[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5335 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5335
To amend the Federal Financial Institutions Examination Council Act of
1978 to provide for fair audits and inspections for examinations.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2026
Mr. Moran (for himself and Mr. Hagerty) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Federal Financial Institutions Examination Council Act of
1978 to provide for fair audits and inspections for examinations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Audits and Inspections for
Regulators' Exams Act''.
SEC. 2. FAIR AUDITS AND INSPECTIONS FOR REGULATORS' EXAMS.
(a) Timeliness of Examinations and Examination Reports.--The
Federal Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3301 et seq.) is amended by adding at the end the following:
``SEC. 1012. TIMELINESS OF EXAMINATIONS AND EXAMINATION REPORTS.
``(a) Timeliness of Examinations.--A Federal financial institutions
regulatory agency shall complete any examination of a financial
institution, other than a financial institution subject to a continuous
or resident examination program, within 270 days of commencing the
examination, except that such period may be extended by the Federal
financial institutions regulatory agency by providing written notice to
the financial institution describing with particularity the reasons
that a longer period is needed.
``(b) Final Examination Report.--A Federal financial institutions
regulatory agency shall provide a final examination report to a
financial institution, other than a financial institution subject to a
continuous or resident examination program, not later than 90 days
after the later of--
``(1) the exit interview for an examination of the
institution; or
``(2) the provision of additional material information by
the institution relating to the examination.
``(c) Exit Interview Requirement.--Not later than 30 days after
completing an examination for a financial institution not subject to a
continuous or resident examination program, a Federal financial
institutions regulatory agency shall conduct an exit interview with the
senior management or the board of directors of the financial
institution, except that such period may be extended by the Federal
financial institutions regulatory agency by providing written notice to
the institution describing with particularity the reasons that a longer
period is needed.
``(d) Examination Materials.--Upon the written request of a
financial institution, the Federal financial institutions regulatory
agency shall include with the final report an appendix listing all
examination or other factual information relied upon by the agency in
support of a material supervisory determination.''.
(b) Timeliness of Required Prudential Private Letter Rulings.--The
Federal Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3301 et seq.), as amended by subsection (a), is amended by
adding at the end the following:
``SEC. 1013. TIMELINESS OF REQUIRED PRUDENTIAL PRIVATE LETTER RULINGS.
``(a) Authority and Regulation.--
``(1) Definitions.--In this subsection:
``(A) Covered action.--The term `covered action'
means--
``(i) any action in connection with a
regulated activity that the covered financial
institution is taking or is intending to take,
including--
``(I) entering into a transaction;
``(II) issuing a product or
service; or
``(III) changing the corporate
structure of the covered financial
institution; and
``(ii) an objection by a Federal financial
institutions regulatory agency to the covered
financial institution commencing or otherwise
conducting an activity (including an action
described in subparagraph (A)).
``(B) Covered financial institution.--The term
`covered financial institution' means any entity
subject to the examination or supervisory authority of
a Federal financial institutions regulatory agency.
``(2) Procedures.--Each Federal financial institutions
regulatory agency shall establish procedures providing that a
covered financial institution may, upon application by the
covered financial institution and with respect to a covered
action, obtain written advice regarding--
``(A) the nonobjection of the agency to the
financial institution conducting a particular activity;
``(B) the interpretation by the agency of a law or
regulation as applied to a particular matter;
``(C) the interpretation by the agency of how
generally accepted accounting principles or accounting
objectives, standards, and requirements apply to a
particular matter; or
``(D) the application by the agency of any
supervisory guidance, statement of policy, or
interpretive rule to a particular matter.
``(b) Contents of Request.--The procedures established under
subsection (a) shall provide that a request for written advice made
under the procedures shall be in writing and contain--
``(1) the nature of the request;
``(2) applicable facts relating to the matter;
``(3) applicable law, regulations, or generally accepted
accounting principles relating to the matter; and
``(4) a summary of the request.
``(c) Response To Request.--A Federal financial institutions
regulatory agency receiving a request for written advice under
subsection (a) shall, not later than 30 days after receiving the
request--
``(1) provide the financial institution making the request
with written notification confirming receipt of the request and
stating whether the request contains all of the information
required under subsection (b); and
``(2) if the request does not contain all of the
information required under subsection (b)--
``(A) provide the financial institution with an
explanation of what information is missing; and
``(B) notify the financial institution that the
financial institution may provide the missing
information to the agency within 30 days.
``(d) Providing Missing Information.--If a Federal financial
institutions regulatory agency informs the financial institution under
subsection (c) that the request for written advice does not contain all
the information required under subsection (b), the financial
institution may provide the missing information to the Federal
financial institutions regulatory agency not later than 30 days after
the date the financial institution receives the explanation of the
missing information under subsection (c).
``(e) Determination.--A Federal financial institutions regulatory
agency receiving a request for written advice under the procedures
established under subsection (a) shall provide the financial
institution with a written response (or, for purposes of paragraph (3),
notify the financial institution that a determination cannot be made)--
``(1) if the initial request contains the information
required under subsection (b), not later than the end of the
60-day period beginning on the date the Federal financial
institutions regulatory agency notifies the financial
institution of the receipt of the request under subsection (c);
``(2) if the initial request does not contain the
information required under subsection (b), but the financial
institution provides the missing information during the 30-day
period described under subsection (d), not later than the end
of the 60-day period beginning on the date such missing
information is provided; or
``(3) if the initial request does not contain the
information required under subsection (b), and the financial
institution does not provide the missing information during the
30-day period described under subsection (d), not later than
the end of the 60-day period beginning on the end of such 30-
day period.
``(f) Limited Binding Effect.--Written advice issued by a Federal
financial institutions regulatory agency under the procedures
established under this section--
``(1) shall be binding on the agency with respect to the
financial institution requesting the written advice and the
specific facts described in the request;
``(2) may be relied upon by the financial institution
requesting the written advice in good faith; and
``(3) shall not--
``(A) be binding on the agency with respect to any
other person or institution; and
``(B) be treated as precedent.
``(g) Confidentiality and Privilege.--
``(1) Treatment of written advice.--Written advice issued
under this section, and any materials submitted in connection
therewith, and the fact that a request for written advice was
made shall be treated as confidential supervisory information
and exempt from disclosure under section 552(b) of title 5,
United States Code.
``(2) Publishing of anonymized or redacted summaries.--A
Federal financial institutions regulatory agency may publish
anonymized or redacted summaries of rulings for informational
purposes.
``(h) Modification or Revocation.--A Federal financial institutions
regulatory agency may modify or revoke written advice issued under this
section only if--
``(1) the requesting financial institution made a material
misstatement or omission of fact;
``(2) there has been a change in controlling law; or
``(3) the ruling is inconsistent with a final rule or
judicial decision issued after the date the written advice was
issued.
``(i) Reasonable Fees.--
``(1) In general.--Each Federal financial institutions
regulatory agency may establish and collect a reasonable fee
for the processing and issuance of any written advice issued
under this section.
``(2) Requirements.--Any fee established under paragraph
(1)--
``(A) shall be based on the estimated cost to the
agency of reviewing, analyzing, and responding to the
request;
``(B) may vary based on the complexity of the
request or the size of the requesting institution; and
``(C) shall be prescribed by regulation.
``(j) Finality.--Written advice issued under the procedures
established under this section shall not be construed as a final agency
action.''.
(c) Office of Independent Examination Review.--
(1) In general.--The Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as
amended by subsection (b), is amended by adding at the end the
following:
``SEC. 1014. OFFICE OF INDEPENDENT EXAMINATION REVIEW.
``(a) Establishment.--There is established in the Council an Office
of Independent Examination Review (referred to in this section as the
`Office').
``(b) Board of Independent Examination Review.--
``(1) In general.--The head of the Office shall be the
Board of Independent Examination Review, which shall be
comprised of 3 members, appointed by the President, by and with
the advice and consent of the Senate.
``(2) Qualifications.--The President shall appoint 1 member
of the Board from each of the following classes of individuals:
``(A) Individuals who have been employed by a
Federal financial institutions regulatory agency.
``(B) Individuals who--
``(i) are not, and were not during the
previous 5-year period, employed by a Federal
financial institutions regulatory agency or a
Federal reserve bank; and
``(ii)(I) are a licensed attorney or a
certified public accountant authorized to
practice under the laws of a State, the
District of Columbia, or a territory of the
United States;
``(II) have academic or private sector
experience relating to financial services; or
``(III) have relevant work-related
experience in consumer affairs or compliance
with consumer protection laws with respect to
financial institutions.
``(C) Individuals with at least 10 years private
sector financial services senior management-level
experience.
``(3) Prohibition on certain individuals serving as a board
member.--The President may not appoint an individual as a
member of the Board if the individual--
``(A) is, or was during the previous 2-year period,
employed by a Federal financial institutions regulatory
agency or a Federal reserve bank; or
``(B) is, or was during the previous 2-year period,
employed by a financial institution.
``(4) Consultation.--In appointing members of the Board,
the President shall consult with the Federal financial
institutions regulatory agencies and financial institutions.
``(5) Term.--
``(A) In general.--Each member of the Board shall
serve for a term of 3 years. Upon the expiration of a
term of office of the member, the member shall continue
to serve until the successor of the member has been
confirmed by the Senate.
``(B) Term limitation.--No individual may serve
more than 2 full terms on the Board.
``(6) Political affiliation.--Not more than 2 members of
the Board shall be members of the same political party.
``(7) Quorum.--
``(A) In general.--Three members of the Board shall
constitute a quorum.
``(B) Initial quorum.--During the 6-month period
beginning on the date of enactment of this section, 1
member of the Board shall constitute a quorum until the
Board has 3 members.
``(8) Rate of pay.--The annual rate of basic pay for the
members of the Board shall be the rate of basic pay for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code.
``(c) Staffing.--
``(1) In general.--The Board is authorized to hire staff to
support the activities of the Office and set the salaries of
such staff.
``(2) Costs and expenses.--
``(A) In general.--One-fifth of the costs and
expenses of the Office, including the salaries of its
employees, shall be paid by each of the Federal
financial institutions regulatory agencies.
``(B) Assessments.--Annual assessments for the
share described in subparagraph (A) shall be levied by
the Council based upon its projected budget for the
year, and additional assessments may be made during the
year if necessary.
``(d) Duties.--The Board shall--
``(1) receive and, at the discretion of the Board,
investigate complaints from financial institutions, their
representatives, or another entity acting on behalf of the
institutions, concerning completed examinations, examination
practices, or examination reports;
``(2) hold meetings, at least once every 3 months and in
locations designed to encourage participation from all sections
of the United States, with financial institutions, their
representatives, or another entity acting on behalf of the
institutions, to discuss examination procedures, examination
practices, or examination policies;
``(3) review examination procedures of the Federal
financial institutions regulatory agencies to ensure that the
written examination policies of those agencies are being
followed in practice and adhere to the standards for
consistency;
``(4) conduct a continuing and regular program of
examination quality assurance on a sample for all examination
types conducted by the Federal financial institutions
regulatory agencies;
``(5) carry out an independent review of any supervisory
appeal initiated under section 1015; and
``(6) report annually to the Committee on Financial
Services of the House of Representatives, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Council, on the reviews carried out pursuant to paragraphs (3)
and (5), including compliance with the requirements set forth
in section 1012 regarding timeliness of examination reports,
and the recommendations of the Board for improvements in
examination procedures, practices, and policies.
``(e) Confidentiality.--
``(1) In general.--The Board and the Council shall keep
confidential--
``(A) all meetings, discussions, and information
provided by financial institutions and Federal
financial institutions regulatory agencies that involve
confidential supervisory information or privileged
information;
``(B) all information and communications exchanged
between a financial institution and the Office; and
``(C) all information and communications exchanged
between a Federal financial institutions regulatory
agency and the Office.
``(2) Submission of information does not constitute a
waiver.--Section 18(x) of the Federal Deposit Insurance Act (12
U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union
Act (12 U.S.C. 1785(j)) shall apply to the submission of
information to the Board by a financial institution or a
Federal financial institutions regulatory agency to the same
extent as those sections apply to the submission of information
described in those sections.
``(3) Sharing of information without waiving privilege.--
The Board shall be considered a covered agency for purposes of
section 11(t) of the Federal Deposit Insurance Act (12 U.S.C.
1821(t)).''.
(2) Definitions.--Section 1003 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3302)
is amended--
(A) in paragraph (2), by striking ``and'' at the
end; and
(B) by adding at the end the following:
``(4) the term `Board' means the Board of Independent
Examination Review established under section 1014(b);
``(5) the term `material supervisory determination' has the
meaning given the term in section 309(f) of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4806(f));
``(6) the term `insured depository institution' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
``(7) the term `insured credit union' has the meaning given
the term in section 101 of the Federal Credit Union Act (12
U.S.C. 1752).''.
(d) Right to Independent Review of Material Supervisory
Determinations.--The Federal Financial Institutions Examination Council
Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (c), is
amended by adding at the end the following:
``SEC. 1015. RIGHT TO INDEPENDENT REVIEW OF MATERIAL SUPERVISORY
DETERMINATIONS.
``(a) In General.--A financial institution shall have the right to
obtain an independent review of a material supervisory determination
contained in a final report of examination. A Federal financial
institutions regulatory agency and the Board may not conduct concurrent
reviews.
``(b) Notice.--
``(1) Timing.--A financial institution seeking review of a
material supervisory determination under this section shall
file a written notice with the Board not later than 30 days
after receiving the final report of examination that is the
subject of the review.
``(2) Extension.--The institution may file a written
request with the Board for an extension of the 60-day time
period described under paragraph (1), which shall state good
cause for granting the extension. Such request shall be granted
in the sole discretion of the Board.
``(3) Identification of determination.--The written notice
shall--
``(A) identify the material supervisory
determination that is the subject of the requested
independent examination review;
``(B) state the reasons why the institution
believes that the material supervisory determination is
incorrect or should otherwise be modified; and
``(C) include--
``(i) a clear and complete statement of all
relevant facts and issues;
``(ii) all arguments that the institution
wishes to present; and
``(iii) all relevant and material documents
in the possession of the institution that the
institution wishes to be considered.
``(4) Information made available to institution.--A
financial institution seeking a review of a material
supervisory determination may, not later than 7 days after
receiving the final examination report, request that the
Federal financial institutions regulatory agency that made the
material supervisory determination provide the financial
institution with all examination and factual information relied
upon by the Federal financial institutions regulatory agency in
making the material supervisory determination. The Federal
financial institutions regulatory agency shall provide such
information to the financial institution not later than 14 days
after receiving the request.
``(5) Submission of record.--After receiving a written
notice of review from a financial institution under this
subsection, the Board shall direct the Federal financial
institutions regulatory agency that made the material
supervisory determination under review to file with the Board
the supervisory record of the examination resulting in the
material supervisory determination under review.
``(c) Determination; Right to Hearing.--
``(1) In general.--The Board shall--
``(A) determine the merits on the record, including
whether the material supervisory determination being
reviewed should be upheld, canceled, or modified; or
``(B) at the election of the financial institution,
conduct a hearing, which shall take place not later
than 60 days after the petition for review is received
by the Board, except that such 60-day period may be
extended if both the financial institution and the
Board agree to such extension.
``(2) Right to obtain testimony.--A financial institution
electing for a hearing under paragraph (1)(B) shall have the
right the obtain testimony under oath from agency employees and
obtain documents and other evidence at the hearing, or in
advance of the hearing, according to procedures instituted by
the Board consistent with those set forth under sections 556
and 557 of title 5, United States Code.
``(3) Basis of decision.--The Board shall issue a written
decision based upon the record of the examination, supplemented
by the record established before the Board and at any hearing.
``(4) Standard of review.--The review by the Board of a
material supervisory determination under this subsection shall
be de novo, and the Board shall not defer to the opinions of
the examiners or the Federal financial institutions regulatory
agency, but shall independently determine the appropriateness
of the material supervisory determination based upon the
relevant statutes, regulations, other appropriate guidance, and
the evidentiary record.
``(5) Policy matters.--The Board shall conduct reviews
under this section applying the policies, regulations, and
interpretations of the Federal financial institutions
regulatory agency that made the material supervisory
determination under review in effect at the time the material
supervisory determination was made.
``(d) Final Decision.--A decision by the Board on an independent
review under this section shall--
``(1) be made not later than 60 days after the record has
been closed; and
``(2) be deemed final and shall bind the agency whose
supervisory determination was the subject of the review and the
financial institution requesting the review.
``(e) Referral of Violations.--If the Board, in carrying out this
section, determines that a financial institution has violated a law or
regulation, the Board shall refer such determination to the applicable
Federal financial institutions regulatory agency.
``(f) Annual Report.--
``(1) In general.--The Board shall report annually to the
Committee on Financial Services of the House of
Representatives, the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Council on actions taken under
this section, including the types of issues that the Board has
reviewed and the results of those reviews, including
information on each final determination with respect to a
material supervisory determination.
``(2) Confidentiality.--In reporting under paragraph (1),
the Board shall--
``(A) redact information about individual financial
institutions and any confidential supervisory
information or privileged information shared by
financial institutions; and
``(B) anonymize any unredacted information that
could, in the aggregate, identify a financial
institution.
``(g) Retaliation Prohibited.--
``(1) In general.--A Federal financial institutions
regulatory agency may not--
``(A) retaliate against a financial institution,
including service providers, or any institution-
affiliated party, for exercising rights under this
section; or
``(B) delay or deny any agency action that would
benefit a financial institution or any institution-
affiliated party on the basis that a review under this
section is pending under this section.
``(2) Retaliation.--For purposes of this subsection,
retaliation includes delaying consideration of, or withholding
approval of, any request, notice, or application that otherwise
would have been approved, but for the exercise of rights of a
financial institution under this section.
``(h) Rulemaking.--The Board shall issue rules, consistent with
subchapter II of chapter 5 of title 5, United States Code (commonly
known as the `Administrative Procedure Act'), to establish procedures
for hearings described under this section, including that--
``(1) a financial institution may appear at the hearing
personally or through counsel;
``(2) a financial institution may provide an oral and
written presentation at the hearing;
``(3) the Board may ask questions of any person
participating in the hearing;
``(4) the hearing shall not be governed by the Federal
Rules of Evidence; and
``(5) the Board shall have a verbatim transcript of the
hearing prepared.
``(i) Rule of Construction.--Nothing in this section may be
construed--
``(1) to affect the right of a Federal financial
institutions regulatory agency to take enforcement or other
supervisory actions related to a material supervisory
determination under review under this section; or
``(2) to prohibit the review under this section of a
material supervisory determination with respect to which there
is an ongoing enforcement or other supervisory action.''.
(e) Additional Amendments.--
(1) Regulatory appeals process, ombudsman, and alternative
dispute resolution.--
(A) In general.--Section 309 of the Riegle
Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4806) is amended--
(i) in the heading, by striking
``regulatory appeals process, ombudsman,'' and
inserting ``ombudsman'';
(ii) by striking subsections (a), (b), and
(c);
(iii) by redesignating subsections (d),
(e), (f), and (g) as subsections (a), (b), (c),
and (d), respectively;
(iv) in subsection (b), as so
redesignated--
(I) in paragraph (2)--
(aa) in subparagraph (B),
by striking ``and'' at the end;
(bb) in subparagraph (C),
by striking the period and
inserting ``; and''; and
(cc) by adding at the end
the following:
``(D) ensure that appropriate safeguards exist for
protecting any party from retaliation by any agency for
exercising rights under this subsection.''; and
(II) by adding at the end the
following:
``(6) Retaliation.--For purposes of this subsection,
retaliation includes delaying consideration of, or withholding
approval of, any request, notice, or application that otherwise
would have been approved, but for the exercise of rights under
this section.'';
(v) in paragraph (1)(A) of subsection (c),
as so redesignated--
(I) in clause (ii), by striking ``;
and'' and inserting a semicolon;
(II) in clause (iii), by striking
``; and'' and inserting a semicolon;
and
(III) by adding at the end the
following:
``(iv) any issue specifically listed in an
exam report as a matter requiring attention by
the management or board of directors of an
institution; and
``(v) any suspension or removal of the
status of an institution as eligible for
expedited processing of applications, requests,
notices, or filings on the grounds of a
supervisory or compliance concern, regardless
of whether that concern has been cited in an
examination report or matter requiring
attention in an examination report, if the
conduct at issue did not involve violation of
any criminal law; and''; and
(vi) in the table of contents, by striking
the item relating to section 309 and inserting
the following:
``Sec. 309. Ombudsman, and alternative dispute resolution.''.
(B) Technical and conforming amendment.--Section
216(k) of the Federal Credit Union Act (12 U.S.C.
1790d(k)) is amended by striking ``the independent
appellate process required by section 309 of the Riegle
Community Development and Regulatory Improvement Act of
1994'' and inserting ``section 1015 of the Federal
Financial Institutions Examination Council Act of
1978''.
(C) Effect.--
(i) Definition.--In this subparagraph, the
term ``Federal banking agency''--
(I) has the meaning given the term
in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
(II) includes--
(aa) the National Credit
Union Administration; and
(bb) the Bureau of Consumer
Financial Protection.
(ii) Authority.--Nothing in this subsection
affects the authority of a Federal banking
agency to take enforcement or other supervisory
action.
(2) Federal credit union act.--Section 205(j) of the
Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by
inserting ``the Bureau of Consumer Financial Protection,''
before ``the Administration'' each place that term appears.
(3) Federal financial institutions examination council
act.--The Federal Financial Institutions Examination Council
Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
(A) in section 1003 (12 U.S.C. 3302)--
(i) by striking paragraph (1) and inserting
the following:
``(1) the term `Federal financial institutions regulatory
agencies'--
``(A) means the Office of the Comptroller of the
Currency, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and
the National Credit Union Administration; and
``(B) includes the Bureau of Consumer Financial
Protection for purposes of sections 1012 through
1015;''; and
(ii) in paragraph (3), by striking the
semicolon at the end and inserting ``, except
that for purposes of sections 1012 through
1015, the term `financial institution' does not
include a credit union that is not an insured
credit union;'';
(B) in section 1004(a)(4) (12 U.S.C. 3303), by
striking ``Consumer Financial Protection Bureau'' and
inserting ``Bureau of Consumer Financial Protection'';
and
(C) in section 1005 (12 U.S.C. 3304)--
(i) by striking ``One-fifth'' and inserting
``One-fourth''; and
(ii) by inserting ``described under section
1003(1)(A)'' after ``agencies''.
(f) Election of Forum for Review of Supervisory Enforcement.--
(1) Federal deposit insurance act.--Section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818) is amended--
(A) in subsection (b), by adding at the end the
following:
``(11) Hearing.--With respect to any notice properly issued
and served upon a depository institution or institution-
affiliated party under this subsection, such depository
institution or institution-affiliated party shall be afforded a
hearing before--
``(A) the appropriate Federal banking agency; or
``(B) if such institution or person submits a
request not later than 20 days after the issuance of
the notice, the appropriate district court of the
United States, which shall have jurisdiction to
adjudicate all claims and requested remedies stated in
the notice of charges, including those authorized under
this subsection.'';
(B) in subsection (e), by adding at the end the
following:
``(8) Hearing.--With respect to any notice properly issued
and served upon an institution-affiliated party under this
subsection, such institution-affiliated party shall be afforded
a hearing before--
``(A) the appropriate Federal banking agency; or
``(B) if such party submits a request for such
hearing and forum not later than 20 days after the
issuance of the notice, the appropriate district court
of the United States, which shall have jurisdiction to
adjudicate all claims and requested remedies stated in
the notice, including those authorized under this
subsection.'';
(C) in subsection (h)--
(i) in paragraph (1), by striking ``(other
than the hearing provided for in subsection
(g)(3) of this section)'' and inserting
``(other than the hearing provided for in
subsection (b)(11)(B), (e)(8)(B), (g)(3), or
(i)(2)(H)(ii))''; and
(ii) by adding at the end the following:
``(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B),
or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and
equitable authority of the district court and be governed by the
Federal Rules of Civil Procedure and the Federal Rules of Evidence.
``(5) Any final decision of a district court of the United States
made pursuant to the election of a respondent under subsection
(b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the
appropriate court of appeals of the United States in the same manner
and to the same extent as any other civil action to which the United
States is a party.'';
(D) in subsection (i)(2)--
(i) by amending subparagraph (E)(ii) to
read as follows:
``(ii) Finality of assessment.--If, with
respect to any assessment under clause (i), a
hearing is not requested or an election is not
made and timely noticed pursuant to
subparagraph (H) within the period of time
allowed under such subparagraph, the assessment
shall constitute a final and unappealable
order.'';
(ii) by amending subparagraph (H) to read
as follows:
``(H) Hearing.--The insured depository institution
or institution-affiliated party against whom any
penalty is assessed under this paragraph shall be
afforded a hearing before--
``(i) an agency, if such institution or
person submits a request for such hearing not
later than 20 days after the issuance of the
notice of assessment; or
``(ii) the appropriate district court of
the United States, if such institution or
person submits a request for such hearing and
forum not later than 20 days after the issuance
of the notice of assessment.''; and
(iii) by amending subparagraph (I)(ii) to
read as follows:
``(ii) Appropriateness of penalty not
reviewable.--In any civil action under clause
(i), except a civil action tried in a district
court of the United States pursuant to
subsection (b)(11)(B), (e)(8)(B), or
(i)(2)(H)(ii), the validity and appropriateness
of the penalty shall not be subject to
review.''; and
(E) by adding at the end the following:
``(x) Savings Clause.--Nothing in subsection (b)(11)(B), (e)(8)(B),
or (i)(2)(H)(ii) shall be construed to--
``(1) limit the authority of a Federal banking agency to
initiate an administrative enforcement action; or
``(2) impair the validity of any consent order.''.
(2) Federal credit union act.--Section 206 of the Federal
Credit Union Act (12 U.S.C. 1786) is amended--
(A) in subsection (e), by adding at the end the
following:
``(5) Hearing.--With respect to any notice properly issued
and served upon an insured credit union, credit union which has
insured accounts, or an institution-affiliated party under this
subsection, such insured credit union, credit union which has
insured accounts, or institution-affiliated party shall be
afforded a hearing before--
``(A) the Administration; or
``(B) if such insured credit union, credit union
which has insured accounts, or institution-affiliated
party submits a request not later than 20 days after
the issuance of the notice, the appropriate district
court of the United States, which shall have
jurisdiction to adjudicate all claims and requested
remedies stated in the notice of charges, including
those authorized under this subsection.'';
(B) in subsection (g), by adding at the end the
following:
``(8) Hearing.--With respect to any notice properly issued
and served upon an institution-affiliated party under this
subsection, such institution-affiliated party shall be afforded
a hearing before--
``(A) the Administration; or
``(B) if such institution-affiliated party submits
a request not later than 20 days after the issuance of
the notice, the appropriate district court of the
United States, which shall have jurisdiction to
adjudicate all claims and requested remedies stated in
the notice of charges, including those authorized under
this subsection.'';
(C) in subsection (j)--
(i) in paragraph (1), by striking ``(other
than the hearing provided for in subsection
(i)(3) of this section)'' and inserting
``(other than the hearing provided for in
subsection (e)(5)(B), (g)(8)(B), (i)(3), or
(k)(2)(H)(ii))''; and
(ii) by adding at the end the following:
``(4) Any hearing provided for in subsection (e)(5)(B), (g)(8)(B),
(i)(3), or (k)(2)(H)(ii) shall be subject to the jurisdiction, powers,
and equitable authority of the district court and be governed by the
Federal Rules of Civil Procedure and the Federal Rules of Evidence.
``(5) Any final decision of a district court of the United States
made pursuant to the election of a respondent under subsection
(e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be reviewable in
the appropriate court of appeals of the United States in the same
manner and to the same extent as any other civil action to which the
United States is a party.'';
(D) in subsection (k)(2)--
(i) by amending subparagraph (E)(ii) to
read as follows:
``(ii) Finality of assessment.--If, with
respect to any assessment under clause (i), a
hearing is not requested or an election is not
made and timely noticed pursuant to
subparagraph (H) within the period of time
allowed under such subparagraph, the assessment
shall constitute a final and unappealable
order.'';
(ii) by amending subparagraph (H) to read
as follows:
``(H) Hearing.--The insured credit union or
institution-affiliated party against whom any penalty
is assessed under this paragraph shall be afforded a
hearing before--
``(i) the Administration, if such insured
credit union or institution-affiliated party
submits a request for such hearing not later
than 20 days after the issuance of the notice
of assessment; or
``(ii) the appropriate United States
district court, if such insured credit union or
institution-affiliated party submits a request
for such hearing and forum not later than 20
days after the issuance of the notice of
assessment.''; and
(iii) by amending subparagraph (I)(ii) to
read as follows:
``(ii) Appropriateness of penalty not
reviewable.--In any civil action under clause
(i), except a civil action tried in a district
court of the United States pursuant to
subsection (e)(5)(B), (g)(8)(B), or
(k)(2)(H)(ii), the validity and appropriateness
of the penalty shall not be subject to
review.''; and
(E) by adding at the end the following:
``(x) Savings Clause.--Nothing in subsection (e)(5)(B), (g)(8)(B),
or (k)(2)(H)(ii) shall be construed to--
``(1) limit the authority of the Administration to initiate
an administrative enforcement action; or
``(2) impair the validity of any consent order.''.
<all>