12 U.S.C. § 1831y — CRA sunshine requirements

Page 1197 TITLE 12—BANKS AND BANKING § 1831y like functions), or of any State securities commission (or any agency or office per- forming like functions), or other State au- thority under any State law. (2) Coordination with State law (A) In general Except as provided in subparagraph (B), in- surance customer protection regulations prescribed by a Federal banking agency under this section shall not apply to retail sales, solicitations, advertising, or offers of any insurance product by any depository in- stitution or to any person who is engaged in such activities at an office of such institu- tion or on behalf of the institution, in a State where the State has in effect statutes, regulations, orders, or interpretations, that are inconsistent with or contrary to the reg- ulations prescribed by the Federal banking agencies. (B) Preemption (i) In general If, with respect to any provision of the regulations prescribed under this section, the Board of Governors of the Federal Re- serve System, the Comptroller of the Cur- rency, and the Board of Directors of the Corporation determine jointly that the protection afforded by such provision for customers is greater than the protection provided by a comparable provision of the statutes, regulations, orders, or interpre- tations referred to in subparagraph (A) of any State, the appropriate State regu- latory authority shall be notified of such determination in writing. (ii) Considerations Before making a final determination under clause (i), the Federal agencies re- ferred to in clause (i) shall give appro- priate consideration to comments sub- mitted by the appropriate State regu- latory authorities relating to the level of protection afforded to consumers under State law. (iii) Federal preemption and ability of States to override Federal preemption If the Federal agencies referred to in clause (i) jointly determine that any provi- sion of the regulations prescribed under this section affords greater protections than a comparable State law, rule, regula- tion, order, or interpretation, those agen- cies shall send a written preemption notice to the appropriate State regulatory au- thority to notify the State that the Fed- eral provision will preempt the State pro- vision and will become applicable unless, not later than 3 years after the date of such notice, the State adopts legislation to override such preemption. (h) Non-discrimination against non-affiliated agents The Federal banking agencies shall ensure that the regulations prescribed pursuant to sub- section (a) shall not have the effect of discrimi- nating, either intentionally or unintentionally, against any person engaged in insurance sales or solicitations that is not affiliated with a deposi- tory institution. (Sept. 21, 1950, ch. 967, § 2[47], as added Pub. L. 106–102, title III, § 305, Nov. 12, 1999, 113 Stat. 1410.) § 1831y. CRA sunshine requirements (a) Public disclosure of agreements Any agreement (as defined in subsection (e)) entered into after November 12, 1999, by an in- sured depository institution or affiliate with a nongovernmental entity or person made pursu- ant to or in connection with the Community Re- investment Act of 1977 [12 U.S.C. 2901 et seq.] in- volving funds or other resources of such insured depository institution or affiliate— (1) shall be in its entirety fully disclosed, and the full text thereof made available to the appropriate Federal banking agency with su- pervisory responsibility over the insured de- pository institution and to the public by each party to the agreement; and (2) shall obligate each party to comply with this section. (b) Annual report of activity by insured deposi- tory institution Each insured depository institution or affil- iate that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with supervisory re- sponsibility over the insured depository institu- tion, not less frequently than once each year, such information as the Federal banking agency may by rule require relating to the following ac- tions taken by the party pursuant to the agree- ment during the preceding 12-month period: (1) Payments, fees, or loans made to any party to the agreement or received from any party to the agreement and the terms and con- ditions of the same. (2) Aggregate data on loans, investments, and services provided by each party in its community or communities pursuant to the agreement. (3) Such other pertinent matters as deter- mined by regulation by the appropriate Fed- eral banking agency with supervisory respon- sibility over the insured depository institu- tion. (c) Annual report of activity by nongovernmental entities (1) In general Each nongovernmental entity or person that is not an affiliate of an insured depository in- stitution and that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with su- pervisory responsibility over the insured de- pository institution that is a party to such agreement, not less frequently than once each year, an accounting of the use of funds re- ceived pursuant to each such agreement dur- ing the preceding 12-month period. (2) Submission to insured depository institu- tion A nongovernmental entity or person referred to in paragraph (1) may comply with the re- Page 1198 TITLE 12—BANKS AND BANKING § 1831y porting requirement in such paragraph by transmitting the report to the insured deposi- tory institution that is a party to the agree- ment, and such insured depository institution shall promptly transmit such report to the ap- propriate Federal banking agency with super- visory authority over the insured depository institution. (3) Information to be included The accounting referred to in paragraph (1) shall include a detailed, itemized list of the uses to which such funds have been made, in- cluding compensation, administrative ex- penses, travel, entertainment, consulting and professional fees paid, and such other cat- egories, as determined by regulation by the appropriate Federal banking agency with su- pervisory responsibility over the insured de- pository institution. (d) Applicability Subsections (b) and (c) shall not apply with re- spect to any agreement entered into before the end of the 6-month period beginning on Novem- ber 12, 1999. (e) Definitions (1) Agreement For purposes of this section, the term ‘‘agreement’’— (A) means— (i) any written contract, written ar- rangement, or other written understanding that provides for cash payments, grants, or other consideration with a value in excess of $10,000, or for loans the aggregate amount of principal of which exceeds $50,000, annually (or the sum of all such agreements during a 12-month period with an aggregate value of cash payments, grants, or other consideration in excess of $10,000, or with an aggregate amount of loan principal in excess of $50,000); or (ii) a group of substantively related con- tracts with an aggregate value of cash pay- ments, grants, or other consideration in excess of $10,000, or with an aggregate amount of loan principal in excess of $50,000, annually; made pursuant to, or in connection with, the fulfillment of the Community Reinvestment Act of 1977 [12 U.S.C. 2901 et seq.], at least 1 party to which is an insured depository in- stitution or affiliate thereof, whether orga- nized on a profit or not-for-profit basis; and (B) does not include— (i) any individual mortgage loan; (ii) any specific contract or commitment for a loan or extension of credit to individ- uals, businesses, farms, or other entities, if the funds are loaned at rates not substan- tially below market rates and if the pur- pose of the loan or extension of credit does not include any re-lending of the borrowed funds to other parties; or (iii) any agreement entered into by an insured depository institution or affiliate with a nongovernmental entity or person who has not commented on, testified about, or discussed with the institution, or otherwise contacted the institution, con- cerning the Community Reinvestment Act of 1977 [12 U.S.C. 2901 et seq.]. (2) Fulfillment of CRA For purposes of subparagraph (A), the term ‘‘fulfillment’’ means a list of factors that the appropriate Federal banking agency deter- mines have a material impact on the agency’s decision— (A) to approve or disapprove an applica- tion for a deposit facility (as defined in sec- tion 803 of the Community Reinvestment Act of 1977 [12 U.S.C. 2902]); or (B) to assign a rating to an insured deposi- tory institution under section 807 of the Community Reinvestment Act of 1977 [12 U.S.C. 2906]. (f) Violations (1) Violations by persons other than insured depository institutions or their affiliates (A) Material failure to comply If the party to an agreement described in subsection (a) that is not an insured deposi- tory institution or affiliate willfully fails to comply with this section in a material way, as determined by the appropriate Federal banking agency, the agreement shall be un- enforceable after the offending party has been given notice and a reasonable period of time to perform or comply. (B) Diversion of funds or resources If funds or resources received under an agreement described in subsection (a) have been diverted contrary to the purposes of the agreement for personal financial gain, the appropriate Federal banking agency with su- pervisory responsibility over the insured de- pository institution may impose either or both of the following penalties: (i) Disgorgement by the offending indi- vidual of funds received under the agree- ment. (ii) Prohibition of the offending indi- vidual from being a party to any agree- ment described in subsection (a) for a pe- riod of not to exceed 10 years. (2) Designation of successor nongovernmental party If an agreement described in subsection (a) is found to be unenforceable under this sub- section, the appropriate Federal banking agen- cy may assist the insured depository institu- tion in identifying a successor nongovern- mental party to assume the responsibilities of the agreement. (3) Inadvertent or de minimis reporting errors An error in a report filed under subsection (c) that is inadvertent or de minimis shall not subject the filing party to any penalty. (g) Rule of construction No provision of this section shall be construed as authorizing any appropriate Federal banking agency to enforce the provisions of any agree- ment described in subsection (a). (h) Regulations (1) In general Each appropriate Federal banking agency shall prescribe regulations, in accordance with Page 1199 TITLE 12—BANKS AND BANKING § 1831bb paragraph (4), requiring procedures reasonably designed to ensure and monitor compliance with the requirements of this section. (2) Protection of parties In carrying out paragraph (1), each appro- priate Federal banking agency shall— (A) ensure that the regulations prescribed by the agency do not impose an undue bur- den on the parties and that proprietary and confidential information is protected; and (B) establish procedures to allow any non- governmental entity or person who is a party to a large number of agreements de- scribed in subsection (a) to make a single or consolidated filing of a report under sub- section (c) to an insured depository institu- tion or an appropriate Federal banking agency. (3) Parties not subject to reporting require- ments The Board of Governors of the Federal Re- serve System may prescribe regulations— (A) to prevent evasions of subsection (e)(1)(B)(iii); and (B) to provide further exemptions under such subsection, consistent with the pur- poses of this section. (4) Coordination, consistency, and com- parability In carrying out paragraph (1), each appro- priate Federal banking agency shall consult and coordinate with the other such agencies for the purposes of assuring, to the extent pos- sible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies. (Sept. 21, 1950, ch. 967, § 2[48], as added Pub. L. 106–102, title VII, § 711, Nov. 12, 1999, 113 Stat. 1465.) Editorial Notes REFERENCES IN TEXT The Community Reinvestment Act of 1977, referred to in subsecs. (a) and (e)(1)(A), (B)(iii), is title VIII of Pub. L. 95–128, Oct. 12, 1977, 91 Stat. 1147, which is classified generally to chapter 30 (§ 2901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2901 of this title and Tables. § 1831z. Bi-annual FDIC survey and report on en- couraging use of depository institutions by the unbanked (a) Survey required (1) In general The Corporation shall conduct a bi-annual survey on efforts by insured depository insti- tutions to bring those individuals and families who have rarely, if ever, held a checking ac- count, a savings account or other type of transaction or check cashing account at an in- sured depository institution (hereafter in this section referred to as the ‘‘unbanked’’) into the conventional finance system. (2) Factors and questions to consider In conducting the survey, the Corporation shall take the following factors and questions into account: (A) To what extent do insured depository institutions promote financial education and financial literacy outreach? (B) Which financial education efforts ap- pear to be the most effective in bringing ‘‘unbanked’’ individuals and families into the conventional finance system? (C) What efforts are insured institutions making at converting ‘‘unbanked’’ money order, wire transfer, and international re- mittance customers into conventional ac- count holders? (D) What cultural, language and identifica- tion issues as well as transaction costs ap- pear to most prevent ‘‘unbanked’’ individ- uals from establishing conventional ac- counts? (E) What is a fair estimate of the size and worth of the ‘‘unbanked’’ market in the United States? (b) Reports The Chairperson of the Board of Directors shall submit a bi-annual report to the Com- mittee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate con- taining the Corporation’s findings and conclu- sions with respect to the survey conducted pur- suant to subsection (a), together with such rec- ommendations for legislative or administrative action as the Chairperson may determine to be appropriate. (Sept. 21, 1950, ch. 967, § 2[49], as added Pub. L. 109–173, § 7, Feb. 15, 2006, 119 Stat. 3609.) § 1831aa. Enforcement of agreements (a) In general Notwithstanding clause (i) or (ii) of section 1818(b)(6)(A) of this title or section 1831o(e)(2)(E)(i) of this title, the appropriate Federal banking agency for a depository institu- tion may enforce, under section 1818 of this title, the terms of— (1) any condition imposed in writing by the agency on the depository institution or an in- stitution-affiliated party in connection with any action on any application, notice, or other request concerning the depository institution; or (2) any written agreement entered into be- tween the agency and the depository institu- tion or an institution-affiliated party. (b) Receiverships and conservatorships After the appointment of the Corporation as the receiver or conservator for a depository in- stitution, the Corporation may enforce any con- dition or agreement described in paragraph (1) or (2) of subsection (a) imposed on or entered into with such institution or institution-affili- ated party through an action brought in an ap- propriate United States district court. (Sept. 21, 1950, ch. 967, § 2[50], as added Pub. L. 109–351, title VII, § 702(a), Oct. 13, 2006, 120 Stat. 1985.) § 1831bb. Capital requirements for certain acqui- sition, development, or construction loans (a) In general The appropriate Federal banking agencies may only require a depository institution to as-