12 U.S.C. § 5562 — Investigations and administrative dis-

Page 1981 TITLE 12—BANKS AND BANKING § 5562 1 See References in Text note below. 1 See References in Text note below. insurance regulator under State law to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by such commission or regulator. (Pub. L. 111–203, title X, § 1042, July 21, 2010, 124 Stat. 2012.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsecs. (a), (b)(1)(A), and (d)(2), (3), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protec- tion Act of 2010, which enacted this subchapter and en- acted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1048 of Pub. L. 111–203, set out as a note under section 5551 of this title. § 5553. Preservation of existing contracts This title,1 and regulations, orders, guidance, and interpretations prescribed, issued, or estab- lished by the Bureau, shall not be construed to alter or affect the applicability of any regula- tion, order, guidance, or interpretation pre- scribed, issued, and established by the Comp- troller of the Currency or the Director of the Of- fice of Thrift Supervision regarding the applica- bility of State law under Federal banking law to any contract entered into on or before July 21, 2010, by national banks, Federal savings associa- tions, or subsidiaries thereof that are regulated and supervised by the Comptroller of the Cur- rency or the Director of the Office of Thrift Su- pervision, respectively. (Pub. L. 111–203, title X, § 1043, July 21, 2010, 124 Stat. 2014.) Editorial Notes REFERENCES IN TEXT This title, referred to in text, is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Con- sumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed nu- merous other sections and notes in the Code. For com- plete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1048 of Pub. L. 111–203, set out as a note under section 5551 of this title. PART E—ENFORCEMENT POWERS § 5561. Definitions For purposes of this part, the following defini- tions shall apply: (1) Bureau investigation The term ‘‘Bureau investigation’’ means any inquiry conducted by a Bureau investigator for the purpose of ascertaining whether any person is or has been engaged in any conduct that is a violation, as defined in this section. (2) Bureau investigator The term ‘‘Bureau investigator’’ means any attorney or investigator employed by the Bu- reau who is charged with the duty of enforcing or carrying into effect any Federal consumer financial law. (3) Custodian The term ‘‘custodian’’ means the custodian or any deputy custodian designated by the Bu- reau. (4) Documentary material The term ‘‘documentary material’’ includes the original or any copy of any book, docu- ment, record, report, memorandum, paper, communication, tabulation, chart, logs, elec- tronic files, or other data or data compilations stored in any medium. (5) Violation The term ‘‘violation’’ means any act or omission that, if proved, would constitute a violation of any provision of Federal consumer financial law. (Pub. L. 111–203, title X, § 1051, July 21, 2010, 124 Stat. 2018.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–203, title X, § 1058, July 21, 2010, 124 Stat. 2035, provided that: ‘‘This subtitle [subtitle E (§§ 1051–1058), enacting this part] shall become effective on the designated transfer date.’’ [The term ‘‘designated transfer date’’ is defined in section 5481(9) of this title as the date established under section 5582 of this title.] § 5562. Investigations and administrative dis- covery (a) Joint investigations (1) In general The Bureau or, where appropriate, a Bureau investigator, may engage in joint investiga- tions and requests for information, as author- ized under this title.1 (2) Fair lending The authority under paragraph (1) includes matters relating to fair lending, and where ap- propriate, joint investigations with, and re- quests for information from, the Secretary of Housing and Urban Development, the Attor- ney General of the United States, or both. (b) Subpoenas (1) In general The Bureau or a Bureau investigator may issue subpoenas for the attendance and testi- mony of witnesses and the production of rel- evant papers, books, documents, or other ma- terial in connection with hearings under this title.1 (2) Failure to obey In the case of contumacy or refusal to obey a subpoena issued pursuant to this paragraph Page 1982 TITLE 12—BANKS AND BANKING § 5562 and served upon any person, the district court of the United States for any district in which such person is found, resides, or transacts business, upon application by the Bureau or a Bureau investigator and after notice to such person, may issue an order requiring such per- son to appear and give testimony or to appear and produce documents or other material. (3) Contempt Any failure to obey an order of the court under this subsection may be punished by the court as a contempt thereof. (c) Demands (1) In general Whenever the Bureau has reason to believe that any person may be in possession, custody, or control of any documentary material or tangible things, or may have any information, relevant to a violation, the Bureau may, be- fore the institution of any proceedings under the Federal consumer financial law, issue in writing, and cause to be served upon such per- son, a civil investigative demand requiring such person to— (A) produce such documentary material for inspection and copying or reproduction in the form or medium requested by the Bu- reau; (B) submit such tangible things; (C) file written reports or answers to ques- tions; (D) give oral testimony concerning docu- mentary material, tangible things, or other information; or (E) furnish any combination of such mate- rial, answers, or testimony. (2) Requirements Each civil investigative demand shall state the nature of the conduct constituting the al- leged violation which is under investigation and the provision of law applicable to such violation. (3) Production of documents Each civil investigative demand for the pro- duction of documentary material shall— (A) describe each class of documentary material to be produced under the demand with such definiteness and certainty as to permit such material to be fairly identified; (B) prescribe a return date or dates which will provide a reasonable period of time within which the material so demanded may be assembled and made available for inspec- tion and copying or reproduction; and (C) identify the custodian to whom such material shall be made available. (4) Production of things Each civil investigative demand for the sub- mission of tangible things shall— (A) describe each class of tangible things to be submitted under the demand with such definiteness and certainty as to permit such things to be fairly identified; (B) prescribe a return date or dates which will provide a reasonable period of time within which the things so demanded may be assembled and submitted; and (C) identify the custodian to whom such things shall be submitted. (5) Demand for written reports or answers Each civil investigative demand for written reports or answers to questions shall— (A) propound with definiteness and cer- tainty the reports to be produced or the questions to be answered; (B) prescribe a date or dates at which time written reports or answers to questions shall be submitted; and (C) identify the custodian to whom such reports or answers shall be submitted. (6) Oral testimony Each civil investigative demand for the giv- ing of oral testimony shall— (A) prescribe a date, time, and place at which oral testimony shall be commenced; and (B) identify a Bureau investigator who shall conduct the investigation and the cus- todian to whom the transcript of such inves- tigation shall be submitted. (7) Service Any civil investigative demand issued, and any enforcement petition filed, under this sec- tion may be served— (A) by any Bureau investigator at any place within the territorial jurisdiction of any court of the United States; and (B) upon any person who is not found with- in the territorial jurisdiction of any court of the United States— (i) in such manner as the Federal Rules of Civil Procedure prescribe for service in a foreign nation; and (ii) to the extent that the courts of the United States have authority to assert ju- risdiction over such person, consistent with due process, the United States Dis- trict Court for the District of Columbia shall have the same jurisdiction to take any action respecting compliance with this section by such person that such dis- trict court would have if such person were personally within the jurisdiction of such district court. (8) Method of service Service of any civil investigative demand or any enforcement petition filed under this sec- tion may be made upon a person, including any legal entity, by— (A) delivering a duly executed copy of such demand or petition to the individual or to any partner, executive officer, managing agent, or general agent of such person, or to any agent of such person authorized by ap- pointment or by law to receive service of process on behalf of such person; (B) delivering a duly executed copy of such demand or petition to the principal office or place of business of the person to be served; or (C) depositing a duly executed copy in the United States mails, by registered or cer- tified mail, return receipt requested, duly addressed to such person at the principal of- fice or place of business of such person. Page 1983 TITLE 12—BANKS AND BANKING § 5562 (9) Proof of service (A) In general A verified return by the individual serving any civil investigative demand or any en- forcement petition filed under this section setting forth the manner of such service shall be proof of such service. (B) Return receipts In the case of service by registered or cer- tified mail, such return shall be accom- panied by the return post office receipt of delivery of such demand or enforcement pe- tition. (10) Production of documentary material The production of documentary material in response to a civil investigative demand shall be made under a sworn certificate, in such form as the demand designates, by the person, if a natural person, to whom the demand is di- rected or, if not a natural person, by any per- son having knowledge of the facts and cir- cumstances relating to such production, to the effect that all of the documentary material re- quired by the demand and in the possession, custody, or control of the person to whom the demand is directed has been produced and made available to the custodian. (11) Submission of tangible things The submission of tangible things in re- sponse to a civil investigative demand shall be made under a sworn certificate, in such form as the demand designates, by the person to whom the demand is directed or, if not a nat- ural person, by any person having knowledge of the facts and circumstances relating to such production, to the effect that all of the tangible things required by the demand and in the possession, custody, or control of the per- son to whom the demand is directed have been submitted to the custodian. (12) Separate answers Each reporting requirement or question in a civil investigative demand shall be answered separately and fully in writing under oath, un- less it is objected to, in which event the rea- sons for the objection shall be stated in lieu of an answer, and it shall be submitted under a sworn certificate, in such form as the demand designates, by the person, if a natural person, to whom the demand is directed or, if not a natural person, by any person responsible for answering each reporting requirement or ques- tion, to the effect that all information re- quired by the demand and in the possession, custody, control, or knowledge of the person to whom the demand is directed has been sub- mitted. (13) Testimony (A) In general (i) Oath and recordation The examination of any person pursuant to a demand for oral testimony served under this subsection shall be taken before an officer authorized to administer oaths and affirmations by the laws of the United States or of the place at which the exam- ination is held. The officer before whom oral testimony is to be taken shall put the witness on oath or affirmation and shall personally, or by any individual acting under the direction of and in the presence of the officer, record the testimony of the witness. (ii) Transcription The testimony shall be taken steno- graphically and transcribed. (iii) Transmission to custodian After the testimony is fully transcribed, the officer investigator before whom the testimony is taken shall promptly trans- mit a copy of the transcript of the testi- mony to the custodian. (B) Parties present Any Bureau investigator before whom oral testimony is to be taken shall exclude from the place where the testimony is to be taken all other persons, except the person giving the testimony, the attorney for that person, the officer before whom the testimony is to be taken, an investigator or representative of an agency with which the Bureau is en- gaged in a joint investigation, and any ste- nographer taking such testimony. (C) Location The oral testimony of any person taken pursuant to a civil investigative demand shall be taken in the judicial district of the United States in which such person resides, is found, or transacts business, or in such other place as may be agreed upon by the Bureau investigator before whom the oral testimony of such person is to be taken and such person. (D) Attorney representation (i) In general Any person compelled to appear under a civil investigative demand for oral testi- mony pursuant to this section may be ac- companied, represented, and advised by an attorney. (ii) Authority The attorney may advise a person de- scribed in clause (i), in confidence, either upon the request of such person or upon the initiative of the attorney, with respect to any question asked of such person. (iii) Objections A person described in clause (i), or the attorney for that person, may object on the record to any question, in whole or in part, and such person shall briefly state for the record the reason for the objection. An objection may properly be made, re- ceived, and entered upon the record when it is claimed that such person is entitled to refuse to answer the question on grounds of any constitutional or other legal right or privilege, including the privilege against self-incrimination, but such person shall not otherwise object to or refuse to answer any question, and such person or attorney shall not otherwise in- terrupt the oral examination. Page 1984 TITLE 12—BANKS AND BANKING § 5562 (iv) Refusal to answer If a person described in clause (i) refuses to answer any question— (I) the Bureau may petition the dis- trict court of the United States pursuant to this section for an order compelling such person to answer such question; and (II) if the refusal is on grounds of the privilege against self-incrimination, the testimony of such person may be com- pelled in accordance with the provisions of section 6004 of title 18. (E) Transcripts For purposes of this subsection— (i) after the testimony of any witness is fully transcribed, the Bureau investigator shall afford the witness (who may be ac- companied by an attorney) a reasonable opportunity to examine the transcript; (ii) the transcript shall be read to or by the witness, unless such examination and reading are waived by the witness; (iii) any changes in form or substance which the witness desires to make shall be entered and identified upon the transcript by the Bureau investigator, with a state- ment of the reasons given by the witness for making such changes; (iv) the transcript shall be signed by the witness, unless the witness in writing waives the signing, is ill, cannot be found, or refuses to sign; and (v) if the transcript is not signed by the witness during the 30-day period following the date on which the witness is first af- forded a reasonable opportunity to exam- ine the transcript, the Bureau investigator shall sign the transcript and state on the record the fact of the waiver, illness, ab- sence of the witness, or the refusal to sign, together with any reasons given for the failure to sign. (F) Certification by investigator The Bureau investigator shall certify on the transcript that the witness was duly sworn by him or her and that the transcript is a true record of the testimony given by the witness, and the Bureau investigator shall promptly deliver the transcript or send it by registered or certified mail to the cus- todian. (G) Copy of transcript The Bureau investigator shall furnish a copy of the transcript (upon payment of rea- sonable charges for the transcript) to the witness only, except that the Bureau may for good cause limit such witness to inspec- tion of the official transcript of his testi- mony. (H) Witness fees Any witness appearing for the taking of oral testimony pursuant to a civil investiga- tive demand shall be entitled to the same fees and mileage which are paid to witnesses in the district courts of the United States. (d) Confidential treatment of demand material (1) In general Documentary materials and tangible things received as a result of a civil investigative de- mand shall be subject to requirements and procedures regarding confidentiality, in ac- cordance with rules established by the Bureau. (2) Disclosure to Congress No rule established by the Bureau regarding the confidentiality of materials submitted to, or otherwise obtained by, the Bureau shall be intended to prevent disclosure to either House of Congress or to an appropriate committee of the Congress, except that the Bureau is per- mitted to adopt rules allowing prior notice to any party that owns or otherwise provided the material to the Bureau and had designated such material as confidential. (e) Petition for enforcement (1) In general Whenever any person fails to comply with any civil investigative demand duly served upon him under this section, or whenever sat- isfactory copying or reproduction of material requested pursuant to the demand cannot be accomplished and such person refuses to sur- render such material, the Bureau, through such officers or attorneys as it may designate, may file, in the district court of the United States for any judicial district in which such person resides, is found, or transacts business, and serve upon such person, a petition for an order of such court for the enforcement of this section. (2) Service of process All process of any court to which application may be made as provided in this subsection may be served in any judicial district. (f) Petition for order modifying or setting aside demand (1) In general Not later than 20 days after the service of any civil investigative demand upon any per- son under subsection (b), or at any time before the return date specified in the demand, whichever period is shorter, or within such pe- riod exceeding 20 days after service or in ex- cess of such return date as may be prescribed in writing, subsequent to service, by any Bu- reau investigator named in the demand, such person may file with the Bureau a petition for an order by the Bureau modifying or setting aside the demand. (2) Compliance during pendency The time permitted for compliance with the demand in whole or in part, as determined proper and ordered by the Bureau, shall not run during the pendency of a petition under paragraph (1) at the Bureau, except that such person shall comply with any portions of the demand not sought to be modified or set aside. (3) Specific grounds A petition under paragraph (1) shall specify each ground upon which the petitioner relies in seeking relief, and may be based upon any failure of the demand to comply with the pro- visions of this section, or upon any constitu- tional or other legal right or privilege of such person. (g) Custodial control At any time during which any custodian is in custody or control of any documentary mate- Page 1985 TITLE 12—BANKS AND BANKING § 5563 1 See References in Text note below. rial, tangible things, reports, answers to ques- tions, or transcripts of oral testimony given by any person in compliance with any civil inves- tigative demand, such person may file, in the district court of the United States for the judi- cial district within which the office of such cus- todian is situated, and serve upon such custo- dian, a petition for an order of such court re- quiring the performance by such custodian of any duty imposed upon him by this section or rule promulgated by the Bureau. (h) Jurisdiction of court (1) In general Whenever any petition is filed in any dis- trict court of the United States under this sec- tion, such court shall have jurisdiction to hear and determine the matter so presented, and to enter such order or orders as may be required to carry out the provisions of this section. (2) Appeal Any final order entered as described in para- graph (1) shall be subject to appeal pursuant to section 1291 of title 28. (Pub. L. 111–203, title X, § 1052, July 21, 2010, 124 Stat. 2019.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsecs. (a)(1) and (b)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under sec- tion 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1058 of Pub. L. 111–203, set out as a note under section 5561 of this title. § 5563. Hearings and adjudication proceedings (a) In general The Bureau is authorized to conduct hearings and adjudication proceedings with respect to any person in the manner prescribed by chapter 5 of title 5 in order to ensure or enforce compli- ance with— (1) the provisions of this title,1 including any rules prescribed by the Bureau under this title; 1 and (2) any other Federal law that the Bureau is authorized to enforce, including an enumer- ated consumer law, and any regulations or order prescribed thereunder, unless such Fed- eral law specifically limits the Bureau from conducting a hearing or adjudication pro- ceeding and only to the extent of such limita- tion. (b) Special rules for cease-and-desist proceedings (1) Orders authorized (A) In general If, in the opinion of the Bureau, any cov- ered person or service provider is engaging or has engaged in an activity that violates a law, rule, or any condition imposed in writ- ing on the person by the Bureau, the Bureau may, subject to sections 5514, 5515, and 5516 of this title, issue and serve upon the cov- ered person or service provider a notice of charges in respect thereof. (B) Content of notice The notice under subparagraph (A) shall contain a statement of the facts consti- tuting the alleged violation or violations, and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist should issue against the covered person or service pro- vider, such hearing to be held not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an ear- lier or a later date is set by the Bureau, at the request of any party so served. (C) Consent Unless the party or parties served under subparagraph (B) appear at the hearing per- sonally or by a duly authorized representa- tive, such person shall be deemed to have consented to the issuance of the cease-and- desist order. (D) Procedure In the event of consent under subpara- graph (C), or if, upon the record, made at any such hearing, the Bureau finds that any violation specified in the notice of charges has been established, the Bureau may issue and serve upon the covered person or service provider an order to cease and desist from the violation or practice. Such order may, by provisions which may be mandatory or otherwise, require the covered person or service provider to cease and desist from the subject activity, and to take affirmative ac- tion to correct the conditions resulting from any such violation. (2) Effectiveness of order A cease-and-desist order shall become effec- tive at the expiration of 30 days after the date of service of an order under paragraph (1) upon the covered person or service provider con- cerned (except in the case of a cease-and-desist order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as pro- vided therein, except to such extent as the order is stayed, modified, terminated, or set aside by action of the Bureau or a reviewing court. (3) Decision and appeal Any hearing provided for in this subsection shall be held in the Federal judicial district or in the territory in which the residence or prin- cipal office or place of business of the person is located unless the person consents to an- other place, and shall be conducted in accord- ance with the provisions of chapter 5 of title 5. After such hearing, and within 90 days after the Bureau has notified the parties that the case has been submitted to the Bureau for final decision, the Bureau shall render its deci- sion (which shall include findings of fact upon