to accrue not later than the business day provisional credit
is received.
SEC. 8. PERIODIC STATEMENTS.
Each financial intermediary shall include on or with
each period statement provided to each investor a clear
and conspicuous disclosure of the following information
with respect to such account:
(1) The annual percentage yield earned.
(2) The amount of earnings.
(3) The amount of any fees or charges imposed.
(4) The number of days in the reporting period.
SEC. 9. REGULATIONS.
(a) IN GENERAL.—
(1) REGULATIONS REQUIRED.—Before the end
of the 9-month period beginning on the date of the
enactment of this Act, the Federal agency shall pre-
scribe regulations to carry out the purpose and pro-
visions of this Act.
(2) EFFECTIVE DATE OF REGULATIONS.—The
regulation prescribed under paragraph (1) shall take
effect not later than 6 months after publication in
final form.
(3) CONTENTS OF REGULATIONS.—The regula-
tions prescribed under paragraph (1) may contain
such classifications, differentiations, or other provi-
sions, and may provide for such adjustments and ex-
ceptions for any class of accounts as, in the judg-
ment of the Federal agency are necessary or proper
to carry out the purposes of this Act, to prevent cir-
cumvention or evasion of the requirements of this
Act, or to facilitate compliance with the require-
ments of this Act.
(b) MODEL FORMS AND CLAUSES.—
(1) IN
GENERAL.—The Federal agency shall
publish model forms and clauses for common disclo-
sures to facilitate compliance with this Act. In devis-
ing such forms, the agency shall consider the use by
financial intermediaries of data processing or similar
automated machines.
(2) USE OF FORMS AND CLAUSES DEEMED IN
COMPLIANCE.—Nothing in this Act may be con-
strued to require a financial intermediary to use any
such model form or clause prescribed by the agency
under this subsection. A financial intermediary shall
be deemed to be in compliance with the disclosure
provisions of this Act if the financial intermediary—
(A) uses any appropriate model form or
clause as published by the agency; or
(B) uses any such model form or clause
and changes it by—
(i) deleting any information which is
not required by this Act; or
(ii) rearranging the format, if in mak-
ing such deletion or rearranging the for-
mat, the financial intermediary does not
affect the substance, clarity, or meaningful
sequence of the disclosure.
SEC. 10. ADMINISTRATIVE ENFORCEMENT.
(a) IN GENERAL.—Compliance with the requirements
imposed under this Act shall be enforced under øidentify
agencies¿.
(b) REGULATIONS BY OTHER AGENCIES.—The au-
thority of the Federal agency to issue regulations under
this Act does not impair the authority of any other Fed-
eral agency referred to, to make rules regarding its own
procedures in enforcing compliance with the requirements
imposed under this Act.
SEC. 11. LIABILITY.
(a) LIABILITY.—Except as otherwise provided in this
section, any financial intermediaries which fails to comply
with any requirement imposed under this Act or any regu-
lation prescribed under this Act with respect to any person
who is an investor is liable to such person in an amount
equal to the sum of—
(1) any actual damage sustained by such person
as a result of the failure;
(2)(A) in the case of an individual action, such
additional amount as the court may allow, except
that the liability under this subparagraph shall not
be less than $1,000; or
(B) in the case of a class action, such amount
as the court may allow, except that—
(i) as to each member of the class, no min-
imum recovery shall be applicable; and
(ii) the total recovery under this subpara-
graph in any class action or series of class ac-
tions arising out of the same failure to comply
by the same financial intermediary shall not be
less than $500,000; and
(3) in the case of any successful action to en-
force any liability under paragraph (1) or (2), the
costs of the action, together with a reasonable attor-
ney’s fee as determined by the court.
(b) CLASS ACTION AWARDS.—In determining the
amount of any award in any class action, the court shall
consider, among other relevant factors—
(1) the amount of any actual damages awarded;
(2) the frequency and persistence of failures of
compliance;
(3) the resources of the financial intermediary;
(4) the number of persons adversely affected;
and
(5) the extent to which the failure of compli-
ance was intentional.
(c) BONA FIDE ERRORS.—
(1) GENERAL RULE.—A financial intermediary
may not be held liable in any action brought under
this section for a violation of this Act if the financial
intermediary demonstrates by a preponderance of
the evidence that the violation was not intentional
and resulted from a bona fide error notwithstanding
the maintenance of procedures reasonably adapted
to avoid any such error.
(2) EXAMPLES.—Examples of a bona fide error
include clerical, calculation, computer malfunction
and programming, and printing errors, except that
an error of legal judgment with respect to a finan-
cial intermediary’s obligation under this Act is not
a bond fide error.
(d) NO LIABILITY FOR OVERPAYMENT.—A financial
intermediary may not be held liable in any action under
this section for a violation of this Act if the violation has
resulted in—
(1) earnings paid to the investor in an amount
greater than the amount determined under any dis-
closure applicable with respect to such payment; or
(2) a charge to the investor in an amount less
than the amount determined under the disclosed
charge or fee schedule applicable with respect to
such charge.
(e) JURISDICTION.—Any action under this section
may be brought in any United States district court, or
in any other court of competent jurisdiction, within 1 year
after the date of the occurrence of the violation involved.
(f) RELIANCE ON FEDERAL AGENCY RULINGS.—No
provision of this section imposing any liability shall apply
to any act done or omitted in good faith in conformity
with any regulation or order, or any interpretation of any
regulation or order, of the agency, or in conformity with
any interpretation or approval by an official or employee
of the agency duly authorized by the agency to issue such
interpretation or approval under procedures prescribed by
the agency, notwithstanding, the fact that after such act
or omission has occurred, such regulation, order, interpre-
tation, or approval is amended, rescinded, or determined
by judicial or other authority to be invalid for any reason.
(g) NOTIFICATION OF AND ADJUSTMENT FOR ER-
RORS.—A financial intermediary shall not be liable under
this section for any failure to comply with any requirement
imposed under this Act with respect to any account if—
(1) before—
(A) the end of the 60-day period beginning
on the date on which the financial intermediary
discovered the failure to comply;
(B) any action is instituted against the fi-
nancial intermediary by the investor under this
section with respect to such failure to comply;
and
(C) any written notice of such failure to
comply is received by the financial intermediary
from the investor, the financial intermediary
notifies the investor of the failure of such finan-
cial intermediary to comply with such require-
ment; and
(2) the financial intermediary makes such ad-
justments as may be necessary with respect to such
account to ensure that—
(A) the investor will not be liable for any
amount in excess of the amount actually dis-
closed with respect to any fee or charge;
(B) the investor will not be liable for any
fee or charge imposed under any condition not
actually disclosed; and
(C) earnings on amounts in such account
will accrue at the annual percentage yield, and
under the conditions, actually disclosed (and
credit will be provided for earnings already ac-
crued at a different annual percentage yield and
under different conditions than the yield or con-
ditions disclosed).
(h) MULTIPLE INTERESTS IN 1 ACCOUNT.—If more
than 1 person holds an interest in any account—
(1) the minimum and maximum amounts of li-
ability under subsection (a)(2)(A) for any failure to
comply with the requirements of this Act shall apply
with respect to such account; and
(2) the court shall determine the manner in
which the amount of any such liability with respect
to such account shall be distributed among such per-
sons.
(i) CONTINUING FAILURE TO DISCLOSE.—
(1) CERTAIN CONTINUING FAILURES TREATED
AS 1 VIOLATION.—Except as provided in paragraph
(2), 
the 
continuing 
failure 
of 
any 
financial
intermediary to disclose any particular term required
to be disclosed under this Act with respect to a par-
ticular account shall be treated as a single violation
for purposes of determining the amount of any li-
ability under subsection (a) for such failure to dis-
close.
(2) SUBSEQUENT FAILURE TO DISCLOSE.—The
continuing failure of any depository institution to
disclose any particular term required to be disclosed
under this Act with respect to a particular term re-
quired to be disclosed under this Act with respect to
a particular account after judgment has been ren-
dered in favor of the investor in connection with a
prior failure to disclose such term with respect to
such account shall be treated as a subsequent viola-
tion for purposes of determining liability under sub-
section (a).
SEC. 12. DEFINITIONS.
For purposes of this Act:
(1) ACCOUNT.—The term ‘‘account’’ means any
account offered to any person.
(2) INVESTOR.—The term ‘‘investor’’ means
any person.
(3) FINANCIAL INTERMEDIARY.—The term ‘‘fi-
nancial intermediary’’ excludes those identified in
clauses (i) through (vi) of section 19(b)(1)(A) of the
Federal Reserve Act.
(4) FEDERAL AGENCY.—øTo be supplied.¿