12 U.S.C. § 1831t — Depository institutions lacking Federal deposit insurance

(a) Annual independent audit of private deposit insurers.
(1) A private deposit insurer must obtain an annual audit by an independent auditor using generally accepted auditing standards. The audit must determine whether it follows generally accepted accounting principles and has set aside enough reserves for losses.
(2)(A) The insurer must give the audit report to each institution whose deposits it insures within 14 days after completion; to the appropriate supervisor of each State^* where such an institution receives deposits within 7 days; and, for an insured institution described in subsection (e)(2)(A) that belongs to a Federal home loan bank^*, to the Federal Housing Finance Agency within 7 days. (B) An insured institution must give the report, on request, to any current or prospective customer.
(3) The appropriate State supervisors may examine and enforce compliance with this subsection under their regulatory authority.
(b) Required disclosures. A depository institution without Federal deposit insurance operating in the United States must (1) conspicuously state on every periodic account statement, signature card, passbook, certificate of deposit, or share certificate that it is not federally insured and that the Federal Government does not guarantee repayment if it fails; (2) clearly and conspicuously give the same “not federally insured” notice in all advertising, at every deposit-taking station or window at its main office and branches (but not ATMs or point-of-sale terminals), and on its main Internet page. The notice is not required on a name, logo, or contact-information item that does not promote products or services, or on a small practical item that does not mention deposit products or insurance when adding the notice would be impractical.
(3) For a depositor who was not a depositor before October 13, 2006, other than a depositor covered by subparagraph (B), the institution may accept a deposit only after receiving a signed written acknowledgment that it is not federally insured and the Federal Government does not guarantee repayment. For a depositor at a federally insured institution that converted or merged into an uninsured institution after that date, the institution may accept a deposit only if the depositor signed that acknowledgment or the institution mailed the alternative notice in subparagraph (D) no later than 45 days after conversion or merger. For a depositor who was a depositor on October 13, 2006, it may accept a later deposit only if the depositor signed the acknowledgment or the institution followed subparagraph (E). Under (D), the institution must mail each nonsigning conversion-or-merger depositor a conspicuous card with both statements and a signature line, plus materials asking for its return. Under (E), it must send the same card and materials to each nonsigning current depositor, first by mail within three months after October 13, 2006, and again 30 days to three months after the first mailing if no signed card was received.
(c) Form and content. To make the risks understandable, the Bureau must by regulation or order set the disclosure’s form, type size, and content so it is simple and easy to understand.
(d) Institutions without retail deposits. The Bureau may by regulation or order except an institution from subsection (b) if it does not in the United States receive initial deposits below the standard maximum deposit insurance amount^* from United States citizens or residents, other than money received with a draft or similar money-transmission instrument.
(e) Definitions. “Appropriate supervisor” means the agency mainly responsible for supervising the institution. “Depository institution” includes entities described in section 461(b)(1)(A)(iv) and entities the Bureau determines receive deposits and could reasonably be mistaken for a depository institution by current or prospective customers. An institution “lacks Federal deposit insurance” if it is neither an insured depository institution nor an insured credit union^* under section 101 of the Federal Credit^* Union Act. “Private deposit insurer” means an entity insuring deposits of an institution lacking Federal insurance. “Bureau” means the Bureau of Consumer^* Financial Protection.
(f) Enforcement. (1) The Bureau, under the Consumer Financial Protection Act and its subtitle B, and the Federal Trade Commission under the Federal Trade Commission Act, enforce subsections (b), (c), and (e) and regulations or orders under them. (2) Subject to (C), an appropriate State supervisor may examine and enforce this section and its regulations and may use powers given by State law. If the Bureau or FTC has begun an enforcement action, a State supervisor may not, while it is pending, bring an action against a defendant named in that complaint for a violation alleged in the complaint.