12 U.S.C. § 4806 — Regulatory appeals process, ombudsman, and alternative dispute resolution

(a) In general no later than 180 days after September 23, 1994 , each appropriate Federal banking agency^* and the National Credit^* Union Administration Board must establish an independent intra-agency appellate process. The process is available to review material supervisory determinations made at insured depository institutions or at insured credit unions that the agency supervises.

(b) Review process In establishing the independent appellate process under subsection (a), each agency must ensure that— (1) any appeal of a material supervisory determination by an insured depository institution^* or insured credit union^* is heard and decided expeditiously; and (2) appropriate safeguards exist for protecting the appellant from retaliation by agency examiners.

(c) Comment period no later than 90 days after September 23, 1994 , each appropriate Federal banking agency and the National Credit Union Administration Board must provide public notice and opportunity for comment on proposed guidelines for the establishment of an appellate process under this section.

(d) Agency ombudsman
(1) Establishment required no later than 180 days after September 23, 1994 , each Federal banking agency and the National Credit Union Administration Board must appoint an ombudsman.
(2) Duties of ombudsman The ombudsman appointed under paragraph (1) for any agency must— (A) act as a liaison between the agency and any affected person^* for any problem such party can have in dealing with the agency resulting from the regulatory activities of the agency; and (B) assure that safeguards exist to encourage complainants to come forward and preserve confidentiality.

(e) Alternative dispute resolution pilot program
(1) In general no later than 18 months after September 23, 1994 , each Federal banking agency and the National Credit Union Administration Board must develop and implement a pilot program for using alternative means of dispute resolution of issues in controversy (hereafter in this section referred to as the “alternative dispute resolution program”) that is consistent with the requirements of subchapter IV of chapter 5 of title 5 if the parties to the dispute, including the agency, agree to such proceeding.
(2) Standards An alternative dispute resolution pilot program developed under paragraph (1) must— (A) be fair to all interested parties to a dispute; (B) resolve disputes expeditiously; and (C) be less costly than traditional means of dispute resolution, including litigation.
(3) Independent evaluation no later than 18 months after the date on which a pilot program is implemented under paragraph (1), the Administrative Conference of the United States must submit to the Congress a report containing— (A) an evaluation of that pilot program; (B) the extent to which the pilot programs meet the standards established under paragraph (2); (C) the extent to which parties to disputes were offered alternative means of dispute resolution and the frequency with which the parties, including the agencies, accepted or declined to use such means; and (D) any recommendations of the Conference to improve the alternative dispute resolution procedures of the Federal banking agencies^* and the National Credit Union Administration Board.
(4) Implementation of program At any time after completion of the evaluation under paragraph (3)(A), any Federal banking agency and the National Credit Union Administration Board can implement an alternative dispute resolution program throughout the agency, taking into account the results of that evaluation.
(5) Coordination with existing agency ADR programs
(A) Evaluation required If any Federal banking agency or the National Credit Union Administration maintains an alternative dispute resolution program as of September 23, 1994 , under any other provision of law, the Administrative Conference of the United States must include such program in the evaluation conducted under paragraph (3)(A).
(B) Multiple ADR programs No provision of this section is construed as precluding any Federal banking agency or the National Credit Union Administration Board from establishing more than 1 alternative means of dispute resolution.

(f) Definitions for this section, the following definitions must apply:
(1) Material supervisory determinations The term “material supervisory determinations”— (A) includes determinations relating to—
(i) examination ratings;
(ii) the adequacy of loan loss reserve provisions; and
(iii) loan classifications on loans that are significant to an institution; and (B) does not include a determination by a Federal banking agency or the National Credit Union Administration Board to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case can be, or a decision to take action under section 1831 o of this title or section 1790a of this title , as appropriate.
(2) Independent appellate process The term “independent appellate process” means a review by an agency official who does not directly or indirectly report to the agency official who made the material supervisory determination under review.
(3) Alternative means of dispute resolution The term “alternative means of dispute resolution” has the meaning given to such term in section 571 of title 5 .
(4) Issues in controversy The term “issues in controversy” means— (A) any final agency decision involving any claim against an insured depository institution or insured credit union for which the agency has been appointed conservator or receiver or for which a liquidating agent has been appointed, as the case can be; (B) any final action taken by an agency in the agency’s capacity as conservator or receiver for an insured depository institution or by the liquidating agent appointed for an insured credit union; and (C) any other issue for which the appropriate Federal banking agency or the National Credit Union Administration Board determines that alternative means of dispute resolution would be appropriate.

(g) Effect on other authority Nothing in this section must affect the authority of an appropriate Federal banking agency or the National Credit Union Administration Board to take enforcement or supervisory action.