striking <quote>Neither the Commission</quote> and all that
follows through the end of the subsection and inserting the following:
<quote>The Bureau may prescribe rules with respect to the collection of debts
by debt collectors, as defined in this Act.</quote>.</text>
</paragraph></section><section id="ID715ad0ac875148ad951ae073cf0e77af"><enum>1090.</enum><header>Amendments to
the Federal Deposit Insurance Act</header><text display-inline="no-display-inline">The Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.) is amended—</text>
<paragraph id="idB539FEEC06AC45BABD6F2BA472CA8BC2"><enum>(1)</enum><text display-inline="yes-display-inline">in section 8(t) (12 U.S.C. 1818(t)), by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAC8711D4344C49259E7E4F832805CCD1" style="OLC">
<paragraph id="ID038cfb13025c464f8f6dc24c759cf8f5"><enum>(6)</enum><header>Referral to
Bureau of Consumer Financial Protection</header><text>Subject to subtitle B of
the Consumer Financial Protection Act of 2010, each appropriate Federal banking
agency shall make a referral to the Bureau of Consumer Financial Protection
when the Federal banking agency has a reasonable belief that a violation of an
enumerated consumer law, as defined in the Consumer Financial Protection Act of
2010, has been committed by any insured depository institution or
institution-affiliated party within the jurisdiction of that appropriate
Federal banking agency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID9f5920d6b1ef4f85901db350854935c3"><enum>(2)</enum><text>in
section 43 (12 U.S.C. 1831t)—</text>
<subparagraph id="IDcaa3b087cb464f869c55b6795796f5a3"><enum>(A)</enum><text>in subsection
(c), by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="ID54d1af3debb34d8faf34a7f7037833d8"><enum>(B)</enum><text>in subsection
(d), by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="IDa4fa14ca895c40d4a87acddd5f29678e"><enum>(C)</enum><text>in subsection
(e)—</text>
<clause id="ID8e0e9b02a4ab4d3eb2ba30ac254c47cc"><enum>(i)</enum><text>in
paragraph (2), by striking <quote>Federal Trade Commission</quote> and
inserting <quote>Bureau</quote>; and</text>
</clause><clause id="ID5b51be7391b642ab97a538e728299b38"><enum>(ii)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idA1454F60FA824BA09F52761ABD9FACE3" style="OLC">
<paragraph id="ID3d43ba373cef46b59ffb8a6438f64c6c"><enum>(5)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDe91e918ed8754816b8259e49ecaaaed4"><enum>(D)</enum><text>in subsection
(f)—</text>
<clause id="ID47adce1492b5454baf4a94986643d660"><enum>(i)</enum><text>by
striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id388562ED4E8243F9878DBB2AFBB6A320" style="OLC">
<paragraph id="IDa442998f38924511a4a00ad30a2404f4"><enum>(1)</enum><header>Limited
enforcement authority</header><text>Compliance with the requirements of
subsections (b), (c), and (e), and any regulation prescribed or order issued
under such subsection, shall be enforced under the Consumer Financial
Protection Act of 2010, by the Bureau, subject to subtitle B of the Consumer
Financial Protection Act of 2010, and under the Federal Trade Commission Act
(15 U.S.C. 41 et seq.) by the Federal Trade
Commission.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="ID9b908fb89e634edfb89c7096697e999f"><enum>(ii)</enum><text>in
paragraph (2), by striking subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id07BB29C547AA4B39B3D70C91671A43F3" style="OLC">
<subparagraph id="ID0d598e2d098d4a91b3216a6c20246465"><enum>(C)</enum><header>Limitation on
State action while Federal action pending</header><text>If the Bureau or
Federal Trade Commission has instituted an enforcement action for a violation
of this section, no appropriate State supervisory agency may, during the
pendency of such action, bring an action under this section against any
defendant named in the complaint of the Bureau or Federal Trade Commission for
any violation of this section that is alleged in that
complaint.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></section><section id="ID6c4b681fa94d4af6b803e4643f65cbf5"><enum>1091.</enum><header>Amendments to
the Gramm-Leach-Bliley Act</header><text display-inline="no-display-inline">Title V of the Gramm-Leach-Bliley Act (15
U.S.C. 6801 et seq.) is amended—</text>
<paragraph id="ID486ed0d5b2d04d009ebda008dc8b8832"><enum>(1)</enum><text>in
section 504(a)(1) (15 U.S.C. 6804(a)(1))—</text>
<subparagraph id="IDfdc95ccc0f1e4c029e0b7c687f51223b"><enum>(A)</enum><text>by striking
<quote>The Federal banking agencies, the National Credit Union Administration,
the Secretary of the Treasury,</quote> and inserting <quote>The Bureau of
Consumer Financial Protection and</quote>; and</text>
</subparagraph><subparagraph id="IDbbcf546f5c4c47479c4445ad60b34536"><enum>(B)</enum><text>by striking
<quote>, and the Federal Trade Commission</quote>;</text>
</subparagraph></paragraph><paragraph id="ID3438ca16bb534067aae57652c9b53181"><enum>(2)</enum><text>in
section 505(a) (15 U.S.C. 6805(a))—</text>
<subparagraph id="ID248cf5deb3694179b79467afba89715e"><enum>(A)</enum><text>by striking
<quote>This subtitle</quote> and all that follows through <quote>as
follows:</quote> and inserting <quote>Except as otherwise provided by subtitle
B of the Consumer Financial Protection Act of 2010, this subtitle and the
regulations prescribed thereunder shall be enforced by the Bureau of Consumer
Financial Protection, the Federal functional regulators, the State insurance
authorities, and the Federal Trade Commission with respect to financial
institutions and other persons subject to their jurisdiction under applicable
law, as follows:</quote>;</text>
</subparagraph><subparagraph id="ID5cea2dda89f64844895ba85e440d822b"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause id="id8B77E86ED6F047158DB9BD9B40B6E93D"><enum>(i)</enum><text>in
subparagraph (B), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause id="idD2FF8B80227A44FEB7788CB8DEA3B35B"><enum>(ii)</enum><text>in
subparagraph (C), by striking <quote>; and</quote> and inserting a period;
and</text>
</clause><clause id="idA0F1CEF4F9A94B85BA7C0A5E799CB52B"><enum>(iii)</enum><text>by
striking subparagraph (D); and</text>
</clause></subparagraph><subparagraph id="IDad8c7ae37486478ca1d8ad5d5729d879"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id873331F12C5942379F24B8D072A87E74" style="OLC">
<paragraph id="ID038bc14ca3104e9b8aea1556a3a4614c"><enum>(8)</enum><text>Under the
Consumer Financial Protection Act of 2010, by the Bureau of Consumer Financial
Protection, in the case of any financial institution and other covered person
or service provider that is subject to the jurisdiction of the Bureau under
that Act, but not with respect to the standards under section
501.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID709b13907025421c92ecbe7dff85b98d"><enum>(3)</enum><text>in
section 505(b)(1) (15 U.S.C. 6805(b)(1)), by inserting <quote>, other than the
Bureau of Consumer Financial Protection, </quote> after <quote>subsection
(a)</quote>.</text>
</paragraph></section><section id="IDe55450f731d847dfbbdea72152937d0f"><enum>1092.</enum><header>Amendments to
the Home Mortgage Disclosure Act</header><text display-inline="no-display-inline">The Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.) is amended—</text>
<paragraph id="id35533617561F456CA3A2DA9761F0BF9C"><enum>(1)</enum><text>except as
otherwise specifically provided in this section, by striking
<quote>Board</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="IDa8a0d53bea244b4792495fd778f0311c"><enum>(2)</enum><text>in
section 303 (12 U.S.C. 2802)—</text>
<subparagraph id="IDaaae5ce192964b43842eae66b9e2338b"><enum>(A)</enum><text>by redesignating
paragraphs (1) through (6) as paragraphs (2) through (7), respectively;
and</text>
</subparagraph><subparagraph id="ID1893ab4a68ea46baa04dba6f97642833"><enum>(B)</enum><text>by inserting
before paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="id3236BDD357F6498284A99AA1E94441CD" style="OLC">
<paragraph id="IDb5c25a48ed0d42c2aa21c457bb5caf07"><enum>(1)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDf01a3e7bb95046fab89355d2589ca61a"><enum>(3)</enum><text>in
section 304 (12 U.S.C. 2803)—</text>
<subparagraph id="IDc289fe5da7e449699b188d3ea77d45b4"><enum>(A)</enum><text>in subsection
(b)—</text>
<clause id="id7D8B7AE14A514B3FA435BF0EA8579B7D"><enum>(i)</enum><text>in
paragraph (4), by inserting <quote>age,</quote> before <quote>and
gender</quote>;</text>
</clause><clause id="ID626611604c494ac0a4816f0c7ad9051c"><enum>(ii)</enum><text>in
paragraph (3), by striking <quote>and</quote> at the end;</text>
</clause><clause id="ID96a96a535185439fa052f8a45997f1fb"><enum>(iii)</enum><text>in
paragraph (4), by striking the period at the end and inserting a semicolon;
and</text>
</clause><clause id="idB6B05D90C873405E998BF8084A20D240"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5AD5DAA881A24C468201BCA3142AB3FC" style="OLC">
<paragraph id="ID53a9d3c95a0c456c98069257f9265934"><enum>(5)</enum><text>the number and
dollar amount of mortgage loans grouped according to measurements of—</text>
<subparagraph id="IDfadb09ffdf464f338402281fea5204ee"><enum>(A)</enum><text>the total points
and fees payable at origination in connection with the mortgage as determined
by the Bureau, taking into account 15 U.S.C. 1602(aa)(4);</text>
</subparagraph><subparagraph id="IDdc5fa06acc7c4046b61dde6a20217c7f"><enum>(B)</enum><text>the difference
between the annual percentage rate associated with the loan and a benchmark
rate or rates for all loans;</text>
</subparagraph><subparagraph id="IDb279754928404f4f8ceaf2ac31beeef8"><enum>(C)</enum><text>the term in
months of any prepayment penalty or other fee or charge payable on repayment of
some portion of principal or the entire principal in advance of scheduled
payments; and</text>
</subparagraph><subparagraph id="ID8dda938feeac4576b8294686d51a34e5"><enum>(D)</enum><text>such other
information as the Bureau may require; and</text>
</subparagraph></paragraph><paragraph id="ID049035f6a93d476db458d45da991a61a"><enum>(6)</enum><text>the number and
dollar amount of mortgage loans and completed applications grouped according to
measurements of—</text>
<subparagraph id="ID6f016e4a91504e9db8e515f988080193"><enum>(A)</enum><text>the value of the
real property pledged or proposed to be pledged as collateral;</text>
</subparagraph><subparagraph id="ID12e01695e3e04772b041a1a8d22c08c1"><enum>(B)</enum><text>the actual or
proposed term in months of any introductory period after which the rate of
interest may change;</text>
</subparagraph><subparagraph id="IDd0212e61650041739672b2e9f25515f0"><enum>(C)</enum><text>the presence of
contractual terms or proposed contractual terms that would allow the mortgagor
or applicant to make payments other than fully amortizing payments during any
portion of the loan term;</text>
</subparagraph><subparagraph id="ID46fd8ff97997486791a24c33c803e420"><enum>(D)</enum><text>the actual or
proposed term in months of the mortgage loan;</text>
</subparagraph><subparagraph id="ID94ff885be3c5464ab897e706414911b1"><enum>(E)</enum><text>the channel
through which application was made, including retail, broker, and other
relevant categories;</text>
</subparagraph><subparagraph id="ID0233aa127d2744cc8d41f27f60233e78"><enum>(F)</enum><text>as the Bureau may
determine to be appropriate, a unique identifier that identifies the loan
originator as set forth in section 1503 of the S.A.F.E. Mortgage Licensing Act
of 2008;</text>
</subparagraph><subparagraph id="ID552475439faa4552a8f5713af58d79b8"><enum>(G)</enum><text>as the Bureau may
determine to be appropriate, a universal loan identifier;</text>
</subparagraph><subparagraph id="IDa86d4ce2484848d8a195e1e065d523d9"><enum>(H)</enum><text>as the Bureau may
determine to be appropriate, the parcel number that corresponds to the real
property pledged or proposed to be pledged as collateral;</text>
</subparagraph><subparagraph id="IDa1450bc2125b429a8f640589648c3c87"><enum>(I)</enum><text>the credit score
of mortgage applicants and mortgagors, in such form as the Bureau may
prescribe, except that the Bureau shall modify or require modification of
credit score data that is or will be available to the public to protect the
compelling privacy interest of the mortgage applicant or mortgagors; and</text>
</subparagraph><subparagraph id="ID5a9c52a02b6c43a5b94fdfebbbeb17f9"><enum>(J)</enum><text>such other
information as the Bureau may
require.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="ID5e75acde3caa41e0bd4475e5327a6822"><enum>(B)</enum><text>in subsection
(i), by striking <quote>subsection (b)(4)</quote> and inserting
<quote>subsections (b)(4), (b)(5), and (b)(6)</quote>;</text>
</subparagraph><subparagraph id="IDcf23f07850174b319c4025ce2c9e12ef"><enum>(C)</enum><text>in subsection
(j)—</text>
<clause id="ID842b81958d2d45ceb5f3af4e262d4004"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>(as</quote> and inserting <quote>(containing
loan-level and application-level information relating to disclosures required
under subsections (a) and (b) and as otherwise</quote>;</text>
</clause><clause id="ID60c5a514c8e9462f9741de0b5d9a3647"><enum>(ii)</enum><text>by
striking paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id1AA673E468A94842A1CEB08127048C36" style="OLC">
<paragraph id="IDb7a6ac9789384a80ba2d73f9e400ec52"><enum>(3)</enum><header>Change of form
not required</header><text>A depository institution meets the disclosure
requirement of paragraph (1) if the institution provides the information
required under such paragraph in such formats as the Bureau may
require</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="IDf0cef290d46647d382e142ffc78b7e70"><enum>(iii)</enum><text>in
paragraph (2)(A), by striking <quote>in the format in which such information is
maintained by the institution</quote> and inserting <quote>in such formats as
the Bureau may require</quote>;</text>
</clause></subparagraph><subparagraph id="ID3094b8c90c174323ba94e778a8dbbc18"><enum>(D)</enum><text>in subsection
(m), by striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idF64A5FD8EC18403C9688F97DE6F14C17" style="OLC">
<paragraph id="IDe41fa740b69842229dcab5eb0c54f832"><enum>(2)</enum><header>Form of
information</header><text>In complying with paragraph (1), a depository
institution shall provide the person requesting the information with a copy of
the information requested in such formats as the Bureau may
require</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id0C5C5FC5DE8C422ABE975039D9CA9D3D"><enum>(E)</enum><text>by striking
subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id4E24D4758B4A4943ACF55DAF8EE186DF" style="OLC">
<subsection id="ID99e733f6fca446d993a4bc80fb5d9209"><enum>(h)</enum><header>Submission to
agencies</header>
<paragraph id="idA281AC84DC624B5DBE31A8503D76B812"><enum>(1)</enum><header>In
general</header><text>The data required to be disclosed under subsection (b)
shall be submitted to the Bureau or to the appropriate agency for the
institution reporting under this title, in accordance with rules prescribed by
the Bureau. Notwithstanding the requirement of subsection (a)(2)(A) for
disclosure by census tract, the Bureau, in cooperation with other appropriate
regulators described in paragraph (2), shall develop regulations that—</text>
<subparagraph id="id5ADB1907931D486D9CA037A06569BACF"><enum>(A)</enum><text>prescribe 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;</text>
</subparagraph><subparagraph id="idCD634CE56E5543AD81F64047BF9A6D25"><enum>(B)</enum><text>require the
collection of data required to be disclosed under subsection (b) with respect
to loans sold by each institution reporting under this title;</text>
</subparagraph><subparagraph id="id3343CBC82F49490FB5CDBF332CE0CECA"><enum>(C)</enum><text>require
disclosure of the class of the purchaser of such loans; and</text>
</subparagraph><subparagraph id="idB26E0D101AB84089800AC33F492EBCD5"><enum>(D)</enum><text>permit any
reporting institution to submit in writing to the Bureau or to the appropriate
agency such additional data or explanations as it deems relevant to the
decision to originate or purchase mortgage loans.</text>
</subparagraph></paragraph><paragraph id="id18E5E7DC737A42ACBD40A49CAE8E8FF1"><enum>(2)</enum><header>Other
appropriate agencies</header><text>The appropriate regulators described in this
paragraph are—</text>
<subparagraph commented="no" id="IDa778daf4a6f44358b05a8079acd6eb87"><enum>(A)</enum><text>the Office of the
Comptroller of the Currency (hereafter referred to in this Act as
<quote>Comptroller</quote>) for national banks and Federal branches, Federal
agencies of foreign banks, and savings associations;</text>
</subparagraph><subparagraph id="IDeb5b7f194d6e42da9bb68376a152957a"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation for banks insured by the Federal Deposit
Insurance Corporation (other than members of the Federal Reserve System),
mutual savings banks, insured State branches of foreign banks, and any other
depository institution described in section 303(2)(A) which is not otherwise
referred to in this paragraph;</text>
</subparagraph><subparagraph id="ID3d49d1d198e343758b0dd58d5f7a4bc5"><enum>(C)</enum><text>the National
Credit Union Administration Board for credit unions; and</text>
</subparagraph><subparagraph id="IDb2a9f694f77a4c0da43638d333a8dbc3"><enum>(D)</enum><text>the Secretary of
Housing and Urban Development for other lending institutions not regulated by
the agencies referred to in subparagraphs (A) through
(C).</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idEAB7CD99A009470D813A07BB8AC20F3F"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9FD6C861CA784D04A8DF14F3B94FBD91" style="OLC">
<subsection commented="no" id="idB4CE2C7C6BFF42C581CFF46D166CCFBA"><enum>(n)</enum><header>Timing of
certain disclosures</header><text>The data required to be disclosed under
subsection (b) shall be submitted to the Bureau or to the appropriate agency
for any institution reporting under this title, in accordance with regulations
prescribed by the Bureau. Institutions shall not be required to report new data
under paragraph (5) or (6) of subsection (b) before the first January 1 that
occurs after the end of the 9-month period beginning on the date on which
regulations are issued by the Bureau in final form with respect to such
disclosures.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID20918b050822462db1712e4df9cb936a"><enum>(4)</enum><text>in
section 305 (12 U.S.C. 2804)—</text>
<subparagraph id="ID09c115390038473ca1c45c304f29ccb9"><enum>(A)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5C13DB49316E405CBF866DD02C314448" style="OLC">
<subsection id="IDc274ccf53e7f4c73ba094415c8512e63"><enum>(b)</enum><header>Powers of
certain other agencies</header>
<paragraph id="id23B58D32A16B4EF79499E6FC779723A5"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, compliance with the requirements of
this title shall be enforced—</text>
<subparagraph id="IDf1fb5c561d4b4045b39ecaa207727cdb"><enum>(A)</enum><text>under section 8
of the Federal Deposit Insurance Act, in the case of—</text>
<clause id="ID1f4b840fcba54e4585ff612b69701fcf"><enum>(i)</enum><text>any
national bank, and any Federal branch or Federal agency of a foreign bank, by
the Office of the Comptroller of the Currency;</text>
</clause><clause id="ID9d80d2116e3d43cf84cc081d9bd120e3"><enum>(ii)</enum><text>any
member bank of the Federal Reserve System (other than a national bank), branch
or agency of a foreign bank (other than a Federal branch, Federal agency, and
insured State branch of a foreign bank), commercial lending company owned or
controlled by a foreign bank, and any organization operating under section 25
or 25(a) of the Federal Reserve Act, by the Board; and</text>
</clause><clause id="ID966ff96b251c49f086264edcc93fc1a7"><enum>(iii)</enum><text>any
bank insured by the Federal Deposit Insurance Corporation (other than a member
of the Federal Reserve System), any mutual savings bank as, defined in section
3(f) of the Federal Deposit Insurance Act (12 U.S.C. 1813(f)), any insured
State branch of a foreign bank, and any other depository institution not
referred to in this paragraph or subparagraph (B) or (C), by the Federal
Deposit Insurance Corporation;</text>
</clause></subparagraph><subparagraph id="ID34ecd9915a744e1dba7dad66796fa29b"><enum>(B)</enum><text>under subtitle E
of the Consumer Financial Protection Act of 2010, by the Bureau;</text>
</subparagraph><subparagraph id="IDb17062b993074bf185990349fb561e70"><enum>(C)</enum><text>under the Federal
Credit Union Act, by the Administrator of the National Credit Union
Administration with respect to any insured credit union; and</text>
</subparagraph><subparagraph id="ID86ab705071364952ba2b7ea7b09bc430"><enum>(D)</enum><text>with respect to
other lending institutions, by the Secretary of Housing and Urban
Development.</text>
</subparagraph></paragraph><paragraph id="idD1B16AFE333E418CBE9BFC56C1F409E7"><enum>(2)</enum><header>Incorporated
definitions</header><text>The terms used in paragraph (1) that are not defined
in this title or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) shall have the same meanings as in section
1(b) of the International Banking Act of 1978 (12 U.S.C.
3101).</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID6421acf2539b434f879970bf9bc76396"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id74B30FBC39C740B9A4631816275FADEA" style="OLC">
<subsection id="ID51aefb77d9c04301af05d4d755d29f9c"><enum>(d)</enum><header>Overall
enforcement authority of the Bureau of Consumer Financial
Protection</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, enforcement of the requirements imposed under this
title is committed to each of the agencies under subsection (b). The Bureau may
exercise its authorities under the Consumer Financial Protection Act of 2010 to
exercise principal authority to examine and enforce compliance by any person
with the requirements of this
title.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDa81fc497426b47199f644a768f6b2dd5"><enum>(5)</enum><text>in
section 306 (12 U.S.C. 2805(b)), by striking subsection (b) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5754EAD68719436DBB3B8C4110C9AC2B" style="OLC">
<subsection id="ID4ce24ace64bd4e3cbf245875fe502b3c"><enum>(b)</enum><header>Exemption
authority</header><text>The Bureau may, by regulation, exempt from the
requirements of this title any State-chartered depository institution within
any State or subdivision thereof, if the agency determines that, under the law
of such State or subdivision, that institution is subject to requirements that
are substantially similar to those imposed under this title, and that such law
contains adequate provisions for enforcement. Notwithstanding any other
provision of this subsection, compliance with the requirements imposed under
this subsection shall be enforced by the Office of the Comptroller of the
Currency under section 8 of the Federal Deposit Insurance Act, in the case of
national banks and savings associations, the deposits of which are insured by
the Federal Deposit Insurance
Corporation.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID119c58f5692b4c07af20e401811d9095"><enum>(6)</enum><text>by
striking section 307 (12 U.S.C. 2806) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5C90BF6EFE414A6B842198516BEDD2DD" style="OLC">
<section id="id2ADDBE4FFCE54BD58FC6D44C1A5095B9"><enum>307.</enum><header>Compliance
improvement methods</header>
<subsection id="IDd286df2eb3dc44349bcdccdab888ae00"><enum>(a)</enum><header>In
general</header>
<paragraph id="id990A8CA738BB4FF69D34AED406EE0212"><enum>(1)</enum><header>Consultation
required</header><text>The Director of the Bureau of Consumer Financial
Protection, with the assistance of the Secretary, the Director of the Bureau of
the Census, the Board of Governors of the Federal Reserve System, the Federal
Deposit Insurance Corporation, and such other persons as the Bureau deems
appropriate, shall develop or assist in the improvement of, methods of matching
addresses and census tracts to facilitate compliance by depository institutions
in as economical a manner as possible with the requirements of this
title.</text>
</paragraph><paragraph id="ID4b84c051b6b64682a1d85c7420d68afb"><enum>(2)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated, such
sums as may be necessary to carry out this subsection.</text>
</paragraph><paragraph id="ID5d92f4414a2243fd9d69e1813e4fd688"><enum>(3)</enum><header>Contracting
authority</header><text>The Director of the Bureau of Consumer Financial
Protection is authorized to utilize, contract with, act through, or compensate
any person or agency in order to carry out this subsection.</text>
</paragraph></subsection><subsection id="ID9d656d8e9972460ea13d3f6611887115"><enum>(b)</enum><header>Recommendations
to Congress</header><text>The Director of the Bureau of Consumer Financial
Protection shall recommend to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives, such additional legislation as the Director of the Bureau of
Consumer Financial Protection deems appropriate to carry out the purpose of
this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDa301387a2b7b4b9fa26088128f6912aa"><enum>1093.</enum><header>Amendments to
the Homeowners Protection Act of 1998</header><text display-inline="no-display-inline">Section 10 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4909) is amended—</text>
<paragraph id="ID502ebe53081a4162a16710c880b0d242"><enum>(1)</enum><text>in
subsection (a)—</text>
<subparagraph id="idCBBC8600B7C64B32B0681E7833DA67E1"><enum>(A)</enum><text>by striking
<quote>Compliance</quote> and inserting <quote>Except as otherwise provided by
subtitle B of the Consumer Financial Protection Act of 2010,
compliance</quote>;</text>
</subparagraph><subparagraph id="IDb1f1250d6cee4419a46eb707de35731e"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="IDc34f0efd3cf1429bbd258edab28d373b"><enum>(C)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="IDefa819f550974aa5b765b18716809780"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id56659E5E2FD6472D8F8A277713FB0D8C" style="OLC">
<paragraph id="ID5b925ae0c18a4542813f6071c8300b84"><enum>(4)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID143fd32c70bb40b59e0d7aee5598159d"><enum>(2)</enum><text>in
subsection (b)(2), by inserting before the period at the end the following:
<quote>, subject to subtitle B of the Consumer Financial Protection Act of
2010</quote>.</text>
</paragraph></section><section id="ID55f2c1f3f85847d88093a7699a85adf8"><enum>1094.</enum><header>Amendments to
the Home Ownership and Equity Protection Act of 1994</header><text display-inline="no-display-inline">The Home Ownership and Equity Protection Act
of 1994 (15 U.S.C. 1601 note) is amended—</text>
<paragraph id="ID543b12db21d14a62850ee4d8d8d956e5"><enum>(1)</enum><text>in
section 158(a), by striking <quote>Consumer Advisory Council of the
Board</quote> and inserting <quote>Advisory Board to the Bureau</quote>;
and</text>
</paragraph><paragraph id="ID803207589f0f4566bc6300093138264e"><enum>(2)</enum><text>by
striking <quote>Board</quote> each place that term appears and inserting
<quote>Bureau</quote>.</text>
</paragraph></section><section id="ID33bd23aa65b043fc941485f025783d8f"><enum>1095.</enum><header>Amendments to
the Omnibus Appropriations Act, 2009</header><text display-inline="no-display-inline">Section 626 of the Omnibus Appropriations
Act, 2009 (15 U.S.C. 1638 note) is amended—</text>
<paragraph id="ID8c4d2fe1dfd143909229920db68a9256"><enum>(1)</enum><text>by
striking subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id8BF34CB56E9F4F7694395BEB265FDA60" style="OLC">
<subsection id="IDe977f1c7350f48559c6f6bfd45fadca9"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idF7E27519E1904501BA170156A4C19F05"><enum>(1)</enum><text>The Bureau of Consumer
Financial Protection shall have authority to prescribe rules with respect to
mortgage loans in accordance with section 553 of title 5, United States Code.
Such rulemaking shall relate to unfair or deceptive acts or practices regarding
mortgage loans, which may include unfair or deceptive acts or practices
involving loan modification and foreclosure rescue services. Any violation of a
rule prescribed under this paragraph shall be treated as a violation of a rule
prohibiting unfair, deceptive, or abusive acts or practices under the Consumer
Financial Protection Act of 2010 and a violation of a rule under section 18 of
the Federal Trade Commission Act (15 U.S.C. 57a) regarding unfair or deceptive
acts or practices.</text>
</paragraph><paragraph id="id2D2DAA4A241F4127BFF5E8CEC6E49D8F" indent="up1"><enum>(2)</enum><text>The Bureau of Consumer Financial
Protection shall enforce the rules issued under paragraph (1) in the same
manner, by the same means, and with the same jurisdiction, powers, and duties,
as though all applicable terms and provisions of the Consumer Financial
Protection Act of 2010 were incorporated into and made part of this
subsection.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5169E21E81DC427E872DCA9F0B522824"><enum>(2)</enum><text>in
subsection (b)—</text>
<subparagraph id="id82204CB01AC84D6CA4A440BA68B5C280"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id74B3F10ED3E54316A4D1A6D6EA9395EF" style="OLC">
<paragraph id="id3CCA94A05FAA4B05AB9C1E9FCE9FD89A"><enum>(1)</enum><text>Except as
provided in paragraph (6), in any case in which the attorney general of a State
has reason to believe that an interest of the residents of the State has been
or is threatened or adversely affected by the engagement of any person subject
to a rule prescribed under subsection (a) in practices that violate such rule,
the State, as parens patriae, may bring a civil action on behalf of its
residents in an appropriate district court of the United States or other court
of competent jurisdiction—</text>
<subparagraph id="idB493FC7BB73C4FFDBDC68F84AA9B931B"><enum>(A)</enum><text>to enjoin that
practice;</text>
</subparagraph><subparagraph id="id31992BA8023D40B2AB81C4D581AA3562"><enum>(B)</enum><text>to enforce
compliance with the rule;</text>
</subparagraph><subparagraph id="idCF0B907A4F984F8E8C09949CBE55A101"><enum>(C)</enum><text>to obtain
damages, restitution, or other compensation on behalf of the residents of the
State; or</text>
</subparagraph><subparagraph id="idFAC041A6E67C4EF18724E7C1DAC93D5D"><enum>(D)</enum><text>to obtain
penalties and relief provided under the Consumer Financial Protection Act of
2010, the Federal Trade Commission Act, and such other relief as the court
deems
appropriate.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idF1AD2FE2F8D143C4A290C0B346886351"><enum>(B)</enum><text>in paragraphs (2)
and (3), by striking <quote>the primary Federal regulator</quote> each time the
term appears and inserting <quote>the Bureau of Consumer Financial Protection
or the Commission, as appropriate</quote>;</text>
</subparagraph><subparagraph id="idFB06E45B22444CFF853D0748540A6870"><enum>(C)</enum><text>in paragraph (3),
by inserting <quote>and subject to subtitle B of the Consumer Financial
Protection Act of 2010,</quote> after <quote>paragraph (2),</quote>; and</text>
</subparagraph><subparagraph id="id04196314D72E4DFF83206B89CC894680"><enum>(D)</enum><text>in paragraph (6),
by striking <quote>the primary Federal regulator</quote> each place that term
appears and inserting <quote>the Bureau of Consumer Financial Protection or the
Commission</quote>.</text>
</subparagraph></paragraph></section><section id="ID90351306dbd5499b9fb15ae28b830fbf"><enum>1096.</enum><header>Amendments to
the Real Estate Settlement Procedures Act</header><text display-inline="no-display-inline">The Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2601 et seq.) is amended—</text>
<paragraph id="ID64f145de3de2464ba07768e7e0e2ec57"><enum>(1)</enum><text>in
section 3 (12 U.S.C. 2602)—</text>
<subparagraph id="id94F2C77C869A4BCC9CE3FDF25D9C2D68"><enum>(A)</enum><text>in paragraph (7),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="idC27E7FA107274724B588BE54AB8592C9"><enum>(B)</enum><text>in paragraph (8),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="id922D280A7349491F9CFFDCE2750D5260"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF8DC4D811F62420C962F3D2C76DFD57F" style="OLC">
<paragraph id="ID0583994ae1b54b9a8c6830e495a979c7"><enum>(9)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID25dd3575133e4d17a60da2490cb832ea"><enum>(2)</enum><text>in
section 4 (12 U.S.C. 2603)—</text>
<subparagraph id="ID4720b10c454d4430b323bba90ccf0349"><enum>(A)</enum><text>in subsection
(a), by striking the first sentence and inserting the following: <quote>The
Bureau shall publish a single, integrated disclosure for mortgage loan
transactions (including real estate settlement cost statements) which includes
the disclosure requirements of this title, in conjunction with the disclosure
requirements of the Truth in Lending Act that, taken together, may apply to a
transaction that is subject to both or either provisions of law. The purpose of
such model disclosure shall be to facilitate compliance with the disclosure
requirements of this title and the Truth in Lending Act, and to aid the
borrower or lessee in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of the
disclosures.</quote>;</text>
</subparagraph><subparagraph id="IDf65ece0a01f74c418a5d92662ed2d208"><enum>(B)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="IDb7a308d2c7184abaa3a9ca2e77b9be1c"><enum>(C)</enum><text>by striking
<quote>form</quote> each place that term appears and inserting
<quote>forms</quote>;</text>
</subparagraph></paragraph><paragraph id="ID89501b145ebd44379fe02068cfea200d"><enum>(3)</enum><text>in
section 5 (12 U.S.C. 2604)—</text>
<subparagraph id="ID15a6a88d71324eeeb490ea4bebce1497"><enum>(A)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="IDd81ea5b2cd7a4a92b18caf4f59f14814"><enum>(B)</enum><text>in subsection
(a), by striking the first sentence and inserting the following: <quote>The
Bureau shall prepare and distribute booklets jointly addressing compliance with
the requirements of the Truth in Lending Act and the provisions of this title,
in order to help persons borrowing money to finance the purchase of residential
real estate better to understand the nature and costs of real estate settlement
services.</quote>;</text>
</subparagraph></paragraph><paragraph id="ID49afd246204a4417b2653d27309fc4b7"><enum>(4)</enum><text>in
section 6(j)(3) (12 U.S.C. 2605(j)(3))—</text>
<subparagraph id="id2975F12B779746FF9EA6F96EC2F9E1F8"><enum>(A)</enum><text>by striking
<quote>Secretary</quote> and inserting <quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="id72EE2C96EAA94B8AA730B5CB67F7D0D8"><enum>(B)</enum><text>by striking
<quote>, by regulations that shall take effect not later than April 20,
1991,</quote>;</text>
</subparagraph></paragraph><paragraph id="IDabced6e0bd9b4e2a95d47a7861427bdc"><enum>(5)</enum><text>in
section 7(b) (12 U.S.C. 2606(b)) by striking <quote>Secretary</quote> and
inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="ID2240c40588274e1e93accc9bc40f03bc"><enum>(6)</enum><text>in
section 8(d) (12 U.S.C. 2607(d))—</text>
<subparagraph id="IDcb1e6ced77d34a9cba46a56feb8329f5"><enum>(A)</enum><text>in the subsection
heading, by inserting <quote><header-in-text level="subsection" style="OLC">Bureau and</header-in-text></quote> before <quote><header-in-text level="subparagraph" style="OLC">Secretary</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="ID313ff8afe5f54f8ca62776cb885e0948"><enum>(B)</enum><text>by striking
paragraph (4), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id1B119A2E88D9459B84B363BE36850B95" style="OLC">
<paragraph id="idA059F9713AAF42B7907E65B565FEC65D"><enum>(4)</enum><text>The Bureau, the
Secretary, or the attorney general or the insurance commissioner of any State
may bring an action to enjoin violations of this section. Except, to the extent
that a person is subject to the jurisdiction of the Bureau, the Secretary, or
the attorney general or the insurance commissioner of any State, the Bureau
shall have primary authority to enforce or administer this section, subject to
subtitle B of the Consumer Financial Protection Act of
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDf75c1b1ea6c44edc8c7a523272319108"><enum>(7)</enum><text>in
section 10(c) (12 U.S.C. 2609(c) and (d)), by striking <quote>Secretary</quote>
and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="IDcb1cee5d7801498e83d2cdba03ecd7d9"><enum>(8)</enum><text>in
section 16 (12 U.S.C. 2614), by inserting <quote>the Bureau,</quote> before
<quote>the Secretary</quote>;</text>
</paragraph><paragraph id="IDde8b829a6edd4f4cb6ef31c7ce2d5811"><enum>(9)</enum><text>in
section 18 (12 U.S.C. 2616), by striking <quote>Secretary</quote> each place
that term appears and inserting <quote>Bureau</quote>; and</text>
</paragraph><paragraph id="ID3c6ec7cfbe054508aa38eacf6bdfcf17"><enum>(10)</enum><text>in
section 19 (12 U.S.C. 2617)—</text>
<subparagraph id="idDC892A230C9A4946818FCB6CFF469631"><enum>(A)</enum><text>in the section
heading by striking <quote><header-in-text level="section" style="OLC">Secretary</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="OLC">Bureau</header-in-text></quote>;</text>
</subparagraph><subparagraph id="id379387E90C6948BE88813FFBC9B31419"><enum>(B)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="id4B2CE8813245482A98A7BA4095048FFF"><enum>(C)</enum><text>in subsection
(b), by inserting <quote>the Bureau</quote> before <quote>the
Secretary</quote>; and</text>
</subparagraph><subparagraph id="idC19A4E34833A4533A7B10216C76808BC"><enum>(D)</enum><text>in subsection
(c), by inserting <quote>or the Bureau</quote> after <quote>the
Secretary</quote> each time that term appears.</text>
</subparagraph></paragraph></section><section id="IDf1357fd9a7b04af399efd2871741eb31"><enum>1097.</enum><header>Amendments to
the Right to Financial Privacy Act of 1978</header><text display-inline="no-display-inline">The Right to Financial Privacy Act of 1978
(12 U.S.C. 3401 et seq.) is amended—</text>
<paragraph id="idF58C08326CF4452099BCE3EABC516AF5"><enum>(1)</enum><text>in
section 1101—</text>
<subparagraph commented="no" id="IDe9dbdd924a504bfab92ad7d99a71a3c1"><enum>(A)</enum><text>in paragraph
(6)—</text>
<clause commented="no" id="ID5b633d08e2bc47aa8c41c31924492d99"><enum>(i)</enum><text>in subparagraph
(A), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" id="IDf2ca1f16077c466aa2b88f35f6618b78"><enum>(ii)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end; and</text>
</clause><clause commented="no" id="ID67972501b1ad47ac9e49828a87a4f643"><enum>(iii)</enum><text>by striking
subparagraph (C); and</text>
</clause></subparagraph><subparagraph commented="no" id="IDccb53e1f28e84be2a37bc7dc604e1cf4"><enum>(B)</enum><text>in paragraph (7),
by striking subparagraph (E), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id52CE1AF7E5744F60853770A82E35181C" style="OLC">
<subparagraph commented="no" id="IDa5128a29d7074282910196e0fd3eda4d"><enum>(E)</enum><text>the Bureau of
Consumer Financial
Protection;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="idC3F90A001F9A43B6B452ABF3D644EF42"><enum>(2)</enum><text>in section
1112(e) (12 U.S.C. 3412(e)), by striking <quote>and the Commodity Futures
Trading Commission is permitted</quote> and inserting <quote>the Commodity
Futures Trading Commission, and the Bureau of Consumer Financial Protection is
permitted</quote>; and</text>
</paragraph><paragraph commented="no" id="ID54165f90af73474c8b83d9efe4315b0b"><enum>(3)</enum><text>in section 1113
(12 U.S.C. 3413), by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id011908D6A6B6439D8DEC5433D0215B78" style="OLC">
<subsection commented="no" id="ID499d3ae0989e42fca9d1dabb765ed57c"><enum>(r)</enum><header>Disclosure to
the Bureau of Consumer Financial Protection</header><text>Nothing in this title
shall apply to the examination by or disclosure to the Bureau of Consumer
Financial Protection of financial records or information in the exercise of its
authority with respect to a financial
institution.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID8cbf5020621e4233b186b146acd2c393"><enum>1098.</enum><header>Amendments to
the Secure and Fair Enforcement for Mortgage Licensing Act of
2008</header><text display-inline="no-display-inline">The S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is amended—</text>
<paragraph id="IDecf140f64b1347b691a263123bc98e72"><enum>(1)</enum><text>by
striking <quote>a Federal banking agency</quote> each place that term appears,
other than in paragraphs (7) and (11) of section 1503 and section 1507(a)(1),
and inserting <quote>the Bureau</quote>;</text>
</paragraph><paragraph id="ID5cc6d253f2a24aa4a9ec39b1f44aff6d"><enum>(2)</enum><text>by
striking <quote>Federal banking agencies</quote> each place that term appears
and inserting “Bureau”; and</text>
</paragraph><paragraph id="ID755702ba24644b62ba7d0f5cf0fef471"><enum>(3)</enum><text>by
striking <quote>Secretary</quote> each place that term appears and inserting
<quote>Director</quote>;</text>
</paragraph><paragraph id="IDc66d64ed1d7448c3b66a20184a03df59"><enum>(4)</enum><text>in
section 1503 (12 U.S.C. 5102)—</text>
<subparagraph commented="no" id="id49E524954F464BC48AC94BF8322D0309"><enum>(A)</enum><text>by redesignating
paragraphs (2) through (12) as (3) through (13), respectively;</text>
</subparagraph><subparagraph id="IDe791d3c3a64d43d5af518f352f3e69ef"><enum>(B)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id4A8590D23442457184DA68E3D779CC89" style="OLC">
<paragraph id="id09F9CF82DB1F4DE5A95F08CBD29B25B9"><enum>(1)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><paragraph id="ID17205b97cbc34e1a880d20fcbec9cafa"><enum>(2)</enum><header>Federal banking
agency</header><text>The term <term>Federal banking agency</term> means the
Board of Governors of the Federal Reserve System, the Office of the Comptroller
of the Currency, the National Credit Union Administration, and the Federal
Deposit Insurance Corporation.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID329f834c178a4bb0836b76f00c8ef91f"><enum>(C)</enum><text>by striking
paragraph (10), as so designated by this section, and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idAC27943223B343E2B99DDA85B5BE6DE0" style="OLC">
<paragraph id="id404E6BCE8F5B413C83E59F16A0EAD4CB"><enum>(10)</enum><header>Director</header><text>The
term <term>Director</term> means the Director of the Bureau of Consumer
Financial Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID3b69eca22d7a446f8783fe8364fe5f67"><enum>(5)</enum><text>in
section 1507 (12 U.S.C. 5106)—</text>
<subparagraph id="IDff497288822c4576b0021a50ef19d20d"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="IDf85fcb2afc924ce8be0f53a57f1a69ea"><enum>(i)</enum><text>by
striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id897CD82FF0F94B28BB8E627B0530F753" style="OLC">
<paragraph id="idDDB6ECBEC8C446FB89AEA1D9B102E0C8"><enum>(1)</enum><header>In
general</header><text>The Bureau shall develop and maintain a system for
registering employees of a depository institution, employees of a subsidiary
that is owned and controlled by a depository institution and regulated by a
Federal banking agency, or employees of an institution regulated by the Farm
Credit Administration, as registered loan originators with the Nationwide
Mortgage Licensing System and Registry. The system shall be implemented before
the end of the 1-year period beginning on the date of enactment of the Consumer
Financial Protection Act of 2010.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="IDd51ca25df7ed420bbdfb9f40fb82daf0"><enum>(ii)</enum><text>in
paragraph (2)—</text>
<subclause id="id64A06DD05150486AB758C70B72D86177"><enum>(I)</enum><text>by
striking <quote>appropriate Federal banking agency and the Farm Credit
Administration</quote> and inserting <quote>Bureau</quote>; and</text>
</subclause><subclause id="idF2141D90F74046CE86D8245F6B4C4992"><enum>(II)</enum><text>by
striking <quote>employees's identity</quote> and inserting <quote>identity of
the employee</quote>; and</text>
</subclause></clause></subparagraph><subparagraph id="ID9c9cdfd8d9d04e0eba77451d329d1aa9"><enum>(B)</enum><text>in subsection
(b), by striking <quote>through the Financial Institutions Examination Council,
and the Farm Credit Administration</quote>, and inserting <quote>and the Bureau
of Consumer Financial Protection</quote>;</text>
</subparagraph></paragraph><paragraph id="IDa2d52fd12c6446259c66ff785e0a630b"><enum>(6)</enum><text>in
section 1508 (12 U.S.C. 5107)—</text>
<subparagraph id="IDfb63f66cf3dc4c65b42f0b9917fa9dd0"><enum>(A)</enum><text>by striking the
section heading and inserting the following: <quote><header-in-text level="section" style="OLC">Sec. 1508. Bureau of Consumer Financial Protection
backup authority to establish loan originator licensing
system.</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="ID1a0c9a77a1b14feeb2d34de0eb3c8d81"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC863211915074A328D7711D23B72ACF4" style="OLC">
<subsection id="ID63c79cce141c4f6d8c53ff85721c1208"><enum>(f)</enum><header>Regulation
authority</header>
<paragraph id="id8695BBEDD75B4E98988EF821D3C5E8B3"><enum>(1)</enum><header>In
general</header><text>The Bureau is authorized to promulgate regulations
setting minimum net worth or surety bond requirements for residential mortgage
loan originators and minimum requirements for recovery funds paid into by loan
originators.</text>
</paragraph><paragraph id="ID1ea9dd0806da440db9e145fa9d7c93cd"><enum>(2)</enum><header>Considerations</header><text>In
issuing regulations under paragraph (1), the Bureau shall take into account the
need to provide originators adequate incentives to originate affordable and
sustainable mortgage loans, as well as the need to ensure a competitive
origination market that maximizes consumer access to affordable and sustainable
mortgage
loans.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID3b0e0b3b27904b7c9222e7a8301110b0"><enum>(7)</enum><text>by
striking section 1510 (12 U.S.C. 5109) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB445CBBB23714BF381D2B06CC2CE94B1" style="OLC">
<section id="ID94b63db3f9fb4fcbba4002f517546b2e"><enum>1510.</enum><header>Fees</header><text display-inline="no-display-inline">The Bureau, the Farm Credit Administration,
and the Nationwide Mortgage Licensing System and Registry may charge reasonable
fees to cover the costs of maintaining and providing access to information from
the Nationwide Mortgage Licensing System and Registry, to the extent that such
fees are not charged to consumers for access to such system and
registry.</text>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID3b286e5054854e6b9feef87fc9be30c0"><enum>(8)</enum><text>by
striking section 1513 (12 U.S.C. 5112) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id786FAAD8C56E4431A792B52C16597279" style="OLC">
<section id="ID021b01963550430a9c47612b1fdfbd80"><enum>1513.</enum><header>Liability
provisions</header><text display-inline="no-display-inline">The Bureau, any
State official or agency, or any organization serving as the administrator of
the Nationwide Mortgage Licensing System and Registry or a system established
by the Director under section 1509, or any officer or employee of any such
entity, shall not be subject to any civil action or proceeding for monetary
damages by reason of the good faith action or omission of any officer or
employee of any such entity, while acting within the scope of office or
employment, relating to the collection, furnishing, or dissemination of
information concerning persons who are loan originators or are applying for
licensing or registration as loan
originators.</text>
</section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID9d2351443eff46419e39de0e91741253"><enum>(9)</enum><text>in
section 1514 (12 U.S.C. 5113) in the section heading, by striking
<quote><header-in-text level="section" style="OLC">Under HUD backup licensing
system</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">By the Bureau</header-in-text></quote>.</text>
</paragraph></section><section id="ID97f30e8198714dc3ba161f535129c107"><enum>1099.</enum><header>Amendments to
the Truth in Lending Act</header><text display-inline="no-display-inline">The
Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended—</text>
<paragraph id="id9BF696333A014B55B6AD2D63A43B4B7F"><enum>(1)</enum><text display-inline="yes-display-inline">in section 103 (5 U.S.C. 1602)—</text>
<subparagraph id="ID68c56bd572eb41698c5c28f428585a3c"><enum>(A)</enum><text>by redesignating
subsections (b) through (bb) as subsections (c) through (cc), respectively;
and</text>
</subparagraph><subparagraph id="IDa270fda510ae4af29d462a865b15b502"><enum>(B)</enum><text>by inserting
after subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="idA44667B5A1844D7AAD879890D44D5CA5" style="OLC">
<subsection id="ID363a50df37c047de9ca843ca3cc05aac"><enum>(b)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id8A9803FA68E94915B03D7E3D12860054"><enum>(2)</enum><text>by
striking <quote>Board</quote> each place that term appears, other than in
section 140(d) and section 108(a), as amended by this section, and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="idCBDCD33285E4470CAEE8EBF08496F296"><enum>(3)</enum><text>by
striking <quote>Federal Trade Commission</quote> each place that term appears,
other than in section 108(c) and section 129(m), as amended by this Act, and
other than in the context of a reference to the Federal Trade Commission Act,
and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="id8150B68E9E76433CA6B5C0596342F945"><enum>(4)</enum><text>in
section 105(a) (15 U.S.C. 1604(a)), in the second sentence—</text>
<subparagraph id="ID9471534ce12b49cab6cecfe061e05d92"><enum>(A)</enum><text>by striking
<quote>Except in the case of a mortgage referred to in section 103(aa), these
regulations may contain such</quote> and inserting <quote>Except with respect
to the provisions of section 129 that apply to a mortgage referred to in
section 103(aa), such regulations may contain such additional
requirements,</quote>; and</text>
</subparagraph><subparagraph id="ID8db159b7cacb4b4faa2b062918a27703"><enum>(B)</enum><text>by inserting
<quote>all or</quote> after <quote>exceptions for</quote>;</text>
</subparagraph></paragraph><paragraph id="ID95d2bd5dcf6a489386b7a9ff83012915"><enum>(5)</enum><text>in
section 105(b) (15 U.S.C. 1604(b)), by striking the first sentence and
inserting the following: <quote>The Bureau shall publish a single, integrated
disclosure for mortgage loan transactions (including real estate settlement
cost statements) which includes the disclosure requirements of this title in
conjunction with the disclosure requirements of the Real Estate Settlement
Procedures Act of 1974 that, taken together, may apply to a transaction that is
subject to both or either provisions of law. The purpose of such model
disclosure shall be to facilitate compliance with the disclosure requirements
of this title and the Real Estate Settlement Procedures Act of 1974, and to aid
the borrower or lessee in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of the
disclosures.</quote>;</text>
</paragraph><paragraph id="IDa889994cebd14b37a4a8643e53fb3bc7"><enum>(6)</enum><text>in
section 105(f)(1) (15 U.S.C. 1604(f)(1)), by inserting <quote>all or</quote>
after <quote>from all or part of this title</quote>;</text>
</paragraph><paragraph id="ID9df413bfc4424461b2a273529cd8955d"><enum>(7)</enum><text>in
section 108 (15 U.S.C. 1607)—</text>
<subparagraph id="ID36c7f3726e6b4b3dac395d36fd9d9153"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idCD4A467AA16343D797EAE91BDE0CE2D6" style="OLC">
<subsection id="ID5cfed2987e0c424480c65a5c517a3a68"><enum>(a)</enum><header>Enforcing
agencies</header><text>Except as otherwise provided in subtitle B of the
Consumer Financial Protection Act of 2010, compliance with the requirements
imposed under this title shall be enforced under—</text>
<paragraph id="ID71dc2fc662764745bb0a15d09d0a8ae1"><enum>(1)</enum><text>section 8 of the
Federal Deposit Insurance Act, in the case of—</text>
<subparagraph id="IDaea5f9fffa6c48e98bf54c440d29ce14"><enum>(A)</enum><text>any national
bank, and Federal branch or Federal agency of a foreign bank, by the Office of
the Comptroller of the Currency;</text>
</subparagraph><subparagraph id="IDccbc97c2ccc24f25b7c55367be1ec0e7"><enum>(B)</enum><text>any member bank
of the Federal Reserve System (other than a national bank), any branch or
agency of a foreign bank (other than a Federal branch, Federal agency, or
insured State branch of a foreign bank), any commercial lending company owned
or controlled by a foreign bank, and organizations operating under section 25
or 25(a) of the Federal Reserve Act, by the Board; and</text>
</subparagraph><subparagraph id="ID35e9311fe40a47a39febe7460b69d897"><enum>(C)</enum><text>any bank insured
by the Federal Deposit Insurance Corporation (other than a member of the
Federal Reserve System) and an insured State branch of a foreign bank, by the
Board of Directors of the Federal Deposit Insurance Corporation;</text>
</subparagraph></paragraph><paragraph id="ID4bdeed4e8d6d449db281afe9125ba00c"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau;</text>
</paragraph><paragraph id="ID66c81aa0eebc425fbdf424d9736606f4"><enum>(3)</enum><text>the Federal
Credit Union Act, by the Director of the National Credit Union Administration,
with respect to any Federal credit union;</text>
</paragraph><paragraph id="ID87cce5ab6b94469995b8d90a8c03bd17"><enum>(4)</enum><text>the Federal
Aviation Act of 1958, by the Secretary of Transportation, with respect to any
air carrier or foreign air carrier subject to that Act;</text>
</paragraph><paragraph id="IDa0489f28cb004eb8a99bb52b9e9702b5"><enum>(5)</enum><text>the Packers and
Stockyards Act, 1921 (except as provided in section 406 of that Act), by the
Secretary of Agriculture, with respect to any activities subject to that Act;
and</text>
</paragraph><paragraph id="ID05e6282b310244a48442e53035aa3b15"><enum>(6)</enum><text>the Farm Credit
Act of 1971, by the Farm Credit Administration with respect to any Federal land
bank, Federal land bank association, Federal intermediate credit bank, or
production credit association.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID47e839d7ba9541949f3bd20dba1de0d2"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id31CF18D7494A4E2783A32D84D7C3C1ED" style="OLC">
<subsection id="IDb046a0c724bc4a938e74d323b48937d1"><enum>(c)</enum><header>Overall
enforcement authority of the Federal trade commission</header><text>Except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under subsection (a),
and subject to subtitle B of the Consumer Financial Protection Act of 2010, 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 Federal Trade Commission to
enforce compliance by any person with the requirements under this title,
irrespective of whether that person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDa8f0a187737f4912a821cd3853d4ba5b"><enum>(8)</enum><text>in
section 129 (15 U.S.C. 1639), by striking subsection (m) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id1166A85F44EF43ABACE16D5FC05064A2" style="OLC">
<subsection id="IDd4b5d66be8e64e27b9324df64d0fc397"><enum>(m)</enum><header>Civil penalties
in Federal trade commission enforcement actions</header><text>For purposes of
enforcement by the Federal Trade Commission, any violation of a regulation
issued by the Bureau pursuant to subsection (l)(2) shall be treated as a
violation of a rule promulgated under section 18 of the Federal Trade
Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or
practices.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id72771C3866E5462CABB4AF3397777079"><enum>(9)</enum><text>in chapter 5 (15
U.S.C. 1667 et seq.)—</text>
<subparagraph commented="no" id="id4B6E560424664EE286DF775C82A39EC3"><enum>(A)</enum><text>by striking
<quote>the Board</quote> each place that term appears and inserting <quote>the
Bureau</quote>; and</text>
</subparagraph><subparagraph commented="no" id="id78DD4B0AE678430EBDA825F6F1CFF606"><enum>(B)</enum><text>by striking
<quote>The Board</quote> each place that term appears and inserting <quote>The
Bureau</quote>.</text>
</subparagraph></paragraph></section><section id="IDc4fcac4ab543453cbd8365505d6d928a"><enum>1100.</enum><header>Amendments to
the Truth in Savings Act</header><text display-inline="no-display-inline">The
Truth in Savings Act (12 U.S.C. 4301 et seq.) is amended—</text>
<paragraph id="idE66F152271984F418AE8BA2FE9027A5F"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
that term appears and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="id92E3FF6E27AA44C8A447EB407EAD4294"><enum>(2)</enum><text display-inline="yes-display-inline">in section 270(a) (12 U.S.C. 4309)—</text>
<subparagraph id="ID73bc0f91ccf34a59ab14b4c899fccc0c"><enum>(A)</enum><text>by striking
<quote>Compliance</quote> and inserting <quote>Except as otherwise provided in
subtitle B of the Consumer Financial Protection Act of 2010,
compliance</quote>;</text>
</subparagraph><subparagraph id="ID3c98953571904a22aa94c5ca889c5afd"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause id="idC06ABB9833A24CEBA5DE456B330A9F18"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>and</quote> at the end; and</text>
</clause><clause id="ID5749ce46ac014326a9a9ea8a6a0f8bff"><enum>(ii)</enum><text>by
striking subparagraph (C);</text>
</clause></subparagraph><subparagraph id="id43434C6D66714AEAAC215658E24AFCB9"><enum>(C)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="ID93d4ba9e844b481abfac182832a7e6ee"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5C27BD5ABEF648F3A3AACF657BB7852E" style="OLC">
<paragraph id="IDadcff2f211c448aaa8ab141e14f77722"><enum>(3)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the
Bureau.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idD0C4999444E0472F82D48D4696639374"><enum>(3)</enum><text>in
section 272(b) (12 U.S.C. 4311(b)), by striking <quote>regulation prescribed by
the Board</quote> each place that term appears and inserting <quote>regulation
prescribed by the Bureau</quote>; and</text>
</paragraph><paragraph id="id5268E0B96ACA4EA89BC8CE1A55EA8501"><enum>(4)</enum><text>in
section 274 (12 U.S.C. 4313), by striking paragraph (4) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idD5BA680182504D198662420CC5D8B7AA" style="OLC">
<paragraph id="IDfc545037926247e99cc4ce9e743dcd1c"><enum>(4)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID52822a43e9ba448583f6879312cdc782"><enum>1101.</enum><header>Amendments to
the Telemarketing and Consumer Fraud and Abuse Prevention Act</header>
<subsection id="ID9b7006224c2c4d43b771129c0a7e28bc"><enum>(a)</enum><header>Amendments to
Section <enum-in-header>3</enum-in-header></header><text>Section 3 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6102) is
amended by striking subsections (b) and (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5C9328610EBA4FABB67064B0C0305844" style="OLC">
<subsection id="idDC6B5CF14D28413EA3051AE26D69CC17"><enum>(b)</enum><header>Rulemaking
authority</header><text>The Commission shall have authority to prescribe rules
under subsection (a), in accordance with section 553 of title 5, United States
Code. In prescribing a rule under this section that relates to the provision of
a consumer financial product or service that is subject to the Consumer
Financial Protection Act of 2010, including any enumerated consumer law
thereunder, the Commission shall consult with the Bureau of Consumer Financial
Protection regarding the consistency of a proposed rule with standards,
purposes, or objectives administered by the Bureau of Consumer Financial
Protection.</text>
</subsection><subsection id="IDf799efc736bd400da36934576e3cc673"><enum>(c)</enum><header>Violations</header><text>Any
violation of any rule prescribed under subsection (a)—</text>
<paragraph id="id6CE964115CA6462099A6E1856D8870F9"><enum>(1)</enum><text>shall be treated
as a violation of a rule under section 18 of the Federal Trade Commission Act
regarding unfair or deceptive acts or practices; and</text>
</paragraph><paragraph id="id20750DD05895447AB58E29FD45C9514A"><enum>(2)</enum><text>that is committed
by a person subject to the Consumer Financial Protection Act of 2010 shall be
treated as a violation of a rule under section 1031 of that Act regarding
unfair, deceptive, or abusive acts or
practices.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd6bf502b17564e8ebc8df4a47d429dfc"><enum>(b)</enum><header>Amendments to
Section <enum-in-header>4</enum-in-header></header><text>Section 4(d) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6103(d))
is amended by inserting after <quote>Commission</quote> each place that term
appears the following: <quote>or the Bureau of Consumer Financial
Protection</quote>.</text>
</subsection><subsection id="ID9ec7646154d3451a996d54622096bd61"><enum>(c)</enum><header>Amendments to
Section <enum-in-header>5</enum-in-header></header><text>Section 5(c) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6104(c))
is amended by inserting after <quote>Commission</quote> each place that term
appears the following: <quote>or the Bureau of Consumer Financial
Protection</quote>.</text>
</subsection><subsection id="ID2a5e35bcc7f94e269c08bbd9fe085b8b"><enum>(d)</enum><header>Amendment to
Section <enum-in-header>6</enum-in-header></header><text>Section 6 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6105) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id736EE58C20DD4BB5B4AD00E79A7B443D" style="OLC">
<subsection id="IDe0ee9a9d58a042b5aaa25091e2536619"><enum>(d)</enum><header>Enforcement by
Bureau of Consumer Financial Protection</header><text>Except as otherwise
provided in sections 3(d), 3(e), 4, and 5, and subject to subtitle B of the
Consumer Financial Protection Act of 2010, this Act shall be enforced by the
Bureau of Consumer Financial Protection under subtitle E of the Consumer
Financial Protection Act of
2010.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDdeb74a7f657042c7a0ae1cebfc5706cc"><enum>1102.</enum><header>Amendments to
the Paperwork Reduction Act</header>
<subsection id="ID6932b553b22d453fb2ed58c6aa0bce3f"><enum>(a)</enum><header>Designation as
an independent agency</header><text>Section 2(5) of the Paperwork Reduction Act
(44 U.S.C. 3502(5)) is amended by inserting <quote>the Bureau of Consumer
Financial Protection, the Office of Financial Research,</quote> after
<quote>the Securities and Exchange Commission,</quote>.</text>
</subsection><subsection id="id5B4C10AAFF3A4BD38FDD989951ADA14D"><enum>(b)</enum><header>Comparable
treatment</header><text>Section 3513 of title 44, United States Code, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF3D8D8701C98486289A0CBD1966BAEA4" style="OLC">
<subsection id="ID94bdcb3f07f54ad4920ad5b113a1bfea"><enum>(c)</enum><header>Comparable
treatment</header><text>Notwithstanding any other provision of law, the
Director shall treat or review a rule or order prescribed or proposed by the
Director of the Bureau of Consumer Financial Protection on the same terms and
conditions as apply to any rule or order prescribed or proposed by the Board of
Governors of the Federal Reserve
System.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idB05FF1B545A7485BB84EFFD17881308A"><enum>1103.</enum><header>Adjustments
for inflation in the Truth in Lending Act</header>
<subsection id="idE2DEE83C981D47D883293DE802C3AF90"><enum>(a)</enum><header>Caps</header>
<paragraph id="idB518C8478D3242DEA3EA874C2BC57A52"><enum>(1)</enum><header>Credit
transactions</header><text>Section 104(3) of the Truth in Lending Act (15
U.S.C. 1603(3)) is amended by striking <quote>$25,000</quote> and inserting
<quote>$50,000</quote>.</text>
</paragraph><paragraph id="id5AE72916C6744042B2189FEFE3C52626"><enum>(2)</enum><header>Consumer
leases</header><text>Section 181(1) of the Truth in Lending Act (15 U.S.C.
1667(1)) is amended by striking <quote>$25,000</quote> and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="id9C3C1EE23AFC4F8FBF34F4A4FA17EF5C"><enum>(b)</enum><header>Adjustments for
inflation</header><text>On and after December 31, 2011, the Bureau may adjust
annually the dollar amounts described in sections 104(3) and 181(1) of the
Truth in Lending Act (as amended by this section), by the annual percentage
increase in the Consumer Price Index for Urban Wage Earners and Clerical
Workers, as published by the Bureau of Labor Statistics, rounded to the nearest
multiple of $100, or $1,000, as applicable.</text>
</subsection></section><section id="idAAB5992EC33049EAA9651AA1644C37C2"><enum>1104.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this subtitle and the amendments made by this subtitle, this
subtitle and the amendments made by this subtitle, other than sections 1081 and
1082, shall become effective on the designated transfer date.</text>
</section></subtitle><enum>XI</enum><header>Federal
Reserve System provisions</header>
<section id="ID416b4b5aa5734030bea137c106abc636"><enum>1151.</enum><header>Federal
Reserve Act amendments on emergency lending authority</header><text display-inline="no-display-inline">The third undesignated paragraph of section
13 of the Federal Reserve Act (12 U.S.C. 343) (relating to emergency lending
authority) is amended—</text>
<paragraph id="IDefc7b03aef0e4fc59d7ba40a16bd2475"><enum>(1)</enum><text>by
inserting <quote>(3)(A)</quote> before <quote>In unusual</quote>;</text>
</paragraph><paragraph id="ID870445cc96b74c35a441fb1c210fd81f"><enum>(2)</enum><text>by
striking <quote>individual, partnership, or corporation</quote> the first place
that term appears and inserting the following: <quote>participant in any
program or facility with broad-based eligibility</quote>;</text>
</paragraph><paragraph id="ID93cb4e932f494fc29c2ffacfe1052212"><enum>(3)</enum><text>by
striking <quote>exchange for an individual or a partnership or
corporation</quote> and inserting <quote>exchange,</quote>;</text>
</paragraph><paragraph id="id16006ADFC3264C29AEF8212EF7222BA9"><enum>(4)</enum><text>by
striking <quote>such individual, partnership, or corporation</quote> and
inserting the following: <quote>such participant in any program or facility
with broad-based eligibility</quote>;</text>
</paragraph><paragraph id="ID8deb715161364dc4be2dea575f0b22bf"><enum>(5)</enum><text>by
striking <quote>for individuals, partnerships, corporations</quote> and
inserting <quote>for any participant in any program or facility with
broad-based eligibility</quote>;</text>
</paragraph><paragraph id="ID53767ecec298439da5450a1ff4b1afe3"><enum>(6)</enum><text>by
striking <quote>may prescribe.</quote> and inserting the following: “may
prescribe.</text>
<quoted-block display-inline="no-display-inline" id="idC8093127D1354DB1ADE2B03F0B80B231" style="OLC">
<subparagraph id="ID9bf7377c94fd4a1c899ea4e4ed4e47fb"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idFD7ABD811D474C03A5E71E16685F1CE0"><enum>(i)</enum><text>As soon as is
practicable after the date of enactment of this subparagraph, the Board shall
establish, by regulation, in consultation with the Secretary of the Treasury,
the policies and procedures governing emergency lending under this paragraph.
Such policies and procedures shall be designed to ensure that any emergency
lending program or facility is for the purpose of providing liquidity to the
financial system, and not to aid a failing financial company, and that the
collateral for emergency loans is of sufficient quality to protect taxpayers
from losses.</text>
</clause><clause id="ID03012c8d7efe49608207dff8d6cf7c66" indent="up1"><enum>(ii)</enum><text>The Board may not establish any
program or facility under this paragraph without the prior approval of the
Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph id="ID58ce12ec610542ed928abcb6576f4fc1"><enum>(C)</enum><text>The Board shall
provide to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives—</text>
<clause id="ID12dd3c4613494a07bdb546478fcb5e8e"><enum>(i)</enum><text>not
later than 7 days after providing any loan or other financial assistance under
this paragraph, a report that includes—</text>
<subclause id="IDefbbd025efd644a1882343e710e2f27c"><enum>(I)</enum><text>the justification
for the exercise of authority to provide such assistance;</text>
</subclause><subclause id="IDb8f3327ad5d844a5a31233b5c4e8ec6a"><enum>(II)</enum><text>the identity of
the recipients of such assistance, subject to subparagraph (D);</text>
</subclause><subclause id="ID8a6fe03f697a490cace044968b062e16"><enum>(III)</enum><text>the date and
amount of the assistance, and form in which the assistance was provided;
and</text>
</subclause><subclause id="ID9551e9fe52924a829f21b095bdf1a024"><enum>(IV)</enum><text>the material
terms of the assistance, including—</text>
<item id="ID4c3a9375670247f89fafdd87bc572a71"><enum>(aa)</enum><text>duration;</text>
</item><item id="ID9b677095562644aeab0e27091fd7c6ef"><enum>(bb)</enum><text>collateral
pledged and the value thereof;</text>
</item><item id="ID24e0c131a5a7426088bd7dba85d0d641"><enum>(cc)</enum><text>all
interest, fees, and other revenue or items of value to be received in exchange
for the assistance;</text>
</item><item id="IDb10b4ad5578d466b83fc5e0142d4a2ac"><enum>(dd)</enum><text>any
requirements imposed on the recipient with respect to employee compensation,
distribution of dividends, or any other corporate decision in exchange for the
assistance; and</text>
</item><item id="ID8d407dd594824cf7a6ca3ee8ee67e3c3"><enum>(ee)</enum><text>the
expected costs to the taxpayers of such assistance; and</text>
</item></subclause></clause><clause id="ID3d0c51029302480db4d5f1d402693338"><enum>(ii)</enum><text>once
every 30 days, with respect to any outstanding loan or other financial
assistance under this paragraph, written updates on—</text>
<subclause id="ID53b05ae51afe4190888931210a38729b"><enum>(I)</enum><text>the value of
collateral;</text>
</subclause><subclause id="ID1ba00a07e15c401093b7fe5499fa5d9d"><enum>(II)</enum><text>the amount of
interest, fees, and other revenue or items of value received in exchange for
the assistance; and</text>
</subclause><subclause id="ID5c89c65f13fc40b69cd405dc6e7e5a37"><enum>(III)</enum><text>the expected or
final cost to the taxpayers of such assistance.</text>
</subclause></clause></subparagraph><subparagraph id="IDdca1315f5c5e471588a99e31040890df"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="idB6C163054230468FB9E9C7345FDF104E"><enum>(i)</enum><text>The Board shall
disclose, not later than 1 year after the date on which assistance was first
received under the program or facility, unless the Board determines that such
disclosure likely would reduce the effectiveness of the program or facility in
addressing or mitigating the financial market disruptions, financial market
conditions, or other unusual and exigent circumstances sought to be addressed
or mitigated by the program or facility, or would otherwise have a significant
effect on economic or financial market conditions—</text>
<subclause id="idC160FA7CE28F416FB24EF47D281DE4E2" indent="up1"><enum>(I)</enum><text>the identity of the participants in an
emergency lending program or facility commenced under this paragraph;</text>
</subclause><subclause id="id6EE7D077009D4DF699AFBF4B17944C0B" indent="up1"><enum>(II)</enum><text>the amounts borrowed by each participant
in any such program or facility; and</text>
</subclause><subclause id="id68770452B77C4D77A6F20C4FD098D791" indent="up1"><enum>(III)</enum><text>identifying details concerning the
assets or collateral held by, under, or in connection with such a program or
facility within 1 year of the date on which assistance was first received under
the program or facility.</text>
</subclause></clause><clause id="ID197e7df7cfd14d39842dc0ff0447c8e2" indent="up1"><enum>(ii)</enum><text>If the Board determines not to
make the disclosures required by clause (i) within 1 year of the date on which
a participant first received assistance under a program or facility, the Board
shall—</text>
<subclause id="IDb5ffb696c7184b0e9d684459ce21e92c"><enum>(I)</enum><text>provide to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a written report explaining the
reasons for delaying the disclosures about such program or facility not later
than 30 days after making such determination; and</text>
</subclause><subclause id="ID681af45065ea4638970276bb519105b1"><enum>(II)</enum><text>provide to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives each year thereafter a written report
explaining the reasons for continuing to delay disclosure, until the
disclosures are complete.</text>
</subclause></clause><clause id="ID7ac403dbc1f44317bd7ea569fac6bb3f" indent="up1"><enum>(iii)</enum><text>The disclosures required by
clause (i) shall be made not later than 12 months after the effective date of
the termination of the facility by the Board.</text>
</clause><clause id="ID2e2a257ae0ad4ce6854fbee4d05d606e" indent="up1"><enum>(iv)</enum><text>If the Board determines not to
make the disclosures required by clause (i), the Comptroller General of the
United States shall issue a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives evaluating whether that determination is
reasonable.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDe3e4c47d05354ee08890820ba02928ec"><enum>1152.</enum><header>Reviews of
special Federal reserve credit facilities</header>
<subsection id="ID12178b0c192042c3b88fdd628ab53e22"><enum>(a)</enum><header>Reviews</header><text>Section
714 of title 31, United States Code, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id8884BF9C68674454B0407CEDBE46779C" style="OLC">
<subsection id="IDf8e90af9590e4bc4b873b790a6f77747"><enum>(f)</enum><header>Reviews of
credit facilities of the Federal reserve system</header>
<paragraph id="ID12adbaf970d04930a32106afcb3cc025"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>credit facility</term> means a program or
facility, including any special purpose vehicle or other entity established by
or on behalf of the Board of Governors of the Federal Reserve System or a
Federal reserve bank, authorized by the Board of Governors under the third
undesignated paragraph of section 13 of the Federal Reserve Act (12 U.S.C.
343), that is not subject to audit under subsection (e), including—</text>
<subparagraph id="ID0249ecea7b0b40e8a580ad13417603ea"><enum>(A)</enum><text>the Asset-Backed
Commercial Paper Money Market Mutual Fund Liquidity Facility;</text>
</subparagraph><subparagraph id="IDbaf739ade5c24386a3eaf6c975d1fdd3"><enum>(B)</enum><text>the Term
Asset-Backed Securities Loan Facility;</text>
</subparagraph><subparagraph id="ID388c14c5389b4b3485869f515b639fd9"><enum>(C)</enum><text>the Primary
Dealer Credit Facility;</text>
</subparagraph><subparagraph id="ID962ce11f703a4dc9a6c1e1d5e6af8746"><enum>(D)</enum><text>the Commercial
Paper Funding Facility; and</text>
</subparagraph><subparagraph id="IDd6a95381206f422f88b9c75e9cbfad73"><enum>(E)</enum><text>the Term
Securities Lending Facility.</text>
</subparagraph></paragraph><paragraph id="IDf55f30095ca34fc681a099c21633fe7b"><enum>(2)</enum><header>Authority for
reviews and examinations</header><text>Subject to paragraph (3), and
notwithstanding any limitation in subsection (b) on the auditing and oversight
of certain functions of the Board of Governors of the Federal Reserve System or
any Federal reserve bank, the Comptroller General of the United States may
conduct reviews, including onsite examinations, of the Board of Governors, a
Federal reserve bank, or a credit facility, if the Comptroller General
determines that such reviews are appropriate, solely for the purposes of
assessing, with respect to a credit facility—</text>
<subparagraph id="ID9904ff0dea234681bb1835ba5aef307e"><enum>(A)</enum><text>the operational
integrity, accounting, financial reporting, and internal controls of the credit
facility;</text>
</subparagraph><subparagraph id="ID573393e8d6c341f0b309ed5100b51797"><enum>(B)</enum><text>the effectiveness
of the collateral policies established for the facility in mitigating risk to
the relevant Federal reserve bank and taxpayers;</text>
</subparagraph><subparagraph id="IDc6931b76da624e38834cc50519d6469d"><enum>(C)</enum><text>whether the
credit facility inappropriately favors one or more specific participants over
other institutions eligible to utilize the facility; and</text>
</subparagraph><subparagraph id="IDa4b89a6747f243d1a2d961205afa72e1"><enum>(D)</enum><text>the policies
governing the use, selection, or payment of third-party contractors by or for
any credit facility.</text>
</subparagraph></paragraph><paragraph id="IDe363261ff3ba44709ca0bcc508ba3014"><enum>(3)</enum><header>Reports and
delayed disclosure</header>
<subparagraph id="ID774884b8a7c947f0b26b3f3f05c583ff"><enum>(A)</enum><header>Reports
required</header><text>A report on each review conducted under paragraph (2)
shall be submitted by the Comptroller General to the Congress before the end of
the 90-day period beginning on the date on which such review is
completed.</text>
</subparagraph><subparagraph id="IDcd5dd0cecbad4d8c84b2e7d65129a1be"><enum>(B)</enum><header>Contents</header><text>The
report under subparagraph (A) shall include a detailed description of the
findings and conclusions of the Comptroller General with respect to the matters
described in paragraph (2) that were reviewed and are the subject of the
report, together with such recommendations for legislative or administrative
action relating to such matters as the Comptroller General may determine to be
appropriate.</text>
</subparagraph><subparagraph id="IDc82513a2779f4f8bb50ab566d4b5751d"><enum>(C)</enum><header>Delayed release
of certain information</header>
<clause id="ID1e315be138d346b98ad6ae625e393f36"><enum>(i)</enum><header>In
general</header><text>The Comptroller General shall not disclose to any person
or entity, including to Congress, the names or identifying details of specific
participants in any credit facility, the amounts borrowed by specific
participants in any credit facility, or identifying details regarding assets or
collateral held by, under, or in connection with any credit facility, and any
report provided under subparagraph (A) shall be redacted to ensure that such
names and details are not disclosed.</text>
</clause><clause id="ID4cb356cec1904926a074399da164113d"><enum>(ii)</enum><header>Delayed
release</header><text>The nondisclosure obligation under clause (i) shall
expire with respect to any participant on the date on which the Board of
Governors, directly or through a Federal reserve bank, publicly discloses the
identity of the subject participant or the identifying details of the subject
assets or collateral.</text>
</clause><clause id="ID096ab7a8dd3a413db553e31cc5c2ee9a"><enum>(iii)</enum><header>General
release</header><text>The Comptroller General shall release a nonredacted
version of any report on a credit facility 1 year after the effective date of
the termination by the Board of Governors of the authorization for the credit
facility. For purposes of this clause, a credit facility shall be deemed to
have terminated 24 months after the date on which the credit facility ceases to
make extensions of credit and loans, unless the credit facility is otherwise
terminated by the Board of Governors.</text>
</clause><clause id="ID953f33d93dea4fb180417f8497694f37"><enum>(iv)</enum><header>Exceptions</header><text>The
nondisclosure obligation under clause (i) shall not apply to the credit
facilities Maiden Lane, Maiden Lane II, and Maiden Lane
III.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID57fbaf589bcc46318df9713530835c9e"><enum>(b)</enum><header>Access to
records</header><text>Section 714(d) of title 31, United States Code, is
amended—</text>
<paragraph id="ID90a116ba2d514308985ce5547dfc017b"><enum>(1)</enum><text>in
paragraph (2), by inserting <quote>or any person or entity described in
paragraph (3)(A)</quote> after <quote>used by an agency</quote>;</text>
</paragraph><paragraph id="IDc2d3cc6f21084517b05790e4287cc04a"><enum>(2)</enum><text>in
paragraph (3), by inserting <quote>or (f)</quote> after <quote>subsection
(e)</quote> each place that term appears; and</text>
</paragraph><paragraph id="IDc602a6c60ae543a7a1763a0e7573f0ad"><enum>(3)</enum><text>in
paragraph (3)(B), by adding at the end the following: <quote>The Comptroller
General may make and retain copies of books, accounts, and other records
provided under subparagraph (A) as the Comptroller General deems appropriate.
The Comptroller General shall provide to any person or entity described in
subparagraph (A) a current list of officers and employees to whom, with proper
identification, records and property may be made available, and who may make
notes or copies necessary to carry out a review or examination under this
subsection.</quote>.</text>
</paragraph></subsection></section><section id="ID25fe61267e0c4974981b365a5b765189"><enum>1153.</enum><header>Public access
to information</header><text display-inline="no-display-inline">Section 2B of
the Federal Reserve Act (12 U.S.C. 225b) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id9F93FF4C2CE741CEB4D329669173334D" style="OLC">
<subsection id="ID1d43260132e64bd69bfcf49b34d62653"><enum>(c)</enum><header>Public access
to information</header><text>The Board shall place on its home Internet
website, a link entitled <quote>Audit</quote>, which shall link to a webpage
that shall serve as a repository of information made available to the public
for a reasonable period of time, not less than 6 months following the date of
release of the relevant information, including—</text>
<paragraph id="IDc30bf0593c3d4d118c53b91f22886172"><enum>(1)</enum><text>the reports
prepared by the Comptroller General under section 714 of title 31, United
States Code;</text>
</paragraph><paragraph id="ID752172b5bc8f4d6195104d612856188e"><enum>(2)</enum><text>the annual
financial statements prepared by an independent auditor for the Board in
accordance with section 11B;</text>
</paragraph><paragraph id="IDe1a8548c44df4e768192cbe61415ca11"><enum>(3)</enum><text>the reports to
the Committee on Banking, Housing, and Urban Affairs of the Senate required
under the third undesignated paragraph of section 13 (relating to emergency
lending authority); and</text>
</paragraph><paragraph id="ID7944d36f4bb54d52a789ef449703b7a8"><enum>(4)</enum><text>such other
information as the Board reasonably believes is necessary or helpful to the
public in understanding the accounting, financial reporting, and internal
controls of the Board and the Federal reserve
banks.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDd04bd019e5e345cabfb18fa00b33c3ec"><enum>1154.</enum><header>Liquidity
event determination</header>
<subsection id="IDc457d14544f1444bbcbeda232da2bab8"><enum>(a)</enum><header>Determination
and written recommendation</header>
<paragraph id="IDd450ff0cc1124a2c9315c8961d8ed070"><enum>(1)</enum><header>Determination
request</header><text>The Secretary may request the Corporation and the Board
of Governors to determine whether a liquidity event exists that warrants use of
the guarantee program authorized under section 1155.</text>
</paragraph><paragraph id="ID3756566e0dbb4a7fa6101385ba0c4101"><enum>(2)</enum><header>Requirements of
determination</header><text>Any determination pursuant to paragraph (1)
shall—</text>
<subparagraph id="IDc89ff80bbf694c90964a8a4a7425069f"><enum>(A)</enum><text>be written;
and</text>
</subparagraph><subparagraph id="IDe077ac589ccc47a5a581a39510cabaf4"><enum>(B)</enum><text>contain an
evaluation of the evidence that—</text>
<clause id="IDfdb8cb8584a34b2c8224fd7a6e340207"><enum>(i)</enum><text>a
liquidity event exists;</text>
</clause><clause id="ID85a67d2371b346caa7b18fb8c283a546"><enum>(ii)</enum><text>failure to take
action would have serious adverse effects on financial stability or economic
conditions in the United States; and</text>
</clause><clause id="IDdde8da8f934e43d6ba5da642360a9554"><enum>(iii)</enum><text>actions
authorized under section 1155 are needed to avoid or mitigate potential adverse
effects on the United States financial system or economic conditions.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID88e0a4872c6f475bb8fc8051fa648657"><enum>(b)</enum><header>Procedures</header><text>Notwithstanding
any other provision of Federal or State law, upon the determination of both the
Corporation (upon a vote of not fewer than <fraction>2/3</fraction> of the
members of the Corporation then serving) and the Board of Governors (upon a
vote of not fewer than <fraction>2/3</fraction> of the members of the Board of
Governors then serving) under subsection (a) that a liquidity event exists that
warrants use of the guarantee program authorized under section 1155, and with
the written consent of the Secretary—</text>
<paragraph id="IDeed8b11d2b6744b49bfb47fcca4049cc"><enum>(1)</enum><text>the
Corporation shall take action in accordance with section 1155(a); and</text>
</paragraph><paragraph id="IDa7a97f93dd63401cb772f67c07a0a8b9"><enum>(2)</enum><text>the
Secretary (in consultation with the President) shall take action in accordance
with section 1155(c).</text>
</paragraph></subsection><subsection id="IDd4182713ae7145e6b8ef7120bbf7f442"><enum>(c)</enum><header>Documentation
and review</header>
<paragraph id="ID55688e6ebcb74012a38f4e559a39254b"><enum>(1)</enum><header>Documentation</header><text>The
Secretary shall—</text>
<subparagraph id="IDb897f69375084437a60cc5b2ec6e9757"><enum>(A)</enum><text>maintain the
written documentation of each determination of the Corporation and the Board of
Governors under this section; and</text>
</subparagraph><subparagraph id="ID6ea40b0ee62c4063b006168788b1e87d"><enum>(B)</enum><text>provide the
documentation for review under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="ID191cebbf707744d4834db4488761bd52"><enum>(2)</enum><header>GAO
review</header><text>The Comptroller General of the United States shall review
and report to Congress on any determination of the Corporation and the Board of
Governors under subsection (a), including—</text>
<subparagraph id="ID0382a8ea6ab442ada33c9fd3c32e6f03"><enum>(A)</enum><text>the basis for the
determination; and</text>
</subparagraph><subparagraph id="ID513c8f855644436db18151fdf83b6b2d"><enum>(B)</enum><text>the likely effect
of the actions taken.</text>
</subparagraph></paragraph></subsection><subsection id="ID475cec03c2a34401b61107fe80cb3a49"><enum>(d)</enum><header>Report to
Congress</header><text>On the earlier of the date of a submission made to
Congress under section 1155(c), or within 30 days of the date of a
determination under subsection (a), the Secretary shall provide written notice
of the determination of the Corporation and the Board of Governors to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, including a
description of the basis for the determination.</text>
</subsection></section><section id="ID43a1f4784c2b4c0dbb40421813caf7cb"><enum>1155.</enum><header>Emergency
financial stabilization</header>
<subsection id="ID5d37f0ee19f44e109e1fff28eace3882"><enum>(a)</enum><header>In
general</header><text>Upon the written determination of the Corporation and the
Board of Governors under section 1154, the Corporation shall create a widely
available program to guarantee obligations of solvent insured depository
institutions or solvent depository institution holding companies (including any
affiliates thereof) during times of severe economic distress, except that a
guarantee of obligations under this section may not include the provision of
equity in any form.</text>
</subsection><subsection id="ID4cc001852b9844fd927bf08829a0333d"><enum>(b)</enum><header>Rulemaking and
terms and conditions</header>
<paragraph id="IDb1c2567bee8c40b78e7acc79c5d3a3a1"><enum>(1)</enum><header>Policies and
procedures</header><text>As soon as is practicable after the date of enactment
of this Act, the Corporation shall establish, by regulation, and in
consultation with the Secretary, policies and procedures governing the issuance
of guarantees authorized by this section. Such policies and procedures may
include a requirement of collateral as a condition of any such
guarantee.</text>
</paragraph><paragraph id="IDac659cfdbb6849478352818a8ee724b5"><enum>(2)</enum><header>Terms and
conditions</header><text>The terms and conditions of any guarantee program
shall be established by the Corporation, with the concurrence of the
Secretary.</text>
</paragraph></subsection><subsection id="ID88ecd89fa3404a4d9ae2b6b3001f1f0a"><enum>(c)</enum><header>Determination
of guaranteed amount</header>
<paragraph id="ID84fd2a03ff0e438c8a751b5ef6bc2657"><enum>(1)</enum><header>In
general</header><text>In connection with any program established pursuant to
subsection (a) and subject to paragraph (2) of this subsection, the Secretary
(in consultation with the President) shall determine the maximum amount of debt
outstanding that the Corporation may guarantee under this section, and the
President may transmit to Congress a written report on the plan of the
Corporation to exercise the authority under this section to issue guarantees up
to that maximum amount. Upon the expiration of the 5-calendar-day period
beginning on the date on which Congress receives the report on the plan of the
Corporation, the Corporation may exercise the authority under this section to
issue guarantees up to that specified maximum amount, unless there is enacted,
within that 5-calendar-day period, a joint resolution disapproving such report,
as provided in subsection (d).</text>
</paragraph><paragraph id="ID4e99ccbf9f4941b89819e40b07b1d992"><enum>(2)</enum><header>Additional debt
guarantee authority</header><text>If the Secretary (in consultation with the
President) determines, after a submission to Congress under paragraph (1), that
the maximum guarantee amount should be raised, and the Council concurs with
that determination, the President may transmit to Congress a written report on
the plan of the Corporation to exercise the authority under this section to
issue guarantees up to the increased maximum debt guarantee amount. Upon the
expiration of the 5-calendar-day period beginning on the date on which Congress
receives the report on the plan of the Corporation, the Corporation may
exercise the authority under this section to issue guarantees up to that
specified maximum amount, unless there is enacted, within that 5-calendar-day
period, a joint resolution disapproving such report, as provided in subsection
(d).</text>
</paragraph></subsection><subsection id="ID866ae07d8508420bbb664219da1dcc0c"><enum>(d)</enum><header>Joint
resolution</header>
<paragraph id="IDddf7a3eff8814ac0998f53f71dfa0e93"><enum>(1)</enum><header>Fast track
consideration in house of representatives</header>
<subparagraph id="ID9c860298a48a4c9e9d6eb5976126ce54"><enum>(A)</enum><header>Contents of
joint resolution</header><text>For purposes of this section, the term
<quote>joint resolution</quote> means only a joint resolution—</text>
<clause id="ID62473c0485754cc9b8260cf7061d0672"><enum>(i)</enum><text>that is
introduced not later than 3 calendar days after the date on which the report of
the Secretary referred to in section 1154(d) is received by Congress;</text>
</clause><clause id="ID7511de9e9c524c418fdd6e1aa5170803"><enum>(ii)</enum><text>that
does not have a preamble;</text>
</clause><clause id="IDe6674be380d24e6098d728a3650f622c"><enum>(iii)</enum><text>the
title of which is as follows: <quote>Joint resolution relating to the
disapproval of a plan to guarantee obligations under section 1155 of the
Restoring American Financial Stability Act of 2010</quote>; and</text>
</clause><clause id="ID9305f51988ce4f138aa9c8a55e1cc3e1"><enum>(iv)</enum><text>the
matter after the resolving clause of which is as follows: <quote>That Congress
disapproves the obligation of any amount described in section 1155(c) of the
Restoring American Financial Stability Act of 2010.</quote>.</text>
</clause></subparagraph><subparagraph id="ID58980600663d4f24afb538cf3332d8e3"><enum>(B)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (c), the Speaker, if the House of
Representatives would otherwise be adjourned, shall notify the Members of the
House of Representatives that, pursuant to this section, the House of
Representatives shall convene not later than the second calendar day after the
date of receipt of such report.</text>
</subparagraph><subparagraph id="IDfba3cd6f420c4c839b6ec5d3dc49bbd0"><enum>(C)</enum><header>Reporting and
discharge</header><text>Any committee of the House of Representatives to which
a joint resolution is referred shall report it to the House of Representatives
not later than 4 calendar days after the date of receipt of the report under
subsection (c). If a committee fails to report the joint resolution within that
period, the committee shall be discharged from further consideration of the
joint resolution and the joint resolution shall be referred to the appropriate
calendar.</text>
</subparagraph><subparagraph id="ID454d96230a2a4f48ab38eb7bc69147f7"><enum>(D)</enum><header>Proceeding to
consideration</header><text>After each committee authorized to consider a joint
resolution reports it to the House of Representatives or has been discharged
from its consideration, it shall be in order, not later than the 5th day after
Congress receives the report under subsection (c), to move to proceed to
consider the joint resolution in the House of Representatives. All points of
order against the motion are waived. Such a motion shall not be in order after
the House of Representatives has disposed of a motion to proceed on the joint
resolution. The previous question shall be considered as ordered on the motion
to its adoption without intervening motion. The motion shall not be debatable.
A motion to reconsider the vote by which the motion is disposed of shall not be
in order.</text>
</subparagraph><subparagraph id="ID88e51fead29d4a279d94928a55befc01"><enum>(E)</enum><header>Consideration</header><text>The
joint resolution shall be considered as read. All points of order against the
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 2 hours of debate equally divided and
controlled by the proponent and an opponent. A motion to reconsider the vote on
passage of the joint resolution shall not be in order.</text>
</subparagraph></paragraph><paragraph id="ID80116d2fbbff450f9ad75a95ed8e6833"><enum>(2)</enum><header>Fast track
consideration in Senate</header>
<subparagraph id="ID07517532b8e140cb97279b1980256990"><enum>(A)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (c), if the Senate has adjourned or
recessed for more than 2 days, the majority leader of the Senate, after
consultation with the minority leader of the Senate, shall notify the Members
of the Senate that, pursuant to this section, the Senate shall convene not
later than the second calendar day after receipt of such message.</text>
</subparagraph><subparagraph id="IDba173e3f10df464abb296de833e1498f"><enum>(B)</enum><header>Placement on
calendar</header><text>Upon introduction in the Senate, the joint resolution
shall be placed immediately on the calendar.</text>
</subparagraph><subparagraph id="ID1e8e50e1c9124b9fb406b5c71c54fd8d"><enum>(C)</enum><header>Floor
consideration</header>
<clause id="ID8f5b8f3c38c140d29013ec8499ffc00c"><enum>(i)</enum><header>In
general</header><text>Notwithstanding Rule XXII of the Standing Rules of the
Senate, it is in order at any time during the period beginning on the 4th day
after the date on which Congress receives a report under subsection (c), and
ending on the 5th day after the date on which Congress receives a report under
subsection (c) (even though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the joint resolution,
and all points of order against the joint resolution (and against consideration
of the joint resolution) are waived. The motion to proceed is not debatable.
The motion is not subject to a motion to postpone. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall not be in order. If
a motion to proceed to the consideration of the resolution is agreed to, the
joint resolution shall remain the unfinished business until disposed of.</text>
</clause><clause id="ID89dbfbe702134a02bc9ed4a98860f81d"><enum>(ii)</enum><header>Debate</header><text>Debate
on the joint resolution, and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours, which shall be divided
equally between the majority and minority leaders or their designees. A motion
further to limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.</text>
</clause><clause id="ID97821c7d274c40fb988f2ca0f342d8d8"><enum>(iii)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on the joint resolution, and a single quorum call at
the conclusion of the debate if requested in accordance with the rules of the
Senate.</text>
</clause><clause id="ID21d80b1d839d49d8b15c4397e47f64fe"><enum>(iv)</enum><header>Rulings of the
chair on procedure</header><text>Appeals from the decisions of the Chair
relating to the application of the rules of the Senate, as the case may be, to
the procedure relating to a joint resolution shall be decided without
debate.</text>
</clause></subparagraph></paragraph><paragraph id="IDf8d2fe0fce424692b70aa6e0d600b8f1"><enum>(3)</enum><header>Rules relating
to Senate and House of Representatives</header>
<subparagraph id="ID333b1b8dff2c4b789242f8c5484ee17f"><enum>(A)</enum><header>Coordination
with action by other house</header><text>If, before the passage by one House of
a joint resolution of that House, that House receives from the other House a
joint resolution, then the following procedures shall apply:</text>
<clause id="ID61ff25a54a1d4252bd20e5c21ca8ae9b"><enum>(i)</enum><text>The
joint resolution of the other House shall not be referred to a
committee.</text>
</clause><clause id="ID9134a90635e74287b3a7da5701e6bebb"><enum>(ii)</enum><text>With
respect to a joint resolution of the House receiving the resolution—</text>
<subclause id="ID55967cae9ead49279b5a9943aaacdfee"><enum>(I)</enum><text>the
procedure in that House shall be the same as if no joint resolution had been
received from the other House; but</text>
</subclause><subclause id="ID1bc39092cdea4c25aeec22f64a63f42e"><enum>(II)</enum><text>the
vote on passage shall be on the joint resolution of the other House.</text>
</subclause></clause></subparagraph><subparagraph id="IDd2fc2f54f30c441bb4dc4af28ab825ab"><enum>(B)</enum><header>Treatment of
joint resolution of other house</header><text>If one House fails to introduce
or consider a joint resolution under this section, the joint resolution of the
other House shall be entitled to expedited floor procedures under this
section.</text>
</subparagraph><subparagraph id="ID9b9d4da159574b088813d769798f6c4f"><enum>(C)</enum><header>Treatment of
companion measures</header><text>If, following passage of the joint resolution
in the Senate, the Senate then receives the companion measure from the House of
Representatives, the companion measure shall not be debatable.</text>
</subparagraph><subparagraph id="IDc6c3c20261c04d62968eae4049a0c3ec"><enum>(D)</enum><header>Consideration
after passage</header>
<clause id="ID69735fbaee3f4f2fbe4a86cbc42eab34"><enum>(i)</enum><header>In
general</header><text>If Congress passes a joint resolution, the period
beginning on the date the President is presented with the joint resolution and
ending on the date the President takes action with respect to the joint
resolution shall be disregarded in computing the 5-day period described in
subsection (c).</text>
</clause><clause id="ID7e22f2a6aa054647aa26fa874da45c22"><enum>(ii)</enum><header>Vetoes</header><text>If
the President vetoes the joint resolution—</text>
<subclause id="ID667856c6f8094c0ba2d80795267bd119"><enum>(I)</enum><text>the
period beginning on the date the President vetoes the joint resolution and
ending on the date the Congress receives the veto message with respect to the
joint resolution shall be disregarded in computing the 5-day period described
in subsection (c); and</text>
</subclause><subclause id="ID5885dbc355ff4dc381fae8cd34703ef3"><enum>(II)</enum><text>debate on a veto
message in the Senate under this section shall be 1 hour equally divided
between the majority and minority leaders or their designees.</text>
</subclause></clause></subparagraph><subparagraph id="IDf37f2eae706949119f6f19089bf35ba8"><enum>(E)</enum><header>Rules of House
of Representatives and Senate</header><text>This subsection is enacted by
Congress—</text>
<clause id="ID258e9e444855498c956e2a85fad55b66"><enum>(i)</enum><text>as an
exercise of the rulemaking power of the Senate and House of Representatives,
respectively, and as such it is deemed a part of the rules of each House,
respectively, but applicable only with respect to the procedure to be followed
in that House in the case of a joint resolution, and it supersedes other rules
only to the extent that it is inconsistent with such rules; and</text>
</clause><clause id="ID261987d4f8084d2aa33e15a24934506f"><enum>(ii)</enum><text>with
full recognition of the constitutional right of either House to change the
rules (so far as relating to the procedure of that House) at any time, in the
same manner, and to the same extent as in the case of any other rule of that
House.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID84af377f7120408388a34cce5a52d264"><enum>(e)</enum><header>Funding</header>
<paragraph id="ID34e7755a4adf47bf850988eb57e62882"><enum>(1)</enum><header>Fees and other
charges</header><text>The Corporation shall charge fees and other assessments
to all participants in the program established pursuant to this section, in
such amounts as are necessary to offset projected losses and administrative
expenses, including amounts borrowed pursuant to paragraph (3), and such
amounts shall be available to the Corporation.</text>
</paragraph><paragraph id="IDa48dd974076b48268e97f90cf9aa5cad"><enum>(2)</enum><header>Excess
funds</header><text>If, at the conclusion of the program established under this
section, there are any excess funds collected from the fees associated with
such program, the funds shall be deposited in the General Fund of the
Treasury.</text>
</paragraph><paragraph id="ID3c3bac957f394e19b5a67525d6ba08fa"><enum>(3)</enum><header>Authority of
corporation</header><text>The Corporation—</text>
<subparagraph id="ID3b030c9dc89d433089ee076b5782ce98"><enum>(A)</enum><text>may borrow funds
from the Secretary of the Treasury and issue obligations of the Corporation to
the Secretary for amounts borrowed, and the amounts borrowed shall be available
to the Corporation for purposes of carrying out a program established pursuant
to this section, including the payment of reasonable costs of administering the
program, and the obligations issued shall be repaid in full with interest
through fees and charges paid by participants in accordance with paragraphs (1)
and (4), as applicable; and</text>
</subparagraph><subparagraph id="ID52af18592e004a6eb7e513503550601f"><enum>(B)</enum><text>may not borrow
funds from the Deposit Insurance Fund established pursuant to section 11(a)(4)
of the Federal Deposit Insurance Act.</text>
</subparagraph></paragraph><paragraph id="ID56ad808ee1104671abb3c97e74b300ae"><enum>(4)</enum><header>Backup special
assessments</header><text>To the extent that the funds collected pursuant to
paragraph (1) are insufficient to cover any losses or expenses, including
amounts borrowed pursuant to paragraph (3), arising from a program established
pursuant to this section, the Corporation shall impose a special assessment
solely on participants in the program, in amounts necessary to address such
insufficiency, and which shall be available to the Corporation to cover such
losses or expenses.</text>
</paragraph><paragraph id="ID7aee81e8ab124183aac24a7aeb5cd013"><enum>(5)</enum><header>Authority of
the Secretary</header><text>The Secretary may purchase any obligations issued
under paragraph (3)(A). For such purpose, the Secretary may use the proceeds of
the sale of any securities issued under chapter 31 of title 31, United States
Code, and the purposes for which securities may be issued under that chapter 31
are extended to include such purchases, and the amount of any securities issued
under that chapter 31 for such purpose shall be treated in the same manner as
securities issued under section 208(n)(3)(B).</text>
</paragraph></subsection><subsection id="ID9eb0a3b239794cbdad10825249db1d1c"><enum>(f)</enum><header>Rule of
construction</header><text>For purposes of this section, a guarantee of
deposits held by insured depository institutions shall not be treated as a debt
guarantee program.</text>
</subsection><subsection id="IDa1c7ed52dd11465a9892d5dda0c8298d"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="ID680fbbcd3dcd49a8bcd58ac4503da8da"><enum>(1)</enum><header>Company</header><text>The
term <term>company</term> means any entity other than a natural person that is
incorporated or organized under Federal law or the laws of any State.</text>
</paragraph><paragraph id="ID75ae39e8704e4874b0ad0c02090ae65c"><enum>(2)</enum><header>Depository
institution holding company</header><text>The term <term>depository institution
holding company</term> has the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph id="ID8f48f2f31a7f4c8393ce7ac1ecded5c8"><enum>(3)</enum><header>Liquidity
event</header><text>The term <term>liquidity event</term> means—</text>
<subparagraph id="idA5DB2EA76A1A48C3B41E1AC086486335"><enum>(A)</enum><text>a
reduction in the usual ability of financial market participants—</text>
<clause id="idF0B3BC26659D48E0957E507F13263ACF"><enum>(i)</enum><text>to sell
a type of financial asset, without a significant reduction in price; or</text>
</clause><clause id="id23DD66A3FACF428184BA254806C91CBB"><enum>(ii)</enum><text>to
borrow using that type of asset as collateral without a significant increase in
margin; or</text>
</clause></subparagraph><subparagraph id="id67F2792A69014A45B532243BD6A1F0CE"><enum>(B)</enum><text>a
significant reduction in the usual ability of financial and nonfinancial market
participants to obtain unsecured credit.</text>
</subparagraph></paragraph><paragraph id="ID7926316373c54ee2a38963e252bc9027"><enum>(4)</enum><header>Solvent</header><text>The
term <term>solvent</term> means that the value of the assets of an entity
exceed its obligations to creditors.</text>
</paragraph></subsection></section><section id="ID7d11ebec200b4166b01844d85793e9d6"><enum>1156.</enum><header>Additional
related amendments</header>
<subsection id="ID076c7c3cb9ef444f8a399694f1d0f47e"><enum>(a)</enum><header>Suspension of
parallel Federal deposit insurance Act authority</header><text>Effective upon
the date of enactment of this section, the Corporation may not exercise its
authority under section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(i)) to establish any widely available debt guarantee
program for which section 1155 would provide authority.</text>
</subsection><subsection id="ID752f5884758041609ac7287189001d20"><enum>(b)</enum><header>Mitigation</header><text>Section
13(c)(4)(G)(i) of the Federal Deposit Insurance Act (12 U.S.C.
1823(c)(4)(G)(i)) is amended by striking <quote>such effects.</quote> and
inserting <quote>such effects, provided the insured depository institution has
been placed in receivership.</quote>.</text>
</subsection><subsection id="ID2bb1d606276041298dc5a1c7d3a08ad0"><enum>(c)</enum><header>Effect of
Default on an FDIC Guarantee</header><text>If an insured depository institution
or depository institution holding company (as those terms are defined in
section 3 of the Federal Deposit Insurance Act) participating in a program
under section 1155, or any participant in a debt guarantee program established
pursuant to section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act
defaults on any obligation guaranteed by the Corporation after the date of
enactment of this Act, the Corporation shall—</text>
<paragraph id="ID347552767c164aa79e174e2fe1d911bd"><enum>(1)</enum><text>appoint itself as
receiver for the insured depository institution that defaults; and</text>
</paragraph><paragraph id="ID8c3facfb8c3a4248828919af41592b3d"><enum>(2)</enum><text>with
respect to any other participating company that is not an insured depository
institution that defaults—</text>
<subparagraph id="ID703885d5c3d043eea9996194d90537b7"><enum>(A)</enum><text>require—</text>
<clause id="idEEAD62F1B65D4C2CAFD2BB9A33964109"><enum>(i)</enum><text>consideration of
whether a determination shall be made, as provided in section 202 to resolve
the company under section 203; and</text>
</clause><clause id="IDe07c4f6e0d67456d966f376f6bfdbbb5"><enum>(ii)</enum><text>the
company to file a petition for bankruptcy under section 301 of title 11, United
States Code, if the Corporation is not appointed receiver pursuant to section
203 within 30 days of the date of default; or</text>
</clause></subparagraph><subparagraph id="ID96d0a5fefa22434f8dc2287e8c364041"><enum>(B)</enum><text>file a petition
for involuntary bankruptcy on behalf of the company under section 303 of title
11, United States Code.</text>
</subparagraph></paragraph></subsection></section><section id="ID201c00d5f8b742c69cb42e0217b9f786"><enum>1157.</enum><header>Federal
Reserve Act amendments on Federal reserve bank governance</header><text display-inline="no-display-inline">The Federal Reserve Act (12 U.S.C. 221 et
seq.) is amended in section 4 by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8FDE51CC7D0C477893A0D12075B2F0EC" style="OLC">
<paragraph id="ID8f165f271d0b4ccb945036523a0ce8ef"><enum>(25)</enum><header>Selection of
the President of the Federal reserve bank of New
York</header><text>Notwithstanding any other provision of this section, after
the date of enactment of the Restoring American Financial Stability Act of
2010, the president of the Federal Reserve Bank of New York shall be appointed
by the President, by and with the advice and consent of the Senate, for terms
of 5 years.</text>
</paragraph><paragraph id="ID7c902665902b4f0a9e1de2e53042804a"><enum>(26)</enum><header>Limitation on
eligibility to vote for or serve as a Federal reserve bank
director</header><text>Notwithstanding any other provision of this section,
after the date of enactment of the Restoring American Financial Stability Act
of 2010, no company, or subsidiary or affiliate of a company that is supervised
by the Board, may vote for members of the board of directors of a Federal
reserve bank, and no past or current officer, director, or employee of such
company, or subsidiary or affiliate of such company, may serve as a member of
the board of directors of a Federal reserve
bank.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDd9eb545a9f274402b18d8a80262c9100"><enum>1158.</enum><header>Amendments to
the Federal Reserve Act relating to supervision and regulation policy</header>
<subsection id="IDf21608c9ef85419aaba1e5e1d87146f8"><enum>(a)</enum><header>Establishment
of the position of vice chairman for supervision</header>
<paragraph id="IDdd930bc0b0ad484c81b2342aadd91137"><enum>(1)</enum><header>Position
established</header><text>The second undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 242) (relating to the Chairman and Vice
Chairman of the Board) is amended by striking the third sentence and inserting
the following: <quote>Of the persons thus appointed, 1 shall be designated by
the President, by and with the advice and consent of the Senate, to serve as
Chairman of the Board for a term of 4 years, and 2 shall be designated by the
President, by and with the advice and consent of the Senate, to serve as Vice
Chairmen of the Board, each for a term of 4 years, 1 of whom shall serve in the
absence of the Chairman, as provided in the fourth undesignated paragraph of
this section, and 1 of whom shall be designated Vice Chairman for Supervision.
The Vice Chairman for Supervision shall develop policy recommendations for the
Board regarding supervision and regulation of depository institution holding
companies and other financial firms supervised by the Board, and shall oversee
the supervision and regulation of such firms.</quote>.</text>
</paragraph><paragraph id="ID3c8d188065a24ef999ff9d02d1012671"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by subsection (a) takes effect on the
date of enactment of this title and applies to individuals who are designated
by the President on or after that date to serve as Vice Chairman of
Supervision.</text>
</paragraph></subsection><subsection id="ID815a995170184b22aa03d478342d2a79"><enum>(b)</enum><header>Financial
stability as board function</header><text>Section 10 of the Federal Reserve Act
(12 U.S.C. 241) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF0B90F511021436781B9BA469CD737AB" style="OLC">
<paragraph commented="no" id="ID1828803623c44577999c6c395263a6aa"><enum>(11)</enum><header>Financial
stability function</header><text>The Board of Governors shall identify,
measure, monitor, and mitigate risks to the financial stability of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDf4aca155e6ea440aa6c4074197203cf8"><enum>(c)</enum><header>Appearances
before congress</header><text>Section 10 of the Federal Reserve Act (12 U.S.C.
241) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4A8AEDA7611A4E5F8F047F7FFE4F4D6B" style="OLC">
<paragraph id="ID26ec7b6ae6604d8aa4d9fc81d4f3af13"><enum>(12)</enum><header>Appearances
before congress</header><text>The Vice Chairman for Supervision shall appear
before the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives and at
semi-annual hearings regarding the efforts, activities, objectives, and plans
of the Board with respect to the conduct of supervision and regulation of
depository institution holding companies and other financial firms supervised
by the
Board.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDb025cc398b8f4c5ebc757c160cfed378"><enum>(d)</enum><header>Board
responsibility To set supervision and regulatory policy</header><text>Section
11 of the Federal Reserve Act (12 U.S.C. 248) (relating to enumerated powers of
the Board) is amended by adding at the end of subsection (k) (relating to
delegation) the following: <quote>The Board of Governors may not delegate to a
Federal reserve bank its functions for the establishment of policies for the
supervision and regulation of depository institution holding companies and
other financial firms supervised by the Board of Governors.</quote>.</text>
</subsection></section><enum>XII</enum><header>Improving
access to mainstream financial institutions</header>
<section id="id95C9B8F372AD46558D7498D05084A693" section-type="section-one"><enum>1201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the
<quote>Improving Access to Mainstream Financial Institutions Act of
2010</quote>.</text>
</section><section id="idDCB8A73B64254A5BA4EF2FCC74971A93"><enum>1202.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this title is to encourage
initiatives for financial products and services that are appropriate and
accessible for millions of Americans who are not fully incorporated into the
financial mainstream.</text>
</section><section id="idFC7F7A2922CB46CA994A9B6E929092EC"><enum>1203.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="IDca8fe64ad57b492fb2be466b9cffc04b"><enum>(1)</enum><header>Account</header><text>The
term <term>account</term> means an agreement between an individual and an
eligible entity under which the individual obtains from or through the entity 1
or more banking products and services, and includes a deposit account, a
savings account (including a money market savings account), an account for a
closed-end loan, and other products or services, as the Secretary deems
appropriate.</text>
</paragraph><paragraph id="IDfb0a89d3a8414c77971292e41eb9fd2b"><enum>(2)</enum><header>Community
development financial institution</header><text>The term <term>community
development financial institution</term> has the same meaning as in section
103(5) of the Community Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702(5)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id04FC0F2908C64D5B9B2642AE4412BB01"><enum>(3)</enum><header>Eligible
entity</header><text display-inline="yes-display-inline">The term
<term>eligible entity</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDed5f59536e904b848fe261e78d2db1d0"><enum>(A)</enum><text display-inline="yes-display-inline">an organization described in section
501(c)(3) of the Internal Revenue Code of 1986, and exempt from tax under
section 501(a) of such Code;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf024ba5c4c0d4511acefa2b34592f86f"><enum>(B)</enum><text display-inline="yes-display-inline">a federally insured depository
institution;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID09c2e7fb55a249a789e4fe8b4bf24662"><enum>(C)</enum><text display-inline="yes-display-inline">a community development financial
institution;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id812A4E1644BC4EA992B1A82AC36F8B95"><enum>(D)</enum><text>a State, local,
or tribal government entity; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8581ee12b5dc420ba0253b79343a8ae8"><enum>(E)</enum><text display-inline="yes-display-inline">a partnership or other joint venture
comprised of 1 or more of the entities described in subparagraphs (A) through
(D), in accordance with regulations prescribed by the Secretary under this
title.</text>
</subparagraph></paragraph><paragraph id="ID70ef2fe03c66477f95f5aa50106a262e"><enum>(4)</enum><header>Federally
insured depository institution</header><text>The term <term>federally insured
depository institution</term> means any insured depository institution (as that
term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)) and any insured credit union (as that term is defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDce163fb48d65457d839f2bdb64077ad3"><enum>(5)</enum><header>Payday
loan</header><text display-inline="yes-display-inline">The term <quote>payday
loan</quote> means any transaction in which a small cash advance is made to a
consumer in exchange for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id41284C796F714A8DBB68A4722B7CFABC"><enum>(A)</enum><text display-inline="yes-display-inline">the personal check or share draft of the
consumer, in the amount of the advance plus a fee, where presentment or
negotiation of such check or share draft is deferred by agreement of the
parties until a designated future date; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBBD64285F7D740319AD6689E2185B170"><enum>(B)</enum><text display-inline="yes-display-inline">the authorization of the consumer to debit
the transaction account or share draft account of the consumer, in the amount
of the advance plus a fee, where such account will be debited on or after a
designated future date.</text>
</subparagraph></paragraph></section><section id="id2D1CC4D75CB042BDB1761FEBD1F7810C"><enum>1204.</enum><header>Expanded
access to mainstream financial institutions</header>
<subsection id="IDd5f30a2f535a45199475bcac792ee748"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to establish a multiyear
program of grants, cooperative agreements, financial agency agreements, and
similar contracts or undertakings to promote initiatives designed—</text>
<paragraph id="IDfb527b268d644490bf0587aaf7b04171"><enum>(1)</enum><text>to
enable low- and moderate-income individuals to establish one or more accounts
in a federally insured depository institution that are appropriate to meet the
financial needs of such individuals; and</text>
</paragraph><paragraph id="ID2c000d77c7e14db79a3ee8ebb2971f04"><enum>(2)</enum><text>to
improve access to the provision of accounts, on reasonable terms, for low- and
moderate-income individuals.</text>
</paragraph></subsection><subsection id="ID592c4b2459604fe8af2d863df6d565ec"><enum>(b)</enum><header>Program
eligibility and activities</header>
<paragraph id="ID4b77a58cf3dd43e9a1dc0f71fe5b062d"><enum>(1)</enum><header>In
general</header><text>The Secretary shall restrict participation in any program
established under subsection (a) to an eligible entity. Subject to regulations
prescribed by the Secretary under this title, 1 or more eligible entities may
participate in 1 or several programs established under subsection (a).</text>
</paragraph><paragraph id="ID9d221bec2d1445c9a24297a2531eb5a3"><enum>(2)</enum><header>Account
activities</header><text>Subject to regulations prescribed by the Secretary, an
eligible entity may, in participating in a program established under subsection
(a), offer or provide to low- and moderate-income individuals products and
services relating to accounts, including—</text>
<subparagraph id="ID83ca73f2340e42b0be18aeb2c72540bf"><enum>(A)</enum><text>small-dollar
value loans; and</text>
</subparagraph><subparagraph id="IDfc9a19e955fa439cad777db27375c03f"><enum>(B)</enum><text>financial
education and counseling relating to conducting transactions in and managing
accounts.</text>
</subparagraph></paragraph></subsection></section><section id="id4FBB1C1FBCFA447695934A68EB93C91E"><enum>1205.</enum><header>Low-cost
alternatives to payday loans</header>
<subsection commented="no" display-inline="no-display-inline" id="id7641C6944F8641DC97660F78DE687181"><enum>(a)</enum><header>Grants
authorized</header><text display-inline="yes-display-inline">The Secretary is
authorized to establish multiyear demonstration programs by means of grants,
cooperative agreements, financial agency agreements, and similar contracts or
undertakings, with eligible entities to provide low-cost, small loans to
consumers that will provide alternatives to more costly payday loans.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDb73ec85e75d5458e9201fec968966a97"><enum>(b)</enum><header>Terms and
conditions</header>
<paragraph id="ID3269172151564e11b065d31d286ef7df"><enum>(1)</enum><header>In
general</header><text>Loans under this section shall be made on terms and
conditions, and pursuant to lending practices, that are reasonable for
consumers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5DD0F5CB12304D6E86B5633835959C6B"><enum>(2)</enum><header>Financial
literacy and education opportunities</header>
<subparagraph id="ID7cd9a733fa69499183b4c90e7e5b88c9"><enum>(A)</enum><header>In
general</header><text>Each eligible entity awarded a grant under this section
shall promote and take appropriate steps to ensure the provision of financial
literacy and education opportunities, such as relevant counseling services,
educational courses, or wealth building programs, to each consumer provided
with a loan pursuant to this section.</text>
</subparagraph><subparagraph id="ID92c54c011b3044489ad14148727ba6ee"><enum>(B)</enum><header>Authority to
expand access</header><text>As part of the grants, agreements, and undertakings
established under this section, the Secretary may implement reasonable measures
or programs designed to expand access to financial literacy and education
opportunities, including relevant counseling services, educational courses, or
wealth building programs to be provided to individuals who obtain loans from
eligible entities under this section.</text>
</subparagraph></paragraph></subsection></section><section id="ID77a50a49fd4d435f994074f632f629f2"><enum>1206.</enum><header>Grants to
establish loan-loss reserve funds</header><text display-inline="no-display-inline">The Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4701 et seq.) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idEB207C6764594E46ACBCB0B8BB32185E" style="OLC">
<section id="IDdb62fb31fd57412097749ec361da8840"><enum>122.</enum><header>Grants to
establish loan-loss reserve funds</header>
<subsection id="ID5c3f471e7ca1449db188e4412e752255"><enum>(a)</enum><header>Purposes</header><text>The
purposes of this section are—</text>
<paragraph id="IDe385bc0b943f435a9230237b5014405a"><enum>(1)</enum><text>to
make financial assistance available from the Fund in order to help community
development financial institutions defray the costs of operating small dollar
loan programs, by providing the amounts necessary for such institutions to
establish their own loan loss reserve funds to mitigate some of the losses on
such small dollar loan programs; and</text>
</paragraph><paragraph id="IDb4ceb2e3949a4ae7aa38046f5185548e"><enum>(2)</enum><text>to
encourage community development financial institutions to establish and
maintain small dollar loan programs that would help give consumers access to
mainstream financial institutions and combat payday lending.</text>
</paragraph></subsection><subsection id="ID18fe4a6f66cd4f7ba296aea16c68afee"><enum>(b)</enum><header>Grants</header>
<paragraph id="ID516dc66c83b347d3a6240ca5b79f63e3"><enum>(1)</enum><header>Loan-loss
reserve fund grants</header><text>The Fund shall make grants to community
development financial institutions or to any partnership between such community
development financial institutions and any other federally insured depository
institution with a primary mission to serve targeted investment areas, as such
areas are defined under section 103(16), to enable such institutions or any
partnership of such institutions to establish a loan-loss reserve fund in order
to defray the costs of a small dollar loan program established or maintained by
such institution.</text>
</paragraph><paragraph id="IDcc29e7f841e9490e9379b45be84cbb3a"><enum>(2)</enum><header>Matching
requirement</header><text>A community development financial institution or any
partnership of institutions established pursuant to paragraph (1) shall provide
non-Federal matching funds in an amount equal to 50 percent of the amount of
any grant received under this section.</text>
</paragraph><paragraph id="ID403720e7222d4c96bea85f1fcd0024e3"><enum>(3)</enum><header>Use of
funds</header><text>Any grant amounts received by a community development
financial institution or any partnership between or among such institutions
under paragraph (1)—</text>
<subparagraph id="ID3d6c769beec6450ebf91b23dbf160b78"><enum>(A)</enum><text>may not be used
by such institution to provide direct loans to consumers;</text>
</subparagraph><subparagraph id="ID5a636be93da346c796c54cbcfb4870ad"><enum>(B)</enum><text>may be used by
such institution to help recapture a portion or all of a defaulted loan made
under the small dollar loan program of such institution; and</text>
</subparagraph><subparagraph id="IDc39aef2c83e049f69f2dd0dc0b541793"><enum>(C)</enum><text>may be used to
designate and utilize a fiscal agent for services normally provided by such an
agent.</text>
</subparagraph></paragraph><paragraph id="IDe551d0f0e6ef48eca7f60cf58d53e3c9"><enum>(4)</enum><header>Technical
assistance grants</header><text>The Fund shall make technical assistance grants
to community development financial institutions or any partnership between or
among such institutions to support and maintain a small dollar loan program.
Any grant amounts received under this paragraph may be used for technology,
staff support, and other costs associated with establishing a small dollar loan
program.</text>
</paragraph></subsection><subsection id="ID8993c05f8f5c42c782ca47e83a9aad8b"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="IDd5944e4bcf0f43148ba144c15e907c6b"><enum>(1)</enum><text>the term
<term>consumer reporting agency that compiles and maintains files on consumers
on a nationwide basis</term> has the same meaning given such term in section
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); and</text>
</paragraph><paragraph id="ID32f96c5e037b489b9f4404615e4a1bb0"><enum>(2)</enum><text>the term
<term>small dollar loan program</term> means a loan program wherein a community
development financial institution or any partnership between or among such
institutions offers loans to consumers that—</text>
<subparagraph id="ID4ed1603b15a3478097c197117193cff1"><enum>(A)</enum><text>are made in
amounts not exceeding $2,500;</text>
</subparagraph><subparagraph id="IDad18ebcb9d7f491b92de0430a3cdbc01"><enum>(B)</enum><text>must be repaid in
installments;</text>
</subparagraph><subparagraph id="IDf7277d1c71f0451883a687d41c96169e"><enum>(C)</enum><text>have no
pre-payment penalty;</text>
</subparagraph><subparagraph id="ID4333da9887fb4a71b2d63efbe1bde041"><enum>(D)</enum><text>the institution
has to report payments regarding the loan to at least 1 of the consumer
reporting agencies that compiles and maintains files on consumers on a
nationwide basis; and</text>
</subparagraph><subparagraph id="IDa0ac9bd6790947cc9202279b7a060b06"><enum>(E)</enum><text>meet any other
affordability requirements as may be established by the
Administrator.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id68EDD4AC681F4ADEAE1C9A855CFADCEA"><enum>1207.</enum><header>Procedural
provisions</header><text display-inline="no-display-inline">An eligible entity
desiring to participate in a program or obtain a grant under this title shall
submit an application to the Secretary, in such form and containing such
information as the Secretary may require.</text>
</section><section id="ID90729ff92f63438897d2378302f260ce"><enum>1208.</enum><header>Authorization
of appropriations</header>
<subsection id="id037E756AC16C46139303EECA168FB2E7"><enum>(a)</enum><header>Authorization
to the Secretary</header><text>There are authorized to be appropriated to the
Secretary, such sums as are necessary to both administer and fund the programs
and projects authorized by this title, to remain available until
expended.</text>
</subsection><subsection id="idD6D2AF44AA0F4DE9A778F0D1F33A87C6"><enum>(b)</enum><header>Authorization
to the fund</header><text>There is authorized to be appropriated to the Fund
for each fiscal year beginning in fiscal year 2010, an amount equal to the
amount of the administrative costs of the Fund for the operation of the grant
program established under this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDfe20938f79cf408590074604ffd7096b" section-type="subsequent-section"><enum>1209.</enum><header>Regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="id0681051F3CFD4C03B1309C0711F8E2BA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary is
authorized to promulgate regulations to implement and administer the grant
programs and undertakings authorized by this title.</text>
</subsection><subsection id="ID051aa05a9b7b42f79bb94992c7d0e6bb"><enum>(b)</enum><header>Regulatory
authority</header><text>Regulations prescribed under this section may contain
such classifications, differentiations, or other provisions, and may provide
for such adjustments and exceptions for any class of grant programs,
undertakings, or eligible entities, as, in the judgment of the Secretary, are
necessary or proper to effectuate the purposes of this title, to prevent
circumvention or evasion of this title, or to facilitate compliance with this
title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID36bcec0a12554bcb9cce6ef90f6fb93d" section-type="subsequent-section"><enum>1210.</enum><header>Evaluation and
reports to Congress</header><text display-inline="no-display-inline">For each
fiscal year in which a program or project is carried out under this Title, the
Secretary shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives containing a description of the activities funded, amounts
distributed, and measurable results, as appropriate and available.</text>
</section>