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‘‘(A) the person has made the disclosures
to the consumer required by paragraph (1); and
‘‘(B) the person will comply with sub-
section (b).’’;
(3) in subsection (b), by striking ‘‘shall’’ the
second place such term appears; and
(4) by adding at the end the following new sub-
section:
‘‘(d) PROHIBITIONS.—
‘‘(1) CERTIFICATION.—A consumer reporting
agency shall not prepare or furnish an investigative
consumer report unless the agency has received a
certification under subsection (a)(2) from the person
who requested the report.
‘‘(2) INQUIRIES.—A consumer reporting agency
shall not make an inquiry for the purpose of prepar-
ing an investigative consumer report on a consumer
for employment purposes if the making of the in-
quiry by an employer or prospective employer of the
consumer would violate any applicable Federal or
State equal employment opportunity law or regula-
tion.
‘‘(3) CERTAIN
PUBLIC
RECORD
INFORMA-
TION.—Except as otherwise provided in section 613,
a consumer reporting agency shall not furnish an in-
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vestigative consumer report that includes informa-
tion that is a matter of public record and that re-
lates to an arrest, indictment, conviction, civil judi-
cial action, tax lien, or outstanding judgment, unless
the agency has verified the accuracy of the informa-
tion during the 30-day period ending on the date on
which the report is furnished.
‘‘(4) CERTAIN
ADVERSE
INFORMATION.—A
consumer reporting agency shall not prepare or fur-
nish an investigative consumer report on a consumer
that contains information that is adverse to the in-
terest of the consumer and that is obtained through
a personal interview with a neighbor, friend, or asso-
ciate of the consumer or with another person with
whom the consumer is acquainted or who has knowl-
edge of such item of information, unless—
‘‘(A) the agency has followed reasonable
procedures to obtain confirmation of the infor-
mation, from an additional source that has
independent and direct knowledge of the infor-
mation; or
‘‘(B) the person interviewed is the best
possible source of the information.’’.
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SEC. 2415. INCREASED CRIMINAL PENALTIES FOR OBTAIN-
ING 
INFORMATION 
UNDER 
FALSE 
PRE-
TENSES.
(a) OBTAINING INFORMATION UNDER FALSE PRE-
TENSES.—Section 619 of the Fair Credit Reporting Act
(15 U.S.C. 1681q) is amended by striking ‘‘fined not more
than $5,000 or imprisoned not more than one year, or
both’’ and inserting ‘‘fined under title 18, United States
Code, imprisoned for not more than 2 years, or both’’.
(b) UNAUTHORIZED DISCLOSURES BY OFFICERS OR
EMPLOYEES.—Section 620 of the Fair Credit Reporting
Act (15 U.S.C. 1681r) is amended by striking ‘‘fined not
more than $5,000 or imprisoned not more than one year,
or both’’ and inserting ‘‘fined under title 18, United States
Code, imprisoned for not more than 2 years, or both’’.
SEC. 2416. ADMINISTRATIVE ENFORCEMENT.
(a) AVAILABLE ENFORCEMENT POWERS.—Section
621(a) of the Fair Credit Reporting Act (15 U.S.C.
1681s(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by adding at the end the following new
paragraph:
‘‘(2)(A) In the event of a knowing violation, which
constitutes a pattern or practice of violations of this title,
the Commission may commence a civil action to recover
a civil penalty in a district court of the United States
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against any person that violates this title. In such action,
such person shall be liable for a civil penalty of not more
than $2,500 per violation.
‘‘(B) In determining the amount of a civil penalty
under subparagraph (A), the court shall take into account
the degree of culpability, any history of prior such con-
duct, ability to pay, effect on ability to continue to do busi-
ness, and such other matters as justice may require.
‘‘(3) Notwithstanding paragraph (2), a court may not
impose any civil penalty on a person for a violation of sec-
tion 623(a)(1) unless the person has been enjoined from
committing the violation, or ordered not to commit the vio-
lation, in an action or proceeding brought by or on behalf
of the Federal Trade Commission, and has violated the
injunction or order, and the court may not impose any
civil penalty for any violation occurring before the date
of the violation of the injunction or order.
‘‘(4) Neither the Commission nor any other agency
referred to in subsection (b) may prescribe trade regula-
tion rules or other regulations with respect to this title.’’.
(b) AGENCIES RESPONSIBLE FOR ENFORCEMENT.—
Section 621 of the Fair Credit Reporting Act (15 U.S.C.
1681s) is amended—
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(1) in subsection (a), by inserting ‘‘ENFORCE-
MENT BY FEDERAL TRADE COMMISSION.—’’ before
‘‘Compliance with the requirements’’;
(2) in subsection (b), by striking the matter
preceding paragraph (1) and inserting the following:
‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Compli-
ance with the requirements imposed under this title with
respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who furnish
information to such agencies, and users of information
that are subject to subsection (d) or (e) of section 615
shall be enforced under—’’; and
(3) in subsection (c), by adding at the end the
following: ‘‘Notwithstanding the preceding, no agen-
cy referred to in subsection (b) may conduct an ex-
amination of a bank, savings association, or credit
union regarding compliance with the provisions of
this title, except in response to a complaint (or if the
agency otherwise has knowledge) that the bank, sav-
ings association, or credit union has violated a provi-
sion of this title, in which case, the agency may con-
duct an examination as necessary to investigate the
complaint. If an agency determines during an inves-
tigation in response to a complaint that a violation
of this title has occurred, the agency may, during its
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next 2 regularly scheduled examinations of the bank,
savings association, or credit union, examine for
compliance with this title.’’.
SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORT-
ING ACT.
Section 621 of the Fair Credit Reporting Act (15
U.S.C. 1681s) is amended—
(1) by redesignating subsection (c) as sub-
section (d); and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF STATES.—In addition to
such other remedies as are provided under State
law, if the chief law enforcement officer of a State,
or an official or agency designated by a State, has
reason to believe that any person has violated or is
violating this title, the State—
‘‘(A) may bring an action to enjoin such
violation in any appropriate United States dis-
trict court or in any other court of competent
jurisdiction;
‘‘(B) subject to paragraph (5), may bring
an action on behalf of the residents of the State
to recover—
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‘‘(i) damages for which the person is
liable to such residents under sections 616
and 617 as a result of the violation;
‘‘(ii) in the case of a violation of sec-
tion 623(a), damages for which the person
would, but for section 623(c), be liable to
such residents as a result of the violation;
or
‘‘(iii) damages of not more than
$1,000 for each willful or negligent viola-
tion; and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attor-
ney fees as determined by the court.
‘‘(2) RIGHTS OF FEDERAL REGULATORS.—The
State shall serve prior written notice of any action
under paragraph (1) upon the Federal Trade Com-
mission or the appropriate Federal regulator deter-
mined under subsection (b) and provide the Commis-
sion or appropriate Federal regulator with a copy of
its complaint, except in any case in which such prior
notice is not feasible, in which case the State shall
serve such notice immediately upon instituting such
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action. The Federal Trade Commission or appro-
priate Federal regulator shall have the right—
‘‘(A) to intervene in the action;
‘‘(B) upon so intervening, to be heard on
all matters arising therein;
‘‘(C) to remove the action to the appro-
priate United States district court; and
‘‘(D) to file petitions for appeal.
‘‘(3) INVESTIGATORY
POWERS.—For purposes
of bringing any action under this subsection, nothing
in this subsection shall prevent the chief law enforce-
ment officer, or an official or agency designated by
a State, from exercising the powers conferred on the
chief law enforcement officer or such official by the
laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(4) LIMITATION
ON
STATE
ACTION
WHILE
FEDERAL ACTION PENDING.—If the Federal Trade
Commission or the appropriate Federal regulator
has instituted a civil action or an administrative ac-
tion under section 8 of the Federal Deposit Insur-
ance Act for a violation of this title, no State may,
during the pendency of such action, bring an action
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under this section against any defendant named in
the complaint of the Commission or the appropriate
Federal regulator for any violation of this title that
is alleged in that complaint.
‘‘(5) LIMITATIONS ON STATE ACTIONS FOR VIO-
LATION OF SECTION 623(a)(1).—
‘‘(A) VIOLATION
OF
INJUNCTION
RE-
QUIRED.—A State may not bring an action
against a person under paragraph (1)(B) for a
violation of section 623(a)(1), unless—
‘‘(i) the person has been enjoined
from committing the violation, in an action
brought by the State under paragraph
(1)(A); and
‘‘(ii) the person has violated the in-
junction.
‘‘(B) LIMITATION ON DAMAGES RECOVER-
ABLE.—In an action against a person under
paragraph (1)(B) for a violation of section
623(a)(1), a State may not recover any dam-
ages incurred before the date of the violation of
an injunction on which the action is based.’’.
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SEC. 2418. FEDERAL RESERVE BOARD AUTHORITY.
Section 621 of the Fair Credit Reporting Act (15
U.S.C. 1681s) is amended by adding at the end the follow-
ing new subsection:
‘‘(e) INTERPRETIVE AUTHORITY.—The Board of
Governors of the Federal Reserve System may issue inter-
pretations of any provision of this title as such provision
may apply to any persons identified under paragraph (1),
(2), and (3) of subsection (b), or to the holding companies
and affiliates of such persons, in consultation with Federal
agencies identified in paragraphs (1), (2), and (3) of sub-
section (b).’’.
SEC. 2419. PREEMPTION OF STATE LAW.
Section 624 of the Fair Credit Reporting Act (as re-
designated by section 2413(a) of this chapter) is amend-
ed—
(1) by striking ‘‘This title’’ and inserting ‘‘(a)
IN GENERAL.—Except as provided in subsections
(b) and (c), this title’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) GENERAL EXCEPTIONS.—No requirement or
prohibition may be imposed under the laws of any State—
‘‘(1) with respect to any subject matter regu-
lated under—
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‘‘(A) subsection (c) or (e) of section 604,
relating to the prescreening of consumer re-
ports;
‘‘(B) section 611, relating to the time by
which a consumer reporting agency must take
any action, including the provision of notifica-
tion to a consumer or other person, in any pro-
cedure related to the disputed accuracy of infor-
mation in a consumer’s file, except that this
subparagraph shall not apply to any State law
in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of
1996;
‘‘(C) subsections (a) and (b) of section
615, relating to the duties of a person who
takes any adverse action with respect to a
consumer;
‘‘(D) section 615(d), relating to the duties
of persons who use a consumer report of a
consumer in connection with any credit or in-
surance transaction that is not initiated by the
consumer and that consists of a firm offer of
credit or insurance;
‘‘(E) section 605, relating to information
contained in consumer reports, except that this
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subparagraph shall not apply to any State law
in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of
1996; or
‘‘(F) section 623, relating to the respon-
sibilities of persons who furnish information to
consumer reporting agencies, except that this
paragraph shall not apply—
‘‘(i) with respect to section 54A(a) of
chapter 93 of the Massachusetts Anno-
tated Laws (as in effect on the date of en-
actment of the Consumer Credit Reporting
Reform Act of 1996); or
‘‘(ii) 
with 
respect 
to 
section
1785.25(a) of the California Civil Code (as
in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of
1996);
‘‘(2) with respect to the exchange of informa-
tion among persons affiliated by common ownership
or common corporate control, except that this para-
graph shall not apply with respect to subsection (a)
or (c)(1) of section 2480e of title 9, Vermont Stat-
utes Annotated (as in effect on the date of enact-
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ment of the Consumer Credit Reporting Reform Act
of 1996); or
‘‘(3) with respect to the form and content of
any disclosure required to be made under section
609(c).
‘‘(c) DEFINITION OF FIRM OFFER OF CREDIT OR IN-
SURANCE.—Notwithstanding any definition of the term
‘firm offer of credit or insurance’ (or any equivalent term)
under the laws of any State, the definition of that term
contained in section 603(l) shall be construed to apply in
the enforcement and interpretation of the laws of any
State governing consumer reports.
‘‘(d) LIMITATIONS.—Subsections (b) and (c)—
‘‘(1) do not affect any settlement, agreement, or
consent judgment between any State Attorney Gen-
eral and any consumer reporting agency in effect on
the date of enactment of the Consumer Credit Re-
porting Reform Act of 1996; and
‘‘(2) do not apply to any provision of State law
(including any provision of a State constitution)
that—
‘‘(A) is enacted after January 1, 2004;
‘‘(B) states explicitly that the provision is
intended to supplement this title; and
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‘‘(C) gives greater protection to consumers
than is provided under this title.’’.
SEC. 2420. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise specifically
provided in this chapter, the amendments made by this
chapter shall become effective 365 days after the date of
enactment of this Act.
(b) EARLY COMPLIANCE.—Any person or other entity
that is subject to the requirements of this chapter may,
at its option, comply with any provision of this chapter
before the date on which that provision becomes effective
under this chapter, in which case, each of the correspond-
ing provisions of this chapter shall be fully applicable to
such person or entity.
SEC. 2421. RELATIONSHIP TO OTHER LAW.
Nothing in this chapter or the amendments made by
this chapter shall be considered to supersede or otherwise
affect section 2721 of title 18, United States Code, with
respect to motor vehicle records for surveys, marketing,
or solicitations.
SEC. 2422. FEDERAL RESERVE BOARD STUDY.
(a) STUDY REQUIRED.—The Board of Governors of
the Federal Reserve System, in consultation with the other
Federal banking agencies (as defined in section 3 of the
Federal Deposit Insurance Act) and the Federal Trade
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Commission, shall conduct a study of whether organiza-
tions which, as of the date of the enactment of this Act,
are not subject to the Fair Credit Reporting Act as
consumer reporting agencies (as defined in section 603 of
such Act) are engaged in the business of making sensitive
consumer identification information, including social secu-
rity numbers, mothers’ maiden names, prior addresses,
and dates of birth, available to the general public.
(b) DETERMINATION OF POTENTIAL FOR FRAUD.—
If the Board of Governors of the Federal Reserve System
determines that organizations referred to in subsection (a)
are engaged in the business of making sensitive consumer
identification information available to the general public,
the Board shall determine—
(1) whether such activities create undue poten-
tial for fraud and risk of loss to insured depository
institutions (as defined in section 3 of the Federal
Deposit Insurance Act); and
(2) if so, whether changes in Federal law are
necessary to address such risks of fraud and loss.
(c) REPORT TO CONGRESS.—Before the end of the
6-month period beginning on the date of the enactment
of this Act, the Board of Governors of the Federal Reserve
System shall submit a report to the Congress containing—
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(1) the findings and conclusion of the Board in
connection with the study required under subsections
(a) and (b); and
(2) recommendations for such legislative or ad-
ministrative action as the Board determines to be
appropriate.
CHAPTER 2—CREDIT REPAIR
ORGANIZATIONS
SEC. 2451. REGULATION OF CREDIT REPAIR ORGANIZA-
TIONS.
Title IV of the Consumer Credit Protection Act (Pub-
lic Law 90–321, 82 Stat. 164) is amended to read as fol-
lows:
‘‘TITLE IV—CREDIT REPAIR
ORGANIZATIONS
‘‘Sec.
‘‘401. Short title.
‘‘402. Findings and purposes.
‘‘403. Definitions.
‘‘404. Prohibited practices.
‘‘405. Disclosures.
‘‘406. Credit repair organizations contracts.
‘‘407. Right to cancel contract.
‘‘408. Noncompliance with this title.
‘‘409. Civil liability.
‘‘410. Administrative enforcement.
‘‘411. Statute of limitations.
‘‘412. Relation to State law.
‘‘413. Effective date.
‘‘SEC. 401. SHORT TITLE.
‘‘This title may be cited as the ‘Credit Repair Organi-
zations Act’.
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‘‘SEC. 402. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) Consumers have a vital interest in estab-
lishing and maintaining their credit worthiness and
credit standing in order to obtain and use credit. As
a result, consumers who have experienced credit
problems may seek assistance from credit repair or-
ganizations which offer to improve the credit stand-
ing of such consumers.
‘‘(2) Certain advertising and business practices
of some companies engaged in the business of credit
repair services have worked a financial hardship
upon consumers, particularly those of limited eco-
nomic means and who are inexperienced in credit
matters.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to ensure that prospective buyers of the
services of credit repair organizations are provided
with the information necessary to make an informed
decision regarding the purchase of such services; and
‘‘(2) to protect the public from unfair or decep-
tive advertising and business practices by credit re-
pair organizations.
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‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this title, the following definitions
apply:
‘‘(1) CONSUMER.—The term ‘consumer’ means
an individual.
‘‘(2) CONSUMER
CREDIT
TRANSACTION.—The
term ‘consumer credit transaction’ means any trans-
action in which credit is offered or extended to an
individual for personal, family, or household pur-
poses.
‘‘(3) CREDIT
REPAIR
ORGANIZATION.—The
term ‘credit repair organization’—
‘‘(A) means any person who uses any in-
strumentality of interstate commerce or the
mails to sell, provide, or perform (or represent
that such person can or will sell, provide, or
perform) any service, in return for the payment
of money or other valuable consideration, for
the express or implied purpose of—
‘‘(i) improving any consumer’s credit
record, credit history, or credit rating; or
‘‘(ii) providing advice or assistance to
any consumer with regard to any activity
or service described in clause (i); and
‘‘(B) does not include—
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‘‘(i) any nonprofit organization which
is exempt from taxation under section
501(c)(3) of the Internal Revenue Code of
1986;
‘‘(ii) any creditor (as defined in sec-
tion 103 of the Truth in Lending Act),
with respect to any consumer, to the extent
the creditor is assisting the consumer to
restructure any debt owed by the consumer
to the creditor; or
‘‘(iii) any depository institution (as
that term is defined in section 3 of the
Federal Deposit Insurance Act) or any
Federal or State credit union (as those
terms are defined in section 101 of the
Federal Credit Union Act), or any affiliate
or subsidiary of such a depository institu-
tion or credit union.
‘‘(4) CREDIT.—The term ‘credit’ has the mean-
ing given to such term in section 103(e) of this Act.
‘‘SEC. 404. PROHIBITED PRACTICES.
‘‘(a) IN GENERAL.—No person may—
‘‘(1) make any statement, or counsel or advise
any consumer to make any statement, which is un-
true or misleading (or which, upon the exercise of
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reasonable care, should be known by the credit re-
pair organization, officer, employee, agent, or other
person to be untrue or misleading) with respect to
any consumer’s credit worthiness, credit standing, or
credit capacity to—
‘‘(A) any consumer reporting agency (as
defined in section 603(f) of this Act); or
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(2) make any statement, or counsel or advise
any consumer to make any statement, the intended
effect of which is to alter the consumer’s identifica-
tion to prevent the display of the consumer’s credit
record, history, or rating for the purpose of conceal-
ing adverse information that is accurate and not ob-
solete to—
‘‘(A) any consumer reporting agency;
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
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‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(3) make or use any untrue or misleading rep-
resentation of the services of the credit repair orga-
nization; or
‘‘(4) engage, directly or indirectly, in any act,
practice, or course of business that constitutes or re-
sults in the commission of, or an attempt to commit,
a fraud or deception on any person in connection
with the offer or sale of the services of the credit re-
pair organization.
‘‘(b) PAYMENT IN ADVANCE.—No credit repair orga-
nization may charge or receive any money or other valu-
able consideration for the performance of any service
which the credit repair organization has agreed to perform
for any consumer before such service is fully performed.
‘‘SEC. 405. DISCLOSURES.
‘‘(a) DISCLOSURE REQUIRED.—Any credit repair or-
ganization shall provide any consumer with the following
written statement before any contract or agreement be-
tween the consumer and the credit repair organization is
executed:
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‘‘ ‘Consumer Credit File Rights
Under State and Federal Law
‘‘ ‘You have a right to dispute inaccurate information
in your credit report by contacting the credit bureau di-
rectly. However, neither you nor any ‘‘credit repair’’ com-
pany or credit repair organization has the right to have
accurate, current, and verifiable information removed
from your credit report. The credit bureau must remove
accurate, negative information from your report only if it
is over 7 years old. Bankruptcy information can be re-
ported for 10 years.
‘‘ ‘You have a right to obtain a copy of your credit
report from a credit bureau. You may be charged a rea-
sonable fee. There is no fee, however, if you have been
turned down for credit, employment, insurance, or a rental
dwelling because of information in your credit report with-
in the preceding 60 days. The credit bureau must provide
someone to help you interpret the information in your
credit file. You are entitled to receive a free copy of your
credit report if you are unemployed and intend to apply
for employment in the next 60 days, if you are a recipient
of public welfare assistance, or if you have reason to be-
lieve that there is inaccurate information in your credit
report due to fraud.
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‘‘ ‘You have a right to sue a credit repair organization
that violates the Credit Repair Organization Act. This law
prohibits deceptive practices by credit repair organiza-
tions.
‘‘ ‘You have the right to cancel your contract with any
credit repair organization for any reason within 3 business
days from the date you signed it.
‘‘ ‘Credit bureaus are required to follow reasonable
procedures to ensure that the information they report is
accurate. However, mistakes may occur.
‘‘ ‘You may, on your own, notify a credit bureau in
writing that you dispute the accuracy of information in
your credit file. The credit bureau must then reinvestigate
and modify or remove inaccurate or incomplete informa-
tion. The credit bureau may not charge any fee for this
service. Any pertinent information and copies of all docu-
ments you have concerning an error should be given to
the credit bureau.
‘‘ ‘If the credit bureau’s reinvestigation does not re-
solve the dispute to your satisfaction, you may send a brief
statement to the credit bureau, to be kept in your file,
explaining why you think the record is inaccurate. The
credit bureau must include a summary of your statement
about disputed information with any report it issues about
you.
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‘‘ ‘The Federal Trade Commission regulates credit
bureaus and credit repair organizations. For more infor-
mation contact:
‘‘ ‘The Public Reference Branch
‘‘ ‘Federal Trade Commission
‘‘ ‘Washington, D.C. 20580’.
‘‘(b) SEPARATE STATEMENT REQUIREMENT.—The
written statement required under this section shall be pro-
vided as a document which is separate from any written
contract or other agreement between the credit repair or-
ganization and the consumer or any other written material
provided to the consumer.
‘‘(c) RETENTION OF COMPLIANCE RECORDS.—
‘‘(1) IN GENERAL.—The credit repair organiza-
tion shall maintain a copy of the statement signed
by the consumer acknowledging receipt of the state-
ment.
‘‘(2) MAINTENANCE FOR 2 YEARS.—The copy
of any consumer’s statement shall be maintained in
the organization’s files for 2 years after the date on
which the statement is signed by the consumer.
‘‘SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.
‘‘(a) WRITTEN CONTRACTS REQUIRED.—No services
may be provided by any credit repair organization for any
consumer—
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‘‘(1) unless a written and dated contract (for
the purchase of such services) which meets the re-
quirements of subsection (b) has been signed by the
consumer; or
‘‘(2) before the end of the 3-business-day period
beginning on the date the contract is signed.
‘‘(b) TERMS AND CONDITIONS OF CONTRACT.—No
contract referred to in subsection (a) meets the require-
ments of this subsection unless such contract includes (in
writing)—
‘‘(1) the terms and conditions of payment, in-
cluding the total amount of all payments to be made
by the consumer to the credit repair organization or
to any other person;
‘‘(2) a full and detailed description of the serv-
ices to be performed by the credit repair organiza-
tion for the consumer, including—
‘‘(A) all guarantees of performance; and
‘‘(B) an estimate of—
‘‘(i) the date by which the perform-
ance of the services (to be performed by
the credit repair organization or any other
person) will be complete; or
‘‘(ii) the length of the period nec-
essary to perform such services;
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‘‘(3) the credit repair organization’s name and
principal business address; and
‘‘(4) a conspicuous statement in bold face type,
in immediate proximity to the space reserved for the
consumer’s signature on the contract, which reads as
follows: ‘You may cancel this contract without pen-
alty or obligation at any time before midnight of the
3rd business day after the date on which you signed
the contract. See the attached notice of cancellation
form for an explanation of this right.’.
‘‘SEC. 407. RIGHT TO CANCEL CONTRACT.
‘‘(a) IN GENERAL.—Any consumer may cancel any
contract with any credit repair organization without pen-
alty or obligation by notifying the credit repair organiza-
tion of the consumer’s intention to do so at any time be-
fore midnight of the 3rd business day which begins after
the date on which the contract or agreement between the
consumer and the credit repair organization is executed
or would, but for this subsection, become enforceable
against the parties.
‘‘(b) CANCELLATION FORM AND OTHER INFORMA-
TION.—Each contract shall be accompanied by a form, in
duplicate, which has the heading ‘Notice of Cancellation’
and contains in bold face type the following statement:
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‘‘ ‘You may cancel this contract, without any
penalty or obligation, at any time before midnight of
the 3rd day which begins after the date the contract
is signed by you.
‘‘ ‘To cancel this contract, mail or deliver a
signed, dated copy of this cancellation notice, or any
other written notice to [ name of credit repair
organization ] 
at 
[ address 
of 
credit 
repair
organization ] before midnight on [ date ]
‘‘ ‘I hereby cancel this transaction,
[ date ]
[ purchaser’s signature ].’.
‘‘(c) CONSUMER COPY OF CONTRACT REQUIRED.—
Any consumer who enters into any contract with any cred-
it repair organization shall be given, by the organization—
‘‘(1) a copy of the completed contract and the
disclosure statement required under section 405; and
‘‘(2) a copy of any other document the credit
repair organization requires the consumer to sign,
at the time the contract or the other document is signed.
‘‘SEC. 408. NONCOMPLIANCE WITH THIS TITLE.
‘‘(a) CONSUMER WAIVERS INVALID.—Any waiver by
any consumer of any protection provided by or any right
of the consumer under this title—
‘‘(1) shall be treated as void; and
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‘‘(A) INDIVIDUAL ACTIONS.—In the case of
any action by an individual, such additional
amount as the court may allow.
‘‘(B) CLASS ACTIONS.—In the case of a
class action, the sum of—
‘‘(i) the aggregate of the amount
which the court may allow for each named
plaintiff; and
‘‘(ii) the aggregate of the amount
which the court may allow for each other
class member, without regard to any mini-
mum individual recovery.
‘‘(3) ATTORNEYS’ FEES.—In the case of any
successful action to enforce any liability under para-
graph (1) or (2), the costs of the action, together
with reasonable attorneys’ fees.
‘‘(b) FACTORS TO BE CONSIDERED IN AWARDING
PUNITIVE DAMAGES.—In determining the amount of any
liability of any credit repair organization under subsection
(a)(2), the court shall consider, among other relevant fac-
tors—
‘‘(1) the frequency and persistence of non-
compliance by the credit repair organization;
‘‘(2) the nature of the noncompliance;
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‘‘(3) the extent to which such noncompliance
was intentional; and
‘‘(4) in the case of any class action, the number
of consumers adversely affected.
‘‘SEC. 410. ADMINISTRATIVE ENFORCEMENT.
‘‘(a) IN GENERAL.—Compliance with the require-
ments imposed under this title with respect to credit repair
organizations shall be enforced under the Federal Trade
Commission Act by the Federal Trade Commission.
‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIO-
LATIONS OF FEDERAL TRADE COMMISSION ACT.—
‘‘(1) IN GENERAL.—For the purpose of the ex-
ercise by the Federal Trade Commission of the Com-
mission’s functions and powers under the Federal
Trade Commission Act, any violation of any require-
ment or prohibition imposed under this title with re-
spect to credit repair organizations shall constitute
an unfair or deceptive act or practice in commerce
in violation of section 5(a) of the Federal Trade
Commission Act.
‘‘(2) ENFORCEMENT AUTHORITY UNDER OTHER
LAW.—All functions and powers of the Federal
Trade Commission under the Federal Trade Com-
mission Act shall be available to the Commission to
enforce compliance with this title by any person sub-
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ject to enforcement by the Federal Trade Commis-
sion pursuant to this subsection, including the power
to enforce the provisions of this title in the same
manner as if the violation had been a violation of
any Federal Trade Commission trade regulation
rule, without regard to whether the credit repair or-
ganization—
‘‘(A) is engaged in commerce; or
‘‘(B) meets any other jurisdictional tests in
the Federal Trade Commission Act.
‘‘(c) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF STATES.—In addition to
such other remedies as are provided under State
law, whenever the chief law enforcement officer of a
State, or an official or agency designated by a State,
has reason to believe that any person has violated or
is violating this title, the State—
‘‘(A) may bring an action to enjoin such
violation;
‘‘(B) may bring an action on behalf of its
residents to recover damages for which the per-
son is liable to such residents under section 409
as a result of the violation; and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
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ed the costs of the action and reasonable attor-
ney fees as determined by the court.
‘‘(2) RIGHTS OF COMMISSION.—
‘‘(A) NOTICE TO COMMISSION.—The State
shall serve prior written notice of any civil ac-
tion under paragraph (1) upon the Federal
Trade Commission and provide the Commission
with a copy of its complaint, except in any case
where such prior notice is not feasible, in which
case the State shall serve such notice imme-
diately upon instituting such action.
‘‘(B) INTERVENTION.—The Commission
shall have the right—
‘‘(i) to intervene in any action re-
ferred to in subparagraph (A);
‘‘(ii) upon so intervening, to be heard
on all matters arising in the action; and
‘‘(iii) to file petitions for appeal.
‘‘(3) INVESTIGATORY
POWERS.—For purposes
of bringing any action under this subsection, nothing
in this subsection shall prevent the chief law enforce-
ment officer, or an official or agency designated by
a State, from exercising the powers conferred on the
chief law enforcement officer or such official by the
laws of such State to conduct investigations or to
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administer oaths or affirmations or to compel the at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(4) 
LIMITATION.—Whenever 
the 
Federal
Trade Commission has instituted a civil action for
violation of this title, no State may, during the pend-
ency of such action, bring an action under this sec-
tion against any defendant named in the complaint
of the Commission for any violation of this title that
is alleged in that complaint.
‘‘SEC. 411. STATUTE OF LIMITATIONS.
‘‘Any action to enforce any liability under this title
may be brought before the later of—
‘‘(1) the end of the 5-year period beginning on
the date of the occurrence of the violation involved;
or
‘‘(2) in any case in which any credit repair or-
ganization has materially and willfully misrepre-
sented any information which—
‘‘(A) the credit repair organization is re-
quired, by any provision of this title, to disclose
to any consumer; and
‘‘(B) is material to the establishment of
the credit repair organization’s liability to the
consumer under this title,
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the end of the 5-year period beginning on the date
of the discovery by the consumer of the misrepresen-
tation.
‘‘SEC. 412. RELATION TO STATE LAW.
‘‘This title shall not annul, alter, affect, or exempt
any person subject to the provisions of this title from com-
plying with any law of any State except to the extent that
such law is inconsistent with any provision of this title,
and then only to the extent of the inconsistency.
‘‘SEC. 413. EFFECTIVE DATE.
‘‘This title shall apply after the end of the 6-month
period beginning on the date of the enactment of the Cred-
it Repair Organizations Act, except with respect to con-
tracts entered into by a credit repair organization before
the end of such period.’’.
SEC. 2452. CREDIT WORTHINESS.
It is the sense of the Senate that—
(1) individuals should generally be judged for
credit worthiness based on their own credit worthi-
ness and not on the zip code or neighborhood in
which they live; and
(2) the Federal Trade Commission, after con-
sultation with the appropriate Federal banking agen-
cy, should report to the Committee on Banking,
Housing, and Urban Affairs of the Senate as to
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whether and how the location of the residence of an
applicant for unsecured credit is considered by many
companies and financial institutions in deciding
whether an applicant should be granted credit.
Subtitle 
E—Asset 
Conservation,
Lender Liability, and Deposit
Insurance Protection
SEC. 2501. SHORT TITLE.
This subtitle may be cited as the ‘‘Asset Conserva-
tion, Lender Liability, and Deposit Insurance Protection
Act of 1996’’.
SEC. 2502. CERCLA LENDER AND FIDUCIARY LIABILITY
LIMITATIONS AMENDMENTS.
(a) IN GENERAL.—Section 107 of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9607) is amended by adding at the
end the following:
‘‘(n) LIABILITY OF FIDUCIARIES.—
‘‘(1) IN GENERAL.—The liability of a fiduciary
under any provision of this Act for the release or
threatened release of a hazardous substance at,
from, or in connection with a vessel or facility held
in a fiduciary capacity shall not exceed the assets
held in the fiduciary capacity.
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‘‘(2) EXCLUSION.—Paragraph (1) does not
apply to the extent that a person is liable under this
Act independently of the person’s ownership of a
vessel or facility as a fiduciary or actions taken in
a fiduciary capacity.
‘‘(3) LIMITATION.—Paragraphs (1) and (4) do
not limit the liability pertaining to a release or
threatened release of a hazardous substance if neg-
ligence of a fiduciary causes or contributes to the re-
lease or threatened release.
‘‘(4) SAFE HARBOR.—A fiduciary shall not be
liable in its personal capacity under this Act for—
‘‘(A) undertaking or directing another per-
son to undertake a response action under sub-
section (d)(1) or under the direction of an on
scene coordinator designated under the Na-
tional Contingency Plan;
‘‘(B) undertaking or directing another per-
son to undertake any other lawful means of ad-
dressing a hazardous substance in connection
with the vessel or facility;
‘‘(C) terminating the fiduciary relationship;
‘‘(D) including in the terms of the fidu-
ciary agreement a covenant, warranty, or other
term or condition that relates to compliance
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with an environmental law, or monitoring,
modifying or enforcing the term or condition;
‘‘(E) monitoring or undertaking 1 or more
inspections of the vessel or facility;
‘‘(F) providing financial or other advice or
counseling to other parties to the fiduciary rela-
tionship, including the settlor or beneficiary;
‘‘(G) restructuring, renegotiating, or other-
wise altering the terms and conditions of the fi-
duciary relationship;
‘‘(H) administering, as a fiduciary, a vessel
or facility that was contaminated before the fi-
duciary relationship began; or
‘‘(I) declining to take any of the actions
described in subparagraphs (B) through (H).
‘‘(5) DEFINITIONS.—As used in this Act:
‘‘(A) FIDUCIARY.—The term ‘fiduciary’—
‘‘(i) means a person acting for the
benefit of another party as a bona fide—
‘‘(I) trustee;
‘‘(II) executor;
‘‘(III) administrator;
‘‘(IV) custodian;
‘‘(V) guardian of estates or
guardian ad litem;
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‘‘(VI) receiver;
‘‘(VII) conservator;
‘‘(VIII) committee of estates of
incapacitated persons;
‘‘(IX) personal representative;
‘‘(X) trustee (including a succes-
sor to a trustee) under an indenture
agreement, trust agreement, lease, or
similar financing agreement, for debt
securities, certificates of interest or
certificates of participation in debt se-
curities, or other forms of indebted-
ness as to which the trustee is not, in
the capacity of trustee, the lender; or
‘‘(XI) representative in any other
capacity that the Administrator, after
providing public notice, determines to
be similar to the capacities described
in subclauses (I) through (X); and
‘‘(ii) does not include—
‘‘(I) a person that is acting as a
fiduciary with respect to a trust or
other fiduciary estate that was orga-
nized for the primary purpose of, or is
engaged in, actively carrying on a
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trade or business for profit, unless the
trust or other fiduciary estate was
created as part of, or to facilitate, 1
or more estate plans or because of the
incapacity of a natural person; or
‘‘(II) a person that acquires own-
ership or control of a vessel or facility
with the objective purpose of avoiding
liability of the person or of any other
person.
‘‘(B) FIDUCIARY CAPACITY.—The term ‘fi-
duciary capacity’ means the capacity of a per-
son in holding title to a vessel or facility, or
otherwise having control of or an interest in the
vessel or facility, pursuant to the exercise of the
responsibilities of the person as a fiduciary.
‘‘(6) SAVINGS CLAUSE.—Nothing in this sub-
section—
‘‘(A) affects the rights or immunities or
other defenses that are available under this Act
or other law that is applicable to a person sub-
ject to this subsection; or
‘‘(B) creates any liability for a person or a
private right of action against a fiduciary or
any other person.
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‘‘(7) NO
EFFECT
ON
CERTAIN
PERSONS.—
Nothing in this subsection applies to a person if the
person—
‘‘(A)(i) acts in a capacity other than that
of a fiduciary or in a beneficiary capacity; and
‘‘(ii) in that capacity, directly or indirectly
benefits from a trust or fiduciary relationship;
or
‘‘(B)(i) is a beneficiary and a fiduciary
with respect to the same fiduciary estate; and
‘‘(ii) as a fiduciary, receives benefits that
exceed customary or reasonable compensation,
and incidental benefits, permitted under other
applicable law.
‘‘(8) LIMITATION.—This subsection does not
preclude a claim under this Act against—
‘‘(A) the assets of the estate or trust ad-
ministered by the fiduciary; or
‘‘(B) a nonemployee agent or independent
contractor retained by a fiduciary.’’.
(b) DEFINITION OF OWNER OR OPERATOR.—Section
101(20) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601(20)) is amended by adding at the end the following:
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‘‘(E) EXCLUSION OF LENDERS NOT PAR-
TICIPANTS IN MANAGEMENT.—
‘‘(i) INDICIA OF OWNERSHIP TO PRO-
TECT SECURITY.—The term ‘owner or op-
erator’ does not include a person that is a
lender that, without participating in the
management of a vessel or facility, holds
indicia of ownership primarily to protect
the security interest of the person in the
vessel or facility.
‘‘(ii) 
FORECLOSURE.—The 
term
‘owner or operator’ does not include a per-
son that is a lender that did not partici-
pate in management of a vessel or facility
prior to foreclosure, notwithstanding that
the person—
‘‘(I) forecloses on the vessel or
facility; and
‘‘(II) after foreclosure, sells, re-
leases (in the case of a lease finance
transaction), or liquidates the vessel
or facility, maintains business activi-
ties, winds up operations, undertakes
a 
response 
action 
under 
section
107(d)(1) or under the direction of an
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on-scene coordinator appointed under
the National Contingency Plan, with
respect to the vessel or facility, or
takes any other measure to preserve,
protect, or prepare the vessel or facil-
ity prior to sale or disposition,
if the person seeks to sell, re-lease (in the
case of a lease finance transaction), or oth-
erwise divest the person of the vessel or fa-
cility at the earliest practicable, commer-
cially reasonable time, on commercially
reasonable terms, taking into account mar-
ket conditions and legal and regulatory re-
quirements.
‘‘(F) PARTICIPATION IN MANAGEMENT.—
For purposes of subparagraph (E)—
‘‘(i) the term ‘participate in manage-
ment’—
‘‘(I) means actually participating
in the management or operational af-
fairs of a vessel or facility; and
‘‘(II) does not include merely
having the capacity to influence, or
the unexercised right to control, vessel
or facility operations;
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‘‘(ii) a person that is a lender and
that holds indicia of ownership primarily to
protect a security interest in a vessel or fa-
cility shall be considered to participate in
management only if, while the borrower is
still in possession of the vessel or facility
encumbered by the security interest, the
person—
‘‘(I) 
exercises 
decisionmaking
control over the environmental compli-
ance related to the vessel or facility,
such that the person has undertaken
responsibility for the hazardous sub-
stance handling or disposal practices
related to the vessel or facility; or
‘‘(II) exercises control at a level
comparable to that of a manager of
the vessel or facility, such that the
person has assumed or manifested re-
sponsibility—
‘‘(aa) for the overall man-
agement of the vessel or facility
encompassing 
day-to-day 
deci-
sionmaking with respect to envi-
ronmental compliance; or
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‘‘(bb) over all or substan-
tially all of the operational func-
tions (as distinguished from fi-
nancial or administrative func-
tions) of the vessel or facility
other than the function of envi-
ronmental compliance;
‘‘(iii) the term ‘participate in manage-
ment’ does not include performing an act
or failing to act prior to the time at which
a security interest is created in a vessel or
facility; and
‘‘(iv) the term ‘participate in manage-
ment’ does not include—
‘‘(I) holding a security interest or
abandoning or releasing a security in-
terest;
‘‘(II) including in the terms of an
extension of credit, or in a contract or
security agreement relating to the ex-
tension, a covenant, warranty, or
other term or condition that relates to
environmental compliance;
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‘‘(III) monitoring or enforcing
the terms and conditions of the exten-
sion of credit or security interest;
‘‘(IV) monitoring or undertaking
1 or more inspections of the vessel or
facility;
‘‘(V) requiring a response action
or other lawful means of addressing
the release or threatened release of a
hazardous substance in connection
with the vessel or facility prior to,
during, or on the expiration of the
term of the extension of credit;
‘‘(VI) providing financial or other
advice or counseling in an effort to
mitigate, prevent, or cure default or
diminution in the value of the vessel
or facility;
‘‘(VII) restructuring, renegotiat-
ing, or otherwise agreeing to alter the
terms and conditions of the extension
of credit or security interest, exercis-
ing forbearance;
‘‘(VIII) exercising other remedies
that may be available under applicable
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law for the breach of a term or condi-
tion of the extension of credit or secu-
rity agreement; or
‘‘(IX) conducting a response ac-
tion under section 107(d) or under
the direction of an on-scene coordina-
tor appointed under the National Con-
tingency Plan,
if the actions do not rise to the level of
participating in management (within the
meaning of clauses (i) and (ii)).
‘‘(G) OTHER TERMS.—As used in this Act:
‘‘(i) EXTENSION
OF
CREDIT.—The
term ‘extension of credit’ includes a lease
finance transaction—
‘‘(I) in which the lessor does not
initially select the leased vessel or fa-
cility and does not during the lease
term control the daily operations or
maintenance of the vessel or facility;
or
‘‘(II) that conforms with regula-
tions issued by the appropriate Fed-
eral banking agency or the appro-
priate State bank supervisor (as those
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terms are defined in section 3 of the
Federal Deposit Insurance Act (12
U.S.C. 1813) or with regulations is-
sued by the National Credit Union
Administration Board, as appropriate.
‘‘(ii) FINANCIAL OR ADMINISTRATIVE
FUNCTION.—The term ‘financial or admin-
istrative function’ includes a function such
as that of a credit manager, accounts pay-
able officer, accounts receivable officer,
personnel manager, comptroller, or chief fi-
nancial officer, or a similar function.
‘‘(iii) FORECLOSURE; FORECLOSE.—
The terms ‘foreclosure’ and ‘foreclose’
mean, respectively, acquiring, and to ac-
quire, a vessel or facility through—
‘‘(I)(aa) purchase at sale under a
judgment or decree, power of sale, or
nonjudicial foreclosure sale;
‘‘(bb) a deed in lieu of fore-
closure, or similar conveyance from a
trustee; or
‘‘(cc) repossession,
if the vessel or facility was security for an
extension of credit previously contracted;
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‘‘(II) conveyance pursuant to an
extension of credit previously con-
tracted, including the termination of a
lease agreement; or
‘‘(III) any other formal or infor-
mal manner by which the person ac-
quires, for subsequent disposition,
title to or possession of a vessel or fa-
cility in order to protect the security
interest of the person.
‘‘(iv) LENDER.—The term ‘lender’
means—
‘‘(I) an insured depository insti-
tution (as defined in section 3 of the
Federal Deposit Insurance Act (12
U.S.C. 1813));
‘‘(II) an insured credit union (as
defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752));
‘‘(III) a bank or association char-
tered under the Farm Credit Act of
1971 (12 U.S.C. 2001 et seq.);
‘‘(IV) a leasing or trust company
that is an affiliate of an insured de-
pository institution;
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‘‘(V) any person (including a suc-
cessor or assignee of any such person)
that makes a bona fide extension of
credit to or takes or acquires a secu-
rity interest from a nonaffiliated per-
son;
‘‘(VI) the Federal National Mort-
gage Association, the Federal Home
Loan Mortgage Corporation, the Fed-
eral Agricultural Mortgage Corpora-
tion, or any other entity that in a
bona fide manner buys or sells loans
or interests in loans;
‘‘(VII) a person that insures or
guarantees against a default in the re-
payment of an extension of credit, or
acts as a surety with respect to an ex-
tension of credit, to a nonaffiliated
person; and
‘‘(VIII) a person that provides
title insurance and that acquires a
vessel or facility as a result of assign-
ment or conveyance in the course of
underwriting claims and claims settle-
ment.
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‘‘(v) OPERATIONAL
FUNCTION.—The
term ‘operational function’ includes a func-
tion such as that of a facility or plant
manager, operations manager, chief oper-
ating officer, or chief executive officer.
‘‘(vi) SECURITY INTEREST.—The term
‘security interest’ includes a right under a
mortgage, deed of trust, assignment, judg-
ment lien, pledge, security agreement, fac-
toring agreement, or lease and any other
right accruing to a person to secure the re-
payment of money, the performance of a
duty, or any other obligation by a non-
affiliated person.’’.
SEC. 2503. CONFORMING AMENDMENT.
Section 9003(h) of the Solid Waste Disposal Act (42
U.S.C. 6991b(h)) is amended by striking paragraph (9)
and inserting the following:
‘‘(9) DEFINITION OF OWNER OR OPERATOR.—
‘‘(A) IN GENERAL.—As used in this sub-
title, the terms ‘owner’ and ‘operator’ do not in-
clude a person that, without participating in the
management of an underground storage tank
and otherwise not engaged in petroleum produc-
tion, refining, or marketing, holds indicia of
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ownership primarily to protect the person’s se-
curity interest.
‘‘(B) SECURITY INTEREST HOLDERS.—The
provisions regarding holders of security inter-
ests in subparagraphs (E) through (G) of sec-
tion 101(20) and the provisions regarding fidu-
ciaries at section 107(n) of the Comprehensive
Environmental Response, Compensation, and
Liability Act of 1980 shall apply in determining
a person’s liability as an owner or operator of
an underground storage tank for the purposes
of this subtitle.
‘‘(C) EFFECT ON RULE.—Nothing in sub-
paragraph (B) shall be construed as modifying
or affecting the final rule issued by the Admin-
istrator on September 7, 1995 (60 Fed. Reg.
46,692), or as limiting the authority of the Ad-
ministrator to amend the final rule, in accord-
ance with applicable law. The final rule in effect
on the date of enactment of this subparagraph
shall prevail over any inconsistent provision re-
garding holders of security interests in subpara-
graphs (E) through (G) of section 101(20) or
any inconsistent provision regarding fiduciaries
in section 107(n) of the Comprehensive Envi-
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ronmental Response, Compensation, and Liabil-
ity Act of 1980. Any amendment to the final
rule shall be consistent with the provisions re-
garding holders of security interests in subpara-
graphs (E) through (G) of section 101(20) and
the provisions regarding fiduciaries in section
107(n) of the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980. This subparagraph does not preclude ju-
dicial review of any amendment of the final rule
made after the date of enactment of this sub-
paragraph.’’.
SEC. 2504. LENDER LIABILITY RULE.
(a) IN GENERAL.—Effective on the date of enact-
ment of this Act, the portion of the final rule issued by
the Administrator of the Environmental Protection Agen-
cy on April 29, 1992 (57 Fed. Reg. 18,344), prescribing
section 300.1105 of title 40, Code of Federal Regulations,
shall be deemed to have been validly issued under author-
ity of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.) and to have been effective according to the terms
of the final rule. No additional judicial proceedings shall
be necessary or may be held with respect to such portion
of the final rule. Any reference in that portion of the final
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rule to section 300.1100 of title 40, Code of Federal Regu-
lations, shall be deemed to be a reference to the amend-
ments made by this subtitle.
(b) JUDICIAL
REVIEW.—Notwithstanding section
113(a) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9613(a)), no court shall have jurisdiction to review the
portion of the final rule issued by the Administrator of
the Environmental Protection Agency on April 29, 1992
(57 Fed. Reg. 18,344) that prescribed section 300.1105
of title 40, Code of Federal Regulations.
(c) AMENDMENT.—No provision of this section shall
be construed as limiting the authority of the President or
a delegee of the President to amend the portion of the
final rule issued by the Administrator of the Environ-
mental Protection Agency on April 29, 1992 (57 Fed. Reg.
18,344), prescribing section 300.1105 of title 40, Code of
Federal Regulations, consistent with the amendments
made by this subtitle and other applicable law.
(d) JUDICIAL REVIEW.—No provision of this section
shall be construed as precluding judicial review of any
amendment of section 300.1105 of title 40, Code of Fed-
eral Regulations, made after the date of enactment of this
Act.
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SEC. 2505. EFFECTIVE DATE.
The amendments made by this subtitle shall be appli-
cable with respect to any claim that has not been finally
adjudicated as of the date of enactment of this Act.
Subtitle F—Miscellaneous
SEC. 2601. FEDERAL RESERVE BOARD STUDY.
(a) STUDY OF ELECTRONIC STORED VALUE PROD-
UCTS.—
(1) STUDY.—The Board shall conduct a study
of electronic stored value products which evaluates
whether provisions of the Electronic Fund Transfer
Act could be applied to such products without ad-
versely impacting the cost, development, and oper-
ation of such products.
(2) CONSIDERATIONS.—In conducting its study
under paragraph (1), the Board shall consider
whether alternatives to regulation under the Elec-
tronic Fund Transfer Act, such as allowing competi-
tive market forces to shape the development and op-
eration of electronic stored value products, could
more efficiently achieve the objectives embodied in
that Act.
(b) REPORT.—The Board shall submit a report of its
study under subsection (a) to the Congress not later than
6 months after the date of enactment of this Act.
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(c) ACTION TO FINALIZE.—The Board shall take no
action to finalize any amendments to regulations under
the Electronic Fund Transfer Act that would regulate
electronic stored value products until the later of—
(1) 3 months after the date on which the report
is submitted to the Congress under subsection (b);
or
(2) 9 months after the date of enactment of
this Act.
SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH
OF 
CONTRACTS 
EXECUTED 
BY 
THE 
RE-
CEIVER OR CONSERVATOR.
Section 11(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(d)) is amended by adding at the end the
following new paragraph:
‘‘(20) TREATMENT OF CLAIMS ARISING FROM
BREACH
OF
CONTRACTS
EXECUTED
BY
THE
RE-
CEIVER
OR
CONSERVATOR.—Notwithstanding any
other provision of this subsection, any final and
unappealable judgment for monetary damages en-
tered against a receiver or conservator for an in-
sured depository institution for the breach of an
agreement executed or approved by such receiver or
conservator after the date of its appointment shall
be paid as an administrative expense of the receiver
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or conservator. Nothing in this paragraph shall be
construed to limit the power of a receiver or con-
servator to exercise any rights under contract or law,
including to terminate, breach, cancel, or otherwise
discontinue such agreement.’’.
SEC. 2603. CRIMINAL SANCTIONS FOR FICTITIOUS FINAN-
CIAL INSTRUMENTS AND COUNTERFEITING.
(a) INCREASED PENALTIES FOR COUNTERFEITING
VIOLATIONS.—Sections 474 and 474A of title 18, United
States Code, are amended by striking ‘‘class C felony’’
each place that term appears and inserting ‘‘class B fel-
ony’’.
(b) CRIMINAL PENALTY FOR PRODUCTION, SALE,
TRANSPORTATION, POSSESSION OF FICTITIOUS FINAN-
CIAL INSTRUMENTS PURPORTING TO BE THOSE OF THE
STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE
ORGANIZATIONS.—
(1) IN GENERAL.—Chapter 25 of title 18, Unit-
ed States Code, is amended by inserting after sec-
tion 513, the following new section:
‘‘§ 514. Fictitious obligations
‘‘(a) Whoever, with the intent to defraud—
‘‘(1) draws, prints, processes, produces, pub-
lishes, or otherwise makes, or attempts or causes the
same, within the United States;
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‘‘(2) passes, utters, presents, offers, brokers, is-
sues, sells, or attempts or causes the same, or with
like intent possesses, within the United States; or
‘‘(3) utilizes interstate or foreign commerce, in-
cluding the use of the mails or wire, radio, or other
electronic communication, to transmit, transport,
ship, move, transfer, or attempts or causes the same,
to, from, or through the United States,
any false or fictitious instrument, document, or other item
appearing, representing, purporting, or contriving through
scheme or artifice, to be an actual security or other finan-
cial instrument issued under the authority of the United
States, a foreign government, a State or other political
subdivision of the United States, or an organization, shall
be guilty of a class B felony.
‘‘(b) For purposes of this section, any term used in
this section that is defined in section 513(c) has the same
meaning given such term in section 513(c).
‘‘(c) The United States Secret Service, in addition to
any other agency having such authority, shall have author-
ity to investigate offenses under this section.’’.
(2) TECHNICAL AMENDMENT.—The analysis for
chapter 25 of title 18, United States Code, is
amended by inserting after the item relating to sec-
tion 513 the following:
‘‘514. Fictitious obligations.’’.