An Act to amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in U.S. currency be reported to the Department of the Treasury, and for other purposes
PL 91-508 (H.R.15073), enacted 10/26/1970

1114 
PUBLIC LAW 91-507-OCT. 26, 1970 
[84 STAT. 
Effective date. 
SEC. 7. The table of sections at the beginning of chapter 37 of title 
38 is amended by inserting immediately after 
"1818. Veterans who serve after January 31,1955." 
the following: 
"1819. Loans to purchase mobile homes and mobile home lots." 
SEC. 8. Section 5 of this Act shall become effective sixty days follow-
ing the date of enactment. 
Approved October 23, 1970. 
Public Law 91-507 
October 26,1970 
JOINT RESOLUTION 
[s.j. Res. 223] 
To authorize and request the President to issue a proclamation designating 
January 1971 as "National Blood Donor Month". 
National Blood 
Donor Month. 
Proclamation. 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled^ That, in recognition of the 
vital contribution of the voluntary blood donor to medical care, the 
President is authorized and requested to issue a proclamation desig-
nating the month of January 1971 as "National Blood Donor Month", 
and calling upon the people of the United States and interested 
groups and organizations to observe such month with appropriate 
ceremonies and activities. 
Approved October 26, 1970. 
October 26, 1970 
[H. R. 15073] 
Public Law 91-508 
AN ACT 
To amend the Federal Deposit Insurance Act to require insured banks to main-
tain certain records, to require that certain transactions in United States 
currency be reported to the Department of the Treasury, and for other purposes. 
Federal Deposit 
Insurance Act, 
amendments. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ 
TITLE I—FINANCIAL EECORDKEEPING 
Chapter 
Sec. 
1. INSURED BANKS AND INSURED INSTITUTIONS 
101 
2. OTHER FINANCIAL INSTITUTIONS 
121 
Chapter 1.—INSURED BANKS AND INSURED 
INSTITUTIONS 
64 Stat. 893; 
81 Stat. 610. 
12 u s e 1830, 
1831. 
Sec. 
101. Retention of records by insured banks. 
102. Retention of records by insured institutions. 
§ 101. Retention of records by insured banks 
The Federal Deposit Insurance Act is amended (1) by redesignating 
sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the 
following new section immediately after section 20: 
"SEC. 21. (a)(1) The Congress finds that adequate records main-
tained by insured banks have a high degree of usefulness in criminal, 
tax, and regulatory investigations and proceedings. The Congress 
further finds that microfilm or other reproductions and other records 
made by banks of checks, as well as records kept by banks of the 
identity of persons maintaining or authorized to act with respect to 
accounts therein, have been of particular value in this respect. 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1115 
" (2) It IS the purpose of this section to require the maintenance of 
appropriate types of records by insured banks in the United States 
where such records liave a high degree of usefulness in criminal, tax, 
or regulatory investigations or proceedings. 
"(b) Where the Secretary of the Treasury (referred to in this sec-
tion as the 'Secretary') determines that the maintenance of appropriate 
types of records and other evidence by insured banks has a high degree 
of usefulness in criminal, tax, or regulatory investigations or pro-
ceedings, he shall prescribe regulations to carry out the purposes 
of this section. 
"(c) Each insured bank shall maintain such records and other evi-
dence, in such form as the Secretary shall require, of the identity of 
each person having an account in the United States with the bank 
and of each individual authorized to sign checks, make withdrawals, 
or otherwise act with respect to any such account. The Secretary may 
Exemptions. 
make such exemptions from any requirement otherwise imposed under 
this subsection as are consistent with the purposes of this section. 
"(d) Each insured bank shall make, to the extent that the regula-
tions of the Secretary so require— 
"(1) a microfilm or other reproduction of each check, draft, or 
similar instrument drawn on it and presented to it for payment; 
and 
"(2) a record of each check, draft, or similar instrument 
received by it for deposit or collection, together with an identifi-
cation of the party for whose account it is to be deposited or col-
lected, unless the bank has already made a record of the party's 
identity pursuant to subsection (c). 
" (e) Whenever any individual engages (whether as principal, agent, 
or bailee) in any transaction with an insured bank which is required 
to be reported or recorded under the Currency and I'oreign Transac-
tions Reporting Act, the bank shall require and retain such evidence 
^"^t, p. ins. 
of the identity of that individual as the Secretary may prescribe as 
appropriate under the circumstances. 
"(f) In addition to or in lieu of the records and evidence otherwise 
referred to in this section, each insured bank shall maintain such 
records and evidence as the Secretary may prescribe to carry out the 
purposes of this section. 
"(g) Any type of record or evidence required under this section 
shall be retained for such period as the Secretary may prescribe for 
the type in question. Any period so prescribed shall not exceed six 
3^ears unless the Secretary determines, having regard for the purposes 
of this section, that a longer period is necessary in the case of a partic-
ular type of record or evidence. 
"(h) The Secretary shall include in his annual report to the Con- 
Report to con-
gress information on his implementation of the authority conferred ^'•®^^* 
by this section and any similar authority with respect to recordkeeping 
or reporting requirements conferred by other provisions of law." 
1116 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
§ 102. Retention of records by insured institutions 
48 Stat. 1255; 
Title IV of the National Housing Act is amended by adding at the 
end thereof the following new section: 
"SEC. 411. The Secretary of the Treasury shall prescribe such regu-
lations as may be appropriate to carry out, with respect to insured 
institutions, the purposes set forth in section 21 of the Federal Deposit 
Insurance Act with respect to insured banks." 
81 Stat. 611. 
12 u s e 1724. 
Ante, p. 1114. 
Chapter 2.—0THER FINANCIAL INSTITUTIONS 
Sec. 
121. Congressional findings and purpose. 
122. Authority of Secretary with respect to reports on ownership and control. 
133. Authority of Secretary with respect to recordkeeping and procedures. 
124. Injunctions. 
125. Civil penalties. 
126. Criminal penalty. 
127. Additional criminal penalty in certain cases. 
128. Compliance. 
129. Administrative procedure. 
§ 121. Congressional findings and purpose 
(a) The Congress finds that certain records maintained by busi-
nesses engaged in the functions described in section 123(b) of this Act 
have a high degree of usefulness in criminal, tax, and regulatory in-
vestigations and proceedings. The Congress further finds that the 
power to require reports of changes in the ownership, control, and 
managements of types of financial institutions referred to in section 
122 of this Act may be necessary for the same purpose. 
(b) It is the purpose of this chapter to require the maintenance of 
appropriate types of records and tne making of appropriate reports 
by such businesses in the United States where such records or reports 
have a high degree of usefulness in criminal, tax, or regulatory in-
vestigations or proceedings. 
§ 122. Authority of Secretary with respect to reports on ownership 
and control 
Where the Secretary determines that the making of appropriate 
reports by uninsured banks or uninsured institutions of any type with 
respect to their ownership, control, and managements and any changes 
therein has a high degree of usefulness in criminal, tax, or regulatory 
investigations or proceedings, he may by regulation require such banks 
or institutions to make such reports as he determines in respect of 
such ownership, control, and managements and changes therein. 
§ 123. Authority of Secretary with respect to recordkeeping and 
procedures 
(a) Where the Secretary determines that the maintenance of 
appropriate records and procedures by an^ uninsured bank or unin-
sured institution, or any person engaging in the business of carrying 
on in the United States any of the functions referred to in subsection 
(b) of this section, has a high degree of usefulness in criminal, tax, 
or regulatory^ investigations or proceedings, he may by regulation 
require such bank, institution, or person— 
Ante, 
p. 1114. 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1117 
(1) to require, retain, or maintain, with respect to its func-
tions as an uninsured bank or uninsured institution or its func-
tions referred to in subsection (b), any records or evidence of any 
type which the Secretary is authorized under section 21 of the 
Federal Deposit Insurance Act to require insured banks to require, 
retain, or maintain; and 
(2) to maintain procedures to assure compliance with require-
ments imposed under this chapter. For the purposes of any civil 
or criminal penalty, a separate violation of any requirement 
under this paragraph occurs with respect to each day and each 
separate office, branch, or place of business in which the violation 
occurs or continues. 
(b) The authority of the Secretary under this section extends to any 
person engaging in the business of carrying on any of the following 
functions: 
(1) Issuing or redeeming checks, money orders, travelers' 
checks, or similar instruments, except as an incident to the con-
duct of its own nonfinancial business. 
(2) Transferring 
funds 
or 
credits 
domestically 
or 
internationally. 
(3) Operating a currency exchange or otherwise dealing in 
foreign currencies or credits. 
(4) Operating a credit card system. 
(5) Performing such similar, related, or substitute functions 
for any of the foregoing or for banking as may be specified by the 
Secretary in regulations. 
§ 124. Injunctions 
Whenever it appears to the Secretary that any person has engaged, 
is engaged, or is about to engage in any acts or practices constituting a 
violation of any regulation under this chapter, he may in his discretion 
bring an action, in the proper district court of the United States or the 
proper United States court of any territory or other place subject to 
the jurisdiction of the United States, to enjoin such acts or practices, 
and upon a proper showing a permanent or temporary injunction or 
restraining order shall be granted without bond. Upon application of 
the Secretary, any such court may also issue mandatory injunctions 
commanding any person to comply with any regulation of the Secre-
tary under this chapter. 
§ 125. Civil penalties 
(a) For each willful violation of any regulation under this chapter, 
the Secretary may assess upon any person to which the regulation 
applies, and, if such person is a partnership, corporation, or other 
entity, upon any partner, director, officer, or employee thereof who 
willfully participates in the violation, a civil penalty not exceeding 
$1,000. 
(b) In the event of the failure of any person to pay any penalty 
assersed under this section, a civil action for the recovery thereof may, 
in the discretion of the Secretary, be brought in the name of the 
LTnited States. 
iii.ffiD'3f^ H = 
1118 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
§126. Criminal penalty 
Whoever willfully violates any regulation under this chapter shall 
be fined not more than $1,000 or imprisoned not more than one 
year, or both. 
§ 127. Additional criminal penalty in certain cases 
Whoever willfully violates any regulation under this chapter, sec-
Ante, p. 1114. 
tiou 21 of the Federal Deposit Insurance Act, or section 411 of the 
Ante, p. 1116. 
National Housing Act, where the violation is committed in further-
ance of the commission of any violation of Federal law punishable by 
imprisonment for more than one year, shall be fined not more than 
$10,000 or imprisoned not more than five years, or both. 
§ 128. Compliance 
The Secretary shall have the responsibility to assure compliance 
with the requirements of this title and may delegate such responsibility 
to the appropriate bank supervisory agency, or other supervisory 
agency. 
§ 129. Administrative procedure 
The administrative procedure and judicial review provisions of 
80 Stat. 381. 
subchapter I I of chapter 5 and chapter 7 of title 5, United States Code, 
5 use 551,701. gjjg^jj apply to all proceedings under this chapter, section 21 of the 
Federal Deposit Insurance Act, and section 411 of the National 
Housing Act. 
TITLE II—EEPORTS OF CURRENCY AND 
FOREIGN TRANSACTIONS 
Chapter 
Sec. 
1. GENEKAL PROVISIONS 
201 
2. DOMESTIC CTJRBENCY TRANSACTIONS 
221 
3. REPORTS OF EXPORTS AND IMPORTS OP MONETARY INSTRUMENTS 
231 
4. FOREIGN TRANSACTIONS 
241 
Chapter 1.—GENERAL PROVISIONS 
Sec. 
201. Short title. 
202. Purpose. 
203. Definitions and rules of construction. 
204. Regulations. 
205. Compliance. 
206. Exemptions. 
207. Civil penalty. 
208. Injunctions. 
209. Criminal penalty. 
210. Additional criminal penalty in certain cases. 
211. Immunity of w^itnesses. 
212. Availability of information to other Federal agencies. 
213. Administrative procedure. 
Citation o
f 
§201. Short title 
This title may be cited as the Currency and Foreign Transactions 
Reporting Act". 
§202. Purpose 
It is tlie purpose of this title to require certain reports or records 
where such reports or records have a high degree of usefulness in 
criminal, tax, or regulatory investigations or proceedings. 
§203. Definitions and rules of construction 
(a) The definitions and rules of construction set forth in this section 
apply for the purposes of this title. 
(b) The term "Secretary" means the Secretary of the Treasury. 
(c) The term "person" includes natural persons, partnerships, 
trusts, estates, associations, corporations, and all entities cognizable 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1119 
as legal personalities. The term also includes any governmental depart-
ment or agency specified by the Secretary either for the purpose of 
this title generally or any particular requirement thereunder. 
(d) The term "United States", used in a geographical sense, in-
cludes the States and the District of Columbia, and to the extent the 
Secretary shall by regulation specify, either for the purposes of this 
title generally or any particular requirement thereunder, the Com-
monwealth of Puerto Rico, the possessions of the United States, 
United States military establishments, and United States diplomatic 
establishments. 
(e) The term "financial institution" means any person which does 
business in any one or more of the following capacities: 
(1) an insured bank as defined in section 3 of the Federal 
Deposit Insurance Act; 
J^ suu 873^. 
(2) a commercial bank or trust company; 
(3) a private banker; 
(4) an agency or a branch within the United States of any 
foreign bank; 
(5) an insured institution as defined in section 401 of the Na-
tional Housing Act; 
_ 
_ 
48 Stat. 1255. 
(6) a savings bank, building and loan association, credit union, 
^^ "^*^ ^^2'** 
industrial bank, or other thrift institution; 
(7) a broker or dealer registered with the Securities and Ex-
change Commission under the Securities Exchange Act of 1934; 
js stat. m . 
(8) a broker or dealer in securities or commodities; 
(9) an investment banker or investment company; 
(10) a currency exchange; 
(11) an issuer, redeemer or cashier of travelers'checks, checks, 
money orders, or similar instruments; 
(12) an operator of a credit card system; 
(13) an insurance company; 
(14) a dealer in precious metals, stones, or j ewels; 
(15) a pawnbroker; 
(16) a loan or finance company; 
(17) a travel agency; 
(18) a licensed transmitter of funds; 
(19) a telegraph company; 
(20) a Federal, State, or local government institution which 
performs any of the functions of any of the businesses listed 
above;or 
(21) any other ty^e of business or institution performing simi-
lar, related, or substitute functions specified by the Secretary by 
regulation for the purposes of the provision of this title to which 
the regulation relates. 
(f) The term "domestic", used with reference to institutions or 
agencies, limits the applicability of the provision wherein it appears 
to the performance by such institutions or agencies of functions within 
the United States. 
(g) The term "financial agency" means any person which acts in the 
capacity of a financial institution or in the capacity of a bailee, 
depository trustee, agent, or in any other similar capacity with respect 
to money, credit, securities, or gold or transactions therein, on behalf 
of any person other than a government, a monetary or financial author-
ity when acting as such, or an international financial institution of 
which the United States is a member. 
(h) The term "foreign", used with reference to institutions or 
agencies, limits the applicabilitjr of the provision wherein it appears 
to the performance by such institutions or agencies of functions out-
side the United States. 
1120 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
(i) References to this title or any provision thereof include regu-
lations issued under this title or the provision thereof in question. 
(j) All reports required under this title and all records of any such 
reports are specifically exempted from disclosure under section 552 of 
81 Stat. 54. 
title 5, United States Code. 
62 Stat. 749. 
(k) For the purposes of section 1001 of title 18, United States Code, 
the contents of reports rec^uired under any provision of this title are 
statements and representations in matters within the jurisdiction of an 
agency of the United States. 
(1) The term "monetary instruments" means coin and currency of 
the United States, and in addition, such foreign coin and currencies, 
and such types of travelers' checks, bearer negotiable instruments, 
bearer investment securities, bearer securities, and stock with title pass-
ing upon delivery, or the equivalent thereof, as the Secretary may by 
regulation specify for the purposes of the provision of this title to 
w^hich the regulation relates. 
§204. Regulations 
The Secretary shall prescribe such regulations as he may deem 
. 
appropriate to carry out the purposes of this title. 
? 1 
§205. Compliance 
(a) The Secretary shall have the responsibility to assure compli-
ance with the requirements of this title and may delegate such 
responsibility to the appropriate bank supervisory agency, or other 
supervisory agency. 
(b) The Secretary may by regulation require any class of domestic 
financial institutions to maintain such procedures as he may deem 
appropriate to assure compliance with the provisions of this title. For 
the purposes of both civil and criminal penalties for violations of this 
section, a separate violation shall be deemed to occur with respect to 
each day and each separate office, branch, or place of business in which 
the violation occurs or continues. 
§206. Exemptions 
The Secretary may make such exemptions from any requirement 
otherwise imposed under this title as he may deem appropriate. Any 
such exemption may be conditional or unconditional, by regulation, 
order, or licensing, or any combination thereof, and may relate to any 
particular transaction, to the type or amount of the transaction, to 
the party or parties or the classification of parties, or to any combi-
nation thereof. The Secretary may in his discretion, in any manner 
giving actual or constructive notice to the parties affected, revoke any 
exemption made under this section. Any such revocation shall remain 
in effect pending any judicial review. 
§207. Civil penalty 
(a) For each willful violation of this title, the Secretary may 
assess upon any domestic financial institution, and upon any partner, 
director, officer, or employee thereof who willfully participates in 
the violation, a civil penalty not exceeding $1,000. 
(b) In the event of the failure of any person to pay any penalty 
assessed under this title, a civil action for the recovery thereof may, 
in the discretion of the Secretary, be brought in the name of the 
United States. 
: 
§208. Injunctions 
Whenever it appears to the Secretary that any person has engaged, 
is engaged, or is about to engage in any acts or practices constituting 
a violation of the provisions of this title, or of any order thereunder, 
he may in his discretion bring an action, in the proper district court 
84 STAT. ] 
PUBLIC L
A
W 91-508-OCT. 26. 1970 
1121 
of the United States or the proper United States court of any territory 
or other place subject to the jurisdiction of the United States, to enjoin 
such acts or practices, and upon a proper showing a permanent or 
temporary injunction or restraining order shall be granted without 
bond. Upon application of the Secretary, any such court may also 
issue mandatory injunctions commanding any person to comply with 
the provisions of this title or any order of the Secretary made in 
purj/.uance thereof. 
§ 209. Criminal penalty 
Whoever willfully violates any provision of this title or any reg-
ulation under this title shall be fined not more than $1,000, or 
imprisoned not more than one year, or both. 
§210. Additional criminal penalty in certain cases 
Whoever willfully violates any provision of this title where the 
violation is— 
(1) committed in furtherance of the commission of any other 
violation of Federal law, or 
(2) committed as part of a pattern of illegal activity involving 
transactions exceeding $100,000 in any twelve-month period, 
shall be fined not more than $500,000 or imprisoned not more than five 
years, or both. 
§211. Immunity of witnesses 
Whenever a witness refuses on the basis of his privilege against 
self-incrimination, to testify or provide other information in a pro-
ceeding involving any violation of this title before or ancillary to— 
^.-^ ,-iin/. 
(1) acourtorgrand jury of the United States, 
(2) an agency of the United States, or 
(3) either House of Congress, a joint committee of the two 
Houses, or a committee or a subcommittee of either House, 
and the person presiding over the proceeding communicates to the 
witness an order requiring him to give testimony or provide other 
information, the witness may not refuse to comply with the order 
on the basis of his privilege against self-incrimination. No such testi-
mony or other information so compelled under the order or evidence 
or other information which is obteined by the exploitation of such 
testimony may be used against the witness in any criminal case, except 
a prosecution for perjury, giving a false statement, or otherwise fail-
ing to comply with the order. 
§212, Availability of information to other Federal agencies 
The Secretary shall, upon such conditions and pursuant to such 
procedures as he mav by regulation prescribe, make any information 
set forth in reports filed pursuant to this title available for a purpose 
consistent with the provisions of this title to any other department or 
agency of the Federal Government on the request of the head of such 
department or agency. 
§213. Administrative procedure 
Subject to section 203 (j), the administrative procedure and judicial 
>in'e, p. 1120. 
review provisions of subchapter II of chapter 5 and chapter 7 of title 
5, United States Code, shall apply to all proceedings under this title. 
80 Stat. 381. 
5 use 551, 701. 
Chapter 2.~D0MESTIC CURRENCY TRANSACTIONS 
Sec. 
221. Reports of currency transactions required. 
222. Persons required to file reports. 
223. Reporting procedure. 
1116. 
1122 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
§221. Reports of currency transactions required 
Transactions involving any domestic financial institution shall be 
reported to the Secretary at such time, in such manner, and in such 
detail as the Secretary may require if they involve the payment, 
receipt, or transfer of United States currency, or such other monetary 
instruments as the Secretary may specify, in such amounts, denomina-
tions, or both, or under such circumstances, as the Secretary shall by 
regulation prescribe. 
i-
§222. Persons required to file reports 
The report of any transaction required to be reported under this 
chapter shall be signed or otherwise made both by the domestic finan-
cial institution involved and by one or more of the other parties 
thereto or participants therein, as the Secretary may require. If any 
party to or participant in the transaction is not an individual acting-
only for himself, the report shall identify the person or persons on 
whose behalf the transaction is entered into, and shall be made by the 
individuals acting as agents or bailees with respect thereto. 
§223. Reporting procedure 
(a) The Secretary may in his discretion designate domestic finan-
cial institutions, individually or by class, as agents of the United 
States to receive reports required under this chapter, except that an 
institution which is not insured, chartered, examined, or registered 
as such by any agency of the LTnited States may not be so designated 
without its consent. The Secretary may suspend or revoke any such 
designation for any violation of this Act, or section 21 of the Federal 
Ante, pp.1114, j)eposit lusurauce Act, or section 411 of the National Housing Act. 
(b) Any person (other than an institution designated under sub-
section (a)) required to file a report under this chapter with respect 
to a transaction with a domestic financial institution shall file the 
report with that institution, except that (1) if the institution is not 
designated under subsection (a), the report shall be filed as the Secre-
tary shall prescribe, and (2) any such person may, at his election and 
in lieu of filing the report in the manner hereinabove prescribed, file 
the report with the Secretary. Domestic financial institutions desig-
nated under subsection (a) shall transmit reports filed with them, and 
shall file their own reports, as the Secretary shall prescribe. 
Chapter 3.—REPORTS OF EXPORTS AND IMPORTS 
OF MONETARY INSTRUMENTS 
Sec. 
231. Reports required. 
232. Forfeiture. 
233. Civil liability. 
234. Remission by the Secretary. 
235. Enforcement authority. 
§231. Reports required 
(a) Except as provided in subsection (c) of this section, whoever, 
whether as principal, agent, or bailee, or by an agent or bailee, 
knowingly— 
(1) transports or causes to be transported monetary instru-
ments— 
(A) from any place within the United States to or through 
any place outside the United States, or 
(B) to any place within the United States from or through 
any place outside the United States, or 
(2) receives monetary instruments at the termination of their 
transportation to the United States from or through any place 
outside the United States 
in an amount exceeding $5,000 on any one occasion shall file a report or 
reports in accordance with subsection (b) of this section. 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1123 
(b) Reports required under this section shall be filed at such times 
and places, and may contain such of the following information and any 
additional information, in such form and in such detail, as the Secre-
tary may require: 
(1) The legal capacity in which the person filing the report is 
acting with respect to the monetary instruments transported. 
(2) The origin, destination, and route of the transportation. 
(3) Where the monetary instruments are not legally and bene-
ficially owned by the person transporting the same, or are trans-
ported for any purpose other than the use in his own behalf of 
the person transporting the same, the identities of the person from 
whom the monetary instruments are received, or to whom they 
are to be delivered, or both. 
(4) The amounts and types of monetary instruments trans-
ported. 
(c) Subsection (a) does not apply to any common carrier of pas-
sengers in respect or monetary instruments in the possession of its 
passengers, nor to any common carrier of goods in respect of shipments 
of monetary instruments not declared to be such by the shipper. 
§232. Forfeiture 
(a) Any monetary instruments which are in the process of any trans-
portation with respect to which any report required to be filed under 
section 231(1) either has not been filed or contains material omissions 
or misstatements are subject to seizure and forfeiture to the United 
States. 
(b) For the purpose of this section, monetary instruments trans-
ported by mail, by any common carrier, or by any messenger or bailee, 
are in process of transportation from the time tney are delivered into 
the possession of the postal service, common carrier, messenger, or 
bailee until the time they are delivered into or retained in the possession 
of the addressee or intended recipient or any agent of the addressee or 
intended recipient for purposes other than further transportation 
within, or across any border of, the United States. 
§233. Civil liability 
The Secretary may assess a civil penalty upon any person who fails 
to file any report required under section 231, or who files such a report 
containing any material omission or misstatement. The amount or the 
penalty shall not exceed the amount of the monetary instruments with 
respect to whose transportation the report was required to be filed. The 
liabilities imposed by this chapter are in addition to any other liabili-
ties, civil or criminal, except that the liability under this section shall 
be reduced by any amount actually forfeited under section 232. 
§234. Remission by the Secretary 
The Secretary may in his discretion remit any forfeiture or penalty 
under this chapter in whole or in part upon such terms and conditions 
as he deems reasonable and just. 
§235. Enforcement authority 
(a) If the Secretary has reason to believe that monetary instru- j^ff.^Jl,'''^'^^'''"^"^' 
ments are in the process of transportation and with respect to which 
a report required under section 231 has not been filed or contains 
material omissions or misstatements, he may apply to any court of 
competent jurisdiction for a search warrant. Upon a showing of prob-
able cause, the court may issue a warrant authorizing the search of 
any or all of the following: 
(1) One or more designated persons. 
(2) One or more designated or described places or premises. 
(3) One or more designated or described letters, parcels, 
packages, or other physical objects. 
Issuance. 
1124 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
(4) One or more designated or described vehicles. 
Any application for a search warrant pursuant to this section shall be 
accompanied by allegations of fact supporting the application. 
(b) This section is not in derogation of the authority of the 
Secretary under any other law. 
Chapter 4.—FOREIGN TRANSACTIONS 
Sec. 
241. Records and reports required. 
1 
242. Classifications and requirements. 
, ? 
§241. Records and reports required 
(a) The Secretary of the Treasury, having due regard for the need 
to avoid impeding or controlling the export or import of currency or 
other monetary instruments and having due regard also for the need 
to avoid burdening unreasonably persons who legitimately engage 
in transactions with foreign financial agencies, shall by regulation 
require any resident or citizen of the United States, or person in the 
United States and doing business therein, who engages in any transac-
tion or maintains any relationship, directly or indirectly, on behalf of 
himself or another, with a foreign financial agency to maintain records 
or to file reports, or both, setting forth such of the following in-
formation, in such form and in such detail, as the Secretary may 
require: 
(1) The identities and addresses of the parties to the transac-
tion or relationship. 
(2) The legal capacities in which the parties to the transaction 
or relationship are acting, and the identities of the real parties 
in interest if one or more of the parties are not acting solely as 
principals. 
(3) A description of the transaction or relationship including 
the amounts of money, credit, or other property involved. 
t>isciosure. 
^j^^ ]^Q persou required to maintain records under this section shall 
be required to produce or otherwise disclose the contents of the records 
except in compliance with a subpena or summons duly authorized and 
issued or as may otherwise be required by law. 
§242. Classifications and requirements 
The Secretary may prescribe: 
(1) Any reasonable classification of persons subject to or 
exempt from any requirement imposed under section 241. 
(2) The foreign country or countries as to which any require-
ment imposed under section 241 applies or does not apply if, in 
the judgment of the Secretary, uniform applicability of any such 
requirement to all foreign countries is unnecessary or undesirable. 
(3) The magnitude of transactions subject to any requirement 
imposed under section 241. 
(4) Types of transactions subject to or exempt from^ any 
requirement imposed under section 241. 
,. v,„. 
(5) Such other matters as he may deem necessary to the ap-
plication of this chapter. 
TITLE III—MARGIN REQUIREMENTS 
§ 301. Amendment of section 7 of the Securities Exchange Act of 
1934 
(a) Section 7 of the Securities Exchange Act of 1934 (15 U.S.C. 
oo"*!*^!^';/-,^^' 
"^^S) is amended by adding at the end thereof the following new 
8 A S t 3 t » 4-9 2 • 
1 
J • 
subsection: 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1125 
"(f) (1) It is unlawful for any United States person, or any for-
eign person controlled by a United States person or acting on behalf 
of or in conjunction with such person, to obtain, receive, or enjoy 
the beneficial use of a loan or other extension of credit from any lender 
(without regard to whether the lender's office or place of business is 
in a State or the transaction occurred in whole or in part within a 
State) for the purpose of (A) purchasing or carrying United States 
securities, or (B) purchasing or carrying within the United States of 
any other securities, if, under this section or rules and regulations pre-
scribed thereunder, the loan or other credit transaction is prohibited 
or would be prohibited if it had been made or the transaction had 
otherwise occured in a lender's office or other place of business in a 
State. 
" (2) For the purposes of this subsection— 
"(A) The term 'United States person' includes a person which 
"united states 
is organized or exists under the laws of any State or, in the case 
of a natural person, a citizen or resident of the United States; 
a domestic estate; or a trust in which one or more of the fore-
going persons has a cumulative direct or indirect beneficial inter-
est in excess of 50 per centum of the value of the trust. 
"(B) The term 'United States security' means a security (other se"{i!'if *?, ^*^*^^ 
than an exempted security) issued by a person incorporated 
under the laws of any State, or whose principal place of busi-
ness is within a State. 
"(C) The term 'foreign person controlled by a United States 
"Foreign person 
person' includes any noncorporate entity in which United States unued"stlte^s ^ 
persons directly or indirectly have more than a 50 per centum person." 
beneficial interest, and any corporation in which one or more 
United States persons, directly or indirectly, own stock possessing 
more than 50 per centum of the total combined voting power of 
all classes of stock entitled to vote, or more than 50 per centum 
^^ ^ ^ 
of the total value of shares of all classes of stock. 
"(3) The Board of Governors of the Federal Reserve System may. 
Exemption. 
in its discretion and with due regard for the purposes of this section, 
by rule or regulation exempt any class of United States persons or 
.:•». i, -
foreign persons controlled by a United States person from the appli-
cation of this subsection." 
(b) The amendment made by subsection (a) of this section does not 
affect the continuing validity of any rule or regulation under section 
7 of the Securities Exchange Act of 1934 in effect prior to the effective 
date of the amendment. 
Ante, p. 1124. 
TITLE IV—EFFECTIVE DATES 
§401. Effective dates 
(a) Except as otherwise provided in this section, titles I, II, and 
III of this Act and the amendments made thereby take effect on the u^^g'^i'ij^* ^^^'*' 
first day of the seventh calendar month which begins after the date of 
' 
enactment. 
(b) The Secretary of the Treasury may by regulation provide that ^^^"'^"*^^"°7„J2 
any provision of title I or II or any amendment made thereby shall ^'' """ ''"" ""^ 
be effective on any date not earlier than the publication of the regu-
lation in the Federal Register and not later than the first day of the 
thirteenth calendar month which begins after the date of enactment. 
(c) The Board of Governors of the Federal Reserve System may by 
regulation provide that the amendment made by title III shall be 
effective on any date not earlier than the publication of the regulation 
in the Federal Register and not later than the first day of the thirteenth 
calendar month which begins after the date of enactment. 
Federal Register. 
Publication in 
Federal Register 
1126 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
15 u s e 1602. 
•'Adequate 
notice." 
Infra, 
"Credit card." 
''Accepted 
credit card." 
"Cardholder." 
"Card issuer.*' 
"Unauthorized 
use.»» 
15 u s e 1601 
note, 
15 u s e 1641. 
Prohibition. 
TITLE V—PEOVISIONS RELATING TO CREDIT CARDS 
SEC. 501. Section 103 of the Truth in Lending Act (82 Stat. 146) is 
amended by redesignating subsections (j), (k),and (1) as subsections 
(P)^ (q)i ^^^ (r), respectively, and by adding after subsection (i) the 
following: 
"(j) The term 'adequate notice', as used in section 133, means a 
printed notice to a cardholder which sets forth the pertinent facts 
clearly and conspicuously so that a person against whom it is to 
operate could reasonably be expected to have noticed it and understood 
its meaning. Such notice may be given to a cardholder by printing 
the notice on any credit card, or on each periodic statement of account, 
issued to the cardholder, or by any other means reasonably assuring 
the receipt thereof by the cardholder. 
"(k) The term 'credit card' means any card, plate, coupon book or 
other credit device existing for the purpose of obtaining money, 
property, labor, or services on credit. 
"(1) The term 'accepted credit card' means any credit card which 
the cardholder has requested and received or has signed or has used, 
or authorized another to use, for the purpose of obtaining money, 
property, labor, or services on credit. 
" (m) The term 'cardholder' means any person to whom a credit card 
is issued or any person who has agreed with the card issuer to pay 
obligations arising from the issuance of a credit card to another 
person. 
"(n) The term 'card issuer' means any person who issues a credit 
card, or the agent of such person with respect to such card. 
"(o) The term 'unauthorized use', as used in section 133, means a 
use of a credit card by a person other than the cardholder who does 
not have actual, implied, or apparent authority for such use and from 
which the cardholder receives no benefit." 
SEC. 502. (a) The Truth in Lending Act (82 Stat. 146) is amended 
by adding after section 131 the following sections: 
"§ 132. Issuance of credit cards 
"No credit card shall be issued except in response to a request or 
application therefor. This prohibition does not apply to the issuance 
of a credit card in renewal of, or in substitution for, an accepted 
credit card. 
"§133. Liability of holder of credit card 
"(a) A cardholder shall be liable for the unauthorized use of a 
credit card only if the card is an accepted credit card, the liability is 
not in excess of $50, the card issuer gives adequate notice to the card-
holder of the potential liability, the card issuer has provided the 
cardholder with a self-addressed, prestamped notification to be mailed 
by the cardholder in the event of the loss or theft of the credit card, 
and the unauthorized use occurs before the cardholder has notified 
the card issuer that an unauthorized use of the credit card has occurred 
or may occur as the result of loss, theft, or otherwise. Notwithstanding 
the foregoing, no cardholder shall be liable for the unauthorized use 
of any credit card which was issued on or after the effective date of 
this section, and, after the expiration of twelve months following such 
effective date, no cardholder shall be liable for the unauthorized use 
of any credit card regardless of the date of its issuance, unless (1) the 
conditions of liability specified in the preceding sentence are met, and 
(2) the card issuer has provided a method whereby the user of such 
card can be identified as the person authorized to use it. For the 
purposes of this section, a cardholder notifies a card issuer by taking 
such steps as may be reasonably required in the ordinary course of 
business to provide the card issuer with the pertinent information 
whether or not any particular officer, employee, or agent of the card 
issuer does in fact receive such information. 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1127 
"(b) In any action by a card issuer to enforce liability for the use of 
a credit card, the burden of proof is upon the card issuer to show that 
the use was authorized or, if the use was unauthorized, then the burden 
of proof is upon the card issuer to show that the conditions of liability 
for the unauthorized use of a credit card, as set forth in subsection (a), 
have been met. 
"(c) Nothing in this section imposes liability upon a cardholder for 
the unauthorized use of a credit card in excess of his liability for 
such use under other applicable law or under any agreement with 
the card issuer. 
"(d) Except as provided in this section, a cardholder incurs no 
liability from the unauthorized use of a credit card. 
"§134. Fraudulent use of credit card 
"Whoever, in a transaction affecting interstate or foreign commerce, 
uses any counterfeit, fictitious, altered, forged, lost, stolen, or fraudu-
lently obtained credit card to obtain goods or services, or both, having 
a retail value aggregating $5,000 or more, shall be fined not more than 
$10,000 or imprisoned not more than five years, or both." 
(b) The table of contents of chapter 2 of the Truth in Lending 
Act is amended by adding at the end thereof the following: 
"132. Issuance of credit cards. 
"133. Liability of holder of credit card, 
"134. Fraudulent use of credit card." 
SEC. 503. The amendments to the Truth in Lending Act made by 
this title become effective as follows: 
(1) Section 132 of such Act takes effect upon the date of enact-
ment of this title. 
(2) Section 133 of such Act takes effect upon the expiration 
of 90 days after such date of enactment. 
(3) Section 134 of such Act applies to offenses committed on or 
after such date of enactment. 
Penalty. 
82 Stat. 152. 
15 u s e 1631. 
Effective dates. 
TITLE VI—PROVISIONS RELATING TO CREDIT 
REPORTING AGENCIES 
AMENDMENT OF CONSUMER CREDIT PROTECTION ACT 
SEC. 601. The Consumer Credit Protection Act is amended by add-
ing at the end thereof the following new title: 
82 Stat. 146. 
15 use 1601 
note. 
"TITLE VI—CONSUMER CREDIT REPORTING 
"Sec. 
"601. Short title. 
"602, Findings and purpose, 
"603. Definitions and rules of construction. 
"604. Permissible purposes of reports. 
"605. Obsolete, information. 
"606. Disclosure of investigative consumer reports, 
"607, Compliance procedures. 
"608. Disclosures to governmental agencies. 
"609. Disclosure to consumers. 
"610. Conditions of disclosure to consumers. 
"611. Procedure in ease of disputed accuracy, 
"612. Charges for certain disclosures. 
"613. Public record information for employment purposes. 
"614. Restrictions on investigative consumer reports. 
"615. Requirements on users of consumer reports. 
"616. Civil liability for willful noncompliance. 
"617. Civil liability for negligent noncompliance. 
"618. Jurisdiction of courts; limitation of actions. 
"619. Obtaining information under false pretenses. 
"620. Unauthorized disclosures by oflScers or employees. 
"621. Administrative enforcement. 
"622. Relation to State laws. 
1128 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
Citation of 
title. 
"§ 601. Short title 
"This title may be cited as the Fair Credit Reporting Act. 
"§602. Findings and purpose 
" (a) The Congress makes the following findings: 
"(1) The banking system is dependent upon fair and accurate 
credit reporting. Inaccurate credit reports directly impair the ef-
ficiency of the banking system, and unfair credit reporting methods 
undermine the public confidence which is essential to the continued 
functioning of the banking system. 
"(2) An elaborate mechanism has been developed for investigating 
and evaluating the credit worthiness, credit standing, credit capacity, 
character, and general reputation of consumers. 
"(3) Consumer reporting agencies have assumed a vital role in 
assembling and evaluating consumer credit and other information on 
consumers. 
"(4) There is a need to insure that consumer reporting agencies 
exercise their grave responsibilities with fairness, impartiality, and 
a respect for the consumer's right to privacy. 
"(b) It is the purpose of this title to require that consumer report-
ing agencies adopt reasonable procedures for meeting the needs of 
commerce for consumer credit, personnel, insurance, and other in-
formation in a manner which is fair and equitable to the consumer, 
with regard to the confidentiality, accuracy, relevancy, and proper 
utilization of such information in accordance with the requirements 
of this title. 
"§603. Definitions and rules of construction 
"(a) Definitions and rules of construction set forth in this section 
are applicable for the purposes of this title. 
"(b) The term 'person' means any individual, partnership, corpo-
ration, trust, estate, cooperative, association, government or govern-
mental subdivision or agency, or other entity. 
"(c) The term 'consumer' means an individual. 
"(d) The term 'consumer report' means any written, oral, or other 
communication of any information by a consumer reporting agency 
bearing on a consumer's credit worthiness, credit standing, credit 
capacity, character, general reputation, personal characteristics, or 
mode of living which is used or expected to be used or collected in 
whole or in part for the purpose of serving as a factor in establishing 
the consumer's eligibility for (1) credit or insurance to be used pri-
marily for personal, family, or household purposes, or (2) employ-
ment purposes, or (3) other purposes authorized under section 604. 
The term does not include (A) any report containing information 
solely as to transactions or experiences between the consumer and 
the person making the report; (B) any authorization or approval of 
a specific extension of credit directly or indirectl^^ by the issuer of 
a credit card or similar device; or (C) any report in which a person 
who has been requested by a third party to make a specific extension 
of credit directly or indirectly to a consumer conveys his decision 
with respect to such request, if the third party advises the consumer 
of the name and address of the person to whom the request was made 
and such person makes the disclosures to the consumer required under 
Post, p. 1133. 
section 615. 
"(e) The term 'investigative consumer report' means a consumer 
report or portion thereof in which information on a consumer's 
character, general reputation, personal characteristics, or mode of liv-
ing is obta,ined through personal interviews with neighbors, friends, 
or associates of the consumer reported on or with others with whom 
he is acquainted or who may have knowledge concerning any such 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1129 
items of information. However, such information shall not include 
specific factual information on a consumer's credit record obtained 
directly from a creditor of the consumer or from a consumer re-
porting agency when such information was obtained directly from a 
creditor of the consumer or from the consumer. 
"(f) The term 'consumer reporting agency' means any person 
which, for monetary fees, dues, or on a cooperative nonprofit basis, 
regularly engages in whole or in part in the practice of assembling 
or evaluating consumer credit information or other information on 
consumers for the purpose of furnishing consumer reports to third 
parties, and which uses any means or facility of interstate commerce 
for the purpose of preparing or furnishing consumer reports. 
"(g) The term 'file, when used in connection with information on 
any consumer, means all of the information on that consumer recorded 
and retained by a consumer reporting agency regardless of how the 
information is stored. 
"(h) The term 'employment purposes' when used in connection with 
a consumer report means a report used for the purpose of evaluating 
a consumer for employment, promotion, reassignment or retention as 
an employee. 
"(i) The term 'medical information' means information or records 
obtained, with the consent of the individual to whom it relates, from 
licensed physicians or medical practitioners, hospitals, clinics, or other 
medical or medically related facilities. 
"§ 604. Permissible purposes of reports 
"A consumer reporting agency may furnish a consumer report under 
the following circumstances and no other: 
" (1) In response to the order of a court having jurisdiction to issue 
such an order. 
"(2) In accordance with the written instructions of the consumer 
to whom it relates. 
"(3) To a person which it has reason to believe— 
" (A) intends to use the information in connection with a credit 
transaction involving the consumer on whom the information is 
to be furnished and involving the extension of credit to, or 
review or collection of an account of, the consumer; or 
"(B) intends to use the information for employment purposes; 
or 
"(C) intends to use the information in connection with the 
underwriting of insurance involving the consumer; or 
"(D) intends to use the information in connection with a deter-
mination of the consumer's eligibility for a license or other benefit 
granted by a governmental instrumentality required by law to 
consider an applicant's financial responsibility or status; or 
"(E) otherwise has a legitimate business need for the informa-
tion in connection with a business transaction involving the 
consumer. 
"§605. Obsolete information 
"(a) Except as authorized under subsection (b), no consumer 
reporting agency may make any consumer report containing any of 
the following items of information: 
"(1) Bankruptcies which, from date of adjudication of the most 
recent bankruptcy, antedate the report by more than fourteen years. 
"(2) Suits and judgments which, from date of entr^r, antedate the 
report by more than seven years or until the governing statute of 
limitations has expired, whichever is the longer period. 
"(3) Paid tax liens which, from date of payment, antedate the 
report by more than seven years. 
1130 
PUBLIC L
A
W 91-508-OCT. 26, 1970 
[84 STAT. 
"(4) Accounts placed for collection or charged to profit and loss 
which antedate the report by more than seven years. 
"(5) Records of arrest, indictment, or conviction of crime which, 
from date of disposition, release, or parole, antedate the report by 
more than seven years. 
"(6) Any other adverse item of information which antedates the 
report by more than seven years. 
"(b) The provisions of subsection (a) are not applicable in the 
case of any consumer credit report to be used in connection with— 
"(1) a credit transaction involving, or which may reasonably 
be expected to involve, a principal amount of $50,000 or more; 
"(2) the underwriting of life insurance involving, or which 
may reasonably be expected to involve, a face amount of $50,000 
or more; or 
"(3) the employment of any individual at an annual salary 
which equals, or which may reasonably be expected to equal 
$20,000, or more. 
"§606. Disclosure of investigative consumer reports 
"(a) A person may not procure or cause to be prepared an investi-
gative consumer report on any consumer unless— 
" (1) it is clearly and accurately disclosed to the consumer that 
an investigative consumer report including information as to his 
character, general reputation, personal characteristics, and mode 
of living, whichever are applicable, may be made, and such dis-
closure (A) is made in a writing mailed, or otherwise delivered, 
to the consumer, not later than three days after the date on which 
the report was first requested, and (B) includes a statement in-
forming the consumer of his right to request the additional 
disclosures provided for under subsection (b) of this section; or 
" (2) the report is to be used for employment purposes for which 
the consumer has not specifically applied. 
"(b) Any person who procures or causes to be prepared an investi-
gative consumer report on any consumer shall, upon written request 
made by the consumer within a reasonable period of time after the 
receipt by him of the disclosure required by subsection (a) (1), shall 
make a complete and accurate disclosure of the nature and scope of 
the investigation requested. This disclosure shall be made in a writing 
mailed, or otherwise delivered, to the consumer not later than five 
days after the date on which the request for such disclosure was 
received from the consumer or such report was first requested, which-
ever is the later. 
"(c) No person may be held liable for any violation of subsection 
(a) or (b) of this section if he shows by a preponderance of the 
evidence that at the time of the violation he maintained reasonable 
procedures to assure compliance with subsection (a) or (b). 
"§607. Compliance procedures 
"(a) Every consumer rej)orting agency shall maintain reasonable 
procedures designed to avoid violations of section 605 and to limit 
the furnishing of consumer reports to the purposes listed under 
section 604. These procedures shall require that prospective users of the 
information identify themselves, certify the purposes for which the 
information is sougnt, and certify that the information will be used 
for no other purpose. Every consumer reporting agency shall make a 
reasonable effort to verify the identity of a new prospective user and 
the uses certified by such prospective user prior to furnishing such user 
a consumer report. No consumer reporting agency may furnish a con-
sumer report to any person if it has reasonable grounds for believing 
that the consumer report will not be used for a purpose listed in section 
604. 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1131 
"(b) Whenever a consumer reporting agency prepares a consumer 
report it shall follow reasonable procedures to assure maximum possi-
ble accuracy of the information concerning the individual about whom 
the report relates. 
"§ 608. Disclosures to governmental agencies 
"Notwithstanding the provisions of section 604, a consumer report-
ing agency may furnish identifying information respecting any 
consumer, limited to his name, address, former addresses, places of 
employment, or former places of employment, to a governmental 
agency. 
"§609. Disclosures to consumers 
"(a) Every consumer reporting agency shall, upon request and 
proper identification of any consumer, clearly and accurately disclose 
to the consumer: 
"(1) The nature and substance of all information (except medical 
information) in its files on the consumer at the time of the request. 
"(2) The sources of the information; except that the sources of 
information acquired solely for use in preparing an investigative con-
sumer report and actually used for no other purpose need not be dis-
closed : Provided^ That in the event an action is brovight under this 
title, such sources shall be available to the plaintiff under appropriate 
discovery procedures in the court in which the action is brought. 
" (3) The recipients of any consumer report on the consumer which 
it has furnished— 
"(A) for employment purposes within the two-year period 
preceding the request, and 
"(B) for any other purpose within the six-month period pre-
ceding the request. 
"(b) The requirements of subsection (a) respecting the disclosure 
of sources of information and the recipients of consumer reports do 
not apply to information received or consumer reports furnished prior 
to the effective date of this title except to the extent that the matter 
involved is contained in the files of the consumer reporting agency on 
that date. 
"§610. Conditions of disclosure to consumers 
"(a) A consumer repofting agency shall make the disclosures 
required under section 609 during normal business hours and on 
reasonable notice. 
" (b) The disclosures required under section 609 shall be made to the 
consumer— 
"(1) in person if he appears in person and furnishes proper 
identification; or 
"(2) by telephone if he has made a written request, with 
proper identification, for telej^hone disclosure and the toll charge, 
if any, for the telephone call is prepaid by or charged directly to 
the consumer. 
"(c) Any consumer reporting agency shall provide trained person-
nel to explain to the consumer any information furnished to him pur-
suant to section 609. 
"(d) The consumer shall be permitted to be accompanied by one 
other person of his choosing, who shall furnish reasonable identifica-
tion. A consumer reporting agency may require the consumer to fur-
nish a written statement granting permission to the consumer 
reporting agency to discuss the consumer's file in such person's 
presence. 
"(e) Except as provided in sections 616 and 617, no consumer may 
bring any action or proceeding in the nature of defamation, invasion of 
privacy, or negligence with respect to the reporting of information 
1132 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
against any consumer reporting agency, any user of information, or 
any person who furnishes information to a consumer reporting agency, 
based on information disclosed pursuant to section 609, 610, or 615, 
except as to false information furnished with malice or willful intent 
to injure such consumer. 
"§ 611. Procedure in case of disputed accuracy 
" (a) If the completeness or accuracy of any item of information con-
tained in his file is disputed by a consumer, and such dispute is directly 
conveyed to the consumer reporting agency by the consumer, the con-
sumer reporting agency shall within a reasonable period of time 
reinvestigate and record the current status of that information unless 
it has reasonable grounds to believe that the dispute by the consumer 
is frivolous or irrelevant. If after such reinvestigation such informa-
tion is found to be inaccurate or can no longer be verified, the consumer 
reporting agency shall promptly delete such information. The pres-
ence of contradictory information in the consumer's file does not in 
and of itself constitute reasonable grounds for believing the dispute is 
frivolous or irrelevant. 
"(b) If the reinvestigation does not resolve the dispute, the con-
sumer may file a brief statement setting forth the nature of the dispute. 
The consumer reporting agency may limit such statements to not more 
than one hundred words if it provides the consumer with assistance in 
writing a clear summary of the dispute. 
"(c) Whenever a statement of a dispute is filed, unless there is 
reasonable grounds to believe that it is frivolous or irrevelant, the 
consumer reporting agency shall, in any subsequent consumer report 
containing the information in question, clearly note that it is dis-
puted by the consumer and provide either the consumer's statement 
or a clear and accurate codification or summary thereof, 
"(d) Following any deletion of information which is found to be 
inaccurate or whose accuracy can no longer be verified or any notation 
as to disputed information, the consumer reporting agency shall, at 
the request of the consumer, furnish notification that the item has 
been deleted or the statement, codification or summary pursuant to 
subsection (b) or (c) to any person specifically designated by the 
consumer who has within two years prior thereto received a con-
sumer report for employment purposes, or within six months prior 
thereto received a consumer report for any other purpose, which 
contained the deleted or disputed information. The consumer re-
porting agency shall clearly and conspicuously disclose to the con-
sumer his rights to make such a request. Such disclosure shall be 
made at or prior to the time the information is deleted or the con-
sumer's statement regarding the disputed information is received. 
"§ 612. Charges for certain disclosures 
"A consumer reporting agency shall make all disclosures pursuant 
to section 609 and furnish all consumer reports pursuant to section 
611(d) without charge to the consumer if, within thirty days after 
receipt by such consumer of a notification pursuant to section 615 or 
notification from a debt collection agency affiliated with such con-
sumer reporting agency stating that the consumer's credit rating may 
be or has been adversely affected, the consumer makes a request under 
section 609 or 611(d). Otherwise, the consumer reporting agency 
may impose a reasonable charge on the consumer for making dis-
closure to such consumer pursuant to section 609, the charge for which 
shall be indicated to the consumer prior to making disclosure; and 
for furnishing notifications, statements, summaries, or codifications 
to person designated by the consumer pursuant to section 611(d), the 
charge for which shall be indicated to the consumer prior to furnish-
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1133 
ing such information and shall not exceed the charge that the con-
sumer reporting agency would impose on each designated recipient 
for a consumer report except that no charge may be made for notifying 
such persons of the deletion of information which is found to be 
inaccurate or which can no longer be verified. 
"§613. Public record information for employment purposes 
"A consumer reporting agency which furnishes a consumer report 
for employment purposes and which for that purpose compiles and 
reports items of information on consumers which are matters of 
public record and are likely to have an adverse effect upon a con-
sumer's ability to obtain employment shall— 
"(1) at the time such public record information is reported to 
the user of such consumer report, notify the consumer of the fact 
that public record information is being reported by the consumer 
reporting agency, together with the name and address of the per-
son to whom such information is being reported; or 
"(2) maintain strict procedures designed to insure that when-
ever public record information which is likely to have an adverse 
effect on a consumer's ability to obtain employment is reported 
it is complete and up to date. For purposes of this paragraph, 
items of public record relating to arrests, indictments, convic-
tions, suits, tax liens, and outstanding judgments shall be con-
sidered up to date if the current public record status of the item 
at the time of the report is reported. 
"§614. Restrictions on investigative consumer reports 
"Whenever a consumer reporting agency prepares an investigative 
consumer report, no adverse information in the consumer report (other 
than information which is a matter of public record) may be included 
in a subsequent consumer report unless such adverse information has 
been verified in the process of making such subsequent consumer 
report, or the adverse information was received within the three-
month period preceding the date the subsequent report is furnished. 
"§615. Requirements on users of consumer reports 
"(a) Whenever credit or insurance for personal, family, or house-
hold purposes, or employment involving a consumer is denied or the 
charge for such credit or insurance is increased either wholly or partly 
because of information contained in a consumer report from a con-
sumer reporting agency, the user of the consumer report shall so 
advise the consumer against whom such adverse action has been taken 
and supply the name and address of the consumer reporting agency 
making the report. 
"(b) Whenever credit for personal, family, or household purposes 
involving a consumer is denied or the charge for such credit is 
increased either wholly or partly because of information obtained 
from a person other than a consumer reporting agency bearing upon 
the consumer's credit worthiness, credit standing, credit capacity, 
character, general reputation, personal characteristics, or mode of 
living, the user of such information shall, within a reasonable period 
of time, upon the consumer's written request for the reasons for such 
adverse action received within sixty days after learning of such 
adverse action, disclose the nature of the information to the con-
sumer. The user of such information shall clearly and accurately 
disclose to the consumer his right to make such written request at the 
time such adverse action is communicated to the consumer. 
" (c) No person shall be held liable for any violation of this section 
if he shows by a preponderance of the evidence that at the time of the 
alleged violation he maintained reasonable procedures to assure com-
pliance with the provisions of subsections (a) and (b). 
1134 
PUBLIC LAW 91-508-OCT. 26, 1970 
[84 STAT. 
"§616. Civil liability for willful noncompliance 
"Any consumer reporting agency or user of information which 
willfully fails to comply with any requirement imposed under this 
title with respect to any consumer is liable to that consumer in an 
a-mount equal to the sum of— 
" (1) any actual damages sustained by the consumer as a rt suit 
of the failure; 
" (2) such amount of punitive damages as the court may allow; 
and 
" (3) in the case of any successful action to enforce any liability 
under this section, the costs of the action together with reasonable 
attorney's fees as determined by the court. 
"§617. Civil liability for negligent noncompliance 
"Any consumer reporting agency or user of information which is 
negligent in failing to comply with any requirement imposed under 
this title with respect to any consumer is liable to that consumer in an 
amount equal to the sum of— 
"(1) any actual damages sustained by the consumer as a result 
of the failure; 
" (2) in the case of any successful action to enforce any liability 
under this section, the costs of the action together with reasonable 
attorney's fees as determined by the court. 
"§ 618. Jurisdiction of courts; limitation of actions 
"An action to enforce any liability created under this title may be 
brought in any appropriate United States district court without 
regard to the amount in controversy, or in any other court of compe-
tent jurisdiction, within two years from the date on which the liability 
arises, except that where a defendant has materially and willfully 
misrepresented any information required under this title to be dis-
closed to an individual and the information so misrepresented is ma-
terial to the establishment of the defendant's liability to that 
individual under this title, the action may be brought at any time 
within 
two years 
after 
discovery by the individual 
of 
the 
misrepresentation. 
"§ 619. Obtaining information under false pretenses 
"Any person who knowingly and willfully obtains information on a 
consumer from a consumer reporting agency under false pretenses 
shall be fined not more than $5,000 or imprisoned not more than 
one year, or both. 
"§620. Unauthorized disclosures by officers or employees 
"Any officer or employ> of a consumer reporting agency who know-
ingly and willfully provides information concerning an individual 
from the agency's files to a person not authorized to receive that in-
formation shall be fined not more than $5,000 or imprisoned not more 
than one year, or both. 
"§ 621. Administrative enforcement 
"(a) Compliance with the requirements imposed under this title 
38 Stat. 717; 
shall be enforced under the Federal Trade Commission Act by the 
IS use 58*. 
Federal Trade Commission with respect to consumer reporting agen-
cies and all other persons subject thereto, except to the extent that 
enforcement of the requirements imposed under this title is specifically 
committed to some other government agency under subsection (b) 
hereof. For the purpose of the exercise by the Federal Trade Com-
mission of its functions and powers under the Federal Trade Commis-
sion Act, a violation of any requirement or prohibition imposed 
84 STAT. ] 
PUBLIC LAW 91-508-OCT. 26, 1970 
1135 
under this title shall constitute an unfair or deceptive act or prac-
tice in commerce in violation of section 5(a) 
of the Federal 
Trade Commission Act and shall be subject to enforcement by 
^f use 45^^' 
the Federal Trade Commission under section 5(b) thereof with 
52 stat. 1
1
*
2
. 
respect to any consumer reporting agency or person subject to 
enforcement by the Federal Trade Commission pursuant to this sub-
section, irrespective of whether that person is engaged in commerce 
or meets any other jurisdictional tests in the Federal Trade Commis-
sion Act. The Federal Trade Commission shall have such procedural, 
investigative, and enforcement powers, including the power to issue 
procedural rules in enforcing compliance with the requirements 
imposed under this title and to require the filing of reports, the pro-
duction of documents, and the appearance of witnesses as though the 
applicable terms and conditions of the Federal Trade Commission Act 
were part of this title. Any person violating any of the provisions of 
this title shall be subject to the penalties and entitled to the privileges 
and immunities provided in the Federal Trade Commission Act as 
though the applicable terms and provisions thereof were part of this 
title. 
"(b) Compliance with the requirements imposed under this title 
with respect to consumer reporting agencies and persons who use 
consumer reports from such agencies shall be enforced under— 
"(1) section 8 of the Federal Deposit Insurance Act, in the 
64 stat. 879; 
case of: 
^ 
?054?*''°''' 
" (A) national banks, by the Comptroller of the Currency; 
1
2 use isis. 
"(B) member banks of the Federal Reserve System (other 
than national banks), by the Federal Reserve Board; and 
"(C) banks insured by the Federal Deposit Insurance 
Corporation (other than members of the Federal Reserve 
System), by the Board of Directors of the Federal Deposit 
Insurance Corporation. 
"(2) section 5(d) of the Home Owners Loan Act of 1933, 
so stat. 1028. 
section 407 of the National Housing Act, and sections 6(i) and 17 
go stau Voa'e*. 
of the Federal Home Loan Bank Act, by the Federal Home Loan 
12 use* 1730.' 
Bank Board (acting directly or through the Federal Savings and 69*513^6*40^^' 
Loan Insurance Corporation), in the case of any institution sub- 
1
2 use 14*26, 
ject to any of those provisions; 
^"^37. 
"(3) the Federal Credit Union Act, by the Administrator of 
73 stat. 628; 
the National Credit Union Administration with respect to any ^"2^'u^^* 175u^'** 
Federal credit union; 
"(4) the Acts to regulate commerce, by the Interstate Com-
merce Commission with respect to any common carrier subject 
to t h o s e A c t s ; 
49 u s e 1 et sea. 
" (5) the Federal Aviation Act of 1958, by the Civil Aeronautics 
72 stat. 731. 
Board with respect to any air carrier or foreign air carrier subject note. 
to that Act; and 
"(6) the Packers and Stockyards Act, 1921 (except as pro- 
42 stat. 159. 
vided in section 406 of that Act), by the Secretary of Agriculture 
7 use isi. 
With respect to any activities subject to that Act. 
7 use'226,227. 
"(c) For the purpose of the exercise by any agency referred to in 
subsection (b) of its powers under any Act referred to in that sub-
section, a violation of any requirement imposed under this title shall 
be deemed to be a violation of a requirement imposed under that A ct. 
In addition to its powers under any provision of law specifically 
referred to in subsection (b), each of the agencies referred to in that 
subsection may exercise, for the purpose of enforcing compliance with 
any requirement imposed under this title any other authority conferred 
on it by law. 
1136 
PUBLIC LAW 91-509-OCT. 26, 1970 
[84 STAT. 
82 Stat. 167. 
"§622. Relation to State laws 
"This title does not annul, alter, affect, or exempt any person subject 
to the provisions of this title from complying with the laws of any 
State with respect to the collection, distribution, or use of any informa-
tion on consumers, except to the extent that those laws are inconsistent 
with any provision of this title, and then only to the extent of the 
inconsistency." 
E F r E C T I \ ^ DATE 
SEC. 602. Section 504 of the Consumer Credit Protection Act is 
amended by adding at the end thereof the following new subsection: 
"(d) Title VI takes effect upon the expiration of one hundred and 
eighty days folloAving the date of its enactment." 
Approved October 26, 1970. 
Public Law 91-509 
October 26, 1970 
[S.2695] 
Policemen and 
Firemen's Retire-
ment and Disabil-
ity Act Amend-
ments of 1970. 
Definitions. 
71 Stat. 391. 
Deductions. 
71 Stat. 393; 
72 Stat. 686. 
AN ACT 
To provide for the retirement of officers and members of the Metropolitan Police 
force, the Fire Department of the District of Columbia, the United States 
Park Police force, the Executive Protective Service, and of certain officers 
and members of the United States Secret Service, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asserribled^ That section 12 of 
the Act of September 1,1916 (39 Stat. 718), as amended (D.C. Code, 
sec. 4-521 et seq.) is amended as follows: 
(1) Paragraph (4) of subsection (a) of such section (D.C. Code, 
sec. 4-521) is amended to read as follows: 
"(4) The term 'widower' means the surviving husband of a mem-
ber who was married to such individual while she was a member.". 
(2) Paragraph (5) of subsection (a) of such section (D.C. Code, 
sec. 4-521) IS amended to read as follows: 
"(5) (A) The term 'child' means an unmarried child, including (i) 
an adopted child, and (ii) a stepchild or recognized natural child who 
lives with the member in a regular parent-child relationship, under 
the age of eighteen years, or such unmarried child regardless of age 
who, because of physical or mental disability incurred before the age 
of eighteen, is incapable of self-support. 
"(B) The term 'student child' means an unmarried child who is a 
student between the ages of eighteen and twenty-two years, inclusive, 
and who is regularly pursuing a full-time course of study or training 
in residence or in a high school, trade school, technical or vocational 
institute, junior college, college, university, or comparable recognized 
educational institution.". 
(3) Suhsection (d) of such section (D.C. Code, sec. 4-524) is 
amended as follows: 
(A) Paragraph (1) of such subsection is amended to read as follows: 
"(1) On and after the first day of the first pay period which begins 
on or after the effective date of the Policemen and Firemen's Retire-
ment and Disability Act Amendments of 1970 there shall be deducted 
and withheld from each member's basic salary an amount equal to 7 
per centum of such basic salary. Such deductions and withholdings 
shall be paid to the Collector of Taxes of the District of Columbia, and 
shall be deposited in the Treasury to the credit of the District of 
Columbia.". 
(B) Paragraph (3) of such subsection is amended by inserting