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12 U.S.C. § 5516 — Other banks, savings associations, and credit unions

submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 545 words · no verdicts yet

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This section covers insured banks and insured credit unions with total assets of $10 billion or less. It gives the Bureau limited reporting and examination roles, while giving the prudential regulator exclusive enforcement authority relative to the Bureau.

(a) Scope of coverage. This section applies to a covered person that is either (1) an insured depository institution with total assets of $10 billion or less, or (2) an insured credit union with total assets of $10 billion or less.

(b) Reports. The Director may require reports from a person covered by subsection (a) when needed to support the Bureau’s role in carrying out Federal consumer financial law, its examinations under subsection (c), or its work assessing and detecting risks to consumers and consumer financial markets.

(1) Use of existing reports. As far as possible, the Bureau must use (A) reports about a covered person that were provided, or were required to be provided, to a Federal or State agency, and (B) information that has been made public.

(2) Preservation of authority. Paragraph (1) does not limit the Director’s authority to require information from a covered person when paragraph (1) permits that requirement. This is true even if another person maintains, stores, or processes the information, as long as the covered person owns it or controls it.

(3) Reports of tax-law noncompliance. The Bureau must give the Commissioner of Internal Revenue any examination report or related information that identifies possible noncompliance with tax law.

(c) Examinations. (1) In general. At its discretion, the Bureau may include its examiners, on a sampling basis, in examinations performed by the prudential regulator. The purpose is to assess whether persons covered by subsection (a) comply with Federal consumer financial law. (2) Agency coordination. The prudential regulator must (A) give the Bureau, promptly and continuously, all reports, records, and documents related to the examination of an institution selected for the sample; (B) include the Bureau examiner in the person’s entire examination process; and (C) consider the Bureau’s views about the examination’s scope and conduct, the contents of its report, which matters require attention, and the examination ratings.

(d) Enforcement. (1) In general. Except for requiring reports under subsection (b), the prudential regulator may enforce Federal consumer financial laws. For a covered person described in subsection (a), the prudential regulator has exclusive enforcement authority relative to the Bureau. (2) Coordination with prudential regulator. (A) Referral. If the Bureau has reason to believe that a covered person has materially violated a Federal consumer financial law, it must notify the prudential regulator in writing and recommend an appropriate response. (B) Response. The prudential regulator must give the Bureau a written response within 60 days after receiving the recommendation.

(e) Service providers. A service provider serving a substantial number of persons covered by subsection (a) is subject to the Bureau’s authority under section 5515 to the same extent that it would be if the Bureau were an appropriate Federal banking agency under section 1867(c) of this title. When the Bureau examines such a service provider or requires a report from it, the Bureau must coordinate with the appropriate prudential regulator.

the actual law source: uscode.house.gov ↗public domain
(a) Scope of coverage

This section shall apply to any covered person that is—

(1)

an insured depository institution with total assets of $10,000,000,000 or less; or

(2)

an insured credit union with total assets of $10,000,000,000 or less.

(b) Reports

The Director may require reports from a person described in subsection (a), as necessary to support the role of the Bureau in implementing Federal consumer financial law, to support its examination activities under subsection (c), and to assess and detect risks to consumers and consumer financial markets.

(1) Use of existing reports

The Bureau shall, to the fullest extent possible, use—

(A)

reports pertaining to a person described in subsection (a) that have been provided or required to have been provided to a Federal or State agency; and

(B)

information that has been reported publicly.

(2) Preservation of authority

Nothing in this subsection may be construed as limiting the authority of the Director from requiring from a person described in subsection (a), as permitted under paragraph (1), information owned or under the control of such person, regardless of whether such information is maintained, stored, or processed by another person.

(3) Reports of tax law noncompliance

The Bureau shall provide the Commissioner of Internal Revenue with any report of examination or related information identifying possible tax law noncompliance.

(c) Examinations
(1) In general

The Bureau may, at its discretion, include examiners on a sampling basis of the examinations performed by the prudential regulator to assess compliance with the requirements of Federal consumer financial law of persons described in subsection (a).

(2) Agency coordination

The prudential regulator shall—

(A)

provide all reports, records, and documentation related to the examination process for any institution included in the sample referred to in paragraph (1) to the Bureau on a timely and continual basis;

(B)

involve such Bureau examiner in the entire examination process for such person; and

(C)

consider input of the Bureau concerning the scope of an examination, conduct of the examination, the contents of the examination report, the designation of matters requiring attention, and examination ratings.

(d) Enforcement
(1) In general

Except for requiring reports under subsection (b), the prudential regulator is authorized to enforce the requirements of Federal consumer financial laws and, with respect to a covered person described in subsection (a), shall have exclusive authority (relative to the Bureau) to enforce such laws.

(2) Coordination with prudential regulator
(A) Referral

When the Bureau has reason to believe that a person described in subsection (a) has engaged in a material violation of a Federal consumer financial law, the Bureau shall notify the prudential regulator in writing and recommend appropriate action to respond.

(B) Response

Upon receiving a recommendation under subparagraph (A), the prudential regulator shall provide a written response to the Bureau not later than 60 days thereafter.

(e) Service providers

A service provider to a substantial number of persons described in subsection (a) shall be subject to the authority of the Bureau under section 5515 of this title to the same extent as if the Bureau were an appropriate Federal bank agency under section 1867(c) of this title. When conducting any examination or requiring any report from a service provider subject to this subsection, the Bureau shall coordinate with the appropriate prudential regulator.

Source credit: (Pub. L. 111–203, title X, § 1026, July 21, 2010, 124 Stat. 1993.)

history & why it existsrecord from the source credit
  • 2010Enacted · Pub. L. 111-203 · 124 Stat. 1993

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.

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