H. R. 3474—60
and the National Credit Union Administration Board shall 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.—Not later than 180 days
after the date of enactment of this Act, each Federal banking
agency and the National Credit Union Administration Board
shall appoint an ombudsman.
(2) DUTIES OF OMBUDSMAN.—The ombudsman appointed
in accordance with paragraph (1) for any agency shall—
(A) act as a liaison between the agency and any affected
person with respect to any problem such party may have
in dealing with the agency resulting from the regulatory
activities of the agency; and
(B) assure that safeguards exist to encourage complain-
ants to come forward and preserve confidentiality.
(e) ALTERNATIVE DISPUTE RESOLUTION PILOT PROGRAM.—
(1) IN GENERAL.—Not later than 18 months after the date
of enactment of this Act, each Federal banking agency and
the National Credit Union Administration Board shall 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 pro-
gram’’) that is consistent with the requirements of subchapter
IV of chapter 5 of title 5, United States Code, 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) shall—
(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.—Not later than 18 months
after the date on which a pilot program is implemented under
paragraph (1), the Administrative Conference of the United
States shall 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 Adminis-
tration Board.
(4) IMPLEMENTATION
OF
PROGRAM.—At any time after
completion of the evaluation under paragraph (3)(A), any Fed-
eral banking agency and the National Credit Union Administra-
tion Board may 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 main-
tains an alternative dispute resolution program as of the
H. R. 3474—61
date of enactment of this Act under any other provision
of law, the Administrative Conference of the United States
shall include such program in the evaluation conducted
under paragraph (3)(A).
(B) MULTIPLE
ADR
PROGRAMS.—No provision of this
section shall be construed as precluding any Federal bank-
ing agency or the National Credit Union Administration
Board from establishing more than 1 alternative means
of dispute resolution.
(f) DEFINITIONS.—For purposes of this section, the following
definitions shall 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 signifi-
cant to an institution; and
(B) does not include a determination by a Federal
banking agency or the National Credit Union Administra-
tion Board to appoint a conservator or receiver for an
insured depository institution or a liquidating agent for
an insured credit union, as the case may be, or a decision
to take action pursuant to section 38 of the Federal Deposit
Insurance Act or section 212 of the Federal Credit Union
Act, 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, United States
Code.
(4) ISSUES
IN
CONTROVERSY.—The term ‘‘issues in con-
troversy’’ 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 may 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 Administra-
tion Board determines that alternative means of dispute
resolution would be appropriate.
(g) EFFECT
ON OTHER AUTHORITY.—Nothing in this section
shall affect the authority of an appropriate Federal banking agency
or the National Credit Union Administration Board to take enforce-
ment or supervisory action.
H. R. 3474—62
SEC. 310. ELECTRONIC FILING OF CURRENCY TRANSACTION REPORTS.
Section 123 of Public Law 91–508 (12 U.S.C. 1953) is amended
by adding at the end the following new subsection:
‘‘(c) ACCEPTANCE OF AUTOMATED RECORDS.—The Secretary shall
permit an uninsured bank or financial institution to retain or
maintain records referred to in subsection (a) in electronic or auto-
mated form, subject to terms and conditions established by the
Secretary.’’.
SEC. 311. BANK SECRECY ACT PUBLICATION REQUIREMENTS.
(a) IN GENERAL.—Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the following new
section:
‘‘SEC. 5329. STAFF COMMENTARIES.
‘‘The Secretary shall—
‘‘(1) publish all written rulings interpreting this subchapter;
and
‘‘(2) annually issue a staff commentary on the regulations
issued under this subchapter.’’.
(b) CONFORMING AMENDMENT.—The table of sections for chapter
53 of title 31, United States Code, is amended by inserting after
the item relating to section 5328 the following new item:
‘‘5329. Staff commentaries.’’.
SEC. 312. EXEMPTION OF BUSINESS LOANS FROM REAL ESTATE
SETTLEMENT PROCEDURES ACT REQUIREMENTS.
The Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2601 et seq.) is amended by inserting after section 6 the following
new section:
‘‘SEC. 7. EXEMPTED TRANSACTIONS.
‘‘This Act does not apply to credit transactions involving exten-
sions of credit—
‘‘(1) primarily for business, commercial, or agricultural pur-
poses; or
‘‘(2) to government or governmental agencies or instrumen-
talities.’’.
SEC. 313. FLEXIBILITY IN CHOOSING BOARDS OF DIRECTORS.
Section 5146 of the Revised Statutes (12 U.S.C. 72) is amended
in the 1st sentence, by striking ‘‘two thirds’’ and inserting ‘‘a major-
ity’’.
SEC. 314. HOLDING COMPANY AUDIT REQUIREMENTS.
(a) IN GENERAL.—Section 36(i) of the Federal Deposit Insurance
Act (12 U.S.C. 1831m(i)) is amended—
(1) by redesignating paragraph (1) as subparagraph (A)
and indenting appropriately;
(2) by striking ‘‘Except with respect’’ and inserting the
following:
‘‘(1) IN GENERAL.—Except with respect’’; and
(3) by striking paragraph (2) and inserting the following:
‘‘(B) the institution—
‘‘(i) has total assets, as of the beginning of such
fiscal year, of less than $5,000,000,000; or
‘‘(ii) has—
H. R. 3474—63
‘‘(I) total assets, as of the beginning of such
fiscal year, of $5,000,000,000, or more; and
‘‘(II) a CAMEL composite rating of 1 or 2
under the Uniform Financial Institutions Rating
System (or an equivalent rating by any such
agency under a comparable rating system) as of
the most recent examination of such institution
by the Corporation or the appropriate Federal
banking agency.
‘‘(2) LARGE INSTITUTIONS.—For purposes of this subsection,
in the case of an insured depository institution described in
paragraph (1)(B)(ii) that the Corporation determines to be a
large institution, the audit committee of the holding company
of such an institution shall not include any large customers
of the institution.
‘‘(3) APPLICABILITY BASED ON RISK TO FUND.—The appro-
priate Federal banking agency may require an institution with
total assets in excess of $9,000,000,000 to comply with this
section, notwithstanding the exemption provided by this sub-
section, if it determines that such exemption would create
a significant risk to the affected deposit insurance fund if
applied to that institution.’’.
(b) WRITTEN NOTICE OF REQUIREMENT FOR AUDIT OF QUAR-
TERLY REPORTS.—Section 36(g)(2) of the Federal Deposit Insurance
Act (12 U.S.C. 1831m(g)(2)) is amended by adding at the end
the following new subparagraph:
‘‘(D) NOTICE TO INSTITUTION.—The Corporation shall
promptly notify an insured depository institution, in writ-
ing, of a determination pursuant to subparagraph (A) to
require a review of such institution’s quarterly financial
reports.’’.
SEC. 315. STATE REGULATION OF REAL ESTATE APPRAISALS.
Section 1122 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3351) is amended—
(1) by redesignating subsections (b) through (e) as sub-
sections (c) through (f), respectively;
(2) by inserting after subsection (a) the following new
subsection:
‘‘(b) RECIPROCITY.—The Appraisal Subcommittee shall encour-
age the States to develop reciprocity agreements that readily author-
ize appraisers who are licensed or certified in one State (and who
are in good standing with their State appraiser certifying or licens-
ing agency) to perform appraisals in other States.’’; and
(3) in subsection (a)—
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C);
(B) by striking ‘‘A State’’ and inserting the following:
‘‘(1) IN GENERAL.—A State’’; and
(C) by adding at the end the following new paragraph:
‘‘(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.’’.