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8000 - Miscellaneous Statutes and Regulations


FOOD SECURITY ACT OF 1985

An Act to extend and revise agricultural price support and related programs, to provide for agricultural export, resource conservation, farm credit, and agricultural research and related programs, to continue food assistance to low-income persons, to ensure consumers an abundance of food and fiber at reasonable prices, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1.  This Act may be cited as the "Food Security Act of 1985".

PROTECTION FOR PURCHASERS OF FARM PRODUCTS

Sec. 1324.  (a)  Congress finds that--

(1)  certain State laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender's security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender;

(2)  these laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender;

(3)  the exposure of purchasers of farm products to double payment inhibits free competition in the market for farm products; and

(4)  this exposure constitutes a burden on and an obstruction to interstate commerce in farm products.

(b)  The purpose of this section is to remove such burden on and obstruction to interstate commerce in farm products.

(c)  For the purposes of this section--

(1)  The term "buyer in the ordinary course of business" means a person who, in the ordinary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products.

(2)  The term "central filing system" means a system for filing effective financing statements or notice of such financing statements on a statewide basis and which has been certified by the Secretary of the United States Department of Agriculture; the Secretary shall certify such system if the system complies with the requirements of this section; specifically under such system--

(A)  effective financing statements or notice of such financing statements are filed with the office of the Secretary of State of a State;

(B)  the Secretary of State records the date and hour of the filing of such statements;

(C)  the Secretary of State compiles all such statements into a master list--

(i)  organized according to farm products;

(ii)  arranged within each such product--

(I)  in alphabetical order according to the last name of the individual debtors, or, in the case of debtors doing business other than as individuals, the first word in the name of such debtors; and

(II)  in numerical order according to the social security number of the individual debtors or, in the case of debtors doing business other than as individuals, the Internal Revenue Service taxpayer identification number of such debtors except that the numerical list containing social security or tax payer identification numbers may be encrypted for security purposes if the Secretary of the State provides a method by which an effective search of the encrypted numbers may be conducted to determine whether the farm product at issue is subject to 1 or more liens; and

(III)  geographically by county or parish; and

(IV)  by crop year;

(iii)  containing the information referred to in paragraph (4)(D);

(D)  the Secretary of State maintains a list of all buyers of farm products, commission merchants, and selling agents who register with the Secretary of State, on a form indicating--

(i)  the name and address of each buyer, commission merchant and selling agent;

(ii)  the interest of each buyer, commission merchant, and selling agent in receiving the lists described in subparagraph (E); and

(iii)  the farm products in which each buyer, commission merchant, and selling agent has an interest;

(E)  the Secretary of State distributes regularly as prescribed by the State to each buyer, commission merchant, and selling agent on the list described in subparagraph (D) a copy in written or printed form of those portions of the master list described in subparagraph (C) that cover the farm products in which such buyer, commission merchant, or selling agent has registered an interest except that--

(i)  the distribution of the portion of the master list may be in electronic, written, or printed form; and

(ii)  if social security or taxpayer identification numbers on the master list are encrypted, the Secretary of State may distribute the master list only--

(I)  by compact disc or other electronic media that contains--

(aa)  the recorded list of debtor names; and

(bb)  an encryption program that enables the buyer, commission merchant, and selling agent to enter a social security number for matching against the recorded list of encrypted social security or taxpayer identification numbers; and

(II)  on the written request of the buyer, commission merchant, or selling agent, by paper copy of the list to the requestor;

(F)  the Secretary of State furnishes to those who are not registered pursuant to (2)(D) of this section oral confirmation within 24 hours of any effective financing statement on request followed by written confirmation to any buyer of farm products buying from a debtor, or commission merchant or selling agent selling for a seller covered by such statement.

(3)  The term "commission merchant" means any person engaged in the business of receiving any farm product for sale, on commission, or for or on behalf of another person.

(4)  The term "effective financing statement" means a statement that--

(A)  is an original or reproduced copy of the statement, or, in the case of a State which (under the applicable State law provisions of the Uniform Commercial Code) allows the electronic filing of financing statements without the signature of the debtor, is an electronically reproduced copy of the statement;

(B)  other than in the case of an electronically reproduced copy of the statement is signed, authorized, or otherwise authenticated by the debtor and filed with the Secretary of State of a State by the secured party;

(C)  contains.

(i)  the name and address of the secured party;

(ii)  the name and address of the person indebted to the secured party;

(iii)  the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; and

(iv)  a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, and the name of each county or parish in which the farm products are produced or located;

(D)  must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated by the debtor and filed, to reflect material changes;

(E)  remains effective for a period of 5 years from the date of filing, subject to extensions for additional periods of 5 years each by refiling or filing a continuation statement within 6 months before the expiration of the initial 5 year period;

(F)  lapses on either the expiration of the effective period of the statement or the filing of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first;

(G)  is accompanied by the requisite filing fee set by the Secretary of State; and

(H)  substantially complies with the requirements of this subparagraph even though it contains minor errors that are not seriously misleading.

(5)  The term "farm product" means an agricultural commodity such as wheat, corn, soybeans, or a species of livestock such as cattle, hogs, sheep, horses, or poultry used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state (such as ginned cotton, wool-clip, maple syrup, milk, and eggs), that is in the possession of a person engaged in farming operations.

(6)  The term "knows" or "knowledge" means actual knowledge.

(7)  The term "security interest" means an interest in farm products that secures payment or performance of an obligation.

(8)  The term "selling agent" means any person, other than a commission merchant, who is engaged in the business of negotiating the sale and purchase of any farm product on behalf of a person engaged in farming operations.

(9)  The term "State" means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Trust Territory of the Pacific Islands.

(10)  The term "person" means any individual, partnership, corporation, trust, or any other business entity.

(11)  The term "Secretary of State" means the Secretary of State or the designee of the State.

(d)  Except as provided in subsection (e) and notwithstanding any other provision of Federal, State, or local law, a buyer who in the ordinary course of business buys a farm product from a seller engaged in farming operations shall take free of a security interest created by the seller, even though the security interest is perfected; and the buyer knows of the existence of such interest.

(e)  A buyer of farm products takes subject to a security interest created by the seller if--

(1)(A)  within 1 year before the sale of the farm products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that--

(i)  is an original or reproduced copy thereof;

(ii)  contains,

(I)  the name and address of the secured party;

(II)  the name and address of the person indebted to the secured party;

(III)  the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; and

(IV)  a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, and the name of each county or parish in which the farm products are produced or located;

(iii)  must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated and transmitted, to reflect material changes;

(iv)  will lapse on either the expiration period of the statement or the transmission of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first; and

(v)  contains any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and

(B)  the buyer has failed to perform the payment obligations, or

(2)  in the case of a farm product produced in a State that has established a central filing system--

(A)  the buyer has failed to register with the Secretary of State of such State prior to the purchase of farm products; and

(B)  the secured party has filed an effective financing statement or notice that covers the farm products being sold; or

(3)  in the case of a farm product produced in a State that has established a central filing system, the buyer--

(A)  receives from the Secretary of State of such State written notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm product being sold by such seller as being subject to an effective financing statement or notice; and

(B)  does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise.

(f)  What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides.

(g)(1)  Except as provided in paragraph (2) and notwithstanding any other provision of Federal, State, or local law, a commission merchant or selling agent who sells, in the ordinary course of business, a farm product for others, shall not be subject to a security interest created by the seller in such farm product even though the security interest is perfected and even though the commission merchant or selling agent knows of the existence of such interest.

(2)  A commission merchant or selling agent who sells a farm product for others shall be subject to a security interest created by the seller in such farm product if--

(A)  within 1 year before the sale of such farm product the commission merchant or selling agent has received from the secured party or the seller written notice of the security interest; organized according to farm products, that--

(i)  is an original or reproduced copy thereof;

(ii)  contains,

(I)  the name and address of the secured party;

(II)  the name and address of the person indebted to the secured party;

(III)  the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; and

(IV)  a description of the farm products subject to the security interest created by the debtor, including the amount of such products, where applicable, crop year, and the name of each county or parish in which the farm products are produced or located;

(iii)  must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated and transmitted, to reflect material changes;

(iv)  will lapse on either the expiration period of the statement or the transmission of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first; and

(v)  contains any payment obligations imposed on the commission merchant or selling agent by the secured party as conditions for waiver or release of the security interest; and

(B)  the commission merchant or selling agent has failed to perform the payment obligations;

(C)  in the case of a farm product produced in a State that has established a central filing system--

(i)  the commission merchant or selling agent has failed to register with the Secretary of State of such State prior to the purchase of farm products; and

(ii)  the secured party has filed an effective financing statement or notice that covers the farm products being sold; or

(D)  in the case of a farm product produced in a State that has established a central filing system, the commission merchant or selling agent--

(i)  receives from the Secretary of State of such State written notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm products being sold by such seller as being subject to an effective financing statement or notice; and

(ii)  does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise.

(3)  What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides.

(h)(1)  A security agreement in which a person engaged in farming operations creates a security interest in a farm product may require the person to furnish to the secured party a list of the buyers, commission merchants, and selling agents to or through whom the person engaged in farming operations may sell such farm product.

(2)  If a security agreement contains a provision described in paragraph (1) and such person engaged in farming operations sells the farm product collateral to a buyer or through a commission merchant or selling agent not included on such list, the person engaged in farming operations shall be subject to paragraph (3) unless the person--

(A)  has notified the secured party in writing of the identity of the buyer, commission merchant, or selling agent at least 7 days prior to such sale; or

(B)  has accounted to the secured party for the proceeds of such sale not later than 10 days after such sale.

(3)  A person violating paragraph (2) shall be fined $5,000 or 15 per centum of the value or benefit received for such farm product described in the security agreement, whichever is greater.

(i)  The Secretary of Agriculture shall prescribe regulations not later than 90 days after the date of enactment of this Act to aid States in the implementation and management of a central filing system.

(j)  This section shall become effective 12 months after the date of enactment of this Act.

[Codified to 7 U.S.C. 1631]

[Source:  Section 1324 of title XIII of the Act of December 23, 1985 (Pub. L. No. 99-198; 99 Stat. 1535), effective December 24, 1986; as amended by sections 661(1), and 662(2) of title VI of the Act of April 4, 1996, (Pub. L. No. 104-127; 110 Stat. 1107), effective April 4, 1996; section 10604 of title X of the Act of May 13, 2002 (Pub. L. No. 107--171; 116 Stat. 512), effective May 13, 2002; section 14215 of title XIV of the Act of May 22, 2008 (Pub. L. No. 110--234; 122 Stat. 1466 and 1467), effective May 22, 2008]

GRAMM-LEACH-BLILEY ACT

An Act

To enhance competition in the financial services industry by providing a prudential framework for the affiliation of banks, securities firms, insurance companies, and other financial service providers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a)  SHORT TITLE.--This Act may be cited as the "Gramm-Leach-Bliley Act".

[Codified to 12 U.S.C. 1811 nt]

[Source:  Section 1 of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1338), effective November 12, 1999]

TITLE I—FACILITATING AFFILIATION AMONG BANKS,
SECURITIES FIRMS, AND INSURANCE COMPANIES

Subtitle A—Affiliations

SEC. 104.  OPERATION OF STATE LAW.

(a)  STATE REGULATION OF THE BUSINESS OF INSURANCE.--The Act entitled "An Act to express the intent of Congress with reference to the regulation of the business of insurance" and approved March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the "McCarran-Ferguson Act") remains the law of the United States.

(b)  MANDATORY INSURANCE LICENSING REQUIREMENTS.--No person shall engage in the business of insurance in a State as principal or agent unless such person is licensed as required by the appropriate insurance regulator of such State in accordance with the relevant State insurance law, subject to subsections (c), (d), and (e).

(c)  AFFILIATIONS.--

(1)  IN GENERAL.--Except as provided in paragraph (2), no State may, by statute, regulation, order, interpretation, or other action, prevent or restrict a depository institution, or an affiliate thereof, from being affiliated directly or indirectly or associated with any person, as authorized or permitted by this Act or any other provision of Federal law.

(2)  INSURANCE.--With respect to affiliations between depository institutions, or any affiliate thereof, and any insurer, paragraph (1) does not prohibit--

(A)  any State from--

(i)  collecting, reviewing, and taking actions (including approval and disapproval) on applications and other documents or reports concerning any proposed acquisition of, or a change or continuation of control of, an insurer domiciled in that State; and

(ii)  exercising authority granted under applicable State law to collect information concerning any proposed acquisition of, or a change or continuation of control of, an insurer engaged in the business of insurance in, and regulated as an insurer by, such State;

during the 60-day period preceding the effective date of the acquisition or change or continuation of control, so long as the collecting, reviewing, taking actions, or exercising authority by the State does not have the effect of discriminating, intentionally or unintentionally, against a depository institution or an affiliate thereof, or against any other person based upon an association of such person with a depository institution;

(B)  any State from requiring any person that is acquiring control of an insurer domiciled in that State to maintain or restore the capital requirements of that insurer to the level required under the capital regulations of general applicability in that State to avoid the requirement of preparing and filing with the insurance regulatory authority of that State a plan to increase the capital of the insurer, except that any determination by the State insurance regulatory authority with respect to such requirement shall be made not later than 60 days after the date of notification under subparagraph (A); or

(C)  any State from restricting a change in the ownership of stock in an insurer, or a company formed for the purpose of controlling such insurer, after the conversion of the insurer from mutual to stock form so long as such restriction does not have the effect of discriminating, intentionally or unintentionally, against a depository institution or an affiliate thereof, or against any other person based upon an association of such person with a depository institution.

(d)  ACTIVITIES.--

(1)  IN GENERAL.--Except as provided in paragraph (3), and except with respect to insurance sales, solicitation, and cross marketing activities, which shall be governed by paragraph (2), no State may, by statute, regulation, order, interpretation, or other action, prevent or restrict a depository institution or an affiliate thereof from engaging directly or indirectly, either by itself or in conjunction with an affiliate, or any other person, in any activity authorized or permitted under this Act and the amendments made by this Act.

(2)  INSURANCE SALES.--

(A)  IN GENERAL.--In accordance with the legal standards for preemption set forth in the decision of the Supreme Court of the United States in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S. 25 (1996), no State may, by statute, regulation, order, interpretation, or other action, prevent or significantly interfere with the ability of a depository institution, or an affiliate thereof, to engage, directly or indirectly, either by itself or in conjunction with an affiliate or any other person, in any insurance sales, solicitation, or crossmarketing activity.

(B)  CERTAIN STATE LAWS PRESERVED.--Notwithstanding subparagraph (A), a State may impose any of the following restrictions, or restrictions that are substantially the same as but no more burdensome or restrictive than those in each of the following clauses:

(i)  Restrictions prohibiting the rejection of an insurance policy by a depository institution or an affiliate of a depository institution, solely because the policy has been issued or underwritten by any person who is not associated with such depository institution or affiliate when the insurance is required in connection with a loan or extension of credit.

(ii)  Restrictions prohibiting a requirement for any debtor, insurer, or insurance agent or broker to pay a separate charge in connection with the handling of insurance that is required in connection with a loan or other extension of credit or the provision of another traditional banking product by a depository institution, or any affiliate of a depository institution, unless such charge would be required when the depository institution or affiliate is the licensed insurance agent or broker providing the insurance.

(iii)  Restrictions prohibiting the use of any advertisement or other insurance promotional material by a depository institution or any affiliate of a depository institution that would cause a reasonable person to believe mistakenly that--

(I)  the Federal Government or a State is responsible for the insurance sales activities of, or stands behind the credit of, the institution or affiliate; or

(II)  a State, or the Federal Government guarantees any returns on insurance products, or is a source of payment on any insurance obligation of or sold by the institution or affiliate;

(iv)  Restrictions prohibiting the payment or receipt of any commission or brokerage fee or other valuable consideration for services as an insurance agent or broker to or by any person, unless such person holds a valid State license regarding the applicable class of insurance at the time at which the services are performed, except that, in this clause, the term "services as an insurance agent or broker" does not include a referral by an unlicensed person of a customer or potential customer to a licensed insurance agent or broker that does not include a discussion of specific insurance policy terms and conditions.

(v)  Restrictions prohibiting any compensation paid to or received by any individual who is not licensed to sell insurance, for the referral of a customer that seeks to purchase, or seeks an opinion or advice on, any insurance product to a person that sells or provides opinions or advice on such product, based on the purchase of insurance by the customer.

(vi)  Restrictions prohibiting the release of the insurance information of a customer (defined as information concerning the premiums, terms, and conditions of insurance coverage, including expiration dates and rates, and insurance claims of a customer contained in the records of the depository institution or an affiliate thereof) to any person other than an officer, director, employee, agent, or affiliate of a depository institution, for the purpose of soliciting or selling insurance, without the express consent of the customer, other than a provision that prohibits--

(I)  a transfer of insurance information to an unaffiliated insurer in connection with transferring insurance in force on existing insureds of the depository institution or an affiliate thereof, or in connection with a merger with or acquisition of an unaffiliated insurer; or

(II)  the release of information as otherwise authorized by State or Federal law.

(vii)  Restrictions prohibiting the use of health information contained from the insurance records of a customer for any purpose, other than for its activities as a licensed agent or broker, without the express consent of the customer.

(viii)  Restrictions prohibiting the extension of credit or any product or service that is equivalent to an extension of credit, lease or sale of property of any kind, or furnishing of any services or fixing or varying the consideration for any of the foregoing, on the condition or requirement that the customer obtain insurance from a depository institution or an affiliate of a depository institution, or a particular insurer, agent, or broker, other than a prohibition that would prevent any such depository institution or affiliate--

(I)  from engaging in any activity described in this clause that would not violate section 106 of the Bank Holding Company Act Amendments of 1970, as interpreted by the Board of Governors of the Federal Reserve System; or

(II)  from informing a customer or prospective customer that insurance is required in order to obtain a loan or credit, that loan or credit approval is contingent upon the procurement by the customer of acceptable insurance, or that insurance is available from the depository institution or an affiliate of the depository institution.

(ix)  Restrictions requiring, when an application by a consumer for a loan or other extension of credit from a depository institution is pending, and insurance is offered or sold to the consumer or is required in connection with the loan or extension of credit by the depository institution or any affiliate thereof, that a written disclosure by provided to the consumer or prospective customer indicating that the customer's choice of an insurance provider will not affect the credit decision or credit terms in any way, except that the depository institution may impose reasonable requirements concerning the creditworthiness of the insurer and scope of coverage chosen.

(x)  Restrictions requiring clear and conspicuous disclosure, in writing, where practicable, to the customer prior to the sale of any insurance policy that such policy--

(I)  is not a deposit;

(II)  is not insured by the Federal Deposit Insurance Corporation;

(III)  is not guaranteed by any depository institution or, if appropriate, an affiliate of any such institution or any person soliciting the purchase of or selling insurance on the premises thereof; and

(IV)  where appropriate, involves investment risk, including potential loss of principal.

(xi)  Restrictions requiring that, when a customer obtains insurance (other than credit insurance or flood insurance) and credit from a depository institution, or any affiliate of such institution, or any person soliciting the purchase of or selling insurance on the premises thereof, the credit and insurance transactions be completed through separate documents.

(xii)  Restrictions prohibiting, when a customer obtains insurance (other than credit insurance or flood insurance) and credit from a depository institution or an affiliate of such institution, or any person soliciting the purchase of or selling insurance on the premises thereof, inclusion of the expense of insurance premiums in the primary credit transaction without the express written consent of the customer.

(xiii)  Restrictions requiring maintenance of separate and distinct books and records relating to insurance transactions, including all files relating to and reflecting consumer complaints, and requiring that such insurance books and records be made available to the appropriate State insurance regulator for inspection upon reasonable notice.

(C)  LIMITATIONS.--

(i)  OCC DEFERENCE.--Section 304(e) does not apply with respect to any State statute, regulation, order, interpretation, or other action regarding insurance sales, solicitation, or cross marketing activities described in subparagraph (A) that was issued, adopted, or enacted before September 3, 1998, and that is not described in subparagraph (B).

(ii)  NONDISCRIMINATION.--Subsection (e) does not apply with respect to any State statute, regulation, order, interpretation, or other action regarding insurance sales, solicitation, or cross marketing activities described in subparagraph (A) that was issued, adopted, or enacted before September 3, 1998, and that is not described in subparagraph (B).

(iii)  CONSTRUCTION.--Nothing in this paragraph shall be construed--

(I)  to limit the applicability of the decision of the Supreme Court in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S. 25 (1996) with respect to any State statute, regulation, order, interpretation, or other action that is not referred to or described in subparagraph (B); or

(II)  to create any inference with respect to any State statute, regulation, order, interpretation, or other action that is not described in this paragraph.

(3)  INSURANCE ACTIVITIES OTHER THAN SALES.--State statutes, regulations, interpretations, orders, and other actions shall not be preempted under paragraph (1) to the extent that they--

(A)  relate to, or are issued, adopted, or enacted for the purpose of regulating the business of insurance in accordance with the Act entitled "An Act to express the intent of Congress with reference to the regulation of the business of insurance" and approved March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the "McCarran-Ferguson Act");

(B)  apply only to persons that are not depository institutions, but that are directly engaged in the business of insurance (except that they may apply to depository institutions engaged in providing savings bank life insurance as principal to the extent of regulating such insurance);

(C)  do not relate to or directly or indirectly regulate insurance sales, solicitations, or cross marketing activities; and

(D)  are not prohibited under subsection (e).

(4)  FINANCIAL ACTIVITIES OTHER THAN INSURANCE.--No State statute, regulation, order, interpretation, or other action shall be preempted under paragraph (1) to the extent that--

(A)  it does not relate to, and is not issued and adopted, or enacted for the purpose of regulating, directly or indirectly, insurance sales, solicitations, or cross marketing activities covered under paragraph (2);

(B)  it does not relate to, and is not issued and adopted, or enacted for the purpose of regulating, directly or indirectly, the business of insurance activities other than sales, solicitations, or cross marketing activities, covered under paragraph (3);

(C)  it does not relate to securities investigations or enforcement actions referred to in subsection (f); and

(D)  it--

(i)  does not distinguish by its terms between depository institutions, and affiliates thereof, engaged in the activity at issue and other persons engaged in the same activity in a manner that is in any way adverse with respect to the conduct of the activity by any such depository institution or affiliate engaged in the activity at issue;

(ii)  as interpreted or applied, does not have, and will not have, an impact on depository institutions, or affiliates thereof, engaged in the activity at issue, or any person who has an association with any such depository institution or affiliate, that is substantially more adverse than its impact on other persons engaged in the same activity that are not depository institutions or affiliates thereof, or persons who do not have an association with any such depository institution or affiliate;

(iii)  does not effectively prevent a depository institution or affiliate thereof from engaging in activities authorized or permitted by this Act or any other provision of Federal law; and

(iv)  does not conflict with the intent of this Act generally to permit affiliations that are authorized or permitted by Federal law.

(e)  NONDISCRIMINATION.--Except as provided in any restrictions described in subsection (d)(2)(B), no State may, by statute, regulation, order, interpretation, or other action, regulate the insurance activities authorized or permitted under this Act or any other provision of Federal law of a depository institution, or affiliate thereof, to the extent that such statute, regulation, order, interpretation, or other action--

(1)  distinguishes by its terms between depository institutions, or affiliates thereof, and other persons engaged in such activities, in a manner that is in any way adverse to any such depository institution, or affiliate thereof;

(2)  as interpreted or applied, has or will have an impact on depository institutions, or affiliates thereof, that is substantially more adverse than its impact on other persons providing the same products or services or engaged in the same activities that are not depository institutions, or affiliates thereof, or persons or entities affiliated therewith;

(3)  effectively prevents a depository institution, or affiliate thereof, from engaging in insurance activities authorized or permitted by this Act or any other provision of Federal law; or

(4)  conflicts with the intent of this Act generally to permit affiliations that are authorized or permitted by Federal law between depository institutions, or affiliates thereof, and persons engaged in the business of insurance.

(f)  LIMITATION.--Subsections (c) and (d) shall not be construed to affect--

(1)  the jurisdiction of the securities commission (or any agency or office performing like functions) of any State, under the laws of such State--

(A)  to investigate and bring enforcement actions, consistent with section 18(c) of the Securities Act of 1933, with respect to fraud or deceit or unlawful conduct by any person, in connection with securities or securities transactions; or

(B)  to require the registration of securities or the licensure or registration of brokers, dealers, or investment advisers (consistent with section 203A of the Investment Advisers Act of 1940), or the associated persons of a broker, dealer, or investment adviser (consistent with such section 203A); or

(2)  State laws, regulations, orders, interpretations, or other actions of general applicability relating to the governance of corporations, partnerships, limited liability companies, or other business associations incorporated or formed under the laws of that State or domiciled in that State, or the applicability of the antitrust laws of any State or any State law that is similar to the antitrust laws if such laws, regulations, orders, interpretations, or other actions are not inconsistent with the purposes of this Act to authorize or permit certain affiliations and to remove barriers to such affiliations.

(g)  DEFINITIONS.--For purposes of this section, the following definitions shall apply:

(1)  AFFILIATE.--The term "affiliate" means any company that controls, is controlled by, or is under common control with another company.

(2)  ANTITRUST LAWS.--The term "antitrust laws" has the meaning given the term in subsection (a) of the first section of the Clayton Act, and includes section 5 of the Federal Trade Commission Act (to the extent that such section 5 relates to unfair methods of competition).

(3)  DEPOSITORY INSTITUTION.--The term "depository institution"--

(A)  has the meaning given the term in section 3 of the Federal Deposit Insurance Act; and

(B)  includes any foreign bank that maintains a branch, agency, or commercial lending company in the United States.

(4)  INSURER.--The term "insurer" means any person engaged in the business of insurance.

(5)  STATE.--The term "State" means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.

[Codified to 15 U.S.C. 6701]

[Source:  Section 104 of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1352), effective November 12, 1999]

SEC. 109.  STUDY OF FINANCIAL MODERNIZATION'S EFFECT ON THE ACCESSIBILITY OF SMALL BUSINESS AND FARM LOANS.

(a)  STUDY.--The Secretary of the Treasury, in consultation with the Federal banking agencies (as defined in section 3(z) of the Federal Deposit Insurance Act), shall conduct a study of the extent to which credit is being provided to and for small businesses and farms, as a result of this Act and the amendments made by this Act.

(b)  REPORT.--Before the end of the 5-year period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Federal banking agencies, shall submit a report to the Congress on the study conducted pursuant to subsection (a) and shall include such recommendations as the Secretary determines to be appropriate for administrative and legislative action.

[Codified to 12 U.S.C. 252 nt]

[Source:  Section 109 of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1362), effective November 12, 1999]

Subtitle B—Streamlining Supervision of
Bank Holding Companies

SEC. 114.  PRUDENTIAL SAFEGUARDS.

(a)  COMPTROLLER OF THE CURRENCY.--

(1)  IN GENERAL.--The Comptroller of the Currency may, by regulation or order, impose restrictions or requirements on relationships or transactions between a national bank and a subsidiary of the national bank that the Comptroller finds are--

(A)  consistent with the purposes of this Act, title LXII of the Revised Statutes of the United States, and other Federal law applicable to national banks; and

(B)  appropriate to avoid any significant risk to the safety and soundness of insured depository institutions or the Deposit Insurance Fund or other adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.

(2)  REVIEW.--The Comptroller of the Currency shall regularly--

(A)  review all restrictions or requirements established pursuant to paragraph (1) to determine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, including the avoidance of any adverse effect referred to in paragraph (1)(B); and

(B)  modify or eliminate any such restriction or requirement the Comptroller finds is no longer required for such purposes.

(b)  BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.--

(1)  IN GENERAL.--The Board of Governors of the Federal Reserve System may, by regulation or order, impose restrictions or requirements on relationships or transactions--

(A)  between a depository institution subsidiary of a bank holding company and any affiliate of such depository institution (other than a subsidiary of such institution); or

(B)  between a State member bank and a subsidiary of such bank;

if the Board makes a finding described in paragraph (2) with respect to such restriction or requirement.

(2)  FINDING.--The Board of Governors of the Federal Reserve System may exercise authority under paragraph (1) if the Board finds that the exercise of such authority is--

(A)  consistent with the purposes of this Act, the Bank Holding Company Act of 1956, the Federal Reserve Act, and other Federal law applicable to depository institution subsidiaries of bank holding companies or State member banks, as the case may be; and

(B)  appropriate to prevent an evasion of any provision of law referred to in subparagraph (A) or to avoid any significant risk to the safety and soundness of depository institutions or the Deposit Insurance Fund or other adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.

(3)  REVIEW.--The Board of Governors of the Federal Reserve System shall regularly--

(A)  review all restrictions or requirements established pursuant to paragraph (1) or (4) to determine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, including the avoidance of any adverse effect referred to in paragraph (2)(B) or (4)(B); and

(B)  modify or eliminate any such restriction or requirement the Board finds is no longer required for such purposes.

(4)  FOREIGN BANKS.--The Board may, by regulation or order, impose restrictions or requirements on relationships or transactions between a branch, agency, or commercial lending company of a foreign bank in the United States and any affiliate in the United States of such foreign bank that the Board finds are--

(A)  consistent with the purposes of this Act, the Bank Holding Company Act of 1956, the Federal Reserve Act, and other Federal law applicable to foreign banks and their affiliates in the United States; and

(B)  appropriate to prevent an evasion of any provision of law referred to in subparagraph (A) or to avoid any significant risk to the safety and soundness of depository institutions or the Deposit Insurance Fund or other adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.

(c)  FEDERAL DEPOSIT INSURANCE CORPORATION.--

(1)  IN GENERAL.--The Federal Deposit Insurance Corporation may, by regulation or order, impose restrictions or requirements on relationships or transactions between a State nonmember bank (as defined in section 3 of the Federal Deposit Insurance Act) and a subsidiary of the State nonmember bank that the Corporation finds are--

(A)  consistent with the purposes of this Act, the Federal Deposit Insurance Act, or other Federal law applicable to State nonmember banks; and

(B)  appropriate to avoid any significant risk to the safety and soundness of depository institutions or the Deposit Insurance Fund or other adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.

(2)  REVIEW.--The Federal Deposit Insurance Corporation shall regularly--

(A)  review all restrictions or requirements established pursuant to paragraph (1) to determine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, including the avoidance of any adverse effect referred to in paragraph (1)(B); and

(B)  modify or eliminate any such restriction or requirement the Corporation finds is no longer required for such purposes.

[Codified to 12 U.S.C. 1828a]

[Source:  Section 114 of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1371), effective November 12, 1999; section 9(h)(1) of the Act of February 15, 2006 (Pub. L. No. 107--193; 119 Stat. 3617), effective date shall take effect on the date of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005]

SEC. 115.  EXAMINATION OF INVESTMENT COMPANIES.

(a)  EXCLUSIVE COMMISSION AUTHORITY.--Except as provided in subsection (c), a Federal banking agency may not inspect or examine any registered investment company that is not a bank holding company or a savings and loan holding company.

(b)  EXAMINATION RESULTS AND OTHER INFORMATION.--The Commission shall provide to any Federal banking agency, upon request, the results of any examination, reports, records, or other information with respect to any registered investment company to the extent necessary for the agency to carry out its statutory responsibilities.

(c)  CERTAIN EXAMINATIONS AUTHORIZED.--Nothing in this section shall prevent the Corporation, if the Corporation finds it necessary to determine the condition of an insured depository institution for insurance purposes, from examining an affiliate of any insured depository institution, pursuant to its authority under section 10(b)(4) of the Federal Deposit Insurance Act, as may be necessary to disclose fully the relationship between the insured depository institution and the affiliate, and the effect of such relationship on the insured depository institution.

(d)  DEFINITIONS.--For purposes of this section, the following definitions shall apply:

(1)  BANK HOLDING COMPANY.--The term "bank holding company" has the meaning given the term in section 2 of the Bank Holding Company Act of 1956.

(2)  COMMISSION.--The term "Commission" means the Securities and Exchange Commission.

(3)  CORPORATION.--The term "Corporation" means the Federal Deposit Insurance Corporation.

(4)  FEDERAL BANKING AGENCY.--The term "Federal banking agency" has the meaning given the term in section 3(z) of the Federal Deposit Insurance Act.

(5)  INSURED DEPOSITORY INSTITUTION.--The term "insured depository institution" has the meaning given the term in section 3(c) of the Federal Deposit Insurance Act.

(6)  REGISTERED INVESTMENT COMPANY.--The term "registered investment company" means an investment company that is registered with the Commission under the Investment Company Act of 1940.

(7)  SAVINGS AND LOAN HOLDING COMPANY.--The term "savings and loan holding company" has the meaning given the term in section 10(a)(1)(D) of the Home Owners' Loan Act.

[Codified to 12 U.S.C. 1820a]

[Source:  Section 115 of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1371), effective November 12, 1999]

Subtitle D—Preservation of FTC Authority

SEC. 132.  INTERAGENCY DATA SHARING.

(a)  IN GENERAL.--To the extent not prohibited by other law, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, and the Board of Governors of the Federal Reserve System shall make available to the Attorney General and the Federal Trade Commission any data in the possession of any such banking agency that the antitrust agency deems necessary for antitrust review of any transaction requiring notice to any such antitrust agency or the approval of such agency under section 3 or 4 of the Bank Holding Company Act of 1956, section 18(c) of the Federal Deposit Insurance Act, the National Bank Consolidation and Merger Act, section 10 of the Home Owners' Loan Act, or the antitrust laws.

(b)  CONFIDENTIALITY REQUIREMENTS.--

(1)  IN GENERAL.--Any information or material obtained by any agency pursuant to subsection (a) shall be treated as confidential.

(2)  PROCEDURES FOR DISCLOSURE.--If any information or material obtained by any agency pursuant to subsection (a) is proposed to be disclosed to a third party, written notice of such disclosure shall first be provided to the agency from which such information or material was obtained and an opportunity shall be given to such agency to oppose or limit the proposed disclosure.

(3)  OTHER PRIVILEGES NOT WAIVED BY DISCLOSURE UNDER THIS SECTION.--The provision by any Federal agency of any information or material pursuant to subsection (a) to another agency shall not constitute a waiver, or otherwise affect, any privilege any agency or person may claim with respect to such information under Federal or State law.

(4)  EXCEPTION.--No provision of this section shall be construed as preventing or limiting access to any information by any duly authorized committee of the Congress or the Comptroller General of the United States.

(c)  BANKING AGENCY INFORMATION SHARING.--The provisions of subsection (b) shall apply to--

(1)  any information or material obtained by any Federal banking agency (as defined in section 3(z) of the Federal Deposit Insurance Act) from any other Federal banking agency; and

(2)  any report of examination or other confidential supervisory information obtained by any State agency or authority, or any other person, from a Federal banking agency.

[Codified to 12 U.S.C. 1828b]

[Source:  Section 132 of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1382), effective November 12, 1999]

TITLE II—FUNCTIONAL REGULATION

Subtitle D—Banks and Bank Holding
Companies

SEC. 241.  CONSULTATION.

(a)  IN GENERAL.--The Securities and Exchange Commission shall consult and coordinate comments with the appropriate Federal banking agency before taking any action or rendering any opinion with respect to the manner in which any insured depository institution or depository institution holding company reports loan loss reserves in its financial statement, including the amount of any such loan loss reserve.

(b)  DEFINITIONS.--For purposes of subsection (a), the terms "insured depository institution", "depository institution holding company", and "appropriate Federal banking agency" have the same meaning as given in section 3 of the Federal Deposit Insurance Act.

[Codified to 15 U.S.C. 78m nt]

[Source:  Section 241 of title II of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat.), effective November 12, 1999]


TITLE III—INSURANCE

Subtitle A—State Regulation of Insurance

SEC. 301. FUNCTIONAL REGULATIONS OF INSURANCE.

The insurance activities of any person (including a national bank exercising its power to act as agent under the eleventh undesignated paragraph of section 13 of the Federal Reserve Act) shall be functionally regulated by the States, subject to section 104.

[Codified to 15 U.S.C. 6711]

[Source:  Section 301 of title III of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1407), effective November 12, 1999]

SEC. 304.  EXPEDITED AND EQUALIZED DISPUTE RESOLUTION FOR FEDERAL REGULATORS.

(a)  FILING IN COURT OF APPEALS.--In the case of a regulatory conflict between a State insurance regulator and a Federal regulator regarding insurance issues, including whether a State law, rule, regulation, order, or interpretation regarding any insurance sales or solicitation activity is properly treated as preempted under Federal law, the Federal or State regulator may seek expedited judicial review of such determination by the United States Court of Appeals for the circuit in which the State is located or in the United States Court of Appeals for the District of Columbia Circuit by filing a petition for review in such court.

(b)  EXPEDITED REVIEW.--The United States Court of Appeals in which a petition for review is filed in accordance with subsection (a) shall complete all action on such petition, including rendering a judgment, before the end of the 60-day period beginning on the date on which such petition is filed, unless all parties to such proceeding agree to any extension of such period.

(c)  SUPREME COURT REVIEW.--Any request for certiorari to the Supreme Court of the United States of any judgment of a United States Court of Appeals with respect to a petition for review under this section shall be filed with the Supreme Court of the United States as soon as practicable after such judgment is issued.

(d)  STATUTE OF LIMITATION.--No petition may be filed under this section challenging an order, ruling, determination, or other action of a Federal regulator or State insurance regulator after the later of--

(1)  the end of the 12-month period beginning on the date on which the first public notice is made of such order, ruling, determination or other action in its final form; or

(2)  the end of the 6-month period beginning on the date on which such order, ruling, determination, or other action takes effect.

(e)  STANDARD OF REVIEW.--The court shall decide a petition filed under this section based on its review on the merits of all questions presented under State and Federal law, including the nature of the product or activity and the history and purpose of its regulation under State and Federal law, without unequal deference.

[Codified to 15 U.S.C. 6714]

[Source:  Section 304 of title III of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1408), effective November 12, 1999]

SEC. 306.  CERTAIN STATE AFFILIATION LAWS PREEMPTED FOR INSURANCE COMPANIES AND AFFILIATES.

Except as provided in section 104(c)(2), no State may, by law, regulation, order, interpretation, or otherwise--

(1)  prevent or significantly interfere with the ability of any insurer, or any affiliate of an insurer (whether such affiliate is organized as a stock company, mutual holding company, or otherwise), to become a financial holding company or to acquire control of a depository institution;

(2)  limit the amount of an insurer's assets that may be invested in the voting securities of a depository institution (or any company which controls such institution), except that the laws of an insurer's State of domicile may limit the amount of such investment to an amount that is not less than 5 percent of the insurer's admitted assets; or

(3)  prevent, significantly interfere with, or have the authority to review, approve, or disapprove a plan of reorganization by which an insurer proposes to reorganize from mutual form to become a stock insurer (whether as a direct or indirect subsidiary of a mutual holding company or otherwise) unless such State is the State of domicile of the insurer.

[Codified to 15 U.S.C. 6715]

[Source:  Section 306 of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1415), effective November 12, 1999]

SEC. 307.  INTERAGENCY CONSULTATION.

(a)  PURPOSE.--It is the intention of the Congress that the Board of Governors of the Federal Reserve System, as the umbrella supervisor for financial holding companies, and the State insurance regulators, as the functional regulators of companies engaged in insurance activities, coordinate efforts to supervise companies that control both a depository institution and a company engaged in insurance activities regulated under State law. In particular, Congress believes that the Board and the State insurance regulators should share, on a confidential basis, information relevant to the supervision of companies that control both a depository institution and a company engaged in insurance activities, including information regarding the financial health of the consolidated organization and information regarding transactions and relationships between insurance companies and affiliated depository institutions. The appropriate Federal banking agencies for depository institutions should also share, on a confidential basis, information with the relevant State insurance regulators regarding transactions and relationships between depository institutions and affiliated companies engaged in insurance activities. The purpose of this section is to encourage this coordination and confidential sharing of information, and to thereby improve both the efficiency and the quality of the supervision of financial holding companies and their affiliated depository institutions and companies engaged in insurance activities.

(b)  EXAMINATION RESULTS AND OTHER INFORMATION.--

(1)  INFORMATION OF THE BOARD.--Upon the request of the appropriate insurance regulator of any State, the Board may provide any information of the Board regarding the financial condition, risk management policies, and operations of any financial holding company that controls a company that is engaged in insurance activities and is regulated by such State insurance regulator, and regarding any transaction or relationship between such an insurance company and any affiliated depository institution. The Board may provide any other information to the appropriate State insurance regulator that the Board believes is necessary or appropriate to permit the State insurance regulator to administer and enforce applicable State insurance laws.

(2)  BANKING AGENCY INFORMATION.--Upon the request of the appropriate insurance regulator of any State, the appropriate Federal banking agency may provide any information of the agency regarding any transaction or relationship between a depository institution supervised by such Federal banking agency and any affiliated company that is engaged in insurance activities regulated by such State insurance regulator. The appropriate Federal banking agency may provide any other information to the appropriate State insurance regulator that the agency believes is necessary or appropriate to permit the State insurance regulator to administer and enforce applicable State insurance laws.

(3)  STATE INSURANCE REGULATOR INFORMATION.--Upon the request of the Board or the appropriate Federal banking agency, a State insurance regulator may provide any examination or other reports, records, or other information to which such insurance regulator may have access with respect to a company which--

(A)  is engaged in insurance activities and regulated by such insurance regulator; and

(B)  is an affiliate of a depository institution or financial holding company.

(c)  CONSULTATION.--Before making any determination relating to the initial affiliation of, or the continuing affiliation of, a depository institution or financial holding company with a company engaged in insurance activities, the appropriate Federal banking agency shall consult with the appropriate State insurance regulator of such company and take the views of such insurance regulator into account in making such determination.

(d)  EFFECT ON OTHER AUTHORITY.--Nothing in this section shall limit in any respect the authority of the appropriate Federal banking agency with respect to a depository institution or bank holding company or any affiliate thereof under any provision of law.

(e)  CONFIDENTIALITY AND PRIVILEGE.--

(1)  CONFIDENTIALITY.--The appropriate Federal banking agency shall not provide any information or material that is entitled to confidential treatment under applicable Federal banking agency regulations, or other applicable law, to a State insurance regulator unless such regulator agrees to maintain the information or material in confidence and to take all reasonable steps to oppose any effort to secure disclosure of the information or material by the regulator. The appropriate Federal banking agency shall treat as confidential any information or material obtained from a State insurance regulator that is entitled to confidential treatment under applicable State regulations, or other applicable law, and take all reasonable steps to oppose any effort to secure disclosure of the information or material by the Federal banking agency.

(2)  PRIVILEGE.--The provision pursuant to this section of information or material by a Federal banking agency or State insurance regulator shall not constitute a waiver of, or otherwise affect, any privilege to which the information or material is otherwise subject.

(f)  DEFINITIONS.--For purposes of this section, the following definitions shall apply:

(1)  APPROPRIATE FEDERAL BANKING AGENCY; DEPOSITORY INSTITUTION.--The terms "appropriate Federal banking agency" and "depository institution" have the same meanings as in section 3 of the Federal Deposit Insurance Act.

(2)  BOARD AND FINANCIAL HOLDING COMPANY.--The terms "Board" and "financial holding company" have the same meanings as in section 2 of the Bank Holding Company Act of 1956.

[Codified to 15 U.S.C. 6716]

[Source:  Section 307 of title III of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1415), effective November 12, 1999]

SEC. 308.  DEFINITION OF STATE.

For purposes of this subtitle, the term "State" means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.

[Codified to 15 U.S.C. 6717]

[Source: Section 308 of title III of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1417), effective November 12, 1999]

TITLE V—PRIVACY

Subtitle A—Disclosure of Nonpublic
Personal Information

SEC. 501.  PROTECTION OF NONPUBLIC PERSONAL INFORMATION.

(a)  PRIVACY OBLIGATION POLICY.--It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers' nonpublic personal information.

(b)  FINANCIAL INSTITUTIONS SAFEGUARDS.--In furtherance of the policy in subsection (a), each agency or authority described in section 505(a) shall establish appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards--

(1)  to insure the security and confidentiality of customer records and information;

(2)  to protect against any anticipated threats or hazards to the security or integrity of such records; and

(3)  to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer.

[Codified to 15 U.S.C. 6801]

[Source:  Section 501 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1436), effective November 12, 1999]

SEC. 502.  OBLIGATIONS WITH RESPECT TO DISCLOSURES OF PERSONAL INFORMATION.

(a)  NOTICE REQUIREMENTS.--Except as otherwise provided in this subtitle, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 503.

(b)  OPT OUT.--

(1)  IN GENERAL.--A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless--

(A)  such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 504, that such information may be disclosed to such third party;

(B)  the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party; and

(C)  the consumer is given an explanation of how the consumer can exercise that nondisclosure option.

(2)  EXCEPTION.--This subsection shall not prevent a financial institution from providing nonpublic personal information to a nonaffiliated third party to perform services for or functions on behalf of the financial institution, including marketing of the financial institution's own products or services, or financial products or services offered pursuant to joint agreements between two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 504, if the financial institution fully discloses the providing of such information and enters into a contractual agreement with the third party that requires the third party to maintain the confidentiality of such information.

(c)  LIMITS ON REUSE OF INFORMATION.--Except as otherwise provided in this subtitle, a nonaffiliated third party that receives from a financial institution nonpublic personal information under this section shall not, directly or through an affiliate of such receiving third party, disclose such information to any other person that is a nonaffiliated third party of both the financial institution and such receiving third party, unless such disclosure would be lawful if made directly to such other person by the financial institution.

(d)  LIMITATIONS ON THE SHARING OF ACCOUNT NUMBER INFORMATION FOR MARKETING PURPOSES.--A financial institution shall not disclose, other than to a consumer reporting agency, an account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer.

(e)  GENERAL EXCEPTIONS.--Subsections (a) and (b) shall not prohibit the disclosure of nonpublic personal information--

(1)  as necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with--

(A)  servicing or processing a financial product or service requested or authorized by the consumer;

(B)  maintaining or servicing the consumer's account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or

(C)  a proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to a transaction of the consumer;

(2)  with the consent or at the direction of the consumer;

(3)(A)  to protect the confidentiality or security of the financial institution's records pertaining to the consumer, the service or product, or the transaction therein; (B) to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability; (C) for required institutional risk control, or for resolving customer disputes or inquiries; (D) to persons holding a legal or beneficial interest relating to the consumer; or (E) to persons acting in a fiduciary or representative capacity on behalf of the consumer;

(4)  to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the financial institution, persons assessing the institution's compliance with industry standards, and the institution's attorneys, accountants, and auditors;

(5)  to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978, to law enforcement agencies (including the Bureau of Consumer Financial Protection1 a Federal functional regulator, the Secretary of the Treasury with respect to subchapter II of chapter 53 of title 31, United States Code, and chapter 2 of title I of Public Law 91--508 (12 U.S.C. 1951--1959), a State insurance authority, or the Federal Trade Commission), self-regulatory organizations, or for an investigation on a matter related to public safety;

(6)(A)  to a consumer reporting agency in accordance with the Fair Credit Reporting Act, or (B) from a consumer report reported by a consumer reporting agency;

(7)  in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of such business or unit; or

(8)  to comply with Federal, State, or local laws, rules, and other applicable legal requirements; to comply with a properly authorized civil, criminal, or regulatory investigation or subpoena or summons by Federal, State, or local authorities; or to respond to judicial process or government regulatory authorities having jurisdiction over the financial institution for examination, compliance, or other purposes as authorized by law.

[Codified to 15 U.S.C. 6802]

[Source:  Section 502 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1437), effective November 12, 1999; amended by section 1093(z) of title X of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2095), effective July 21, 2010]

SEC. 503.  DISCLOSURE OF INSTITUTION PRIVACY POLICY.

(a)  DISCLOSURE REQUIRED.--At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear and conspicuous disclosure to such consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 504, of such financial institution's policies and practices with respect to--

(1)  disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 502, including the categories of information that may be disclosed;

(2)  disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and

(3)  protecting the nonpublic personal information of consumers.

(b)  REGULATIONS.--Disclosures required by subsection (a) shall be made in accordance with the regulations prescribed under section 504.

(c)  INFORMATION TO BE INCLUDED.--The disclosure required by subsection (a) shall include--

(1)  the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution, consistent with section 502 of this subtitle, and including--

(A)  the categories of persons to whom the information is or may be disclosed, other than the persons to whom the information may be provided pursuant to section 502(e); and

(B)  the policies and practices of the institution with respect to disclosing of nonpublic personal information of persons who have ceased to be customers of the financial institution;

(2)  the categories of nonpublic personal information that are collected by the financial institution;

(3)  the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 501; and

(4)  the disclosures required, if any, under section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act.

(d)  EXEMPTION FOR CERTIFIED PUBLIC ACCOUNTANTS.--

(1)  IN GENERAL.--The disclosure requirements of subsection (a) do not apply to any person, to the extent that the person is--

(A)  a certified public accountant;

(B)  certified or licensed for such purpose by a State; and

(C)  subject to any provision of law, rule, or regulation issued by a legislative or regulatory body of the State, including rules of professional conduct or ethics, that prohibits disclosure of nonpublic personal information without the knowing and expressed consent of the consumer.

(2)  LIMITATION.--Nothing in this subsection shall be construed to exempt or otherwise exclude any financial institution that is affiliated or becomes affiliated with a certified public accountant described in paragraph (1) from any provision of this section.

(3)  DEFINITIONS.--For purposes of this subsection, the term "State" means any State or territory of the United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands.

(e)  MODEL FORMS.--

(1)  IN GENERAL.--The agencies referred to in section 504(a)(1) shall jointly develop a model form which may be used, at the option of the financial institution, for the provision of disclosures under this section.

(2)  FORMAT.--A model form developed under paragraph (1) shall--

(A)  be comprehensible to consumers, with a clear format and design;

(B)  Provide for clear and conspicuous disclosures;

(C)  enable consumers easily to identify the sharing practices of a financial institution and to compare privacy practices among financial institutions; and

(D)  be succinct, and use an easily readable type font.

(3)  TIMING.--A model form required to be developed by this subsection shall be issued in proposed form for public comment not later than 180 days after the date of enactment of this subsection.

(4)  SAFE HARBOR.--Any financial institution that elects to provide the model form developed by the agencies under this subsection shall be deemed to be in compliance with the disclosures required under this section.

[Codified to 15 U.S.C. 6803]

[Source: Section 503 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1439), effective November 12, 1999; section 609 of title VI and section 728 of title VII of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1983, 1984, and 2003), effective October 13, 2006]

SEC. 504.  RULEMAKING.

(a)  REGULATORY AUTHORITY.--

(1)  RULEMAKING.--

(A)  IN GENERAL.--Except as provided in subparagraph (C), the Bureau of Consumer Financial Protection and the Securities and Exchange Commission shall have authority to prescribe such regulations as may be necessary to carry out the purposes of this subtitle with respect to financial institutions and other persons subject to their respective jurisdiction under section 505 (and notwithstanding subtitle B of the Consumer Financial Protection Act of 2010), except that the Bureau of Consumer Financial Protection shall not have authority to prescribe regulations with respect to the standards under section 501.

(B)  CFTC.--The Commodity Futures Trading Commission shall have authority to prescribe such regulations as may be necessary to carry out the purposes of this subtitle with respect to financial institutions and other persons subject to the jurisdiction of the Commodity Futures Trading Commission under section 5g of the Commodity Exchange Act.

(C)  FEDERAL TRADE COMMISSION AUTHORITY.--Notwithstanding the authority of the Bureau of Consumer Financial Protection under subparagraph (A), the Federal Trade Commission shall have authority to prescribe such regulations as may be necessary to carry out the purposes of this subtitle with respect to any financial institution that is a person described in section 1029(a) of the Consumer Financial Protection Act of 2010.

(D)  RULE OF CONSTRUCTION.--Nothing in this paragraph shall be construed to alter, affect, or otherwise limit the authority of a State insurance authority to adopt regulations to carry out this subtitle.

(2)  COORDINATION, CONSISTENCY, AND COMPARABILITY.-- Each of the agencies authorized under paragraph (1) to prescribe regulations shall consult and coordinate with the other such agencies and, as appropriate, and with representatives of State insurance authorities designated by the National Association of Insurance Commissioners, for the purpose of assuring, to the extent possible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies.

(3)  PROCEDURES AND DEADLINE.--Such regulations shall be prescribed in accordance with applicable requirements of title 5, United States Code.

(b)  AUTHORITY TO GRANT EXCEPTIONS.--The regulations prescribed under subsection (a) may include such additional exceptions to subsections (a) through (d) of section 502 as are deemed consistent with the purposes of this subtitle.

[Codified to 15 U.S.C. 6804]

[Source: Section 504 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1439), effective November 12, 1999; as amended by section 1093(3) of title X of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2095 and 2096), effective July 21, 2010]

SEC. 505.  ENFORCEMENT.

(a)  IN GENERAL.--Subject to subtitle B of the Consumer Financial Protection Act of 2010, this subtitle and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law, as follows:

(1)  Under section 8 of the Federal Deposit Insurance Act, by the appropriate Federal banking agency, as defined in section 3(q) of the Federal Deposit Insurance Act, in the case of--

(A)  national banks, Federal branches and Federal agencies of foreign banks, and any subsidiaries of such entities (except brokers, dealers, persons providing insurance, investment companies, and investment advisers);

(B)  member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, organizations operating under section 25 or 25A of the Federal Reserve Act, and bank holding companies and their nonbank subsidiaries or affiliates (except brokers, dealers, persons providing insurance, investment companies, and investment advisers);

(C)  banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), insured State branches of foreign banks, and any subsidiaries of such entities (except brokers, dealers, persons providing insurance, investment companies, and investment advisers); and

(D)  savings associations the deposits of which are insured by the Federal Deposit Insurance Corporation, and any subsidiaries of such savings associations (except brokers, dealers, persons providing insurance, investment companies, and investment advisers).

(2)  Under the Federal Credit Union Act, by the Board of the National Credit Union Administration with respect to any federally insured credit union, and any subsidiaries of such an entity.

(3)  Under the Securities Exchange Act of 1934, by the Securities and Exchange Commission with respect to any broker or dealer.

(4)  Under the Investment Company Act of 1940, by the Securities and Exchange Commission with respect to investment companies.

(5)  Under the Investment Advisers Act of 1940, by the Securities and Exchange Commission with respect to investment advisers registered with the Commission under such Act.

(6)  Under State insurance law, in the case of any person engaged in providing insurance, by the applicable State insurance authority of the State in which the person is domiciled, subject to section 104 of this Act.

(7)  Under the Federal Trade Commission Act, by the Federal Trade Commission for any other financial institution or other person that is not subject to the jurisdiction of any agency or authority under paragraphs (1) through (6) of this subsection.

(8)  Under subtitle E of the Consumer Financial Protection Act of 2010, by the Bureau of Consumer Financial Protection, in the case of any financial institution and other covered person or service provider that is subject to the jurisdiction of the Bureau and any person subject to this subtitle, but not with respect to the standards under section 501.

(b)  ENFORCEMENT OF SECTION 501.--

(1)  IN GENERAL.--Except as provided in paragraph (2), the agencies and authorities described in subsection (a), other than the Bureau of Consumer Financial Protection, shall implement the standards prescribed under section 501(b) in the same manner, to the extent practicable, as standards prescribed pursuant to section 39(a) of the Federal Deposit Insurance Act are implemented pursuant to such section.

(2)  EXCEPTION.--The agencies and authorities described in paragraphs (3), (4), (5), (6), and (7) of subsection (a) shall implement the standards prescribed under section 501(b) by rule with respect to the financial institutions and other persons subject to their respective jurisdictions under subsection (a).

(c)  ABSENCE OF STATE ACTION.--If a State insurance authority fails to adopt regulations to carry out this subtitle, such State shall not be eligible to override, pursuant to section 47(g)(2)(B)(iii) of the Federal Deposit Insurance Act, the insurance customer protection regulations prescribed by a Federal banking agency under section 47(a) of such Act.

(d)  DEFINITIONS.--The terms used in subsection (a)(1) that are not defined in this subtitle or otherwise defined in section 3(s) of the Federal Deposit Insurance Act shall have the same meaning as given in section 1(b) of the International Banking Act of 1978.

[Codified to 15 U.S.C. 6805]

[Source:  Section 505 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1440), effective November 12, 1999; section 1093(4), (5), and (6) of title X of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2096), effective July 21, 2010]

SEC. 507.  RELATION TO STATE LAWS.

(a)  IN GENERAL.--This subtitle and the amendments made by this subtitle shall not be construed as superseding, altering, or affecting any statute, regulation, order, or interpretation in effect in any State, except to the extent that such statute, regulation, order, or interpretation is inconsistent with the provisions of this subtitle, and then only to the extent of the inconsistency.

(b)  GREATER PROTECTION UNDER STATE LAW.--For purposes of this section, a State statute, regulation, order, or interpretation is not inconsistent with the provisions of this subtitle if the protection such statute, regulation, order, or interpretation affords any person is greater than the protection provided under this subtitle and the amendments made by this subtitle, as determined by the Bureau of Consumer Financial Protection, after consultation with the agency or authority with jurisdiction under section 505(a) of either the person that initiated the complaint or that is the subject of the complaint, on its own motion or upon the petition of any interested party.

[Codified to 15 C.F.R. 6807]

[Source:  Section 507 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1442), effective November 12, 1999; section 1093(6) of title X of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2097; effective July 21, 2010]

SEC. 508.  STUDY OF INFORMATION SHARING AMONG FINANCIAL AFFILIATES.

(a)  IN GENERAL.--The Secretary of the Treasury, in conjunction with the Federal functional regulators and the Federal Trade Commission, shall conduct a study of information sharing practices among financial institutions and their affiliates. Such study shall include--

(1)  the purposes for the sharing of confidential customer information with affiliates or with nonaffiliated third parties;

(2)  the extent and adequacy of security protections for such information;

(3)  the potential risks for customer privacy of such sharing of information;

(4)  the potential benefits for financial institutions and affiliates of such sharing of information;

(5)  the potential benefits for customers of such sharing of information;

(6)  the adequacy of existing laws to protect customer privacy;

(7)  the adequacy of financial institution privacy policy and privacy rights disclosure under existing law;

(8)  the feasibility of different approaches, including opt-out and opt-in, to permit customers to direct that confidential information not be shared with affiliates and nonaffiliated third parties; and

(9)  the feasibility of restricting sharing of information for specific uses or of permitting customers to direct the uses for which information may be shared.

(b)  CONSULTATION.--The Secretary shall consult with representatives of State insurance authorities designated by the National Association of Insurance Commissioners, and also with financial services industry, consumer organizations and privacy groups, and other representatives of the general public, in formulating and conducting the study required by subsection (a).

(c)  REPORT.--On or before January 1, 2002, the Secretary shall submit a report to the Congress containing the findings and conclusions of the study required under subsection (a), together with such recommendations for legislative or administrative action as may be appropriate.

[Codified to 15 U.S.C. 6808]

[Source:  Section 508 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1443), effective November 12, 1999]

SEC. 509. DEFINITIONS.

As used in this subtitle:

(1)  FEDERAL BANKING AGENCY.--The term "Federal banking agency" has the same meaning as given in section 3 of the FEDERAL DEPOSIT INSURANCE ACT.

(2)  FEDERAL FUNCTIONAL REGULATOR.--The term "Federal functional regulator" means--

(A)  the Board of Governors of the Federal Reserve System;

(B)  the Office of the Comptroller of the Currency;

(C)  the Board of Directors of the Federal Deposit Insurance Corporation;

(D)  the Director of the Office of Thrift Supervision;

(E)  the National Credit Union Administration Board; and

(F)  the Securities and Exchange Commission.

(3)  FINANCIAL INSTITUTION.--

(A)  IN GENERAL.--The term "financial institution" means any institution the business of which is engaging in financial activities as described in section 4(k) of the Bank Holding Company Act of 1956.

(B)  PERSONS SUBJECT TO CFTC REGULATION.--Notwithstanding subparagraph (A), the term "financial institution" does not include any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act.

(C)  FARM CREDIT INSTITUTIONS.--Notwithstanding subparagraph (A), the term "financial institution" does not include the Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971.

(D)  OTHER SECONDARY MARKET INSTITUTIONS.--Notwithstanding subparagraph (A), the term "financial institution" does not include institutions chartered by Congress specifically to engage in transactions described in section 502(e)(1)(C), as long as such institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party.

(4)  NONPUBLIC PERSONAL INFORMATION.--

(A)  The term "nonpublic personal information" means personally identifiable financial information--

(i)  provided by a consumer to a financial institution;

(ii)  resulting from any transaction with the consumer or any service performed for the consumer; or

(iii)  otherwise obtained by the financial institution.

(B)  Such term does not include publicly available information, as such term is defined by the regulations prescribed under section 504.

(C)  Notwithstanding subparagraph (B), such term--

(i)  shall include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any nonpublic personal information other than publicly available information; but

(ii)  shall not include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any nonpublic personal information.

(5)  NONAFFILIATED THIRD PARTY.--The term "nonaffiliated third party" means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control with, the financial institution, but does not include a joint employee of such institution.

(6)  AFFILIATE.--The term "affiliate" means any company that controls, is controlled by, or is under common control with another company.

(7)  NECESSARY TO EFFECT, ADMINISTER, OR ENFORCE.--The term "as necessary to effect, administer, or enforce the transaction" means--

(A)  the disclosure is required, or is a usual, appropriate, or acceptable method, to carry out the transaction or the product or service business of which the transaction is a part, and record or service or maintain the consumer's account in the ordinary course of providing the financial service or financial product, or to administer or service benefits or claims relating to the transaction or the product or service business of which it is a part, and includes--

(i)  providing the consumer or the consumer's agent or broker with a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product; and

(ii)  the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial institution or any other party;

(B)  the disclosure is required, or is one of the lawful or appropriate methods, to enforce the rights of the financial institution or of other persons engaged in carrying out the financial transaction, or providing the product or service;

(C)  the disclosure is required, or is a usual, appropriate, or acceptable method, for insurance underwriting at the consumer's request or for reinsurance purposes, or for any of the following purposes as they relate to a consumer's insurance: Account administration, reporting, investigating, or preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by Federal or State law; or

(D)  the disclosure is required, or is a usual, appropriate or acceptable method, in connection with--

(i)  the authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit or other payment card, check, or account number, or by other payment means;

(ii)  the transfer of receivables, accounts or interests therein; or

(iii)  the audit of debit, credit or other payment information.

(8)  STATE INSURANCE AUTHORITY.--The term "State insurance authority" means, in the case of any person engaged in providing insurance, the State insurance authority of the State in which the person is domiciled.

(9)  CONSUMER.--The term "consumer" means an individual who obtains, from a financial institution, financial products or services which are to be used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

(10)  JOINT AGREEMENT.--The term "joint agreement" means a formal written contract pursuant to which two or more financial institutions jointly offer, endorse, or sponsor a financial product or service, and as may be further defined in the regulations prescribed under section 504.

(11)  CUSTOMER RELATIONSHIP.--The term "time of establishing a customer relationship" shall be defined by the regulations prescribed under section 504, and shall, in the case of a financial institution engaged in extending credit directly to consumers to finance purchases of goods or services, mean the time of establishing the credit relationship with the consumer.

[Codified to 15 U.S.C. 6809]

[Source:  Section 509 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1443), effective November 12, 1999]

SEC. 510.  EFFECTIVE DATE.

This subtitle shall take effect 6 months after the date on which rules are required to be prescribed under section 504(a)(3), except--

(1)  to the extent that a later date is specified in the rules prescribed under section 504; and

(2)  that sections 504 and 506 shall be effective upon enactment.

[Codified to 15 U.S.C. 6801 nt]

[Source:  Section 510 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1445), effective November 12, 1999]

Subtitle B—Fraudulent Access to Financial Information

SEC. 521.  PRIVACY PROTECTION FOR CUSTOMER INFORMATION OF FINANCIAL INSTITUTIONS.

(a)  PROHIBITION ON OBTAINING CUSTOMER INFORMATION BY FALSE PRETENSES.--It shall be a violation of this subtitle for any person to obtain or attempt to obtain, or cause to be disclosed or attempt to cause to be disclosed to any person, customer information of a financial institution relating to another person--

(1)  by making a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of a financial institution;

(2)  by making a false, fictitious, or fraudulent statement or representation to a customer of a financial institution; or

(3)  by providing any document to an officer, employee, or agent of a financial institution, knowing that the document is forged, counterfeit, lost, or stolen, was fraudulently obtained, or contains a false, fictitious, or fraudulent statement or representation.

(b)  PROHIBITION ON SOLICITATION OF A PERSOON TO OBTAIN CUSTOMER INFORMATION FROM FINANCIAL INSTITUTION UNDER FALSE PRETENSES.--It shall be a violation of this subtitle to request a person to obtain customer information of a financial institution, knowing that the person will obtain, or attempt to obtain, the information from the institution in any manner described in subsection (a).

(c)  NONAPPLICABILITY TO LAW ENFORCEMENT AGENCIES.--No provision of this section shall be construed so as to prevent any action by a law enforcement agency, or any officer, employee, or agent of such agency, to obtain customer information of a financial institution in connection with the performance of the official duties of the agency.

(d)  NONAPPLICABILITY TO FINANCIAL INSTITUTIONS IN CERTAIN CASES.--No provision of this section shall be construed so as to prevent any financial institution, or any officer, employee, or agent of a financial institution, from obtaining customer information of such financial institution in the course of--

(1)  testing the security procedures or systems of such institution for maintaining the confidentiality of customer information;

(2)  investigating allegations of misconduct or negligence on the part of any officer, employee, or agent of the financial institution; or

(3)  recovering customer information of the financial institution which was obtained or received by another person in any manner described in subsection (a) or (b).

(e)  NONAPPLICABILITY TO INSURANCE INSTITUTIONS FOR INVESTIGATION OF INSURANCE FRAUD.--No provision of this section shall be construed so as to prevent any insurance institution, or any officer, employee, or agency of an insurance institution, from obtaining information as part of an insurance investigation into criminal activity, fraud, material misrepresentation, or material nondisclosure that is authorized for such institution under State law, regulation, interpretation, or order.

(f)  NONAPPLICABILITY TO CERTAIN TYPES OF CUSTOMER INFORMATION OF FINANCIAL INSTITUTIONS.--No provision of this section shall be construed so as to prevent any person from obtaining customer information of a financial institution that otherwise is available as a public record filed pursuant to the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934).

(g)  NONAPPLICABILITY TO COLLECTION OF CHILD SUPPORT JUDGMENTS.--No provision of this section shall be construed to prevent any State-licensed private investigator, or any officer, employee, or agent of such private investigator, from obtaining customer information of a financial institution, to the extent reasonably necessary to collect child support from a person adjudged to have been delinquent in his or her obligations by a Federal or State court, and to the extent that such action by a State-licensed private investigator is not unlawful under any other Federal or State law or regulation, and has been authorized by an order or judgment of a court of competent jurisdiction.

[Codified to 15 U.S.C. 6821]

[Source:  Section 521 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1446), effective November 12, 1999]

SEC. 522.  ADMINISTRATIVE ENFORCEMENT.

(a)  ENFORCEMENT BY FEDERAL TRADE COMMISSION.--Except as provided in subsection (b), compliance with this subtitle shall be enforced by the Federal Trade Commission in the same manner and with the same power and authority as the Commission has under the Fair Debt Collection Practices Act to enforce compliance with such Act.

(b)  ENFORCEMENT BY OTHER AGENCIES IN CERTAIN CASES.--

(1)  IN GENERAL.--Compliance with this subtitle shall be enforced under--

(A)  section 8 of the Federal Deposit Insurance Act, in the case of--

(i)  national banks, and Federal branches and Federal agencies of foreign banks, by the Office of the Comptroller of the Currency;

(ii)  member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act, by the Board;

(iii)  banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System and national nonmember banks) and insured State branches of foreign banks, by the Board of Directors of the Federal Deposit Insurance Corporation; and

(iv)  savings associations the deposits of which are insured by the Federal Deposit Insurance Corporation, by the Director of the Office of Thrift Supervision; and

(B)  the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union.

(2)  VIOLATIONS OF THIS SUBTITLE TREATED AS VIOLATIONS OF OTHER LAWS.--For the purpose of the exercise by any agency referred to in paragraph (1) of its powers under any Act referred to in that paragraph, a violation of this subtitle shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in paragraph (1), each of the agencies referred to in that paragraph may exercise, for the purpose of enforcing compliance with this subtitle, any other authority conferred on such agency by law.

[Codified to 15 U.S.C. 6822]

[Source:  Section 522 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1447), effective November 12, 1999]

SEC. 523.  CRIMINAL PENALTY.

(a)  IN GENERAL.--Whoever knowingly and intentionally violates, or knowingly and intentionally attempts to violate, section 521 shall be fined in accordance with title 18, United States Code, or imprisoned for not more than 5 years, or both.

(b)  ENHANCED PENALTY FOR AGGRAVATED CASES.--Whoever violates, or attempts to violate section 521 while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not more than 10 years, or both.

[Codified to 15 U.S.C. 6823]


[Source:  Section 523 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1448), effective November 12, 1999]

SEC. 524.  RELATION TO STATE LAWS.

(a)  IN GENERAL.--This subtitle shall not be construed as superseding, altering, or affecting the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that such statutes, regulations, orders, or interpretations are inconsistent with the provisions of this subtitle, and then only to the extent of the inconsistency.

(b)  GREATER PROTECTION UNDER STATE LAW.--For purposes of this section, a State statute, regulation, order, or interpretation is not inconsistent with the provisions of this subtitle if the protection such statute, regulation, order, or interpretation affords any person is greater than the protection provided under this subtitle as determined by the Federal Trade Commission, after consultation with the agency or authority with jurisdiction under section 522 of either the person that initiated the complaint or that is the subject of the complaint, on its own motion or upon the petition of any interested party.

[Codified to 15 U.S.C. 6824]

[Source:  Section 524 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1448), effective November 12, 1999]

SEC. 525.  AGENCY GUIDANCE.

In furtherance of the objectives of this subtitle, each Federal banking agency (as defined in section 3(z) of the Federal Deposit Insurance Act), the National Credit Union Administration, and the Securities and Exchange Commission or self-regulatory organizations, as appropriate, shall review regulations and guidelines applicable to financial institutions under their respective jurisdictions and shall prescribe such revisions to such regulations and guidelines as may be necessary to ensure that such financial institutions have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer financial information and to deter and detect activities proscribed under section 521.

[Codified to 15 U.S.C. 6825]

[Source:  Section 525 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1448), effective November 12, 1999]

SEC. 526.  REPORTS.

(a)  REPORT TO THE CONGRESS.--Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General, in consultation with the Federal Trade Commission, Federal banking agencies, the National Credit Union Administration, the Securities and Exchange Commission, appropriate Federal law enforcement agencies, and appropriate State insurance regulators, shall submit to the Congress a report on the following:

(1)  The efficacy and adequacy of the remedies provided in this subtitle in addressing attempts to obtain financial information by fraudulent means or by false pretenses.

(2)  Any recommendations for additional legislative or regulatory action to address threats to the privacy of financial information created by attempts to obtain information by fraudulent means or false pretenses.

(b)  ANNUAL REPORT BY ADMINISTERING AGENCIES.--The Federal Trade Commission and the Attorney General shall submit to Congress an annual report on number and disposition of all enforcement actions taken pursuant to this subtitle.

[Codified to 15 U.S.C. 6826]

[Source:  Section 526 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1448), effective November 12, 1999]

SEC. 527.  DEFINITIONS.

For purposes of this subtitle, the following definitions shall apply:

(1)  CUSTOMER.--The term "customer" means, with respect to a financial institution, any person (or authorized representative of a person) to whom the financial institution provides a product or service, including that of acting as a fiduciary.

(2)  CUSTOMER INFORMATION OF A FINANCIAL INSTITUTION.--The term "customer information of a financial institution" means any information maintained by or for a financial institution which is derived from the relationship between the financial institution and a customer of the financial institution and is identified with the customer.

(3)  DOCUMENT.--The term "document" means any information in any form.

(4)  FINANCIAL INSTITUTION.--

(A)  IN GENERAL.--The term "financial institution" means any institution engaged in the business of providing financial services to customers who maintain a credit, deposit, trust, or other financial account or relationship with the institution.

(B)  CERTAIN FINANCIAL INSTITUTIONS SPECIFICALLY INCLUDED.--The term "financial institution" includes any depository institution (as defined in section 19(b)(1)(A) of the Federal Reserve Act), any broker or dealer, any investment adviser or investment company, any insurance company, any loan or finance company, any credit card issuer or operator of a credit card system, and any consumer reporting agency that compiles and maintains files on consumers on a nationwide basis (as defined in section 603(p) of the Consumer Credit Protection Act).

(C)  SECURITIES INSTITUTIONS.--For purposes of subparagraph (B)--

(i)  the terms "broker" and "dealer" have the same meanings as given in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c);

(ii)  the term "investment adviser" has the same meaning as given in section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b--2(a)); and

(iii)  the term "investment company" has the same meaning as given in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a--3).

(D)  CERTAIN PERSONS AND ENTITIES SPECIFICALLY EXCLUDED.--The term "financial institution" does not include any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act and does not include the Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971.

(E)  FURTHER DEFINITION BY REGULATION.--The Federal Trade Commission, after consultation with Federal banking agencies and the Securities and Exchange Commission, may prescribe regulations clarifying or describing the types of institutions which shall be treated as financial institutions for purposes of this subtitle.

[Codified to 15 U.S.C. 6827]

[Source:  Section 527 of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1449), effective November 12, 1999]

TITLE VII—OTHER PROVISIONS

Subtitle A—ATM Fee Reform

SEC. 701.  SHORT TITLE.

This subtitle may be cited as the "ATM Fee Reform Act of 1999".

[Codified to 12 U.S.C. 1601 nt]

[Source:  Section 701 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1463), effective November 12, 1999]

SEC. 704.  FEASIBILITY STUDY.

(a)  IN GENERAL.--The Comptroller General of the United States shall conduct a study of the feasibility of requiring, in connection with any electronic fund transfer initiated by a consumer through the use of an automated teller machine--

(1)  a notice to be provided to the consumer before the consumer is irrevocably committed to completing the transaction, which clearly states the amount of any fee that will be imposed upon the consummation of the transaction by--

(A)  any automated teller machine operator (as defined in section 904(d)(3)(D)(i) of the Electronic Fund Transfer Act) involved in the transaction;

(B)  the financial institution holding the account of the consumer;

(C)  any national, regional, or local network utilized to effect the transaction; and

(D)  any other party involved in the transfer; and

(2)  the consumer to elect to consummate the transaction after receiving the notice described in paragraph (1).

(b)  FACTORS TO BE CONSIDERED.--In conducting the study required under subsection (a) with regard to the notice requirement described in such subsection, the Comptroller General shall consider the following factors:

(1)  The availability of appropriate technology.

(2)  Implementation and operating costs.

(3)  The competitive impact any such notice requirement would have on various sizes and types of institutions, if implemented.

(4)  The period of time that would be reasonable for implementing any such notice requirement.

(5)  The extent to which consumers would benefit from any such notice requirement.

(6)  Any other factor the Comptroller General determines to be appropriate in analyzing the feasibility of imposing any such notice requirement.

(c)  REPORT TO THE CONGRESS.--Before the end of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress containing--

(1)  the findings and conclusions of the Comptroller General in connection with the study required under subsection (a); and

(2)  the recommendation of the Comptroller General with regard to the question of whether a notice requirement described in subsection (a) should be implemented and, if so, the manner in which such requirement should be implemented.

[Source:  Section 704 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1464), effective November 12, 1999]

Subtitle B—Community Reinvestment

SEC. 713.  FEDERAL RESERVE BOARD STUDY OF CRA LENDING.

The Board of Governors of the Federal Reserve System shall conduct a comprehensive study, in consultation with the Chairman and Ranking Member of the Committee on Banking and Financial Services of the House of Representatives and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate, of the Community Reinvestment Act of 1977, which shall focus on--

(1)  the default rates;

(2)  the delinquency rates; and

(3)  the profitability;

of loans made in conformity with such Act, and report on the study to such Committees not later than March 15, 2000. Such report and supporting data shall also be made available by the Board of Governors of the Federal Reserve System to the public.

[Source:  Section 713 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1469), effective November 12, 1999]

SEC. 714.  PRESERVING THE COMMUNITY REINVESTMENT ACT OF 1977.

Nothing in this Act shall be construed to repeal any provision of the Community Reinvestment Act of 1977.

[Codified to 12 U.S.C. 1811 nt]

[Source:  Section 714 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1470), effective November 12, 1999]

SEC. 715.  RESPONSIVENESS TO COMMUNITY NEEDS FOR FINANCIAL SERVICES.

(a)  STUDY.--The Secretary of the Treasury, in consultation with the Federal banking agencies (as defined in section 3(z) of the Federal Deposit Insurance Act), shall conduct a study of the extent to which adequate services are being provided as intended by the Community Reinvestment Act of 1977, including services in low- and moderate-income neighborhoods and for persons of modest means, as a result of the enactment of this Act.

(b)  REPORTS.--

(1)  IN GENERAL.--The Secretary of the Treasury shall--

(A)  before March 15, 2000, submit a baseline report to the Congress on the study conducted pursuant to subsection (a); and

(B)  before the end of the 2-year period beginning on the date of the enactment of this Act, in consultation with the Federal banking agencies, submit a final report to the Congress on the study conducted pursuant to subsection (a).

(2)  RECOMMENDATIONS.--The final report submitted under paragraph (1)(B) shall include such recommendations as the Secretary determines to be appropriate for administrative and legislative action with respect to institutions covered under the Community Reinvestment Act of 1977.

[Codified to 12 U.S.C. 2901 nt]

[Source:  Section 715 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1470), effective November 12, 1999]


Subtitle C—Other Regulatory
Improvements

SEC. 722.  "PLAIN LANGUAGE" REQUIREMENT FOR FEDERAL BANKING AGENCY RULES.

(a)  IN GENERAL.--Each Federal banking agency shall use plain language in all proposed and final rulemakings published by the agency in the Federal Register after January 1, 2000.

(b)  REPORT.--Not later than March 1, 2001, each Federal banking agency shall submit to the Congress a report that describes how the agency has complied with subsection (a).

(c)  DEFINITION.--For purposes of this section, the term "Federal banking agency" has the meaning given that term in section 3 of the Federal Deposit Insurance Act.

[Codified to 12 U.S.C. 4809]

[Source:  Section 722 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1471), effective November 12, 1999]

SEC. 729.  STUDY AND REPORT ON ADAPTING EXISTING LEGISLATIVE REQUIREMENTS TO ONLINE BANKING AND LENDING.

(a)  STUDY REQUIRED.--The Federal banking agencies shall conduct a study of banking regulations regarding the delivery of financial services, including those regulations that may assume that there will be person-to-person contact during the course of a financial services transaction, and report their recommendations on adapting those existing requirements to online banking and lending.

(b)  REPORT REQUIRED.--Before the end of the 2-year period beginning on the date of the enactment of this Act, the Federal banking agencies shall submit a report to the Congress on the findings and conclusions of the agencies with respect to the study required under subsection (a), together with such recommendations for legislative or regulatory action as the agencies may determine to be appropriate.

(c)  DEFINITION.--For purposes of this section, the term "Federal banking agencies" means each Federal banking agency (as defined in section 3(z) of the Federal Deposit Insurance Act).

[Codified to 12 U.S.C. 4801 nt]

[Source:  Section 729 of title VII of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1476), effective November 12, 1999]

1So in original. Should probably be followed by a comma. Go back to Text


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