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FDIC Law, Regulations, Related Acts

[Main Tabs]     [Table of Contents - 8000]     [Index]     [Previous Page]     [Next Page]     [Search] 8000 - Miscellaneous Statutes and Regulations {{2-29-08 p.8581}} FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 AN ACT To reform, recapitalize, and consolidate the Federal deposit insurance system, to enhance the regulatory and enforcement powers of Federal financial institutions regulatory agencies, and for other purposes.   Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * * * * * TITLE IX — REGULATORY ENFORCEMENT AUTHORITY AND CRIMINAL ENHANCEMENTS SEC. 951. CIVIL PENALTIES.   (a)  IN GENERAL--     Whoever violates any provision of law to which this section is made applicable by subsection (c) of this section shall be subject to a civil penalty in an amount assessed by the court in a civil action under this section.   (b)  MAXIMUM AMOUNT OF PENALTY--     (1)  GENERALLY--       The amount of the civil penalty shall not exceed $1,000,000.     (2)  SPECIAL RULE FOR CONTINUING VIOLATIONS--       In the case of a continuing violation, the amount of the civil penalty may exceed the amount described in paragraph (1) but may not exceed the lesser of $1,000,000 per day or $5,000,000.     (3)  SPECIAL RULE FOR VIOLATIONS CREATING GAIN OR LOSS--       (A)  If any person derives pecuniary gain from the violation, or if the violation results in pecuniary loss to a person other than the violator, the amount of the civil penalty may exceed the amounts described in paragraphs (1) and (2) but may not exceed the amount of such gain or loss.       (B)  As used in this paragraph, the term "person" includes the Bank Insurance Fund, the Savings Association Insurance Fund and after the merger of such funds, the Deposit Insurance Fund, and the National Credit Union Share Insurance Fund.   (c)  Violations to which penalty is applicable     This section applies to a violation of, or a conspiracy to violate--     (1)  section 215, 656, 657, 1005, 1006, 1007, 1014, or 1344 of Title 18; or     (2)  section 287, 1001, 1032, 1341 or 1343 of Title 18 affecting a federally insured financial institution.   This section shall apply to violations occurring on or after August 10, 1984.   (d)  ATTORNEY GENERAL TO BRING ACTION--     A civil action to recover a civil penalty under this section shall be commenced by the Attorney General.   (e)  BURDEN OF PROOF--     In a civil action to recover a civil penalty under this section, the Attorney General must establish the right to recovery by a preponderance of the evidence.   (f)  ADMINISTRATIVE SUBPOENAS--     (1)  IN GENERAL--       For the purpose of conducting a civil investigation in contemplation of a civil proceeding under this section, the Attorney General may--       (A)  administer oaths and affirmations;       (B)  take evidence; and       (C)  by subpoena, summon witnesses and require the production of any books, papers, correspondence, memoranda, or other records which the Attorney General deems {{2-29-08 p.8582}}relevant or material to the inquiry. Such subpoena may require the attendance of witnesses and the production of any such records from any place in the United States at any place in the United States designated by the Attorney General.     (2)  Procedures applicable       The same procedures and limitations as are provided with respect to civil investigative demands in subsections (g), (h), and (j) of section 1968 of Title 18 apply with respect to a subpoena issued under this subsection. Process required by such subsections to be served upon the custodian shall be served on the Attorney General. Failure to comply with an order of the court to enforce such subpoena shall be punishable as contempt.     (3)  LIMITATION--       In the case of a subpoena for which the return date is less than 5 days of service, no person shall be found in contempt for failure to comply by the return date if such person files a petition under paragraph (2) not later than 5 days after the date of service.   (g)  STATUTE OF LIMITATIONS--     A civil action under this section may not be commenced later than 10 years after the cause of action accrues. [Codified to 12 U.S.C. § 1833a] [Source:  Section 951 of title IX of the Act of August 9, 1989 (Pub. L. No. 101-73; 103 Stat. 498; sections 2533 and 2596(d) of title XXV of the Act of November 29, 1990 (Pub. L. No. 101-647; 104 Stat. 4882 and 4908), effective November 29, 1990; section 330003(g) of title XXXIII of the Act of September 13, 1994 (Pub. L. No. 103-22; 108 Stat. 2141), effective retroactive to November 29, 1990; section 9(g)(1) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3618), effective February 15, 2006] TITLE XI—REAL ESTATE APPRAISAL REFORM AMENDMENTS * * * * * SEC. 1103. FUNCTIONS OF APPRAISAL SUBCOMMITTEE.   (a)  IN GENERAL.--The Appraisal Subcommittee shall--     (1)  monitor the requirements established by States for the certification and licensing of individuals who are qualified to perform appraisals in connection with federally related transactions, including a code of professional responsibility;     (2)  monitor the requirements established by the Federal financial institutions regulatory agencies and the Resolution Trust Corporation with respect to--       (A)  appraisal standards for federally related transactions under their jurisdiction, and       (B)  determinations as to which federally related transactions under their jurisdiction require the services of a State certified appraiser and which require the services of a State licensed appraiser;     (3)  maintain a national registry of State certified and licensed appraisers who are eligible to perform appraisals in federally related transactions; and     (4)  transmit an annual report to the Congress not later than January 31 of each year which describes the manner in which each function assigned to the Appraisal Subcommittee has been carried out during the preceding year.   (b)  MONITORING AND REVIEWING FOUNDATION.--The Appraisal Subcommittee shall monitor and review the practices, procedures, activities, and organizational structure of the Appraisal Foundation. [Codified to 12 U.S.C. 3332] [Source:  Section 1103 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 512), effective August 9, 1989] SEC. 1104. CHAIRPERSON OF APPRAISAL SUBCOMMITTEE; TERM OF CHAIRPERSON; MEETINGS.   (a)  CHAIRPERSON.--The Council shall select the Chairperson of the subcommittee. The {{8-31-05 p.8583}}term of the Chairperson shall be 2 years.   (b)  MEETINGS; QUORUM; VOTING.--The Appraisal Subcommittee shall meet at the call of the Chairperson or a majority of its members when there is business to be conducted. A majority of members of the Appraisal Subcommittee shall constitute a quorum but 2 or more members may hold hearings. Decisions of the Appraisal Subcommittee shall be made by the vote of a majority of its members. [Codified to 12 U.S.C. 3333] [Source:  Section 1104 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 512), effective August 9, 1989] SEC. 1105. OFFICERS AND STAFF.   The Chairperson of the Appraisal Subcommittee shall appoint such officers and staff as may be necessary to carry out the functions of this title consistent with the appointment and compensation practices of the Council. [Codified to 12 U.S.C. 3334] [Source:  Section 1105 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 512), effective August 9, 1989] SEC. 1106. POWERS OF APPRAISAL SUBCOMMITTEE.   The Appraisal Subcommittee may, for the purpose of carrying out this title, establish advisory committees, hold hearings, sit and act at times and places, take testimony, receive evidence, provide information, and perform research, as the Appraisal Subcommittee considers appropriate. [Codified to 12 U.S.C. 3335] [Source:  Section 1106 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 512), effective August 9, 1989] SEC. 1107. PROCEDURES FOR ESTABLISHING APPRAISAL STANDARDS AND REQUIRING THE USE OF CERTIFIED AND LICENSED APPRAISERS.   Appraisal standards and requirements for using State certified and licensed appraisers in federally related transactions pursuant to this title shall be prescribed in accordance with procedures set forth in section 553 of title 5, United States Code, including the publication of notice and receipt of written comments or the holding of public hearings with respect to any standards or requirements proposed to be established. [Codified to 12 U.S.C. 3336] [Source:  Section 1107 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 513), effective August 9, 1989] SEC. 1108. STARTUP FUNDING.   (a)  IN GENERAL.--For purposes of this title, the Secretary of the Treasury shall pay to the Appraisal Subcommittee a one-time payment of $5,000,000 on the date of the enactment of this Act. Thereafter, expenses of the subcommittee shall be funded through the collection of registry fees from certain certified and licensed appraisers pursuant to section 1109 or, if required, pursuant to section 1122(b) of this title.   (b)  ADDITIONAL FUNDS.--Except as provided in section 1122(b) of this title, funds in addition to the funds provided under subsection (a) may be made available to the Appraisal Subcommittee only if authorized and appropriated by law.   (c)  REPAYMENT OF TREASURY LOAN.--Not later than September 30, 1998, the Appraisal Subcommittee shall repay to the Secretary of the Treasury the unpaid portion of the $5,000,000 paid to the Appraisal Subcommittee pursuant to this section. [Codified to 12 U.S.C. 3337] {{8-31-05 p.8584}} [Source:  Section 1108 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 513), effective August 9, 1989; as amended by section 2212 of title II of the Act of September 30, 1996 (Pub. L. No. 104-208; 110 Stat. 3009-411), effective September 30, 1996] SEC. 1109. ROSTER OF STATE CERTIFIED OR LICENSED APPRAISERS; AUTHORITY TO COLLECT AND TRANSMIT FEES.   (a)  IN GENERAL.--Each State with an appraiser certifying and licensing agency whose certifications and licenses comply with this title, shall--     (1)  transmit to the Appraisal Subcommittee, no less than annually, a roster listing individuals who have received a State certification or license in accordance with this title; and     (2)  collect from such individuals who perform or seek to perform appraisals in federally related transactions, an annual registry fee of not more than $25, such fees to be transmitted by the State agencies to the Council on an annual basis. Subject to the approval of the Council, the Appraisal Subcommittee may adjust the dollar amount of registry fees, up to a maximum of $50 per annum, as necessary to carry out its functions under this title.   (b)  USE OF AMOUNTS APPROPRIATED OR COLLECTED.--Amounts appropriated for or collected by the Appraisal Subcommittee under this section shall be used--     (1)  to maintain a registry of individuals who are qualified and eligible to perform appraisals in connection with federally related transactions;     (2)  to support its activities under this title;     (3)  to reimburse the general fund of the Treasury for amounts appropriated to and expended by the Appraisal Subcommittee during the 24-month startup period following the date of the enactment of this title; and     (4)  to make grants in such amounts as it deems appropriate to the Appraisal Foundation, to help defray those costs of the foundation relating to the activities of its Appraisal Standards and Appraiser Qualification Boards. [Codified to 12 U.S.C. 3338] [Source:  Section 1109 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 513), effective August 9, 1989] SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY AGENCIES RELATING TO APPRAISAL STANDARDS.   Each Federal financial institutions regulatory agency and the Resolution Trust Corporation shall prescribe appropriate standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of each such agency or instrumentality. These rules shall require, at a minimum--     (1)  that real estate appraisals be performed in accordance with generally accepted appraisal standards as evidenced by the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation; and     (2)  that such appraisals shall be written appraisals. Each such agency or instrumentality may require compliance with additional standards if it makes a determination in writing that such additional standards are required in order to properly carry out its statutory responsibilities. [Codified to 12 U.S.C. 3339] [Source:  Section 1110 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 514), effective August 9, 1989] SEC. 1111. TIME FOR PROPOSAL AND ADOPTION OF STANDARDS.   Appraisal standards established under this title shall be proposed not later than 6 months and shall be adopted in final form and become effective not later than 12 months after the date of the enactment of this Act. {{4-28-06 p.8585}} [Codified to 12 U.S.C. 3340] [Source:  Section 1111 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 514), effective August 9, 1989] SEC. 1112. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY AGENCIES RELATING TO APPRAISER QUALIFICATIONS.   (a)  In General.—   Each Federal financial institutions regulatory agency and the Resolution Trust Corporation shall prescribe, in accordance with sections 3342 and 3343 of this title, which categories of federally related transactions should be appraised by a State certified appraiser and which by a State licensed appraiser under this chapter.   (b)  Threshold Level.—   Each Federal financial institutions regulatory agency and the Resolution Trust Corporation may establish a threshold level at or below which a certified or licensed appraiser is not required to perform appraisals in connection with federally related transactions, if such agency determines in writing that such threshold level does not represent a threat to the safety and soundness of financial institutions.   (c)  Gao study of Appraisals in Connection with Real Estate Related Financial Transactions Below Threshold level.--     (1)  Gao Studies.—   The Comptroller General of the United States may conduct, under such conditions as the Comptroller General determines appropriate, studies on the adequacy and quality of appraisals or evaluations conducted in connection with real estate related financial transactions below the threshold level established under subsection (b) of this section, taking into account--       (A)  the cost to any financial institution involved in any such transaction;       (B)  the possibility of losses to the Deposit Insurance Fund, or the National Credit Union Share Insurance Fund;       (C)  the cost to any customer involved in any such transaction; and       (D)  the effect on low-income housing.     (2)  Reports to Congress and the Appropriate Federal Financial Institutions Regulatory Agencies.—   Upon completing each of the studies referred to in paragraph (1), the Comptroller General shall submit a report on the Comptroller General's findings and conclusions with respect to such study to the Federal financial institutions regulatory agencies, the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for legislative or administrative action as the Comptroller General determines to be appropriate. [Codified to 12 U.S.C. 3341] [Source:  Section 1112 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 514), effective August 9, 1989; as amended by section 954, of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3894), effective October 28, 1992; section 106(g) of title I of the Act of October 19, 1996 (Pub. L. No. 104--316; 110 Stat. 3831), effective October 19, 1996; section 9(g)(2) of the Act of February 15, 2006 (Pub. L. No. 107--193; 119 Stat. 3617), effective date shall take effect on the date of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund pursuant to the Federal Deposit Insurance Reform Act of 2005] SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE CERTIFIED APPRAISER.   In determining whether an appraisal in connection with a federally related transaction shall be performed by a State certified appraiser, an agency or instrumentality under this title shall consider whether transactions, either individually or collectively, are of sufficient financial or public policy importance to the United States that an individual who performs {{4-28-06 p.8586}}an appraisal in connection with such transactions should be a State certified appraiser, except that--     (1)  a State certified appraiser shall be required for all federally related transactions having a value of $1,000,000 or more; and     (2)  1-to-4 unit, single family residential appraisals may be performed by State licensed appraisers unless the size and complexity requires a State certified appraiser. [Codified to 12 U.S.C. 3342] [Source:  Section 1113 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 514), effective August 9, 1989] SEC. 1114. TRANSACTIONS REQUIRING THE SERVICES OF A STATE LICENSED APPRAISER.   All federally related transactions not requiring the services of a State certified appraiser shall be performed by either a State certified or licensed appraiser. [Codified to 12 U.S.C. 3343] [Source:  Section 1114 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 514), effective August 9, 1989] SEC. 1115. TIME FOR PROPOSAL AND ADOPTION OF RULES.   As appropriate, rules issued under sections 1113 and 1114 shall be proposed not later than 6 months and shall be effective upon adoption in final form not later than 12 months after the date of the enactment of this Act. [Codified to 12 U.S.C. 3344] [Source:  Section 1115 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 515), effective August 9, 1989] SEC. 1116. CERTIFICATION AND LICENSING REQUIREMENTS.   (a)  IN GENERAL.--For purposes of this title, the term "State certified real estate appraiser" means any individual who has satisfied the requirements for State certification in a State or territory whose criteria for certification as a real estate appraiser currently meets the minimum criteria for certification issued by the Appraiser Qualification Board of the Appraisal Foundation.   (b)  RESTRICTION.--No individual shall be a State certified real estate appraiser under this section unless such individual has achieved a passing grade upon a suitable examination administered by a State or territory that is consistent with and equivalent to the Uniform State Certification Examination issued or endorsed by the Appraiser Qualification Board of the Appraisal Foundation.   (c)  DEFINITION.--As used in this section, the term "State licensed appraiser" means an individual who has satisfied the requirements for State licensing in a State or territory.   (d)  ADDITIONAL QUALIFICATION CRITERIA.--Nothing in this title shall be construed to prevent any Federal agency or instrumentality under this title from establishing such additional qualification criteria as may be necessary or appropriate to carry out the statutory responsibilities of such department, agency, or instrumentality.   (e)  Authority of the Appraisal Subcommittee.-- * The Appraisal Subcommittee shall not set qualifications or experience requirements for the States in licensing real estate appraisers. Recommendations of the Subcommittee shall be nonbinding on the States.   (e)  AUTHORITY OF THE APPRAISAL SUBCOMMITTEE.--*The Appraisal Subcommittee shall not set qualifications or experience requirements for the States in licensing real estate {{8-31-05 p.8587}}appraisers, including a de minimus standard. Recommendations of the Subcommittee shall be nonbinding on the States. [Codified to 12 U.S.C. 3345] [Source:  Section 1116 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 515), effective August 9, 1989; as amended by section 701(a) of title VII of the Act of December 12, 1991 (Pub. L. No. 102--233; 105 Stat. 1792), effective December 12, 1991; section 472(a) of title IV of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2386), effective December 19, 1991] SEC. 1117. ESTABLISHMENT OF STATE APPRAISER CERTIFYING AND LICENSING AGENCIES.   To assure the availability of State certified and licensed appraisers for the performance in a State of appraisals in federally related transactions and to assure effective supervision of the activities of certified and licensed appraisers, a State may establish a State appraiser certifying and licensing agency. [Codified to 12 U.S.C. 3346] [Source:  Section 1117 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 515), effective August 9, 1989] SEC. 1118. MONITORING OF STATE APPRAISER CERTIFYING AND LICENSING AGENCIES.   (a)  IN GENERAL.--The Appraisal Subcommittee shall monitor State appraiser certifying and licensing agencies for the purpose of determining whether a State agency's policies, practices, and procedures are consistent with this title. The Appraisal Subcommittee and all agencies, instrumentalities, and federally recognized entities under this title shall not recognize appraiser certifications and licenses from States whose appraisal policies, practices, or procedures are found to be inconsistent with this title.   (b)  DISAPPROVAL BY APPRAISAL SUBCOMMITTEE.--The Federal financial institutions, regulatory agencies, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation shall accept certifications and licenses awarded by a State appraiser certifying the licensing agency unless the Appraisal Subcommittee issues a written finding that--     (1)  the State agency fails to recognize and enforce the standards, requirements, and procedures prescribed pursuant to this title;     (2)  the State agency is not granted authority by the State which is adequate to permit the agency to carry out its functions under this title; or     (3)  decisions concerning appraisal standards, appraiser qualifications and supervision of appraiser practices are not made in a manner that carries out the purposes of this title.   (c)  REJECTION OF STATE CERTIFICATIONS AND LICENSES.--     (1)  Opportunity to be heard or correct conditions.--Before refusing to recognize a State's appraiser certifications or licenses, the Appraisal Subcommittee shall provide that State's certifying and licensing agency a written notice of its intention not to recognize the State's certified or licensed appraisers and ample opportunity to provide rebuttal information or to correct the conditions causing the refusal.     (2)  ADOPTION OF PROCEDURES.--The Appraisal Subcommittee shall adopt written procedures for taking actions described in this section.     (3)  JUDICIAL REVIEW.--A decision of the subcommittee under this section shall be subject to judicial review. [Codified to 12 U.S.C. 3347] [Source:  Section 1118 of the Act of title XI of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 515), effective August 9, 1989] {{8-31-05 p.8588}} SEC. 1119. RECOGNITION OF STATE CERTIFIED AND LICENSED APPRAISERS FOR PURPOSES OF THIS TITLE.   (a)  Effective Date for Use of Certified or Licensed Appraisers Only.--     (1)  IN GENERAL.--Not later than December 31, 1992, all appraisals performed in connection with federally related transactions shall be performed only by individuals certified or licensed in accordance with the requirements of this title.     (2)  EXTENSION OF EFFECTIVE DATE.--Subject to the approval of the council, the Appraisal Subcommittee may extend, until December 31, 1991, the effective date for the use of certified or licensed appraisers if it makes a written finding that a State has made substantial progress in establishing a State certification and licensing system that appears to conform to the provisions of this title.   (b)  Temporary Waiver of Appraiser Certification or Licensing Requirements for State Having Scarcity of Qualified Appraisers.--Subject to the approval of the Council, the Appraisal Subcommittee may waive any requirement relating to certification or licensing of a person to perform appraisals under this title if the Appraisal Subcommittee or a State agency whose certifications and licenses are in compliance with this title, makes a written determination that there is a scarcity of certified or licensed appraisers to perform appraisals in connection with federally related transactions in a State, or in any geographical political subdivision of a State, leading to significant delays in the performance of such appraisals. The waiver terminates when the Appraisal Subcommittee determines that such significant delays have been eliminated.   (c)  Reports to State Certifying and Licensing Agencies.--The Appraisal Subcommittee, any other Federal agency or instrumentality, or any federally recognized entity shall report any action of a State certified or licensed appraiser that is contrary to the purposes of this title, to the appropriate State agency for a disposition of the subject of the referral. The State agency shall provide the Appraisal Subcommittee or the other Federal agency or instrumentality with a report on its disposition of the matter referred. Subsequent to such disposition, the subcommittee or the agency or instrumentality may take such further action, pursuant to written procedures, it deems necessary to carry out the purposes of this title. [Codified to 12 U.S.C. 3348] [Source:  Section 1119 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 516), effective August 9, 1989; as amended by section 701(b) of title VII of the Act of December 12, 1991 (Pub. L. No. 102--233; 105 Stat. 1792), effective December 12, 1991; section 472(b) of title IV of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2386), effective December 19, 1991] SEC. 1120. VIOLATIONS IN OBTAINING AND PERFORMING APPRAISALS IN FEDERALLY RELATED TRANSACTIONS.   (a)  VIOLATIONS.--Except as authorized by the Appraisal Subcommittee in exercising its waiver authority pursuant to section 1119(b), it shall be a violation of this section--     (1)  for a financial institution to seek, obtain, or give money or any other thing of value in exchange for the performance of an appraisal by a person who the institution knows is not a State certified or licensed appraiser in connection with a federally related transaction; and     (2)  for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Resolution Trust Corporation to knowingly contract for the performance of any appraisal by a person who is not a State certified or licensed appraiser in connection with a real estate related financial transaction defined in section 1121(5) to which such association or corporation is a party.   (b)  PENALTIES.--A financial institution that violates subsection (a)(1) shall be subject to civil penalties under section 8(i)(2) of the Federal Deposit Insurance Act or section 206(k)(2) of the Federal Credit Union Act, as appropriate. {{8-31-05 p.8589}}   (c)  PROCEEDING.--A proceeding with respect to a violation of this section shall be an administrative proceeding which may be conducted by a Federal financial institutions regulatory agency in accordance with the procedures set forth in subchapter II of chapter 5 of title 5, United States Code. [Codified to 12 U.S.C. 3349] [Source:  Section 1120 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 517), effective August 9, 1989] SEC. 1121. DEFINITIONS.   For purposes of this title:     (1)  State appraiser certifying and licensing agency.--The term "State appraiser certifying and licensing agency" means a State agency established in compliance with this title.     (2)  APPRAISAL SUBCOMMITTEE; SUBCOMMITTEE.--The terms "Appraisal Subcommittee" and "subcommittee" mean the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.     (3)  COUNCIL.--The term "Council" means the Federal Financial Institutions Examinations Council.     (4)  FEDERALLY RELATED TRANSACTION.--The term "federally related transaction" means any real estate-related financial transaction which--       (A)  a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and       (B)  requires the services of an appraiser.     (5)  REAL ESTATE RELATED FINANCIAL TRANSACTION.--The term "real estate-related financial transaction" means any transaction involving--   (a)  the sale, lease, purchase, investment in or exchange of real property, including interests in property, or the financing thereof;       (B)  the refinancing of real property or interests in real property; and       (C)  the use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.     (6)  Federal financial institutions regulatory agencies.--The term "Federal financial institutions regulatory agencies" means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration.     (7)  FINANCIAL INSTITUTION.--The term "financial institution" means an insured depository institution as defined in section 3 of the Federal Deposit Insurance Act or an insured credit union as defined in section 101 of the Federal Credit Union Act.     (8)  CHAIRPERSON.--The term "Chairperson" means the Chairperson of the Appraisal Subcommittee selected by the council.     (9)  FOUNDATION.--The terms "Appraisal Foundation" and "Foundation" means the Appraisal Foundation established on November 30, 1987, as a not for profit corporation under the laws of Illinois.     (10)  WRITTEN APPRAISAL.--The term "written appraisal" means a written statement used in connection with a federally related transaction that is independently and impartially prepared by a licensed or certified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by presentation and analysis of relevant market information. [Codified to 12 U.S.C. 3350] [Source:  Section 1121 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 517), effective August 9, 1989] {{8-31-05 p.8590}} SEC. 1122. MISCELLANEOUS PROVISIONS.   (a)  TEMPORARY PRACTICE.--(1)  IN GENERAL.--A State appraiser certifying or licensing agency shall recognize on a temporary basis the certification or license of an appraiser issued by another State if--       (A)  the property to be appraised is part of a federally related transaction,       (B)  the appraiser's business is of a temporary nature, and       (C)  the appraiser registers with the appraiser certifying or licensing agency in the State of temporary practice.     (2)  FEES FOR TEMPORARY PRACTICE.--A State appraiser certifying or licensing agency shall not impose excessive fees or burdensome requirements, as determined by the Appraisal Subcommittee, for temporary practice under this subsection.   (b)  RECIPROCITY.--The Appraisal Subcommittee shall encourage the States to develop reciprocity agreements that readily authorize appraisers who are licensed or certified in one State (and who are in good standing with their State appraiser certifying or licensing agency) to perform appraisals in other States.   (c)  SUPPLEMENTAL FUNDING.--Funds available to the Federal financial institutions regulatory agencies may be made available to the Federal Financial Institutions Examination Council to support the council's functions under this title.   (d)  PROHIBITION AGAINST DISCRIMINATION.--Criteria established by the Federal financial institutions regulatory agencies, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation for appraiser qualifications in addition to State certification or licensing shall not exclude a certified or licensed appraiser for consideration for an assignment solely by virtue of membership or lack of membership in any particular appraisal organization.   (e)  OTHER REQUIREMENTS.--A corporation, partnership, or other business entity may provide appraisal services in connection with federally related transactions if such appraisal is prepared by individuals certified or licensed in accordance with the requirements of this title. An individual who is not a State certified or licensed appraiser may assist in the preparation of an appraisal if--     (1)  the assistant is under the direct supervision of a licensed or certified individual; and     (2)  the final appraisal document is approved and signed by an individual who is certified or licensed.   (f)  STUDIES.--     (1)  STUDY.--The Appraisal Subcommittee shall--       (A)  conduct a study to determine whether real estate sales and financing information and data that is available to real estate appraisers in the States is sufficient to permit appraisers to properly estimate the values of properties in connection with federally related transactions; and       (B)  study the feasibility and desirability of extending the provisions of this title to the function of personal property appraising and to personal property appraisers in connection with Federal financial and public policy interests.     (2)  REPORT.--The Appraisal Subcommittee shall--       (A)  report its findings to the Congress with respect to the study described in paragraph (1)(A) no later than 12 months after the date of the enactment of this title, and       (B)  report its findings with respect to the study described in paragraph (1)(B) to Congress not later than 18 months after the date of the enactment of this title. [Codified to 12 U.S.C. 3351] [Source:  Section 1122 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 518), effective August 9, 1989; as amended by section 315 of title III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2222), effective September 23, 1994] {{8-31-05 p.8590.01}} SEC. 1123. EMERGENCY EXCEPTION FOR DISASTER AREAS.   (a)  IN GENERAL.--Each Federal financial institutions regulatory agency may, by regulation or order, make exceptions to this title, and to standards prescribed pursuant to this title, for transactions involving institutions for which the agency is the primary Federal regulator with respect to real property located within a disaster area if the agency--     (1)  makes the exception not later than 30 months after the date on which the President determines, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, that a major disaster exists in the area; and     (2)  determines that the exception--       (A)  would facilitate recovery from the major disaster; and       (B)  is consistent with safety and soundness.   (b)  3-YEAR LIMIT ON EXCEPTIONS.--Any exception made under this section shall expire not later than 3 years after the date of the determination referred to in subsection (a)(1).   (c)  PUBLICATION REQUIRED.--Any Federal financial institutions regulatory agency shall publish in the Federal Register a statement that--     (1)  describes any exception made under this section; and     (2)  explains how the exception--       (A)  would facilitate recovery from the major disaster; and       (B)  is consistent with safety and soundness.   (d)  Disaster Area Defined.--For purposes of this section, the term disaster area' means an area in which the President, pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, has determined that a major disaster exists. [Codified to 12 U.S.C. 3352] [Source:  Section 1123 of title XI of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 518), effective August 9, 1989; section 2 of the Act of October 23, 1992 (Pub. L. No. 102--485; 106 Stat. 2771), effective October 23, 1992] * * * * * TITLE XII — MISCELLANEOUS PROVISIONS * * * * * SEC. 1206.  COMPARABILITY IN COMPENSATION SCHEDULES.   (a)  IN GENERAL     The Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration Board, the Federal Housing Finance Board1, the Farm Credit Administration, and the Office of Thrift Supervision, in establishing and adjusting schedules of compensation and benefits which are to be determined solely by each agency under applicable provisions of law, shall inform the heads of the other agencies and the Congress of such compensation and benefits and shall seek to maintain comparability regarding compensation and benefits.   (b)  COMMODITY FUTURES TRADING COMMISSION--     In establishing and adjusting schedules of compensation and benefits for employees of the Commodity Futures Trading Commission under applicable provisions of law, the Commission shall--     (1)  inform the heads of the agencies referred to in subsection (a) of this section and Congress of such compensation and benefits; and     (2)  seek to maintain comparability with those agencies regarding compensation and benefits. [Codified to 12 U.S.C. § 1833b] [Source:  Section 1206 of title XII of the Act of August 9, 1989 (Pub. L. No. 101-73; 103 Stat. 523), effective August 9, 1989; section 302(a) of title III of the Act of December 12, 1991 (Pub. L. No. 102-33; Stat. 1767), effective February 1, 1992; section 8(d)(3) of the {{8-31-05 p.8590.02}}Act of January 16, 2002 (Pub. L. No. 107-123; 115 Stat. 2400), effective October 1, 2002; section 10702(b) of title X of the Act of May 13, 2002 (Pub. L. No. 107-171; 116 Stat. 516), effective May 13, 2002] * * * * * SEC. 1213.  COMPTROLLER GENERAL AUDIT AND ACCESS TO RECORDS.   (a)  Audit of agencies or other persons performing functions under banking laws--     (1)  IN GENERAL--       Except as provided in paragraph (2), all agencies, corporations, organizations, and other persons of any description which perform any function or activity under this Act, or any other Act which is amended by this Act, shall be subject to audit by the Comptroller General of the United States with respect to such functions or activity.     (2)  EXCEPTIONS--       Paragraph (1) shall not apply to--       (A)  any function or activity of the Board of Governors of the Federal Reserve System or the Federal Reserve banks that is described in any paragraph of section 714(b) of Title 31; and       (B)  any function or activity of the Federal National Mortgage Association, except as provided in section 1723a(j) of this title.   (b)  AUDIT OF PERSONS PROVIDING CERTAIN GOODS OR SERVICES--     All persons and organizations which, by contract, grant, or otherwise, provide goods or services to, or receive financial assistance from, any agency or other person performing functions or activities under this Act shall be subject to audit by the Comptroller General with respect to such provision of goods or services or receipt of financial assistance.   (c)  PROVISIONS APPLICABLE TO AUDITS UNDER THIS SECTION--     (1)  NATURE AND SCOPE OF AUDIT--       The Comptroller General shall determine the nature, scope, and terms and conditions of audits conducted under this section.     (2)  COORDINATION WITH OTHER PROVISIONS OF LAW--       The authority of the Comptroller General under this section shall be in addition to any audit authority available to the Comptroller General under other provisions of this Act or any other law.     (3)  RIGHTS OF ACCESS, EXAMINATION, AND COPYING     The Comptroller General, and an duly authorized representative of the Comptroller General, shall have access to, and the right to examine and copy, all records and other recorded information in any form, and to examine any property, within the possession or control of any agency or person which is subject to audit under this section which the Comptroller General deems relevant to an audit conducted under this section.     (4)  ENFORCEMENT OF RIGHT OF ACCESS--       The Comptroller General's right of access to information under this section shall be enforceable pursuant to section 716 of Title 31.     (5)  MAINTENANCE OF CONFIDENTIAL RECORDS--       The provisions of section 716(e) of Title 31 shall apply to information obtained by the Comptroller General under this section. [Codified to 12 U.S.C. § 1833c] [Source:  Section 1213 of title XII of the Act of August 9, 1989 (Pub. L. No. 101-73: 103 Stat. 528), effective August 9, 1989] * * * * * SEC. 1216.  EQUAL OPPORTUNITY.   (a)  IN GENERAL-- {{10-31-08 p.8590.03}}     For purposes of this Act, Executive Order Numbered 11478, providing for equal employment opportunity in the Federal Government, shall apply to--     (1)  the Comptroller of the Currency;     (2)  the Director of the Office of Thrift Supervision;     (3)  the Federal Housing Finance Agency;     (4)  the Federal Deposit Insurance Corporation;     (5)  the Thrift Depositor Protection Oversight Board of the Resolution Trust Corporation; and     (6)  the Resolution Trust Corporation.   (b)  AFFIRMATIVE PROGRAM FOR EQUAL EMPLOYMENT OPPORTUNITY--     For purposes of this Act, sections 1 and 2 of Executive Order Numbered 11478, providing for the adoption and implementation of equal employment opportunity, shall apply to Federal Home Loan Banks, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation.   (c)  SOLICITATION OF CONTRACTS--     The Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Housing Finance Agency, the Thrift Depositor Protection Oversight Board of the Resolution Trust Corporation, and the Resolution Trust Corporation shall each prescribe regulations to establish and oversee a minority outreach program within each such agency to ensure inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, including financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts entered into by the agency with such persons or entities, public and private, in order to manage the institutions and their assets for which the agency is responsible or to perform such other functions authorized under any law applicable to such agency.   (d)  REPORT TO CONGRESS--     Before the end of the 180-day period beginning on August 9, 1989--     (1)  the Federal Deposit Insurance Corporation;     (2)  the Comptroller of the Currency;     (3)  the Director of the Office of Thrift Supervision;     (4)  the Federal Housing Finance Board;     (5)  the Thrift Depositor Protection Oversight Board of the Resolution Trust Corporation;     (6)  the Resolution Trust Corporation;     (7)  the Federal Home Loan Mortgage Corporation; and     (8)  the Federal National Mortgage Association, shall each submit to the Congress a report containing a complete description of the actions taken by such agency pursuant to subsections (a) and (b) of this section and such recommendations for administrative and legislative action as each such agency may determine to be appropriate to carry out the purposes of such subsection. [Codified to 12 U.S.C. § 1833e] [Source:  Section 1216 of title XII of the Act of August 9, 1989 (Pub. L. No. 101-73: 103 Stat. 529), effective August 9, 1989; section 302(a) of title III of the Act of December 12, 1991 (Pub. L. No. 102-33; 105 Stat. 1767), effective February 1, 1992; section 1216(g) of title II of the Act of July 30, 2008 (Pub. L. No. 110--289; 122 Stat. 2793), effective July 30, 2008] * * * * * [The page following this is 8590.11.]   *Editor's Note:  The first section 1116(e) was added by section 701(a) of title VII of the Act of December 12, 1991 (Pub. L. No. 102--233; 105 Stat. 1792), effective December 12, 1991.   The second section 1116(e) was added by section 472(a) of title IV of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2386), effective December 19, 1991. Go Back to Text [Main Tabs]     [Table of Contents - 8000]     [Index]     [Previous Page]     [Next Page]     [Search]

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