Any agreement (as defined in subsection (e)) entered into after November 12, 1999, by an insured depository institution or affiliate with a nongovernmental entity or person made pursuant to or in connection with the Community Reinvestment Act of 1977 [ 12 U.S.C. 2901 et seq.] involving funds or other resources of such insured depository institution or affiliate-
Each insured depository institution or affiliate that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with supervisory responsibility over the insured depository institution, not less frequently than once each year, such information as the Federal banking agency may by rule require relating to the following actions taken by the party pursuant to the agreement during the preceding 12-month period:
Each nongovernmental entity or person that is not an affiliate of an insured depository institution and that is a party to an agreement described in subsection (a) shall report to the appropriate Federal banking agency with supervisory responsibility over the insured depository institution that is a party to such agreement, not less frequently than once each year, an accounting of the use of funds received pursuant to each such agreement during the preceding 12-month period.
A nongovernmental entity or person referred to in paragraph (1) may comply with the reporting requirement in such paragraph by transmitting the report to the insured depository institution that is a party to the agreement, and such insured depository institution shall promptly transmit such report to the appropriate Federal banking agency with supervisory authority over the insured depository institution.
The accounting referred to in paragraph (1) shall include a detailed, itemized list of the uses to which such funds have been made, including compensation, administrative expenses, travel, entertainment, consulting and professional fees paid, and such other categories, as determined by regulation by the appropriate Federal banking agency with supervisory responsibility over the insured depository institution.
Subsections (b) and (c) shall not apply with respect to any agreement entered into before the end of the 6-month period beginning on November 12, 1999.
For purposes of this section, the term "agreement"-
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 institution or affiliate thereof, whether organized on a profit or not-for-profit basis; and
For purposes of subparagraph (A), the term "fulfillment" means a list of factors that the appropriate Federal banking agency determines have a material impact on the agency's decision-
If the party to an agreement described in subsection (a) that is not an insured depository 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 unenforceable after the offending party has been given notice and a reasonable period of time to perform or comply.
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 supervisory responsibility over the insured depository institution may impose either or both of the following penalties:
If an agreement described in subsection (a) is found to be unenforceable under this subsection, the appropriate Federal banking agency may assist the insured depository institution in identifying a successor nongovernmental party to assume the responsibilities of the agreement.
An error in a report filed under subsection (c) that is inadvertent or de minimis shall not subject the filing party to any penalty.
No provision of this section shall be construed as authorizing any appropriate Federal banking agency to enforce the provisions of any agreement described in subsection (a).
Each appropriate Federal banking agency shall prescribe regulations, in accordance with paragraph (4), requiring procedures reasonably designed to ensure and monitor compliance with the requirements of this section.
In carrying out paragraph (1), each appropriate Federal banking agency shall-
The Board of Governors of the Federal Reserve System may prescribe regulations-
In carrying out paragraph (1), each appropriate Federal banking agency shall consult and coordinate with the other such agencies for the purposes of assuring, to the extent possible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies.
12 U.S.C. § 1831y
EDITORIAL NOTES
REFERENCES IN TEXTThe 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.
- Federal banking agency
- The term "Federal banking agency" means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation.1 So in original. Probably should be followed by "and".2 See References in Text note below.
- affiliate
- The term "affiliate" means any person that controls, is controlled by, or is under common control with another person.
- appropriate Federal banking agency
- The term "appropriate Federal banking agency" means-(1) the Office of the Comptroller of the Currency, in the case of-(A) any national banking association;(B) any Federal branch or agency of a foreign bank; and(C) any Federal savings association;(2) the Federal Deposit Insurance Corporation, in the case of-(A) any State nonmember insured bank;(B) any foreign bank having an insured branch; and(C) any State savings association; 1(3) the Board of Governors of the Federal Reserve System, in the case of-(A) any State member bank;(B) any branch or agency of a foreign bank with respect to any provision of the Federal Reserve Act [ 12 U.S.C. 221 et seq.] which is made applicable under the International Banking Act of 1978 [ 12 U.S.C. 3101 et seq.];(C) any foreign bank which does not operate an insured branch;(D) any agency or commercial lending company other than a Federal agency;(E) supervisory or regulatory proceedings arising from the authority given to the Board of Governors under section 7(c)(1) of the International Banking Act of 1978 [ 12 U.S.C. 3105(c)(1) ], including such proceedings under the Financial Institutions Supervisory Act of 1966;(F) any bank holding company and any subsidiary (other than a depository institution) of a bank holding company; and(G) any savings and loan holding company and any subsidiary (other than a depository institution) of a savings and loan holding company.Under the rule set forth in this subsection, more than one agency may be an appropriate Federal banking agency with respect to any given institution.
- credit
- The term "credit" means the right granted by a person to a consumer to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment for such purchase.
- insured depository institution
- The term "insured depository institution" means any bank or savings association the deposits of which are insured by the Corporation pursuant to this chapter.
- person
- The term "person" means an individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity.